CP Hire FC fp ad.indd - Plant & Civil Engineer

in brief
“We just can’t sustain this
drop in business and if it
continues jobs will be lost.
It’s disappointing because
the quarrying industry in
Fermanagh has always had a
close bond with the farming
community and when they
44 Plant & Civil EnginEER
Northern Ireland
Providing Essential Materials
Are you
liable for
aggregates
levy?
HM Revenue & Customs
(HMRC) is reminding all users
of imported aggregate that
they may need to register
and pay the appropriate
levy, or a penalty of up to
100 per cent in addition to
the levy, may be imposed.
Anyone in the UK who
imports aggregate and in the
course of their business uses
it for construction purposes,
mixes it with anything other
than water or enters into
an agreement to supply
it onwards, will be held
responsible for commercially
exploiting that aggregate
and must register and
account for aggregates levy.
Elaine Crawley, HMRC
Spokesperson said:“HMRC
does not want to impose
penalties and we actively
encourage businesses and
individuals to pay the correct
tax at the right time. If you
think that you may be liable
to register for aggregates
levy please contact us
on 028 9056 2771.”
One local quarrying company
said: “Since the aggregates
levy was increased from 40p
per tonne to £2.00 back in
December we have seen a
steady decline in business
and since the spring the local
farming community seems
to have deserted us by going
south to buy their stone.
Industry struggling
as ‘Perfect Storm’
shows no end in sight
The continuing difficulties being faced by the construction industry as a result
of the depressed housing market, cuts in public spending both here and in
Britain, unreasonable behaviour by the banks and the public sectors unrelenting
drive to raise more revenue to fund more inefficiency is creating serious
problems in the local construction materials sector and wider private sector.
That’s the dire message from the
Northern Ireland branch of the
Quarry Products Association.
“Added to that is the dropping
work volumes and the rising
energy and raw material costs
resulting in what can only be
described as a perfect storm
that our construction materials
supply sector is having to
endure,” says QPANI Regional
Director Gordon Best.
Every sector in the construction
supply chain is being affected.
The aggregates suppliers in
Northern Ireland are struggling
to cope with the suspension
of the aggregates levy credit
scheme and the subsequent
increase in aggregates levy from
40p per tonne to £2.00. This
is now causing job losses in
companies in the border areas
as they see former customers
source stone from south of
the border. There is also an
increase in the black economy.
cried out for help to buy local a
number of years ago following
the foot and mouth outbreak
we all supported them.”
The Quarry Products
Association NI that represents
the majority of quarrying
companies in Fermanagh and
across Northern Ireland has
appealed to the local farming
community along the border
to support their neighbours
in the quarrying industry.
Gordon Best, Regional Director
of QPANI, said: “While we
recognise the economic
difficulties all sectors are facing
at the minute we would say
Adds Mr Best: “Companies in the
asphalt sector who are currently
involved in contracts carrying
out much needed maintenance
work on our roads network are
facing heavy losses as the safeguards
built into those contracts
to meet any inflationary cost
increases in materials such as
bitumen and fuel are simply
not working. In the past year
we have seen key material
costs rise by 20% but the price
indices built into the contracts
have only gone up by 6%.
“The UK Governments u-turn
on recycling money raised
in the Carbon Reduction
Commitment scheme to those in
the scheme who improve their
energy efficiency and reduce
carbon footprint is having a
discriminatory and unfair impact
on a small number of Northern
Ireland construction product
manufacturers. The companies
affected are now considering
to local farmers that it is in
their longer term interests to
support local quarries given
the close link there has been
with the quarrying companies
who have provided a second
income to supplement wages
for many within the farming
community over many years.
“The reality is that if farmers
are buying their stone from
companies in the Republic and
bringing it into Northern Ireland
the obligation to pay aggregates
levy of £2.00 per tonne rests
with them. This means that
they have to register with Her
Majesties Customs and Excise
relocating their manufacturing
facilities south of the border.
“Then we have public sector
bodies in Northern Ireland such
as Planning Service and the
Environment Agency raising fees
with no reciprocal increase in
service and value for money.
While we fully support the
Executive in its aspirations to put
the economy as the top priority
the reality is, that aspiration has
not translated through to the
senior public sector decision
makers who seem more focused
on protecting their empires
and not making necessary
but vital decisions by, in many
cases, hiding behind lawyers.
“If our Executive is to really
make a difference and calm the
perfect storm being faced by our
industry we need to see crucial
decisions taken quickly that
put businesses first and action
that facilitates real economic
growth and job creation.”
Quarry jobs to go as
farmers look South
Fermanagh is facing the prospect of more job losses within the quarrying industry as the double whammy of
the ongoing recession and loss of business to companies south of the border impacts on local companies.
to pay aggregates levy. While
no one in our industry wants
to report tax evasion by their
neighbours it is now a matter
of survival and our Association
are asking HMRC to take
action to inform the farming
community that they have a
legal requirement to pay the
levy if they import stone”.
It is worth noting that the
quarry products industry in
Fermanagh employs around
1000 people, thus providing
essential employment and
investment in the local economy.
QPANI News 2pgs.indd 44 03/08/2011 15:48