Alan Brown – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Alan Brown on 2015-09-17.

To ask Mr Chancellor of the Exchequer, whether his Department assessed the merits of a carbon price support exemption scheme for (a) Scotland and (b) the UK.

Damian Hinds

Environmental protection is a devolved matter, and outstanding land restoration liabilities lie with the relevant local authorities and ultimately with the Scottish Government. The Treasury has fully considered the two proposals put to them for addressing the shortfall of land restoration on abandoned Scottish coal mines: an exemption from the Carbon Price Support (CPS) tax and a direct grant from the Exchequer. Following discussions with Hargreaves, the UK Coal Authority, the Scotland Office, the Scottish Government and DECC, the Treasury has had to decline both proposals after thorough consideration. The reasons for this include: – Addressing the shortfall in land restoration is not the responsibility of the UK Government. Environmental protection is a devolved matter, and outstanding land restoration liabilities lie with the relevant local authorities. – The proposals are unaffordable in the current fiscal climate. They would also set a precedent that would risk discouraging companies and local authorities from making proper financial provision for the cost of site restoration and future environmental liabilities. – A CPS exemption would be an inefficient means of addressing the shortfall of land restoration, as the money would not go directly towards this aim and it would incur significant administration costs. – A CPS exemption would distort the market by making non-exempt coal less competitive, and by discouraging investment in low carbon power generation. I have written to the Scottish Government’s Minister for Business, Energy and Tourism informing him of this decision and I would be happy to consider any other options put forward.