13 September 2007

QPA Demands Levy Fund Commitment Beyond Spending Review

In the coming weeks, Government will announce spending plans for the next three years following the comprehensive spending review. These plans will determine the fate of the Aggregates Levy Sustainability Fund (ALSF) and the QPA is calling for a commitment to be made to the vital funding stream before it runs out in March 2008.

Simon van der Byl, Director General of the QPA, said that "the ALSF is the only means by which the aggregates levy actually generates any environmental benefits. Since 2002, it has funded projects which have benefited local quarrying communities, improved wildlife habitats, supported archaeology and much more. "

These successful projects have been completed in the face of persistent shortfalls in funding. In the four years from 2002/3 to 2005/6, only £83 million of the £117.2 million total ALSF provision has actually been provided by Defra. The balance appears to have been retained to finance other internal budgetary shortfalls. And, more recently, it has been revealed that key local distributing body Derbyshire County Council has similarly redirected ALSF money into unrelated projects.

From April 2008, the aggregates levy will increase by 22%, generating even more revenue for the Treasury. QPA is therefore calling on Government to:

- Maintain the level of ALSF funding at the originally specified £29.3m pa.
- Ring Fence the ALSF to prevent the fund being used for other purposes.
- Introduce a specific objective for the fund to support the reduction of carbon emissions in the aggregates sector.

Simon van der Byl added: "We have made strong representations to Government about the future of the ALSF. As the rate of the Levy increases, we believe that the case for maintaining the fund and refocusing on carbon reduction is compelling."

ENDS


QPA Contact: Jerry McLaughlin - 020 7963 8000.