APPENDIX 9
Memorandum from the National Joint Utilities
Group
INTRODUCTION
The National Joint Utilities Group's aims are
to promote the interests of, and to seek to influence the issues
facing the main Utilities in street works and other relevant matters.
NJUG's membership consists of the Electricity Association, the
Water Industry, Transco, Cable and Wireless Communications and
Telewest.
Aggregates Tax
1. Our submission is restricted to comments
on the introduction of a tax on the use of aggregates.
2. NJUG's view, which was previously submitted
to the Environmental Audit Committee is that it is not appropriate
for mined aggregate used in street works reinstatement to be subject
to an aggregate tax. Our reasons remain that 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 undertaker's excavations
following street works carried out under the New Roads and Street
Works Act 1991.
3. The imposition of an aggregates tax will
not reduce the demand for primary aggregates for reinstatements
since Utilities are driven to use new aggregate in order to comply
with legislation. The introduction of a tax on these aggregates
will result in increased costs for customers and will not have
the effect of reducing demand for aggregates.
4. NJUG requests that aggregates used for
reinstatement are exempted from the new tax until the Code of
Practice is revised to both allow and encourage the use of recycled
aggregates and they become common in usage and availability.
Cost Compliance Assessment
It was previously stated that two of NJUG's
six member Utilities indicated that the costs of meeting any aggregates
tax would be significant. The quantity of primary aggregate used
is estimated to be in the order of one million tonnes per annum
for each of these Utilities. The tax is now stated as being introduced
at £1.60 per tonne, which equates to an annual additional
cost per Utility in the region of £1.6 million a year.
March 2000
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