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Green Taxes

We have had an interesting debate on a serious issue. I welcome the fact that the Liberal Democrats chose the subject for an Opposition day debate, but disappointed about their preoccupation with gross domestic product, which provides a weak assessment of the performance of green taxes. Apart from the examples provided by the Minister for Climate Change and the Environment, the Government have introduced a range of measures that will not feature in the calculation at all—tradeable landfill allowances, for example, which have a tremendous effect in boosting recycling. In turn, that provides more efficient energy use, which reduces CO2 . My hon. Friend the Minister will correct me if I am wrong, but another big change that would not necessarily be calculated in green tax schemes is the Treasury’s policy on company car taxation. Companies buy the most new cars—they account for the bulk of new car sales—and the changes that the Chancellor introduced to company car taxation have made a real difference to marketing and emissions in respect of manufacturers. I am inclined to agree that green taxes represent a low proportion of physical activity and there is a case for expanding a whole range of green fiscal measures. I know that the Treasury has not been afraid to look into them. There have been some shifts on that issue and the climate change levy provides one example. I listened carefully to what the hon. Member for Bexhill and Battle (Gregory Barker) said, but as my hon. Friend the Member for Southampton, Test (Dr. Whitehead) said, we heard no indication of any kind of policy. I understand that a policy review is taking place, but that argument can be run only for so long. It is time-limited. The Conservatives cannot go on saying that the answer to everything is to have a policy review. It is already damaging the right hon. Member for Witney (Mr. Cameron), because people are beginning to get tired of the fact that the Conservatives have no policies, as everything is subject to a review. There may well be a case for having a carbon tax as opposed to a climate change levy. We should be open-minded about that and any proposals should be examined, but we have to see what the proposals are, how they are going to work, how they will be applied and whether they will prove more effective than the climate change levy. If the hon. Member for Bexhill and Battle looked at independent analysis of the climate change levy, he would find that it has been very effective in reducing emissions.