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54 Plant & Civil EnginEER Northern Ireland Providing Essential Materials New minerals resource map of Northern Ireland launched Environment Minister Alex Attwood and Minister for Enterprise, Trade and Investment Arlene Foster have launched a Minerals Resources Map of Northern Ireland. Environment Minister Alex Attwood, (left) with QPANI’s Gordon Best, the DoE’s Mary MacIntyre, Andy Howard from the British Geological Survey and Enterprise Minister Arlene Foster The map will provide planners, industry and local communities with a powerful tool to assist future decisions on a countyby-county basis in relation to the continued supply of minerals and in the protection of the environment. In essence, local industry will be able to use local minerals more effectively. Salt to keep roads clear in winter, aggregates and other robust materials to support the local construction industry, mineral supplements for the animal feeds industry as well as base metals to sustain local manufacturing industry will all be more accessible. Environment Minister Alex Attwood said: “This is a remarkable map. There has never been such a picture of the resources under the ground we walk. It is a major tool to help understand the rocks from which we obtain fossil fuels - relevant to our energy needs; geothermal ‘hotspots’ - relevant to renewable energy; areas of environmental designation - relevant to preservation of our natural heritage. “This resources snapshot will also be an essential planning and economic tool. The new Minerals Resources Map will empower all users to readily examine the potential for particular minerals across Northern Ireland, and will facilitate a planned future of our limited natural resources and environment for generations to come. It is also a fascinating picture of Northern Ireland resources, environmental concerns and economic opportunities.” Enterprise Minister Arlene Foster said: “Mineral resources are QPANI Respond to Consultation on Simplification of Energy Efficiency Scheme QPANI has called for the scrapping of the proposed CRC Energy Efficiency Scheme, formerly known as the Carbon Reduction Commitment. In a written response to the CRC Team at the Department of Energy and Climate Change in London, Regional Director Gordon Best says QPANI believes the scheme, even with simplification measures put in place, will have a major impact on the competitiveness of large companies in Northern Ireland. “We would echo the CBI view that the CRC should be scrapped and mandatory carbon measurement implemented as an alternative,” he says. He points out that QPANI members produce over 95% of aggregates extracted in Northern Ireland, including sand and gravel and crushed rock. They are also responsible for the manufacture of approximately 95% of concrete, asphalt and other quarried products. They range in size from a number of major companies to a high number of SMEs employing directly in excess of 3000 people. “There are a number of aspects of this scheme which give rise to concerns. When originally devised the CRC required large energy users to pay a tax on each tonne of carbon they generated through their energy usage. The original scheme however also rewarded organisations who were more efficient by providing a revenue return for those who reduced their carbon emissions year on year. This rebate element of the scheme was removed by the Chancellor in his autumn budget statement in 2010, meaning that the scheme has now moved from one which encouraged energy efficiency to a straight carbon tax. “One of the perversities of the scheme is that in many ways it is a circular tax. In Northern Ireland 48 organisations are required to register under this scheme. Of these only 19 are private sector companies, while the other 29 are public sector organisations including government departments, health trusts, local councils and of course NI Water who are the largest energy user in the Province. So we have ended up with a scheme which results in government taxing itself! This will significantly increase costs for the NI Assembly who of course fund domestic water charges and local government departments, yet there appear to be no plans for an increase in the block grant to fund such increased costs. “In the private sector, only our largest and most successful companies are included in the scheme, which will result in increased energy costs of between 5% and 10%. This will mean additional costs for some of our members of up to £500,000 per year. “Energy costs in Northern Ireland are already some 18% higher than our competitors in the Republic of Ireland, 15-20% higher than in GB, and 30% higher than in France. It does seem preposterous that government is encouraging companies to become world leaders, and then introduces a tax which results in them becoming less competitive in world markets – effectively a tax on success!” He says that despite recent proposals from the Department of Energy and Climate change to simplify the scheme, the associated costs to administer this ‘overly complex and onerous scheme’ are also excessive and likely to result in costs of at least £10,000 per annum valuable national assets that are vital to a modern economy. They are essential raw materials, which underpin many industries including manufacturing, construction, power generation and transportation. Global competition for mineral supplies is increasing. “Local mineral resources are critical to the development of a sustainable economy and it makes good sense to use them where it is economically viable and environmentally sustainable to do so. “Northern Ireland’s varied geology means it has significant potential for a wide range of mineral resources - including aggregates, industrial minerals, precious and base metals and fossil fuels.” for each organisation that are required to make returns. “Private sector companies will also find themselves suffering double or triple taxation as a result of the scheme. It is patent that NI Water will have to increase water charges to fund this tax, while undoubtedly Belfast City Council will also increase business rates to fund their commitment to the charge, further adding to costs in the private sector. To sum up, it is apparent that modifications to the scheme since it was first mooted have resulted in this scheme becoming an overly complex bad tax which should be scrapped.” QPANI suggests that any new scheme should create a level playing field in the market place and across all sectors of the economy. To be viewed as a true energy efficiency scheme, it says, a means of the recycling of the revenue should be found rather than a revenue grab by the Treasury and that credit against any levy/ tax should be given for investment in energy efficiency measures. QPANI News Spread.indd 54 18/07/2012 14:26
The Finance Minister was speaking at the launch of the Quarry Products Association NI 2012 Industry Journal, designed and produced for QPANI by publishers 4Square Media. In his address the Minister said: “I am well aware of the current difficulties facing members and businesses represented by the Quarry Products Association. I along with my Executive colleagues are fully committed in doing all we can to support the industry by ensuring capital expenditure levels are sustained as far as possible in the current economic downturn”. The event in the Long Gallery of Parliament Buildings was sponsored by Patsy McGlone, current Chairman of the Assembly All Party Group on Construction, and was attended by over 80 industry representatives, MLAs, Government officials and other industry stakeholders. QPANI Regional Director, Gordon Best, said: “The fact that we have five Northern Ireland Executive Ministers making a contribution to this years Journal and the large attendance at our launch is no coincidence. We are greatly indebted to our Ministers and MLAs from every party who have shown consistent support for our industry during this past number of difficult years. It is widely recognised that the quarry products sector makes a significant contribution to the local economy, particularly in rural areas”. Minister for Enterprise trade and Investment, Arlene Foster added: “The quarry industry plays a key role in producing the raw materials that Northern Ireland needs to develop and maintain its infrastructure, build new homes and keep our road network in good condition. Its importance to our economy, particularly in rural areas is crucial.” Alex Attwood, Minister for the Environment said: “The quarry industry brings benefits to Northern Ireland. QPANI has recognised the opportunities for its members to deliver tangible, long term benefits for local communities, through environmental improvement, enhancing landscapes and biodiversity and resource efficiency. I would urge the industry to maintain the high environmental standards already achieved.” Danny Kennedy MLA, Minister for Regional Development, commented: “I am particularly conscious of the significant benefits for jobs and future prosperity which results from investment in roads infrastructure. Together we will face many challenges in delivering the major works programme and I continue to look forward to working with QPANI and the many companies it represents.” Nelson McCausland, Minister for Social Development, remarked: “When I recently met with representatives of the QPANI I assured them I would do all I could to support them and their members through these challenging times. I was pleased that they equally recognised the need to play their part and help me in the delivery of my own priorities. That has got to be the way forward, working together and delivering high quality outcomes that will meet our twin objectives in providing quality and sustainable end product whilst supporting local jobs and recognising the need to be innovative in achieving this.” In his opening address, Patsy McGlone MLA and Chair of the All Party Group on Construction paid tribute to the active participation of Northern Ireland Providing Essential Materials Stormont Recognises Local Industry’s Positive Contribution Five Executive Ministers, led by Finance Minister Sammy Wilson, have praised the local quarry products industry for the innovation and contribution it makes to rebuilding the local economy and the role it plays in enhancing the quality of life for everyone in Northern Ireland. Pictured from left are Gordon Best ( Regional Director QPANI ), Patsy McGlone MLA ( Chairperson of the All Party Group on Construction ), Sammy Wilson MLA, MP, Finance Minister, Clive Grudgings ( QPANI Chairman ) QPANI in the All Party Group. “The All Party Group is an important focus of influence through which we can, together, set in place the conditions and initiatives required to generate sustainable economic growth in the construction sector.” In his closing remarks Clive Grudgings, current Chairman of QPANI, said: “Investment in Construction Projects brings significant returns to the Northern Ireland Economy - It generates Jobs and we can play a significant role in helping to grow our economy. We may face significant challenges but by working together the Construction Industry in General and the Quarry Products Industry specifically can help build that road to prosperity – a Road we are all hoping to lay the foundation for.” All Island Construction Materials Sector Capacity Study Report Inter-Trade Ireland in partnership with the Quarry Products Association NI and the Irish Concrete Federation have published a report into the current state of the Construction Materials Supply sector on the island of Ireland. This report shows the challenging circumstances currently facing the construction materials sector. Capacity utilisation is of the order of 27% of its peak of 2007. Across the island, a significant aspect of the decline in the sector has been the loss of 12,300 jobs over the past four years. The prospects for any substantial uplift in the medium term are weak. The high level of structural overcapacity within the sector, which the report estimates at 37% of existing plant capacity, means that an enduring process of rationalisation is inevitable. The steering group drawn from representatives of businesses in the quarry products, concrete and asphalt industries across the north and south of Ireland along with representatives from government development agencies believe that it is essential to provide guidance and support to the industry so that a managed transition to a new reality could be achieved. Plant & Civil EnginEER QPANI News Spread.indd 55 18/07/2012 14:26 55
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CAT Finning FC fp ad.indd - Plant & Civil Engineer

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