BAA loses High Court action
"THE British Aggregates Association has failed in its High Court bid to have the aggregates tax declared illegal. Delivering his verdict on 19 April, Justice Moses found against the BAA and said he was not prepared to question parliamentary decisions on social and economic policy in court. However, in making his judgement, he criticized some of the Government’s actions and gave the BAA leave to appeal against his ruling."
"In relation to the BAA’s arguments that the discriminatory treatment of different aggregates and minerals under the tax legislation violated EU state aid law and the Human Rights Act, Justice Moses said the Government could not avoid the legal challenge simply by arguing that it had made a policy choice to tax some materials and not others, and he accepted that the tax would have effects that could distort competition and affect trade in the EU."
"The judge also had some sympathy for the BAA’s criticisms of the London Economics methodology upon which the tax was based, and he also accepted that the levy might mean that waste piles at china clay and slate quarries will simply be replaced by waste piles at other quarry sites as their secondary aggregates become unmarketable."
"Ultimately, however, he considered that these were matters on which Parliament had made social and economic policy decisions which he was not prepared to question."
"Speaking after the verdict, BAA director Robert Durward expressed great disappointment with the outcome and said it was not helpful to the case that the proceedings did not receive more positive support from a wider range of quarry and quarry products businesses. ‘Government lawyers were able to use this to suggest that the majority of companies within the industry are not uneasy about the tax,’ he said."
"The BAA has until 3 May to decide whether to appeal against the verdict. Any such action would have to be made to the Court of appeal in London, although the matter could then be referred to the European Court of Justice in Luxembourg for a final decision."
