Memorandum submitted by the National Joint
NJUG's view is that it is not appropriate for
mined aggregate used in street works reinstatement to be subject
to an aggregate tax.
In the majority of cases, the statutory Code
of Practice "Specification for the Reinstatement of Openings
in Highways" requires the use of new aggregate to replace
spoil removed from undertakers' excavations following street works
carried out under the New Roads and Street Works Act 1991, which
was implemented in 1993.
The imposition of an aggregate tax would not
reduce the demand for primary aggregates for reinstatements. We
therefore seek exemption from the tax for aggregates used for
this purpose until the Code of Practice is revised to encourage
the use of recycled aggregate and when they become common in usage.
Additionally, undertakers have already been
unreasonably burdened with the effects of the Landfill Tax and
this latest proposal would be a further imposition for them to
have to bear so soon after implementation of recent major legislation
in street works activities.
If the tax were to be imposed, it should apply
only to those quarried aggregates that are used primarily as aggregate
ie trimmings from dimension stone and "scalpings" should
not be subject to tax because they arise as a by-product from
another primary product. Therefore, if they are disposed of by
being crushed for use in, for instance, street works, no tax should
be applied. This philosophy means that it would only be necessary
to identify primary aggregate for taxable purposes, all others
would not be subject to tax.
NJUG believes that all aggregate should be untaxed
for street works use but, assuming that some form of aggregate
tax would be imposed, it should only apply to primary aggregate;
all other forms should remain exempt.
NJGU argues that all waste material from the
production of dimension stone should not be subject to an aggregate
tax. Its use in, say, street works reinstatement should be regarded
as a fortuitous use of an otherwise waste material.
30 October 2001