The Proposed Planning Gain Supplement would have a Major Impact on Mining and Quarrying

The Treasury consultation on the proposed introduction of the Planning Gain Supplement closed in February 2006. SAMSA believes that the proposed PGS is inappropriate and unworkable for minerals. The consultation document is based on the findings of the Barker Review which has clearly been drafted with housing in mind. No research has been undertaken into the implications for the supply of minerals, which are essential for development and the creation of sustainable communities.

Mining and quarrying is a fundamentally different form of development to housing and has its own planning regime. The introduction of PGS for mining and quarrying would introduce unacceptable market distortions and would have a negative impact on essential mineral supplies.

The Chancellor announced in his Pre- Budget Report published on 6 December 2006 that the Government intends to proceed with the introduction with PGS but that this will not now take place until early 2009. In relation to minerals the Report states:

“The application of PGS and a revised planning obligations system to major
infrastructure projects, to public sector works, to minerals and waste consents and to non-Town and Country Planning Act consents remains under review.”

SAMSA is encouraged that the Government has responded to the sectors concerns. Further consultation is to take place and SAMSA will continue to press for minerals to be excluded.