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|£ million
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Energy and Water supplies |4,649
Construction |1,956
Garages distribution, hotels and catering |8,750
Transport and communications |2,948
Manufacturing industry |11,615
Agriculture, forestry, fishing |94
Financial |32,009
Business and other services (excluding central and local government services) |5,325
|------
Total of above |67,346
Source: Bank of England Press Notice 14 May 1993.
Charities
Ms Harman : To ask the Chancellor of the Exchequer what proportion of tax credits on share dividends becoming available to charities in each of the years 1990-91, 1991-92 and 1992-93 were claimed in the same year.
Mr. Dorrell : I regret that the information requested is not available.
Tax Computations
Mr. Burns : To ask the Chancellor of the Exchequer whether he will set out the criteria on which the Board of Inland Revenue will accept tax computations rounded to the nearest £1,000.
Mr. Dorrell : The Inland Revenue is prepared to accept computations of business profits for tax purposes in figures rounded to the nearest £1,000 from single businesses or companies with an annual turnover of not less than £5 million, where rounding at least to that extent has been used in preparing their accounts. The turnover of members of a group will not be aggregated for applying this £5 million threshold. Where turnover fluctuates either side of
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the threshold, rounding can be used for a period of account if the turnover for either that year or the immediately previous year is above the limit. Turnover comprises gross receipts including investment and estate income, as well as trading receipts. The Inland Revenue will only accept rounding in any particular case if the basis adopted is satisfactory. Rounded computations from such businesses must be accompanied by a certificate made by the person preparing the computations which :states the basis on which the rounding has been done ; confirms that this basis is unbiased, that it has been applied consistently and that it has been used in a manner which, in all the circumstances, produces a fair result for tax purposes ; and if the rounding was done by computer, states the progam or software used.
In subsequent years if there have been no changes in the basis or in the software, the certificate need only confirm that the rounding has been done on the same basis as before.
The Inland Revenue is prepared to accept rounded figures only in relation to the computation of the profits of the business, including in the case of companies, non-case I items. They cannot accept rounded figures in relation to the computation of tax payable or of any other figure of tax.
Nor can they accept rounded figures, in relation to any other aspect of the tax computations, where rounding would impede the proper application of the relevant legislation or where it would normally be necessary to go back to the underlying records to do the computation, and thus there would be no reduction in the compliance burden in allowing the use of round sums. Rounding is not therefore acceptable in the following :
--computations of chargeable gains (since precise dates on which expenditure is incurred are needed for indexation allowances purposes) ; rounding can however be accepted in relation to the incidental costs of acquisition and disposal ;
--computations of tax credit relief : while individual items of foreign income (including profits of overseas branches and, for the purpose of calculating underlying tax rates, dividends paid by overseas companies and the profits of those companies) may be rounded, computations of credit relief must continue to distinguish the individual items of income and to show the exact amounts of foreign tax for which credit is claimed so that the rules for limiting the credit can be properly applied ;
--computations required for purposes of the Accrued Income Scheme (Section 710-728, ICTA 1988) ;
--aspects of capital allowances computations where precise figures are required, for example by the statute or where rounding might work unfairly because more than one taxpayer is involved and different bases could be used by each. One case where the statute requires the use of precise figures is the expensive car provisions in Sections 34-36 CAA 1990. However in any capital allowances apportionment case it would be open to the taxpayer to demonstrate to the Inspector that, taking all the circumstances into account, including those of any other party, the use of rounded figures did not lead to a result that was materially different from the statutory position. For example, in the case of the industrial buildings one-quarter rule (section 18(7) CAA 1990), the Inspector would want to be satisfied that the use of rounding alone did not reduce the non-qualifying expenditure to one-quarter or less of the total expenditure (and thereby enable the whole of the expenditure to attract allowances).
--the application of the statutory amount in Section 748 (i) (d) ICTA 1988 in relation to a controlled foreign company.
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Exceptionally other circumstances may arise where rounding would not satisfy the tests in the preceding paragraph. In those circumstances the inspector may insist that roundings are not used. These arrangements will continue into pay and file. Subject to the exceptions provided in the two previous paragraphs, rounded figures from the accounts may be used in the computation of trading profits and losses, each category of income, management expenses and charges. Where appropriate, these figures will of course require adjustments to the "received" or "paid" basis. Group relief or relief for losses from other periods should be on the actual sums surrendered or brought forward, or carried back. No rounding should take place in the return form itself--for example, in the allocation of profits to financial years--or in any arithmetic that precedes such entries, for example, a computation of marginal small companies relief. Where arrangements on the use of rounding have already been agreed, locally with inspectors these may continue to operate in the short term, but must come to an end for all periods ending after 31 May 1995.African Debt
Mrs. Bridget Prentice : To ask the Chancellor of the Exchequer what plans the British Government have to assist Africa in reducing its debt burden ; and if he will make it his policy to secure international agreement for Africa's debt burden being written off.
Mr. Nelson : At the Commonwealth Finance Ministers' meeting in Trinidad and Tobago in September 1990, my right hon. Friend the Prime Minister, then Chancellor, proposed a reduction in the stock of eligible debt of two thirds. In December 1991, the Paris Club of creditor countries agreed to allow creditors to provide the equivalent of 50 per cent. cancellation of eligible debts consolidated under each agreement. Seventeen countries have so far benefited from Trinidad terms, including 13 of the poorest countries in sub-Saharan Africa. Under these agreements over $3 billion of sub-Saharan African debt has been rescheduled by the Paris Club, cancelling over $1 billion during the lifetime of the agreements. The Trinidad terms also include an undertaking by creditors to consider a reduction in the stock of eligible debt after a period of proven financial and economic responsibility of three to four years. The Government are, however, aware that for some of the poorest and most severely indebted countries Trinidad terms as currently applied will not be enough. For this reason we are pursuing with our creditor country colleagues improvements in the terms. Specifically, we would like to see the full Trinidad terms implemented and earlier action on reducing the total stock of debt for debtors who have a good track record.
The Government have also cancelled nearly £200 million of old aid debts owed by sub-Saharan African countries which are successfully pursuing sound policies of reform. Altogether, we have relieved developing countries of the burden of about £1.1 billion of old aid loans. New aid to such countries is now provided only in the form of grants.
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Audio-visual Goods
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer by what percentage the retail price of audio-visual goods has fallen since January 1987 ; and what has been the market share of British industry in the supply of such goods in the United Kingdom.
Mr. Nelson : The retail prices index for audio-visual equipment fell by 17.2 per cent. between January 1987 and March 1993, the latest date for which information is available. Information on the market share of British industry in the supply of such goods is not available in the form requested.
Treasury Costs
Mr. Dicks : To ask the Chancellor of the Exchequer what has been the cost of running the Treasury in each year since 1987.
Mr. Nelson : The information requested is as follows :
Year |£ million ------------------------------- 1987-88 |34.673 1988-89 |38.040 1989-90 |39.326 1990-91 |44.969 1991-92 |55.927 <1>1992-93 |55.675 <1> Forecast outturn.
Exchange Rates
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what estimate he has made of the effect of rises in exchange rates on output and employment in (a) manufacturing industry and (b) the rest of the economy since February.
Mr. Nelson : There are a large number of influences on economic activity at any one time, and it is impossible properly to assess the effect of exchange rate changes in isolation. But there are encouraging signs, in the figures for manufacturing output and GDP as well as in other indicators, that the economy is beginning to recover across a broad front.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether Britain was free to determine its own monetary policy as a member of the exchange rate mechanism ; and what proposals he has for changing the rules of the exchange rate mechanism to allow the pursuit of an independent monetary policy.
Mr. Nelson : Membership of the exchange rate mechanism (ERM) is a matter of choice, not obligation. It is not possible to pursue an independent monetary policy without regard to the exchange rate, inside or outside the exchange rate mechanism.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what policy objectives underlie the Government's purpose in raising nominal and real exchange rates ; and if he will estimate by how much the public sector borrowing requirement increased as a result of the increase in nominal and real exchange rates since February.
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Mr. Nelson : The objective of the Government's monetary policy is to keep underlying inflation with a range of 1 to 4 per cent. and to bring it down to the lower part of that range by the end of the current Parliament. Short-term interest rates are set in order to meet this objective. The exchange rate is one of the indicators taken into account in assessing monetary conditions, but there is no target for the nominal or real exchange rate. A higher exchange rate reduces the sterling cost of public expenditure incurred in foreign currencies, but this is only one of a number of influences affecting the size of the PSBR.
Tourism
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what evidence he has of the effect on the balance of payments on tourism of changes in the real exchange rate measured in terms of export unit values ; and if he will publish a table showing imports and exports of tourism in cash terms and as a percentage of gross overseas products for each year since 1970, together with the balance of payments in current account on a corresponding basis ; to what extent the figures are likely to be affected by the fall in the real exchange rate since September 1992, as measured by changes in the nominal exchange rate and in the real exchange rate weighted by the percentage change in import and export unit values in trade on manufactures with non-EC countries ; and what is his forecast for the increase in output in the United Kingdom tourist industry for 1993 and 1994.
Mr. Nelson : The most recent figures for the balance of payments including the analysis of the components of services trade, are shown in CSO's "UK Economic Accounts", tables B1 and B5. The FSBR forecast that the balance on services trade, which includes travel and tourism, would improve in volume terms in 1993, in part because of the improvement in competitiveness since last September. Forecasts for output and employment at the tourist industry level are not available.
Outstanding Tax Liabilities
Mr. Steen : To ask the Chancellor of the Exchequer if he will arrange a meeting between the collector of taxes at the Inland Revenue south-west offices and Dr. M. R. Cross of the Diving Disease Research Centre at Fort Bovisand to discuss payment, in instalments, of outstanding tax liabilities.
Mr. Dorrell : It is not for the Chancellor of the Exchequer to arrange such meetings. However, I understand that the collector of taxes will be contacting Dr. Cross to arrange a meeting.
House Prices
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer by how much (a) house prices and (b) the cost of dwelling insurance and ground rent, as measured by the retail prices index, have risen since January 1987 ; and if he will provide separate figures for dwelling insurance and ground rent.
Mr. Nelson : House prices are not used directly in the compilation of the retail prices index. The United Kingdom all dwellings mix-adjusted house price index,
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published by the Department of the Environment, rose by 48 per cent. between the first quarter of 1987 and the first quarter of 1993.Between January 1987 and March 1993, the latest date for which information is available, the dwelling insurance and ground rent section of the retail prices index increased by 97.9 per cent. Separate figures for dwelling insurance and for ground rent are not available.
Foreign Holidays
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what assessment he has made of the effect on United Kingdom employment and on the balance of payments since 1986 of the increase in the price of foreign holidays since 13 January 1987.
Mr. Nelson : A price index for foreign holidays has only been compiled from January this year following the recommendation of the Retail Prices Index Advisory Committee. The price of foreign holidays is but one factor among many which may affect the balance of payments and the level of employment.
Economic and Monetary Union
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what distinction he makes between United Kingdom monetary policy and membership of the exchange rate mechanism in the context of stage two of economic and monetary union.
Mr. Nelson : Article 3(1) of the protocol to the Treaty on European Union (Cm 1934) setting out the statutes of the European Monetary Institute provides that monetary policy would remain the responsibility of national authorities in stage 2 of economic and monetary union. It would remain a matter for national authorities to decide whether they wished their currency to participate in the exchange rate mechanism.
Insider Dealing
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what steps the Government propose to take to stop insider trading ; and if he will introduce legislation (a) requiring public companies to notify their share-holders of significant changes in their circumstances to reach them not later than the information is released to the stock exchange and (b) prohibiting meetings with representatives of such companies by investment analysts able to acquire information about a company which is not made available earlier or at exactly the same time to all the company's private shareholders.
Mr. Nelson : Insider dealing has been illegal since 1980. The Criminal Justice Bill which is currently before Parliament will replace the existing legislation and bring our law on insider dealing into line with the EC directive on the subject.
Requirements already exist to ensure that information relating to significant changes in the circumstances of a company which is listed on the stock exchange is made available to the company's actual and potential shareholders : a company must make available to the public any information necessary to enable shareholders and the public to appraise the position of the company and
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to avoid the establishment of a false market. By virtue of part IV of the Financial Services Act, this requirement has statutory effect.Such information is notified by companies to the stock exchange which has arrangements for disseminating it through news vendors and press agencies. Information may also be given directly by a company to news vendors, press agencies and others at the same time as it is given to the stock exchange.
The Government believe that contact between a company and investment analysts and institutional investors can play a useful and valuable role in improving their understanding of its businesses and strategies. Information which should be the subject of a public announcement should not be disclosed at such meetings.
Retail Prices Index
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer for what period the new retail prices index for foreign holidays measures the increase in the price of such holidays ; for what reason table 18.2 of the "Monthly Digest of Statistics" did not give figures for the period before February ; if he will publish (a) the corresponding figures for January 1987 and August 1992 and (b) the items which are covered under this heading ; how the information is obtained ; and what weight is given to different kinds of such holidays.
Mr. Nelson : Foreign holidays were introduced into the retail prices index with effect from February 1993. Table 18.2 of the "Monthly Digest of Statistics" should have made it clear that the price index for foreign holidays is calculated on the base January 1993=100. No earlier figures are available. The holidays included in the foreign holidays index, as indicators, are carefully chosen to be representative of those holiday destinations visited by United Kingdom citizens. The importance of individual holidays is determined by information from the international passenger survey, tour operators and travel agents. In 1993 the weight attached to foreign holidays in the retail prices index is 30 out of 1,000. This reflects expenditures reported by households in the continuous family expenditure survey.
The report of the Retail Prices Index Advisory Committee (Cm 2142) includes a description of the method used to construct the index for foreign holidays. Copies of the report are available in the House Library.
Value Added Tax
Mr. Waller : To ask the Chancellor of the Exchequer how many companies are now being required to lodge security by guarantee or a cash deposit with Customs and Excise towards future VAT returns, in order to continue to supply goods and services under the Value Added Tax Act 1983.
Sir. John Cope : For the year ending 31 March 1993, Customs and Excise required 1,176 of the 1.6 million (0.07 per cent.) VAT registered businesses to provide security.
VAT Division (Jobs)
Mr. Parry : To ask the Chancellor of the Exchequer when he expects the value added tax division, Customs and Excise to be completed in Liverpool ; and how many jobs will be provided.
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Sir John Cope [holding answer 17 May 1993] : The VAT headquarters building at Queens dock, Liverpool is expected to be completed in August 1993.
Three-hundred-and-fifty jobs have already been relocated from Southend to Liverpool and during the next 18 months some 300 further jobs will follow. The new building will also house the VAT headquarters staff currently located in Bootle.
Council Tax
Mr. Clifton-Brown : To ask the Chancellor of the Exchequer, pursuant to his answer of 29 April, Official Report, column 507, regarding the length of time taken to hear council tax banding appeals, if he will now make it his policy to set (a) a target by which time all appeals must be determined and (b) a target for the maximum length of time an individual appeal will take from submission to determination.
Mr. Robin Squire : I have been asked to reply.
I am anxious to ensure that appeals are dealt with as quickly and effectively as possible. What can be achieved will depend on how many proposals are received, but I intend to set firm targets as soon as the likely caseload can be estimated with reasonable certainty.
AGRICULTURE, FISHERIES AND FOOD
BST Products
Dr. Strang : To ask the Minister of Agriculture, Fisheries and Food, pursuant to his answer to the hon. Member for Harborough (Mr. Garnier), of 22 January, Official Report, column 427, if he will set out the reason he was given by the Medicines Commission for its decision that BST products manufactured by the companies Lilly Industries Ltd. and Monsanto SA/NV meet the medicines licensing criteria.
Mr. Gummer : The additional data presented to the Medicines Commission by the companies in support of their applications for licences for BST products were judged as satisfying the concerns previously expressed by the Veterinary Products Committee, particularly in relation to the incidence of mastitis. On this basis the Commission advised that the Medicines Act licensing criteria of safety, quality and efficacy were met.
Food Supplements
Mr. Nicholas Winterton : To ask the Minister of Agriculture, Fisheries and Food if he will make it his policy to commission a second report from an impartial working group on those issues covered by the Denner report.
Mr. Soames : I have no plans to commission a second report on dietary supplements. The Denner report has been used as a basis for consultation and it allowed us to gather a wide range of views on the question of dietary supplements.
Mr. Nicholas Winterton : To ask the Minister of Agriculture, Fisheries and Food what was the purpose of the recent meeting between his officials and Mr. G. Latham and Mr. M. Hanssen of the Health Food
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Manufacturers Association and at which the Denner report was discussed ; what conclusions were reached at the meeting ; what was agreed ; and if he will make a statement.Mr. Soames : Officials were asked to meet the President of the Health Food Manufacturers' Association, Mr. Hanssen, and the Chairman of the Council for Responsible Nutrition, Mr. Latham, to discuss a range of subjects of interest to these organisations. The meeting was essentially an exchange of information.
Mr. Nicholas Winterton : To ask the Minister of Agriculture, Fisheries and Food if he will make a statement setting out the procedure which he will adopt and the organisations which will be consulted in future on any proposal to restrict the availability of food supplements.
Mr. Soames : It is MAFF policy to consult widely on all food safety matters. Our consultations on dietary supplements have involved over 160 organisations. However, the Government must retain the right to act immediately if necessary to protect consumers.
Mr. Nicholas Winterton : To ask the Minister of Agriculture, Fisheries and Food if he will make it his policy to ensure that the House is made aware of any consultation process which he undertakes on food supplements and that right hon. and hon. Members have the opportunity to submit their views and those of their constituents prior to any decisions being taken ; and if he will make a statement.
Mr. Soames : A public announcement was made on 27 March 1991 that the report on the working group on dietary supplements and health foods had been published and that the next step would be a wide public consultation. Copies of the report were placed in the Library of the House together with a copy of a statement summarising the recommendations and the Government's proposed follow up action. This included details of a review of certain herbal ingredients by the Committee on Toxicity and the Food Advisory Committee.
On 2 March tments in this area.
Mr. Nicholas Winterton : To ask the Minister of Agriculture, Fisheries and Food (1) what plans he has to seek to introduce a ban on substances mentioned in the Denner report in addition to comfrey ; and if he will make a statement ;
(2) what plans he has to restrict the availability of (a) fennel, (b) blue flag, (c) juniper oil, (d) lobelia, (e) uva ursi, (f) zanthxylum, (g) pokeroot, (h) berberis/hydrastis, (i) berberis, (j) black cohose, (k) blue cohose, (l) bloodroot, (m) fumaria, (n) helonias, (o) hydrastis, (p) juniper, (q) kelp, (r) mugwort and (s) pennyroyal, or products containing extracts or concentrations of these foodstuffs ; and if he will make a statement.
Mr. Soames : I have no such plans. A review of the substances referred to in the Denner report which includes all those listed by the hon. Member is continuing. No decision has yet been taken on their continued availability.
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TRADE AND INDUSTRY
Bank of Credit and Commerce International
Mr. Vaz : To ask the President of the Board of Trade if he expects to receive any report from the liquidators of BCCI concerning the meeting on 27 May.
Mr. Neil Hamilton : My officials have asked the liquidators to report the outcome of the meeting summoned pursuant to the provisions of section 142 of the Insolvency Act, 1986 to be held on 27 May 1993.
Ammunition
Mr. Rogers : To ask the President of the Board of Trade what steps he has taken to investigate the explosives propellants and related end products--EPREP--ammunition cartel ; and what agreements have been made by his Department in relation to this agreement.
Mr. Sainsbury : I am aware of no such ammunition cartel. The EPREP agreement expired in March this year.
Trade Boycotts
Mr. Batiste : To ask the President of the Board of Trade what action he is taking to assist British companies trading with Israel to ensure that United Kingdom companies are now placed on the same basis as United States companies in respect of the lifting of the secondary and tertiary boycotts by Saudi Arabia and Kuwait.
Mr. Needham : Saudi Arabia and Kuwait, as members of the Gulf Co- operation Council, are obliged by the EC/GCC co-operation agreement, 1988, to give most-favoured nation treatment to EC member states. This means that any concessions on the Arab boycott granted to United States companies by Saudi Arabia, Kuwait or other members of the GCC must be extended to exports form the United Kingdom and other EC member states.
Member countries of the GCC also have a treaty obligation not to discriminate between EC member states.
We take advantage of bilateral contacts with GCC countries to point out that we object to the boycott as an unwelcome trade barrier and to remind them of their obligations not to discriminate against or between EC member states.
Company Directors (Disqualifications)
Ms Corston : To ask the President of the Board of Trade on how many occasions in the last five years for which records are available he has exercised his discretionary power in applying to the courts for a disqualification order against a company director.
Mr. Neil Hamilton : The Secretary of State has issued the following number of directions to proceed under sections 6 and 8 of the Company Directors Disqualification Act 1986.
< Number of directions to proceed Financial year |Section 6 |Section 8 ------------------------------------------------------------ 1988-89 |416 |2 1989-90 |462 |- 1990-91 |499 |9 1991-92 |700 |- 1992-93 |564 |7
Labour Statistics
Mr. Barry Jones : To ask the President of the Board of Trade how many people are employed in the British (a) aero engine and (b) airframe industries.
Mr. Sainsbury : The latest official employment figures from the "Report on the Census of Production"--available in the House of Commons Library--show employment of 174,000 in the aerospace industry in 1990. The figures do not differentiate between the aeroengine and airframe industries.
Aerospace Industry
Mr. Barry Jones : To ask the President of the Board of Trade what is the amount of financial backing given to the aerospace industry in each year since 1979 at constant prices.
Mr. Sainsbury : Financial support given to the aerospace industry by DTI for each year since 1979 in constant (1991-92) prices are as follows. The figures include launch aid , civil aircraft research and development, regional assistance, and other miscellaneous DTI schemes. Figures are calculated by using the GDP deflator whole economy in financial years published by HM Treasury (Autumn Statement).
DTI support for Aerospace sector Constant prices for price levels in 1991-92 Real terms Financial year |£ million --------------------------------------------- 1979-80 |278.2 1980-81 |153.4 1981-82 |256.6 1982-83 |141.7 1983-84 |174.7 1984-85 |163.9 1985-86 |176.6 1986-87 |184.3 1987-88 |71.3 1988-89 |130.1 1989-90 |143.6 1990-91 |136.0 1991-92 |37.1 1992-93 |<1>-6.9 <1> Launch Aid is repayable by levy payments on aircraft sales. Net Launch Aid figures for each year have been used (i.e. payments to companies minus levy receipts). For 1992-93 levy receipts exceeded payments.
Mr. Barry Jones : To ask the President of the Board of Trade what is his estimate of the amount of money earned by aerospace exports in each year since 1979 at constant prices.
Mr. Sainsbury : Aerospace exports--civil and military--in each year since 1979 in constant, 1985, prices are :
Real exports Year |£ billion ------------------------------ 1979 |4.0 1980 |4.6 1981 |3.2 1982 |3.3 1983 |3.3 1984 |3.4 1985 |3.8 1986 |4.6 1987 |4.7 1988 |5.2 1989 |7.1 1990 |6.4 1991 |6.3 1992 |5.5
Figures are calculated by deriving an implied retail price index from:
Business Monitor MQ10 for 1992
Business Monitor PAS3640 for 1984-1991
Business Monitor PQ3640 for 1981-1983
Business Monitor PQ383 for 1979-1980
Mr. Gordon Prentice : To ask the President of the Board of Trade if he will publish a table showing expenditure by his Department on supporting participation by United Kingdom apparel and textile companies in overseas trade fairs in each of the last three years ; and what comparable information is available on expenditure by the Governments of Germany, France and Italy.
Mr. Needham : The requested information is as follows :
|Net expenditure |Percentage of total
|support
Year |£
--------------------------------------------------------------------------------
1990-91 |1,145,676 |9.7
1991-92 |1,336,051 |10.7
1992-93 |1,595,332 |12.2
No comparable information is available on expenditure incurred by the the Governments of Germany, France and Italy on supporting participation by apparel and textile companies at overseas trade fairs.
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