NEWS In Brief
FRACKING GETS OK Extracting gas trapped in rocks using hydraulic fracturing – or ‘fracking’ – is safe, according to a report by the Royal Society and the Royal Academy of Engineering. Despite fears that fracking
can contaminate water and cause earthquakes, the report says the technique is safe – if firms follow best practice and rules are enforced. The report was
commissioned by the government’s chief scientist, Sir John Beddington, after shale gas extraction was halted by reports of earth tremors in the north west of England.
SPONSORS BACK YOUNG ENGINEERS Lochinvar and Ruskin Air Management have been announced as the first two sponsors of the new CIBSE Young Engineers’ Awards. Taking place on October 11 at the Institution of Mechanical Engineers in London, the awards scheme combines the CIBSE ASHRAE Graduate of the Year and CIBSE Employer of the Year awards. To attend or to enter visit:
www.cibse.org/awards
VAT on insulation is currently charged at 5%
l EC push to increase VAT on low energy products in UK could threaten Green Deal
The UK government may be forced to increase the rate of VAT charged on energy saving measures, following intervention from the European Commission. Currently, the UK charges just 5% VAT on heating controls, heat pumps, solar thermal, PV and insulation. However, the EC has ruled this is illegal and has ordered the UK to charge the full 20% rate on these measures within two months, or face a challenge in the European Court of Justice. The Builders Merchants Federation (BMF) says this could not have come at a worse time with the government’s flagship Green Deal scheme about to
All the latest news from around the building industry
Low VAT on energy measures ‘illegal’
launch. Policy manager Brett Amphlett warned that it could undermine the ‘golden rule’ where the cost of improvements must be met by repayments from energy savings.
‘This is really disappointing,’ said David Frise, head of sustainability at the Building & Engineering Services Assocation. ‘VAT is a tax on consumption; so it just seems bizarre to increase the rate of tax on measures designed to reduce consumption of energy. ‘I can understand that the European Commission would want to bring everyone into line, but this is the wrong line,’ added Frise. ‘Wouldn’t it be better to allow all member states to do the same thing and encourage people to invest in energy saving measures?’
Amphlett added that the BMF had been urging the government to extend the 5% VAT rate to all Green Deal projects.
‘Sadly it seems that bishops and bakers have the clout to force the government to concede on its VAT plans for alterations to churches and historic buildings, and on sales of hot pasties and static caravans. Yet the building trade faces the prospect of the Chancellor removing a lower rate that already exists for some energy-saving measures just before the introduction of a flagship policy to improve the energy-efficiency of our homes and workplaces. How crazy is that?’
The government is already under pressure from opposition MPs about the high level of interest being charged on Green Deal finance. Labour says a £10,000 Green Deal loan will cost £22,000 to pay back over 25 years because of the 7.5% interest rate. This would require the energy saving measures to deliver savings of £900 a year.
6
CIBSE Journal August 2012
www.cibsejournal.com
Shutterstock /Alena Brozova
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60