The MPA highlights the burden of government regulation on the mineral products sector

MPA has highlighted the regulatory cost burden on the mineral products sector to the government as preparation for the Chancellor’s March Budget takes place.

Key findings from the MPA’s latest assessment include:

• Total sector costs of identified measures are £400 million pa and are likely to rise to £665 million pa from 2020.
• Climate change and energy measures are currently equivalent to 17% of the gross value added (GVA) of the cement industry, but this proportion could increase to 77% from 2020 (from £51 million pa to over £250 million pa).
• Energy and climate change measures will increase lime industry costs from £8 million pa in 2013 to £49 million pa from 2020.
• Costs for the aggregates, asphalt and ready-mixed concrete industries will increase from £20 million pa to £48 million pa from 2020.
• Industry businesses have to manage the European Union Emissions Trading Scheme (EUETS), Climate Change Agreements (CCA) linked to the UK Climate Change Levy (CCL) and the Carbon Reduction Commitment Energy Efficiency Scheme (CRC). All focus on carbon reduction but with different scopes and different measurement requirements.
• The annual cost of the aggregates levy is equivalent to 35% of industry GVA.

Nigel Jackson, Chief Executive of the MPA, said: “MPA remains extremely concerned at the identified cumulative cost burden on our sector arising from environmental and planning measures and the potential for these costs to increase even further in future years. There remains a continuing problem that each new measure that imposes new costs is evaluated and introduced without consideration being given to the cumulative impact of such legislation and regulation.

“Regulatory costs need to be reasonable and proportionate so that the industry can invest with confidence. Such investment will be critical if our industry is to support and enable the economic recovery, notably in areas such as infrastructure, transport and housing development.”

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldcement.com/europe-cis/15012014/the_mpa_highlights_the_burden_of_government_regulation_on_the_mineral_products_sector_601/