HMT8                                    

9 March 1999

REDUCING THE ENVIRONMENTAL IMPACT OF QUARRYING

The quarrying industry was asked today to come forward with an
enhanced package of voluntary measures to reduce the environmental
impact of quarrying.

Research results, published today by the Department of the
Environment, Transport and the Regions, show that there are
significant environmental costs associated with quarrying, including
noise, dust, visual intrusion, loss of amenity and damage to
biodiversity.  The Government believes that there is a case, in
principle, for a tax on the extraction of aggregates. Draft
legislation for a tax on hard rock, sand and gravel used as
aggregates will be published shortly.

However, before coming to a final decision on whether to introduce a
tax, the Government will first pursue the possibility of an enhanced
package of voluntary measures with the quarrying industry.  The
Government considers that the industry's initial proposal for a
voluntary package falls well short of what is justified by the
environmental costs of quarrying.

Economic Secretary Patricia Hewitt, said:

    "Research shows that there are significant environmental costs to
    quarrying. This suggests that there is a case, in principle, for
    a tax on the extraction of aggregates.

    "But before coming to a final decision on whether to proceed with
    a tax, the Government would first like to pursue the possibility
    of an enhanced voluntary package of environmental improvements
    with the industry.  Should the industry not be able to commit to
    an acceptably improved offer, or fail to deliver an agreed
    package of voluntary measures, the Government would introduce a
    tax.

    "Richard Caborn and I will be meeting representatives from the
    quarrying industry shortly to begin these negotiations."

NOTES FOR EDITORS

1.  The Government believes that it is essential that there continues
    to be an adequate supply of aggregates. However, the Government
    also recognises that aggregates extraction can have a significant
    environmental impact, and often takes place in areas of
    attractive countryside.

2.  In the 1998 Budget, the Chancellor announced that research had
    showed that there were environmental costs to quarrying not
    covered by existing regulation. He announced further work in the
    following areas: -further research, building on the initial
    results, and on the recommendations of a peer review of the first
    round of research; -consultation on how a potential aggregates
    tax might work; -consideration of alternative proposals to a tax
    made by the industry.

3.  Results from the further research are summarised in a technical 
    note released on Budget day. They confirm that there are 
    significant environmental costs to quarrying. Details are 
    available from DETR's Press Office on 0171 890 3049.

4.  The industry's initial proposal of a voluntary package of
    measures was presented to Richard Caborn, Minister of State at
    the Department of the Environment, Transport and the Regions on 5
    November. The Government considers this initial proposal falls
    well short of what is justified by the significant external costs
    of aggregates quarrying.

5.  The Deputy Prime Minister wrote on Budget day to the Quarry
    Products Association to invite representatives from the industry
    to meet Richard Caborn and Patricia Hewitt very soon to begin the
    negotiations on an improved voluntary package. Progress will be
    reviewed in the 1999 Pre-Budget Report. Should the industry be
    able to make an acceptably improved offer, a phased
    implementation over 3 years could begin by January 2000, with
    independent annual review and a final assessment no later than
    the end of 2002.

6.  Customs and Excise have consulted on how a possible aggregates
    tax would work in practice. 199 responses were received from a
    wide range of industries, environmental groups. A report
    summarising the results will be published shortly. Draft
    legislation for a tax on hard rock, sand and gravel used as
    aggregates will be published at the same time for consultation.
    Lime and other minerals used for industrial purposes will be
    excluded from the scope of the potential tax.

HM TREASURY PRESS OFFICE 
Press Enquiries to: 0171 270 5238 
Non-media enquiries to: 0171 270 4558

If you have access to the Internet you can find this news release at
http://www.hm-treasury.gov.uk. Other Treasury material can also be
found at this address.

# = pounds sterling