Thursday 18 November 2010

Chris Huhne announces CRC consultation


The second phase of the CRC Energy Efficiency Scheme could be delayed until 2013, the secretary of state for energy and climate change, Chris Huhne, announced today. Speaking at the CBI Climate Change Summit in London, Huhne told delegates that a nationwide consultation into postponing the start of Phase II of the CRC has been published, adding that the extra time could allow the government time to reduce the administrative burden on businesses. He explained: "This will create a window for us to engage in a proper dialogue with participants about what we need to do to improve the CRC."

Huhne also announced that thousands of businesses will be exempt from the scheme. He said: "I can reveal that we are proposing to exempt over 12,000 information declarers from the scheme. We now have enough feedback from the first stage of the CRC to remove obligations on information declarers without compromising the scheme’s environmental aims."

The largely unpopular decision that funds raised from the CRC will not be recycled back to participating businesses was raised at the conference and was described as a 'debacle' by CBI's director general Richard Lambert. He said: "Those who feared that green taxes would simply turn into another kind of stealth tax have had their prejudices amply confirmed by the way the Carbon Reduction Commitment has been converted, without consultation, into just another source of revenue for the Treasury." When questioned about this decision by the summit's chair, Roger Harrabin, Chris Huhne said the revision to the CRC would simplify the scheme but acknowledged that tough decisions had been made as part of the comprehensive spending review (CSR).

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