Part of Finance Bill – in a Public Bill Committee am 1:15 pm ar 7 Mehefin 2007.
The point that I was making was that the 1.5 km limit is available in existing definitions. We are discussing with the industry how to ensure that the clause provides flexibility for vehicles, including 4x4s, that are genuinely used for agricultural purposes rather than on-road driving. The purpose of the consultation is precisely to ensure that we do not allow tax relief for normal public, on-road driving, but that we provide the flexibility that the farming community needs.
The hon. Member for Ludlow asked whether any of the current taxation classes will be repealed. That is not our intention. The clause’s purpose is to ensure that legislation remains current and relevant, and that only vehicles that are legitimately entitled to the exemption are licensed in the agricultural categories. There are no plans to remove any of the existing exemptions. Our intention is only to improve and update, and to include revised definitions for agricultural vehicles in accordance with new technological developments.
The hon. Gentleman also asked whether the changes will put existing users outside the exemption. Clearly, we are trying to reduce the ambiguity in the definitions to enable the agricultural industry to continue to benefit from legitimate exemptions while discouraging unfair competition. The definitions will be carefully framed and will be discussed with stakeholders and businesses to avoid imposing an unnecessary compliance burden. We do not intend to penalise those who already qualify legitimately to license their vehicles in the agricultural machinery taxation class.
I am sure that the matters that my hon. Friend the Member for Wolverhampton, South-West raised will be firmly in the mind of my hon. Friend the Financial Secretary and other Ministers as they take forward our wider agenda to promote conservation and a reduction in climate change. I will ensure that the Financial Secretary is fully aware of the question that he asked. It goes wider than the clause, but it is important. If I can update him on any issues, I shall ensure that they are included in an addendum to the previous letter.