Aggregates Levy Judgement - No End in Sight for Stealth Tax

• 
• 17th September 2006
• Quarrying
 

The European Court of First Instance (CFI) today dismissed the British Aggregates Association (BAA) legal challenge to the Aggregates Levy under state aid rules.

BAA Director Robert Durward comments;
"This decision means continuing the nonsense of adjacent quarries producing virgin aggregate where one pays the £1.60/t tax and the other does not.  However we will continue to campaign to have the levy removed as it is not only bad for the environment but is is highly discrimatory in nature."
 
The CFI judgment would appear to represent a significant shift in policy by moving it away from previous legal precedent set by the European Court of Justice (ECJ), the EUs highest court.  According to previous case law, environmental concerns could not justify a difference in treatment between different sectors which had the same environmental impact.  This formed a major part of the BAA case.  Furthermore, some of the exempted materials such as china clay and slate have an environmental impact which is actually much greater than aggregate extraction.  However, today's Judgment suggests that the CFI, the EUs second highest court, now disagrees with this position.  This may be wrong as a matter of law and the BAA is presently considering its options.  If legal opinion supports the view that the CFI Judgement is not in accordance with the law, then an appeal may be lodged in the ECJ against the decision of the CFI.
 
Robert Durward;
"It is however encouraging that the whole industry is now more united than ever against this tax.  This is a direct result of the BAA's single-minded determination not to let the matter rest"

Contact:

The British Aggregates Association,
PO Box 99
Lanark ML11 8WA

Director - Robert Durward: 01555 663 444
Executive Officer - Richard Bird: 07776 298 347
Secretary -  Peter Huxtable: 01433 639 879