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Mr. Lilley : The forecast yield of corporation tax in 1989-90 is £22.4 billion of which advance corporation tax is £6.8 billion. A forecast for 1990-91 will be published in the next Financial Statement and Budget Report.

Mainstream corporation tax collected in 1988-89 was 19 per cent. of the gross trading profit in 1987. Advance corporation tax collected in 1988-89 was 32 per cent. of the amount of dividends paid out in 1988.

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report his estimate of the yield to the Revenue from an increase in the rate of (a) corporation tax and (b) advance corporation tax to 50 per cent. in the current financial year, and his forecast for next year.

Mr. Lilley : The yield in a full year from increasing the main rate of corporation tax to 50 per cent. would be about £11 billion at 1988 levels of company profits and dividends. The additional yield from increasing the advance corporation tax and small companies rate to 50 per cent. would be about £2 billion. These estimates take no account of possible behavioural effects following such a change.

Graduate Tax

Mr. Harry Greenway : To ask the Chancellor of the Exchequer what representations he has received asking him to impose a graduate tax ; what is his estimate of the likely yield from such a tax ; and if he will make a statement.

Mr. Lilley : I have received no representations asking me to impose a graduate tax and made no estimate of the possible yield.

Life Assurance (Taxation)

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what is his estimate of the effect the restriction referred to in paragraph 26(a) of the Inland Revenue paper of June 1983, on the cost of tax reliefs for pensions schemes, would have on the amount of tax payable by life office- administered funds in the current financial year ; and what would be the implications for the wider tax regime applicable to investments described in paragraph 3.3 and other considerations raised in the recent consultative document on the taxation of life assurance.

Mr. Lilley : There was no Inland Revenue paper of June 1983 on this subject.

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what would be the saving to the revenue in the current financial year if the tax on the incomings of life assurance offices had been as great as shown for 1968 in charts 11 and 12 of annex B to the recent consultation paper on the taxation of life assurance ; and if he will provide similar figures on a 1959 percentage basis.


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Mr. Lilley : The information necessary to support such an estimate is not yet available. It is not clear what the hon. Member's reference to a 1959 percentage basis means.

EC Institutions (Payments)

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether the net payment of £1.97 billion to European Economic Community institutions forecast for this year (Cm. 603) is higher or lower than expected when he agreed the present budgetary arrangements ; and what is the basis upon which this amount was decided.

Mr. Ryder : I refer the hon. Member to chapter 3 of "The Government's Expenditure Plans 1989-90 to 1991-92" (Cm. 603), and to paragraph 11 in particular.

Customs and Excise Building, Dartmouth

Mr. Steen : To ask the Chancellor of the Exchequer what plans he has for the building at Baynards Cove, Dartmouth, currently used by Her Majesty's Customs and Excise ; and if he will make a statement.

Mr. Ryder : The accommodation at Baynards Cove, Dartmouth, is too large for Her Majesty's Customs and Excise operational needs. The department is therefore seeking alternative smaller accommodation in the Dartmouth area and then to surrender the present building to the Property Services Agency.

Suzanne Allen and Yvonne Knight

Mr. Campbell-Savours : To ask the Chancellor of the Exchequer on what basis information held at Swindon 2 tax office on Suzanne Allen and Yvonne Knight was communicated to Swindon police.

Mr. Lilley : It is a strict rule that Revenue officials are not permitted to disclose personal and private information about the affairs of individual taxpayers except in certain very limited circumstances. Each Revenue official signs a statutory declaration to that effect on taking up duty in the Department. Disclosures are made to the police only in connection with the very serious crimes of murder and treason and then only with the express authority of the board.

No information about Suzanne Allen or Yvonne Knight has been communicated to the Swindon police.

Customs Officers

Mr. Dobson : To ask the Chancellor of the Exchequer what was the total number of Customs officers in 1979-80 and each succeeding year.

Mr. Ryder : The total numbers of Customs officers deployed at ports, airports and inland clearance premises for each of the fiscal years 1979-80 to 1988-89 were :


        |Numbers        

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

1979-80 |7,231          

1980-81 |7,088          

1981-82 |6,861          

1982-83 |6,717          

1983-84 |6,552          

1984-85 |6,715          

1985-86 |6,880          

1986-87 |7,307          

1987-88 |7,684          

1988-89 |8,010          

Value Added Tax

Mr. Rost : To ask the Chancellor of the Exchequer what amount of value added tax was raised in 1988-89 from the installation of energy conservation investments in the home, as defined in the home energy fact file, published by the Department of Energy.

Mr. Ryder : I regret that information requested is not available.

Selective Investment Brokers Limited

Sir Charles Morrison : To ask the Chancellor of the Exchequer whether negotiations have taken place between the Inland Revenue and Selective Investment Brokers Ltd. since January 1985 ; and if he will make a statement.

Mr. Lawson : Such information is confidential.

Delors Report

Mr. Teddy Taylor : To ask the Chancellor of the Exchequer if he will make a statement setting out the nature of his obligations to consult European Community institutions or bodies on financial and monetary policy inherent in his budget strategy ; what additional requirements are set out in the report of Mr. Jacques Delors which was presented to the Madrid meeting of the European Council ; and if he will make a further statement setting out Her Majesty's Government's policy on such consultations.

Mr. Ryder : My right hon. Friend has regular discussions with his EC Finance Minister colleagues, on a wide range of economic and monetary matters, at meetings of the Economic and Finance Council. The Prime Minister set out the Government's views on the proposals made in the report of Mr. Delors in her statement to the House on 29 June on the outcome of the European Council in Madrid on 26 and 27 June-- Official Report, columns 1107-22.

EC (Contribution)

Mr. Teddy Taylor : To ask the Chancellor of the Exchequer what is his latest estimate of the net contribution to be made by the United Kingdom to the EEC in the current calendar year ; and what was the comparable total in 1979.

Mr. Ryder : The information requested is as follows :


Net contribution to European Community budget (£ million)                                       

Year                    |Current prices         |Constant <1>1989 prices                        

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

<2>1989                 |1,966                  |1,966                                          

1979                    |947                    |1,938                                          

<1>GDP deflator at market prices.                                                               

<2>Estimate.                                                                                    

Mr. Cryer : To ask the Chancellor of the Exchequer what is the net amount paid for each year since 1979 to the EEC ; what is the estimated amount the Government are likely to pay in the current financial year ; and if he will make a statement.

Mr. Ryder : The information requested is set out in the table. Details of the Government's latest estimate for 1989-90 are contained in the public expenditure White Paper, Cm. 603.


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Net payments to European      

Community institutions<1>     

Year      |£ million          

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

1979-80   |841                

1980-81   |168                

1981-82   |117                

1982-83   |589                

1983-84   |836                

1984-85   |974                

1985-86   |822                

1986-87   |1,079              

1987-88   |1,664              

1988-89   |<2>1,022           

1989-90   |<3>1,970           

<1> Excluding overseas aid:   

for domestic public           

expenditure planning purposes,

 part of the United Kingdom's 

contribution to the Community 

budget is attributed to the   

overseas aid programme.       

<2> Provisional outturn.      

<3> Estimate.                 

Source: Public Expenditure    

White Paper.                  

Government Borrowing

Sir Richard Body : To ask the Chancellor of the Exchequer if he will state the total amount of borrowings by the Government from the banking system for each year since 1985.

Mr. Ryder : The table shows the total indebtedness of the public sector to the United Kingdom monetary sector.


Public sector borrowing from United Kingdom monetary sector:                                                                         

amounts outstanding end-period                                                                                                       

£ million                                                                                                                            

                    Sterling                                                 Other currencies                                        

                   |Central Government|Other             |Total                                |Total                                

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

1985               |10,347            |6,927             |17,274            |1,938             |19,212                               

1986               |11,574            |4,668             |16,242            |1,860             |18,102                               

1987               |11,792            |4,192             |15,984            |1,037             |17,021                               

1988               |10,753            |3,966             |14,719            |442               |15,161                               

Q11989             |7,567             |3,779             |11,346            |270               |11,616                               

Indebtedness has fallen each year since 1985 and recently at an accelerating rate.

Ken Dodd

Mr. Parry : To ask the Chancellor of the Exchequer what has been the cost to public funds of the recent trial of Ken Dodd.

Mr. Lilley : The total cost to public funds, including legal expenses and the estimated administrative expenses of the court, was £220,000.

Laser Printers (Inland Revenue)

Mr. Terry Davis : To ask the Chancellor of the Exchequer whether the Inland Revenue department is currently using any Siemens ND3, Siemens ND2, ICL LPS20, UNISYS 0777 or Storage Technology 6/100 laser printers.

Mr. Lilley : The Inland Revenue is currently using 18 LPS20 laser printers.

Recycled Publications

Mr. Menzies Campbell : To ask the Chancellor of the Exchequer whether unused official publications including Bills, Hansards and Order Papers are recycled ; and if he will make a statement.


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Mr. Ryder : All unused official publications including those returned from the House to HMSO's publications centre are sold as waste paper for recycling.

Post-tax Income

Mr. Meacher : To ask the Chancellor of the Exchequer what has been the share of total national post-tax income taken by the richest 1 per cent., the next 9 per cent., the middle 60 per cent., and the poorest 30 per cent. in 1959, 1963, 1967, 1970, 1974, 1979, 1983 and 1988, or the latest available date.

Mr. Lilley : I regret that it has not been possible to provide an answer before the summer recess. Therefore, I shall write to the hon. Member and place a copy of the letter in the Library.

Exports and Imports

Mr. Redmond : To ask the Chancellor of the Exchequer what is the rate of growth of exports over the last 10 years ; and what has been the rate of growth of imports.

Mr. Redwood : I will write to the hon. Member as soon as possible and place a copy in the Library.

Manufacturing Deficit

Mr. John Evans : To ask the Chancellor of the Exchequer what was the deficit in manufacturing trade in the first and second quarters of 1989.

Mr. Redwood : I have been asked to reply.

I will write to the hon. Member as soon as possible and place a copy in the Library.

Company Finances

Mr. Allen : To ask the Chancellor of the Exchequer what information he has as to how many United Kingdom companies hold £1 billion or more in bank accounts or outside equities.

Mr. Ryder [holding answer 25 July 1989] : The information requested is not readily available and could be provided only at disproportionate cost.

Real Disposable Incomes

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing in terms of 1985 prices the increase in real disposable incomes between 1959 and 1973, 1973 and 1979, and 1979 to date together with (a) the contribution made by (i) the overseas trade surplus/deficit on current account and (ii) the revenue from North sea oil and gas and (b) the annual percentage increase in real disposable incomes in each period less the contribution from (a) .

Mr. Norman Lamont [holding answer 27 July 1989] : Estimates for real national disposable income (RNDI) at constant 1985 prices for the years 1966 to 1987 are given in table 1.1 of "United Kingdom National Accounts", 1988 edition.

The same table gives estimates, over the same period, for the "terms of trade effect". This is the contribution to RNDI made by changes in export prices relative to import prices. Estimates of the value added by the extraction of


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mineral oil and natural gas appear for the years 1977 to 1987 and in current prices in table 2.2 of the same publication ; in volume terms expressed as an index with 1985=100 they appear in table 2.4. Longer-run estimates for real national disposable income and for the index number version of value added by the extraction of mineral oil and natural gas are available via the Library of the House which has access to the CSO's computer-readable database.

Current Account Deficit

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what steps the Government have taken to sterilise the inflow of capital to finance the deficit on current account ; and if he will publish in the Official Report details of the debt instruments sold for this purpose. Mr. Ryder [holding answer 27 July 1989] : The Government's funding policy ensures that any underlying change in the level of official foreign exchange reserves is sterilised over time. Since the balance of payments by definition must balance there are no further net inflows of capital to sterilise.

Department for National Savings

Mr. Dunnachie : To ask the Chancellor of the Exchequer (1) what consideration is being given to the privatisation of the Department for National Savings ;

(2) what consideration is being given to the privatisation of the National Savings bank in Scotland ;

(3) which companies have expressed an interest in buying the National Savings bank in Scotland ; and if he will make a statement.

Mr. Ryder [holding answer 26 July 1989] : The Government have no plans to privatise any part of the Department for National Savings.

Company Cars

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what evidence he has on the extent to which employers offer a company car instead of higher pay as an aid to recruitment ; and by how much the chargeable addition to income for tax purposes for the use of a company car would have to be increased to make it uneconomic for the employer to provide and the employee to accept the use of a company car instead of an increase in pay.

Mr. Lilley [holding answer 27 July 1989] : The decision to provide a car instead of higher cash pay is a matter for employers. About 1.4 million employees have cars available for private use provided by their employers. The Government's policy is that there should as far as possible be neutrality between the tax treatment of remuneration in cash and kind. But the value of company cars to particular employees varies widely depending on a range of factors. It is not possible, therefore, to give a fixed point at which a chargeable addition to income for tax purposes would make company cars an uneconomic proposition for either employers or employees.


Column 1150

United Kingdom Manufacturing

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what is his estimate of the percentage gross and net operating surplus in 1988 and in 1973 of firms not less than 90 per cent. of whose business is in United Kingdom manufacturing ; and what improvement in the rate of return he expects in 1989.

Mr. Norman Lamont [holding answer 27 July 1989] : I will reply to the hon. Member when resources permit.

Double Taxation

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what is the net loss to the United Kingdom in tax revenue under double taxation agreements.

Mr. Lilley [holding answer 27 July 1989] : This information is not available.

Ivory

Mr. Tony Banks : To ask the Chancellor of the Exchequer if, further to his reply of 6 June, Official Report, column 118, he will report on the latest situation in respect of the five consignments of raw ivory held at Heathrow airport on 12 April.

Mr. Ryder : I refer the hon. Member to the reply my predecessor gave on 6 June Official Report, column 118.

DUCHY OF LANCASTER

Justices of the Peace

Mr. Andrew F. Bennett : To ask the Chancellor of the Duchy of Lancaster what steps he proposes to take to implement the declared policy of his predecessor to ensure that as wide a range as possible of people serve as justices of the peace within the Duchy, what measures he proposes to guard against political imbalance across the numbers of people so appointed ; and what steps are taken to ensure the separation of his ministerial and non-ministerial functions in this respect.

Mr. Kenneth Baker : I fully support the answers given by my predecessor to the hon. Member on 13 March. With regard to the final part of the question, the offices and advisers for my different functions are completely separate.

AGRICULTURE, FISHERIES AND FOOD

Nitrates

Mr. Austin Mitchell : To ask the Minister of Agriculture, Fisheries and Food whether he will make it his policy to ensure that any compensation paid to individual farmers for restrictions imposed on the use of nitrogenous chemical fertilisers is financed by a levy on the sale of those fertilisers.

Mr. Curry : No.

Mr. Austin Mitchell : To ask the Minister of Agriculture, Fisheries and Food (1) what is his estimate of the tonnage of nitrogenous fertilisers used in United Kingdom agriculture in each year since 1959 ;


Column 1151

(2) whether Her Majesty's Government have any plans to impose a tax on the nitrogenous content of bulk fertilisers of £200 per tonne of the nitrate content ; and if he will publish in the Official Report a table showing the tonnage of nitrate consumed on British farms in each of the past 20 years.

Mr. Curry : The Government have no such plans. Figures on total nitrogen consumption on British farms are not available in the form requested. Information on applications of inorganic fertilisers containing nitrogen is published annually on a hectarage basis in the survey of fertiliser practice. In addition, nitrogen is also present in variable quantities in farmyard manure and sewage sludge. Total amounts involved are not available on a national basis, but are estimated to be about one fifth of total nitrogen application.

Food Transport

Mr. Roy Hughes : To ask the Minister of Agriculture, Fisheries and Food what action is now being taken to ensure that food is transported in the most hygienic conditions possible.

Mr. Freeman : I have been asked to reply.

The transport of food is already covered by the Food Hygiene (Markets, Stalls and Delivery Vehicles) Regulations 1966. On 4 July 1989 we began consultation on proposed amending regulations to apply temperature controls to certain foods carried in delivery vehicles.

Correspondence

Mr. Cran : To ask the Minister of Agriculture, Fisheries and Food how many letters were received from, and sent to, hon. Members by his Department in (a) January and (b) the whole of this Session up to 1 July.

Mr. Gummer : In January 1989 the Ministry received 721 letters which were designated for ministerial reply and 603 replies were issued. In the whole of the last Session to 1 July 1989 the figures were 6,123 and 5,289 respectively. The large majority of this correspondence was from right hon. and hon. Members.

Civil Service Dispersal

Mr. Cran : To ask the Minister of Agriculture, Fisheries and Food what progress is being made in his Department's review, in line with Treasury guidelines, of the potential for the further relocation of Civil Service posts outside London and the south-east ; and when he expects the review to be completed.

Mr. Curry : Officials of my Department are currently carrying out a detailed study of the potential for further relocation of headquarters work outside London and the south-east. I expect the results of this study to be available to me towards the end of this year.

Food Act 1984

Mr. Malcolm Bruce : To ask the Minister of Agriculture, Fisheries and Food what representations he has had concerning the amendment of sections 1 and 2 of the Food Act 1984 ; and how many of these have indicated a wish that they remain unaltered.


Column 1152

Mr. Maclean : The Government have received many representations in response to our proposals for re-enacting and updating the powers in sections 1 and 2. There has been general support for what we are proposing.

Salmonella

Mrs. Gorman : To ask the Minister of Agriculture, Fisheries and Food what assessment he has made of the causes of the cyclical occurrence of outbreaks of salmonella enteriditis over the last five years.

Mr. Curry : It has not been possible to identify any single cause for the increase in the number of incidents of salmonella enteriditis in poultry and animals reported under the Zoonoses Orders (1975) (1989) in the past five years.

Mrs. Gorman : To ask the Minister of Agriculture, Fisheries and Food whether there is scientific evidence available to his Department that salmonella enteriditis can reproduce inside an intact egg.

Mr. Curry : Evidence is available to show that salmonella enteriditis will multiply inside an intact egg if the egg is incubated at 37 deg. C.

Nutrition Claims

Mr. Boswell : To ask the Minister of Agriculture, Fisheries and Food what was the result of the consultation exercise on the recommendations by the Food Advisory Committee for controls on the new generation of nutrition claims on food labels and in advertisements.

Mr. Gummer : I am grateful to the committee for its further advice following consideration of the responses to the consultation exercise.

Nutrition claims can provide a useful source of information for consumers seeking a healthy, balanced diet but consumers must be fully protected from misleading claims. I therefore welcome, and accept, the Food Advisory Committee's recommendations and in due course I shall be issuing, for consultation, proposed legislation which would implement the committee's advice. This is part of our general policy to ensure that consumers are properly informed about the foods they buy and eat.

I have arranged for a copy of the revised Food Advisory Committee's advice to be placed in the Library of the House.

Milk Quotas

Mr. Austin Mitchell : To ask the Minister of Agriculture, Fisheries and Food what is his estimate of the capital value of milk quotas to British farmers.

Mr. Curry : I have made no such estimate.

Mr. Austin Mitchell : To ask the Minister of Agriculture, Fisheries and Food what is the cost of higher milk prices as a result of quotas ; and what was the cost of buying up and disposing of surplus milk and milk products before the quotas were imposed.

Mr. Curry : Since 1983-84, the year before quotas were introduced, the intervention price of butter (82 per cent. fat) has been reduced from 357.86 ecu/100 kg to the present level of 300.80 ecu/kg. The intervention price for


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skimmed milk powder has moved from 149.64 ecu/100 kg to 174.04 ecu/100 kg but intervention buying for both skimmed milk powder and butter has virtually been brought to an end. Despite the existence of quotas a substantial surplus still exists in the dairy sector ; the Government have been urging the Commission to make further cuts in the level of export refunds and other disposal subsidies in order to ease the supply situation--and hence prices--on the open market. Expenditure on surplus disposal measures for milk and milk products under the FEOGA guarantee section in 1983 amounted to 4,923 million ecu, not counting the offsetting effects of coresponsibility levy receipts.

Mr. Austin Mitchell : To ask the Minister of Agriculture, Fisheries and Food what is the size of the United Kingdom milk quota in litres ; how many million litres of quota have been sold in each of the past three years ; and if he will provide an estimate of the average price paid for quotas in the first month of each quota year together with the implied cost per litre of output amortised over a period of three, five and 10 years, respectively, at current rates of interest.

Mr. Curry [holding answer 27 July 1989] : United Kingdom milk quotas on 1 April 1989 were as follows :


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