By James Kirkup and Louise Gray (Daily Telegrapgh)

COMPANY executives and workers face prison sentences and large fines for breaking the rules of the Government’s controversial new Carbon Reduction Commitment scheme. Thousands of firms are already facing fines if they miss a deadline to register to take part in the “green tax” scheme by the end of next month.

Now documents explaining the way the scheme will work have disclosed the severity of the penalties that can be iniposed on those who do not co-operate with officials from the quango that will run it. The scheme, due to begin next April, will require firms and public sector organisations to buy permits for every ton of carbon dioxide they emit. Those that cut their emissions will get their money back with a bonus, while those that do not will have a fine deducted when their payment is returned.

Companies are required to report their energy use and carbon emissions. The data will then be used by the Environment Agency to allocate bonuses and fines. The agency and its equivalents in Scotland and Northern Ireland will run the scheme and enforce rules requiring emissions data to be reported regularly and accurately. “Non-compliance with enforcement” will become a criminal offence. Anyone found to have failed to comply with Environment Agency staff checking on emissions data can be jailed for up to two years and face an unlimited fine. Even failing to attend an interview with administrators investigating emissions data can lead to a jail term.

Documents prepared by the Department of Environment and Climate Change show that offences include “intentionally obstructing the administrator”; failure to provide “assistance, facilitii and information” to inspectors; and failure to appear before the administrator as part of an inspection.

Knowingly providing false information about emissions can lead to a jail sentence of up to three months and a fine of up to £50,000.

Rules hit bakery ‘at worst possible time’

Businessman Glenn Charles feels tne Carbon Reduction Commitment scheme has come at the “worst possible time”. The 38 year-old has steered his family business, the Cherry Tree Hone “iakery, through three years of economic turbulence, and now he feels the Government has added to his financial burden.

Mr Charles, who runs the bakery in Co Fermanagh, Northern Ireland, with his mother and brother, said: “It’s going to be very, very hard to get people into the mindset of doing this when we have enough problems just running the day-to-day business. “It would have been better three or four years ago when things were in their heyday and you could cope with extra expenditure, but there just isn’t the money now. it couldn’t have come at a worse time.”

The company, which employs 22 people, is considering a number of methods to cut its carbon bill – including baking through the night, when energy is cheaper. It also wants to improve its recycling. “Baking through the night would cause all kinds of staff problems, because people don’t want to work completely antisocial hours,” said Mr Charles.

He feels the scheme is asking too much, too soon. “It will be difficult for a small business like ourselves to fulfil all of these orders. “It’s hard enough as it is. I agree on principle with trying reduce carbon but it’s how you go about it,” said Mr Charles.

About 4,000 companies and large public sector bodies are required to sign up for full participation in the scheme by the end of September. Figures released this week showed that fewer than 1,300 have done so. Missing the September deadline could mean a fine of up to £45,000. Business groups criticised the scheme as complex and poorly-publicised.

A survey in June by Externus, an environmental consultancy, found that 53 per cent of executives had not even heard of the scheme and did not know if their firm was affected.

An Environment Agency email urged companies to sign up even if they lacked accurate information on energy use. “We will work with you to resolve any errors in the information you supply,” the agency said.

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The Camfil Ltd Team