APPENDIX 7
Memorandum from the National Joint Utilities
Group (NJUG)
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, BT, Cable and Wireless Communications
and Telewest.
Aggregates Tax
1. Our submission is restricted to comments
on possible proposals to introduce a tax on the use of aggregates.
2. NJUG's view, which has been submitted
previously to HM Customs and Excise, is that it is not appropriate
for mined aggregate used in street works reinstatement to be subject
to an aggregate tax. Our reasons are that, in the majority of
cases, the Statutory Code of Practice "Specification for
the Reinstatement of Opening 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, which was implemented in 1993.
3. The imposition of an aggregates tax would
not reduce the demand for primary aggregates for reinstatements,
as Utilities are driven to use new aggregate in order to comply
with legislation. A tax on these aggregates would result in increased
costs for customers and would not have the effect of reducing
demand on aggregates. Aggregates used for this purpose should
be made exempt until the Code of Practice is revised to encourage
the use of recycled aggregates as and when they become in common
usage.
Cost Compliance Assessment
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 those Utilities.
If the tax were set at, say £2 per tonne, the annual cost
for a Utility could be in the region of £2 million a year.
September 1999
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