BAA takes legal action against N. Ireland aggregates levy relief scheme

THE British Aggregates Association has lodged a complaint with the European Commission against the Government’s proposed new scheme for relief from the aggregates levy in Northern Ireland, as it believes the proposals may be illegal.

The move follows the Government’s request for state aid clearance from the EC for the new scheme, which the Treasury announced in last December’s pre-Budget report and hopes to implement in April 2004.

In July 2002 the BAA brought an action before Europe’s Court of First Instance (CFI) against the European Commission, seeking annulment of its decision that the aggregates levy in the UK did not constitute state aid. This action remains before the court, but the BAA’s legal team advised that the Government’s latest proposals may also be illegal and recommended that, in line with the action at the CFI, the Association lodge a complaint with the EC requesting a formal investigation procedure.

The BAA, which has played a key role in highlighting the severe problems caused by the levy in Northern Ireland, as well as across the UK as a whole, said its decision to submit a legal complaint was not taken lightly, but having taken legal advice and tried to talk to the Treasury, it felt there was no alternative.

BAA director Robert Durward commented: ‘The BAA is sympathetic to the very serious problems the levy has caused for quarry operators in Northern Ireland, but we are concerned that most of these problems apply across the UK and have not been properly addressed.

‘We recognize that our objection could delay or prevent the proposed new relief scheme in Northern Ireland…but we believe that our continuing legal challenge to the levy, based on the compelling evidence that it is not protecting the environment, and is in some ways harming the environment across the UK, is the best way to protect the interests of both the environment and independent quarry operators.’