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National Insurance
Mr. Tom Clarke : To ask the Chancellor of the Exchequer what would be the revenue yield in (a) the first year and (b) a full year, assuming this is introduced at the beginning of 1991-92, of extending national insurance contributions to all employee taxable benefits in kind, for employees in Great Britain and Northern Ireland who earn over £8,500, distinguishing between employee and employer contributions, listing the revenue from each benefit and assuming the abolition of the national insurance upper earnings limit.
Mr. Maude : The additional revenue for the United Kingdom in a full year at 1991-92 levels is shown in the
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table which gives the available analysis by type of benefit. The estimates are based on an employee contribution rate of 9 per cent. and an employer contribution rate of 10.4 per cent. The estimates are calculated using the taxable value of the benefits. The yield in the first year would depend upon the administrative arrangements made to collect the new charge.
Revenue yield<1>
Type of benefit |From |£ million
|employees |from
|employers
--------------------------------------------------------------------------
Car |400 |<2>0
Car fuel |40 |<2>0
Private medical insurance |40 |40
Home telephone |10 |10
Beneficial loans |20 |20
Other benefits |200 |230
|------- |-------
Total |710 |300
<1> For a full year at 1991-92 levels of income and benefit.
<2> These items are already subject to employer contributions.
ECOFIN
Mr. Burns : To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the latest meeting of the European Community's Council of Economic and Finance Ministers.
Mr. Maples : The Economic and Finance Council of the European Community met in Brussels on 16 December. I represented the United Kingdom with the Minister for Corporate Affairs.
The Council discussed the Portuguese Government's programme for economic convergence, and welcomed their ambitious targets for reducing inflation to a ceiling of 4 per cent. by the end of 1995, the general Government deficit to no more than 3 per cent. of GDP by 1995 and lowering the debt ratio. But the Council stressed that the achievement of these targets is highly dependent on the budget for 1992, the growth rate that is realised and the appropriate mix of policy instruments. The Council invited the Commission and the monetary committee to monitor the implementation of the programme and to report back to the Council before the end of 1992.
The Council confirmed the agreement in principle reached at the Foreign Affairs Council that morning on a new package of emergency food aid to the value of 200 mecu for Moscow and St. Petersburg, and, if appropriate, other cities. Of this aid, 100 mecu can be released immediately and a further 100 mecu following consultation of the European Parliament in mid January. The earlier proposals for a loan totalling 1.25 becu for three years was also formally adopted and it was agreed that the first tranche, of 500 mecu should now be released as soon as possible.
The Council discussed the ideas for a carbon/energy tax contained in the Commission's communication and took note of reports from the fiscal aspects group and the conclusions of the joint Energy and Environment Council held on 13 December. It was agreed that the fiscal aspects working group should undertake work on the basis of additional analysis of the issues by the Commission and that the Council would re-examine the question before May in preparation for the UNCED Council in Rio.
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The Council discussed several matters relating to the abolition of fiscal frontiers, and formally adopted the directive on the VAT transitional arrangements to apply after 1992.Political agreement was reached on the draft directive on the arrangements for the holding, movement and control of goods subject to excise duty. This agreement includes satisfactory provision for minimum indicative levels to distinguish between commercial and private transactions in tobacco products and alcoholic drinks, since commercial transactions are taxed in the country of destination while private transactions are taxed in the country of origin. The minimum indicative levels agreed were as follows :
Item |Amount
------------------------------------------------
Cigarettes |800
Cigarillos |400
Cigars |200
Smoking tobacco |1kg
Spirits |10 litres
Intermediate products |20 litres
Wine |<1>90 litres
Beer |110 litres
<1>Including a maximum of 60 litres of
sparkling wines.
Above these levels, the transaction may be taken to be of a commercial character unless the person concerned can establish to the satisfation of the fiscal authorities that it is not.
For limited period, Ireland will be able to apply minimum indicative levels for wines and beer at 50 per cent. of the levels generally agreed. Special arrangements were also agreed to allow Denmark to continue to apply its current travellers' allowances on spirits and tobacco after 1992.
Subject to parliamentary scrutiny, agreement was also reached on extended and modified derogations for Ireland and Denmark from the directive on travellers' allowances, to apply during 1992. Denmark will continue to apply its current levels of travellers' allowances, while for Ireland, the agreement provides for the following revised allowances :
|Current |Allowance to
|allowance |apply in 1992
---------------------------------------------------------------------
Cigarettes (number) |150 |300
Smoking tobacco (grams) |400 |400
Spirits (litres) |0.75 |1.5
or
Intermediate products and
sparkling wine (litres) |1.5 |3
Still wine (litres) |2.5 |5
Beer (litres) |<1>12 and 25 |<1>15 and 30
Other products (ecu) |<2>110 |<3>175
<1> for travellers out of the Republic for less and more than 24
hours
respectively
<2> subject to a single item limit of 95 ecu
<3> subject to a single item limit of 150 ecu for travellers out of
the
Republic for more than 24 hours, 110 ecu for less than 24 hours.
The Council also took note of a progress report by the Dutch presidency on the last six months and the work to be done before 1 January 1993.
The Community's acceptance of the "Helsinki package" of reforms to the OECD consensus on export credits was confirmed. This agreement incorporates a welcome reduction in trade distorting export credit
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subsidy to the benefit of taxpayers and a tightening of the rules on the provision of tied aid subsidies so that these are better targeted on aid-worthy projects in aid-worthy countries.The Council took note of a report from the Commission on a proposal for a directive on withholding taxes on interest and royalty payments and remitted the proposal to a working group for further work. The Council also took note of a joint report from the Commission and the European investment bank on lending by the European investment bank outside the Community.
The conclusions of that morning's meeting of the Transport Council on road transport taxation were remitted to an ad hoc working group for further discussion.
The investment services directive was also discussed in a group of personal representatives at which the Minister for Corporate Affairs represented the United Kingdom. No decisions were reached.
Uncollected Tax
Mr. Blunkett : To ask the Chancellor of the Exchequer if, pursuant to his answer of 2 December, Official Report, columns 37-38, he will publish a table showing the levels of uncollected tax at the end of the financial year 1989-90 and 1990-91 for (a) value added tax, (b) income tax, including schedule D and (c) corporation tax, excise duties and capital gains tax, expressed both as a sum figure and as a percentage of total tax due for each category.
Mrs. Gillian Shephard [holding answer 12 December 1991] : Information on average daily arrears of value added tax, on the basis of financial years, and on income tax, corporation tax, and capital gains tax arrears at years ending 31 October can be found in "Volume 12 : Classes XVIII to XIX" of the 1990-91 appropriation accounts, pages vii and xiii respectively. A copy is available in the House of Commons Library.
Arrears of excise duty on drink, tobacco and road fuel are not collated centrally. However, these duties are either paid in cash on clearance to home consumption or by duty deferment backed up by a financial guarantee. In either case the possibility for arrears is minimal. Arrears of car tax, and betting and gaming duty can however arise and were as follows :
|Arrears |As percentage
|£ million |of receipts
--------------------------------------------------------
31 March 1990 |48.9 |2.0
31 March 1991 |6.9 |0.3
In general, the bulk of the sums of tax in arrears are collectable and remain outstanding only for short periods, possibly days. Sums outstanding for longer periods risk incurring penalties or interest charges. Ultimately the Revenue Departments write off only those sums indicated in the reply of 2 December 1991, Official Report, columns 37-38. Write-offs occur mainly through insolvencies or from traders becoming untraceable.
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Corporation Tax
Mr. Summerson : To ask the Chancellor of the Exchequer by what percentage corporation tax would have to be increased to raise an amount equivalent to the amount raised by the uniform business rate in 1989-90 and 1990-91.
Mr. Maude [holding answer 16 December 1991] : Assuming no changes in company behaviour, the corporation tax rate, applied to profits from 1 April 1988 onwards, would need to have been more than 20 percentage points higher to yield a sum over these two years equivalent to the amount raised from non-domestic property by way of rates.
In the absence of rates, the required increase would have been significantly less because rates are allowed as a deduction in computing profits for corporation tax. Information required to quantify the level is not available.
Rates raise revenue to pay for services provided by local authorities by taxing the occupation of non-domestic property. As such, they are levied on unincorporated businesses, partnerships and the self employed who are liable to income tax, as well as the corporate sector which is liable to corporation tax.
Self-employed and Partnerships
Sir David Mitchell : To ask the Chancellor of the Exchequer what would be the effect on the Exchequer's revenue of applying corporation rather than income tax to the self-employed and partnerships.
Mr. Maude [holding answer 18 December 1991] : There would be an effect on the timing of tax payments. Partnerships and the self-employed pay tax for income tax years in two instalments, three months before and three months after the end of the tax year. Corporation tax is paid in one instalment nine months after the end of the accounting period. There would also be an effect on the amount of tax paid, but the extent would depend on how the rules for taxing companies were adapted to tax the self-employed and partnerships.
Mr. Robert Hughes : To ask the Chancellor of the Exchequer what will be the tax consequences of the privatisation of Northern Ireland Electricity.
Mr. Maude : The Electricity (Northern Ireland) Order 1991 provides for the transfer of the business assets and liabilities of Northern Ireland Electricity (NIE) to a number of successor companies into private ownership. Under normal tax rules a number of tax consequences would arise solely as a result of the pre-privatisation reorganisation of NIE into the successor companies. We intend to introduce legislation in 1992 designed to treat the reorganisation on a tax-neutral basis in accordance with the Government's general policy on privatisation.
ENVIRONMENT
London Docklands Development Corporation
Ms. Gordon : To ask the Secretary of State for the Environment how much public funding has been given since the establishment of the London Docklands development corporation to the London Arena development ; and if he will make a statement.
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Mr. Key : The total public sector contribution to the capital cost of the London Arena is £3.425 million.
Caravan Site, Basingstoke
Mr. Hunter : To ask the Secretary of State for the Environment what was the cost of establishing under the Caravan Sites Act 1968 the site at Peak Copse, Dummer, Basingstoke, including all the preliminaries, the cost of the public inquiry and the cost of actual construction.
Mr. Yeo : The cost of the preliminary work on the planning application concerning the site and of the public local inquiry which was held in January 1989, fell principally on Hampshire county council. The costs of the inquiry inspector, which were borne by the Secretary of State, are not separately identifiable.
The actual cost of constructing the site will not be known before completion of the scheme in mid 1992, but the tender accepted by the Hampshire county council in the sum of £616,738 is within the approved estimate for gipsy site grant.
Cycling (Royal Parks)
Ms. Ruddock : To ask the Secretary of State for the Environment whether the provision of cycling facilities will be considered by the independent review group on royal parks ; and if he will make a statement.
Mr. Yeo : The royal parks review group is considering the provision of cycling facilities in Hyde park and Kensington gardens and will report its conclusions on this and other matters early next year.
Private Tenancies
Mr. David Nicholson : To ask the Secretary of State for the Environment (1) what representations he has received about the practice of certain private landlords of requiring a tenancy to be terminated when a baby is born to the tenant ; what information he has as to how widespread this practice is ; and if he will make a statement ;
(2) whether he has any plans to prohibit private landlords from terminating tenancies when a child is born to the tenant ; and if he will make a statement.
Mr. Yeo : My right hon. Friend has received no such
representations. Landlords may obtain possession from an assured tenant to whom a child has been born only if a term of the tenancy agreement has thereby been breached, or if the landlord is otherwise entitled to possession. In either case a court order is necessary and the landlord must satisfy the court that it is reasonable to grant him possession for a breach of the terms of the tenancy. A tenant will therefore be aware of the likelihood that he will not be able to remain after a child is born at the point where he accepts the tenancy. We have no plans to change the law in this respect.
West Kent Housing Association
Mr. Soley : To ask the Secretary of State for the Environment how much grant was given by his Department to West Kent housing association in respect of the proposed voluntary transfer of housing stock.
Sir George Young : My Department has not given any grant to the West Kent housing association in respect of
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the proposed transfer of the new town housing stock at Basildon ; nor are there any powers so to do. However, in accordance with the provisions of the New Towns (Transfer of Housing Stock) Regulations 1990, as amended, the Commission for the New Towns will pay the reasonable costs incurred by both the West Kent housing association and Basildon district council in connection with a ballot of tenants.Energy Efficiency
Mr. Alan W. Williams : To ask the Secretary of State for the Environment, pursuant to the answer to the hon. Member for Carmarthen by the Parliamentary Under-Secretary of State for Energy, the hon. Member for Wells (Mr. Heathcoat-Amory) on 2 December at column 42, on energy efficiency investment, if he will break down the figure of £900 million into its component parts.
Mr. Yeo : A breakdown of the figure of £900 million for the financial year 1990-91 is not available. However, the 1986 English house condition survey indicated that of all major expenditure on the public sector stock, directed at the improvement of heating and insulation, some 73 per cent. was for installing or repairing central heating and nearly 9 per cent for other heating. Around 17 per cent was spent on wall insulation and some 1 per cent on loft and roof insulation.
Planning Zones
Mr. Steen : To ask the Secretary of State for the Environment what action he proposes to take in order to encourage local planning authorities to make simplified planning zones on appropriate cases ; and if he will make a statement.
Mr. Yeo : The Planning and Compensation Act 1991 provides for substantial simplification and streamlining of the procedure for making simplified planning zones--SPZs. Regulations for the detailed implementation of this will be laid before the House in due course. I have today issued a consultation paper setting out our proposals for such regulations, and for the revision and inclusion in a single document of the Department's guidance to authorities on the making of SPZs.
Authorities have a duty under the Town and Country Planning Act 1990 to keep under review the desirability of making SPZs for parts of their area.
National Wildlife Parks (Military Use)
Mr. Steen : To ask the Secretary of State for the Environment what information he has on whether military use is permitted of national and wildlife parks in each of the other European Community countries.
Mr. Baldry [holding answer 18 December 1991] : Military use is permitted in protected areas in other European Community countries, but information for each member country is not readily available.
Windscale Inquiry
Mr. Andrew F. Bennett : To ask the Secretary of State for the Environment what plans there are to publish the study by Lyons (CB) Ltd. of press reporting of the Windscale public inquiry.
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Mr. Forth : I have been asked to reply.
This report was commissioned for the Health and Safety Executive's internal use and there are no plans to publish it.
New Parliamentary Building
Mr. Ken Hargreaves : To ask the Secretary of State for the Environment what progress has been made on the design of the next phase of the new parliamentary building ; and if he will make a statement.
Mr. Heseltine : The consultant architect appointed by my Department, Michael Hopkins and Partners, completed their preliminary sketch plan stage proposals in October. These were presented to the New Building Sub Committee which endorsed the way the scheme is developing. A text of the letter I received from the Chairman, the hon. Member for Ogmore (Mr. Powell) and of my reply along with copies of Hopkins' report are being placed in the Library.
Design work, and discussions with London Underground Ltd. on the integration of the scheme and the proposed new Westminster station are continuing. It is planned to publish the final sketch plan proposals early next year.
The letter from the hon. Member for Ogmore and my reply to him are as follows.
SELECT COMMITTEE ON HOUSE OF COMMONS (SERVICES) : NEW BUILDING SUB- COMMITTEE
22nd October 1991
Dear Michael
Bridge Street Phase 2 At its meeting last Tuesday the New Building Sub- Committee received a presentation from Mr. Michael Hopkins on his Preliminary Sketch Plan Report for Phase 2 of the new parliamentary building project. As the Sub-Committee will shortly cease to exist, and as there may be a lengthy interval before the new Accommodation Committee is set up, I thought it would be helpful if I wrote to inform you of the Sub- Committee's present views in regard to Phase 2.
In general the Sub-Committee is very pleased with the way the designs are shaping up. Last week we were shown elevations of the proposed building for the first time, and I think I speak for all my colleagues who were present in saying that these were very encouraging. We appreciate, of course, that Mr. Hopkins is still actively developing his views about the appearance of the building, and that it will not be until next Spring that the plans are finalised.
We approved the proposals for Members' offices contained in the PSP Report. In particular we are content with the proposal that about 104 "sets" should contain ensuite accommodation for Members' staff, while in a further 92 "sets" space will be shared with other Members' staff.
Mr. Hopkins's proposals for the internal layout of the building, especially on the ground and first floors, are still being developed. We regard the proposals to roof in either the inner courtyard (at second floor level), or the outer space formed between Phase 2 and Norman Shaw South, as interesting, and we certainly think Mr. Hopkins should further investigate each possibility in order to establish its pros and cons. We are sure that he will bear in mind the importance of ensuring, if at all possible, that the minimum allocations of space for specific functions as set out in the Services Committee's Initial Brief are adhered to in whatever emerges as his favoured layout.
We approved Mr. Hopkin's new proposals to carry the load of the building on its perimeter walls and on six columns extending downward to the base of the station, rather than on a horizontal concrete "raft". We think it essential, however, that whatever means are chosen to separate the parliamentary building from the London underground station below it, the
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highest priority must be given to ensuring that noise and vibration from the trains do not disturb Members and staff in their offices. Mr. Hopkins reported to us on the difficulties which have arisen in relation to the siting of ventilation shafts. This is a matter which will clearly have to be looked at in detail by our successors, but we wish to put on record our concern at the proposed introduction of such shafts within the parliamentary estate. The aesthetic and other disadvantages that might arise from such a proposal will need to be carefully evaluated.Finally, we note that a number of issues remain to be resolved in discussions with London Underground. Our successors will need to satisfy themselves that suitable arrangements have been made with regard to the location of the temporary ticket hall, achieving an early start to the construction of the parliamentary building, shared use of the site during the construction period, future ownership of the land, and provisions to insulate the parliamentary building from noise and vibration. It will also be important to receive confirmation from London Underground that the construction timetable they have previously outlined in evidence to the Service Committee is still operative.
We understand that London Underground propose shortly to introduce a further private bill dealing with the Jubilee Line. Our successors may well wish to enquire into any proposals in this bill which directly impinge on the parliamentary estate, and to report to the House on them before the bill is given a second reading. This would be a similar procedure to that which the Services Committee adopted with regard to the original Jubilee line bill in Session 1989-90. Subject to progress in resolving these issues, and to the satisfactory passage of the London Underground Bill through Parliament, we see no reason why the target of Spring 1992 for the commencement of work on site should not be achieved. We wish to put on record our thanks to Mr. Hopkins, and to his junior colleague Mr. John Pringle, for all the work they have done and for the constructive and creative way in which they have sought to interpret their necessarily complex brief.
15 December 1991
Dear Ray,
New Parliamentary Building--
Thank you for your letter of 22 October recording the outcome of the New Building Sub Committee's consideration of Michael Hopkins and Partners proposals for the next phase of the New Parliamentary Building. Before dealing with the issues you raise may I congratulate you first on becoming Chairman of the new Accommodation and Works Committee. I am sure it is very important to the development of the proposals for the new building that there should be this continuity with the depth of knowledge it brings to the scheme.
I had the opportunity last week to visit Hopkins' office to see their proposals. He has done considerable work since the presentation to the Sub Committee and it is quite clear that there are the makings of a fine scheme. The massing, scale and silhouette of the building are now becoming much clearer and will, I think, contribute greatly to the important views across the River Thames as well as the more oblique views from Parliament Square. The choice of materials is of great importance. There is a very difficult balance to be struck between the red brick of the Norman Shaw buildings and the lighter brown stone used on the Palace. I know from our discussions that Michael Hopkins is very conscious of this point.
It is, I believe, essentially a matter for the House to determine the priorities for the use of the accommodation which can be provided in the building. I note that your Sub Committee was content with the proposals for Members' offices and I think you will find that the most recent work to develop the proposals for the ground and first floors will not only result in an exciting space but will assist considerably in increasing the amount of accommodation available without in any way overdeveloping the site.
It is quite clear, both from your letter and the reports I have received, that there is still a considerable amount of work to be done to integrate successfully the proposed extension to the Jubilee Line with the new building. I consider it very important therefore that the discussions involving my
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officials, London Underground and the House should be pursued rigorously to try to achieve the timetable you set out so that all the necessary information is made available to enable the House to take an early view on the impact of the proposed Extension and to reach agreement on the way ahead without delaying unnecessarily the new building.I shall be keeping in touch as the design continues to develop and look forward to seeing a fully worked up scheme early in the New Year.
Yours faithfully,
Michael Heseltine--
Bottled Water
Mr. Simon Hughes : To ask the Secretary of State for the Environment what regulations exist to control bottled (a) mineral water and (b) spring water ; and if he will make a statement.
Mr. Maclean : I have been asked to reply.
The Natural Mineral Water Regulations 1985 control the exploitation and marketing of natural mineral waters in Great Britain. Similar controls apply in Northern Ireland. Regulations laying down specific controls for other bottled waters are currently being drafted.
TRADE AND INDUSTRY
EC (Visits)
Mr. Forman : To ask the Secretary of State for Trade and Industry if he will list (i) the number of visits made by officials in his Department during the past month to destinations outside the United Kingdom but within the European Community on official business related to the European Community, (ii) the number of visits made by officials in his Department to Brussels within the past month on official business related to the European Community and (iii) the number of nights spent by officials in his Department over the past month away from the United Kingdom on official European Community business.
Mr. Lilley : This information could be obtained only at disproportionate cost.
Export Licences
Mr. Burns : To ask the Secretary of State for Trade and Industry whether he will name the destinations for which export licence applications are subject to special consideration for strategic and proliferation reasons.
Mr. Sainsbury : The Government have decided to publish a list of destinations for which export licence applications are subject to special consideration to serve as a guide to industry. The list, which is subject to regular review, is based on strategic and proliferation concerns and other criteria, including the risk of diversion and the lack of effective export controls. The destinations are as follows :
Afghanistan
Albania
Algeria
Angola
Argentina
Brazil
Bulgaria
Burma
China
Cuba
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