Memorandum submitted by Michelle Gildernew
MP and Gerry McHugh MLA, Sinn Fein
We would like to make a submission for your
inquiry into the proposed introduction of Aggregates Tax in the
We wish to highlight the following points:
1. The six counties were never taken into
account during the pre-levy analysis carried out by London Economics.
The six counties produce 22 million tonnes of aggregate per year.
This is 10 per cent of UK production and since 16 quarries were
assessed by London Economics, we should have had two quarries
assessed in the six counties. Furthermore, the haulage rates used
were English rates and therefore not relevant to the six counties.
2. No consideration was taken of the land
border with the 26 counties and the significant export market
that exists between the 26 and the six counties.
3. The tax as presently constituted will
encourage the import of processed products ie concrete, asphalt
and blocks into the six counties. This is because producers in
the six counties have to pay £1.60/tonne of aggregate in
their products whereas their counterparts in the 26 counties do
not and the import of processed products is not taxed. The result
of this will be job losses and relocation of companies in the
4. £1.60 subsidises the 26 counties
producers' haulage into the six counties of up to 25 miles, 50
per cent of the six counties.
25 October 2001