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Written Answers to Questions

Tuesday 18 December 1990

ATTORNEY-GENERAL

Investment Funds

Mr. Cousins : To ask the Attorney-General whether it is the practice of the Serious Fraud Office to monitor funds offering to guarantee above- market interest rates.

The Attorney-General : No. The role of the Serious Fraud Office is to investigate and prosecute serious and complex fraud. Regulation of investment business is the responsibility of the Securities and Investments Board together with the self-regulating organisations recognised by the Securities and Investments Board in accordance with the Financial Services Act 1986.

King's College (Baby Case)

Mr. Alton : To ask the Attorney-General when the Crown prosecution service received the file on the King's college baby case from Scotland Yard ; and when a decision will be taken on prosecution.

The Attorney-General : The Crown prosecution service is currently considering a report received from the Metropolitan police on 4 December 1990. That report requires careful consideration and further inquiries may be requested. It is not therefore possible at this stage to give a firm indication of when a decision on whether to institute criminal proceedings will be taken. Once a decision has been taken I will write to the hon. Member informing him of that decision.

ENERGY

Coal Mining Subsidence (Blight)

Mr. Rowlands : To ask the Secretary of State for Energy when he proposes to introduce legislation to give protection and compensation to householders and landowners whose homes and land are blighted by coal mining subsidence.

Mr. Heathcoat-Amory : The Government are committed to introducing a Bill to reform the arrangements for repair and compensation where property and land are damaged by coal mining subsidence. This will be done as soon as parliamentary time permits.

Electricity Privatisation

Mr. Dobson : To ask the Secretary of State for Energy when he expects to be able to give a regional breakdown of the applications made for shares in each of the regional electricity companies.

Mr. Wakeham : The information is not available in the form requested.

Mr. Morgan : To ask the Secretary of State for Energy, pursuant to his answer of 13 December, if he will provide


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statistics of what the number of applicant customers on the customer priority application forms is expressed as a percentage of all domestic customers in the franchise area for each of the 12 regional electricity companies of England and Wales.

Mr. Heathcoat-Amory : Statistics on the numbers of customers applying on customer priority application forms are not available on a basis consistent with statistics on the total number of domestic customers for each regional electricity company.

Mr. Dobson : To ask the Secretary of State for Energy if he has called for an analysis of who sold and bought regional electricity company shares on the first day of trading.

Mr. Wakeham : My Department will consider carefully the dealings in the regional electricity company shares during the early aftermarket with a view to applying this knowledge as appropriate to the generator flotation.

Mr. Morgan : To ask the Secretary of State for Energy if he will give his most up-to-date estimate of the percentage of total share capital allocated to overseas investors in the flotation of the 12 regional electricity companies which have been sold on the United Kingdom stock market in the first 48 hours of trading.

Mr. Heathcoat-Amory : No such estimate is available.

Mr. Dobson : To ask the Secretary of State for Energy who were the lead underwriters for the flotation of the regional electricity companies ; and whether they advised on the price of the shares.

Mr. Wakeham : The lead underwriters for the flotation of the regional electricity companies were J. Henry Schroder Wagg and Co. Ltd. which, among others, advised the Government on pricing of the shares.

Mr. Dobson : To ask the Secretary of State for Energy what is his total expenditure to date in the current year on electricity privatisation.

Mr. Wakeham : Total costs of privatisation will be published in the appropriation accounts once flotations have been completed. Expenditure to the end of March 1990 amounted to £18.7 million and provision has been made for £34.5 million for the current year. Latest forecasts of requirements for 1990-91 will be published as part of the spring supplementary estimates early next year.

Mr. Dobson : To ask the Secretary of State for Energy when he expects to be in a position to state how many applications for shares in one or more regional electricity companies were received from households involving more than one applicant.

Mr. Wakeham : The information will not be available in the form requested.

Unburnt Methane

Mr. Morgan : To ask the Secretary of State for Energy what is his most up-to-date estimate of the percentage loss to the atmosphere of unburnt methane from (a) industrial boilers, (b) commercial boilers, (c) domestic central heating boilers, (d) gas stoves and (e) gas fires.

Mr. Moynihan : The percentage leakage of unburnt methane from gas appliances is generally very low, but will depend on both the kind of device and the state of its maintenance.


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Work under way for the Department of the Environment at the Warren Spring laboratory to improve the national inventory of emissions includes the assessment of leakage from broad categories of gas usage, but figures for the appliances mentioned are not yet available.

Electricity Supply Industry

Mr. Morgan : To ask the Secretary of State for Energy when he expects to review the connection between the Office of Electricity Regulation and the Office of Fair Trading in relation to monopoly and competition issues in the electricity supply industry.

Mr. Heathcoat-Amory : I have no such plans. The respective functions of the Director General of Electricity Supply and the Director General of Fair Trading are set out in the legislation ; liaison is a matter for the two directors.

Mr. Morgan : To ask the Secretary of State for Energy what evidence he has of concert parties in the acquisition of shares in (a) South Wales Electricity or (b) any other of the 12 regional electricity companies.

Mr. Heathcoat-Amory : My Department is not aware of any evidence that two or more organisations have acted in concert to acquire shares in any regional electricity company.

Mr. Morgan : To ask the Secretary of State for Energy what discussions he has had with the Director General of OFFER regarding stake- building in the 12 regional electricity companies.

Mr. Heathcoat-Amory : None.

National Power and PowerGen

Mr. Dobson : To ask the Secretary of State for Energy when he will announce the price of the shares in National Power and PowerGen ; and when trading in those shares will commence.

Mr. Wakeham : The flotation of National Power and PowerGen will take place in February. The precise dates of the offer will be announced closer to the time.

Mr. Dobson : To ask the Secretary of State for Energy whether he intends to retain the same advisers for the sale of National Power and PowerGen as advised him on the sale of the regional electricity companies.

Mr. Wakeham : Most of my advisers for the sale of National Power and PowerGen have been appointed for some months. Some of them are the same as for the sale of the regional electricity companies, and some are different.

Regional Electricity Companies

Mr. Morgan : To ask the Secretary of State for Energy (1) what is his policy on mergers and takeovers of or among regional electricity companies ; and if he will make a statement ;

(2) what discussions he has had with the 12 regional electricity companies' chairmen regarding mergers and takeovers within the electricity distribution industry ;

(3) whether he expects to review the 15 per cent. maximum on individual shareholdings in the 12 regional electricity companies in the next five years ; and if he will make a statement.


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Mr. Heathcoat-Amory : The Government's policy with regard to the special share they hold in each of the 12 regional electricity companies is set out in section 1, chapter 1 of the prospectus for the 12 regional electricity companies dated 21 November 1990. Any merger or takeover would in addition be subject to the provisions of the Fair Trading Act 1973.

East Midlands Electricity

Mr. Dobson : To ask the Secretary of State for Energy what representations he has received about the delay in restoring electricity supplies by East Midlands Electricity.

Mr. Wakeham : I have received representations from a group of hon. Members and have agreed to meet them to discuss their concerns. I understand that the electricity supply situation in the east midlands has substantially improved.

Mr. Robert Malpas

Mr. Morgan : To ask the Secretary of State for Energy, pursuant to his reply of 23 November, Official Report, column 251, whether any restrictions have been placed on Mr. Robert Malpas accepting directorships in companies.

Mr. Heathcoat-Amory : I refer the hon. Member to the answer given by my hon. Friend the Member for Banbury (Mr. Baldry) on 30 November 1990, Official Report, column 517.

TRADE AND INDUSTRY

Financial Services

Mr. Cousins : To ask the Secretary of State for Trade and Industry when he expects to bring forward proposals to give the power to undertake prosecutions for regulatory offences to the Financial Reporting Council ; and whether he intends that power of prosecution to be limited to offences committed after the power was granted.

Mr. Redwood : I assume that the hon. Member has in mind the power under section 245C of the Companies Act 1985, as inserted by the Companies Act 1989, to authorise a person to apply to the court under section 245B of the 1985 Act for a declaration that the annual accounts of a company do not comply with the requirements of the 1985 Act, and for an order requiring the directors of the company to prepare revised accounts. I expect in the near future to be able to make a statutory instrument designating the Financial Reporting Review Panel Ltd, established under the auspices of the Financial Reporting Council, for those purposes, once satisfied about the matters set out in section 245C(1). If so, the panel will be able to exercise this power only in respect of accounts for years beginning on or after 23 December 1989 as a result of transitional provisions applicable to section 245B of the 1985 Act. Neither the Financial Reporting Council nor its subsidiary bodies expect to prosecute offences under the Companies Act.

Accountancy

Mr. Cousins : To ask the Secretary of State for Trade and Industry when he last discussed its disciplinary scheme with the institutions representing the accountancy profession.


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Mr. Redwood : My right hon. Friend has not discussed their disciplinary arrangements with representatives of the accountancy profession. However, before he can recognise supervisory bodies under part II of the Companies Act 1989 he will need to be satisfied that they have adequate arrangements and resources for the effective monitoring and enforcement of compliance with their rules, including those relating to the discipline and expulsion of members.

Companies Act 1989

Mr. Stevens : To ask the Secretary of State for Trade and Industry what plans he has to commence provisions of the Companies Act 1989.

Mr. Redwood : Yesterday I signed an order which commences certain provisions of the Act. Section 7, in so far as it inserts new section 233(5) into the 1985 Act--approval of defective accounts--and section 12-- revision of defective accounts--will commence on 7 January 1991 but will apply with respect to accounts for financial years commencing on or after 23 December 1989. Sections 125 and 127(1), (2) and (4)--delivery of documents to the registrar--will commence on 7 January 1991. Section 135-- the power to make regulations on orders imposing restrictions on shares-- will come into force on 7 January 1991. Paragraph 10 of schedule 19-- removal of restriction on transfer of shares--will commence on 7 January 1991. Sections 108 to 112--company's capacity ; ultra vires--and paragraph 11 of schedule 19--protection of company's members against unfair prejudice --will commence on 4 February 1991.

I have placed a copy of the order in the Library.

Deregulation Initiative

Mr. Sayeed : To ask the Secretary of State for Trade and Industry if he will make a statement on the future of the deregulation initiative.

Mr. Redwood : The deregulation initiative serves as a means of ensuring scrutiny of new and existing regulation and the proper assessment of compliance costs for business. Its next phase which I am announcing today focuses on a number of key areas, including some where Government Departments will be targeting attention on certain outdated or burdensome requirements which business has identified as causing difficulty.

In addition the specialist deregulation unit in my Department will support the initiative as a whole by taking the lead on certain general issues, and by continuing to work with business to identify regulatory burdens and to co-operate with departments to achieve good deregulatory outcomes on particular issues.

The new programme of work includes action in the following areas : continuing development and evaluation of disciplines and techniques for counting compliance costs to business and securing good regulatory practice across Whitehall--deregulation unit, DTI ; promotion of good regulatory practice in the European

Community--deregulation unit, DTI ; the administration of rules affecting the workplace, employment conditions, PAYE, national insurance ; new integrated guidance for employers and individuals involved in flexible forms of work--Department of Employment ; new integrated guidance for the establishment of workplace

creches--Department of Employment ; review of requirements for annual renewal of exemption certificates for certain NI contributors--


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Department of Social Security ; review scope for eliminating some of the differences in definitions of earnings and expenses for PAYE and NIC purposes--Department of Social Security and Inland Revenue. The regime for smaller businesses : reduction in reporting requirements for small company accounts--Department of Trade and Industry ; examination of scope for new forms of

incorporation--Department of Trade and Industry.

The small investor : simplification of requirements for prospectuses-- Department of Trade and Industry.

VAT compliance : review of VAT retail schemes with a view to simplifying requirements on business--Her Majesty's Customs and Excise.

Planning : review of procedures for designating simplified planning zones-- Department of the Environment.

Data Protection : reduce the burden of data protection legislation--Home Office.

Specific controls affecting certain types of business : review of selected business licensing requirements--deregulation unit, DTI ; review evening opening of betting offices--Home Office ; continue to seek ways of simplifying the operation of the Financial Services Act--Department of Trade and Industry ; review scope for streamlining the onshore petroleum licensing scheme--Department of Energy ; review the system of consents and licenses to work in tidal waters and designated areas of the continental shelf with a view to rationalisation--Department of Transport ; develop new safety controls on food producers and retailers in ways which minimise burdens on business--Ministry of Agriculture, Fisheries and Food, and Department of Health ; exempt vehicles from national type approval requirements to permit use on public roads for testing and publicity purposes--Department of Transport ; delegate to classification societies the approval of stability information for drilling units and ships which are mobile offshore support units--Department of Transport.

International trade and exports : improve immigration procedures at London airports to facilitate international business travel--Home Office ; further streamline export licensing procedures--Department of Trade and Industry ; review procedures for issuing E101 certificates for people working abroad-- Department of Social Security.

Exports (Iraq)

Mr. Caborn : To ask the Secretary of State for Trade and Industry what letters there are on the Iraqi contract, now known to be for a gun, between his Department and Sheffield Forgemasters ; and if he will list the dates of them.

Mr. Lilley [holding answer 11 December 1990] : There are two letters to my Department from Forgemasters Engineering dated 18 July 1988 and 2 August 1989, and two letters from my Department to Forgemasters Engineering dated 27 July 1988 and 3 November 1989.

Mr. David Young : To ask the Secretary of State for Trade and Industry what assistance was provided by his Department to British companies seeking to supply machine tools and propellants to Iraq in the late 1980s.

Mr. Lilley [holding answer 17 December 1990] : My Department provides assistance to exporters in many ways and Iraq was no different from any other market in this


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respect. Assistance from my Department does not, however, relieve exporters of the obligation to comply with export licensing requirements.

Mr. David Young : To ask the Secretary of State for Trade and Industry what advice was given by his Department to exporters of sensitive material to Iraq in the late 1980s.

Mr. Lilley [holding answer 17 December 1990] : Guidelines on sensitive exports to Iraq were published in October 1985.

OVERSEAS DEVELOPMENT

Latin America and Asia

Mr. Battle : To ask the Secretary of State for Foreign and Commonwealth Affairs what was his Department's response to COM (90) 176 "Guidelines for Co-operation with the Developing Countries in Latin America and Asia".

Mrs. Chalker : We warmly welcome the emphasis in the Asia/Latin America guidelines on help for the poorest countries ; on measures for the protection of the environment, including tropical forests ; on support for the fight against drugs ; and on human rights. The guidelines have been discussed at length--including in two Development Councils--since they were first produced in June 1990. Decisions on the financial package are likely to be taken shortly.

Mr. Battle : To ask the Secretary of State for Foreign and Commonwealth Affairs what is the financial value of development aid from the EC member countries to the Latin America and Asia developing countries (i) in total, (ii) direct financial aid, (iii) technical co-operation and (iv) food aid from 1979 to 1989.

Mrs. Chalker : Total net overseas development assistance to the developing countries of Asia and Latin America through the EC for the years 1979 to 1988, the latest year for which figures are available, is as follows :


          |£ million          

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

1979      |79.67              

1980      |83.72              

1981      |161.89             

1982      |124.96             

1983      |130.82             

1984      |188.77             

1985      |133.91             

1986      |156.67             

1987      |176.62             

1988      |233.78             

The United Kingdom share of this assistance was approximately 20 per cent.

The further breakdown requested by the hon. Member is not published by the European Commission.

PRIME MINISTER

Engagements

Mr. Harry Greenway : To ask the Prime Minister if he will list his official engagements for 18 December.

The Prime Minister : This morning I had meetings with ministerial colleagues and others. In addition to my duties


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in the House, I shall be having further meetings later today. This evening I hope to have an audience of Her Majesty the Queen.

Sea Birds

Mr. Wallace : To ask the Prime Minister what proposals Her Majesty's Government have to protect the feeding grounds of breeding sea birds in United Kingdom waters under European Economic Community directive 79/49 on the conservation of wild birds ; and if he will make a statement.

The Prime Minister : The Government's scientific adviser, the Nature Conservancy Council, is in the process of identifying the most important sea bird and gathering grounds in United Kingdom waters. It has published survey results for the North sea and the west of Britain. The final phase, now under way, will cover the English channel and south-west approaches. The Department of the Environment will consider the most appropriate measures to safeguard these areas when the NCC has completed its studies and has advised the Department accordingly.

Military Hospitals

Mr. Nellist : To ask the Prime Minister if, pursuant to his reply, 10 December, Official Report , column 261 , he will publish the number of beds, or bed spaces, at each of the military hospitals referred to.

The Prime Minister : These hospitals are equipped, manned and financed by the United States Government, to whom all inquiries should be directed.

HOME DEPARTMENT

Immigration

Mr. Cohen : To ask the Secretary of State for the Home Department on how many occasions the immigration department has reversed its original decision to refuse entry following representations since the new system commenced ; and what percentage of total cases where representations are made this represents.

Mr. Peter Lloyd : The information requested is not available centrally and could be obtained only at disproportionate cost.

Overseas Voters

Mr. Foulkes : To ask the Secretary of State for the Home Department if he will give the total number of overseas voters registered for proxy votes as at the latest available date for the United Kingdom and for each constituency within the United Kingdom.

Mrs. Rumbold : A total of 1,237 overseas electors are included in the current electoral register, which remains in force until 15 February 1991. A breakdown of this figure by parliamentary constituency is not available. Lists of overseas electors who will be included in the 1991-92 register were published by individual electoral registration officers on 28 November. We shall make the figures known to the House in due course.


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Prisons

Mr. Cox : To ask the Secretary of State for the Home Department if he will list the prisons he has visited in England and Wales since his appointment.

Mr. Kenneth Baker : I have visited Her Majesty's prisons Gloucester and Wandsworth, and Her Majesty's prison and young offender institution Glen Parva. I shall be visiting a young offender institution later this week and have further visits to prison service establishments planned in the new year.

Income Tax Non-payment

Mr. Cousins : To ask the Secretary of State for the Home Department how many prisoners served a sentence in prison as a result of refusal to pay all or part of their income tax in each year from 1980 onwards.

Mrs. Rumbold : The information requested is no longer recorded centrally. Figures for persons received into prison service custody in the years 1980 to 1987 following committal for non-payment of income tax were published in table 6.3 of "Prison statistics England and Wales 1987"--Cm. 547--a copy of which is in the Library.

Durham Prison

Mr. Cousins : To ask the Secretary of State for the Home Department what was the capacity and the numbers of inmates in Durham prison on 26 November and 18 December.

Mrs. Rumbold : On both dates, the certified normal accommodation and operational capacity of Her Majesty's prison Durham were 651 and 951 respectively. On 26 November, 949 inmates were held. On Monday17 December, the latest date for which figures are available, 931 inmates were held.

Mr. Cousins : To ask the Secretary of State for the Home Department what was the daily cost of maintaining a prisoner in Durham prison in December 1990.

Mrs. Rumbold : Figures for December 1990 are not yet readily available. A full range of operating cost figures for 1989-90 have been published in appendix 6 of the "Report on the work of the Prison Department April 1989--March 1990"--Cm. 302--a copy of which is available in the Library. These indicate that the daily cost of maintaining a prisoner in Durham prison during that period was £37.14 per day.

Forgery and Counterfeiting

Mr. Cousins : To ask the Secretary of State for the Home Department how many cases have been brought under the Forgery and Counterfeiting Act 1981 in each year ; how many cases were successfully prosecuted each year ; and how many of such cases were based on the contents of directors' reports and company returns.

Mr. John Patten : The information on the number of prosecutions and convictions is given in the table. We cannot identify from the information held centrally the number of cases which were based on the contents of directors' reports and company returns.


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