Climate change rebate lobby for laser users

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Confederation of British Metalforming members saved more than £2 million on energy bills last year, thanks to a climate change levy rebate agreement and now others may be able to benefit.

The CBM has persuaded DEFRA to consider a similar deal for companies in the laser-processing sector, who currently pay the full levy. CBM’s lobbying efforts start this month and companies using laser-cutting machines are invited to contact the CBM’s John Houseman on 0121 601 6350. In fact the CBM’s Stan hardy, projects director, is to see deputy Prime Minister John Prescott this month and will discuss the “long-running bizarre situation whereby heat treatment and the use of lasers are not permitted activities for levy rebate”, amongst other matters. Mr Hardy recently spoke to Environment Minister Elliot Morley, asking for a moratorium on the Climate Change Levy. The levy was introduced in April 2001 as part of the government's strategy to cut the UK's greenhouse emissions by 12 per cent by 2010 – it has so far not been increased. It taxes companies’ energy use and partly offsets this through employers’ National Insurance contributions reduction. In 2004/5 this offset was worth £1.2 billion to business, compared to £772 million raised by the levy, but the way the offset is administered is challenged as it favours service industries over intensive energy-using manufacturers. The government recently made available an additional £35 million to provide interest-free loans for the introduction of energy saving measures.