Treasury allays spray tax fears
27 March 2001
Treasury allays spray tax fears
By FWi staff
FEARS that the pesticide tax could be imposed if voluntary industry measures fail to deliver environmental benefits by next spring have been allayed.
In its Budget report, the Treasury said it wanted to see environmental benefits beyond those expected from a pesticide tax before the 2002 Budget .
But Secretary to the Treasury Stephen Timms has reassured industry figures that difficulties of proving this in such a short period were understood.
This extra leeway was welcomed by Anne Buckenham, director general of pesticide manufacturers body the Crop Protection Association
“They want evidence that we are on track to deliver the expected environmental benefits in future,” she said.
She believes the group can hit the milestones towards that goal as laid out in its package of measures, foot-and-mouth permitting.
The Department of the Environment, Transport and Regions, which will oversee the implementation of the package from 1 April.
A steering group is to be approved by 1 June, and that groups independent chairman will report progress ahead of the November pre-Budget statement.
Farmers and chemical manufacturers had argued that taxing pesticides would have cost the industry 125 million a year, with no environmental benefit.
Nevertheless, the voluntary proposals, which include training and crop-management programmes, is expected to cost farmers about 11m a year.