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FPB kicks up stink over
muck tax
A leading business pressure group says it is appalled that the horse
industry is to be hit with a new stealth tax - on horse muck.
Under legislation to be enforced this July by the Department for
Environment, Food and Rural Affairs, equestrian businesses - from livery
yards to studs and riding schools - which compost muck to use as
fertiliser will have to obtain a permit costing up to £500.
The FPB's Head of Research Andrew Mowlah said the legislation would hit
smaller businesses hardest.
"Yet again it appears the Government has failed to conduct a proper
regulatory impact assessment and therefore small firms are going to be
clobbered by this legislation,' he said. "For small yards
composting is a viable and much-used alternative. Our members are
telling us that this new tax is absurd and has come completely out of
the blue. Manure has been spread for as long as land has been farmed, it
is ludicrous now to suddenly slap a stealth tax on the industry."
Mr Mowlah said the legislation came as a double whammy, as from July 1,
to compost the waste businesses will need to have installed leak-proof
concrete flooring beneath the muck heaps with a sealed holding tank for
the liquid which runs off - all at a cost which could run into the
hundreds of pounds.
Comment from FPB member:
Keith Sanders, Manager, Northcote Heavy Horse centre,
Lincolnshire
" Who on earth thinks of taxing horse muck? It's an absolute farce.
I'll be the first to take a lorry load of dung to
Downing Street
to make my point. This could cost me thousands, and yet I have no visit
from a Government inspector asking how it will affect me. But no doubt
the legislation will create more bureaucracy and bureaucrats. But
whoever thought of this legislation does not know their dung. Horse muck
is not as wet as pig or cow because it is about 60 per cent straw, so
there is no need to go to the hugely expensive lengths of building new
concrete floors. This will cripple many horse businesses who are already
struggling with the taxation burden."
Note
Manure from privately kept horses is classed as household waste and will
be exempt. But manure from businesses is classified as industrial waste,
so the way it is kept, treated and disposed of is currently subject to
the Waste Management and Licensing Regulations (1994).
One of the stipulations of these regulations is that muck must be taken
away by a licensed remover, unless it is composted on site for use as a
fertiliser.
A muck heap of less than five tonnes will not incur a charge, but one of
between five and 50 tonnes will cost £252 for the first year and £174
thereafter, while 50-400 tonnes will cost £482 for the first year and
£402 each year after that. The average horse produces nine tonnes of
manure a year.
----------------------------------
Muck tax still a muddle
says FPB
A leading business pressure group is hauling the Government across the
coals for its abject handling of a new stealth tax on horse muck.
The Forum of Private Business said the Department for Environment, Food
and Rural Affairs (DEFRA) had failed to communicate significant changes
to the law over the handling of horse manure with the equine industry.
Under legislation to be enforced this July equestrian businesses which
compost muck to use as fertiliser will have to obtain a permit costing
up to £500.
But the FPB said Defra had not only failed to consult the equine
industry on the changes it had also failed to communicate the changes
with horse businesses.
"The FPB's equine members are telling us the first they heard about
this new legislation was when they read about it in the Horse and Hound
magazine last week,' said FPB's Chief Executive Nick Goulding.
"That is totally unacceptable. Moreover despite its frantic
attempts to kill the story Defra still cannot give a clear answer on
what kind of muck will be taxed and what will be exempt. At the very
least, given that this legislation carries fines of up to £20,000, its
implementation should be delayed. That way the equine industry can be
properly consulted and businesses can have a definitive answer as to
whether they will be affected or not. The FPB's contacts have spoken to
Defra and astonishingly it could not say how many horse businesses would
be affected by the legislation."
The FPB's Head of Research Andrew Mowlah said the legislation would hit
smaller businesses hardest.
"For small yards composting is a viable and much-used alternative,'
he said. "Our members are telling us that this new tax is absurd
and has come completely out of the blue. Manure has been spread for as
long as land has been farmed, it is ludicrous now to suddenly slap a
stealth tax on the industry."
Mr Mowlah said the legislation came as a double whammy, as from July 1,
to compost the waste businesses will need to have installed leak-proof
concrete flooring beneath the muck heaps with a sealed holding tank for
the liquid which runs off - all at a cost which could run into thousands
of pounds.
Comment from FPB member:
Keith Sanders, Manager, Northcote Heavy Horse centre, Lincolnshire
" Who on earth thinks of taxing horse muck? It's an absolute farce.
I'll be the first to take a lorry load of dung to Downing Street to make
my point. This could cost me thousands, and yet I have no visit from a
Government inspector asking how it will affect me. But no doubt the
legislation will create more bureaucracy and bureaucrats. But whoever
thought of this legislation does not know their dung. Horse muck is not
as wet as pig or cow because it is about 60 per cent straw, so there is
no need to go to the hugely expensive lengths of building new concrete
floors. This will cripple many horse businesses who are already
struggling with the taxation burden."
-------------------------
FPB BACKGROUND:
The Forum of Private Business (FPB) was formed in 1977 and is a pressure
group fighting on behalf of private businesses. The FPB represents
approximately 25,000 UK-based businesses employing in excess of 600,000
people, and is a powerful lobbying voice in both the
UK
and the European Union.
The FPB, as the only full
UK
member of UEAPME - the organisation that represents small and
medium-sized enterprises (SMEs) in
Europe
- is the most prominent advocate of UK SMEs in
Brussels
and has a track record of positively affecting legislation prior to its
introduction in the
UK
.
The FPB also provides a range of business services aimed at increasing
member efficiency and profitability. Visit www.fpb.org
FPB press office:
Tel: 01565 634709
Fax: 0870 241 9570
(13/5/05)
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