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Local Authority Borrowing
Mr. Allen : To ask the Chancellor of the Exchequer if he will take steps to remove local authority borrowing from the public sector borrowing requirement.
Mr. Allen : To ask the Chancellor of the Exchequer what is Her Majesty's Government's policy on allowing local authorities to borrow money in the open market.
Mr. Maples : Local authorities' powers to borrow money are set out in Part IV of the Local Government and Housing Act 1989. Within those constraints, there is no limit on the proportion authorities may borrow on the market.
Welfare and Social Security
Mr. Ian Taylor : To ask the Chancellor of the Exchequer what plans he has to propose the introduction into United Kingdom law of article 13(g) of the sixth directive of the European Community regarding the supply of goods and services linked to welfare and social security work.
Mrs. Gillian Shephard : Group 7, schedule 6 of the VAT Act 1983 reflects article 13A1(g) of the directive by allowing VAT exemption for the supply, otherwise than for profit, by a charity or public body of welfare services and of goods supplied in connection therewith.
Economic and Monetary Union
Mr. Leighton : To ask the Chancellor of the Exchequer what definition of real convergence is used for the purpose of policy development in respect of economic and monetary union.
Mr. Maude : A number of factors need to be taken into account when assessing the degree of economic convergence among member states of the Community. These include inflation differentials between member states, budget balances in member states, progress towards completion of the single market, and progress towards increasing labour market flexibility in member states.
Media Advisory Service
Mr. Redmond : To ask the Chancellor of the Exchequer whether the media advisory service has been made operational in connection with the Gulf crisis ; if he will name the chairman of the media advisory service ; and whether the Central Office of Information report entitled "A Plan for a Media Advisory Service : The No Win War" will be made available to the House.
Mr. Maples : There are no plans at present to activate the media advisory service in connection with the Gulf
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crisis. The chairman designate of the service has not yet been announced. The Central Office of Information report entitled, "A Plan for a Media Advisory Service : The No Win War", was intended for inter-departmental discussion and restricted in its circulation.Retail Prices Index
Mr. Parry : To ask the Chancellor of the Exchequer what effect the increase in duty on cigarettes in the 1990 Budget had on the retail prices index.
Mr. Maples : The increase in excise duties on cigarettes in the 1990 Budget added nearly 0.2 percentage points to the retail prices index, assuming that it was passed on in full by retailers.
Economic and Finance Council
Mr. Michael Morris : To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the latest meeting of the European Community Economic and Finance Council.
Mr. Maude : The ECOFIN Council met in Brussels on 17 December. The Minister of State for Corporate Affairs and I represented the United Kingdom.
Agreement was reached on the general principles which will form the basis of the system for excise controls after 1992. The raising of travellers' allowances was also discussed and it was decided that an agreement should be reached before 31 March 1991. Meanwhile significant progress was made in discussing derogations from the present limits for Denmark and Ireland. As a result, we understand that Ireland will substantially increase her limits on private travellers' duty paid purchases from 1 January 1991. This will be of considerable benefit to traders in Northern Ireland.
An agreement in principle to a common position on the Money Laundering Directive was also reached and, once the legal text has been satisfactorily finalised, this common position should now be formally adopted shortly. The proposed directive is due to take effect from 1 January 1993 and will assist member states in countering the laundering of profits from drug trafficking. Aid to the Soviet Union and eastern Europe was discussed in the light of agreements for food aid and other assistance reached at the European Council. A proposal to offer guarantees to the European Investment Bank, which would enable the bank to make loans to Czechoslovakia, Bulgaria and Romania, was also discussed. The Council agreed in principle to the participation of the Community in a loan to Czechoslovakia along with other members of the G24 and possibly the oil producing Arab states.
Discussion of the Investment Services Directive and of a proposal for a reinsurance pool for export credits to eastern Europe was postponed.
Value Added Tax
Mr. Hood : To ask the Chancellor of the Exchequer if there are any plans to harmonise VAT on children's clothing, food and books.
Mrs. Gillian Shephard : While the European Commission has made certain VAT harmonisation proposals, the Government have consistently made it clear that it does not consider centrally determined tax
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approximation necessary or desirable for completion of the single market. The United Kingdom's position is ultimately safeguarded, in that changes to EC tax law require the unanimous agreement of member states.North Sea Oil
Mr. David Young : To ask the Chancellor of the Exchequer if he will estimate the profits likely to accrue to the oil industry in the North sea arising from the increased price of oil.
Mr. Mellor [holding answer 17 December 1990] : Profits accruing to the oil industry in the North sea depend on many factors and it is not possible at this stage to assess the effect of higher oil prices with precision. However, in terms of broad magnitude the increase in net of tax profits in the second half of 1990 may be around £ billion.
ENERGY
Peat
Mr. Aitken : To ask the Secretary of State for Energy whether, in the light of current concern over peat extraction, his Department will reconsider the inclusion of peat on the Department's list of renewable energy sources.
Mr. Moynihan : Over the past few years my Department has undertaken some limited research and development into the use of peat as an industrial fuel covering both the technical aspects and market potential of peat. Our recent studies have concluded that for industrial applications peat is not an economic proposition and the only real market for peat as a fuel is in the domestic sector (the traditional use of peat in the Highlands and Islands of Scotland). There is therefore no justification for the Department of Energy to fund further research in this sector once the results of the present studies have been published. Some of the data obtained about peat as part of our research programme should make a useful contribution to the conservation activities undertaken by organisations such as the Nature Conservancy Council and Royal Society for Nature Conservation.
Energy Supply
Mr. Cryer : To ask the Secretary of State for Energy what is his Department's policy on promoting the use of recycled materials, renewable energies and combined heat and power schemes at (a) the energy technology support unit at Harwell and (b) other departmental establishments were relevant to his Department's activities.
Mr. Moynihan : The Government's policies for the use of recycled materials, renewable energies and combined heat and power are set out in the White Paper, "This Common Inheritance". My Department's policy is to stimulate the development and application of renewable sources of energy, including energy from waste, wherever they have prospects of being economically competitive and environmentally acceptable. In support of this policy my Department has a substantial, and increasing, research and development programme. My Department also actively promotes the wider use of combined heat and power wherever it is economic through our best practice programme.
Project management and guidance on technical aspects of these programmes is provided by the energy technology
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support unit at Harwell and the building research energy conservation support unit. There are no other relevant Department of Energy establishments.Thermonuclear Fusion Reactor
Dr. Thomas : To ask the Secretary of State for Energy what proposals he plans to put forward at the next European ministerial Research Council on 21 December on the international thermonuclear experimental fusion reactor project.
Mr. Heathcoat-Amory : There are no plans to discuss the international thermonuclear experimental reactor project at the next meeting of the European Research Council on 21 December.
Electricity
Mr. Dobson : To ask the Secretary of State for Energy (1) what is the average interruption of supply in minutes in the area of East Midlands Electricity in 1990 so far ;
(2) if he will list by electricity companies all interruptions of supply involving 10,000 consumers or more occurring on or after Friday 7 December indicating the commencement and conclusions of the interruptions in each case.
Mr. Wakeham : The information requested covers matters which are the responsibility of the regional electricity companies.
Mr. Dobson : To ask the Secretary of State for Energy when he, his officials or advisers first became aware that Welsh Water was to buy, was buying or had bought shares in South Wales Electricity.
Mr. Wakeham : My officials were informed on 13 December 1990 of the purchase of a stake in South Wales Electricity plc by Welsh Water plc.
Mr. Morgan : To ask the Secretary of State for Energy what discussions he had with the international stock exchange regarding the maximum percentage of share capital in the flotation of the regional electricity distribution companies that could be reserved for customers.
Mr. Heathcoat-Amory : The Government's stockbroking advisers, James Capel, discussed the degree of customer preference with the interntional stock exchange before the prospectus was published.
Mr. Dobson : To ask the Secretary of State for Energy whether he has investigated the first two days' trading of shares in South Wales Electricity ; and whether he will make a statement.
Mr. Morgan : To ask the Secretary of State for Energy if he has any proposal to debar Kleinwort Benson from acting on behalf of companies intending to acquire post-flotation stakes in the newly privatised electricity distribution companies, while it is still acting as his adviser on privatising the electricity industry.
Mr. Heathcoat-Amory : I am satisfied with the provisions governing conflict of interest in Kleinwort Benson Limited's contract as my adviser on electricity privatisation.
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Mr. Dobson : To ask the Secretary of State for Energy whether any of the firms advising him or his Department were allowed to participate in the buying or selling of the regional electricity company shares or advise or act as brokers to any third parties who did so participate.
Mr. Wakeham : In so far as the relevant firms are engaged in such business their activities are governed by provisions in their contracts concerning conflict of interest.
Mr. Morgan : To ask the Secretary of State for Energy what discussions he has had with Kleinwort Benson about potential conflict of interest in its advice to him on the privatisation of the electricity distribution companies and the advice it gave to other major investors on the acquisition of a stake in South Wales Electricity subsequent to its flotation on 11 December.
Mr. Heathcoat-Amory : I would refer the hon. Member to the answer that I gave him today in connection with Kleinwort Benson Limited's role as my adviser on electricity privatisation. I have no reason to believe that Kleinwort Benson Limited has acted otherwise than in accordance with the terms of its contract with regard to conflict of interest.
Electricity
Mr. Morgan : To ask the Secretary of State for Energy what percentage of applicants using (a) customer application forms and (b) public application forms were (i) unsuccessful in applying for shares in the regional electricity companies' flotation and (ii) also had their cheques cashed.
Mr. Heathcoat-Amory : Approximately 3 per cent. of people applying as customers did not receive an allocation in their supplying company. Where no allocation was made, cheques were returned without being cashed where practicable. The main case where this was not practicable was where people had made separate applications for a number of different companies on one application form. As each application has to be processed separately, no information is available as to the number of such forms which were entirely unsuccessful.
Similarly, as non-customers were able to apply for as many of the 12 regional electricity companies as they liked, no figures are available as to the number of such people who received no shares in any of the companies.
Mr. Morgan : To ask the Secretary of State for Energy what consultations he has had with the Director General of the Office of Electricity Regulation regarding mergers and takeovers involving the 12 electricity distribution companies.
Mr. Dobson : To ask the Secretary of State for Energy whether his Department was consulted on the appointment of a firm of parliamentary consultants by the regional electricity companies.
Mr. Dobson : To ask the Secretary of State for Energy why he has agreed to exclude the disposal of their whole retail interests by a regional electricity company from the real estate clawback arrangements covering the disposal of other property.
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Mr. Wakeham : I refer the hon. Member to the answer given to the hon. Member for Cardiff, West (Mr. Morgan) on 19 November at column 6.Mr. Morgan : To ask the Secretary of State for Energy when he next expects to review the structure of the electricity distribution industry of England and Wales ; and if he will make a statement.
Mr. Heathcoat-Amory : I have no such plans.
Mr. Morgan : To ask the Secretary of State for Energy when he next expects to review the role of Kleinwort Benson as his advisers on the electricity supply industry.
Mr. Heathcoat-Amory : I do not expect to review the role of Kleinwort Benson before the privatisation of the electricity supply industry in England and Wales is complete.
Mr. Morgan : To ask the Secretary of State for Energy what representations he has received regarding the cashing of cheques accompanying unsuccessful applications for shares in the 12 electricity distribution companies.
Mr. Heathcoat-Amory : The share information office and my Department have received a small number of representations on the presentation of cheques for unsuccessful applications. By today a substantial proportion of those applicants who have had cheques cashed should have received returned money cheques.
Mr. Morgan : To ask the Secretary of State for Energy what is his policy on mergers, takeovers and stake-building regarding the 12 newly privatised electricity distribution companies.
Mr. Heathcoat-Amory : I refer the hon. Member to the reply that I gave him on Tuesday 18 December 1990, Official Report, columns 97-98.
Mr. Dobson : To ask the Secretary of State for Energy whether any of the firms advising any of the regional electricity companies were allowed to participate in the buying or selling of regional electricity company shares or advise or act as brokers to any third parties who did so participate.
Mr. Wakeham : The terms under which the regional electricity companies employed advisors for the recent flotation are matters for the companies.
Mr. Morgan : To ask the Secretary of State for Energy what is his most up-to-date estimate of the amounts arising from the encashment of cheques of unsuccessful or scaled-down applications for shares in the 12 electricity distribution companies.
Mr. Heathcoat-Amory : The total value of all cheques cashed under the United Kingdom public offer was approximately £5.3 billion. Of this approximately £4.2 billion was repaid to the public as a result of scaled-down or unsuccessful applications. The remaining £1.1 billion represents the amount paid by the public as the first instalment for the shares sold to them.
Mr. Dobson : To ask the Secretary of State for Energy whether he, his officials or advisers had discussions with any retailing interests before deciding to exclude the disposal of the whole of their retail concern by a regional
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electricity company from the real estate clawback arrangements ; and whether there have been any such discussions since.Mr. Wakeham : Neither I nor my officials have had or are aware of any such discussions.
Mr. Morgan : To ask the Secretary of State for Energy if he has any plans to make an estimate, based on previous privatisations, of the proportion of the shares in each of the regional electricity companies that will be owned by the general public 12 months after flotation ; and if he will make a statement.
Opinion Surveys
Mr. Dobson : To ask the Secretary of State for Energy if he will list the surveys referred to in his answer of 17 December to the hon. Member for Holborn and St. Pancras.
Mr. Wakeham : The information requested is as follows :
1985
Cardiff Energy Action City Public Awareness Survey
Department of Energy Breakfast Specials' Postal Questionnaire and Analysis
Energy Efficiency and The Growth in the Energy Management Movement Industrial Energy Survey
Energy Saver Show 1985
Monergy' Campaign Evaluation--Domestic Consumers
Energy Efficiency Year Booklet Recall Survey
Monergy' Campaign Evaluation--Industry & Commerce
Energy Matters' Pilot Evaluation
Marketing of Waste Heat Recovery Systems
Monergy' TV Commercial Communication Check
1986
Consumer Attitudes to Heating Systems
Energy Booklet Follow-up Survey
Survey of Exploration and Appraisal Activity, 1986 and 1987 Direct Mail Research Test ( Monergy' Booklet)
Survey of the Impact of the EC Non-nuclear Energy R&D Programmes in the UK
Energy Labelling of Houses
Autumn Tracking (Energy Efficiency--Domestic)
Autumn Tracking (Energy Efficiency--Industrial)
1986 Monergy' Campaign Development
Monergy' Campaign Evaluation ; Domestic Sector--Stage 2 Energy Labelling of Houses (Householders)
Consumer Attitudes to Cavity Insulation
1987 Efficiency Scrutiny of Departmental Publications--Readers of "Energy Trends"Training for Energy ManagementUsers Perception of Offshore Supplies OfficePrivate Generation of Electricity (including an update on Heat and Power plants) Monergy' News ResearchPerformance Measurement of "FOCUS" JournalEnergy Saving Measures in the Home"Offshore Research Focus"-- Readership SurveyFenestration 2000The Integration of Energy Forestry into FarmingPublic Attitudes to Wind Turbines (Phase 1)The Severn Barrage-- Consultation Exercise No. 1 1988 Public Attitudes to Various Single Wind TurbinesMarketability of Solar House Design Monergy News 2' Evaluation ResearchEvaluation of EC Energy Demonstration Scheme in the
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UKAn Evaluation of the Cost Effectiveness of British Coal Enterprises Ltd.Monitoring and Targetting in the Paper Converting IndustryRenewable Energy in UK Publications ; Readership SurveyBuilding Research Establishment Conservation Support Unit : Study of the Market for Energy Efficiency Workshops in Local Authorities and Health AuthoritiesPublic Attitudes to Renewable Energy in the UK and Reactions to Schools' Touring DisplayPublic Attitudes to a 1MW Wind Turbine at RichboroughElectricity Privatisation--Initial Qualitative and Quantitative Research into Attitudes of the General PublicElectricity Privatisation-- Surveys to update Key AttitudesElectricity Privatisation--Initial Survey into Attitudes of Staff of the Regional Electricity CompaniesElectricity Privatisation--Qualitative Research into the Attitudes of Financial Advisors to the Public1989 Stand Performance and Audience Profile ReportEgyptian Oil Market-- Survey for the Offshore Supplies OfficeRenewable Energy AwarenessDomestic Energy Efficiency--Publications CheckEducation Sector ResearchEnergy Efficiency Office's Best Practice Programme--Energy Consumption Guide Surveys 1989-90Domestic Target Market StudyElectricity Privatisation-- Survey of Opinion LeadersPublications on Oil and Gas--The "Brown Book" Readers' SurveySurvey of British Coal's Notification ProceduresPublic Attitudes Towards Wind FarmsPublic Consultation to Establish Reaction to Results from the Severn Barrage projectElectricity
Privatisation--Qualitative Research into Possible Methods of Sale and Application FormsElectricity Privatisation--Quantitative Research into the Impact and Communication of the Regional Electricity Companies' Joint Corporate CampaignElectricity Privatisation--Qualitative Research into Perceptions of the Regional Electricity Companies and How They Should Be Described to the PublicElectricity
Privatisation--Quantitative Update of Key Investment Attitudes on a Regional BasisElectricity Privatisation--Qualitative Research into the Appeal of Various Incentive OptionsElectricity
Privatisation--Qualitative and Quantitative Investigation of Behaviour and Attitudes at the Time of Water Privatisation and the Implications for the Regional Electricity Companies
1990 Electricity Privatisation--Quantitative Investigation of Possible Investment Behaviour on a Regional BasisAttitude Survey in the Locality of the Windfarm at Delabole, CornwallRegional High Rise Case Studies (Scotland & Northern Ireland)Market Research into Cavity Wall Insulation in Existing Dwellings (Households)A Strategy for Energy Efficiency in the Retail SectorEnergy Campaign
EvaluationDomestic Publications Placement ResearchMarketability of Passive Solar Design in Non-domestic BuildingsElectricity Generators' ResearchAtomic Energy Authority Video ResearchRegional High Rise Case Studies (England & Wales)Market Research into Cavity Wall Insulation in Existing Dwellings (Local Authorities etc.)The Collection of Fuel Usage Data for Good Practice StudiesThe Markets for Renewable EnergyRenewable Energy Course Module for Tertiary Education Green Show' Attendance ResearchThe Potential for Low-Energy Lighting in Housing
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