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THE ARTS
Social Trends 19"
49. Mr. Colvin : To ask the Minister for the Arts if he will make a statement on the arts content of the recently published "Social Trends 19".
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Mr. Luce : I welcome the evidence of growth in public interest in and total expenditure on the arts. This is clearly shown by the Social Trends publication.
National Maritime Museum
50. Mr. Couchman : To ask the Minister for the Arts what have been the attendances at the national maritime museum since charging was introduced.
Mr. Luce : Admission charges were introduced at the national maritime museum on 2 April 1984. Attendances in 1988, at over 700,000, exceeded substantially the estimated level of attendances in 1983, the year before the introduction of admission charges, and represented an increase of 60 per cent. over 1987.
Area Museums Councils
51. Mr. Jacques Arnold : To ask the Minister for the Arts whether he will encourage the further establishment of area museums councils.
Mr. Luce : I welcome the work of the area museums councils as regional centres of expertise and initiative in museums matters. I have seen much of their work at first hand. I recently had the pleasure of opening the new headquarters of the north of England museums service in Newcastle. I understand from the Museums and Galleries Commission that discussions are at present taking place about the feasibility of establishing an area museums service for Northern Ireland.
British Theatre Association
52. Mr. Tony Banks : To ask the Minister for the Arts what plans he has to provide adequate funding to make the British Theatre Association library available for theatrical research.
63. Mr. Vaz : To ask the Minister for the Arts what plans he has to provide adequate funding to make the British Theatre Association library available for loans to repertory theatres.
56. Mr. Andrew Smith : To ask the Minister for the Arts what plans he has to provide adequate funding to make the British Theatre Association library available for academic research.
58. Mrs. Clwyd : To ask the Minister for the Arts what representations he has received on where the library of the British Theatre Association will be moved after closure.
Mr. Luce : I refer the hon Members to the answer I gave to the hon. Member for Lewisham, Deptford (Ms. Ruddock) earlier today.
54. Mr. Sedgemore : To ask the Minister for the Arts what has been the size of the British Theatre Association library's acquisition budget in each of the past five years.
Mr. Luce : I am advised by the BTA that its acquisition budget if the past five years has been as follows :
|£
--------------------
1983-84 |3,337
1984-85 |4,297
1985-86 |3,961
1986-87 |7,595
1987-88 |8,641
55. Mr. Boyes : To ask the Minister for the Arts what information he has on the photographic collection of the British Theatre Association library.
Mr. Luce : I am advised by the BTA that it does not set out to maintain a comprehensive collection but does hold several thousand photographs covering west end productions and foreign productions, dating from the 1920s.
57. Mr. Allen : To ask the Minister for the Arts what information he has as to how many loans of texts were made by the British Theatre Association library in each of the past five years.
Mr. Luce : I am advised by the BTA that it lends both sets of texts and single texts ; a set can be up to 12 volumes. The figures for the past five years are as follows :
--------------------------------------------------------------------------------
61. Mr. Battle : To ask the Minister for the Arts what information he has as to how many first editions of theatrical texts are owned by the British Theatre Association library.
Mr. Luce : I am advised by the British Theatre Association that approximately two thirds of the stock (that is, close to 200,000 volumes) consists of first editions. This includes sets of plays (multiple copies of a single title) which are first editions.
62. Mr. Haynes : To ask the Minister for the Arts what information he has as to how many (a) individuals, (b) professional theatres and (c) others are members of the British Theatre Association library.
Mr. Luce : I am advised by the British Theatre Association that the total membership is 2,150, divided thus :
|Per cent.
------------------------------------------------------------------------
Individuals active in professional theatre |30
Other individuals |10
Professional bodies |11.5
Amateur theatre groups and educational institutions |48
The percentages are approximate.
The British Theatre Association estimates that the individuals and groups represent some 200,000 people.
64. Dr. Marek : To ask the Minister for the Arts when the collection of the British Theatre Association was last valued.
Mr. Luce : I am advised that the British Theatre Association has never valued the collection, in view of the prohibitive costs of such a valuation.
Arts Provision (Midlands)
53. Mr. Greg Knight : To ask the Minister for the Arts when he will next make an official visit to Derby to discuss the provision of arts in the midlands.
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Mr. Luce : I hope to visit Derby before too long.
Museum of the Moving Image
59. Mr. Robert G. Hughes : To ask the Minister for the Arts what are the figures for attendances at the museum of the moving image on the south bank.
Mr. Luce : Since it opened in mid-September 1988, the museum of the moving image has attracted over 190,000 visitors.
Business Sponsorship
60. Mr. Tredinnick : To ask the Minister for the Arts what proportion of business sponsorship of the arts is spent outside London and the south-east.
Mr. Luce : Figures for the total level of business sponsorship outside London and the south-east are not available. However, under the business sponsorship incentive scheme, which matches new sponsorship, 70 per cent. of awards have gone to arts organisations based outside London.
Museums Training Institute
65. Mr. Burns : To ask the Minister for the Arts what benefits will flow from the establishment of the museums training institute.
Mr. Luce : The museums training institute will be responsible for forming a view on the museum industry's training needs, identifying standards for the occupations in the industry, reviewing the content and delivery of training, promoting the provision of training, providing training in selected areas and validating training courses.
Since publication of the Museums and Galleries Commission working party report on museums training and career structure in July 1987, there has been considerable progress made in the development of museum training. The analysis of key skills and competences, which I announced in my statement of 17 March 1988, has laid a firm foundation for constructive progress. I anticipate that the museums training institute will develop these initiatives further, improving the quality and availability of training in the museum industry.
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Arts Organisations (Assistance)
Mr. Maclennan : To ask the Minister for the Arts what steps he is taking to encourage greater assistance to arts organisations in rural and deprived areas through the business sponsorship investment programme ; and if he will make a statement.
Mr. Luce : Seventy per cent. of awards under the business sponsorship incentive scheme go to arts organisations outside London ; rural areas such as the Borders and Outer Hebrides feature in the scheme as well as inner cities. In 1987-88, Scotland was the second most successful region under the scheme, attracting £345,938 of new sponsorship which was matched by £194,185 of Government money.
NATIONAL FINANCE
Relocation
73. Mr. Butler : To ask the Chancellor of the Exchequer if he will make a statement on the progress of Civil Service relocation.
Mr. Brooke : I refer my hon. Friend to the answer that I gave on 16 January at column 75, to the hon. Member for Berwick-upon-Tweed (Mr. Beith).
Privatisations
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer if he will list the organisations, industries and firms privatised since May 1979, giving in each case the income to Government from the sale of each, the costs of broking, underwriting and advertising of each sale, the initial share price, the present share price, and the size and current value of shareholding retained by the Government, together with the nature of any golden share or any other arrangement to restrict takeover or shareholdings in any way.
Mr Norman Lamont : The information required about income to Government, share prices and size of residual shareholdings is as follows :
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|Date of sale |Proceeds to Her Majesty's|Initial share price |Share price on 25 January|Size of Her Majesty's |Current value
|Government |1989 |Government share holding
|£ million |million |£ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Amersham International |1982 |64 |142 |514 |- |-
Associated British Ports |1983 |46 |112 |483 |- |-
Associated British Ports |1984 |51 |250 |- |- |-
British Aerospace |1981 |43 |150 |486 |- |-
British Aerospace |1985 |347 |375 |- |- |-
British Telecom |1984 |3,685 |130 |268 |2,941 |7,882.0
Britoil |1982 |627 |215 |- |- |-
Britoil |1985 |426 |185 |- |- |-
Cable and Wireless |1981 |181 |168 |397 |- |-
Cable and Wireless |1983 |263 |275 |- |- |-
Cable and Wireless |1985 |577 |587 |- |- |-
National Freight Consortium |1982 |6 |- |- |- |-
Enterprise Oil |1984 |384 |185 |514 |- |-
British Gas |1986 |5,123 |135 |171" |136 |233.0
British Gas Debt |<3>3,011 |- |- |- |-
British Airways |1987 |854 |125 |176 |10 |17.5
Rolls Royce |1987 |1,028 |170 |151" |- |-
BAA |1987 |1,218 |245 |276 |22 |60.0
PBI |1987 |66 |- |- |- |-
Royal Ordnance |1987 |185 |- |- |- |-
Rover Group |1988 |150 |- |- |- |-
British Petroleum |1979 |276 |363 |- |- |-
British Petroleum |1983 |543 |435 |- |- |-
British Petroleum |1987 |<3>5,310 |<1>330 |<1>267 |<1>67.7 |181.0
|<2>225 |<2>164 |<2>38" |63.0
British Steel |1988 |1,139 |<1>125 |- |- |-
|<2>60 |<2>69 |- |-
<1> Fully paid.
<2> Partly paid.
<3> Total estimated net proceeds.
Proceeds from the following subsidiaries are retained by parent
industry
|Proceeds £ million |Initial share price |Share price on 25 January
|1989
----------------------------------------------------------------------------------------------------------------------------------
Jaguar (BL) |297 |165 |278
Sealink (BR) |66 |- |-
Wytch Farm (BGC) 82 -
Warship yards (BS) 54 -
For information about advertising costs, I refer the hon. Member to the reply that I gave to my hon. Friend the Member for Darlington (Mr. Fallon) on 3 March 1988, at column 629 . For the costs to Government of broking and underwriting I refer the hon. Gentleman to the reply which I gave today to the hon. Member for Eccles (Miss Lestor).
For information about special shares held by the Government in privatised industries, I refer the hon. Gentlemen to the reply which I gave the hon. Member for Dunfermline, East (Mr. Brown) on 15 December 1987 at
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column 427 which lists special shares held in companies privatised prior to the British Steel sale. The special share in Amersham International was redeemed on 27 July 1988 and the special share in Enterprise Oil was redeemed on 31 December 1988. There is also a special share in British Steel, the rights of which are defined in the company's articles of association.Wines and Spirits (Duties)
Mr. Gregory : To ask the Chancellor of the Exchequer what information he has on the current price of wines and spirits in the European Economic Community and the levels of duty imposed on them ; and what equivalent information he has for the United Kingdom.
Mr. Lilley : Information on prices of wines and spirits in the European Community member states is not readily available. Rates of excise duties and VAT in each of the member states, according to the latest information available, are set out in the table :
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--------------------------------------------------------------------------------- Belgium |16 |28 |25 |247 |25 Denmark |74 |129 |22 |<1>854 |22 France |1 |78 |18.6 |210 |18.6 Germany |0 |22 |14 |233 |14 Greece |0 |1 |36 |7 |36 Ireland |125 |169 |25 |492 |25 Italy |0 |6 |19 |43 |19 Luxembourg |<2>0, 7 |<3>13, 19 |<4>6, 12 |166 |12 Netherlands |17 |29 |18.5 |258 |18.5 Portugal |0 |0 |<5>8, 17 |39 |<6>17, 30 Spain |0 |0 |12 |81 |12 United Kingdom |77 |124 |15 |473 |15 <1> Duty on spirits in Denmark consists of a specific element (£11.22 per litre of pure alcohol) and an ad valorem element (60 per cent. of taxable value). <2> The nil rate applies to Luxembourg produced wines. <3> The lower rate applies to Luxembourg produced wines. <4> The lower rate applies to still wine not exceeding 13 per cent. alcohol by volume. <5> The lower rate applies to table wine. <6> The lower rate applies to non-aged wine brandy and grappa brandy. Note: Rates of exchange as at 30 January 1989. Source: European Community excise duty tables; VAT In Europe.
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National Savings
Mr. Andrew Bowden : To ask the Chancellor of the Exchequer if he will estimate the reduction in administrative costs which will result from the introduction of a minimum £5 sum for deposits in national savings ordinary accounts.
Mr. Lilley : The estimated reduction in staff working on ordinary account at the National Savings Bank is 60 full-time staff. The reduction in running costs there is around £500,000 a year. There will also be savings in Post Office agency charges.
Mr. Andrew Bowden : To ask the Chancellor of the Exchequer if he will estimate the total reduction in moneys deposited in national savings ordinary accounts which may result from the introduction of a minimum £5 deposit.
Mr. Lilley : In 1987-88 some £10 million was deposited in the ordinary account in amounts under £5. It is not possible to forecast to what extent the new minimum will lead to people accumulating sums to deposit and to what extent they will refrain from depositing such amounts in their ordinary accounts.
Local Pay Additions
Mr. Galbraith : To ask the Chancellor of the Exchequer if he has any plans to pay local pay additions to higher executive officers and senior executive officers in London.
Mr. Brooke : Departments formulate their own plans for local pay additions, in accordance with guidelines set by the Treasury, and submit proposals to the Treasury for approval. The guidelines do not exclude payments to higher executive officers and senior executive officers. A total of 572 HEOs in the London weighting area, but no SEOs, are currently in receipt of LPAs.
Pay Agreement
Mr. Galbraith : To ask the Chancellor of the Exchequer what progress has been made on a long-term pay agreement with the NUCPS ; and if he will make a statement.
Mr. Brooke : Discussions on new longer term flexible pay arrangements for the grades NUCPS represent are continuing between the union and the Treasury.
Industrial Investment
Mr. Butterfill : To ask the Chancellor of the Exchequer what was the volume of private sector investment in British industry for the last year for which figures are available, excluding leased assets ; what were the comparable figures for the previous 12 month period ; and if he will express both figures as a percentage of gross domestic product.
Mr. Major : The information requested is as follows :
Industrial
investment<1>
|£ million at 1985 prices |as a percentage of GDP<2>
--------------------------------------------------------------------------------------------------------
1986 Q4-1987 Q3 |26,357 |8.1
1987 Q4-1988 Q3 |30,457 |9.0
<1> Investment in the manufacturing, construction, distribution and financial industries.
<2> The average measure of GDP at factor cost.
Sources:
DTI capital expenditure press notice (15 December 1988).
CSO gross domestic product press notice (19 December 1988).
Manufacturing Output
Mr. Butterfill : To ask the Chancellor of the Exchequer what is the current rate of manufacturing output in the United Kingdom for the last year for which figures are available ; what were the comparable figures in the previous 12 month period ; and if he will make a statement.
Mr. Major : Manufacturing output in the three months up to November 1988 was 7.2 per cent. higher than in the same period a year earlier. The comparable figure for the previous 12 months was 5.8 per cent. Manufacturing output reached its highest ever level during 1988. Over the last five years its annual growth rate has averaged 4 per cent. This is in stark contrast to the economy's performance between 1974 and 1979 when it fell on average by per cent. a year.
Correspondence
Mr. Mudd : To ask the Chancellor of the Exchequer when the hon. Member for Falmouth and Camborne may expect a reply to his letter of 11 October 1988 on behalf of Mrs. Lily Grose, of Chyvean, 31 Pennance road, Falmouth, Cornwall.
Mr. Lilley : I replied to the hon. Member's letter on 1 February.
VAT
Mr. Yeo : To ask the Chancellor of the Exchequer if he will make a further statement about implementation of the judgment of the European Court of Justice on 21 June 1988, respecting certain of the United Kingdom's value added tax zero rates.
Mr. Lilley : I told the House on 21 June 1988 at column 957-58 that the Government would propose legislation to implement the judgment of the European Court of Justice affecting certain of the United Kingdom's VAT zero rates. As I also promised at that time, there has been an extensive consultation. The Government are very grateful to the many organisations and individuals who have responded. Some matters are still under discussion, but I am now able to announce decisions on most features of the implementing legislation which the Government will be proposing to the House as part of this year's Budget and Finance Bill. I am taking this unusual step in order to allow the maximum feasible time for technical consideration of the clauses and preparation on the part of those traders who will have to operate them, in many cases from 1 April 1989.
As I made clear in my statement to the House on 21 June, this adverse judgment is based on an interpretation of existing Community law to which the United Kingdom gave its assent in 1977. We are obliged to comply with it. This means applying VAT to a number of goods and services at present excluded. Our aim has been to implement the ruling in a way which, while respecting the terms of the judgment, minimises the burgen of tax and compliance. The Government have in large measure been
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able to meet the legitimate demands of the construction and property industries, by introducing the option to tax rents and devising suitable transitional arrangements, consistently with the obligation to implement the judgment promptly. And we have had particular regard to the potential impact on charities. I regret that they cannot be wholly shielded because many of them have activities which constitute "business" for VAT purposes and therefore come within the ambit of the judgment. But we have done as much as we can to safeguard their position.I am including several minor changes from the current provisions for construction and property in zero rate group 8 and exempt group 1 which do not flow directly from the European Court judgment. These have been inserted to rectify weaknesses in the law which have become apparent in recent years, often as a result of litigation. These changes are marked with an asterisk in the explanatory notes to the draft clauses.
The provisional draft clauses with explanatory notes on their effect are contained in Customs and Excise documents which I am placing in the Library of the House.
On non-domestic construction, most of the changes that I announced on 21 June are confirmed in the draft legislation but I am glad to say that as well as retaining zero rating for new housing it will also be retained for most new communal residential accommodation such as old people's homes, hospices and boarding accommodation at boarding schools. It will also be retained for new churches and other buildings for non-business use by charities. It has not been possible to retain zero rating for premises used for business, including private hospitals and fee paying schools, which the judgment explicitly ruled were too remote from the final consumer. The change to standard rating for buildings which cease to qualify for zero rating comes into effect from 1 April 1989, although there will be some transitional relief. As I announced last June, this will preserve zero rating for agreements entered into, in writing and for a price, before 21 June 1988. Additionally, it will allow some relief for supplies made before 21 June 1993 in connection with developments that are the subject of a binding legal obligation as a result of an agreement entered into before 21 June 1988 between a developer and a landowner or planning authority.
The option to tax rents, which comes into effect on 1 August 1989, is being extended to agricultural land. Building land will not be taxed, except in defined cases where this is necessary to ensure fair competition.
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I am now able to announce decisions on the other groups affected by the judgment.The fuel and power changes will be effective on 1 July 1990. Zero rates will continue for domestic consumers, and for charities for non-business purposes. Domestic use will include not only private dwellings, caravans, houseboats and self catering holiday accommodation but also communal residential homes, hospices, school and student boarding accommodation but not private schools and fee paying hospitals.
The water and sewerage services changes will be effective on 1 July 1990. All supplies of services of emptying cesspools, septic tanks etc to industrial users for use in connection with the carrying on of a business will be standard-rated. Similarly so will all supplies of water to industry. Industry means any activity described in divisions 1 to 5 of the standard industrial classification. All other supplies will be zero rated.
News services changes will be effective on 1 April 1989. The zero rating will be repealed, and the standard rate thus applied to all news services. This includes supplies to newspapers and individual members of the public (but the Court ruling did not extend to newspapers themselves).
Protective boots and helmets supplied to employers will become standard rated from 1 April 1989.
The estimated yield from the private sector of the proposals contained in the draft clauses will be some £55 million in 1989-90, rising to about £165 million by 1992-93. This includes some £110 million from application of the Court ruling to non-domestic construction. Without the measures to mitigate the impact, the yield from construction would have been £450 million.
Civil Service Trade Unions
Mr. Wells : To ask the Chancellor of the Exchequer if he will give the latest estimates for the numbers of elected representatives of Civil Service trade unions in each of the main Government Departments and of the cost of providing paid time off.
Mr. Brooke : The details for 1987-88 are shown in the following tables. Compared with the position as at 31 March 1987, the total amount of paid time off for union business shows a reduction of 75 man years (6.7 per cent.), with a consequential saving (in real terms) of £0.47 million. This reflects, for the sixth successive year, the tighter control and accountability measures introduced by the revised national facilities agreement in 1982.
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Table 2
Costs of non-industrial union elected representatives
Department |Total number expressed as|Cost in salaries wages |Costs as percentage of |Total number of
|whole time equivalent |and direct benefit (£ |wage bill |non-industrial staff at
|million) |31 March 1988
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Ministry of Agriculture, Fisheries and Food |19 |0.27 |0.186 |9,751
Customs and Excise |72 |1.01 |0.281 |26,564
Ministry of Defence |93 |1.08 |0.085 |88,626
Department of Employment Group |93 |1.26 |0.186 |62,575
Department of Environment/Transport (exc
PSA) |41 |0.56 |0.198 |20,118
Foreign and Commonwealth Office (inc
Overseas Development Administration) |11 |0.15 |0.110 |9,378
DHSS |301 |3.31 |0.310 |101,185
Home Office (including Prison Department) |96 |1.28 |0.229 |37,641
Department of Trade and Industry |28 |0.43 |0.230 |12,525
Inland Revenue |118 |1.58 |0.185 |66,592
Lord Chancellor's Department |15 |0.25 |0.250 |10,281
Department for National Savings |23 |0.23 |0.325 |7,306
PSA (including Crown Suppliers) |22 |0.31 |0.157 |15,665
Scottish Office (including General
Register Office Scotland, Scottish Record Office and
Scottish Prison Service |20 |0.24 |0.150 |9,514
Other Government Departments |92 |1.12 |0.213 |38,798
|--- |--- |--- |----
Total |1,044 |13.08 |0.199 |516,519
Table 2
Costs of non-industrial union elected representatives
Department |Total number expressed as|Cost in salaries wages |Costs as percentage of |Total number of
|whole time equivalent |and direct benefit (£ |wage bill |non-industrial staff at
|million) |31 March 1988
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Ministry of Agriculture, Fisheries and Food |19 |0.27 |0.186 |9,751
Customs and Excise |72 |1.01 |0.281 |26,564
Ministry of Defence |93 |1.08 |0.085 |88,626
Department of Employment Group |93 |1.26 |0.186 |62,575
Department of Environment/Transport (exc
PSA) |41 |0.56 |0.198 |20,118
Foreign and Commonwealth Office (inc
Overseas Development Administration) |11 |0.15 |0.110 |9,378
DHSS |301 |3.31 |0.310 |101,185
Home Office (including Prison Department) |96 |1.28 |0.229 |37,641
Department of Trade and Industry |28 |0.43 |0.230 |12,525
Inland Revenue |118 |1.58 |0.185 |66,592
Lord Chancellor's Department |15 |0.25 |0.250 |10,281
Department for National Savings |23 |0.23 |0.325 |7,306
PSA (including Crown Suppliers) |22 |0.31 |0.157 |15,665
Scottish Office (including General
Register Office Scotland, Scottish Record Office and
Scottish Prison Service |20 |0.24 |0.150 |9,514
Other Government Departments |92 |1.12 |0.213 |38,798
|--- |--- |--- |----
Total |1,044 |13.08 |0.199 |516,519
Mortgage Tax Relief
Mr. Soley : To ask the Chancellor of the Exchequer what the cost would be of increasing mortgage income tax relief from its present level of £30,000 to (a) £35,000 and (b) £40,000 ; and how much would go to those earning over £20,000 per annum.
Mr. Norman Lamont [holding answer 2 February 1989] : The direct revenue cost, at 1988-89 levels, of increases in the ceiling of mortgage interest relief are given in the table. These estimates make no allowance for any consequential changes to the distribution of outstanding mortgages.
Ceiling |Cost |Cost attributable to tax
|units with earned income
|over £20,000 in 1988-89
£ |£ milion |£ million
----------------------------------------------------------------------------------------------------
35,000 |230 |100
40,000 |390 |180
Mr. McCrindle : To ask the Chancellor of the Exchequer when the mortgage tax relief limit was raised to £30,000 ; what the additional annual cost to the Exchequer would be if it was raised to £35,000 and £40,000 respectively ; and if he will make a statement.
Mr. Norman Lamont [holding answer 31 January 1989] : The ceiling for mortgage interest relief was raised
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to £30,000 in 1983-84. The direct revenue cost, at 1988-89 levels, of increases in the ceiling of mortgage interest relief are given in the table. These estimates make no allowance for any consequential changes to the distribution of outstanding mortgages.Ceiling |Cost £ |£ million ------------------------------ 35,000 |230 40,000 |390
Inflation
Sir John Stanley : To ask the Chancellor of the Exchequer if he will publish a table showing for each of the last complete financial years (a) the forecast rate of general inflation as measured by the gross domestic product deflator in the Autumn Statement published immediately prior to each financial year and (b) the actual rate of inflation in each financial year as measured by the gross domestic product deflator and (c) the actual rate of inflation in each financial year as measured by the retail price index.
Mr. Lawson [holding answer 31 January 1989] : The information requested by my right hon. Friend is shown in the table :
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Percentage change on a year earlier
Gross domestic product Retail price index
at market prices
For the year |Autumn Statement|Outturn<2> |<3>
|forecast<1>
-------------------------------------------------------------------------------------
1983-84 |5 |4.6 |4.7
1984-85 |5 |5.0 |5.1
1985-86 |4" |5.5 |5.9
1986-87 |4" |3.4 |3.2
1987-88 |33/4 |5.2 |4.0
<1> Forecast in the Autumn Statement published immediately prior to the coming
financial year.
<2> Latest outturn data.
<3> Change in the average value of the retail price index on the preceding financial
year.
Company Cars
Mr. David Shaw : To ask the Chancellor of the Exchequer (1) what is his latest estimate of the proportion of the benefit to an individual taxpayer of company car capital, running and maintenace costs which are taxed under present arrangements ; and how much additional tax revenue would be received by the Government if that proportion were increased to 100 per cent. of such costs ;
(2) what is the amount of additional tax revenue that would be raised by charging employees' and employers' national insurance contributions on the full benefit obtained by individual taxpayers from company cars.
Mr. Norman Lamont [holding answer 23 January 1989] : The benefit of company cars provided to directors and higher paid employees is taxed by reference to a set of scale charges. The results of independent studies are consistent with the Government's view that the value to typical employees of being able to use their company cars privately exceeds the present scale charges. But the value to any particular employee depends on a wide range of factors. It is not possible, therefore, to provide an estimate of the aggregate extent to which the private use of company cars is undertaxed, nor of the additional revenue which would arise if the full value to the employee was used in computing income tax or national insurance contributions.
Private Schools
Mr. McLeish : To ask the Chancellor of the Exchequer how many private schools in Scotland benefit from financial concessions as a result of having charitable status ; and if he will estimate the loss of Exchequer revenue as a result of such concessions for the most recent year for which information is available.
Mr. Norman Lamont [holding answer 23 January 1989] : Comprehensive information in the form requested is not available. Inland Revenue records of bodies in Scotland which are eligible for income tax relief identify 75 schools with charitable status. This includes some special schools for handicapped children or for pupils with behavioural problems.
Company Privatisation
Miss Lestor : To ask the Chancellor of the Exchequer what have been the costs of privatisation of companies, both by private sale and public flotation, for each company privatised since 1979, and for each year since
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1979, including separate figures for (a) underwriting, selling and broking, (b) commission, (c) bank costs, (d) marketing, (e) fees to advisers, (f) bonus shares, (g) bill vouchers and (h) any other costs.Mr. Norman Lamont [ holding answer 19 January 1989] : The total costs to the Government of each privatisation since 1979 are in the table. Estimated costs of underwriting, selling, and broking commission, receiving bank costs, marketing, advisers' fees and incentives in respect of all primary share sales from British Telecom onwards are given in the following reports presented to the House by the Comptroller and Auditor General :
Session 1984-85
Department of Trade and Industry : Sale of Government Shareholdings in British Telecommunications plc HC 495
Session 1987-88
Department of Energy : Sale of Government Shareholding in British Gas plc HC 22
Department of Transport : Sale of Government Shareholding in British Airways plc HC 37
Department of Trade and Industry : Sale of Government Shareholding in Rolls -Royce plc HC 243
Department of Transport : Sale of Government Shareholding in BAA plc HC 312
Figures given in the reports for customer bill vouchers and bonus shares relate to the maximum value assuming all incentives will be taken up by shareholders. Final figures will depend on the number of eligible shareholders at the end of the qualifying periods. The value of bonus shares distributed for Britoil in 1986 was £3 million. For residual share sales, and for primary share sales prior to British Telecom, the information requested is available only at disproportionate cost. The Department of Trade and Industry expects to able to report the costs of the British Steel flotation shortly.
Table A Total costs of sale to Her Majesty's Government including VAT, excluding incentives Company name |Year |£ thousands -------------------------------------------------------------------------- British Aerospace |1981 |5,600 Cable and Wireless |1981 |8,900 Amersham International |1982 |2,900 Britoil |1982 |12,600 National Freight Corporation |1982 |300 Associated British Ports |1983 |2,600 British Petroleum |1983 |22,760 Cable and Wireless |1983 |12,500 Associated British Ports |1984 |1,400 Enterprise Oil |1984 |10,700 Jaguar |1984 |<1>n/a Sealink |1984 |100 Wytch Farm |1984 |98 British Telecom |1984 |183,000 British Aerospace |1985 |17,800 Britoil |1985 |23,300 Cable and Wireless |1985 |21,400 British Gas |1986 |<2>175,000 British Shipbuilding warship yards |1986 |55,500 British Airways |1987 |33,900 Rolls Royce |1987 |<3>41,600 Plant Breeding Institute |1987 |<4>822 Royal Ordnance |1987 |<5>1,900 BAA |1987 |45,200 Rover Group |1987 |1,800 British Petroleum |1987 |<6>48,299 <1> The sale of Jaguar plc was conducted by BL plc and details of the appointments and the total cost are a matter for the company. Only one firm was appointed to advise the Government; it is not the practice to disclose fees paid to individual firms. <2> Excluding Stamp Duty. <3> Expenditure incurred to date, excluding subscription for new shares. <4> Exluding VAT. <5> Expenditure incurred after 1 January 1985. <6> Expenditure incurred to date.
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