APPENDIX 10
Memorandum from the Environmental Industries
Commission (EIC)
The Environmental Industries Commission, with
over 200 Member companies, represents the Environmental Technology
and Services Industry. We welcome the opportunity to provide evidence
on behalf of our Members to the Committee's enquiry into the government's
progress on "greening" the tax system in the Budget
2000.
CLIMATE CHANGE
LEVY AND
THE ENERGY
TECHNOLOGY LIST
EIC welcomes the confirmation of the introduction
of the Climate Change Levy in the Budget and in particular the
announcement that, from 2001, a system of 100 per cent first year
capital allowances for companies making energy saving investments
in specific technologies on an "Energy Technology List"
will be introduced to recycle £100 million of revenues from
the Levy.
The incentive for investment in energy saving
technologies is a major step forward for EIC's propoals for fiscal
incentives to support companies purchasing environmental technologies
(which the EAC backed in its 1998 Pre-Budget Report by recommending
that "the Government consults on a scheme to promote investment
in specified environmental technologies").
The new Energy Technology List is based on a
Dutch Government scheme which had been running successfully for
some eight years and has been extended every year. However, the
key difference is that the Dutch scheme is applicable to all environmental
technologies which contribute to meeting the Government's key
environmental objectives, rather than being restricted to energy
saving investments.
Fiscal incentives for environmental technologies
would help overcome the barriers to investment in environmental
technologies and would thereby boost UK competitiveness, create
jobs and help protect public health.
Given the importance of encouragement for technologies
which provide solutions to key environmental challenges we would
recommend the Committee ask the Government what plans they have
to widen the Energy Technology List to promote investment in other
suitable environmental technologies.
STAMP DUTY
AND BROWNFIELD
SITES
EIC welcomes the announcement of a consultation
on providing relief on Stamp duty to encourage development of
brownfield sites. This is an important step forward which could
be a major catalyst to promote sustainable reuse of brownfield
(previously used) sites and to relieve the pressure on greenfield
sites. It will also help with the Government's challenging target
of 60 per cent of new homes to be built on brownfield sites. However
given that it took five years for the Government to implement
the new contaminated land regime, we would recommend that progress
is made to introduce this new fiscal tool as soon as possible.
March 2000
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