ECO-TAX SET TO SWITCH OFF ENERGY-SAVING BULBS - HUHNE

10.01.00am UTC (GMT +0000) Mon 8th Jan 2007

The new eco-tax could backfire spectacularly.

A new eco-tax being introduced this year is set to backfire by discouraging people from buying energy saving light bulbs.

Energy saving bulbs will be subject to a new EU directive, which imposes the costs of safe disposal - estimated at 34p per bulb - on the producer. However traditional, less efficient, bulbs will not be subject to the new charge.

Commenting, Eastleigh MP and Liberal Democrat Shadow Environment Secretary, Chris Huhne MP said:

"Producers should pay to dispose of their products, but this charge has to be applied evenly to new and old products or this will be the first eco-tax to backfire spectacularly.

"It is ridiculous that the tax system is discouraging a shift to energy saving bulbs, which could cut our carbon emissions by 90,000 tonnes a year and our energy bills by £75m. This is an example of well-intentioned European legislation leading to unintended consequences. This is a cock-up not a conspiracy, but it needs to be sorted out quickly.

"Ideally the Government and our EU partners should make old-style bulbs subject to the same charge or a special tax should be introduced to equalise the burden.

"There is even a case for gradually removing from sale those traditional bulbs where readily available low energy substitutes are now available."

Mr Huhne has tabled a parliamentary question to David Miliband asking him to review the disparity in treatment, and has also written to EU Environment Commissioner Stavros Dimas on the issue.