Select Committee on Northern Ireland Affairs Minutes of Evidence


APPENDIX 1

Memorandum submitted by the Planning Service (Minerals Unit), Department of the Environment, Northern Ireland

THE EFFECTS OF THE INTRODUCTION OF THE AGGREGATES TAX LEVY ON MINERAL OPERATIONS IN NORTHERN IRELAND

  1.  The aggregates tax was introduced into the minerals industry in Northern Ireland in April 2002.

  2.  The nature of the quarrying industry in NI is different to that in GB. There are only a limited number of large multi-nationals eg Tarmac extracting minerals in NI compared to the rest of the UK. On the other hand there is a considerable number of small family owned quarries dispersed across NI who have been in the minerals business for many years. These quarries on the whole are small scale compared to those in GB with outputs between 200-300,000 tonnes per year but taken together highlight that NI relies more heavily on the quarrying industry than other regions in the UK. Ni quarries are primarily located in rural areas where the density of population is greater than would be found in the rest of GB.

  3.  Outlined in the table below is a summary of the number of unauthorised quarrying sites in NI which were brought to the attention of the Department either by members of the public or reported through the industry.
Financial Year No of Quarry Sites
01/04/98-31/03/9922
01/04/99-31/03/0011
01/04/00-31/03/0113
01/03/01-31/03/0220
01/03/02-31/03/0338
Breach of condition and unauthorised plant/machinery are not included in these statistics.



  From the above figures it can be seen that after April 2002 when the Aggregates Tax was introduced there was a significant increase in the number of unauthorised quarries which had opened up in NI—some 18 sites detected over the previous financial year 2001-02.

  The only explanation Planning Service can give for this increase is the introduction of the aggregates tax. Many, but not all of these unauthorised sites were located in close proximity to the international border with the Republic of Ireland.

  4.  Most of these unauthorised sites are being operated by one or two men who make use of small JCB type excavators, mobile processing plant and HGVs to transport the extracted mineral to the consumer. At no time do these unauthorised operators gain access to explosives to extract the minerals as these are strictly controlled in NI by the Police Service of Northern Ireland (PSNI). There is an established liaison between PSNI and Planning Service (Minerals Unit) if there is any doubt about an operator. The operators of the unauthorised sites would not have taken any regard to Health and Safety at quarries which is controlled by the Quarry Inspectorate of the Health and Safety Executive (NI). Dangerous machinery, unbunded fuel tanks, substandard vehicle access with no sight visibility splays onto the public road, no regard for the environmental effects of their operations on adjoining neighbours eg noise and dust, unsafe working quarry face heights and in many cases untaxed HGVs would not be uncommon among such operators.

  5.  In terms of increased workload for Minerals Unit of Planning Service, the Unit had an enforcement resource of two junior staff when the aggregates tax was introduced. This has since been reduced to one member of staff at June 2003. (From the start of July 2003 Special Studies Section has had an increase in enforcement staff to assist in the workload). This person has a full workload of between 150 and 175 cases to process including breaches of planning condition and unauthorised operation of quarry plant and machinery. Enforcement is a time-consuming process with cases often running for one and two years before there is an outcome. In all cases where unauthorised extraction is commenced the Department has to assess quickly whether there is a priority need in policy terms to take immediate enforcement action by serving Enforcement/Stop Notices. This implies that all sites must be inspected within a given time period of coming to the attention of the Department. As minerals planning in NI is a headquarters function and is centrally based in Belfast it means staff have long distances to travel to carry out investigative work to produce a site report. Enforcement section is therefore fully stretched to cope with an ever-increasing workload.

  6.  In my opinion the number of unauthorised extraction sites will continue to increase in the foreseeable future as powers of enforcement are weak and resources inadequate to deal with the situation. There is an increasing number of farmers trying to diversify their income by other means due to the general slump in income from agriculture. In so doing they are turning to extracting minerals from their farm holdings hoping to sell such rock to local builders. The builders are only too pleased to be supplied with building material at a lower cost than it could have obtained from the legitimate quarry operator who has had to comply with all the rules and regulations but has had to bear the increased aggregates tax cost.

7.  CONCLUSION:

  As a result of introducing the aggregates tax into NI Planning Service would state the following conclusions can be reached from feed back from operators and practice:

    (1)  Increased workload for enforcement section of Planning Service(Minerals Unit).

    (2)  Unauthorised sites are being operated without regard to regulations which are imposed and complied with by authorised operators.

    (3)  Diversification of agriculture has led to an increase in the number of unauthorised extraction sites.

    (4)  Limited enforcement resources causes delay in pursuing unauthorised extraction.

    (5)  Authorised operators feel they are being penalised due to slow, ineffective means of controlling the unauthorised operations—not a level playing field.

26 August 2003





 
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