Concern voiced on the effect of Aggregates Tax on NI economy

The Quarry Products Association of Northern Ireland is urging Chancellor Gordon Brown to reconsider the application of an Aggregates Tax on the province’s economic potential.

The likely consequences to Northern Ireland of the proposed aggregates tax were recently illustrated to UK Customs officers following a two-day visit organised jointly by the Quarry Products Association (NI) and the British Aggregates Association.

The officials were shown how easily untaxed aggregates could be imported from the Republic as Roddy Acheson, of local company Douglas Acheson explained how cross border routes meant that importers from the Republic would be able to supply his company’s present customers with cheaper aggregate, following the imposition of such a tax burden.

The tax threatens numerous jobs and businesses in the North. Substantial investment in Tarmac’s quarry at Ederney is now on hold, threatening the 28 direct jobs there, and with Pat Lyons, NI business manager for Tarmac, who described the Aggregate Tax as possibly turning “an acceptable annual profit into a loss”.

Around 30 jobs are also under threat at Tracey Concrete in Enniskillen, together with cancellation of investment in new concrete mixers. Patsy Tracey of Tracey Concrete commented: “We will lose business in both the South and the North, as tax exempt products are imported from the South. Ultimately, we will have to relocate into the Republic.”

Ready Use Concrete is another company affected, and who are already negotiating for relocation of its existing operations in Strabane and Derry to the Republic, according to their Senior Manager, Ralph Clarke.

According to the British Aggregates Association, the Customs & Excise team acknowledged that the situation was alarming, and voiced genuine concern over the threat to Northern Ireland producers from imports from the South.

They admitted that at no time, in either the early stages of levy policy formation, or in the original economic analysis, was the situation in Northern Ireland considered. (CL)