Government aggregates tax evidence 'bizarre'

THE latest report of the Government's environmental watchdog - the House of Commons Audit Committee - has provided further evidence of the Government's inability to justify the proposed aggregates tax, says the Quarry Products Association.

The Committee's report examining environmental issues associated with the 2000 Budget considered detailed evidence from the QPA and the Treasury in relation to the aggregates tax. It makes two central criticisms of the Government's attitude and behaviour on the issue.

First, the Treasury's refusal to consider the QPA's 'green' purchasing proposals as part of an alternative approach to taxation was described by the Committee as 'bizarre'.

Secondly, the Committee found that the quarrying industry was being treated far more harshly in relation to environmental taxation than other sectors. The Committee reports: 'Events have also made it abundantly clear that there has been a marked inconsistency in the approach adopted by the Government towards industry... These actions... support the view that the Government is adopting a far more conciliatory approach to the agricultural lobby and the agrochemical industry than, for example, to the quarrying industry.'

Commenting on the report, QPA director general Simon van der Byl said: 'Once again there is damning evidence from this Committee on the Government's inability to justify its aggregates tax proposals, and damning evidence on the Government's behaviour during this process.

'The use of words such as 'bizarre' by the Committee is an astonishing indictment of the Government's attempts to justify its rejection of the QPA's proposed tax alternative.

'The Committee's findings that the quarrying industry has been treated more harshly than other sectors reflects the view of government that the construction industry as a whole is regarded as an easy target for gesture politics from the DETR and the Treasury.'