The Aggregate Levy Credit Scheme is in line with EU state aid rules, the European Commission has announced.

The aggregates levy is an environmental tax in the United Kingdom, levied on commercially exploited virgin aggregates, such as sand, gravel or crushed stone. A lower tax rate was applicable in Northern Ireland up to 2010 under the Aggregate Levy Credit Scheme.

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Finance Minister Simon Hamilton MLA welcomed the decision. He said: "The Commission have been investigating the state aid compatibility of the Aggregate Levy Credit Scheme since it was suspended in 2010 following an EU General Court ruling.

"We have always maintained that the Credit Scheme we had in place was fully consistent with the Commission's rules. However, had the Commission found against the scheme, then they would have had to recover the aid that was provided to local quarry operators.

"This would have been devastating for the local industry. My Department, in co-operation with the industry and others, has been working very hard to prove to the Commission that the scheme was lawful and that recovery was not appropriate."

(CD/JP)