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Written Answers to Questions
Monday 19 March 1990
EDUCATION AND SCIENCE
Teachers (Early Retirement)
Mrs. Maureen Hicks : To ask the Secretary of State for Education and Science (1) how many local authorities are offering early retirement pension schemes to teachers on the grounds of ill health or because they are surplus to requirements ;
(2) what is the cost to local authorities of offering early retirement pension schemes to teachers on the grounds of ill health or because they are surplus to requirements ;
(3) what is the Government's policy on teachers who have taken early retirement pensions on the grounds of ill health or because they are surplus to requirements taking paid teaching posts with other local authorities.
Mr. Alan Howarth : The Teachers' Superannuation (Consolidation) Regulations 1988 provide that a teacher before the age of 60 can receive retirement benefits if he has become incapacitated, that is, he is incapable for reason of infirmity of mind or body of serving efficiently as a teacher. Applications are made direct to this Department by individual teachers. In the financial year 1988-89, a total of 3,400 teachers in England and Wales were awarded benefits under this provision.
The regulations also provide that a teacher over 50 can receive retirement benefits prematurely where his employer has notified the Secretary of State that his pensionable employment was terminated by reason of his redundancy or in the interests of the efficient discharge of the employer's functions. In the financial year 1988-89, a total of 12,500 teachers in England and Wales received benefits under this provision.
The costs of awarding infirmity benefits are borne by the teachers' superannuation scheme ; in the case of premature retirement the employer may award additional benefits. The cost of this is met by the individual employer. No central record of costs is available. Teachers who have retired under these provisions may at a later date seek further employment. In cases where infirmity benefits were awarded, the employer is responsible for satisfying himself that the teacher is medically fit to teach. In all cases, the pension will be subject to the abatement provision and reduced or suspended according to circumstances.
Lingua Programme
Mr. Fatchett : To ask the Secretary of State for Education and Science what submissions have been made by his Department for resources from the European Community Lingua programe ; and if he will make a statement.
Mr. Jackson : The Lingua programme began on 1 January 1990. Its first year is essentially preparatory and the programme will be fully operational from 1 January
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1991. Applications for support mainly directed at modern language students have been invited for 1990 and United Kingdom institutions will participate fully. It is planned to seek applications for support under other elements of the programme from autumn 1990. The Government will encourage the widest possible United Kingdom participation.Vacant School Places (Avon)
Mr. Haywood : To ask the Secretary of State for Education and Science how many vacant places there are in secondary schools in Avon ; and what proportion of secondary school places this represents.
Mr. Alan Howarth : Information about the number of surplus places in individual local education authorities is not held centrally.
Special Educational Needs
Mr. Steinberg : To ask the Secretary of State for Education and Science how many children in the school population have been statemented ; what this is as a percentage of total school population ; how many of those children statemented are in special schools and what is the percentage ; and how many are in mainstream schools and what is the percentage.
Mr. Alan Howarth : The information requested for January 1989 in England is as follows :
All schools |155,191 |2.1
Special schools |<1>102,064 |1.4
Mainstream schools |53,127 |0.7
<1> No information is available on the number of children without statements in special
schools. It is assumed that all children in special schools have statements.
School Budgets
Mr. Steinberg : To ask the Secretary of State for Education and Science (1) if it is mandatory for local education authorities to reduce their holdback of 10 per cent. of general school budgets to 7 per cent. over the next three years ;
(2) whether the 7 per cent. figure of centrally held budget by local education authorities over the next three years is a target figure.
Mrs. Rumbold : Within three years of the introduction of their scheme, LEAs must review the scope of the items they have held back from delegation. In that review we expects LEAs to aim for a target of reducing the total cost of most of the items held back to 7 per cent. of their general schools budget.
Primary School, Landkey
Mr. Speller : To ask the Secretary of State for Education and Science if he will make it his policy to approve capital funding for the provision of a new county primary school at Landkey, north Devon.
Mr. Alan Howarth : The building of a new school, or a significant enlargement to the existing school, at Landkey
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will require the publication of statutory proposals. No statutory proposals of this kind are currently before my right hon. Friend for decision. Priority is given in the distribution of annual capital guidelines for new school places needed as a result of population growth.Advertising Expenditure
Mr. Cohen : To ask the Secretary of State for Education and Science what was the total publicity and advertising expenditure of his Department and public bodies for which his Department has responsibility in (a) 1979 and (b) 1989.
Mrs. Rumbold : The figures for publicity and advertising expenditure by this Department for the financial years 1979-80 and 1989-90 are provided below. The 1989-90 figure is provisional. Figures for non-departmental public bodies cannot be provided without disproportionate cost.
£ Thousand
1979-80 |103.8
1989-90 |2,596.7
Disabled Students
Mr. Norris : To ask the Secretary of State for Education and Science whether he has any plans to improve the support for disabled students in higher education.
Mr. MacGregor : Disabled students need special help to enable them to take full advantage of higher education opportunities. I propose to improve the arrangements for them in two major ways.
First, subject to parliamentary approval of the necessary regulations in due course, I intend to increase substantially the disabled students' allowance payable within the mandatory award by local education authorities in England and Wales. For the academic year 1990-91 the maximum allowance will be raised from the present £765 to £1,000. In addition, two further allowances will be introduced : one for non-medical personal helpers, such as interpreters for the deaf, up to a maximum of £4,000 a year ; and the other for major items of specialist equipment, such as word processors with braille printers, up to a maximum of £3,000 spread over the whole course. The Department will be taking steps to ensure that local education authorities and disabled students are fully aware of the new arrangements. Parallel improvements will be made in the grant arrangements for disabled students from Scotland and Northern Ireland.
When top-up loans are introduced this autumn subject to the passage of the Bill before Parliament, disabled students will also be eligible for relevant social security benefits, as well as for the new disabled students' allowances and for existing allowances for extra travel costs and vacation hardship within the mandatory award system Together with the basic award, these should provide adequate resources to meet disabled students' needs while studying. Indeed, overall, disabled students will have considerable additional resources at their disposal as a result of the introduction of loans on top of their continuing grants and benefits.
Secondly, I accept, however, that disabled graduates' capacity to repay loans may be affected by extra living costs resulting from their disability. Such costs will
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generally be reflected in social security benefit entitlements. As these benefits are provided specifically in relation to the additional costs faced by the disabled, it would not be appropriate to take them into account in assessing disabled graduates' liability to repay. I therefore propose to disregard disability-related benefits when graduates' income is assessed for the purpose of deferment of loan repayments. This means, in effect, that a graduate whose gross income including disability-related benefits is above the deferment threshold, but whose income net of these benefits is below the threshold, will be able to defer loan repayments.THE ARTS
Arts Funding, Merseyside
Mr. Alton : To ask the Minister for the Arts if he will ask the chairman of the Arts Council to review the effectiveness of its policy of parity funding in Merseyside.
Mr. Luce : This is entirely a matter for the Arts Council. I am aware that the council attaches importance to the participation of local authorities in the funding of arts organisations in their area.
Mr. Alton : To ask the Minister for the Arts if he will provide direct financial assistance to help pay the deficits and secure the future of the Liverpool Playhouse.
Mr. Luce : It remains a matter for the Arts Council to determine the level of grant appropriate to this or any other arts organisations.
Mr. Alton : To ask the Minister for the Arts what representations he has received about funding for the Merseyside Everyman theatre and the Playhouse theatre in Liverpool ; and if he will make a statement.
Mr. Luce : I am aware of the financial difficulties facing these two companies. It is a matter for the Arts Council to determine the level of grant appropriate to them. I understand that the council is in discussion with the local authorities concerned to try to find a solution. I am aware of the important contribution of both theatres to the cultural life of Liverpool and the surrounding areas.
Museums and Galleries (Maintenance)
Mr. David Martin : To ask the Minister for the Arts how he intends to provide for the maintenance of national museums and galleries in the next 12 months.
Mr. Luce : I am providing £57 million in 1990-91 for the building and maintenance programmes at the national museums and galleries which I sponsor.
This provision will increase to some £60 million in 1991-92 and to £64 million in 1992-93. This will bring the total provision for building and maintenance over the next three years to over £180 million.
Regional Functions
Mr. Caborn : To ask the Minister for the Arts what functions his office carries out at the regional level ; where the regional offices are located in each of the regions ; what staff are employed and at what grades ; what proportion of his office's budget is spent in each of the regions ; and what geographical boundaries determine his office's regions.
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Mr. Luce : The functions of my office are carried out only in London. Most of its expenditure programme is in the form of support to arts organisations, museums, galleries and other bodies. It is not possible to estimate the proportion that is spent in each region.NATIONAL FINANCE
Incomes
Mr. Chris Smith : To ask the Chancellor of the Exchequer what was the investment income and earned income in (i) 1989-90, (ii) 1988-89 and (iii) 1978-79, expressed in cash terms and in constant prices of (a) the bottom 10 per cent., (b) the bottom 20 per cent., (c) the bottom 30 per cent., (d) the bottom 40 per cent.,
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(e) the top 50 per cent., (f) the top 40 per cent., and (g) the top 10 per cent. of all taxpayers ; and if he will give the minimum and maximum figures of each income band in this table, together with the minimum and maximum figures for the bands listed in his answer of 20 February, Official Report, columns 681-82.Mr. Lilley : Available information is given in the tables. Estimates for 1988-89 and 1989-90 are based on projections of the 1987-88 survey of personal incomes and are provisional. These estimates are subject to a large degree of uncertainty since some investment income on which tax is deducted at source is not reflected in the survey.
Information on the investment income of the bottom 10 per cent., 20 per cent., 30 per cent. and 40 per cent. of taxpayers is not available.
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Table 1 Total investment income and earned income in cash terms <1>Estimates for 1978-79 are not comparable with 1988-89 and 1989-90 as some income is not fully reported, for example, investment income on which tax is deducted at source and reported earnings are after deduction of occupational pension contributions. <2>Single people and married couples. <3>Minimum total income for top X per cent.; maximum total income for bottom X per cent. n/a-Estimates not available.
Table 2: Total Investment Income and Earned Income in 1989-90 prices<1>
Group of Income Tax Payers<3>
£ p.a.
£ billion
£ billion
£ p.a.
£ billion
£ billion
£ p.a.
£ billion
£ billion
Top 1 per cent. |36,200 |2.7 |8.7 |59,800 |4.8 |15.8 |63,000 |5.8 |16.2
Top 5 per cent. |22,500 |5.3 |28.9 |33,200 |9.8 |46.5 |34,600 |11.6 |47.7
Top 10 per cent. |18,600 |6.4 |48.8 |25,800 |12.8 |73.8 |26,700 |15.6 |75.5
Top 20 per cent. |14,900 |7.8 |82.0 |19,600 |17.0 |115.7 |20,200 |20.8 |118.5
Top 25 per cent. |13,700 |8.0 |96.9 |17,700 |18.5 |133.6 |18,300 |22.7 |136.8
Top 40 per cent. |11,000 |8.9 |135.0 |13,800 |21.7 |178.5 |14,100 |26.6 |182.7
Top 50 per cent. |9,600 |9.4 |156.5 |11,600 |23.5 |203.3 |11,900 |29.0 |208.1
Bottom 70 per cent. |12,800 |3.4 |113.4 |16,100 |10.5 |128.4 |16,700 |12.6 |131.9
Bottom 50 per cent. |9,600 |2.3 |67.2 |11,600 |6.7 |75.2 |11,900 |7.9 |77.1
Bottom 40 per cent. |8,200 |-<5> |48.1 |9,800 |-<5> |53.9 |10,100 |-<5> |55.5
Bottom 30 per cent. |6,900 |-<5> |31.9 |8,200 |-<5> |36.2 |8,300 |-<5> |37.2
Bottom 20 per cent. |5,500 |-<5> |18.8 |6,600 |-<5> |21.5 |6,800 |-<5> |22.3
Bottom 10 per cent. |4,400 |-<5> |8.0 |4,900 |-<5> |9.4 |5,100 |-<5> |9.9
All taxpayers |- |11.7 |223.7 |- |30.2 |278.5 |- |36.9 |285.2
<1> Data inflated by financial year on financial year increase in RPI.
Government Staffing Levels
Mr. Riddick : To ask the Chancellor of the Exchequer if he will set out a table showing for each year since 1979 (a) the full-time, (b) the part-time and (c) the total staffing of central Government.
Mr. Norman Lamont : The information requested is given below. The total figures cover Her Majesty's forces, the National Health Service, the civil service--except trading funds--and other organisations classified to central Government. The component figures, in aggregate, and definitions are contained in an article on employment in the public and private sectors published in the December 1989 edition of "Economic Trends". The full- time/part-time split for 1989 shown below is a later estimate. Figures for the civil service are also shown separately.
Central Government employment (mid year)
Thousands
equivalent
equivalent
1979 |1,885 |502 |2,188 |724
1980 |1,879 |514 |2,196 |700
1981 |1,903 |516 |2,225 |684
1982 |1,880 |520 |2,198 |659
1983 |1,862 |522 |2,181 |643
1984 |1,852 |507 |2,149 |619
1985 |1,844 |516 |2,144 |596
1986 |1,817 |520 |2,116 |597
1987 |1,779 |533 |2,091 |584
1988 |1,777 |545 |2,084 |577
1989 |1,750 |553 |2,072 |567
Manufacturing Investment
Mr. Battle : To ask the Chancellor of the Exchequer if he will publish a table showing for each year since 1974 (a) the level of manufacturing investment in cash amounts, (b) the level of manufacturing investment at 1985 prices, (c) the percentage share of manufacturing investment in gross domestic product, (d) the percentage share of manufacturing investment in gross national product and (e) the annual growth rate of manufacturing investment.
Mr. Norman Lamont : Estimates of manufacturing investment, gross domestic product and gross national product may be obtained from the CSO database accessible through the House of Commons Library. Data for 1989 were released by press notice on 16 March, copies of which have been placed in the Library of the House.
Interest Rates
Mrs. Gorman : To ask the Chancellor of the Exchequer what is his assessment of the likely movement of interest rates in the United Kingdom produced as a result of currency union between East and West Germany.
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Mr. Ryder : The United Kingdom is watching developments in Germany with interest. However, United Kingdom rates will continue to be kept as high as is needed for as long as is needed to bring down inflation.
Balance of Payments
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report his provisional estimate of balance of payments deficit on current account with the European Economic Community for 1989 ; and if he will include the figure for invisibles separately.
Mr. Norman Lamont : Information for 1989 is not yet available. It will be published later in the year in the 1990 edition of the CSO Pink Book.
European Community
Mr. Teddy Taylor : To ask the Chancellor of the Exchequer what was the deficit in trade with the EEC in 1989 ; and what were the comparable deficits in the previous five years.
Mr. Norman Lamont : The latest information is available in table A12 of the monthly review of external trade statistics, available in the Library of the House, or on the Central Statistical Office database which may be accessed through the Library.
Value Added Tax
Mr. John Marshall : To ask the Chancellor of the Exchequer whether he intends to make any changes to the method by which health authorities are compensated for the application of value added tax to construction work.
Mr. Ryder : The Government have decided to compensate health authorities for the application of VAT to their construction work through matching increases in public expenditure. From 1 April 1990 health authorities will no longer be eligible under section 11 of the Finance Act 1984 for refunds of VAT paid on construction contracts. The extra capital provision necessary to ensure that health authority building programmes are not prejudiced by the application of VAT will be granted to the NHS in supplementary estimates for 1990-91 to be presented in due course.
Incomes
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what is the estimated number of adults whose income is below the income tax threshold ; what is the number of those above and below pensionable age distinguishing between single persons and one and two-earner married couples ; and whether he will provide a breakdown of the figures for each region.
Mr. Lilley [holding answer 1 March 1990] : Available estimates for 1989-90 are given in the tables. They are based on a projection of the 1987 family expenditure survey and are provisional.
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Single people and married couples not liable to tax in 1989-90 <1>Single person or at least one of the married couple over 65.
Single people and married couples not
liable to tax in 1989-90 by region
Northern |0.6 |0.3
Yorkshire and Humberside |0.6 |0.4
East Midlands |0.4 |0.3
East Anglia |0.2 |0.2
Greater London |0.5 |0.4
Other South East |0.7 |0.6
South East |0.4 |0.4
West Midlands |0.7 |0.5
North West |0.9 |0.5
Wales |0.5 |0.3
Scotland |0.8 |0.4
Northern Ireland |0.2 |0.1
United Kingdom |6.5 |4.4
Income Tax
Mr. Chris Smith : To ask the Chancellor of the Exchequer what has been the annual reduction in income tax for a married man on earnings of (a) £5,000, (b) £10,000, (c) £15,000, (d) £20,000, (e) £30,000, (f) £35,000, (g) £40,000, (h) £45,000, (i) £50,000, (j) £100,000, (k) £150,000, (l) £300,000, (m) average male earnings and (n) three quarters of average male earnings as a result of the changes brought in by the 1988 budget.
Mr. Lilley [holding answer 13 March 1990] : The information is in the table.
Income tax liability in 1989-90 compared
with liability under
1987-88 tax rates with allowances and
thresholds indexed to 1989-90 for a married
man<1>
£ per annum
£ per annum
5,000 |58.40
10,000 |158.40
<2>10,920 |176.80
<3>14,560 |249.60
15,000 |258.40
20,000 |358.40
30,000 |740.75
35,000 |1,115.50
40,000 |1,615.50
45,000 |2,300.25
50,000 |3,050.25
100,000 |13,045.00
150,000 |23,045.00
300,000 |53,045.00
<1>Calculations assume that the married man
has no other forms of income and claims no
reliefs or allowances other than the
married man's allowance.
<2>Three quarters average male earnings.
<3>Average male earnings for full time
adult males in all occupations in 1989-90;
£280.00 per week; in line with the
assumptions in paragraph 3.02 of the 1989
Autumn Statement.
Mr. Chris Smith : To ask the Chancellor of the Exchequer what has been the proportion of income tax
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receipts received by the Exchequer (a) by payment at rates higher than the standard rate and (b) from those paying tax at rates higher than the standard rate in (i) 1978-79, (ii) 1987-88 and (iii) 1988-89.Mr. Lilley [holding answer 13 March 1990] : The information is in the table.
Tax liability at higher rates as a percentage of total tax liability |9 |18 |17
Liability of higher rate taxpayers as a percentage of total tax liability |20 |32 |33
<1> Based on a projection of the 1987-88 Survey of Personal Incomes and therefore provisional.
Mr. David Nicholson : To ask the Chancellor of the Exchequer if he will list in the Official Report the proportion of income paid in income tax and national insurance combined by a married man with two children aged under 11 years on (a) average earnings, (b) one-and-a-half times average earnings, and (c) twice average earnings, in 1975-76, 1978-79 and the latest year for which figures are available.
Mr. Lilley [holding answer 14 March 1990] : The information is in the table.
Percentage of earnings paid in income tax and
National Insurance Contributions by a married
man<1>, with two children aged under 11
1975-76 |25.8 |29.0 |31.4
1978-79 |20.9 |26.2 |27.9
1989-90 |20.8 |23.1 |25.7
<1> Calculations assume that the married man
has no other forms of income and that he does
not receive any tax allowances or reliefs other
than the married man's allowance and child tax
allowances. Child benefit is treated as
negative income tax.
<2> Earnings are for full time males on adult
rates in all occupations.
ATTORNEY-GENERAL
County Courts
Mr. George Howarth : To ask the Attorney-General how long it takes for the county court to clear a cheque in each county court area ; and if he will make a statement.
The Attorney-General : The period for a county court to obtain clearance of a cheque drawn in sterling on a bank located in the United Kingdom, Northern Ireland and the Channel Islands--identified by a bank sort code on the cheque--is currently a minimum of eight working days for courts using the Bank of England and 14 working days for
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courts using the main clearing banks ; other cheques, for example drawn on a foreign bank, are subject to individual clearance with no standard clearance period.Mr. George Howarth : To ask the Attorney-General how long it takes to process a bad debt claim in each county court area ; and if he will make a statement.
The Attorney-General : This information is not readily available and could be obtained only at disproportionate cost.
PRIME MINISTER
Sovereignty (Law Enforcement)
Mr. Wray : To ask the Prime Minister (1) if she will make a statement regarding the implications for United Kingdom national sovereignty and legal systems of the United States Supreme Court ruling of 1 March giving law enforcement agents power to act against non-United States of America nationals abroad without permission of the host country ;
(2) what representations Her Majesty's Government made to the United States of America Administration regarding the ruling of the United States Supreme Court of 1 March giving United States law enforcement officers power to act against non-United States nationals abroad without permission of the host country.
The Prime Minister : The United Kingdom is aware of the judgment of the United States Supreme Court, given on 28 Februrary, in the case of a Mexican citizen.
The United Kingdom is studying the judgment, although at first sight it appears unlikely to affect the interests of this country. Her Majesty's Government have made it clear to the United States authorities that they do not accept that any foreign county has the right to exercise extra- territorial jurisdiction in the United Kingdom.
King Hussein of Jordan (Meeting)
Mr. Flynn : To ask the Prime Minister if during her meeting with King Hussein of Jordan on 11 March, she raised (a) the situation of the journalist Farzad Bazoft in Iraq, (b) the threat of nuclear weapons in the middle east and (c) the failure of Israel to sign the nuclear non- proliferation treaty.
The Prime Minister : I had a wide-ranging and very useful discussion of the situation in the middle east with King Hussein, who kindly agreed to intercede with the Iraqis over the case of Mr. Bazoft. Our views on the threat posed by nuclear proliferation in the middle east are well known.
Department of Health
Mr. David Hinchilffe : To ask the Prime Minister if she will make it her policy to rename the Department of Health the Department of Health and Personal Social Services in order to more appropriately reflect the Department's responsibilities in its title.
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ENERGY
Fossil Fuel Levy
Mr. Hardy : To ask the Secretary of State for Energy if he will publish an explanation in plain terms designed to be comprehensible to ordinary consumers of the formulae contained in the Fossil Fuel Levy Regulations 1990.
Mr. Baldry : The algebra used in the Fossil Fuel Levy Regulations 1990 will enable the Director General of Electricity Supply to calculate the rate of the levy as a percentage of the electricity sales revenue. This percentage will then be notified to licensed suppliers and published. Licensed suppliers will not need to apply these formulae ; they will calculate the payments due from them in accordance with the rate notified by the Director. They will therefore be in no doubt as to the rate applicable to any particular month.
TRADE AND INDUSTRY
Aerospace Companies
Mr. Jack : To ask the Secretary of State for Trade and Industry what economic contribution aerospace companies make to the United Kingdom industrial production, investment, the balance of payments and corporation tax revenues.
Mr. Douglas Hogg : The United Kingdom aerospace industry made contributions to the United Kingdom economy as follows. Its net output-- £3,133 million in 1987--provided 2.9 per cent. of the total net output of production industries ; capital expenditure--£258 million--amounted to 1.9 per cent. of production industries' total capital expenditure investment and they recorded over £6 billion worth of exports, in 1988, with a balance of trade of about £1.7 billion in the United Kingdom's favour. Corporation tax statistics are not compiled for individual industries.
Laing Properties
Mr. Redmond : To ask the Secretary of State for Trade and Industry on what grounds he decided not to refer to the Monopolies and Mergers Commission the takeover bid by the Peninsular and Oriental company for Laing Properties.
Mr. Redwood : My right hon. Friend the Secretary of State's decision not to refer the proposed acquisition of the PandO Group and Chelsfield plc of Laing Properties plc was taken in accordance with the advice of the Director General of Fair Trading and after consideration of all relevant issues. In my right hon. Friend's view, the proposal did not raise competition or other public interest issues which justified reference to the Monopolies and Mergers Commission.
Regional Development Grant
Mr. Hind : To ask the Secretary of State for Trade and Industry (1) how many regional development grants and at what total amount were awarded to west Lancashire firms in 1988-89 ; and if he will make a statement ;
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(2) how many regional selective assistance grants and at what total amount were awarded by his Department in 1988-89 to commercial firms in west Lancashire ; and if he will make a statement.Mr. Douglas Hogg : The information requested is as follows :
(£ million)
Regional development grants<1> |146 |7.2
Regional selective assistance grants |10 |4.1
<1> Data are only available for the revised RDG scheme, which was introduced on 29 November 1984 and closed to new applications on 31 March 1988.
<2> Approvals of RDG, offers of RSA.
<3> Amount expected to be paid if the projects proceed as planned.
Water Reed
Mr. Speller : To ask the Secretary of State for Trade and Industry what representations he has received regarding allegations of dumping from eastern European countries of water reed used for thatching ; what investigations he has made into these allegations ; and if he will make a statement.
Mr. Redwood : I have received no such representations. Investigations into allegations of dumping in the Community are carried out by the European Commission.
Bankruptcy
Mr. Harry Barnes : To ask the Secretary of State for Trade and Industry what is the current minimum amount of debt which has to be incurred before bankruptcy proceedings can be instigated under the provisions established in section 267(4) of the Insolvency Act 1986 (c. 45) ; and what plans he has to introduce a statutory instrument to increase or decrease that minimum figure.
Mr. Redwood [holding answer 16 March 1990] : The minimum amount is £750. There are no current plans to change that figure.
Directorships
Mr. Speller : To ask the Secretary of State for Trade and Industry if he will list the conditions under which a person may be banned from being a director of a private limited company or of a public limited company.
Mr. Redwood [holding answer 16 March 1990] : A person may be banned from holding such positions in the circumstances specified in the Company Directors Disqualification Act 1986. These are : conviction of an indictable offence in connection with the promotion, formation, management or liquidation of a company, or with the receivership or management of a company's property ; persistent breaches of companies legislation ; fraudulent trading ; fraud in relation to a company while an officer or liquidator of the company or receiver or manager of its property ; on summary conviction of an offence specified in the above Act ; having been a director of a company which has become insolvent where the court finds that the individual's conduct as a director of that company makes him incompetent to be concerned in the management of a company ; and where the court is satisfied, following the investigation of a company under
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section 437 of the Companies Act 1985, or sections 94 or 177 of the Financial Services Act 1986, or where it appears that such an order should be made in the light of information or documents obtained under section 447 or 448 of the Companies Act 1985 or section 105 of the Financial Services Act 1986 or section 2 of the Criminal Justice Act 1987 or section 52 of the Criminal Justice (Scotland) Act 1987 or section 83 of the Companies Act 1989, that the person's conduct in relation to a company makes him unfit to be concerned in the management of a company ; and where a court has made a declaration under section 213 or 214 of the Insolvency Act 1986 that a person is liable to contribute to a company's assets.A person may also be disqualified where a court revokes an administration order under section 429 of the Insolvency Act 1986. In addition, a bankrupt person is prohibited automatically from acting as a director and a more limited automatic prohibition applies in the circumstances specified in section 216 of the Insolvency Act 1986.
Securities and Investments Board
Mr. French : To ask the Secretary of State for Trade and Industry if he will make a statement about the responsibilities of the Securities and Investments Board for monitoring the activities of companies which have had their licences withdrawn by FIMBRA, LAUTRO, IMRO and TSA.
Mr. Redwood : Powers have been transferred by the Secretary of State to the Securities and Investments Board relating to investment business carried on without authorisation, which is an offence under the Financial Services Act 1986. SIB is therefore in a position to investigate and take action in respect of a company carrying on investment business after its membership of a self-regulating organisation has ended. How it exercises those powers is a matter for the board.
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