Growers try for climate levy cut
16 February 2001
Growers try for climate levy cut
By Alistair Driver
BRITISH growers have launched a scheme to cut energy use in an attempt to secure a 50% discount under a new energy tax to be introduced in April.
Horticultural producers will pledge to cut energy use by 15% over 10 years under the scheme, organised a group of farming organisations.
The voluntary arrangement comes after Brussels refused to grant a 50% discount on the Climate Change Levy agreed with the Ministry of Agriculture.
The European Commission has demanded that the discount can be given only if it is linked to a commitment to cut energy use, to satisfy state aid rules.
An 80% discount agreed for pig and poultry producers has encountered no such problems, because it is linked to an energy reduction programme.
However, no programme was arranged for the horticulture sector – a situation which growers hope the new scheme will rectify.
NFU environment adviser Jacob Tompkins said the government had told him the discount would be awarded with no conditions attached.
He said he was surprised that government officials had believed such an energy reduction programme would not be necessary to claim the discount.
The scheme, was organised by the Horticultural Trades Association and the major farm unions in England, Scotland, Wales and Ulster
It aims to reduce carbon dioxide emissions, helping the UK meet its targets under the international Kyoto climate change agreement.
National Farmers Union vice-president Michael Paske said he hoped that 80% of growers would sign up to the scheme.
He added: “We remain totally opposed to the Climate Change Levy and continue to press for a complete exemption for agriculture and horticulture.”
But the NFU recognised the need for everyone to take action on climate change, which is why the union it believed the voluntary scheme was the way forward, he said.
Producers will provide annual energy data, which will be independently audited by Department of the Environment, Transport and the Regions.
Application packs are being sent out to 5000 growers.