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Class and Vote |Current Cash Limit|Changes |Revised Cash Limit ----------------------------------------------------------------------------------------------- VII, 1 |2,124,258,000 |<1><2>1,000 |2,124,259,000 2 |211,882,000 |<1><3>3,323,000 |215,205,000 4 |171,657,000 |<4>112,000 |171,769,000 5 |438,781,000 |<1>1,070,000 |439,851,000 <1> Take up of entitlement under the end year flexibility arrangements announced by the Chief Secretary to the Treasury on 15 July 1992 (Official Report, columns 698-702). <2> Increases of £914,000 in respect of certain customer budgets from class VII, vote 2, £180, 000 from property holdings (class VIII, vote 7) for repayment services and an additional £2, 819,000 for the design and building costs of motorway service areas. These increases are offset by the transfer of £817,000 to class VII, vote 2 in relation to some running cost functions and transfer of additional maintenance costs and by the transfer of £4,000,000 to the Lord Chancellor's Department and the Crown Prosecution service to facilitate the implementation of the Road Traffic Act (£1,750,000 to class X, vote 1, £750,000 to class X, vote 2, £320,000 to class X, vote 5 and £1,180,000 to class X, vote 6). The running cost limit has been increased by £600,000 to allow my Department to bring in house certain consultancy work on the design and build of motorways and trunk roads. <3> Increases of £220,000 in respect of repayment services from property holdings (class VIII, vote 7), £196,000 from Department of Environment (class VIII, vote 8) and £350,000 in respect of the privatisation of British Rail, partially offset by reductions following the transfer of small ships register responsibilities to class VII, vote 4 (£38,000) and of Docklands light railway sponsorship to Department of Enviroment class VIII, vote 8 (£26,000). <4> Including an increase of £74,000 arising from the transfer of repayment services from property holdings (class VIII, vote 7).
My Department's gross running costs limit has been increased by £2, 381,000 from £391,077,000 to £393,458,000.
All the increases are within the forecast outturn for the planning total included in the Chancellor's autumn statement today.
NATIONAL FINANCE
Public Sector Borrowing Requirement
14. Mr. McAllion : To ask the Chancellor of the Exchequer what is his latest estimate of the level of public sector borrowing for the current financial year.
22. Mr. Campbell-Savours : To ask the Chancellor of the Exchequer what is his estimate of the public sector borrowing requirement in the current year.
Mr. Portillo : My right hon. Friend the Chancellor of the Exchequer will be giving a new forecast in his autumn statement later today.
Autumn Statement
16. Mr. Bayley : To ask the Chancellor of the Exchequer what preparations he has made for bringing together the autumn statement with the Budget for 1993.
Mr. Dorrell : Preparations for the first unified Budget in December 1993 are well in hand. My right hon. Friend the Chancellor will make further announcements on this important change in his spring Budget statement.
Whisky
17. Mr. Steen : To ask the Chancellor of the Exchequer what is the level of duty on British whisky in (a) the United Kingdom and (b) other EC countries ; and how much it has gone up in (a) the United Kingdom and (b) other EC countries since 1988.
Sir John Cope : In seven states the duty has remained nearly static, in four states, including the UK, the duty hs gone up at around the rate of inflation. Greece has put up duty more substantially.
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Current EC whisky duty rates and percentage change since 1988<1>
|Pence per 70cl |Percentage change
|bottle at 40 per |since 1988
|cent. abv<2><3>
------------------------------------------------------------------------
Belgium |337 |12.1
Denmark |1,036 |1.2
France |250 |0.2
Germany |278 |15.2
Greece |35 |<4>533.0
Ireland |574 |2.8
Italy |44 |-1.7
Luxembourg |202 |0.1
Netherlands |309 |0.1
Portugal |62 |43.1
Spain |89 |-0.2
United Kingdom |554 |25.6
<1>Rescaled from 75cl bottle (EC regulations no longer permit the use
of 75cl bottles).
<2>Rates of exchange as at 10.10.92.
<3>abv-alcohol by volume.
<4>A range of taxes is applied to spirits in Greece. This increase
relates to the excise duty element only and the VAT element has been
significantly reducd to offset this.
Economic Policy
18. Mr. Wallace : To ask the Chancellor of the Exchequer what changes there have been in economic policy since 20 October in the current year.
Mr. Portillo : I refer the hon. Member to the reply that I gave earlier today to the hon. and learned Member for Fife, North-East (Mr. Menzies Campbell).
Financial Services
19. Mr. Hawkins : To ask the Chancellor of the Exchequer what proposals he has to consider reforms in the area of financial services compliance in the short or medium-term future.
Mr. Dorrell : I have no plans to reform the current system of professional regulation within a statutory framework, with a strong practitioner input.
Pound Sterling
20. Mr. Martlew : To ask the Chancellor of the Exchequer what review he has undertaken of the effectiveness of measures to protect the pound by intervention in the financial markets.
Mr. Dorrell : The effectiveness of market operations is kept under review.
Pit Closures
21. Mr. Llew Smith : To ask the Chancellor of the Exchequer what meetings he has had, and what studies he has commissioned, to evaluate the full cost-benefit financial effects to the United Kingdom economy of closing coal mines.
Mr. Portillo : I have had a number of meetings with ministerial colleagues to discuss a wide range of issues relating to the future of the coal industry.
Unit Wage Costs
23. Mr. Booth : To ask the Chancellor of the Exchequer what information he has about the rate of unit wage cost growth in the United Kingdom ; and what is the corresponding information on Japan and Germany.
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Mr. Dorrell : In 1992 Q2 unit wage costs in manufacturing in the United Kingdom were only 1.4 per cent. higher than a year earlier. The corresponding figures for Japan and Germany are 8.6 per cent. and 3.8 per cent. respectively.
Mortgage Interest
24. Mr. Streeter : To ask the Chancellor of the Exchequer what estimate he has made of the financial effect on a household with a typical mortgage of the changes in mortgage interest rates over the last two years.
Sir John Cope : When the latest base rate cut feeds through to mortgage rates on 1 December, interest payments on an average £33,000 mortgage will have fallen by over £110 a month, compared with payments two years ago, and by over £130 a month compared with the mid-1990 peak.
Social Security Payments
25. Mr. Matthew Taylor : To ask the Chancellor of the Exchequer what representations he has received calling for protection of social security payments in the current public expenditure round ; and if he will make a statement.
Mr. Portillo : My right hon. Friend and I have received a number of such representations.
Fixed Capital Formation
Mr. Milburn : To ask the Chancellor of the Exchequer if he will provide a table showing gross domestic fixed capital formation by region on (a) vehicles, ships and aircraft, (b) plant and machinery, (c) dwellings, (d) other new building work and (e) in total, for each year from 1989 at 1989 prices.
Mr. Dorrell : The latest information available relates to 1989, and was published in the November 1991 issue of Economic Trends, which is available in the House of Commons Library. Estimates for 1990 on a current price basis, together with any revisions for 1989, will be published in the December 1992 issue of Economic Trends.
Mr. Milburn : To ask the Chancellor of the Exchequer if he will provide a table showing United Kingdom gross domestic fixed capital formation on (a) vehicles, ships and aircraft, (b) plant and machinery and (c) in total for each year from 1989 at 1989 prices.
Mr. Dorrell : The series requested are available at constant (1985) prices, or at current prices, but not at 1989 prices. The latest estimates are available on the CSO database which may be accessed by the House of Commons Library. The relevant database identifiers are :
|Constant (1985)|Current prices
|prices
---------------------------------------------------------------------------------
(a) Vehicles, ships and aircraft |DFEH |DFEJ
(b) Plant and Machinery |DFCY |DFCX
(c) Total<1> |DFDM |DFDC
<1>Total gross domestic fixed capital formation includes expenditure on new
dwellings and other new buildings and works.
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Manufactured Goods
Mr. Milburn : To ask the Chancellor of the Exchequer what has been the total trade deficit in manufactured goods since May 1979 at current prices.
Mr. Dorrell : Information on the balance for manufactured goods is published regularly in the Central Statistical Office's "Monthly Review of External Trade Statistics" and is available on a monthly basis since 1980, and on a quarterly basis for 1979 on the Central Statistical Office databank which may be accessed through the Library of the House.
Gross Domestic Product
Mr. Milburn : To ask the Chancellor of the Exchequer if he will provide a table showing annual growth in gross domestic product for (a) the United Kingdom, (b) the European Community and (c) the OECD for each year since 1989.
Mr. Dorrell : Volume index numbers of gross domestic product, from which these growth rates can be derived, are available on page 11 of the October edition of "Main Economic Indicators" published by OECD. Copies of this publication are available in the House of Commons Library.
Retail Financial Services
Mr. French : To ask the Chancellor of the Exchequer what representations he has received regarding the introduction of statutory regulation for retail financial services.
Mr. Dorrell : The Financial Services Act 1986 provides a statutory framework for the regulation of retail and other financial services.
Personal Investment Authority
Mr. French : To ask the Chancellor of the Exchequer (1)what representations he has received from the clearing banks concerning the proposed formation of the personal investment authority ; (2) what representations he has received concerning the formation of the proposed personal investment authority.
Mr. Nelson : The recognition of self-regulating organisations under the Financial Services Act is primarily a matter for the Securities and Investments Board.
Securities and Investments Board
Mr. French : To ask the Chancellor of the Exchequer (1)what plans he has to give the Securities and Investments Board the power to exact civil penalties as an alternative to criminal prosecutions ; (2) what plans he has to modify the powers of the Securities and Investments Board.
Mr. Nelson : None. A wide range of powers has been transferred to the Securities and Investments Board under the Financial Services Act. These include powers to institute civil proceedings where appropriate.
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IMF and World Bank
Mr. Denham : To ask the Chancellor of the Exchequer if he will make it his policy to ensure that the voting records of the United Kingdom directors of the International Monetary Fund and the World bank are made publicly available.
Sir John Cope : The proceedings of the IMF and the World bank are confidential so as not to inhibit full and frank discussion. Within this constraint, the United Kingdom welcomes the greater openness recently shown by these institutions.
Company Car Tax
Mr. Madel : To ask the Chancellor of the Exchequer what proportion of responses to his consultation paper on reforming company car tax were broadly in favour of the Government's proposed price banding system ; and if he will make a statement.
Mr. Dorrell : The consultation period does not end until 13 November and a detailed analysis of the representations is therefore not yet available.
Treasury
Mr. Burns : To ask the Chancellor of the Exchequer, what proposals he has for changes in the running costs limits of the Treasury in 1992-93.
Mr. Nelson : The Treasury's running costs limit for 1992-93 is being reduced by £11,312,000 from £92,203,000 to £80,891,000 following the transfer of CCTA--the Government centre for information systems--and Chessington computer centre to the Office of Public Service and Science. The change will be reflected in a token supplementary estimate which will be presented for parliamentary approval in due course.
Cash Limits
Mr. Burns : To ask the Chancellor of the Exchequer what proposals he has for changes in the cash limit and running costs limit for 1992-93 for the Department for National Savings.
Mr. Nelson : Subject to Parliamentary approval of the necessary supplementary estimate, the cash limit for class XVIII, vote 10 (expenditure of the Department for National Savings on administration, publicity costs and certain other expenses) will be increased by £2, 611,000 from £195,066,000 to £197,677,000. The increase comprises of £1,616,000 take-up under the end-year flexibility arrangements for capital expenditure, £814,000 take-up of end-year flexibility for running costs (as announced by the Chief Secretary to the Treasury on 15 July 1992 ( Official Report columns 698-702 ) ), and £181,000 for sums payable to the Department of the Environment (Property Holdings) in respect of buildings maintenance.
As a result of these changes, the running costs limit for the Department for National Savings will be increased by £995,000 from £184,714,000 to £185,709,000.
The increase is within the forecast outturn for the planning total included in the Chancellor's autumn statement today.
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Mr. Burns : To ask the Chancellor of the Exchequer what proposals he has for changes in the cash limit and running costs limit for Customs and Excise for 1992-93.
Sir John Cope : Subject to parliamentary approval of the necessary supplementary estimate, the cash limit for class XVIII, vote 5 will be increased by £6,856,000 from £815,159,000 to £822,015,000 and the running cost limit by £2,458,000 from £697,352,000 to £699,810,000. The increase is within the forecast outturn for the planning total included in the Chancellor's autumn statement today.
The increase in the running cost limit arises from the full take-up of entitlement to end-year flexibility as announced by the Chief Secretary to the Treasury on 15 July 1992 Official Report, columns 698-702 , and additional maintenance provision transferred from Property Holdings. The increase in the cash limit also includes the full take-up of end-year flexibility entitlement on capital expenditure.
Mr. Burns : To ask the Chancellor of the Exchequer what proposals he has for changes in the cash limit and running costs limit for 1992-93 for the Inland Revenue.
Mr. Dorrell : The cash limit for class XVIII, vote 6 (Inland Revenue administration) is being reduced by £43,300,000 from £1,615, 071,000 to £1,571,771,000. The running cost limit is also being reduced by £25,300,000 from £1,526,077,000 to £1,500,777,000. The reduction is being made to reflect a lower expectation of the number of repayment claims following the abolition of composite rate tax, reduced provision for pay and slippage on some capital projects. The reductions are partially offset by extra work arising from the 1992 Finance Act and take up of end-year flexibility for running costs.
Bank of Credit and Commerce International
Mr. Vaz : To ask the Chancellor of the Exchequer when the Government were first informed of the costs of the liquidation of BCCI.
Mr. Nelson : I was first informed of the costs of the liquidation on 5 November.
Mr. Vaz : To ask the Chancellor of the Exchequer when the Economic Secretary to the Treasury last met Mr. Brian Smouha of the liquidator of BCCI ; and what was the purpose of the meeting.
Mr. Nelson : I met Mr. Smouha on 5 November. The purpose of the meeting was to acquaint myself with developments on the liquidation of BCCI in advance of the debate in the House on 6 November, Official Report, columns 523-94.
National Savings
Mr. Ainsworth : To ask the Chancellor of the Exchequer what plans he has to change the minimum deposit or purchase for national savings products.
Mr. Nelson : Small value transactions are expensive to administer so we regularly review the minimum deposit or purchase levels. As part of the survey of public expenditure priorities for the next three years I have decided that the following changes should be made :
Ordinary account minimum for each deposit--from £5 to £10.
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Investment account minimum for each deposit- -from £5 to £20. Premium bond minimum purchase for children under 16--from £10 to £100.Amendments to regulations to effect these changes will be brought before Parliament shortly.
I propose that these changes will come into effect from 1 February 1993.
The changes are expected to produce running cost savings on the Department for National Savings budget of just under £5 million in a full year.
Investors' Compensation
Mr. Hinchliffe : To ask the Chancellor of the Exchequer(1) what action he will take to help those persons who receive compensation from the investors compensation scheme in cases where this compensation does not meet the debts incurred from interest rates and legal cost, following the quantification date ; and if he will make a statement ;
(2) what additional assistance he can offer to clients of Fisher Prew-Smith Ltd. who have not received compensation under the Financial Services Act 1986 sufficient to cover their mortgage debts ; and if he will make a statement.
Mr. Nelson [holding answer 10 November 1992] : The rules of the investors compensation scheme are a matter for the Securities and Investment Board.
Mr. Hinchliffe : To ask the Chancellor of the Exchequer if he will take steps to ensure that the clients of Fisher Prew-Smith Ltd. do not lose their homes ; and if he will make a statement.
Mr. Nelson [holding answer 10 November 1992] : Borrowers should contact their building society to discuss interest and repayment arrangements as the societies have made clear that they want to enable borrowers to stay in their homes.
Mr. Hinchliffe : To ask the Chancellor of the Exchequer if he will investigate the involvement of the West Bromwich Building Society in the affairs of Fisher Prew-Smith Ltd.
Mr. Nelson [holding answer 10 November 1992] : The prudential supervision of building societies is a matter for the Building Societies Commission.
Mr. Hinchliffe : To ask the Chancellor of the Exchequer (1) if he will undertake an investigation into the conduct of Fisher Prew-Smith Ltd.; what action he will take to assist persons who have lost money as a result of home income plans ; and if he will make a statement ; (2) if he will investigate the conduct of Ruben Walter Investment Management Ltd. in their handling of investments following the collapse of Fisher Prew-Smith Ltd.
Mr. Nelson [holding answer 10 November 1992] : The regulation of investment businesses is a matter for the Securities and Investments Board and the recognised bodies under the Financial Services Act. Where the investors compensation scheme has declared firms in default, private investors may be eligible for compensation in respect of their losses arising from investment business conducted by the firm.
Column 971
TRADE AND INDUSTRY
Coal
Mr. Simon Hughes : To ask the President of the Board of Trade how much financial support Her Majesty's Government have given to the coal industry in each year since 1979, indicating what proportion in each year was to fund assistance for redundancies ; and if he will make a statement.
Mr. Eggar : Grant aid made available to the coal industry from 1979- 80 to 1991-92 inclusive is set out in the table which follows. All payments under the RMPS and about 90 per cent. of restructuring grant payments can be classified as assistance with redundancies.
£ millions
Financial Year |RMPS<1> |Restructur-ing grant|Other grants |Total grants
------------------------------------------------------------------------------------------------------------------------------
1979-80 |15 |251 |266
1980-81 |15 |254 |269
1981-82 |48 |575 |623
1982-83 |80 |520 |600
1983-84 |190 |1,145 |1,335
1984-85 |200 |2,414 |2,614
1985-86 |563 |563 |1,126
1986-87 |610 |882 |1,492
1987-88 |295 |435 |242 |972
1988-89 |171 |255 |42 |468
1989-90 |128 |619 |6,624 |7,371
1990-91 |93 |141 |0 |234
1991-92 |69 |457 |0 |526
|--- |--- |--- |---
Total |2,477 |1,907 |13,512 |17,896
<1> Redundant mineworkers payments scheme.
In addition to Government financial support, British Coal has been benefiting from the high margins, over and above world market prices, that the electricity generators pay for their coal supplies from the corporation. Under present contracts, which have been operating since April 1990, this assistance amounts to about £1 billion annually.
Pit Closures
Mr. Simon Hughes : To ask the President of the Board of Trade, what will be Lord Walker's salary for administering assistance measures to areas affected by colliery closures ; and if he will make a statement.
Mr. Cohen : To ask the President of the Board of Trade what arrangements have been made for the remuneration of Lord Walker for his work in connection with pit closures ; and what are the full terms and conditions of Lord Walker's contract.
Mr. Morgan : To ask the President of the Board of Trade, pursuant to his statement on 21 October, if he will announce the terms and conditions of the appointment of Lord Walker to assist and advise on the creation of alternative job creation in pit closure areas ; and what relationship it will have with his appointment, and the terms and conditions thereof, as chairman-elect of the urban regeneration agency.
Mr. Gordon Prentice : To ask the President of the Board of Trade if he will indicate the relevant experience and qualities of Lord Walker leading to his appointment as the person to lead the review of the impact on the mining communities of the proposed pit closures.
Column 972
Mr. Madden : To ask the President of the Board of Trade on what terms, including salary, he has appointed Lord Walker to co-ordinate action to regenerate areas where coal mines are to be closed ; and if he will make a statement.
Mr. Hanson : To ask the President of the Board of Trade, pursuant to his statement of 19 October, Official Report, column 207, if Lord Walker's post as adviser to his Department is to be remunerated.
Mrs. Jane Kennedy : To ask the President of the Board of Trade what salary will be paid to Lord Walker for his work in overseeing the Government's proposed aid to the coal mining areas.
Mr. Mackinlay : To ask the President of the Board of Trade what salary, per diem, or other emoluments Lord Walker will receive whilst fulfilling his duties in respect of assistance to the communities affected by coal closures.
Mr. Heseltine [holding answers 22, 23 and 29 October 1992] : The Government intend to see that measures of assistance for coal closure areas are effectively targeted and that any wasteful duplication is avoided. Lord Walker will be an adviser to me and my right hon. Friend the Secretary of State for Wales. I see his role as being wide-ranging and will want him to look at any issues relating to the facilitation and co- ordination of the regeneration of the coalfield areas. In addition I have asked him to advise me on the broader implications of this for the delivery of my Department's regional policy and inward investment measures. He will liaise closely with bodies promoting regeneration and will advise me and my right hon. Friend on any measures which could be taken to promote economic revival of the areas. Lord Walker will carry out his work on coalfield regeneration in addition to his role as chairman designate of the urban regeneration agency. He will do this work without remuneration.
Mr. Cryer : To ask the President of the Board of Trade what office staff and transport facilities will be provided for Lord Walker for his duties as co-ordinator for the coal fields ; and what is the estimated annual cost of staff and office costs for this purpose.
Mr. Heseltine : [holding answer 23 October 1992] : My Department and the Welsh Office will provide all the back-up support which Lord Walker may need. Other Departments concerned will also be closely involved in this work. This support will be provided from within existing resources.
Mr. Austin Mitchell : To ask the President of the Board of Trade if he will now introduce legislation to reverse the Caparo judgment.
Mr. Neil Hamilton : We have no plans to do so.
Cash Limits
Mr. Milligan : To ask the President of the Board of Trade what changes will be made to his Department's cash limits and running costs limit for 1992-93.
Mr. Heseltine : Subject to parliamentary approval of the necessary supplementary estimate, the cash limit for class IV, vote 2 (support for industry, international trade,
Column 973
statutory and regulatory work, consumer protection and administration) will be increased by £25,707,000 from £778,524,000 to £804,231,100. The cash limit for class V, vote 3 (administration) will be reduced by £23,789,000 from £43,295,000 to £19,506,000. Following a transfer from Property Holdings for building maintenance, the running costs limit for the Department of Trade and Industry is being increased by £311,000 from £305,362,000 to £305,673,000. The supplementary estimate for £25,707,000 on class IV, vote 2 includes an increase of £1,657,000 in departmental and research establishments' capital expenditure as a result of take-up under the end-year flexibility arrangements announced by the Chief Secretary to the Treasury on 15 July 1992, Official Report , columns 698-702. A transfer of administrative expenditure and receipts totalling £23,789,000 from class V, vote 3 is being made, mainly following amalgamation of central divisions previously on that vote. The remaining net adjustments include the £311,000 property holdings transfer referred to above and a transfer to the Office of Science and Technology of £50,000 as a contribution to the Royal Society's programme of support for CIS scientists.There is a rise of £3,173,000 in gross provision for consumer and investor protection, reflecting increased expenditure on company investigations and £1,900,000 in gross provision for the consultancy initiatives as a result of higher than expected demand for the scheme. These increases are wholly offset by reductions in gross provision and increases in appropriations in aid elsewhere on the Vote. There are adjustments to inter-departmental payments following machinery of government changes to the Department of Environment (class VIII, vote 8), HM Treasury (class XVIII, vote V) and Department of National Heritage (class XII, vote 5).
There are some other changes in the allocation of provision. These include adjustments made between measurement and technolgoy support and the National Physical laboratory in respect of depreciation policy and Warren Spring laboratory for repositioning. All the changes are within the forecast outturn for the planning total included in the Chancellor's autumn statement today.
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