2 March 2000
Agchem firms see climate levy confusion

CRITICISM of the governments handling of its climate change levy – which could hit thousands of farmers – has come from a a chemical industry group.

The Chemical Industries Association, which is trying to secure an 80% rebate for members, claims negotiations had become mired in confusion, reports the Financial Times.

It said questions remained over eligibility for the exemption, and there was confusion over the governments definition of “good quality” power-generation facilities.

Farm leaders have warned the “green levy” could drive UK horticulturalists, who are not eligible for the 80% rebate, out of business.

The National Farmers Union has been discussing possible extensions to exemptions with Treasury minister Stephen Timms.

Environment minister Michael Meacher this week signalled that the government may consider levy rebates for farming and other sectors.