House of Commons Hansard Debates for 11 Jan 1993

Mr. Wicks : To ask the Chancellor of the Exchequer if he will provide figures for 1979 and 1989 showing, on an equivalent income basis, the proportion of households consisting of (a) one adult with children, (b) two adults with children, (c) non-retired without children and (d) retired in each quintile of (a) original income and (b) post-tax income, as defined in the annual articles in Economic Trends on the effects of taxes and benefits.

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Mr. Nelson : The information is not available in the precise form requested because only one method of ranking is used to produce the annual article in Economic Trends and this uses equivalised disposal income. The data for 1979 were first published on an unequivalised basis and have been reworked on an equivalised basis. The figures are given in the table :

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Mr. Wicks : To ask the Chancellor of the Exchequer how many (a) working families with children and (b) childless people in work had incomes below the tax threshold at the latest date for which information is available.

Mr. Dorrell : There are an estimated 450,000 working families with children and 1.1 million childless people at work who have incomes below the income tax threshold and are therefore not liable to income tax in 1992 -93. For this purpose, income is calculated as total income for income tax purposes, excluding any non-taxable social security benefits, less tax reliefs and is compared witht he appropriate levels of personal tax allowances. The estimates are based on information projected from the 1990 and 1991 family expenditure surveys and are therefore provisional.

Local Government Finance

Mr. Straw : To ask the Chancellor of the Exchequer what estimates he has made of the effect on levels of employment and prices and on the balance of payments of (a) an additional £2 billion of local authority revenue expenditure financed by (i) local taxation and (ii) additional revenue support grant and (b) an additional £2 billion of local authority capital expenditure financed by (1) the use of set aside capital receipts and (2) borrowing.

Mr. Portillo : The effects on levels of employment, prices and on the balance of payments of the measures mentioned would depend on a number of assumptions about economic behaviour at both local and national level, as well as the precise details of these measures.

EC Spending

Sir Teddy Taylor : To ask the Chancellor of the Exchequer what is his latest estimate of spending by the EC, expressed in pounds sterling in 1992 ; and what percentage increase in this spending is envisaged by 1999 following the Edinburgh Council of 11-12 December.

Sir John Cope : Following the adoption of the third supplementary and amending budget, the budget of the European Communities for 1992 amounts to 63,907 million ecu in commitment appropriations, or £52 billion, at the exchange rate prevailing on 30 November 1992 (£1 = ECU 1.2290) and 61,097 million ecu in payment appropriations, or £49.7 billion. The Edinburgh European Council agreed a financial perspective for the next seven years which provides ceilings for spending in 1999 of 84,089 million ecu, £68.4 billion, for commitment appropriation and 80,114 million ecu, £65.2 billion, for payment appropriations--all in 1992 prices. These represent increases of 31.6 per cent. and 31.1 per cent. respectively over spending in 1992. However, the 1999 figures are ceilings for the budget, not targets for spending levels. Actual spending in 1999

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will be set in the budgetary procedure for that year and will reflect the rate of economic growth achieved in the next seven years, as well as other factors such as enlargement of the Community. Spending is constrained by the legally binding ceiling on own resources for payment appropriations, which will be 1.27 per cent. of Community GNP in 1999.

Personal Taxation

Mr. Nicholas Brown : To ask the Chancellor of the Exchequer how much in real terms the average annual tax payments of a man with no allowances and reliefs other than the married couple's allowance earning (a) £5,000, (b) £10,000, (c) £15,000 and (d) £20,000 have changed since 1978-79.

Mr. Dorrell : Income tax for a married man as a percentage of gross income is as follows :

Trade Statistics

Mr. Gordon Prentice : To ask the Chancellor of the Exchequer what arrangements are to be made for the publication of statistics of trade with the European Community in 1993.

Mr. Nelson : With the completion of the single market on 1 January, most border formalities for goods traded with other member states are abolished. As the associated documentation forms the source of the current visible trade statistics, normal publication of figures for trade with the European Community will be suspended while a new system for the collection of the statistics, Intrastat, becomes established. The monthly press notice published on 28 January, showing December's trade figures, will be the last in the present form. Details of our trade with non-EC countries will continue to be published monthly.

Aggregate figures for whole world trade, including that with the European Community, for the first quarter 1993 balance of payments and GDP will be published in mid-June 1993. Shortly thereafter it is planned to resume the publication of the monthly "Balance of Payments--Current Account" press notices with aggregate figures for intra-Community trade.

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The initial pattern of publication of detailed figures for visible trade with the European Community will be a quarterly volume containing monthly details at eight-digit commodity code level, which should be available shortly after the resumption of the monthly press notices. The monthly information will also be available from Customs and Excise-approved marketing agents.

This initial delay in the publication of figures is planned to be reduced as the year progresses.

Unit Trust Holdings

Mr. Burns : To ask the Chancellor of the Exchequer what changes are proposed to the tax rules which apply to unit trust holdings owned by life assurance companies.

Mr. Dorrell : On 30 December 1992 I announced changes to the new charge to tax on life assurance companies brought in by the Finance Act 1990. The charge arises on the deemed disposal of their holdings in authorised unit trusts and certain offshore funds.

For most companies the charge is due to come into effect for accounting periods beginning on 1 January 1992. We propose to defer the charge for one year so that it relates first to accounting periods beginning on or after 1 January 1993.

The existing measures can, however, produce a higher tax charge than was intended ; and we propose to bring forward amending legislation in the 1993 Finance Bill to counter this effect. There will also be amendments to the transitional provisions.

The Inland Revenue press release of 30 December 1992 containing the text of my announcement, and further details of the proposals, has been placed in the House of Commons Library.

Employee Share Schemes

Mr. Mudie : To ask the Chancellor of the Exchequer how soon he expects to announce details of the introduction and operation of approved employee share schemes up to the end of March 1992.

Mr. Dorrell : Estimated figures for the year ended March 1992 will be issued shortly in an Inland Revenue press release.

Mr. Mudie : To ask the Chancellor of the Exchequer when the Inland Revenue next intends to revise and update its booklets and leaflets on approved employee share schemes to include in particular reference to buy one get one free matching share offers and the single company PEPs facilities.

Mr. Dorrell : The Inland Revenue is planning to issue revised versions of these booklets and leaflets, reflecting recent changes in legislation, in the course of this year.

Matrix Churchill

Mr. Butcher : To ask the Chancellor of the Exchequer if he will review the actions of Her Majesty's Customs and Excise in respect of its dealings with Matrix Churchill to assess whether compensation should be paid to the ex-employees of Matrix Churchill.

Sir John Cope : The Government have already established an independent inquiry under Lord Justice Scott with broad terms of reference which will enable Her

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Majesty's Customs and Excise actions in the Matrix Churchill case to be fully examined. It would be inappropriate for me to undertake a separate review.

As regards the issue of compensation, I would draw the hon. Member's attention to the advice of my right hon. and learned Friend the Attorney- General to the House on 10 November 1992, Official Report, c. 746-47, that if there is a prosecution which subsequently fails or is withdrawn for any particular reason, representations can be made, but is has never been the policy for there to be formal compensation in these circumstances.

Departmental Property

Mr. Straw : To ask the Chancellor of the Exchequer if he will list (a) the total number of residential properties owned by his Departments, (b) the number of such properties which are empty and (c) , (b) as a percentage of (a) .

Sir John Cope : The only residential properties owned by the Chancellor's Departments are two owned by Customs and Excise. Both are fully occupied.

Inland Revenue

Mr. Madden : To ask the Chancellor of the Exchequer what representations he has received regarding the implications for staffing levels and confidentiality of Inland Revenue services being offered to private tender ; and if he will make a statement.

Mr. Dorrell : We have received a number of representations about the market testing of services in the Inland Revenue. Any implications for staffing levels will depend on the outcome of particular market tests ; we believe that, if work is contracted out, there are sufficient safeguards to ensure that the privacy of information about taxpayers will continue to be properly protected.

Bank of Credit and Commerce International

Mr. Vaz : To ask the Chancellor of the Exchequer how many claims have been submitted in the former deposits of BCCI under the provisions of the Deposit Protection Board ; how much has so far been paid to them ; and how much is to be paid.

Mr. Nelson : As at 7 January 1993 some 16,700 claims had been lodged with the Deposit Protection Board. Of these the claims so far processed have given rise to compensation payments totalling £60.5 million. The size of the eventual payment to these claimants will depend on the scale and nature of claims still to be processed.

Redundancy

Mr. Morgan : To ask the Chancellor of the Exchequer, what guidelines he has established for the use of non-disclosure agreements as part of redundancy and early retirement settlements in the public service ; if he will set up a study into how many former officials of non-departmental public bodies have signed such agreements in such circumstances ; and what premium was paid to them for signing such agreements ; and if he will make a statement.

Mr. Portillo : Employees generally have an implied duty not to misuse confidential information which they have

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obtained in the course of their employment. In most situations, this would restrict disclosure of confidential information without proper authority. The duty continues to apply even after they have left.

There are no central guidelines or instructions which require former employees of non-departmental public bodies not to disclose the terms of their redundancy or early retirement settlements. My right hon. Friend has no plans to set up a study of the kind suggested. I should not expect redundancy or early retirement arrangements to include an agreement restricting disclosure of the terms of any financial settlement. Details of such settlements will in any event be available to the Comptroller and Auditor General in the course of any audit or inspection he undertakes of a body's records.

HOUSE OF COMMONS

Financial Management

35. Mr. Steen : To ask the right hon. Member for

Berwick-upon-Tweed, representing the House of Commons Commission, what developments have taken place in financial management and scrutiny of House expenditure in the current financial year.

Mr. Beith : As well as the establishment of the domestic committees and the Finance and Services Committee, good progress has been made in improving financial management systems in House Departments. These include the allocation of departmental budgets and delegation of authority to incur expenditure and approve payments. Further improvements are planned by the Director of Finance and Administration.

Contracting Out

Mr. David Evans : To ask the right hon. Member for

Berwick-upon-Tweed, representing the House of Commons Commission, if he will make a statement on policy towards contracting out of House of Commons services.

Mr. Beith : Services are contracted out where this can meet the requirements of the House and provide benefits in quality, efficiency and value for money.

Next Steps Agencies

Mr. Clifton-Brown : To ask the Chairman of the Public Accounts Commission if he will make a statement on the resources available to the National Audit Office to undertake effective auditing of all projected next steps agencies.

Sir Peter Hordern : The Comptroller and Auditor General is the statutory auditor of all the agencies. The National Audit Office's corporate plan for 1993-94 to 1997-98, considered and approved by the commission in July 1992, includes resources for the audit of existing agencies and those expected to be established over the next five years.

Domestic Committees (Oral Questions)

42. Mr. Hain : To ask the Lord President of the Council what plans he has to allow time for answering of oral questions by Chairmen of the domestic Committees.

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Mr. Newton : None. Oral questions are already answered on behalf of the House of Commons Commission, and now that the Finance and Services Committee has been nominated, arrangements will be made for its Chairman also to answer oral questions as appropriate. For the other domestic committees, there are no plans to go beyond the existing provision for their Chairmen to answer written questions.

PRIME MINISTER

Scottish Constitution

Mr. Home Robertson : To ask the Prime Minister if he will list the people whom he has consulted in connection with his stocktaking exercise about Scotland's constitutional position.

The Prime Minister : I have had frequent opportunities to hear views from people of all political persuasions and from many backgrounds, including the church, the law, business, academic life, the arts and the media.

India

Mr. Vaz : To ask the Prime Minister which cities he intends to visit on his next visit to India.

The Prime Minister : I shall visit Delhi as a guest of the Indian Government on republic day on 26 January. I shall also visit Bombay.

UN Population Conference

Mr. Worthington : To ask the Prime Minister (1) in which country the United Nations conference on world population will be held ; and on what dates ;

(2) what proposals the Government have to involve relevant non-governmental organisations in preparation for the 1994 United Nations conference on world population ;

(3) what proposals the Government have to enable (a) relevant non- governmental organisations and (b) hon. Members to attend the 1994 United Nations conference on world population ;

(4) which Government Department is to be responsible for the 1994 United Nations population conference.

The Prime Minister : The international conference on population and development will take place in Cairo from 5 to 13 September 1994. A decision will be taken shortly on which Government Department will also take prime responsibility for United Kingdom preparations for the conference. The Government will make proposals shortly for how hon. Members and relevant non-governmental organisations might be involved in the preparations.

Committee of Permanent Representatives

Mr. Llew Smith : To ask the Prime Minister what proposals he has to apply the decision to improve transparency in the activities of the European Council to the availability to Parliament of (a) the minutes of COREPER and (b) proposals prepared by COREPER for the Council prior to their consideration by the Council.

The Prime Minister : There are no such plans.

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EC Monetary Reserve

Sir Teddy Taylor : To ask the Prime Minister why the European Council in Edinburgh concluded that the EC's monetary reserve should be halved between 1994 and 1995 ; and if he will make a statement.

The Prime Minister : The decision was taken in the light of the recent reform of the CAP, which involves a shift away from price support towards direct payments to producers. That should make CAP expenditure progressively less susceptible to the impact of fluctuations in the dollar/ecu exchange rate.

EC Agriculture Spending

Sir Teddy Taylor : To ask the Prime Minister why the European Council concluded on 11-12 December that agriculture spending by the EC would fall between 1993 and 1994 ; and if he will make a statement.

The Prime Minister : The figures to which my hon. Friend refers are those for the agricultural guidelines in constant 1992 prices. The guideline is calculated in real terms by up-rating the 1988 baseline figure by 74 per cent. of the estimated growth in real Community gross national product (GNP) between 1988 and the year in question. This calculation takes place when the Commission submits its preliminary draft budget. For 1993, therefore, the guideline was calculated in May 1992. Subsequently, the estimate of Community GNP was revised downwards. Although the decision was too late to affect the 1993 figure it will be reflected in the guideline for 1994 and thereafter. The estimate for the guideline for 1994 to 1999, used by the European Council in its future financing plans, takes account of this latest information.

European Environmental Agency

Mr. Llew Smith : To ask the Prime Minister what arrangements were agreed at the Edinburgh summit for the siting of the European Environmental Agency.

The Prime Minister : It was agreed at the European Council that the siting of the European Environmental Agency will be decided by common agreement between member states at a forthcoming European Council, giving appropriate priority to member states who do not at present provide the sites for Community institutions.

Edinburgh Summit

Sir Teddy Taylor : To ask the Prime Minister if section A (Citizenship) on page 5 B of part B of the "Conclusions of the Presidency" in Edinburgh was designed by the Council to apply to all member states.

The Prime Minister : The section referred to by the hon. Member was designed to meet Danish concerns but it represents an interpretation of the provisions of the Maastricht treaty relating to citizenship of the union which was agreed by all member states and is true for all of them.

Mr. Austin Mitchell : To ask the Prime Minister what procedures he proposes for ratification of the inter-governmental agreement reached at Edinburgh on Danish qualifications to the Maastricht treaty.

The Prime Minister : The decision does not require ratification.

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Mr. Llew Smith : To ask the Prime Minister if he will make a statement on how Her Majesty's Government propose to implement the decision set out at paragraph 7 of the Edinburgh declaration on the conclusions of the United Kingdom presidency of the European Council to increase public investment in decision-making.

The Prime Minister : The United Kingdom will work closely with other members of the Council, the Commission and Parliament to ensure that the measures on transparency agreed in Edinburgh are put into practice as soon as possible.

Sir Teddy Taylor : To ask the Prime Minister why the European Council in Edinburgh concluded that there should be no increase in the provision of loan guarantees between 1993 and 1999 ; and if he will make a statement.

The Prime Minister : The Edinburgh European Council endorsed the conclusions of the ECOFIN Council in October that the Community's growing international responsibilities had led to an increase in the level and scope of lending to non-member states backed by guarantees on the EC budget, and that considerations of prudent budgetary management and financial discipline called for the establishment of a new financial framework, including an appropriate form of provisioning. The European Council accordingly agreed that a guarantee fund should be established, with a target size of 10 per cent. of the Community's outstanding liabilities arising from external loans and guarantees ; and that this should be financed by a reserve in the financial perspective not exceeding 300 million ECU in each year from 1993 to 1999 (in 1992 prices), from which payments would be made into the fund in proportion to the value of new loans agreed. This framework will be sufficient to allow continuing significant levels of new lending to non-member states guaranteed on the EC budget.

Mr. Spearing : To ask the Prime Minister if he will give the names of the persons signing their names as plenipotentiary of each relevant state to the inter-governmental decision relating to Denmark at the European Council meeting in Edinburgh.

The Prime Minister : The decision relating to Denmark was not signed. This does not affect its character as an agreement binding in international law between the parties to the treaty on European union on how certain of its provisions are to be interpreted and applied.

Princess of Wales

Mr. Hoyle : To ask the Prime Minister what advice he received from sources outside the Government concerning the constitutional position of the accession to the throne of the Princess of Wales, before making his statement to the House of 9 December.

The Prime Minister : The advice which I took on this matter is confidential.

Gambling

Mr. Peter Bottomley : To ask the Prime Minister if he will describe the process by which concerned people can contribute to and respond to Government ideas on maintaining, abolishing or changing the restrictions on stimulation of gaming or gambling.

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The Prime Minister : The processes are the same as those for any other aspect of Government policy. As necessary, the Government issue consultation documents on particular aspects of the gambling controls. In addition, interested parties may at any time make their views known direct to Government or via Members of Parliament.

Iraq (Equipment)

Mr. Oppenheim : To ask the Prime Minister what information he has on the comparative sales of machine tools to Iraq from (a) the United Kingdom, (b) the United States of America, (c) France, (d) Italy and (e) COMECON countries in 1987, 1988 and 1989.

The Prime Minister [holding answer 24 November 1992] : The information requested for the first four countries is set out in the following table :

The corresponding information for COMECON countries is not available.

OVERSEAS DEVELOPMENT ADMINISTRATION

St. Helena

Dr. Marek : To ask the Secretary of State for Foreign and Commonwealth Affairs who will be responsible for paying compensation as a result of the late delivery to St. Helena of a new power generator.

Mr. Lennox-Boyd : A 1 MW diesel generator was provided last year for the use of St. Helena's public works and services department at a cost of £562,000 to aid funds. It was supplied by Mirrlees Blackstone Ltd., shipped on schedule abord the RMS St. Helena arriving on 4 May 1992, and taken over by the public works and services

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department on 21 July 1992 following installation and commissioning tests. No delay in delivery occurred and the question of compensation does not arise.

Southern Africa

Mr. Simon Hughes : To ask the Secretary of State for Education what assessment his Department has made of the impact of the current and forecast rains on the prospects for the drought-affected areas of southern Africa ; and if he will make a statement.

Mr. Lennox-Boyd : I have been asked to reply.

Initial reports of the rains are encouraging for most parts of the region, but good rains over the next two months are critical. We shall continue to monitor the situation closely with the relevant international organisations and NGOs ; and are ready to assist, particularly in areas where the rains have failed or where for other reasons people have been unable to plant.

Timber

Mr. Corbyn : To ask the Secretary of State for Foreign and Commonwealth Affairs if he will take steps to ensure that timber imported into the United Kingdom has not been logged from tribal people's land without their free and informed consent.

Mr. Lennox-Boyd : Except as provided for under the convention on international trade in endangered species, the United Kingdom does not restrict timber imports and has no plans to do so. Questions of land and forest ownership rights are primarily the responsibility of the Governments of the countries where the forest lie. We are prepared to consider requests from developing countries for aid in forest resource conservation and management.

Malagasy Republic

Mr. Dalyell : To ask the Secretary of State for Foreign and Commonwealth Affairs what progress the Minister for Overseas Development has made in sourcing the most appropriate items of equipment, and identifying suitable people to fill the supporting personnel requirements, to implement the Food and Agriculture Organisation consultant's recommendations on locusts in the Malagasy Republic.

Mr. Lennox-Boyd : Sources for the provision of equipment have been identified. The specification and frequency acceptability of the telecommunications equipment is still being cleared with the Food and Agriculture Organisation co-ordinator and the Madagascan authorities. As soon as these matters are formally cleared procurement of all the equipment will be undertaken and the associated training input put in hand.

Debtor Countries

Mr. Meacher : To ask the Secretary of State for Foreign and Commonwealth Affairs what is the total amount of debt interest payments made to the United Kingdom in the past 10 years by each of the severely indebted countries, according to the UN definition ; and how much was received by each of them in aid over the same period.

Mr. Lennox-Boyd : My noble Friend the Minister for Overseas Development will write to the hon. Member.

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