WE told you so! That's the reaction from Bolton and Bury Chamber to the news that the Government will fail to achieve its Kyoto Protocol target for reducing greenhouse gases.

A forecast from Cambridge Econometrics predicts that between 1990 and the 2010 deadline, levels will fall by just 6.5 per cent and well short of the Government's 20 per cent target.

The news has come as no surprise to Bolton and Bury Chamber energy adviser Jeff Wealands, of Utility Auditing Ltd.

He says: "These figures highlight the Government's muddled thinking and contradictory policies. Through its Climate Change Levy, most of the burden for energy conservation is placed on manufacturers who account for just 24 per cent of carbon dioxide emissions.

"The Climate Change Levy is supposed to be a neutral tax because, in theory, it should be offset by a 0.3 per cent reduction in employers National Insurance contributions. But the reality is that energy intensive companies with few employees, like many manufacturers, lose out while many service sector companies with lots of staff and smaller energy bills are the net gainers."

He continued: "There is little incentive for the service sector to reduce emissions so it comes as no surprise that Cambridge forecasters predict that their levels will rise five per cent by 2010. "Conversely, manufacturers have already cut emissions by 15.1 per cent."

The other major inconsistency, according to Jeff, is the domestic sector, which produces 23 per cent of all UK carbon dioxide emissions yet is exempt from the Climate Change Levy.

He says: "This is a ridiculous situation when you consider the latest Cambridge Econometrics figures which show that domestic levels are likely to be 19 per cent higher by 2010.

"If 12 months ago, the Government had declared a tax that would exempt almost 50 per cent of the cause of carbon dioxide emissions (domestic and road transport sectors), charge industry in full and pay the proceeds of the tax to clearing banks, insurance companies, call centres and many other service sector businesses, there would have been a national outcry. Isn't this what they have actually achieved?

"We urge the Government to rethink the Climate Change Levy, which is unfairly penalising the manufacturing sector, and to find other ways of encouraging all sectors to play their part."

For advice on reducing energy consumption and eliminating wastage, or on purchasing energy more cost effectively, contact Jeff Wealands at Utility Auditing on 848 9100.