Growers may face full climate levy

6 February 2001



Growers may face full climate levy

by FWi staff

BRUSSELS could block British plans to partially exempt the horticulture sector from the forthcoming European Union climate change levy.

British horticultural growers are expecting to pay only half of the full rate when the tax on energy use is introduced across the EU on 1 April

Pig and poultry farmers, who are affected by integrated pollution prevention and control legislation, were also granted an 80% reduction by the government.

Ministers agreed to the reductions after the National Farmers Union argued that the tax would disproportionately hit the high-energy using industries.

The pig and poultry sectors should get the go ahead as their levy reduction is linked to a commitment to cut energy use over 10 years, the NFU believes.

But EU approval for the horticultural reductions is needed as it qualifies as a state aid and this has been delayed, said NFU environment adviser Jacob Tomkin.

The union is not confident a reduction will be granted for horticulturalists, he told the National Farmers Union annual conference on Tuesday (6 February).

“We are currently in negotiations with [the Ministry of Agriculture and Department of the Environment] to ensure we will get the reduction,” he said.