MPA highlights cost burden

THE Mineral Products Association has highlighted the regulatory cost burden on the sector – and has called on the government to act now to make it easier for businesses to invest.
Nigel Jackson, Chief Executive MPA, said, “MPA remains extremely concerned at the identified cumulative cost burden on our sector arising from environmental and planning measures and the potential for these costs to increase even further in future years. There remains a continuing problem that each new measure which imposes new costs is evaluated and introduced without consideration being given to the cumulative impact of such legislation and regulation.
“2014 needs to be the year when the penny drops within Government that regulatory costs need to be reasonable and proportionate so that industry can invest with confidence. Such investment will be critical if our industry is to support and enable the economic recovery, notably in areas such as infrastructure, transport and housing development.”
Key findings from the MPA’s latest assessment include:
• Total sector costs of identified measures are £400 million pa now, likely to rise to £665 million from 2020.
• Climate change and energy measures are currently equivalent to 17% of the Gross Value Added of the Cement industry, but this proportion could increase to 77% from 2020.
• The costs to the Lime industry of Energy and Climate Change measures will increase from £8 million pa in 2013 to £49 million pa from 2020.