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Mr. Dunn : To ask the Chancellor of the Exchequer if he will make a statement on the implementation of EC single market legislation associated with value added tax.
Mrs. Gillian Shephard : The Commissioners of Customs and Excise have issued draft Finance Bill clauses relating to the VAT treatment of goods (and associated services), to relevant trade representative bodies for consultation. I have arranged for copies to be placed in the Library of the House.
Taxpayers
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer what would be the average gain per taxpayer in 1992-93 from a one penny reduction in the basic rate of income tax for those with incomes (a) below £5,000, (b) between £5,000 and £10,000, (c) between £10, 000 and £20,000, (d) between £20,000 and £30,000 and (e) over £30,000, giving in each case the average gain if the same money were instead spent on increasing the single person's tax allowance, in the United Kingdom.
Mr. Maude : At 1992-93 levels a one penny reduction in the basic rate of income tax would cost about £1.95 billion in a full year. Increasing the personal allowance for taxpayers of all ages by £300 would also cost about £1.95 billion in a full year in 1992-93 compared with statutory indexation.
Average reduction in income tax (£ per year)
Annual income |One penny |Increase in
(£) |reduction in |personal
|basic rate
|of £300
---------------------------------------------------------
0 - 5,000 |10 |60
5,000 -10,000 |30 |70
10,000 -20,000 |80 |80
20,000 -30,000 |170 |80
over 30,000 |230 |110
|-- |--
Total |80 |80
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Child Care Tax Allowance
Ms. Armstrong : To ask the Chancellor of the Exchequer (1) if he will estimate the effect on Treasury revenues in 1992-93 of introducing an allowance against income tax of (a) £1,000 and (b) £2,000 for all working mothers, giving both full and first year costs ;
(2) if he will estimate the effect on Treasury revenues in 1992-93 of introducing an allowance against income tax of (a) £1,000 and (b) £2,000 for all working mothers, with at least one child under age five years, giving both full and first year costs.
Mr. Maude : Estimates of the cost of introducing allowances against taxable incomes for working mothers and lone parents at 1992-93 levels are set out in the table :
Cost (£ billion) allowance of
|(a) |(b)
|£1,000 per|£2,000 per
year |year
------------------------------------------------------------------
All working mothers<1> |0.6 |1.2
All working mothers with a child
under five<1> |0.2 |0.3
<1>Including lone parents who are working.
Ms. Armstrong : To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992-93 and in a full year of allowing the cost of child care against the income tax of (a) working mothers and (b) either partner in a two-earner couple, giving figures separately for children under five and those aged five to 16 years.
Mr. Maude : Information on child care costs paid by working mothers and by two-earner couples with different levels of income is not available. It is therefore not possible to estimate the cost of such a measure.
Ms. Armstrong : To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992-93 and in a full year of introducing a child care tax allowance of £50 a week for (a) working women and (b) either partner in a two-earner couple, assuming that relief is available at the basic rate only, giving figures separately for (i) all families with dependent children and (ii) families with at least one child under five years.
Mr. Maude : Estimates of the full year cost of introducing such an allowance in 1992-93 are set out in the table :
Cost (£ billion)
Allowance of £50 per week
restricted to basic rate relief and
given to
|(a) |(a)
|working moth- |the higher ear-
|ers and lone |ner in a two-
|parents |earner couple
-------------------------------------------------------------------------------
All families with dependent
children<1> |1.4 |2.2
Family with at least one child
under the age of 5 |0.4 |0.8
<1> Includes dependent children aged 16 to 18.
Ms. Armstrong : To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992-93 and in a full year of introducing a child care tax allowance of £50 a week for (a) working mothers
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and (b) either partner in a two-earner couple, giving figures separately for (i) all families with dependent children and (ii) families with at least one child under five years.Mr. Maude : Estimates for 1992-93 are in the table :
Cost (£ billion)
allowance of £50 per week given to
|working |the higher
|mothers and |earner in a two-
|lone parents |earner couple
----------------------------------------------------------------------------------
All families with dependent
children<1> |1.4 |2.3
Family with at least one child
under the age of five |0.4 |0.8
<1> Includes dependent children aged 16 to 18.
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Income Statistics
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer what was the total and average income and earned income in 1990-91 and 1991-92 of (a) the top one per cent., (b) the top five per cent., (c) the top 10 per cent., (d) the bottome 70 per cent., (e) the bottom 50 per cent., (f) the bottom 10 per cent. of taxpayers and (g) all taxpayers.
Mr. Maude : Estimates are given in the table:
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Quantile group |Total income |Average |Total earned |Average
of taxpayers |(£ million) |income (£) |income |earned
|(£ billion) |income (£)
----------------------------------------------------------------------------------------------------
1990-91
Top 1 per cent. |28 |107,400 |20 |78,000
Top 5 per cent. |68 |53,000 |54 |42,200
Top 10 per cent. |101 |39,600 |84 |32,800
Bottom 70 per cent. |160 |8,900 |145 |8,100
Bottom 50 per cent. |95 |7,400 |86 |6,700
Bottom 10 per cent. |12 |4,700 |11 |4,200
All taxpayers |354 |13,800 |313 |12,300
1991-92
Top 1 per cent. |28 |113,000 |22 |88,400
Top 5 per cent. |71 |56,300 |59 |47,200
Top 10 per cent. |106 |42,000 |91 |36,200
Bottom 70 per cent. |166 |9,400 |152 |8,700
Bottom 50 per cent. |98 |7,800 |89 |7,200
Bottom 10 per cent. |12 |4,900 |11 |4,400
All taxpayers |368 |14,600 |332 |13,300
Invisible Exports
Mr. Squire : To ask the Chancellor of the Exchequer if he will publish the value of invisible exports to the United Kingdom economy in each year since 1980.
Mr. Mellor : The latest estimates of the value of invisible exports were published in the balance of payments quarterly press notice of 11 December 1991. They are as follows :
|£ billion
------------------------------
1980 |41
1981 |57
1982 |65
1983 |66
1984 |77
1985 |80
1986 |77
1987 |80
1988 |88
1989 |108
1990 |117
First estimates for 1991 will be published on 6 March.
Tax Changes
Mr. Meacher : To ask the Chancellor of the Exchequer if he will update, to take account of the 1991 Budget, the information on tax changes contained in his answer to the hon. Member for Roxburgh and Berwickshire (Mr.
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Kirkwood) on 3 April 1990, Official Report , columns 525-26 , and including two additional ranges of income, those from £70,000 to £100,000 and those over £100,000.Mr. Maude : Latest estimates of the reduction in tax liability resulting from the changes in tax rates, allowances and thresholds are in the following table. The 1978-79 income tax regime has been indexed to 1991 -92 levels by reference to the statutory formula, and allowing for independent taxation. A reliable analysis of taxpayers with incomes over £80,000 is not available.
For the purposes of these calculations the indexed regime of 1978-79 is applied directly to the income base of 1991-92. In practice, retention of the regime, indexed as appropriate for the intervening years would have led to changes in the income base.
Reduction in income tax compared with 1978-79 indexed regime
Range of individual's |Number of |Total |Average gain
income in 1991-92 |individuals |reduction in |per individual
|1991-92<1> |tax
(£) |(million) |(£ million) |(£)
--------------------------------------------------------------------------------------------------------------
Under 5,000 |3.5 |450 |120
5,000-10,000 |8.4 |2,600 |310
10,000-15,000 |6.5 |4,100 |640
15,000-20,000 |4.0 |3,900 |980
20,000-30,000 |2.9 |4,400 |1,500
30,000-50,000 |1.1 |3,000 |2,800
50,000-80,000 |0.3 |2,600 |8,700
Over 80,000 |0.1 |6,600 |45,600
|--- |--- |---
Total |26.8 |27,800 |1,000
<1> Individuals who would be liable to tax under the indexed 1978-79
regime.
Return on Capital
Mr. Lawson : To ask the Chancellor of the Exchequer if he will publish a table showing the average real rate of return on capital invested in British industry over the following periods : (a) 1964-1973, (b) 1973- 1979 and (c) 1979-1989.
Mr. Norman Lamont : The average net real rates of return on capital employed by United Kingdom industrial and commercial companies are estimated as follows :
|Per cent.
--------------------------------
(a) 1964-73 |9.9
(b) 1973-79 |6.5
(c) 1979-89 |8.9
The figure for each year may be
found in the Central
Statistical Office
Bulletin 71/91, a copy of which
is in the Library.
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Contract Compliance
Mrs. Dunwoody : To ask the Chancellor of the Exchequer what plans the Government have to introduce contract compliance for firms employed on Government contracts and for organisations receiving Government funding.
Mr. Maude : None. All parties to a contract are expected to abide by its terms, which are legally enforceable.
Privatisation
Mr. Alan Williams : To ask the Chancellor of the Exchequer what has been the value of debt to Government written off in each privatisation.
Mr. Norman Lamont : The table shows, by privatisation, debt written off and the type of debt concerned. This includes both debt written off as part of the privatisation process and debt written off in a company which was subsequently privatised.
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Debt written off prior to privatisation
Privatisation |Amount £ |Type of debt
----------------------------------------------------------------------------------------------------------------------------------------------------------------
British Aerospace |60,000,000 |Public Dividend Capital
National Freight Corporation<1> |100,000,000 |National Loans Fund
British Transport Docks Board<2> |81,293,616 |National Loans Fund
British Telecommunications |2,789,865,772 |National Loans Fund
British Airways |160,000,000 |Public Dividend Capital
BAA |43,503,340 |National Loans Fund
British Steel |500,000,000 |Public Dividend Capital
British Steel |3,480,000,000 |Borrowing under Iron and Steel Act 1982
Water Holding Companies |4,973,332,672 |National Loans Fund
Water Holding Companies |55,013,916 |Public Works Loan Board
Scottish Electricity Companies<3> |1,043,573,600 |National Loans Fund
<1> Privatised as National Freight Consortium (now NFC).
<2> Privatised as Associated British Ports.
<3> Prior to privatisation, National Loans Fund debt due to the South of Scotland Electricity Board nuclear programme of £1,368,390,398
was transferred to Scottish Nuclear Ltd. and subsequently written off.
Taxable Benefits
Mr. Meacher : To ask the Chancellor of the Exchequer if he will list each social security benefit which is currently taxable indicating the numbers affected and the revenue obtained for the latest available tax year.
Mr. Maude [holding answer 27 February 1992] : The table lists the benefits liable to tax together with provisional estimates, where available, of the number of people liable to income tax in receipt of each benefit for the whole or part of 1991-92. Table 9.6 of the 1991 edition of the United Kingdom National Accounts (the CSO Blue Book) provides an estimate of income tax attributable in total to these benefits, applying the recipients' average rate of income tax on the whole of their income to the amount of benefit received.
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Taxpayers receiving benefit in 1991-92 Taxable benefit |Thousands --------------------------------------------------------- Industrial death benefit |n.a. Retirement pension |2,500 Widow's benefit |250 Old person's pension |n.a. Invalid care allowance |n.a. Income support |500 Unemployment benefit |500 Statutory sick pay |3,000 Statutory maternity pay |n.a. n.a.-not available
Mortgage Tax Relief
Mr. Battle : To ask the Chancellor of the Exchequer what assessment he has made of the cost of increasing mortgage tax relief for first-time buyers to (i) 40 per cent. and (ii) 50 per cent.
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Mr. Maude [holding answer 2 March 1992] : On the basis that such a relief would apply only to those buying for the first time after the relief was introduced, the cost of increasing mortgage interest tax relief from 25 per cent. to 40 per cent. for every 100, 000 first-time buyers would be about £45 million in a full year. Increasing the relief to 50 per cent. would cost about £75 million for every 100,000 first time buyers.Retail Prices Index
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer what would be the impact in 1992-93 on the retail prices index of raising £1 billion from (a) tobacco products, (b) beer, (c) wine and spirits, (d) petrol, (e) VAT and (f) vehicle excise duty.
Mrs. Gillian Shephard [holding answer 2 March 1992] :
|Percentage change
------------------------------------------------------------
(a) Tobacco products |0.4
(b) Beer |0.5
(c) Wine and spirits |0.7
(d) Petrol |0.2
(e) VAT |0.3
(f) Vehicle Excise Duty |0.2
These estimates are based on 1991 RPI weights. The weights for 1992 have yet to be finalised.
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer what are the most recent figures for the number of non-taxpayers who are claiming mortgage interest relief at source, in the United Kingdom.
Mr. Maude [holding answer 2 March 1992] : MIRAS is available on all qualifying mortgages regardless of the tax status of the mortgagor. A very approximate estimate, based on household survey information, is that there are about 1 million non-taxpayers with MIRAS.
PRIME MINISTER
Libya
Mr. Ron Brown : To ask the Prime Minister if he will seek to arrange a meeting with Colonel Gadaffi to discuss a solution to the Libyan incident.
Disability
Mrs. Dunwoody : To ask the Prime Minister if he will appoint a specific Minister for the Disabled.
The Prime Minister : Since 1975, beginning with the right hon. Member for Manchester, Wythenshawe (Mr. Morris) there has been a Minister for Disabled People with specific responsibility for disability issues and co-ordinating Government policies for disabled people.
Open Government
Mr. Flynn : To ask the Prime Minister what proposals he has for improving open government.
The Prime Minister : The Government will continue to review all areas of policy with a view to increasing
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transparency and enhancing accountability for the delivery of public services, and will announce future advances as and when they are made.Engagements
Mr. Harry Greenway : To ask the Prime Minister if he will list his official engagements for 3 March.
The Prime Minister : This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.
Lockerbie Bombing
Mr. Dalyell : To ask the Prime Minister what progress has been made by the United Nations in creating a mechanism to allow the trial by a neutral body of the Libyans alleged to be responsible for the Lockerbie bombing ; and if he will make a statement.
The Prime Minister [holding answer 2 March 1992] : UN Security Council resolution 731 makes no provision for any such mechanism. We now await a report from the UN Secretary-General about his recent efforts under that resolution to secure Libyan compliance with it.
TRADE AND INDUSTRY
Blood Plasma
Mr. David Nicholson : To ask the Secretary of State for Trade and Industry what evidence has been made available to his Department concerning the dumping on the United Kingdom market of blood plasma products such as 8SM high purity factor 8.
Mr. Redwood : My Department is aware of this and other complaints about the working of the market in blood products. These complaints are being pursued with the Department of Health and the Office of Fair Trading.
National Lottery
Mr. David Nicholson : To ask the Secretary of State for Trade and Industry how many representations he has received proposing that post offices, (a) in rural areas and (b) elsewhere, should handle applications for a national lottery.
Mr. Leigh : I have received no representations in respect of post offices in any part of the country handling applications for a national lottery.
Network Marketing
Mr. David Nicholson : To ask the Secretary of State for Trade and Industry what proposals he has to regulate the activities of network marketing companies ; and what estimate he has of the expansion of this type of selling in the United Kingdom.
Mr. Leigh : Network marketing is already regulated under part XI of the Fair Trading Act 1973. Statistics are not collected on selling methods.
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Beer
Mr. Colvin : To ask the Secretary of State for Trade and Industry what is his estimate of the effect the implementation of section 43 of the Weights and Measures Act 1985 will have on the use of traditional hand pumps in dispensing draught beer.
Mr. Leigh : No estimate is available.
It will be possible to use hand-pumps. Whether or not to do so in any particular case will be a matter for the trade, as it is now.
Mr. Colvin : To ask the Secretary of State for Trade and Industry what effect he estimates that the implementation of section 43 of the Weights and Measures Act 1985 will have on the price of a pint of beer.
Mr. Leigh : The effect of implementing section 43 will be to increase the transparency of the price because it will then relate to a full pint of liquid, which it seldom does at present.
British Technology Group
Mr. Simon Hughes : To ask the Secretary of State for Trade and Industry what consultations he has held with the Committee of Vice- Chancellors and Principals on the privatisation of the British Technology Group.
Mr. Leigh : I refer the hon. Member to the reply given to the hon. Member for Motherwell, South (Dr. Bray) on 25 February 1992, Official Report, columns 472-73.
Consultants
Mr. McAllion : To ask the Secretary of State for Trade and Industry if he will list those parts of his Department, including executive agencies, carrying out reviews over the last 12 months into the pay and grading of staff and the firm of consultants engaged where appropriate.
Mr. Leigh : No parts of the DTI, including its executive agencies, have carried out a review of pay and grading of staff in the last 12 months.
Sub-postmasters
Sir Anthony Grant : To ask the Secretary of State for Trade and Industry if he will introduce regulations to require all appeals against termination of sub-postmasters' contracts to be heard by an independent person or tribunal ; and if he will make a statement.
Mr. Leigh : The conduct of appeals procedures, in common with all other employment issues, is an operational matter and therefore the responsibility of the Post Office. It would not be consistent with Government policy to seek to make regulations on such matters. All appeals against termination of subpostmasters' contracts are heard by an appeals authority of Post Office managers not connected with the case in question. This arrangement has been agreed with the National Federation of Subpostmasters.
Electrical Appliances
Mr. Michael : To ask the Secretary of State for Trade and Industry if he will make it his policy that the proposal that all new electrical appliances can be sold only with a
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pre-fitted plug will be implemented in such a way as to ensure that all pre-fitted plugs meet the requirements of disabled people, including people with wasting of the muscles and other difficulties in manipulating appliances.Mr. Leigh : The proposed regulations will allow suppliers of domestic electrical appliances to fit plugs that are suitable for use by the disabled.
Package Travel
Mr. Quentin Davies : To ask the Secretary of State for Trade and Industry when he expects to consult interested parties on his proposals for implementing article 7 of the EC package travel directive.
Mr. Leigh : My Department has today issued a consultation letter on proposals to implement article 7 of the directive. This article requires the organiser and/or retailer parties to the contract to provide sufficient evidence of security for the refund of money paid over and for the repatriation of the consumer in the event of insolvency.
In our consultation document issued on 24 July 1991, we proposed the establishment of a licensing authority which would require all operators of packages, other than those already licensed through the air transport organisers licence system, to be licensed and bonded to a prescribed percentage of turnover. The outcome of this consultation has caused the Department to reconsider this proposal.
The Government's objective in implementing the directive has been to do so in a way which would provide full implementation and proper protection for consumers, but would impose the minimum burdens on industry. It is now clear that the numbers of licensable operators would be large, but their average size would be likely to be small. A licensing system would thus be expensive and would conflict with the Government's objective.
We now propose that it will be for organisers to have their own security for refunds in the event of insolvency. Failure to have adequate security will be a criminal offence, punishable by fines and personal liability, both criminal and civil, for any director or manager who has connived at the commission of the offence. Within the bounds of the implementing regulations, it will be for the individual operator to decide what form of security to adopt.
It is envisaged that three broad possibilities will be offered in the regulations :
organisers may be bonded, in a sum equal to the maximum amount they hold by way of pre-payments during the period of the bond, to an approved organisation ;
organisers may arrange insurance against insolvency, again in the sum equal to the maximum amount they hold by way of pre-payments ; organisers may place pre-payments in a designated account from which they should only be withdrawn when the service against which the pre-payment has been made has been performed.
In the case of packages abroad, organisers will be required to have security also against the cost of repatriation in the event of no longer being able to meet their obligations to customers.
Market Testing
Dr. Kim Howells : To ask the Secretary of State for Trade and Industry if he will list any areas within his Department that have been identified since 18 November
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(a) by private individuals or organisations from the private sector or (b) otherwise as possibly suitable for market testing and contracting out ; and what steps are being taken to prevent any non-governmental organisations successfully tendering to carry out work currently undertaken by civil servants facing a conflict of interest between the public interest requirement of this work and other commercial activities they are involved in or other clients they represent.Mr. Leigh [holding answer 2 March 1992] : Studies to determine the most promising areas for market testing within the Department are not yet complete. Guidance on the ethics of conducting business with the private sector is contained in the Treasury's public competition and purchasing units guidance--CUP No. 16--and the Department's own procurement and supply manual, which have been circulated to all purchasing units within the Department.
Dr. Kim Howells : To ask the Secretary of State for Trade and Industry if he will list the individuals or organisations from the private sector who have been involved since 18 November 1991 (a) in determining areas within his Department for market testing or contracting out or (b) who have advised him of areas that should be market tested or contracted out to market consultants and the total fees or other costs to date charged to his Department by them and the full costs likely to be charged.
Mr. Leigh [holding answer 2 March 1992] : The Department is establishing a review panel, including officials and representatives of the private sector, to identify the most promising areas for market testing in the Department. The first meeting of the panel will be held in the near future.
WALES
Local Authority Land Sales
Mr. Wigley : To ask the Secretary of State for Wales (1) what is the total amount of land sold by each local authority in Wales at less than market value to (a) housing associations and (b) private developers for low -cost housing development in each year from 1988 ;
(2) what was (a) the total original market value and (b) the total actual sale price of land sold by each local authority in Wales at less than market value to (i) housing associations and (ii) private developers for low cost housing development in Wales in each year from 1988.
Mr. Nicholas Bennett : I will write to the hon. Gentleman and place a copy of my letter in the Library of the House.
Air Pollution
Mr. Wigley : To ask the Secretary of State for Wales if he will list all the sites in Wales currently utilised in order to monitor levels of (a) sulphur emission and (b) acid rain ; and how much money has been allocated by his Department in order to undertake such work.
Mr. Nicholas Bennett : The information is as follows :
(a) Sulphur dioxide--sites at Cardiff, Newport, Neyland, Port Talbot, Welshpool and Wrexham.
(b) Acid rain--sites at Beddgelert, Plynlimon, Llyn Brianne, and Tycanol Wood.
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The monitoring network to which these sites belong are funded on a United Kingdom basis by the Department of the Environment.Mr. Wigley : To ask the Secretary of State for Wales what assessment has been made by his Department of the use of fuel orimulsion to increase the output of power stations in Wales and the consequent effect of this action on acidification in upland areas and the level of sulphur emissions.
Mr. Nicholas Bennett : One application to burn orimulsion fuel at a power station in Wales has been made by National Power, in respect of its plant at Pembroke. As required, National Power has made separate applications to the Department of Energy and to Her Majesty's inspectorate of pollution under the Electricity Act 1989 and the Environmental Protection Act 1990 respectively. The Department is being consulted about both applications. In advance of decisions by the relevant bodies, it would not be appropriate for me to comment on the proposals, or on the Department's assessment of them, particularly in view of Ministers statutory appellate role under the Environmental Protection Act.
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