Unlicensed operations rife since Levy started

The Aggregates Levy has resulted in new waste heaps, encouraged unlicensed operations and created cash-flow problems for small and medium-sized firms (SMEs), according to a British Aggregates Association (BAA) survey.The survey on the impact of the Levy in the first year of operation (April 2002 to March 2003) compared with the previous 12 months, revealed that 35% of members have evidence of unlicensed operators across a large section of the UK, covering Northern Ireland, Scotland, the South West and the East Midlands.Cashflow also remains a significant problem. BAA secretary Peter Huxtable said: "Sixty per cent of members reported that they had received less from customers than paid to Customs & Excise, with a consequent significant increase in their working capital."The survey also revealed evidence of the growth in new waste heaps of low-value secondary products as a direct result of the Levy."While 10 to 15 million tonnes a year of this material was already building up in quarries ahead of the Levy - this has now doubled to 20 to 30 million tonnes a year - with consequent environmental impacts," said Huxtable."Sixty-five per cent of members reported a problem with unsold material. They had a market for 65% of secondary products in 2001/02 but only 33% of the material found an outlet in 2002/03."Members were generally satisfied with Customs & Excise officials, with only 20% finding them unhelpful.