APPENDIX 14
Memorandum from Christian Salvesen
At the suggestion of Helen Brinton, MP for Peterborough,
we are writing to you advise you of the resulting effect of the
proposed Climate Change Levy on our Company.
This Levy will place us at a disadvantage with
EU competitors as it is simply a tax being raised against UK businesses
and increases our costs in the single market contrary to the level
playing field principle.
As an industry, through our trade body, the
Cold Storage and Distribution Federation, we have been in the
vanguard of co-operation and collaboration to achieve environmental
improvements in the areas of both climate change and ozone depletion.
By way of example, we were one of the first industries to support
the eradication of CFC's and the eventual demise of HCFC's. We
are collaborating closely with Government departments in ongoing
projects to improve transport efficiency and effectiveness as
well as focused work to improve energy efficiency in cold stores
and provide Key Performance Indicators to aid companies in measuring
performance.
We have followed a responsible environmental
policy over many years and it is disappointing that this government
had decided to impose a punitive tax on business energy. The proposed
cost of this Levy will severely reduce our profitability and employment
prospects for the future.
The proposal for a small decrease in employers
National Insurance Contribution does little to offset the tax
burden, as we are a major user of energy with a relatively small
workforce. The net result of this proposal would significantly
effect our ability to reinvest in the business to create more
jobs. To finance this tax, savings would necessarily be required,
which could affect jobs.
This tax will indubitably increase our costs
while failing to protect the environment or encourage business
to grow.
We look forward to receiving your support and
comments.
November 1999
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