Irish relief from Aggies tax extended

Economic secretary to the Treasury John Healey has confirmed that the scope and duration of the Aggregates Levy relief scheme in Northern Ireland has been extended with immediate effect and back dated to 1 April 2004. 

This follows notification from the European Commission that the government's proposals for such an extended scheme have received state aid clearance with effect from today.  Quarry operators in Northern Ireland will be able to claim the extended relief straightaway, providing they comply with environmental law and agree to enter into agreements that commit them to making significant improvements to the way their operations are run. 

Gordon Best, regional development manager of the Quarry Products Association Northern Ireland, said: "This is tremendous news. The quarrying industry here has been instrumental in persuading the government to develop this new approach. Today's introduction shows that the government has been prepared to listen to the case we have made and respond with a workable scheme, which will raise environmental standards throughout the quarrying industry in Northern Ireland beyond the very high standards already attained.

"However, everyone should be under no illusion, this is no freebie. There will be cost to implementing the new environmental standards. However, those costs are nothing compared to the cost in economic terms and environmental terms that the Levy, if left unchanged would have done to the industry and Northern Ireland."

The relief, which is claimable from today, covers aggregate in processed products and virgin aggregate. It is fixed at 80% of the full rate until 31 March 2011. The full rate on aggregate exploited in the UK is £1.60/t.  Relieved aggregate in Northern Ireland is therefore liable at 20% of that rate - 32p/t.