|
|
Patsy McGlone
24th November 2010
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
|
|