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£ million                                                                                       

                        |Amount of gross        |Other associated                               

                        |expenditure provided by|expenditure by                                 

                        |Government             |sponsoring Departments                         

------------------------------------------------------------------------------------------------

1979                    |2,970                  |70                                             

1980                    |3,080                  |72                                             

1981                    |3,860                  |94                                             

1982                    |3,910                  |87                                             

1983                    |5,120                  |94                                             

1984                    |5,160                  |115                                            

1985                    |5,100                  |111                                            

1986                    |5,330                  |116                                            

1987                    |5,690                  |112                                            

1988                    |5,930                  |118                                            

Figures for 1989 will be published in "Public Bodies" later this year.

Mr. Grocott : To ask the Chancellor of the Exchequer whether it is his policy to use the services of executive search and selection agencies to recruit people for quasi-autonomous non-governmental organisations.

Mr. Luce : I have been asked to reply.

The procedures adopted for identifying and selecting candidates for public appointments are the responsibility of the Minister making the appointment. The use by Government of executive search and selection agencies is limited.

Mr. Grocott : To ask the Chancellor of the Exchequer which executive search and selection agencies have been used to recruit people for quasi- autonomous non-governmental organisations.

Mr. Luce : I have been asked to eply.

This information is not held centrally and could be obtained only at disproportionate cost.

Capital Gains Tax

Mr. Anthony Coombs : To ask the Chancellor of the Exchequer what is the revenue yield from capital gains tax for the fiscal year ended April 1989 ; and what it was in the year ended April 1988.


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Mr. Norman Lamont [holding answer 22 May 1989] : Receipts from capital gains tax in the financial years 1987-88 and 1988-89 were respectively £1,379 million and £2,323 million. These figures exclude receipts from capital gains of companies and taxed within corporation tax.

YTS

Mrs. Margaret Ewing : To ask the Chancellor of the Exchequer if he will list the regulations covering tax liability on YTS earnings with regard to partial refunds of travel or lodging costs necessarily incurred in taking part in YTS.

Mr. Norman Lamont [holding answer 23 May 1989] : Payments in respect of costs incurred on travelling and accommodation are only made to YTS trainees who are not employees. These payments are not liable to income tax.

Mrs. Margaret Ewing : To ask the Chancellor of the Exchequer what guidelines have been issued to employers, sponsors and managing agents on the position of young people on YTS in relation to PAYE and NIC.

Mr. Norman Lamont [holding answer 23 May 1989] : No special guidance on the position of young people on YTS who are taken on as employees is needed. Employers apply the same PAYE and NIC rules as for all other employees. However, the YTS allowances are below the tax and NIC thresholds, so that no tax or NIC will be payable if the employee's only income is the basic allowance.

As regards trainees who are not employees, the basic allowance is not taxable. Nor are these trainees taxed on payments to which they are also entitled in respect of travel and accommodation costs. The Training Agency's "Managing Agent's Handbook" advises YTS providers to seek advice from the local tax or DSS office if they propose to make payments over and above the basic allowance.

Charitable Gifts (Tax Relief)

Sir John Stanley : To ask the Chancellor of the Exchequer whether he will amend the give-as-you-earn scheme to enable the tax relief to accrue to the benefit of the donor's designated charity.

Mr. Lawson [holding answer 25 May 1989] : No. Charities already benefit from the tax relief given to employees on their donations under the payroll giving scheme. Every £1 a basic rate taxpayer gives costs him only 75p.

Tax Fraud

Mr. Barry Jones : To ask the Chancellor of the Exchequer if he will publish the number of prosecutions for tax fraud, the total number of people involved and the amount of money involved in Wales ; and if he will make a statement.

Mr. Norman Lamont [holding answer 25 May 1989] : The Inland Revenue keeps aggregate figures for prosecutions in England and Wales. Separate figures for Wales could be provided only at disproportionate cost.


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Tax Statistics

Mr. Nigel Griffiths : To ask the Chancellor of the Exchequer what is the proportion of gross income paid in income tax, national insurance contributions and value added tax by (a) a married man with a non-earning wife and two children and (b) a married man with an earning


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wife and two children at one half, one and a half, two, three, five and 10 times national average earnings in 1989-90 ; and what were the comparable figures in 1978-79.

Mr. Norman Lamont [pursuant to his reply, 12 May 1989, c. 560] : I regret that the original tables contained an error. The amended tables are as follows :


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Married man with earning wife and two children                                                                                                                                      

                     Multiples of average                                                                                                                                           

                     male earnings                                                                                                                                                  

Proportion of gross |1                  |1 1/2              |2                  |3                  |5                  |10                                                         

earnings                                                                                                                                                                            

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1978-79                                                                                                                                                                             

   Income tax                                                                                                                                                                       

   NICs             |6.5                |6.5                |.6.5               |6.5                |5.4                |3.4                |1.7                                    

   VAT              |-11.1              |-                  |3.4                |3.4                |-                  |-                  |-                                      

                                                                                                                                                                                    

1989-90                                                                                                                                                                             

   Income tax       |-10.6              |7.1                |13.1               |16.3               |20.7               |27.0               |33.6                                   

   NICs             |5.4                |7.5                |8.3                |8.4                |6.8                |4.1                |2.0                                    

   VAT              |-                  |5.9                |6.0                |-                  |-                  |-                  |-                                      

Notes:                                                                                                                                                                              

1. Average male earnings in 1989-90 are assumed to be £273.10 per week, 7 1/2 per cent. higher than in 1988-89. This represents a real increase of over 30 per cent. since 1978-79. 

2. Child benefit is treated as a negative income tax.                                                                                                                               

3. Earners, including working wives, are assumed to pay class 1 National Insurance contributions at the contracted in rate. The figures for National Insurance contributions are    

financial year averages.                                                                                                                                                            

4. The two earner couple is assumed to have joint earnings equal to the various multiples of average earnings, split between husband and wife in the ratio 60:40.                   

5. The estimates of VAT are derived from the 1985 family expenditure survey and are based on the illustrative assumption that 10 per cent. of disposable income is saved. Estimates 

cannot reliably be made outside the range of 75 per cent. to 150 per cent. of average male earnings.                                                                                


Married man with earning wife and two children                                                                                                                                      

                     Multiples of average                                                                                                                                           

                     male earnings                                                                                                                                                  

Proportion of gross |1                  |1 1/2              |2                  |3                  |5                  |10                                                         

earnings                                                                                                                                                                            

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1978-79                                                                                                                                                                             

   Income tax                                                                                                                                                                       

   NICs             |6.5                |6.5                |.6.5               |6.5                |5.4                |3.4                |1.7                                    

   VAT              |-11.1              |-                  |3.4                |3.4                |-                  |-                  |-                                      

                                                                                                                                                                                    

1989-90                                                                                                                                                                             

   Income tax       |-10.6              |7.1                |13.1               |16.3               |20.7               |27.0               |33.6                                   

   NICs             |5.4                |7.5                |8.3                |8.4                |6.8                |4.1                |2.0                                    

   VAT              |-                  |5.9                |6.0                |-                  |-                  |-                  |-                                      

Notes:                                                                                                                                                                              

1. Average male earnings in 1989-90 are assumed to be £273.10 per week, 7 1/2 per cent. higher than in 1988-89. This represents a real increase of over 30 per cent. since 1978-79. 

2. Child benefit is treated as a negative income tax.                                                                                                                               

3. Earners, including working wives, are assumed to pay class 1 National Insurance contributions at the contracted in rate. The figures for National Insurance contributions are    

financial year averages.                                                                                                                                                            

4. The two earner couple is assumed to have joint earnings equal to the various multiples of average earnings, split between husband and wife in the ratio 60:40.                   

5. The estimates of VAT are derived from the 1985 family expenditure survey and are based on the illustrative assumption that 10 per cent. of disposable income is saved. Estimates 

cannot reliably be made outside the range of 75 per cent. to 150 per cent. of average male earnings.                                                                                

DEFENCE

Radiation

Mr. George Howarth : To ask the Secretary of State for Defence when he expects to announce new compensation arrangements for British ex- servicemen who have suffered radiation ailments arising from their duties.

Mr. Sainsbury : We have no plans to change the present arrangements.

Trident

Dr. Thomas : To ask the Secretary of State for Defence if he will make a statement on present progress in the development of the new Trident nuclear warhead at the atomic weapons research establishment, Aldermaston.

Mr. Sainsbury : The development of the Trident warhead is progressing satisfactorily towards the Trident submarine in-service date of the mid-1990s.


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Helicopters (Forced Landing)

Mr. Rogers : To ask the Secretary of State for Defence why five British military helicopters were forced to land by the actions of other military aircraft in West Germany on Friday 19 May ; and if he will make a statement.

Mr. Neubert : The aircraft were taking part in a pre-planned training manoeuvre.

Royal Arsenal, Woolwich

Mr. Cartwright : To ask the Secretary of State for Defence if he will make a statement on the progress of the redevelopment of that part of the Royal Arsenal, Woolwich which has been declared surplus to his Department's requirements.

Mr. Neubert : Following the announcement by my hon. Friend the Member for Hove (Mr. Sainsbury) on 9 March 1989 of our intention to relocate the director general of defence quality assurance to Teesside, discussions with the London borough of Greenwich have now been held to consider arrangements for the release of the entire Woolwich Arsenal west site. The Crown estate commissioners, part owners of the site, were also present and a useful exchange of views took place.


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Further meetings are planned to continue this dialogue from which we would expect detailed proposals for the redevelopment of the site to emerge.

F111 Aircraft (Upper Heyford)

Mr. Baldry : To ask the Secretary of State for Defence what information he has concerning the number of (a) engine failures, (b) engine shutdowns and (c) pieces of aircraft falling from planes on F111 aircraft from RAF Upper Heyford in the last five years.

Mr. Neubert : I understand that it is not the practice of the United States Air Force to release this information.

Nuclear Test Veterans

Mr. Ashley : To ask the Secretary of State for Defence, pursuant to his answer to the right hon. Member for Stoke on Trent, South of 23 May, what were the differences in the United States of America and British nuclear test objectives, and in the doses of radiation received by American and British service men, and in the protective measures taken.

Mr. Sainsbury : I have nothing to add to the answer that I gave to the right hon. Member on 23 May at column 464.

Listening Devices

Mr. Cran : To ask the Secretary of State for Defence whether electronic surveillance listening devices are used by his Department or by any organisation or agency acting on its behalf ; and if he will make a statement.

Mr. Neubert : There are many weapons systems and other items of defence equipment in service which use electronic surveillance techniques.

Ministry of Defence Police

Mr. Menzies Campbell : To ask the Secretary of State for Defence if he has any plans to reduce the strength of the Ministry of Defence police force over the next five years ; and if he will make a statement.

Mr. Sainsbury : I have nothing to add to the reply which I gave to the hon. and learned member on 27 February at column 43.

Mr. Menzies Campbell : To ask the Secretary of State for Defence what was (a) the establishment and (b) the strength of the Ministry of Defence police force in each of the last five years for which information is available.

Mr. Sainsbury : The information requested is as follows :


               |Complement|Strength             

------------------------------------------------

September 1984 |4,229     |4,003                

September 1985 |4,563     |4,255                

September 1986 |4,990     |4,681                

December 1987  |5,001     |4,841                

December 1988  |4,962     |4,706                

The details are taken from the chief constable's annual reports, which from 1987 relate to calendar years.

CSCE Talks

Mr. Menzies Campbell : To ask the Secretary of State for Defence if he has commissioned any studies on the minimum strength of forces necessary to defend Western


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Europe in the event that the CSCE talks in Vienna achieve parity between the North Atlantic Treaty Organisation and Warsaw pact forces.

Mr. Neubert : The NATO proposals tabled in Vienna were undepinned by studies which showed that they provided sufficient forces to maintain the forward defence of western Europe. The studies indicated that further significant reductions in tanks, artillery, etc., could have serious implications for NATO's ability to maintain forward defence, as it is currently understood.

Procurement Executive

Mr. Menzies Campbell : To ask the Secretary of State for Defence what action is being taken to eradicate shortages of staff in the procurement executive of his Department ; and if he will make a statement.

Mr. Sainsbury : Management action is already in hand to alleviate the problems identified in the recently published House of Commons Defence Committee report. These measures include the application of new and more flexible long term Civil Service pay agreements, the proposed relocation of a substantial part of the procurement executive to parts of the country where it is easier to recruit and retain staff, and the next steps initiative. The shortages tend to be concentrated in disciplines such as electronics and information technology, and in certain geographical areas especially London and the south-east. To a large extent they are a reflection of shortages from which other major employers suffer in these areas.

Type 23 Frigate

Mr. Menzies Campbell : To ask the Secretary of State for Defence (1) what assessment he has made of the proposals by Ferranti Computer Systems for a command and control system for the type 23 frigate ; and if he will make a statement ;

(2) what consideration he has given to the use of penalty clauses in the contracts for the command and control system for the type 23 frigate ;

(3) what measures he is taking to ensure that production difficulties are minimised in the development and manufacture of the command control system for the type 23 frigate.

Mr. Sainsbury : I refer the hon. and learned Member to the statement that I made to the House during this year's Navy debate on 28 February at columns 166-67.

Mr. Menzies Campbell : To ask the Secretary of State for Defence when he next intends to invite tenders for additional type 23 frigates ; and to which companies he will extend that invitation.

Mr. Sainsbury : I refer the hon. and learned Member to the answer that I gave on 28 April at column 686.

War Service Pensions

Mr. David Howell : To ask the Secretary of State for Defence what is the current policy of Her Majesty's Government in relation to service during the Korean war counting towards war service pensions ; and whether he has any plans to review it.

Mr. Neubert : Pensions awarded under the scheme for the armed forces do not distinguish between war service


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and other periods of service. For those personnel of the armed forces who qualify for an award of pension based on length of service given, any service during the Korean war would count on an equal footing with other periods. There are no plans for a review. Those suffering disability as a result of injury received during the Korean war may, however, be eligible for the award of pension under the war pensions scheme administered by the Department of Social Security, without regard to the length of service given.

Royal Naval Personnel (School Boarding Allowances)

Mr. Brazier : To ask the Secretary of State for Defence how much it would cost to allow seagoing Royal Naval personnel, on shore postings, to claim boarding school allowances, irrespective of the locations of their families.

Mr. Neubert : The total cost of boarding school allowance for Royal Navy personnel is estimated at £24 million for the financial year 1989 -90, based on the number of personnel who have drawn the allowance in the past. No reduction has been assumed for the future since it is expected that the great majority of claimants, including those on shore postings, will comply with the new family mobility conditions.

Royal Naval Officers (Travel)

Mr. Brazier : To ask the Secretary of State for Defence how much it would cost to restore first class travel warrants to Royal Naval officers on the scale prevailing before the 1988 review of allowances.

Mr. Neubert : Since facilities for first class duty travel remain unaltered, it is assumed that my hon. Friend is concerned with first class leave travel. The restoration of this facility to eligible officers of the armed forces as a whole would cost an estimated £820, 000 of which the Royal Navy's share is approximately £165,000.

Who Framed Colin Wallace"

Mr. Livingstone : To ask the Secretary of State for Defence if he will establish an inquiry into the evidence presented in the book entitled "Who Framed Colin Wallace", by Mr. Paul Foot, that members of the Army information services (a) planted hoax bombs, (b) masqueraded as members of paramilitary groups and (c) carried and possessed captured terrorist weapons and explosives.

Mr. Neubert : No.

Mr. Livingstone : To ask the Secretary of State for Defence if he has anything to add to his answer to the hon. Member for Keighley (Mr. Waller), Official Report, column 707, 20 July 1988, in the light of information in the book, "Who Framed Colin Wallace", regarding the address to which the alleged information policy document was delivered.

Mr. Neubert : The answer referred to by the hon. Member stated that a classified document was delivered by Mr. Wallace to the London home of a journalist on The Times. The document was in fact left by Mr. Wallace at the Northern Ireland address of the journalist.


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Exercise Wintex-Cimex

Mr. Redmond : To ask the Secretary of State for Defence what lessons have been learned from the North Atlantic Treaty Organisation exercise, Wintex-Cimex ; how many British service personnel took part and of what ranks ; and if he will make a statement.

Mr. Neubert : Exercise Wintex-Cimex was the tenth in a series of NATO-wide command post exercises conducted by Alliance members. The exercise took place from 24 February to 9 March 1989. Its objective was to test command, control and consultation plans and procedures and to exercise the appropriate crisis management machinery which would be used in the defence of NATO countries in times of international tension or war. This was successfully achieved. Detailed assessment and evaluation of all aspects of the exercise are currently being carried out.

Though it is not our practice to comment in detail on such matters, all the indications are that useful lessons will have been learnt and that considerable value and experience was gained by those taking part. There was widespread military participation from the chiefs of staff downwards, but information on the numbers of British service participants in total or by rank is not available and could be obtained only at disproportionate cost.

Clayton (Overflying)

Mr. Redmond : To ask the Secretary of State for Defence why, on 23 May, there was a continuous day-long succession of military jet aircraft overflying the village of Clayton in the constituency of Don Valley ; and if he will make a statement.

Mr. Neubert : The amount of flying activity in particular areas is influenced by several factors, some of which are unpredictable. These include the weather, the location of major exercises and the availability of range and other facilities. On this occasion however, there is no indication that there was an unusual level of activity in the relevant area. As far as low flying is concerned, the aim remains to spread the training as widely and evenly as possible throughout the entire country to ensure that, as far as practicable, no area receives an undue share.

Army Quarters, Hampshire

Mr. Colvin : To ask the Secretary of State for Defence how many dwellings in Hampshire owned by his Department for use as army quarters have been offered for sale ; and, of these, how many have been sold.

Mr Neubert : A total of 105 Army married quarters in Hampshire were offered for sale in the financial year 1987-88 and two in 1988-89. All have now been sold. Since 1 April 1989 one further Army married quarter has been offered for sale.

Mr. Colvin : To ask the Secretary of State for Defence how many dwellings owned by his Department for use as army quarters are currently unoccupied and surplus to requirements (a) in Hampshire and (b) in the Romsey and Waterside constituency.

Mr. Neubert : (a) In Hampshire, as at 31 March 1989, the latest date for which figures are available, out of a total stock of 4,622 Army married quarters 620 were


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unoccupied, of which 154 have been identified as surplus to requirements. These figures exclude the Tidworth estates, where the county boundary runs through the camp and a split by county is not readily available.

(b) In the Romsey and Waterside constituency, as at 31 March 1989, out of a total stock of 349 Army married quarters 77 were unoccupied, of which 10 had been identified as surplus to requirements.

Plessey plc

Mr. Thorne : To ask the Secretary of State for Defence how he proposes to ensure continued effective competition among defence suppliers in the event that, following the proposed acquisition of the Plessey company by GEC/Siemens, these Plessey business areas become wholly-owned subsidiaries of the German company, Siemens.

Mr. Sainsbury : The MOD's procurement policy will continue to be based on the maximum possible use of competition, involving not only the companies that would result from a merger if it took place, but other defence suppliers. Where the Monopolies and Mergers Commission report has identified specific adverse effects resulting from the proposed merger, it has recommended undertakings to secure a remedy. These are currently under negotiation.

Mr. Thorne : To ask the Secretary of State for Defence what measures are being sought to satisfy United Kingdom national security requirements in the event that, following the acquisition of Plessey by GEC and Siemens, Plessey radar and Plessey defence systems become wholly-owned subsidiaries of the German company, Siemens.

Mr. Sainsbury : The Ministry of Defence gave evidence to the Monopolies and Mergers Commission inquiry on the security issues raised by the proposed merger. The MMC recognised the MOD's concerns in their recommendation that national security undertakings as to the ownership and management of certain activities had to be secured to remedy the adverse effect of the merger. My right hon. and noble Friend the Secretary of State for Trade and Industry placed responsibility on the MOD to secure these undertakings. Negotiations are proceeding, and it would be inappropriate to comment further at this stage.

Mr. Thorne : To ask the Secretary of State for Defence what steps he is taking, in view of the highly integrated nature of Plessey's research facilities, to ensure that GEC does not exercise influence over Plessey's radar and defence systems businesses in the event that they succeed in acquiring the Plessey company.

Mr. Sainsbury : The Monopolies and Mergers Commission report recommended, inter alia, that GEC should undertake not to acquire any interest in or influence or control over the management of the Plessey radar and defence systems businesses. The Office of Fair Trading is currently negotiating to this end, consulting the Ministry of Defence as necessary.


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Belize

Mr. Livsey : To ask the Secretary of State for Defence what benefit in training British forces obtain from being stationed in Belize ; and what is his assessment of their value.

Mr. Archie Hamilton : The commitment to Belize provides an opportunity for units and equipment to be tested in a demanding environment. Advantage is taken of the possibilities for jungle and adventure training, and field firing practice, whenever possible. Training is conducted jointly by ground, air and naval forces, and with the Belize defence force. These facilities are a valuable by-product of the Belize commitment.

Mr. Livsey : To ask the Secretary of State for Defence whether he has any plans to make changes in the commitment of British forces to Belize.

Mr. Archie Hamilton : British forces are in Belize at the request of the Belize Government, and will remain for an appropriate period to assist with that country's external defence and the training of the Belize defence force. This remains the basis of the Belize commitment.

Headquarter Contracts

Mr. Nellist : To ask the Secretary of State for Defence if he will outline the reasons for the sevenfold increase in the level of payments for headquarter contracts awarded by his Department to British Telecommunications plc in the two years to 31 March 1988.

Mr. Sainsbury [holding answer 17 May 1989] : There has not been the significant increase in the actual level of payments to British Telecommunications plc which the answers to the hon. Member's previous questions might imply.

During the period covered by the replies, changes were introduced into Departmental accounting arrangements which brought more payments to British Telecommunications plc into the ambit of the headquarters payment process. On a comparable basis payments in 1985-86 would have been some £50 million.

Nuclear Waste

Mr. John Evans : To ask the Secretary of State for the Environment, regarding storage of radioactive waste for which there is presently no disposal site available, whether the nuclear installations inspectorate is required to licence storage sites operated by the Ministry of Defence or by sub-contractors to the Ministry of Defence.

Mr. Sainsbury [holding answer 25 May 1989] : I have been asked to reply.

A site owned and operated by the Ministry of Defence requires no licensing (although, as in all these matters, Ministers are able to give assurances that such a site would be constructed and operated under conditions no less stringent than those imposed on licensed sites). If a site is operated by contractors to MoD, whether or not it is owned by MoD, licensing is required.


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PRIME MINISTER

Overseas Aid

Q13. Mr. Tom Clarke : To ask the Prime Minister when Her Majesty's Government expect to achieve the United Nations target of 0.7 per cent. gross national product for overseas aid.

The Prime Minister : The Government accept this target in principle but like previous Administrations and many other donors are not able to set a date for achieving it. Progress towards it must depend upon developments in the economy and other claims on our resources. The aid programme is now growing in real terms and its quality is high.

Single European Act

Q55. Mr. Teddy Taylor : To ask the Prime Minister if she will present proposals to the Madrid European Council about the volume and nature of the directives stemming from the Single European Act.

The Prime Minister : I have no plans to do so, but I do expect the European Council in Madrid to review progress on completion of the single market.


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