The damaging impact of the Government's proposed energy tax on Britain's horticultural industry is being highlighted by the National Farmers' Union.

The union forecasts a £26m cost to British farmers and growers if the tax is brought in as part of the Climate Change Levy which translates to £12,500 per hectare for every grower.

NFU president Ben Gill, who farms near Easingwold, will put the case for the horticultural industry to be exempt from the Climate Change Levy in the House of Commons next Thursday .

He said he felt the horticultural sector had a very convincing case for exemption from the tax which is proposed to be brought in in April 2001.

"The horticultural industry recognises its environmental responsibilities and has been making huge strides in reducing the energy it uses," he said.

"This is not only in the interests of the environment but is good commercial sense."

Nick Coates, who farms at Wilberfoss, said the tax would cost him about £20,000 a year and would take his business very close to the edge.

He said: "It would put an enormous number of people out of work and close down a lot of businesses.

"The annoying thing is that horticulture is good for the environment and we shouldn't be taxed, we should be encouraged."

He said Ben Gill's action in the House of Commons was necessary for the survival of the industry.

"He said: "Things are very grim and we're already paying for the waste water we use through another environmental tax.

"Farmers are going down generally and this issue hasn't really caught the attention of the public but I would compare it to the impact of the beef crisis, a lot of nurseries are going to be forced to close."

A survey of NFU members has shown that the increase in energy costs of growing produce would be up to 54 per cent under the new tax with extra costs ranging from £1,000 to £1m per business.

Meanwhile, the union says that British growers are already some of the most energy efficient in the world, with an increase in energy efficiency of 25 per cent over the last ten years.

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