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Assisted Areas

Sir Teddy Taylor : To ask the President of the Board of Trade, pursuant to his answer to the hon. Member for Stockton, South (Mr. Devlin) of 17 June, Official Report, column 715, what response he has had from the European Commission to his proposals for a new assisted areas map.

Mr. Sainsbury : I refer to the reply that I gave to the hon. Member for Moray (Mrs. Ewing) on 25 June, Official Report, columns 293-94.

Environmental Policy

Mr. Chris Smith : To ask the President of the Board of Trade what is his Department's policy on the purchase and use of (a) recycled paper, (b) low-energy light bulbs, (c) tropical hardwoods, (d) peat and (e) cars with catalytic converters.


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Mr. McLoughlin : The Department is committed to purchasing recycled paper and recycling paper stationery products, wherever possible ; installing energy efficient lighting wherever practicable ; and reducing the use of tropical hardwoods where possible in the Department's building works and furniture, making every effort to ensure that, when tropical hardwoods are used, they come from sustainable sources. All new petrol cars purchased have catalytic converters fitted. The Department's green housekeeping strategy does not at present cover the use of peat ; however, this will be kept under review.

Accounting Firms

Sir Russell Johnston : To ask the President of the Board of Trade what consideration he has given to the introduction of legislation debarring firms of accountants who have prepared a report on a business from accepting a commission for a receivership consequent upon such a report.

Mr. Neil Hamilton : I have considered carefully the arguments both for and against investigating accountants being debarred from taking subsequent insolvency appointments and I am not convinced that the practice should be proscribed.

House Insurance

Mr. Cohen : To ask the President of the Board of Trade what estimates he has of the increases in insurance premiums for home (a) buildings and (b) contents policies in each of the last five years, and in the current year ; what are those figures deflated by the retail prices index ; and what estimates he has of the number of householders or occupiers who do not have (i) buildings and (ii) contents insurance.

Mr. Neil Hamilton : The Department does not collect data on premium levels. The individual components of the retail prices index relating to buildings and contents insurance are not published separately. The latest family expenditure survey figures indicate that 24.1 per cent. of households are not holders of household contents insurance policies and 37.9 per cent. are not holders of building insurance polices.

Deregulation

Mr. Llew Smith : To ask the President of the Board of Trade if he will make a statement on the outcome of his Department's consultation on deregulation opportunities conducted with seven buisness sectors ; and if he will indicate the environmental areas which will be affected by deregulation.

Mr. Neil Hamilton : The seven sectoral deregulation task forces are still examining the impact of regulation on business and have not yet made recommendations.

Nuclear Power Industry

Mr. Ainger : To ask the President of the Board of Trade if he will include nuclear waste management, decommissioning of plants, financial controls and United Kingdom Government cover of future liabilities within the terms of reference of his review of the future of the United Kingdom nuclear power industry ; and if he will make a statement.


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Mr. Eggar : The timing and scope of the review of the future prospects for nuclear power in the United Kingdom are under consideration within Government. A further announcement will be made in due course.

Coal Industry

Mr. Churchill : To ask the President of the Board of Trade what steps he has taken to underpin the future of the 12 pits of which he announced the reprieve on 29 March ; if he will make a statement about the future of each of these 12 pits ; and if he will place in the Library a copy of the most recent guidelines he has given British Coal and the generators about the level of strategic reserve coal stocks and the rate at which these are being drawn down.

Mr. Eggar : Decisions about the future of individual collieries are a matter for British Coal, after consultation with the unions. However, the Government have offered a subsidy to both British Coal and private sector coal producers that can secure a genuinely additional market for United Kingdom undergound coal for electricity generation at world-related prices where this is consistent with the relevant European Community provisions.

I understand British Coal is continuing to test the market for supplementary sales.

Guidance on the level of coal stocks for 1993-94 based on an analysis by the National Grid Company was given to the generators in March. It contains commercially confidential information which it would not be appropriate to make public. This guidance will remain in force pending the outcome of the Government's review of the basis for the current arrangements, which was announced in the White Paper, "The Prospects for Coal : Conclusions of the Government's Coal Review".

Exports

Mr. Milburn : To ask the President of the Board of Trade what percentage of United Kingdom manufacturing exports were accounted for by internal company trading in each year since 1979.

Mr. Needham : The information is not available.

Inward Investment

Mr. Harry Greenway : To ask the President of the Board of Trade what estimate has been made of the number of new jobs achieved through inward investment in (a) the past five years and (b) the preceding five years ; and if he will make a statement.

Mr. Sainsbury : My Department's Invest in Britain Bureau has been notified of 1,411 inward investment decisions between 1982 and 1986 with 95,035 new jobs created. Similarly, between 1987 and 1991 there were 1,696 decisions, creating 129,955 new jobs. These figures are based on information provided by the companies at the time of the announcement to invest. There is no requirement to notify the Department and so the figures include only those projects where the Department's Invest in Britain Bureau and its regional partners were involved or which have come to their notice. They take no account of subsequent developments.


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Plutonium 240

Mr. David Alton : To ask the President of the Board of Trade what steps his Department takes to monitor the end-use of plutonium 240 exported overseas.

Mr. Eggar [holding answer 22 June 1993] : A licence is required for the export of plutonium-240. The Government take into account end-use and destination in assessing a licence application. Plutonium-240 is not classified as a special fissionable material. However, materials containing plutonium-240 are associated with other isotopes of plutonium which are subject to safeguards. Such materials would therefore come under the oversight of the international safeguards authorities.

National Environmental Technology Centre

Mrs. Anne Campbell : To ask the President of the Board of Trade, pursuant to his answer of 10 June to the hon. Member for Blaby (Mr. Robathan), Official Report, columns 303-04, if he will outline the environmental research work he expects the national environmental technology centre to conduct for the Government.

Mr. McLoughlin [holding answer 17 June 1993] : I refer the hon. Member to my reply to the hon. Member for Newcastle upon Tyne, Central (Mr. Cousins) on 21 June, Official Report, column 23.

British Nuclear Fuels

Mr. Simon Hughes : To ask the President of the Board of Trade if he will place in the Library a copy of the forward corporate plan from BNFL covering the next 15 years as submitted to his Department.

Mr. Eggar [holding answer 22 June 1993] : No.

Assisted Areas

Mrs. Ewing : To ask the President of the Board of Trade how many meetings he had with the European Commission prior to the submission of the assisted areas map on 15 June ; and if he will make a statement.

Mr. Sainsbury [holding answer 23 June 1993] : My right hon. Friend the President of the Board of Trade has not met the commission to discuss the assisted areas map. Officials from the DTI held informal meetings with commission officials prior to the submission of the proposed map on 15 June.

Public Appointments

Mr. George Howarth : To ask the President of the Board of Trade if he will list the names, occupations and current employers of those who currently hold positions in each public body to which he makes appointments ; if he will make a statement on the considerations taken into account when making such appointments ; and if he will list details of the posts and salaries or allowances payable which have changed since the publication of Public Bodies 1992.

Mr. Eggar [holding answer 25 June 1993] : There would be disproportionate cost involved in providing the names, occupations and current employers of all the Department's public appointees. The key considerations taken into


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account in making public appointments, in addition to any statutory criteria which may relate to a particular post, are the needs of the post and the skills of the particular individual. The following table indicates the current position in relation to those bodies where posts or salaries have changed since 1 September 1992. In addition, various allowances are paid to cover travel and subsistence and other costs in some cases.


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                              Posts                                                                                                                                           

Body                         |Chairman                    |Deputy, etc.                |Members                     |Notes                                                    

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Nationalised industries                                                                                                                                                       

British Shipbuilders         |1,  £17,368                 |-                           |2,  £5,000 and under        |No change                                                

British Coal Corporation<1>  |1,  £234,360                |2,  £110,000*               |4,  £95,000*                |*Plus performance related                                

                                                                                       |  £93,744*                  |bonus (currently under                                   

                                                                                       |  £88,536*                  |review) of up to 25 per                                  

                                                                                       |  £85,000*                  |cent. of salary                                          

                                                                                       |5,  under £8,000                                                                      

British Nuclear Fuels plc<1> |1,  £85,300**               |1,  £100,000-£105,000**     |1,  £145,000**              |One member is a Chief                                    

                                                                                       |1,  £135,000**              |Executive.                                               

                                                                                       |1,  £115,000****            |The Chairman and full-                                   

                                                                                       |1,  £100,000-£105,000**     |time Board Members                                       

                                                                                       |1,  £80,000-£85,000**       |receive performance                                      

                                                                                       |5,  £10,000                 |related bonus of up to                                   

                                                                                                                    |30 per cent. of salary                                   

Nuclear Electric plc<1>      |1,  £150,925                |1, £160,000                 |6,  £10,015                 |No change                                                

                                                          |1,  £145,777                                             |A performance related                                    

                                                          |1,  £95,000                                              |bonus of up to 30 per                                    

                                                          |1,  £85,000                                              |cent. of salary is available                             

                                                          |1,  £81,505                                                                                                        

Post Office                  |1,  £91,500                 |1,  £58,662                 |1,  £175,001-£180,000       |Plus performance related                                 

                                                                                       |1,  £100,001-£105,000       |bonus of up to 40 per                                    

                                                                                       |2,  £95,001-£100,000        |cent. of salary                                          

                                                                                       |1,  £15,001-£20,000                                                                   

                                                                                       |1,  £10,001-£15,000                                                                   

                                                                                       |2,  £5,001-£10,000                                                                    

<1>Transferred from Department of Energy to Department of Trade and Industry in April 1992.                                                                                   


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                                            Posts                                                                                                   

Body                                       |Chairman            |Deputy, etc.        |Members             |Notes                                    

----------------------------------------------------------------------------------------------------------------------------------------------------

Consumer consultative bodies                                                                                                                        

Advisory Committees on Telecommunications  |3,  £60 per day     |-                   |34                                                            

  for Scotland, Wales and Northern Ireland                                                                                                          

Area Transport Users' Consultative         |8,  £6,310          |8                   |118                                                           

  Committees                                                                                                                                        

Central Transport Consultative Committee   |1,  £7,910          |1                   |12                                                            

Domestic Coal Consumers' Council           |1,  £60 per day     |1                   |10                                                            

Gas Consumers' Council                     |1,  £14,150         |1,  £6,730          |11,  £5,300                                                   

                                                                                     |5                                                             

London Regional Passengers' Committee      |1,  £11,010         |2                   |20                                                            

National Consumer Council                  |[1,  £43.90 per day]|£12,720             |16,  £4,730                                                   

                                           |1,  £19,905                              |25,  £72 per day                                              

                                           |2,  £4,730          |1,                                                                                 

Post Office Users' National Council        |1,  £10,610         |-                   |16                                                            

Post Office Users' Councils for Scotland,  |3,  £60 per day     |-                   |29                  |No change                                

  Wales and Northern Ireland                                                                                                                        

Square brackets denote an appointment by others.                                                                                                    


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                                                               Posts                                                                          

Body                                                          |Chairman           |Deputy, etc.       |Members                                

----------------------------------------------------------------------------------------------------------------------------------------------

Executive, etc. bodies                                                                                                                        

British Hallmarking Council                                   |[1,  £5,750]       |-                  |10,  [6]                               

National Enterprise Board<1>    )                                                                     |No change                              

National Research Development   )         |1                  |-                  |6                                                          

  Corporation                             |                  )                                                                                

Design Council                                                |-                  |1                  |21                                     

English Industrial Estates Corporation    |1,  £25,315        |1,  £9,648         |4,  £5,220                                                 

  (EIEC)                                                                                                                                      

                                                                                  |1<2>                                                       

Hearing Aid Council                                           |1                  |-                  |12                                     

Monopolies and Mergers Commission                             |1,  £90,150        |3,  £31,625        |28,  £12,735<3>                        

                                                                                  | 5,  £12,735<4>    |appointment                            

Policyholders' Protection Board                               |1,  £350 per day   |-                  |4,  £230 per day<4>                    

The Simpler Trade Procedures Board                            |1                  |[1]                |1,  £51,540 [9]                        

                                                                                                      |Full-time                              

                                                                                                      |appointment                            

United Kingdom Atomic Energy Authority<5>                     |1,  £55,640        |1,  £104,000*      |3,  £83,200                            

                                                                                  |5,  £7,570         |appointment                            

                                                                                                      |*Chief Executive                       

<1>The figures reflect the privatisation (January 1992) and the subsequent sale (March 1992) of BTG and the continued existence of the NEB    

and NRDC Board to facilitate orderly winding up.                                                                                              

<2>EIEC's Chief Executive.                                                                                                                    

<3>Including eight reserve members paid only when serving on references.                                                                      

<4>Including one reserve member paid only when serving as a reference.                                                                        

<5>Transferred from Department of Energy to Department of Trade and Industry in April 1992.                                                   

Square brackets denote an appointment by others.                                                                                              


                                             Posts                                                                          

Body                                        |Chairman       |Deputy, etc.   |Members        |Notes                          

----------------------------------------------------------------------------------------------------------------------------

Advisory bodies                                                                                                             

Advanced Manufacturing Technology           |1              |-              |11             |No change                      

  Committee                                                                                                                 

Advisory Committee on Arbitration Law       |1              |1              |16             |No change                      

Advisory Committee on Telecommunications    |1,  £60 per day|-              |9              |No change                      

  for England                                                                                                               

Advisory Council of Research and            |1              |-              |10                                             

  Development<1>                                                                                                            

Advisory Panel on Deregulation              |1              |-              |7                                              

Aviation Committee                          |1              |-              |14             |No change                      

British Overseas Trade Board                |1,  £19,985    |1              |18                                             

Coal Task Force<1>                          |1              |-              |14                                             

Engineering Technology Advisory Committee   |1              |-              |14                                             

Industrial Development Advisory Board       |1              |-              |10             |No change                      

Information Technology Advisory Board       |1              |-              |15             |No change                      

Innovation Advisory Board                   |1              |-              |10                                             

LINK Steering Group                         |1              |-              |7                                              

Monitoring Committee on Misleading Price    |1              |-              |[30]           |No change                      

  Indications                                                                                                               

Offshore Industry Advisory Board<1>         |1              |-              |23                                             

Overseas Projects Board                     |1              |-              |14                                             

Regional Industrial Developments Boards     |5              |-              |47             |No change                      

Renewable Energy Advisory Committee<1>      |1              |-              |15             |No change                      

Standards, Quality and Measurement Advisory |1              |-              |12             |No change                      

  Committee                                                                                                                 

Standing Advisory Committee on Industrial   |1              |-              |[17]           |No change                      

  Property                                                                                                                  

<1>Transferred from Department of Energy to Department of Trade and Industry in April 1992.                                 

Square brackets denote an appointment by others.                                                                            


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                                        Posts                                                                                                                                                                                             

Body                                   |Chairman                              |Deputy, etc.                          |Members                               |Notes                                                                        

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Tribunals, etc.                                                                                                                                                                                                                           

Copyright Tribunal                     |1,  £300 per day*                     |2                                     |7,  £177 per day*                     |*Appointed from a panel of 3                                                 

                                                                                                                                                            |  chairpersons and 7 members                                                 

Insolvency Practitioners               |1,  £10 per day**                     |-                                     |2,  £16 per day**                     |**Appointed from a panel consisting of                                       

Tribunal                                                                                                                                                    |  5 chairpersons and 16 members                                              

Persons Hearing Consumer               |1,  £221 per day                      |-                                     |2,  £113 per day                      |Appointed from a panel of                                                    

Credit Licensing Appeals                                                                                                                                    |  21 chairpersons and 12 members                                             

Persons Hearing Estate                 |1,  £221 per day                      |-                                     |2,  £113 per day                      |Appointed from a panel of                                                    

Agents Appeals                                                                                                                                              |  14 chairpersons and 18 members                                             

NATIONAL HERITAGE

Environmental Policy

Mr. Chris Smith : To ask the Secretary of State for National Heritage what is his Department's policy on the purchase and use of (a) recycled paper, (b) low-energy light bulbs, (c) tropical hardwoods, (d) peat and (e) cars with catalytic converters.

Mr. Sproat : The Department of National Heritage has not yet finalised the formulation of its environmental policy. None the less, where possible we are practising the policy in anticipation of its formal introduction. The majority of the Department's staff have recently moved into a new central headquarters building and we have adopted the following practices with regard to the items mentioned : (

(a) Recycled paper--Recycled paper is used wherever possible. Our bulk supply of white A4 paper and our letterheaded paper are all recycled.

(b) Low-energy light bulbs--Low-energy light bulbs have been installed in the new headquarters building. Automatic presence detectors ensure that no lights are left on unnecessarily. (

(c) Tropical Hardwoods--No tropical hardwoods or woods from unreplenished forests have been used in fitting out the new headquarters.

(d) Peat--Use of peat or similar substances is minimal at our headquaters building, as we have no grounds. A total volume of only 3,000 litres (approximately) of potting mixture is used for live plant displays within the offices and the compost used is a mixture containing part moss peat.

(e) Cars--The Department does not purchase any cars and relies on the Government car service for its needs.

The Department has two agencies, the Historic Royal Palaces agency and the Royal Parks, which follow environmental guidelines for making the most efficient and economic use of the resources under their control. Recycled paper and low-energy light bulbs are used wherever possible. Tropical hardwoods are not used in furniture purchased by the agencies. English oak is used wherever possible for garden furniture at the royal palaces.


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Both agencies are committed to reducing the use of peat by replacing it with alternative formulations wherever possible. The Historic Royal Palaces agency does not purchase any cars. From 1995 a new vehicle hire contract will require all royal parks and royal parks constabulary vehicles to be fitted with catalytic converters whenever possible.

Market Testing

Mr. Flynn : To ask the Secretary of State for National Heritage how much his Department spent on legal advice regarding the implications of the Transfer of Undertakings (Protection of Employment) Regulations 1981 for the market-testing programme.

Mr. Sproat : Nothing.

PRIME MINISTER

European Council

Mr. Llew Smith : To ask the Prime Minister, pursuant to his oral statement on the European Council in Copenhagen of 23 June, Official Report, columns 309-10, what were the main elements of the Commission paper on information disclosure and transparency discussed at the Council ; and what was the policy position advanced by the United Kingdom on openness during the Council deliberations on the Commission's proposals.

The Prime Minister : The main points of the Commission's paper are :

a positive assessment of progress since Birmingham/Edinburgh ; suggestions for future activity, including follow-up to the Sutherland report on the single market (which addressed the need to ensure its effectiveness, for example through better explanation of the legislation and its rationale) and simplification of Community legislation to reduce burdens on business ;

the possibility of a round table meeting with regional/local authorities and NGOs ;

the need for a more responsive and effective Commission information/press service ;


Column 447

a request to member states to improve openness at national level about the implementation of Community policies ;

the idea of an inter-institutional agreement on access to information.

At Copenhagen, we welcomed the progress made since the Edinburgh European Council, in opening up the work of the Council of Ministers, had emphasised the importance of continuing work in this area, including on the Commission's proposals for granting public access to information held by the Community's institutions.

Third World Debt

Mr. Pike : To ask the Prime Minister if he will make it his policy to propose at the July summit of the G7 nations steps to ensure compliance with, and full implementation of, the Trinidad terms in relation to African poverty and debt ; and if he will make a statement.

The Prime Minister : The summit agenda is a matter for the Japanese. But we hope debt of the poorest and most heavily indebted countries will be one of the central issues for discussion at the summit. Our position on Trinidad terms for these countries is well known. I shall certainly continue to press for full Trinidad terms, in line with my original proposal for a benchmark of two thirds immediate reduction on the whole stock of debt, with up to 80 per cent. reduction for those in the greatest need.

Yugoslavia

Mr. Madden : To ask the Prime Minister if he will seek to convene a special EC Heads of Government meeting to consider emergency financial and other assistance to Croatia and Slovenia to support refugees in both countries and to review the EC refugee burden sharing arrangements ; and if he will make a statement.

The Prime Minister : The European Community has, since the beginning of the crisis in former Yugoslavia, made available £397 million for humanitarian relief. This includes a £119 million contribution at the end of last month. The United Kingdom has given a further £44.5 million bilaterally. Both these figures include substantial grants to the United Nations High Commissioner for Refugee--UNHCR. UNHCR will hold a donor meeting in mid-July to consider future needs.

Mr. Madden : To ask the Prime Minister what further financial and other assistance European Community countries are proposing to make available to the United Nations High Commissioner for Refugees in Bosnia, Croatia and Slovenia to support refugees and displaced persons ; and if he will make a statement.

The Prime Minister : The United Nations High Commissioner for Refugees will chair a meeting of donors in mid-July in Geneva. That meeting will focus on the latest detailed analysis of the needs of displaced people and others affected by the crisis in the former Yugoslavia, including Slovenia and Croatia. The acceptance of refugees and displaced people from the former Yugoslavia is the subject of frequent discussion between EC member states but at present there are no formal burden-sharing arrangements.


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Engagements

Sir Peter Tapsell : To ask the Prime Minister if he will list his official engagements for Tuesday 29 June.

Mr. Harry Greenway : To ask the Prime Minister if he will list his official engagements for Tuesday 29 June.

The Prime Minister : This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House I shall be having further meetings later today.

NATIONAL FINANCE

Environmental Policy

Mr. Chris Smith : To ask the Chancellor of the Exchequer what is the policy of his Departments on the purchase and use of (a) recycled paper, (b) low-energy light bulbs, (c) tropical hardwoods, (d) peat and (e) cars with catalytic converters.

Sir John Cope : The Chancellor of the Exchequer's Departments all pursue a policy of green housekeeping. In respect of the items referred to :

(a) where possible and cost effective, recycled paper is used ; (b) low- energy light bulbs are already in use or are being progressively installed in all Departments ;

(c) where technically feasible, tropical hardwoods will not be used ;

(d) peat is not used by several Departments ; advice on avoiding the use of peat will be issued by others ;

(e) some Departments already use cars with catalytic converters and in future all cars purchased or leased will have catalytic converters where practicable.

Departmental Speeches

Mr. Mandelson : To ask the Chancellor of the Exchequer if he will make it his policy to place copies of speeches given by officials of his Department and the Inland Revenue in the Library.

Mr. Dorrell : No. Officials in the Treasury and the Inland Revenue make a large number of speeches in the course of a year, many on subjects of interest only to a small number. However if a Member expresses interest in a particular speech that is on the record, a copy can then be placed in the Library.

Unit Trusts

Mr. Mandelson : To ask the Chancellor of the Exchequer what estimate has been made of the direct revenue effect in the years 1993-94 and 1994-95 of the announcements (a) that unit trust managers will be allowed to stream income which they receive and pay to corporate unit holders as between franked and unfranked income and (b) that there will be legislation to allow unit trusts to pay interest and other unfranked income gross to non- UK residents.

Mr. Dorrell : The estimated costs of the proposals are in the table.


Column 449


£ million                                                                    

                                            |1993-94   |1994-95              

-----------------------------------------------------------------------------

(a) Unit trust dividends received by        |10        |25                   

  companies to be divided into franked                                       

  and unfranked components                                                   

                                                                             

(b) Distributions out of underlying         |nil       |negligible           

  interest income of unit trusts to be paid                                  

  gross to certain non-UK residents                                          

Note: The position regarding unfranked income other than interest paid to    

non-UK residents is not yet settled.                                         

Finance Industry (Debt)

Mr. Mandelson : To ask the Chancellor of the Exchequer what was the level of (a) general and (b) specific provision for debt, as classified by the Inland Revenue, in the bank, finance and insurance sector for each year since 1985-86.

Mr. Dorrell : I regret the information requested is not available.

Corporation Tax

Mr. Mandelson : To ask the Chancellor of the Exchequer how many staff have been employed at the Inland Revenue on tax compliance work in connection with the corporation tax liabilities of banks and the finance sector in each year since 1985.

Mr. Dorrell : This information is not available.

Construction Industry

Mr. Nicholas Winterton : To ask the Chancellor of the Exchequer what steps he is taking to combat tax evasion in the construction industry.

Mr. Dorrell : Improvements to the existing tax regime in the construction industry are currently under consideration, as part of our commitment to tackling tax evasion wherever it arises.

Mr. Nicholas Winterton : To ask the Chancellor of the Exchequer what plans he has to lower the VAT registration threshold to nil turnover for businesses in the construction industry.

Sir John Cope : None.

Mr. Nicholas Winterton : To ask the Chancellor of the Exchequer what plans he has to review the value added tax arrangements for the construction industry in order to reduce evasion ; and if he will make a statement.


Column 450

Sir John Cope : There are no plans to introduce special VAT arrangements in the construction industry. However, Customs and Excise seek to minimise evasion as a matter of course.

VAT

Mr. Wigley : To ask the Chancellor of the Exchequer what plans he has to simplify the VAT regime.

Sir John Cope : The Government keep the VAT system under regular review, in consultation with the relevant trade and professional bodies. Improvements proposed in the last Budget include the reform of VAT penalties and default surcharge, halving the qualifying period for claiming bad debt relief, and increasing the turnover threshold for using the cash accounting scheme to £350,000.

In addition, Customs and Excise have embarked on a deregulation five-year rolling review of VAT law and administrative procedures with the aim of making VAT more user-friendly. Trade and professional bodies have been invited to identify areas in which there is scope for simplification.

Mr. Denzil Davies : To ask the Chancellor of the Exchequer what is is estimate of the total official revenue that will accrue to the Exchequer in a full year by imposing VAT at the rate of 5 per cent. on the goods and services described in categories 1, 6, and 8 of annex A of directive 92/77/EEC.

Sir John Cope [holding answer 28 June 1993] : Estimates of VAT revenue that would occur in a full year from a 5 per cent. rate are as follows :


                                |£ million          

----------------------------------------------------

Food                            |2,000              

Books, newspapers and magazines |300                

Artist royalties                |-50                

These estimates are for 1992-93 and make no allowance for behavioural change.

Uncollected Tax

Mr. Matthew Taylor : To ask the Chancellor of the Exchequer what is the latest estimated level of uncollected PAYE and national insurance contributions deducted but not paid over to the Revenue, in figures and as a percentage, for each year since 1979.

Mr. Dorrell : The amounts of PAYE and NIC remitted or written off as irrecoverable since 1979 are as follows :


Column 449


Year                |PAYE amount in £   |As a percentage of |Classes 1 and 1A   |As a percentage of                     

                    |thousands          |total PAYE         |NIC-amount in £    |total NIC classes 1                    

                                        |collected          |thousands          |and 1A collected                       

------------------------------------------------------------------------------------------------------------------------

1979                |n/a                |n/a                |n/a                |n/a                                    

1980                |9,914              |0.05               |1,056              |0.01                                   

1981                |11,432             |0.08               |1,158              |0.01                                   

1982                |15,281             |0.06               |1,261              |0.01                                   

1983                |22,622             |0.08               |1,555              |0.01                                   

1984                |33,312             |0.11               |1,971              |0.01                                   

1985                |46,695             |0.14               |2,213              |0.01                                   

1986                |60,915             |0.17               |4,377              |0.02                                   

1987                |92,560             |0.25               |8,514              |0.03                                   

1988                |130,724            |0.33               |15,894             |0.06                                   

1989                |122,890            |0.28               |15,127             |0.05                                   

1990                |107,091            |0.22               |17,239             |0.05                                   

1991                |135,258            |0.26               |21,644             |0.06                                   

1992                |381,172            |0.71               |32,570             |0.09                                   

Mr. Matthew Taylor : To ask the Chancellor of the Exchequer what is the latest estimated level of uncollected capital gains tax, in figures and as a percentage, for each year since 1979.

Mr. Dorrell : The amounts of capital gains tax remitted or written off as irrecoverable since 1979 are as follows :


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