Assembly calls on OFMDFM to Protect Quarry Industry

SDLP Deputy Leader, Patsy McGlone, has welcomed the Assembly’s call to protect the quarry industry, the construction industry and Northern Ireland’s wider economy following the withdrawal of the NI Aggregates Levy Credit Scheme. On Monday 15th November the Assembly unanimously supported an SDLP motion calling on the First and deputy First Ministers “to take all possible steps, including working at Treasury and EU level, to protect the quarry industry, the construction industry and Northern Ireland’s wider economy”.

Speaking after the debate Mr McGlone said, “The overwhelming majority of the 183 quarries and sandpits across the North are family-owned, independent operators, producing an estimated £400 million of products a year. Over the past 14 years, the industry’s average annual production has been 25 million tons. However, the industry has suffered during the economic crisis, along with many other sectors connected to the construction industry. In 2009, production had dropped to 19.5 million tons, which is 30% below the 2007 level of 29 million tons.

“There have also been job losses in the industry. Employment in the industry now stands at approximately 3,750, compared with almost 5,000 at the start of 2008. That represents a 25% drop in employment. We have seen in the social security offices in Dungannon, Cookstown and Magherafelt the effect of high levels of unemployment and the loss of construction jobs.

“The withdrawal of the aggregates levy credit scheme could prove to be highly damaging to the aggregates industry. It also has huge potential to have a knock-on effect on our construction industry. It has been estimated that the suspension of the levy credit scheme will cost the public sector construction budget an additional £25 million. Indeed, an additional £70,000 could be added to the cost of one particular scheme. We can see that knock-on effect being replicated across the North.

“The additional withdrawal of the planned 10-year extension of the levy credit scheme could be absolutely devastating. This is at a time when the Executive’s capital building programme is under intense pressure following the Budget cuts, the construction industry generally continues to struggle and our local economy needs all the help that it can get.

“The aggregates levy credit scheme has been successful in raising environmental standards in the industry. Claimants undertook formally to enter into and comply with a negotiated programme of environmental performance improvements over the duration of the relief.

“However, because of the recent ruling by the EU General Court on a case brought by commercial competitors to the aggregates industry in the North, the European Commission’s support for that relief scheme has been annulled. In response the UK Treasury has suspended the aggregates levy credit scheme in the North from 1 December 2010.

“But the Treasury has also confirmed that the UK Government remains a strong supporter of the scheme and will seek to reintroduce it if the European Commission can be convinced to make a new ruling.

“In those circumstances it is right that the Assembly has called on the First and deputy First Ministers to do everything they can to protect the quarry industry here and, in the process, to protect the construction industry and the wider economy.”

ENDS

Notes to editors:

The Assembly resolved
“That this Assembly, while noting the Treasury’s commitment to introduce a replacement for the current aggregates levy credit scheme from April 2011, expresses its concern over the decision to end Northern Ireland’s 80 per cent derogation on 1 December 2010; and calls on the First Minister and deputy First Minister to take all possible steps, including working at Treasury and EU level, to protect the quarry industry, the construction industry and Northern Ireland’s wider economy against the implications of this decision and the decision of the EU General Court.”

Assembly debate:
http://www.niassembly.gov.uk/record/reports2010/101115.htm#a11