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Digging up a
Page 26
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hornets' nest
A new study recommends the aggregate tax on Northern Irish quarry operators be reduced to help them compete with the Republic.
But UK operators want a reduction too. Dominic Perry reports.
Almost two years ago, the government introduced a tax of £1.60 per tonne on aggregate extracted in the UK. The tax also applied to imported virgin aggregates. although not on processed imported aggregates such as ready mixed concrete. Almost from day one, the aggregates industry complained about the tax,saying that it was merely giving work to foreign companies and putting UK businesses out of work.
Nowhere was this more keenly felt than Northern Ireland. where, thanks to the land border with the Irish Republic.strongcompetifion was instantly felt. Recently the Northern Ireland Affairs Select Committee conducted its second study into the effect the levy is having on quarry operators and, by extension, tipper owners and operators in the province. Its findings were published last week, with the recommendation that the levy in Northern Ireland be reduced to 32p/tonne, providing environm ental considerations are met.
Effect of the tax To see how great the effect of the tax has been, you have only to look at some of the evidence given to the inquiry. For instance, quarry giant Tarmac runs three quarries in the province producing a variety of products and directly employing 65 people. with around 45 subcontracted hauliers. It told the committee that its sales volumes at all three quarries have dropped. It went on to describe a situation where it could not compete on price with an Irish quarry firm: 'It is clear that when we are seven miles away from the [customer's] site and cannot be competitive with an Rol [Republic of Ireland] supplier more than 30 miles away, that a major problem exists."
It reported that sales volumes at its three quarries were down by an average of 20%. It also said there was an issue with unlicensed quarries and levy avoidance by others. Perhaps ironically for hauliers, the last two problems may have been a benefit, with overall transport movements and the distance the product is carried both increased on the back of these. It also says Northern Ireland's roads are suffering because of the increase in cross-border traffic.
Quarry owner J Robinson & Sons also hit out at the tax, saying it was the greatest threat to the company's existence since it was formed in 1968. It adds: "We implore the government to review its policy on the aggregates tax as we see its continuation being certain to destroy our business and decimate the quarry industry in Northern Ireland." •