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Taxation (Savings)

Mr. Allen : To ask the Chancellor of the Exchequer if he will list all those taxes which apply to savings with the tax take in each case for the latest year for which figures are available.

Mr. Lilley : The tax liability in 1990-91 on investment income received by individual savers, including interest received on bank and building society accounts, national savings and dividends received from companies, is estimated at £10.5 billion. Tax reliefs on debt interest, for example mortgage interest relief, are excluded.

Other taxes relevant to savings are capital gains tax, inheritance tax and stamp duty. Forecasts of receipts in 1990-91 for each of these taxes are in table 1.2 of the 1990-91 Financial Statement and Budget Report. Not all these yields are derived from savings.

Mortgage Tax Relief

Mr. Paice : To ask the Chancellor of the Exchequer what he estimates would be the cost to the Treasury of providing tax relief for first-time buyers on their mortgages at double the present rate of relief, at current prices.

Mr. Lilley : I regret that information on mortgage interest relief for first-time buyers is not available.

Mr. Walden : To ask the Chancellor of the Exchequer what was the cost to the Treasury of mortgage tax relief for the years 1987, 1988 and 1989.

Mr. Lilley : Estimates for financial years are as follows :


                |Value of                       

                |Mortgage                       

                |interest relief                

Year            |£ million                      

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

1987-88         |4,900                          

<1>1988-89      |5,400                          

<1>1989-90      |6,900                          

<1>Provisional.                                 

Child Benefit

Sir Ian Gilmour : To ask the Chancellor of the Exchequer how many working families with children receive more in child benefit than they pay in income tax, distinguishing between two and one-parent families.

Mr. Major : In 1990-91 an estimated 900,000 families with heads in full or part-time employment will receive more in child benefit than they pay in income tax. Almost half the families have insufficient income to be liable to income tax. A total of 600,000 are two-parent families and 300,000 are single parents. Estimates are based on a projection of the 1987 family expenditure survey and are subject to revision.


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EC Contributions

Mr. Teddy Taylor : To ask the Chancellor of the Exchequer what percentage of the total net contributions to the European Economic Community was borne by the United Kingdom in the most recent annual period for which figures are available ; and if he will publish a table showing the net contributions or net receipts in respect of each member state.

Mr. Ryder : The "Statement on the 1990 Community Budget" (Cm. 1059) includes an estimate of £2,175 million for the United Kingdom's net contribution to the European Economic Community in 1990. It is not possible to express this amount as a percentage of total net contributions as the net balances of member states will sum to zero after allowance is made for unallocated expenditure (mainly aid and some administration), miscellaneous revenue and budget surpluses. Comparable information about the net balances of other member states is not available.

Energy Consumption

Mr. Dobson : To ask the Chancellor of the Exchequer if he will give for each year from 1978 the energy consumption, broken down by fuel, of the buildings occupied by his Department, expressing the figures in (a) cash terms, (b) 1978-79 money terms and (c) units of consumption for electricity in kilowatt hours, gas in therms, liquid fuel in litres and solid fuel in tonnes.

Mr. Richard Ryder : I gave the hon. Member the figures for 1989 in current terms in my answers of 30 April, Official Report, column 444, and 14 May, Official Report, column 274. Figures for previous years are not available.

Mr. Dobson : To ask the Chancellor of the Exchequer if he will give the number of dedicated energy managers in his Department and the number of person years devoted to energy management in the latest year.

Mr. Ryder : Energy management responsibilities form part of the duties of several officials with the major co-ordinating role being undertaken by a senior executive officer. The total time devoted to these duties is currently estimated to be 0.2 man years per year. This figure is expected to increase.

Tax Evasion

Mr. Allen : To ask the Chancellor of the Exchequer what is his estimate of the amount lost to the Exchequer by tax evasion in each of the main categories of taxation ; and what this is expressed as a number of pence on the basic rate of tax.

Mr. Lilley : Reliable estimates of tax lost through evasion are not possible.

Finance Bill

Mr. Hanley : To ask the Chancellor of the Exchequer when he intends to publish in draft form the regulations provided for in clause 60 of the Finance Bill (capital movements between residents of member states) ; and if he will make a statement.

Mr. Lilley : The Board of Inland Revenue announced in a press release on 19 April 1990 that it was hoped to


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publish the regulations governing the reporting requirement introduced by clause 60 of the Finance Bill (for certain transactions) shortly. I have today authorised the publication of the draft regulations. The Inland Revenue is issuing a press release giving further details.

South Africa

Mr. Kirkwood : To ask the Chancellor of the Exchequer what representations he has made to the International Monetary Fund about the need for further debt reduction for front-line states in South Africa ; and if he will make a statement.

Mr. Ryder : My right hon. Friend has made no such representations.

Mr. Kirkwood : To ask the Chancellor of the Exchequer what plans he has to meet representatives of the front-line South African states to discuss debt reduction.

Mr. Ryder : My right hon. Friend has no plans to meet representatives of the front-line South African states.


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Manufacturing Investment

Mr. Alan Williams : To ask the Chancellor of the Exchequer (1) at 1989 prices, how much higher or lower manufacturing investment would have been in each year since 1978-79 (a) had the level of 1978-79 been maintained and (b) had the average rate of change from 1974 to 1979 been maintained ;

(2) at 1989 prices (a) what manufacturing investment would have been had it maintained 1978-79 levels in each subsequent year, (b) what manufacturing investment would have been in each year since 1978-79 had it changed at the same rate as in (i) Japan, (ii) the United States of America, (iii) West Germany, (iv) France and (v) OECD average level ; and (c) what manufacturing investment was in each year since 1978-79.

Mr. Major [holding answer 21 May 1990] : A 1989 constant price series for manufacturing investment is not available. The table provides the available information at 1985 prices.


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|c|United Kingdom manufacturing investment (including leased assets) £ million 1985 prices|c|                                                                                                                                                                

Year                    Actual investment      Difference from        1979 investment pro-   Difference from        1979 investment projected at year on year                                                                                                

                                               1978-79 average        jected at 1974-79      actual level           percentage changes<1> for:                                                                                                               

                                                                     |average rate of change                                                                                                                                                                 

                                                                     |(2.1 per cent.)                                                                                                                                                                        

                       |(a)                   |(a)-£10,937           |(b)                   |(a)-(b)               |Japan                 |France                |USA                   |West Germany          |OECD<2>                                      

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

1979                   |11,158                |+221                  |11,158                |-                     |<3>-                  |11,158                |11,158                |11,158                |<3>-                                         

1980                   |9,920                 |-1,017                |11,392                |-1,472                |<3>-                  |11,950                |11,301                |11,939                |<3>-                                         

1981                   |7,735                 |-3,202                |11,631                |-3,896                |<3>-                  |11,102                |10,205                |11,383                |<3>-                                         

1982                   |7,603                 |-3,334                |11,875                |-4,272                |<3>-                  |10,447                |8,368                 |10,302                |<3>-                                         

1983                   |7,541                 |-3,396                |12,125                |-4,584                |<3>-                  |10,165                |9,849                 |10,446                |<3>-                                         

1984                   |8,922                 |-2,015                |12,379                |-3,457                |<3>-                  |10,297                |11,100                |10,300                |<3>-                                         

1985                   |10,264                |-673                  |12,639                |-2,375                |<3>-                  |10,966                |9,990                 |11,680                |<3>-                                         

1986                   |9,654                 |-1,283                |12,905                |-3,251                |<3>-                  |11,317                |10,070                |12,789                |<3>-                                         

1987                   |10,142                |-795                  |13,176                |-3,034                |<3>-                  |12,087                |-                     |-                     |<3>-                                         

1988                   |11,334                |+397                  |13,453                |-2,119                |<3>-                  |-                     |-                     |-                     |<3>-                                         

1989                   |12,043                |+1,106                |13,735                |-1,692                |<3>-                  |-                     |-                     |-                     |<3>-                                         

<1> Source: OECD National Accounts Volume 2 1974-87. The percentage changes are based on figures, at 1980 prices, of gross fixed capital formation by owners engaged in manufacturing. The coverage is therefore not exactly comparable to the United        

Kingdom figures which differ, in particular, by the inclusion of leased assets.                                                                                                                                                                              

<2> Figures of gross fixed capital formation in manufacturing are not available for a number of OECD countries. It is not possible to produce average change figures covering the group of countries for which figures are available because all figures are 

expressed in national currencies.                                                                                                                                                                                                                            

<3> Not available.                                                                                                                                                                                                                                           

Civil Service

Mr. Ralph Howell : To ask the Chancellor of the Exchequer if he will give figures for 1979-80 and each subsequent year on (a) the cost of the civil service and (b) the average cost for each civil servant ; and if he will break down the average cost for each civil servant into pay, national insurance, superannuation, and other costs such as office space, heating, lighting, car allowance, travel allowance, etc.


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Mr. Norman Lamont [holding answer 21 May 1990] : Civil service running costs control was introduced only in 1986-87 and these costs have not been recorded to the level of detail requested. Due to coverage changes, comparable figures prior to 1980-81 are not available, and those for the years prior to 1986-87 have had to be estimated to the nearest £50 million. Table 1 sets out total running costs on current coverage, the number of full-time staff covered and the cost per head for the year indicated.


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|c|Table 1|c|                                                                                                               

                                    |1980-81|1981-82|1982-83|1983-84|1984-85|1985-86|1986-87|1987-88|1988-89|1989-90        

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

Departmental running costs in £                                                                                             

  million<1>                        |6,800  |7,700  |8,400  |9,650  |10,200 |10,700 |11,352 |12,009 |12,698 |13,680         

Average full-time staff included in                                                                                         

  running costs<2> of which:        |712,200|693,900|675,100|654,900|639,300|633,700|634,700|622,500|608,000|602,900        

  Civil Service                     |625,600|608,700|590,900|571,400|556,300|550,600|551,600|540,300|527,200|525,700        

  Armed Forces                      |58,000 |58,000 |58,000 |58,000 |58,000 |58,000 |58,000 |57,000 |56,000 |53,000         

  Northern Ireland Civil Service    |28,600 |27,200 |26,200 |25,500 |25,000 |25,100 |25,100 |25,200 |24,800 |24,200         

Running costs £ per head            |9,548  |11,097 |12,443 |14,735 |15,955 |16,885 |17,886 |19,292 |20,885 |22,690         

<1>Departmental running costs comprise pay and national insurance costs, personnel overheads (including travel allowances), 

accommodation costs, office and other services. They do not include notional accruing pensions liability, pensions in       

payment or capital expenditure.                                                                                             

<2>Figures for average levels of full-time staff in post across the year. They exclude staff in trading funds for example   

HMSO, and other areas now exempted from gross running cost control (Cm. 1021 Ch. 21.3.16 refers). Although most of the      

armed forces are also outside running costs, those personnel engaged in headquarters and support activities are included.   

Table 2 shows the average man-year cost for the years from 1986-87 when casual staff and overtime are added, and analyses the cost by major components.


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|c|Table 2|c|                                                      

                           |1986-87|1987-88|1988-89|1988-89        

                           |£      |£      |£      |£              

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

Running costs per man year |15,532 |16,851 |18,172 |19,470         

Comprising:                                                        

  Pay costs                |9,874  |10,751 |11,633 |12,338         

Personnel overheads        |1,276  |1,456  |1,516  |1,580          

Accommodation costs        |1,867  |1,938  |2,181  |2,501          

Office services                                                    

  (eg telecommunications)  |1,222  |1,379  |1,416  |1,584          

Other services                                                     

  (eg contract services)   |1,293  |1,327  |1,426  |1,467          

Public Sector Labour Costs

Mr. Ralph Howell : To ask the Chancellor of the Exchequer if he will give the latest figures available for the total annual cost and the average annual cost of full-time equivalent posts in (a) the National Health Service, (b) the civil service, (c) local government and (d) all remaining public sector work forces, includingnationalised industries ; and if he will break down the average cost for a full-time equivalent post into pay, national insurance, superannuation and other costs.

Mr. Norman Lamont [holding answer 21 May 1990] : Figures for the total annual cost and the average annual cost of full-time equivalent posts in the civil service, together with an analysis of average civil service man-year costs is given in another question tabled by my hon. Friend which I am also answering today. Comparable information for the National Health Service, local government and all remaining public sector work forces is not available.

The CSO publication "United Kingdom National Accounts" shows expenditure on income from employment (wages and salaries, including employers' contributions to national insurance and superannuation) for local authorities and public corporations in table 2.5. For the National Health Service this information is shown under "Health" in table 9.4.

Information on the number of employees on a full-time equivalent basis in each sector is given in an article in Economic Trends, December 1989 edition.

Any broad averages of per capita remuneration costs derived from these sources must be interpreted with great caution. Cost and employment figures are subject to differences in definition and coverage.

Public Appointments

Mr. Grocott : To ask the Chancellor of the Exchequer if he will list the full-time and part-time public appointments for which he is responsible, together with the salary and the date when each appointment is due for renewal.

Mr. Ryder [holding answer 23 May 1990] : Details of appointments made by the Treasury are published annually in "Public Bodies" and "Women into Public Appointments". "Public Bodies" is available in the Library of the House. The latest edition of "Women into Public Appointments" is to be published next month. A copy will be placed in the Library.


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Education, Police and Fire Services

Mr. Latham : To ask the Chancellor of the Exchequer, pursuant to his answer to questions from the hon. Member for Bedfordshire, North (Sir T. Skeet), of 27 April, Official Report , columns 355-56 , if he will break down the figures given for the effect on (a) income tax and (b) value added tax of transferring services from local government to central Government between (i) education, (ii) police and (iii) fire.

Mr. Norman Lamont [holding answer 23 May 1990] : Pursuant to my reply to my hon. Friend the Member for Bedfordshire, North (Sir T. Skeet) of 27 April, the total costs of education, the police and the fire service (including civil defence) in 1990-91 would be around £18 billion, £5 billion and £1 billion respectively, if local authorities spent in line with total standard spending in England and Wales and total current expenditure in Scotland. If this expenditure were transferred to central Government, with no change to revenue support grant and specific grants for the police and fire service eliminated, this would imply additional expenditure of around £18 billion on education, £2.4 billion on police and £1 billion on fire and civil defence. These sums are equivalent to increases of around 12p, 1 p and p respectively in the basic rate of income tax or to increases of 9, 1 and percentage points respectively in the VAT rate.

Income

Mr. Meacher : To ask the Chancellor of the Exchequer if he will publish in the Official Report a table giving the percentage increase in (a) income from employment, (b) income from self-employment, (c) rent, dividends and interest, (d) social security benefits and (e) personal disposable income, between 1978-79 and 1989-90, giving the contribution of each towards personal disposable income.

Mr. Norman Lamont [holding answer 24 May 1990] : Estimates in respect of the first quarter of 1990 will be published in late June. The most up-to-date comparison available, for calendar years 1978 to 1989, gives the following percentage increases and percentages of personal disposable income :


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                              PerceAs a percentag

                              changof personal<1>

                              1989 disposable    

                                   income        

                                  |1978|1989     

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

Income from employment       |+183|87  |82       

Income from self-employment  |+255|12  |14       

Rent, dividends and interest |+258|11  |13       

Social security benefits     |+191|14  |13       

Personal disposable income   |+202               

<1>Personal disposable income is total personal  

income less taxes, social security contributions 

and certain transfer payments.                   

ENERGY

Overhead Power Cables

Ms. Walley : To ask the Secretary of State for Energy what assessments have been made of the environmental hazards of overhead power cables for those who live directly beneath ; and if he will make a statement.

Mr. Baldry : I understand there has been a very small number of cases over many years of overhead line conductors breaking and falling across houses without causing any injury.

Any electrical conductor, whether forming part of an overhead line, underground cable, or the wiring and appliances in the home creates an electric and magnetic field in its vicinity. Some scientists have claimed that these fields affect human health. Research on this has been going on worldwide for over 10 years and to date has not identified any serious risk.

In the United Kingdom a major research programme is continuing which is being funded and carried out by the National Grid Company, previously part of the CEGB, mostly using independent laboratories.

Nuclear Electric

Mr. Dobson : To ask the Secretary of State for Energy if he will list those matters relating to the work of Nuclear Electric on which it is his policy to answer parliamentary questions ; and how this differs from his former policy in relation to the work of the Central Electricity Generating Board.

Mr. Wakeham : My policy is unchanged. Questions which relate to the operational management of Nuclear Electric plc remain a matter for the company.

Insulation

Mr. Dobson : To ask the Secretary of State for Energy what is his Department's estimate of the saving in electricity demand which would result from insulation to the highest standards being advocated by his Department of (a) 33 per cent., (b) 50 per cent., (c) 66 per cent., (d) 75 per cent. and (e) 90 per cent. of all homes in England and Wales.

Mr. Wakeham : A recent estimate has indicated that if all cost- effective insulation measures were applied, where relevant, to the housing stock in England and Wales 5.5TWh of electricity, used in space and water heating, could be saved. This represents 2.4 per cent. of the total electricty consumed in England and Wales. However, householders are likely to opt at least in part for greater warmth rather than simply saving energy.


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Nuclear Waste

Mr. Simon Hughes : To ask the Secretary of State for Energy (1) when the vitrification plant for the solidification of high-level radioactive waste, presently under construction at British Nuclear Fuels, Sellafield, will be completed and commissioned ; and if he will make a statement ;

(2) when the store for receipt of the sealed canisters of vitrified high- level radioactive waste at British Nuclear Fuels, Sellafield, will be completed and commissioned ; and if he will make a statement.

Mr. Baldry : I understand from British Nuclear Fuels plc that the vitrification plant will be completed during June this year and that commissioning is expected by January 1991. The vitrified product store has already been completed and commissioning is expected by October 1990.

Mr. Simon Hughes : To ask the Secretary of State for Energy what are the neutron and alpha/beta/gamma components of surface radiation dose equivalent rates, in milliSieverts per hour, for vitrified high-level waste containers for both Magnox and light water reactor/advanced gas-cooled reactor oxide fuels ; and if he will make a statement.

Mr. Baldry : I understand from British Nuclear Fuels plc that the vitrified waste will be produced and stored in stainless steel welded containers and the process carried out remotely behind concrete shielding. Average dose rates in areas to which the operators have access will be approximately 0.001 milliSieverts per hour.

Mr. Simon Hughes : To ask the Secretary of State for Energy what are the approximate overall dimensions, capacity and design features of an approved single vitrified high-level radioactive waste capsule or canister.

Mr. Baldry : I understand from British Nuclear Fuels plc that each vitrified high-level radioactive waste container is approximately 134 cm high and 43 cm in diameter and weighs approximately 75 kg. Its volumetric capacity is approximately 170 litres and each canister holds approximately 400 kg of vitrified waste.

These canisters are made from stainless steel and designed for easy lid placement and welding when full, for safe and reliable handling, and for the ability to withstand stresses arising during filling, handling and storage. The safety case for the on-site storage of these canisters has to be agreed by the Health and Safety Executive's nuclear installations inspectorate before the plant can be operated.

Mr. Simon Hughes : To ask the Secretary of State for Energy if he will give an estimate of the anticipated volume of high-level radioactive waste to be returned to customers overseas after reprocessing by British Nuclear Fuels Ltd. ; and if he will make a statement.

Mr. Baldry : I understand from British Nuclear Fuels plc that the latest estimate of high-level radioactive waste to be returned to overseas customers following repro-cessing under contracts with return of waste options is300 cu m.


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Energy Consumption

Mr. Flynn : To ask the Secretary of State for Energy if he will make it his policy to require all companies contracted to provide goods and services to his Department to conduct a regular energy audit of their operations.

Mr. Peter Morrison : Contractors will continue to be chosen on the basis of competitive tenders, and their efficient use of energy will lead to lower unit costs.

Mr. Dobson : To ask the Secretary of State for Energy if he will give the number of dedicated energy managers in his Department and the number of person years devoted to energy management in the latest year.

Mr. Wakeham : An energy manager in the Department's headquarters building, together with local energy managers in five other premises in which the Department is an occupant, expects to devote around one third of a man year of effort to energy management.

Mr. Dobson : To ask the Secretary of State for Energy if he will give the number of energy audits carried out in his Department in the last five years and for each audit a statement of its main conclusions.

Mr. Wakeham : An energy audit was not considered cost-effective in our former headquarters, because the Department had been under notice to quit since before 1985.

Mr. Dobson : To ask the Secretary of State for Energy if he will give for each year from 1978 the energy consumption, broken down by fuel, of the buildings occupied by his Department, expressing the figures in (a) cash terms, (b) 1978-79 money terms and (c) units of consumption for electricity in kilowatt hours, gas in therms, liquid fuel in litres and solid fuel in tonnes.

Mr. Wakeham : I regret that information on energy consumption in buildings occupied by my Department over this period is not available. Under new arrangements for direct billing this information will be available from 1990-91 onwards.

Mr. Flynn : To ask the Secretary of State for Energy when his Department last conducted a full energy audit of its own building stock.

Mr. Peter Morrison : The Department regularly monitors energy usage in its new headquarters building, of which it is the sole occupier and into which it moved in September last year. The building has an up-to-date electronic building energy management system. The Department is discussing with the Department of the Environment (Property Holdings) the potential for its commissioning energy management contracts aimed at improving overall energy efficiency on the civil estate, including my Department's headquarters building. These would include full energy audits. The Department has appointed energy managers to monitor energy consumption in all the other buildings on the common user estate where it is an occupant.


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Coal

Mr. Dobson : To ask the Secretary of State for Energy what is the average difference in percentage ash content between the medium sulphur coals presently being burned in British power stations and the coals of low -sulphur content.

Mr. Wakeham : The ash content of coal, as sold, typically varies up to about 20 per cent. There is no particular association with sulphur content.

Mr. Dobson : To ask the Secretary of State for Energy what is the estimated increase in the percentage of fine dust released to the atmosphere as a result of replacing existing coal used with low-sulphur coal by the percentage required to meet European Community standards.

Mr. Wakeham : The Government are committed to achieving the reductions in emissions specified in the EC large combustion plants directive. It is for the electricity industry to plan how it will achieve its share of these reductions.

Dust emissions from power stations are subject to limits set by Her Majesty's inspectorate of pollution. The limits set for existing power stations will continue to apply irrespective of the type of coal used.

Mr. Dobson : To ask the Secretary of State for Energy what assessment he has made of the environmental implications of the imports of low-sulphur coal, in respect of any consequential need for large storage dumps alongside power stations.

Mr. Wakeham : The Government are committed to achieving the reductions in emissions specified in the EC large combustion plants directive. It is for the electricity industry to plan how it will achieve its share of these reductions.

Any request for extensions to power stations would be subject to the consent procedure set out in section 36 of the Electricity Act 1989.

Oil Spillage, Mersey

Mr. Dobson : To ask the Secretary of State for Energy whether he will place in the Library a copy of the pipelines inspectorate's interim report on the release of oil into the Mersey from the Shell pipeline.

Mr. Wakeham : The pipeline inspectorate report into the failure of the Mersey oil pipeline on 19 August 1989 is being prepared under the instruction of the Health and Safety Commission. Subject to the agreement of the commission, I intend to publish the report.

Collieries

Mr. Allen : To ask the Secretary of State for Energy if he will discuss with the chairman of British Coal the scope for re-opening pits capable of producing low-sulphur coal which have been closed since 1984.

Mr. Baldry : Decisions on the operation of individual collieries in relation to market demand are a management matter for British Coal.

National Grid Company

Mr. Dobson : To ask the Secretary of State for Energy what is his Department's latest estimate of the value of the grid company.


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Mr. Wakeham : The value of the National Grid Company in the flotation of the 12 regional electricity companies will depend on a wide range of factors, including its profitability, capital structure and future prospects and market conditions at the time of the sale.

Departmental Savings

Mr. Rooker : To ask the Secretary of State for Energy what mechanisms exist in his Department for indentifying and tracking value-for- money savings in its operations.

Mr. Wakeham : The mechanisms are :

Annual plans and reports prepared by heads of division on their objectives, activities, use of resources and intended value for money improvements over the next public expenditure survey period ; A management plan for efficiency gains in administrative expenditure covering the same period ;

An administrative budgeting scheme under which budgets for the financial year ahead for staff and associated costs are delegated to senior line managers ;

Annual targets for and savings made in purchasing and stockholdings ; and

Annual programmes of work to be carried out by the Department's internal consultancy, inspection and review services.

All these mechanisms are subject to approval by and carried through under the general direction of the Permanent Under-Secretary and his immediate colleagues.


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