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Mr. Kenneth Carlisle : The proposed route of the A1(M) crosses over the M62 approximately half a mile west of junction 33. From this point, the new A1(M) would run alongside the M62 for a distance of approximately one mile to the proposed interchange at Ferrybridge.
Mr. William O'Brien : To ask the Secretary of State for Transport what is the distance between the planned route of the A1 and the M62 where they run side by side in Ferrybridge, West Yorkshire.
Mr. Kenneth Carlisle : The distance varies. While precise details of the separation will depend on detailed design, the routes would run as closely together as practicable.
Mr. Hicks : To ask the Secretary of State for Transport when he intends announcing the options for possible routes for the A38 trunk road improvement between Saltash and Trerulefoot ; and if he will make a statement.
Mr. Kenneth Carlisle : The public will be consulted on possible routes for the improvement of the A38 trunk road between Saltash and Trerulefoot later this year.
Mr. Hicks : To ask the Secretary of State for Transport when he expects construction work to begin on the Dobwalls bypass section of the A38 trunk road improvement between Liskeard and Bodmin ; and if he will make a statement.
Mr. Kenneth Carlisle : The Dobwalls bypass is one section of a much larger trunk road scheme which would link the A38 Liskeard bypass to the A30 Bodmin bypass. Construction could start in the latter part of the decade, depending on satisfactory progress with statutory procedures and the availability of funds at the time.
Mr. Hicks : To ask the Secretary of State for Transport when he intends announcing his Department's preferred route for the A38 trunk road improvement between Liskeard and Bodmin immediately to the west of Dobwalls ; and if he will make a statement.
Mr. Kenneth Carlisle : I expect to announce the preferred route for the remaining section of the A38 Liskeard to Bodmin improvement scheme before Easter.
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Mr. Foulkes : To ask the Secretary of State for Transport if he will make a statement on developments in respect of investigations into the loss of the fishing vessel Pescado since the report of the marine accident investigation branch ; what further information he has regarding submarine activity in the area at the time ; and if he will make a statement.
Mr. Steven Norris : The circumstances surrounding the loss of the Pescado have been investigated by the marine accident investigation branch. Action on the seven recommendations made by MAIB is being urgently pursued. The Ministry of Defence provided details of warship movements in the area from 25 February to 5 March 1991. Two submarines were in surface transit during that period.
Mr. Gapes : To ask the Secretary of State for Transport what representations he has received regarding environmental impact of transfer of current traffic from rail to road as a result of the planned closure of the Eastgate to Bishop Auckland line.
Mr. Freeman : I have received no specific representations about the withdrawal of cement traffic from the Eastgate to Bishop Auckland line. However, some correspondents have mentioned the loss of cement traffic when raising various rail freight issues generally with my Department.
Ms. Walley : To ask the Secretary of State for Transport when he intends to publish revised traffic projection figures.
Mr. Kenneth Carlisle : The current national road traffic forecast was published in 1989. The forecast is kept under constant review, but I have no present plans to publish a revision.
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Mr. Wallace : To ask the Secretary of State for Transport if he will list the product licence status in respect of each dispersant used to date in dispersing oil spilled from MV Braer.
Mr. Curry [holding answer 14 January 1993] : I have been asked to reply.
The information requested is as follows :
Product |Date approved |Tested and approved |for -------------------------------------------------------------------------------- Enersperse 1583 |30 April 1986 |Sea |Rocky shores |Sandy beaches Dispolene 34S |25 March 1980 |Sea |19 September 1985 |Sandy beaches Dasic Slickgone |6 April 1984 |Sea LTSW |7 April 1989 |Sandy beaches
Mr. Battle : To ask the Chancellor of the Exchequer how many new lettings from investments under the business expansion scheme there were in (a) each region and (b) the United Kingdom as a whole ; and what percentage these figures represent of (i) all privately rented property and (ii) all rented property, for each year of its existence.
Mr. Dorrell : The business expansion scheme was extended to include investment in privately rented housing in 1988-89. Reliable estimates by regions are available for years up to 1990-91. These and preliminary estimates for the United Kingdom total in 1991-92 are shown in the table.
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New lettings as a percentage of: |Total number<1> |All privately rented|All rented property |property |(per cent) |(per cent) ------------------------------------------------------------------------------------------------------------- 1988-89 England: South-East |2,200 |0.37 |0.10 East Anglia |300 |0.33 |0.11 South-West |300 |0.16 |0.06 West Midlands |300 |0.23 |0.04 East Midlands |400 |0.31 |0.08 Yorkshire and Humberside |400 |0.26 |0.06 North-West |1,100 |0.71 |0.13 North |200 |0.22 |0.04 Wales |400 |0.47 |0.11 Scotland |800 |0.58 |0.07 Northern Ireland |neg |neg |neg United Kingdom |6,400 |0.36 |0.08 1989-90 England: South-East |1,200 |0.20 |0.05 East Anglia |100 |0.11 |0.04 South-West |100 |0.05 |0.02 West Midlands |100 |0.08 |0.01 East Midlands |200 |0.16 |0.04 Yorkshire and Humberside |400 |0.26 |0.06 North-West |500 |0.33 |0.06 North |neg |neg |neg Wales |neg |neg |neg Scotland |400 |0.30 |0.04 Northern Ireland |100 |0.45 |0.05 United Kingdom |3,100 |0.18 |0.04 1990-91 England: South-East |2,500 |0.42 |0.11 East Anglia |1,100 |1.24 |0.43 South-West |500 |0.26 |0.10 West Midlands |100 |0.08 |0.01 East Midlands |400 |0.31 |0.08 Yorkshire and Humberside |100 |0.07 |0.01 North-West |500 |0.33 |0.06 North |neg |neg |neg Wales |neg |neg |neg Scotland |100 |0.08 |0.01 Northern Ireland |400 |1.82 |0.20 United Kingdom |5,700 |0.33 |0.07 1991-92 United Kingdom |8,500 |0.49 |0.11 Note: neg=Negligible. <1>Estimates rounded to nearest 100.
Mr. Simon Hughes : To ask the Chancellor of the Exchequer what plans he has to amend the rules for ministerial expenses to encourage the use of bicycles by Ministers on official duties ; and if he will make a statement.
Mrs. Dunwoody : To ask the Chancellor of the Exchequer what estimate he has of the amount of tax the Government received from cigarettes sold illegally to people under age in the last financial year.
Sir John Cope : Evidence on the consumption of cigarettes by children aged under 16 is provided by the survey "Smoking among secondary school children in 1990" carried out by the Office of Population Censuses and Surveys. But we have no estimate of the proportion of total consumption that is met from cigarettes illegally sold to people under age as children also acquire cigarettes from parents and other sources. Nor do we have an estimate of the proportion of cigarettes illegally sold to children for consumption by parents or other adults.
Mr. Beith : To ask the Chancellor of the Exchequer, pursuant to his answer of 17 December 1992, Official Report, columns 378-79, what authority to impose civil penalties for failure to submit EC sales statements is contained in (a) section 82 of the Finance Act 1992 and (b) paragraph 82 of schedule 3 to the Finance (No. 2) Act 1992.
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Mr. Lamont : The authority to impose civil penalties for failure to submit European sales lists derives from an amendment to the Finance Act 1985--enforcement provisions in relation to value added tax. Section 82 of the Finance (No. 2) Act 1992 amends the 1985 Act by the introduction of a new section 17A covering European sales list penalties--for failure to submit.
Mr. Beith : To ask the Chancellor of the Exchequer, pursuant to his answer of 13 November 1992, Official Report, column 1003, what is the maximum penalty under sub-paragraph 6(c) of paragraph 82 of schedule 3 to the Finance (No. 2) Act 1992, for failure to submit an EC sales statement.
Mr. Lamont : The maximum penalty--for third and subsequent default-- is £1,500.
Mr. Wigley : To ask the Chancellor of the Exchequer (1) how many people have been employed by (a) the Inland Revenue and (b) Customs and Excise specifically to tackle tax evasion in each of the last five years ;
(2) how much money has been allocated by his Department to (a) the Inland Revenue and (b) Customs and Excise to tackle tax evasion in each of the last five years.
Mr. Dorrell : In Customs and Excise officials with responsibility for tackling tax evasion may have other duties. This is true, to a lesser degree, of the Inland Revenue, where most counter-evasion work is carried out by inspectors of taxes. On this basis, the approximate numbers of staff units/year engaged in such work, and the related costs to their respective Departments, were as follows :
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Staff UnitsCost £ million |IR |C&E |IR |C&E -------------------------------------- 1987-88 |2,800|7,000|70 |111 1988-89 |3,100|7,100|79 |125 1989-90 |3,200|7,300|89 |139 1990-91 |3,300|7,300|102 |152 1991-92 |3,600|7,200|115 |166
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what representations he has received about bringing the tax regime and rates for foreign vessels registered in the United Kingdom and the companies running them into line with those applying to United Kingdom-owned vessels and companies.
Mr. Dorrell : We receive representations on this subject from time to time.
Mr. Davidson : To ask the Chancellor of the Exchequer (1) if he will publish expanded versions of tables 2B.2, 2B.3 and 2B.4 of his "Autumn Statement 1992", Cm. 2096, which (i) subdivide technical adjustments into (a) transfers of function, (b) changes of financing responsibility, (c) classification changes reflecting changes in the way public expenditure is measures, (d) other technical changes and (e) cyclical social security ; (ii) subdivide other changes into (a) revised estimates of the costs of existing policies, (b) expenditure changes resulting from policy changes and (c) other and (iii) provide technical notes as to which of these categories of adjustment have occasioned restatements of outturn-year figures in Cm. 2096 ;
(2) if he will publish (a) an analysis of the factors underlying the trend in table 2B.1 of his "Autumn Statement", Cm. 2096, of the net effects of the changes from charging all accruing superannuation costs to civil and defence departmental budgets over the period 1987-88 to 1994-95 and (b) an analysis by departmental programme of accrued pension liabilities at 31 March 1993 ; and for what reasons it is judged appropriate to take the differences between payments and accruals outside the new control total ;
(3) if he will publish an analysis comparable to that in table B1 of Cm. 1920, of the accounting adjustments shown for the years 1987-88 to 1995-96 in table 2A.3 of his "Autumn Statement 1992", Cm. 2096, to show which components have been unaffected by the switch from the planning total to the new control total and which are a direct consequence of that switch ;
(4) if he will publish in the statistical supplement to the 1992 "Autumn Statement" planning figures for total local authority expenditure in 1993- 94, 1994-95 and 1995-96 by territory and economic category, in the format of table 5.7 of Cm. 1920, and by function, in the format of table 5.8 of Cm. 1920 ;
(5) if he will publish a table, consistent with table 2A.11 of his 1992 "Autumn Statement", Cm. 2096, showing (a) local authority debt interest and (b) total local authority expenditure, for the planning years 1993-94, 1994 -95 and 1995-96 ;
(6) if he will publish an analysis of the effects of transfers of function between spending sectors, changes of
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financing responsibility between sectors, classification changes, estimating changes and policy changes on the 1992- 93, 1993-94 and 1994-95 figures for (i) central Government support for local authorities and (ii) total local authority expenditure, as given in table 2.6 of his "Autumn Statement 1992", Cm. 2096 ;(7) if he will publish a reconciliation between the figures given by table 2B.1 of his "Autumn Statement 1992", Cm 2096, for classification changes in 1992-93, 1993-94 and 1994-95 and those given by each of tables 2B.2, 2B.3 and 2B.4 ;
(8) if he will publish (a) a compositional analysis in the form of table 2A.3 of Cm 2096 of the figures provided by table 2A.1 for the new control total in 1984-85 to 1986-87, (b) a compositional analysis in the form of table 1A.3 of Cm 1729 of the figures provided by table 2A.1 for the new planning total, that is, after 1990 redefinition, in 1984-85 to 1993-94, and (c) totals for the old planning total, that is, pre-1990 redefinition, for whichever of the years 1963-64 to 1995-96 such data can be provided on the comparable public expenditure measurement basis as table 2A.1 of Cm 2096 ; (9) if he will publish (a) the series of money GDP published in rounded form in table 2A.1 of his "Autumn Statement 1992", Cm 2096, (b) the adjusted money GDP figures which underly the calculated adjusted series, index (1990-91=100) in table 2A.1 and (c) the detailed adjustments to money GDP which constitute the difference between the two series, for the years 1963-64 to 1995-96, to the nearest pounds million ; and how future such tables will be affected by the replacement of the community charge by the council tax on 1 April 1993.
Mr. Portillo : Analyses of public expenditure will be published in the "Statistical Supplement to the 1992 Autumn Statement" on 29 January 1993.
Mr. Wigley : To ask the Chancellor of the Exchequer if he will make it his policy to adjust the United Kingdom's corporate tax take in line with the average for Organisation for Economic Co-operation and Development countries.
Mr. Dorrell : The level of tax on companies is considered each year in the Budget, and international comparison is one of the factors taken into account. The United Kingdom's main rate of corporation tax is currently the lowest of the EC and G7 countries, and one of the lowest of the OECD.
Mr. Wigley : To ask the Chancellor of the Exchequer what is his estimate for the loss to the Exchequer due to the activities of the underground economy in the United Kingdom in each of the last five years.
Mr. Dorrell : Reliable estimates are not available.
Mr. Wigley : To ask the Chancellor of the Exchequer if he will outline the measures taken by his Department to tackle the underground economy in the United Kingdom since 1986.
Mr. Dorrell : I refer the hon. Member to the chapter entitled "Deterring and tackling non-compliance" in the annual reports of the Board of Inland Revenue, which may be found in the House of Commons Library.
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Mr. Wigley : To ask the Chancellor of the Exchequer if he will make it his policy to launch a commission of inquiry into the underground or ready-money economy in the United Kingdom.
Mr. Dorrell : The Government have no such plans. We do not believe that a commission of inquiry would add significantly to our knowledge and understanding of the "hidden economy".
Miss Lestor : To ask the Chancellor of the Exchequer when the size specifications governing VAT zero-rating of children's clothes, including shoes, were first fixed ; and when they were last reviewed.
Sir John Cope : Since the inception of VAT, zero-rating for young children's clothing and footwear has been decided by reference to a schedule, published by Customs and Excise, of minimum measurements reflecting the average body sizes of children up to their 14th birthday. The continuing relevance of the size specifications in the schedule is monitored against the results from surveys by the British Standards Institution : the most recent of which is BS 7231/1990. The schedule of garment and shoe sizes was laid reviewed by Customs and Excise in 1985. A further review is currently in progress.
Mr. Wigley : To ask the Chancellor of the Exchequer what estimate he has as to what percentage of gross domestic product in the United Kingdom is accounted for by the underground economy.
Mr. Nelson : By its very nature, the underground economy cannot be measured directly or estimated with any precision. An evasion adjustment is made in the United Kingdom national accounts to allow for that part of income which is concealed but where the corresponding expenditure is not. This results in an addition to factor incomes of around 1 per cent. in recent years.
The evasion adjustment applied in the calculation of GDP does not attempt to encompass the whole of the underground economy. Estimates of the size of the underground economy made by a number of researchers show wide variation.
Mr. Cryer : To ask the Chancellor of the Exchequer if the travel and office allowances for Members of the European Parliament will be treated for tax purposes in the same way as for hon. Members.
Mr. Dorrell : A ruling of the European Court of Justice in 1981 said that expense allowances paid by the European Parliament to its Members are not liable to United Kingdom tax. That ruling does not apply to Members of this House.
Mr. Cryer : To ask the Chancellor of the Exchequer how the Inland Revenue ensures that all additional gifts to employees are declared under the Taxes Management Act 1970.
Mr. Dorrell : Employers are required to make returns of taxable gifts to employees. Employees are required to
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declare their taxable income. The Inland Revenue audits the operation of PAYE by employers, and investigates possible under-declarations both in business accounts and personal tax returns.Mr. Nicholas Winterton : To ask the Chancellor of the Exchequer what has been the total percentage contribution to gross domestic product in (a) the latest year for which figures are available, (b) 10 years previously and (c) 20 years previously of (i) manufacturing industry, (ii) the construction industry, (iii) banking, insurance and financial services and (iv) the energy industry.
Mr. Nelson : The available information is shown in the table :
D Share of gross domestic product Per cent. Industry |1971 |1981 |1991 -------------------------------------------------------------------- Manufacturing |31.2 |25.1 |21.0 Construction |6.4 |6.0 |6.8 Banking, insurance, finance, business services and leasing |10.3 |11.4 |17.7 Energy and water supply |5.3 |10.8 |5.7 Source: United Kingdom National Accounts, 1992 edition.
Mr. Nicholas Winterton : To ask the Chancellor of the Exchequer (1) what has been the net United Kingdom/European Community trade balance, at current values, in all goods and services in each of the last 10 years for which figures are available ;
(2) what has been the net United Kingdom trade balance, at current values, in all goods and services in each of the last 10 years for which figures are available.
Mr. Nelson : The United Kingdom's balance of trade in goods and services is available from published sources. The requested information is available in the 1992 edition of the Central Statistical Office's United Kingdom balance of payments publication--the Pink Book. The latest estimate for the United Kingdom's total balance on trade in services in 1991 is in the "Monthly Review of External Trade Statistics". Copies of these publications are available in the Library of the House. The data can also be found on the Central Statistical Office's database which can be accessed through the House of Commons Library.
Mr. Worthington : To ask the Chancellor of the Exchequer by how much investment in manufacturing industry has grown in percentage terms in each of the OECD countries since 1979.
Mr. Portillo : Data on manufacturing investment may be obtained from the OECD's "National Accounts, Volume II" and the Central Statistical Office's database which is accessible through the House of Commons Library.
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Mr. Simon Burns : To ask the Chancellor of the Exchequer what discussions he has had with the clearing banks on their policies on lending to small businesses ; and if he will make a statement.
Mr. Lamont : In recent months much concern has been expressed both that banks have been failing to pass on cuts in base rates to their small business customers and more generally that they have acted in a way that is damaging to the small business sector. That concern has been brought home to me in many letters from small firms and in representations from MPs. I therefore asked the Bank of England to repeat the survey of bank lending to small businesses that it undertook in June 1991. I have discussed the results with the main clearing banks and the president of the British Bankers Association. The Bank has now carried out its study and I am placing a copy of its report in the Library. The main findings are :
the number of small business accounts is about 4.1 million, of which two- thirds are in credit ;
around a quarter of continuing borrowers (ie those who were borrowing both in June 1991 and November 1992) have seen their bank facilities reduced, against a third who have seen an increase ; around 60 per cent. of small business borrowers benefited from the full 4.5 per cent. reduction in base rates seen between June 1991 and the completion of the survey, and around a further 10 per cent. actually saw their borrowing margins reduced. Margins widened on 30 per cent. of accounts, about half by more than 0.5 per cent. ; there has been little movement in average margins, but there is a wide variation in average margins between different banks ; three banks operate minimum interest rate floors, but none have yet come into play ;
the trend towards greater implementation of fees and charges has been maintained and some banks have raised their levels ; the proportions of lending at fixed rates and for specified terms (as opposed to overdrafts) has increased slightly.
The Bank's survey is the most comprehensive and recent guide to the interest rates charged by banks to small businesses. It confirms, as did the survey in June 1991, that the majority of small businesses have seen their interest rates come down in line with the reductions in base rates over the last year. This finding is supported by the Nottingham university study recently published by the Forum of Private Businesses. This is welcome news, because it means that the benefits of falling interest rates are being passed through to small businesses which have a vital part to play in bringing about economic recovery.
I welcome the moves a number of banks have made to increase the number of borrowers on term rather than overdraft finance. That can bring greater certainty to borrower and lender alike. I believe there is also a place for more fixed rate lending. I was disappointed, therefore, that the survey showed that interest rates offered on fixed rate loans had remained very much higher, at around 15 per cent., despite the fall in base rates and longer-term market rates. I am pleased that several banks have reduced their fixed rates since then and I hope that they will keep these rates under review. Although the broad picture on interest rate margins is reassuring, there is no doubt that many small businesses remain dissatisfied with their banks, so, when I met the bank chairmen and chief executives, I explained the concern that has been expressed in letters to me and others.
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The banks stressed the importance of the small business sector to them. They pointed out that the number of complaints is small by comparison with the overall number of customers and transactions and that tensions are bound to arise between banks and some customers in a recession. They argued also that they have had to make heavy provisions for losses on loans to small businesses and that they have to take that into account in their judgments on credit risk and pricing.I pointed out that the complaints that I have received bear more widely on the quality of service offered to small businesses. It was in response to such complaints that I asked the banks to publish codes of practice for their small business customers and set out seven principles which codes should satisfy. All the major Scottish and English clearing banks have now produced such codes. Small firms and their representatives have generally welcomed this development and the willingness by banks to work to ensure greater transparency in relationships with customers. I know that the banks will continue to keep their codes under review and to assess how their relationships with their customers might be further improved ; recently, for example, Lloyds substantially revised its code in response to customer pressure. I am pleased also that all the banks have introduced--or will introduce in the course of
1993--pre-notification of charges. This is a further positive step. One important element of each code is to set up a clear procedure by which small businesses can take up complaints which cannot be resolved at branch level. The chairmen of the banks have assured me that they ensure that such complaints are looked into closely. Most have established special units to this end and the chief executives and chairmen themselves review a large number of cases personally. These procedures deal successfully and quickly with a great many complaints by explaining the basis of decisions clearly or by putting right mistakes that have been made. I hope therefore that small businesses, and MPs and others with whom they may correspond, will take up complaints directly with the banks, if necessary at the highest level.
There will, of course, be a number of customers who remain dissatisfied. Many will dispute the banks' judgment on how much they should be lent or on what terms. Such arguments have to remain a matter of negotiation between the banks and their customers. It is not for the Government or any other third party to second-guess the banks' commercial judgment on such matters.
However, a number of complaints I have received allege maladministration, for example charging incorrectly or the changing of terms without proper warning. In most cases, complaints of this sort can be resolved through the banks' internal procedures. But in the minority of cases where that is not so, personal customers and unincorporated businesses can take their case to the banking ombudsman. Small incorporated businesses cannot.
The Jack committee on banking services in 1989 recommended that the ombudsman scheme should be extended to cover incorporated businesses because they often faced identical problems and constraints. At that time, the change was resisted by the banks and not accepted by the Government. In view of the continuing level of complaints, I have taken the matter up again with the largest banks and with the president of the British Bankers Association. They have agreed that the scheme should be extended to cover small incorporated businesses
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with a turnover of less than £1 million a year. They will now propose this change to the council and board of the banking ombudsman.Given the continuing interest in the financing of small firms, I have also asked the Bank to continue to monitor from time to time developments in the provision of bank finance to this sector.
Mr. Burns : To ask the Chancellor of the Exchequer what was the number of staff in post in central Government Departments at 1 October 1992.
Mr. Portillo : On 1 October 1992 there were 567,850 staff in post in central Government. Of those 510,651 were non-industrials and 57, 199 were classified as being in industrial work. A summary showing staff in post by Department has been placed in the Library.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer if he will make a statement outlining the position underlying the oral statement of the Minister of State, Foreign and Commonwealth Office, the right hon. Member for Watford (Mr. Garel-Jones), on 18 January, Official Report, column 144, concerning a possible obligation on the United Kingdom to rejoin the exchange rate mechanism at any particular date.
Mr. Nelson [holding answer 22 January 1993] : I have nothing to add to the memoranda submitted by Her Majesty's Treasury to the Treasury and Civil Service Committee--appendices 1 and 5 to the first report of the Treasury and Civil Service Committee for the Session 1992-93, HC 201.
Sir Teddy Taylor : To ask the Chancellor of the Exchequer what estimates have been made of the additional cash contributions from the EC which will accrue to each member state in consequence of the decisions taken at the Edinburgh meeting of the European Council ; and if he will make a statement.
Sir John Cope [holding answer 18 January 1993] : The Edinburgh European Council agreed the following allocation of expenditure from the European Community budget :
(billion ecu-1992 prices) |1992 |1999 |increase ------------------------------------------------------------------- (a) Commitment ceilings Agriculture (guideline) |35.30 |38.40 |3.00 Cohesion Fund |- |2.60 |2.60 Structural Funds-Objective 1 |11.00 |19.30 |8.30 Other Structural operations |7.50 |8.10 |0.60 Other internal policies |3.90 |5.10 |1.20 External policies |3.90 |5.60 |1.70 Administrative expenditure |3.20 |3.90 |0.70 Repayments |0.90 |- |-0.90 Monetary reserve |1.00 |0.50 |-0.50 Reserves for external policies |- |0.60 |0.60 Total expenditure commitments |66.90 |84.10 |17.20 (b) Own resources ceiling as percentage of GNP |1.20 |1.27 becu<1><2> |64.90 |80.60 |15.70 <1> The own resources ceiling expressed in ecu is calculated using the Commission's growth assumptions which were available to the European Council. <2> The expenditure commitment ceilings sum to more than the own resources ceiling. Although the Edinburgh European Council conclusions limit the own resources ceiling (and hence payments from the Community budget) to 1.27 per cent. of community GNP in 1999, commitments were constrained to 1.335 per cent. of GNP. This is possible because first, some commitments will in practice not be taken up and so will not result in payments being made; and second, there is in some cases, a considerable time-lag between commitments and payments. As long as the European economy continues to grow in nominal terms, such expenditure commitments will represent a smaller proportion of Community GNP when the payments are made than when the commitments were given.
As the existing financial perspective ended with 1992, it is not possible to say what would have happened to Community expenditure over the next seven years if no agreement had been reached at Edinburgh.
However, until there was agreement the revenue available to the Community would have continued to be subject to the 1988 own resources decision, with the own resources ceiling limited to 1.20 per cent. of GNP. The revenue which the Community could call up could therefore have grown in line with growth in the Community economy. On the basis of the growth assumptions available to the Edinburgh European Council, the revenue from a 1.20 per cent. own resources ceiling would allow payments of up to 76.1 billion ecu in 1999. In effect, therefore, the decision of the European Council to increase the own resources ceiling from 1.20 per cent. to 1.27 per cent. of GNP increased the permissible level of payments from the Community budget by 4.5 billion ecu a year by 1999.
It is not possible to estimate with any certainty how each member state would benefit from this additional 4.5 billion ecu by comparison with decisions which might have been made in the absence of agreement in Edinburgh.
Mr. Meacher : To ask the Chancellor of the Exchequer, pursuant to his answer of 30 November, Official Report, columns 49-50, if he will provide figures on the amount of United Kingdom debt relief provided under the Trinidad terms which has been counted as official bilateral development assistance.
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