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Column 137
Written Answers to Questions
Wednesday 20 February 1991
THE ARTS
Royal Opera House
Mr. Bowis : To ask the Minister for the Arts what representations he has received concerning Mr. Ewen Balfour ; and if he will make a statement on the public accountability of the Royal Opera house, Covent Garden in respect of matters for which he is responsible.
Mr. Renton : I have received one letter about Mr. Balfour from a member of the public as well as a copy of my hon. Friend's letter to Lord Sainsbury, chairman of the Royal Opera house. The Royal Opera house is a revenue client of the Arts Council and is therefore directly accountable to the Arts Council on matters relating to its artistic and financial performance. The council is, in turn, accountable to me for the efficient administration of its grant in aid. Grant allocations to individuals clients is a matter for the Arts Council.
NATIONAL FINANCE
Taxes and National Insurance
Mrs. Dunwoody : To ask the Chancellor of the Exchequer what is his most recent forecast for the proportion of non-oil gross domestic product that taxes and national insurance contributions will represent in 1990-91.
Mr. Maples : The autumn statement forecast was 37 per cent.
Election Expenses, Wrexham
Dr. Marek : To ask the Chancellor of the Exchequer, pursuant to his answer of Wednesday 13 February, Official Report, column 479, if he will detail the expenses of the Wrexham parliamentary constituency at the 1987 general election met from the Consolidated Fund under each of the subheads of the Returning Officer's Expenses Regulations 1987, SI 1987, No. 899.
Mr. Maples : The information is as follows :
|£
-----------------------------------------------------------
A1-III ARO's Fee |1,073.16
B1 Presiding Officers |4,225.00
B2 Poll Clerks |5,329.92
B3 Preparation of Poll Cards |603.66
B4 Clerical Payments |3,050.43
B5 Travel Expenses (ARO/DRO) |87.45
B6 Travel Expenses (Poll clerks and
Presiding Officers) |623.45
B7 Travel Expenses (Other staff) |340.20
B8 Printing of ballot papers |902.52
B9 Printing of poll cards |401.62
B10 Printing of notices |488.21
B11 Renting of buildings |2,537.89
B12 Adaptation of buildings |3,635.00
B13 Ballot boxes |-
B14 Conveyance of ballot boxes |35.00
B15 Stamping Instruments |19.50
B16 Copies of register |25.60
B17 Stationary, postage etc |1,014.67
|-------
Total |24,393.28
European Currency Unit
Mr. Teddy Taylor : To ask the Chancellor of the Exchequer why he has issued a public loan based on the European currency unit ; how much has been raised ; and what is the interest rate.
Mr. Maples : The issue of a bond denominated in ecu shows the importance the Government attach to the strengthening of London's leading position in this growing market and demonstrates our commitment to the development of the ecu. The offer is for 2.5 billion ecu. The bonds carry a coupon of 9er cent. priced at par.
Mr. Teddy Taylor : To ask the Chancellor of the Exchequer what consultation he has had with the institutions of the EC about his decision to raise a loan in European currency units.
Mr. Teddy Taylor : To ask the Chancellor of the Exchequer for what purposes his new European currency unit loan will be used.
Mr. Maples : The United Kingdom Government's2 billion ecu issue shows the importance we attach to strengthening London's leading position in this growing market and demonstrates our commitment to the development of the ecu. The proceeds will be added to our gold and foreign currency reserves.
Capital Gains Tax
Mr. David Shaw : To ask the Chancellor of the Exchequer what information he has on the rates of capital gains tax in EC and G7 countries and the Soviet Union.
Mr. Maude : The latest available information on EC and G7 countries is given in the table, which is supplemented by notes. No information is available on capital gains tax in the Soviet Union.
Countries have widely differing procedures for calculating the taxable proportion of a gain, and in many cases rates of tax depend on the type of asset on which the gain is made and the period for which the asset has been held. In most EC and G7 countries the gains of individuals and companies are added to income and taxed at the ordinary income or corporation tax rate as appropriate, but various reliefs and exemptions may apply.
The majority of these countries have no equivalent to indexation which substantially reduces the effective rate of tax in the United Kingdom and Ireland. Some countries have no equivalent of the £5,000 annual exemption in the United Kingdom. Where there is such an exemption, it is generally very much lower than in the United Kingdom.
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Nominal rates of tax on gains of
Country |individuals |Companies
|Per cent. |Per cent.
------------------------------------------------------------------------------------
EC
Belgium |0-33<1> |41<2>
Denmark |exempt or 22-68<3> |50
France |16 or 5-56.8<4> |34<5>
Germany |19-53 |50
Greece |exempt or 10-25<6> |46
Ireland |30-50<7> |30-50<7>
Italy |10-50<8> plus |36 plus<9>
|16.2 local tax |16.2 local tax
Luxembourg |10-56<10> |34 plus local tax
|(7.2-12)
Netherlands |35.75-60<11> |35
Portugal |exempt or 10<12> |36.5
Spain |25-56 |35
United Kingdom |25 or 40<13> |25 or 35<13>
Other G7
Canada |17-29<14> plus |38 plus<14>
|provincial tax |provincial tax
Japan |10-50 plus
|local taxes 5-15<15>|taxes 17-20
USA |15 or 28<16> |15-34 plus<16>
|plus state tax |state tax
<1> Gains are generally exempt, but some speculative gains are taxed at up to 33
per cent.
<2> Some gains are exempt and long-term gains are taxed at 20.5 per cent.
<3> A special flat rate of 50 per cent. applies to investment gains if the seller
has a "substantial interest" in the company.
<4> The 16 per cent. rate applies to some gains including those on the sale of
certain unquoted shares and shares which constitute a substantial interest in a
company.
<5> Some long-term corporation gains are taxed at lower rates of 19 or 25 per cent.
<6> Gains on moveable assets, including shares, are not taxed. Gains on immovable
assets are subject to capital gains tax at varying rates depending on period for
which asset was held.
<7> Rates depend on period for which asset was held.
<8> Gains only taxed if deemed to be derived from business assets sold within five
years of date of acquisition.
<9> Corporate gains not taxed if allocated to a special reserve or are reinvested
within two years.
<10> Gains on sale of immovable property held between two and 10 years are taxed at
half the average rate on the individual's total income.
<11> Gains on sale or private assets are exempt.
<12> Only 50 per cent. of the gain on some types of asset is subject to tax.
<13> The charge is confined to post-March 1982 indexed gains. Individuals are
exempt from tax on gains not exceeding £5,000.
<14> Three quarters of post-1971 gains are included in income and taxed at
appropriate rates. Provincial rates vary. Rates in Ontario, the most populous
province, are 53 per cent. of federal income tax for individuals and 10 to 15.5 per
cent. of gains for corporations. For individuals there is a cumulative exemption on
gains up to a lifetime limit of $100,000.
<15> Gains by individuals taxable only if deemed to be business transactions.
Most states impose a state tax on both individuals and companies. In California, the most populous state, the top rate of 9.3 per cent. produces effective maximum rates of approximately 34 per cent. for individuals and 40 per cent. for companies.
Civil Service Relocation
Mr. Devlin : To ask the Chancellor of the Exchequer if he will make a statement on the Government's policy on the relocation of Government Departments from London to the regions.
Mrs. Gillian Shephard : I refer my hon. Friend to the answer I gave on 23 January 1991, at columns 217-18, to my hon. Friend the Member for Gedling (Mr. Mitchell).
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Manufacturing Trade
Mr. O'Hara : To ask the Chancellor of the Exchequer what is the cumulative total of annual manufacturing trade balance of payments deficits between (a) 1975 to 1979 and (b) 1979 to 1990.
Mr. Maples : The latest information is available in table A9 of the monthly review of external trade statistics and its annual supplement, available in the Library of the House, or on the Central Statistical Office database, which may also be accessed through the Library.
Overseas Trade Statistics
Mr. Ian Taylor : To ask the Chancellor of the Exchequer what action he intends to take to ensure that overseas trade statistics will be published and available following the agreement of the House of Commons (Services) Committee that a return of statistics relating to overseas trade need no longer be laid before the House.
Mr. Maples : Following consultation with the House authorities and with the approval of the House of Commons (Services) Committee, it has been agreed to cease the requirement for overseas trade statistics (OTS) to be laid before the House.
The OTS will continue to be published by HMSO for the Central Statistical Office as a monthly and annual business monitor, (MM20 and MA20) "Overseas Trade Statistics", copies of which are and will continue to be available in the statistical section of the Library (and by green demand forms from the Vote Office). Summary information held on the CSO's database in the form of time-series can also be obtained by the Library.
Third World Debt
Mr. Tom Clarke : To ask the Chancellor of the Exchequer what is the current total of outstanding debt owed to the United Kingdom by third world countries.
Mr. Maples [holding answer 11 February 1991] : The total amount of debt owed to the United Kingdom Government by developing countries is currently about £7.3 billion.
Mr. Tom Clarke : To ask the Chancellor of the Exchequer what is the current annual value to the United Kingdom of debt interest payments from the third world.
Mr. Maples [holding answer 11 February 1991] : The United Kingdom Government received about £150 million in interest on outstanding debt from developing countries in 1989-90.
Inland Revenue Office, Glenrothes
Mr. McLeish : To ask the Chancellor of the Exchequer if he will outline (a) the number of jobs to be created by the opening of a new Inland Revenue office at Saltire house in Glenrothes, (b) how many jobs will be recruited locally and (c) what steps are being taken to advertise and recruit local staff.
Mr. Maude [holding answer 12 February 1991] : (a) It is not possible at present to specify the exact number of new jobs that will eventually arise. The office will have 45 staff by April this year and will build up, mainly from
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January 1992, towards full staffing in the second quarter of 1992. On current planning assumptions it is expected that there will be up to some 250 part-time and full-time jobs at that time.(b) Most of the staff that are setting up the office have been transferred from nearby Inland Revenue offices. However, about 20 per cent. of those in post by April this year are expected to be new recruits from the local area, and it is planned that most of the additional staff required subsequently will be obtained as far as possible by local recruitment.
(c) The recruitment will be carried out in accordance with the guidelines laid down by the Civil Service Commission for all Government Departments. The Inland Revenue will notify the local careers office and job centre about the posts and will consider advertising in the local press as necessary.
Mr. McLeish : To ask the Chancellor of the Exchequer what plans he has to open a new Inland Revenue office at Saltire house in Glenrothes ; and if he will make a statement.
Mr. Maude [holding answer 12 February 1991] : The Inland Revenue opened a new office at Saltire house in Glenrothes on 7 January 1991. The office is one of a number of new Inland Revenue offices opening throughout the United Kingdom in 1991 and early 1992. They will handle claims for repayments of tax, most of which will arise from the change in the taxation of interest from banks, building societies and other deposit- takers that comes into effect on 6 April 1991.
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Investment
Dr. David Clark : To ask the Chancellor of the Exchequer if he will give the figures for investment in industry by sector in cash and real terms for each year from 1979 until the most recent period ; and if he will make a statement.
Mr. Mellor [holding answer 18 February 1991] : The latest estimates of the volume of investment by manufacturing industry were published in the CSO press notice "Capital Expenditure : Provisional Estimates for Q4 1990" on 14 February, available in the House of Commons Library. The most up-to-date estimates for other industries may be obtained from the CSO databank, a collection of macro-economic time series in computer-readable form to which the Library has direct access.
Business investment reached an all-time high in 1989--53 per cent. higher than its 1979 level.
Oil Tax
Mrs. Beckett : To ask the Chancellor of the Exchequer what was the total tax on North sea oil production, including royalties, paid by oil companies monthly from August 1989 to the present time ; and if he will include any other revenues from petroleum products in that total.
Mr. Maples : The table shows tax receipts on North sea production and other taxes on petroleum products.
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£ million
|Tax on North sea|Hydrocarbon oil |VAT on petroleum
|production |duties |products
|(quarterly)
-------------------------------------------------------------------------------------
August 1989 |318 |747 |-
September 1989 |205 |739 |290
October 1989 |357 |708 |-
November 1989 |68 |765 |-
December 1989 |252 |735 |290
January 1990 |193 |698 |-
February 1990 |85 |710 |-
March 1990 |679 |708 |290
April 1990 |89 |851 |-
May 1990 |87 |802 |-
June 1990 |-15 |839 |320
July 1990 |88 |813 |-
August 1990 |106 |847 |-
September 1990 |489 |817 |340
October 1990 |517 |776 |-
November 1990 |313 |804 |-
December 1990 |-145 |802 |-
Taxes on North sea production include royalties, petroleum revenue tax and North sea corporation tax before ACT set-off. Receipts of hydrocarbon oils duties are published by the Central Statistical Office in "Financial Statistics". The figures for VAT on petroleum products are estimates, based on quarterly consumers' expenditure data.
Departmental Expenditure
Mr. Leighton : To ask the Chancellor of the Exchequer if he will set out in the Official Report the reasons for the regional per capita distribution of departmental expenditure shown in annex 2 of the first report of Session
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1990-91 from the Treasury and Civil Service Committee on the 1990 autumn statement--House of Commons Paper No. 41.Mr. Mellor : Responsibility for allocation of departmental expenditure between regions lies with individual Departments. Questions about variations in expenditure between regions are matters for the responsible Department.
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Savings
Mr. David Shaw : To ask the Chancellor of the Exchequer if he will publish an analysis of United Kingdom savings totals by type of investment or investment product for the most recent three years for which figures are available.
Mr. Mellor : The table gives, for the period 1987-1989, the latest estimates of amounts invested--inflows net of realisations--by the United Kingdom personal sector in a range of financial instruments which are used to a considerable degree, if not exclusively, as repositories of savings. It is not possible to quantify total savings with precision because of the dual-purpose nature of many of these instruments ; equally, other forms of asset, such as property, may at times be regarded by their owners as having a "savings" aspect as well as their primary function.
|1987 |1988 |1989
|£ million|£ million|£ million
--------------------------------------------------------------------------
Life assurance and
pensions |21,700 |22,396 |30,482
National Savings |2,439 |1,409 |-1,520
Building society deposits |13,635 |20,165 |17,461
Sterling time deposits with
United Kingdom banks 771 8,092 10,968
Unit trusts units |3,239 |-248 |-719
British government
securities |1,826 |-3,633 |-3,088
United Kingdom company securities |-9,850 |-12,233 |-18,398
Statistical series measuring the personal sector's net acquisition of these and other financial assets are published in the CSO's "Financial Statistics" and can also be found on the CSO database which is accessible through the Library.
Composite Rate Taxation
Mr. Lawson : To ask the Chancellor of the Exchequer what is his estimate of (a) the loss of revenue and (b) the increase in administration costs arising from the abolition of the composite rate of tax in the 1990 budget.
Mr. Norman Lamont In principle composite rate tax would produce the same yield as the system which is replacing it, but there are behavioural and timing effects which affect receipts. An estimate of the effect on receipts was given in the Financial Statement and Budget Report 1990-91. An updated estimate will be published in this year's Financial Statement and Budget Report.
The estimated increases in the Inland Revenue's administration costs in the current year and the next three years are approximately £55 million in 1990-91, £165 million in 1991-92, £110 million in 1992-93 and £90 million in 1993-94.
Exchange Rates
Mr. Shore : To ask the Chancellor of the Exchequer whether, if the pound sterling reaches its floor within the ERM, there is any limit to the extent of funds which would be made available to support it from the central banks.
Mr. Norman Lamont [holding answer 19 February 1991] : I refer the right hon. Gentleman to the reply my right hon. Friend the former Chancellor of the Exchequer gave him on 22 October 1990, Official Report, columns 9-10.
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EDUCATION AND SCIENCE
Advisory Body for the Research Councils
Mr. Butler : To ask the Secretary of State for Education and Science if he will state the purpose of the ABRC's flexibility margins.
Mr. Alan Howarth : When my right hon. and learned Friend announced the allocation of the science budget for 1991-92, and of the planning figures for 1992-93 and 1993-94 on 24 January, Official Report columns 286- 87, he indicated that £39 million and £60 million remained unallocated in the latter two years and that he was expecting further advice on the distribution of those sums from the Advisory Board for the Research Councils in the spring. By that time the board will have received and considered the programme plans for the period 1992-93 to 1994-95 from each of the funded bodies.
CERN
Mr. Butler : To ask the Secretary of State for Education and Science if he will state the reasons for the unpredicted rise in the British subscription to CERN.
Mr. Alan Howarth : The CERN budget for the forthcoming year is finalised each December by the CERN council, on which the United Kingdom is represented. Each member state's contribution is determined on an agreed formula based on relative GNP. The likely level of the United Kingdom subscription is therefore known in advance of the preparation of Supply estimates each year. The exact amount due is finalised during the year in question in the light of current United Kingdom/Swiss exchange rates and other relevant factors.
As my reply to my hon. Friend on 4 February 1991, Official Report, columns 8-9, showed, the United Kingdom's subscription to CERN has in fact been reduced since 1987-88.
Secondary School Pupils
Mr. Ian Taylor : To ask the Secretary of State for Education and Science what is the cost of educating a secondary school pupil in (a) Surrey, (b) Kingston and (c) Sutton ; what is the inter-authority recoupment payment between those authorities in respect of secondary pupils ; and what provision is made to ensure that a school enjoys the full benefit of inter-authority recoupment payments which are made in respect of out-county pupils.
Mr. Fallon : In 1988-89, the latest year for which data are available, the school-based spending per secondary school pupil was £1,635 in Surrey, £1,905 in Kingston-upon-Thames and £1,630 in Sutton. Inter-authority recoupment rates are determined by local authorities and information on actual payments between individual authorities is not collected centrally. However, the inter-authority recoupment rates recommended by local authority associations for secondary school pupils in 1988-89 were £1,982 per pupil aged under 16 and £3,064 per pupil aged over 16 educated in the outer London area, which includes Kingston-upon-Thames and Sutton ; and £1,889 per pupil under 16 and £2,920 per pupil over 16 educated in the London fringe area, which includes Surrey. These payments are to cover both school-based and central local education authority spending. Under
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authorities' schemes for the local management of schools, a school receives the same funding for all pupils of the same age--with a different weighting for different subjects in sixth forms under some authorities' schemes--whether such pupils are the financial responsibility of the providing or a different authority.Higher Education
Mr. Anthony Coombs : To ask the Secretary of State for Education and Science whether he intends to hold back grant from the higher education funding councils next year in respect of pay settlements for lecturers in higher education.
Mr. Kenneth Clarke : Yes. My Department has written to the two higher education funding councils to convey my decision to hold back a proportion of grant for 1991-92 to be released in the event of pay settlements satisfying specified conditions. The sums withheld are £22 million in the case of the Universities Funding Council and £134 million for the Polytechnics and Colleges Funding Council. Copies of the letters are being placed in the Library of the House.
NORTHERN IRELAND
Nursing Homes
Rev. William McCrea : To ask the Secretary of State for Northern Ireland how many beds are available in public nursing homes for the elderly ; and what was the equivalent number five years ago.
Mr. Hanley : None. The health and social services boards have never been involved in the provision of nursing homes in Northern Ireland.
Rev. William McCrea : To ask the Secretary of State for Northern Ireland how many (a) private nursing homes and (b) private residential homes there are in each of the health board areas in Northern Ireland.
Mr. Hanley : The information is as follows :
(a) At 31 December 1990, the latest date for which information is held centrally, the number of registered nursing homes in Northern Ireland was as follows :
Board |Private homes |Voluntary homes ---------------------------------------------------------------- Eastern |62 |4 Northern |50 |2 Southern |24 |5 Western |17 |- Board |Private homes |Voluntary homes Eastern |66 |30 Northern |37 |9 Southern |21 |3 Western |<1>3 |<1>5 <1> The figures supplied in respect of the Western Board relate to 31 March 1989 as the information relating to 31 March 1990 is not yet available.
(b) At 31 March 1990, the latest date for which information is held centrally, the number of registered homes for persons in need was as follows :
Board Private homes Voluntary homes
Eastern 66 30
Northern 37 9
Southern 21 3
Western 3 5
The figures supplied in respect of the Western Board relate to 31 March 1989 as the information relating to 31 Maarch 1990 is not yet available.
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WALES
Science Parks
Mr. Barry Jones : To ask the Secretary of State for Wales how many science parks there are in Wales.
Sir Wyn Roberts : There are currently seven science parks in Wales, Aberystwyth science park, Cardiff business technology centre, Menai technology enterprise centre--MENTEC--Newtech science park, University College of Swansea innovation centre, Wrexham technology park and the Mid Glamorgan science park at Bridgend.
In addition, there are plans for the Imperial College science park at Duffryn, Gwent.
Company Losses
Mr. Barry Jones : To ask the Secretary of State for Wales if he will list the companies, and the numbers involved, which have ceased trading, gone into receivership and announced redundancies in each of the counties of Wales since 1 June 1990.
Mr. David Hunt : Figures for company failures are maintained and published by the Department of Trade and Industry on an England and Wales basis. Separate official figures for Wales are not available. Provisional figures provided by the Department of Employment on notified redundancies in Wales during the period June to December 1990 are as follows :
|Numbers
--------------------------------
South Glamorgan |500
Mid Glamorgan |1,520
West Glamorgan |560
Gwent |911
Dyfed |137
Clwyd |520
Gwynedd |67
Powys |46
|---
Wales |4,261
Over the same period, Welsh Development International recorded 83 new inward investment projects for Wales promising capital investment of £327 million and more than 5,000 new jobs.
Lithotripsy
Mr. Barry Jones : To ask the Secretary of State for Wales when he expects to see the installation of lithotripters in north and south Wales for the use of NHS patients ; and if he will make a statement.
Mr. Nicholas Bennett : An all-Wales project group is presently considering the need for and specification of lithotripter facilities for Wales and appraising location options. The group is expected to report shortly.
Labour Statistics
Mr. Barry Jones : To ask the Secretary of State for Wales what is his estimate of the number of manufacturing jobs lost in Wales since 1 June 1990 ; and if he will make a statement.
Mr. David Hunt : Comprehensive information regarding jobs lost in the manufacturing industry in Wales is not
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available. There were 249,000 full-time and part-time employees in employment in the manufacturing sector in Wales--SIC 80 divisions 2-4--in June 1990, and 253,000 in September 1990, the latest month for which estimates are available.Industrial and Regional Development
Mr. Barry Jones : To ask the Secretary of State for Wales when he expects to meet the Assembly of Welsh Counties to discuss industrial and regional development.
Mr. David Hunt : No such meeting has been arranged.
Mr. Barry Jones : To ask the Secretary of State for Wales when he expects to meet the Committee of Welsh District Councils to discuss industrial and regional development ; and if he will make a statement.
Mr. David Hunt : I intend to meet the Council for Welsh Districts in due course to discuss its strategy document "Wales : A Land of Opportunity".
Farming
Mr. Ieuan Wyn Jones : To ask the Secretary of State for Wales what representation he has received from (a) the National Farmers Union in Wales and (b) Young Farmers Club representatives in Wales concerning the development of a co-ordinated marketing and processing structure for the livestock sector in Wales.
Mr. David Hunt : Invited comments have been received from the National Farmers Union in Wales on the United Kingdom's draft sectoral plans prepared in connection with EC regulation 866/90 on the marketing and processing of agricultural produce. No recent representations have been received from Young Farmers Club representatives in Wales.
Mr. Ieuan Wyn Jones : To ask the Secretary of State for Wales whether he has any plans to make representations to the European Commission requesting the use of European structural funds to provide a co-ordinated marketing and processing structure for the livestock sector in Wales.
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