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Environmental regulatory costs likely to double by 2020, say MPA

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World Cement,

In its latest report, the UK Mineral Products Association has identified hundreds of millions of pounds of costs associated with environmental regulation, which it says is likely to almost double by 2020.

MPA findings indicate:

  • Environmental and planning-based regulatory costs are set to increase from £324 million in 2013 to £641 million pa in 2020.
  • These costs are significant: they are equivalent to 28% of aggregates industry GVA and 7% rising to 49% of cement industry GVA.
  • This is in addition to all other taxes paid by the sector, for example VAT, business rates, NI and fuel duty that cost the sector at least £900 million annually.
  • There has been a trend towards stealthy growth in regulation and more cost recovery models are being imposed by regulators and public agencies.
  • Evidence indicates that measures designed in Europe for the best of intentions can lead to disproportionate costs and bureaucracy for UK businesses.
  • An assessment of legislation and regulation relevant to industry businesses has identified approximately 340 environment and planning related laws and regulations managed by the industry – not all of these measures will apply to every business.

Nigel Jackson, Chief Executive MPA, commented, “The good news is that government does recognise the need to manage regulatory impacts better and has taken positive action. The bad news is that identified costs are set to double over 2020 and the scope of costs is increasing.

“There is an urgent need for both the volume and quality of regulation being imposed on the mineral products sector to be subject to some form of strategic collective management and control within government.

“MPA is not opposed to regulation; it supports high operating and sustainability standards and effective regulation designed to achieve clear objectives and implemented efficiently, reasonably, consistently and proportionately. The industry’s broad scope of activities encompasses mineral prospecting; mineral extraction; dredging and processing; the manufacture of a range of mineral products, including energy intensive materials; construction; recycling of products; restoration; and afteruse of land. A key concern remains that there is no process in government to monitor or manage the cumulative impacts of regulations on the industry from the various parts of government.”

The MPA points out that if the mineral products industry is to realise its full potential in helping to deliver economic growth, government needs to reduce the cumulative costs and regulatory burdens it faces.

Adapted from press release by

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