APPENDIX 4
Memorandum submitted by the Royal Institution
of Chartered Surveyors Northern Ireland
1. We welcome this opportunity to comment
on the impact of the levy and its long-term effects on industry
sectors in Northern Ireland. We highlight key differences between
how these factors vary from the position in Great Britain. We
would be pleased to offer further evidence if requested.
2. The RICS Northern Ireland is the national
association of the global RICS. RICS NI has 2,000 members who
practise across 16 specialist faculties, including Construction,
Minerals, Waste and Environmental protection. RICS' members operate
in all aspects of land, construction and property and in the public,
private and voluntary sectors.
3. The difficulties faced by the construction
and building supplies industry in Northern Ireland during the
phase-in introduction of the aggregates levy, and the long-term
effects on the industry and economy as a whole, may be summarised
as follows:
— Northern Ireland (NI)—Unique
Market Conditions:
(i)
NI quarrying industry within the UK market
is unique in terms of location, scale and economy.
(iii)
Most NI quarries are small family businesses
producing less than 300,000 tonnes per annum (tpa)
— By comparison in Great Britain (GB):
(iii)
GB ex pit prices for aggregates are usually
greater than those in NI, though they do vary considerably by
location
4. The aggregates levy is a GB tax for GB
quarries. It has been clear from its conception that no thought
was given to its effect on the NI quarrying industry and the NI
economy. Arguably, the aggregates levy has been inappropriately
researched in relation to its application to NI.
Unauthorised Development
5. The Department of Environment Northern
Ireland Planning Service has noted a significant increase in the
number of unauthorised aggregates extraction operations in NI.
The introduction of the aggregates levy and increased attempts
by rogue operators to avoid the tax, has compounded what was already
a major problem, both in terms of environmental damage and health
and safety risks to illegal operators, their employees and the
general public.
Environmental Effects of the Levy
6. The purpose of the levy is to reduce
environmental damage as a result of quarrying. Introduction of
the tax in Northern Ireland has not succeeded in encouraging a
shift away from the use of virgin aggregates towards the use of
recycled aggregates and other alternative materials. Alternative
materials are just not available in the required quantities in
NI. Primary production of aggregates has increased since the levy
was introduced. The tax therefore has not been successful in reducing
the industry associated environmental problems of noise, dust
and air pollution.
Northern Ireland Border with Republic of Ireland
7. Since the introduction of the aggregates
levy, NI quarries operating along the border counties have experienced
a decline in demand resulting in redundancies within the industry.
There has been an increase in cross border heavy goods vehicle
activity, putting pressure on an already inadequate rural roads
network, compromising road traffic safety and damaging the environment.
23 May 2003
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