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Column 748

27 April 1992

Minister of State, Northern Ireland Office

5 May

Chairman of Committees, House of Lords

Principal Deputy Chairman of Committees, House of Lords Deputy Speaker, House of Commons

25 September 1992

Secretary of State, National Heritage

11 December 1992

Parliamentary Under Secretary of State, Education

26 May 1993

Chancellor of the Exchequer

27 May 1993

Minister of State, Defence

Parliamentary Under Secretary of State, Trade and Industry Parliamentary Under Secretary of State, Office of Public Service and Science

Parliamentary Under Secretary of State, Transport

6 June 1993

Minister of State, FCO

24 June 1993

Minister of State, Northern Ireland Office

16 September 1993

Chief Whip, House of Lords

Note : Payments to ex-Ministers are made not less than three weeks after the effective date.

Tobacco

Mr. David Nicholson : To ask the Chancellor of the Exchequer what representations he has received regarding the retailing of imported tobacco products on which United Kingdom duty has not been paid ; what estimates he has of the extent of this retailing ; and what action he proposes to prevent it.

Sir John Cope : Representations expressing concern over the illegal importation of tobacco products have been received from Members of Parliament, tobacco manufacturers and retailers.

There are no reliable estimates of the extent of the retailing of illegally imported tobacco products. During the eight-month period January to August, Customs and Excise recorded 464 offences involving 543,791 cigarettes, 7,565 kg of hand-rolling tobacco and 2,809 cigars obtained in other member states of the EC and alleged to be destined for illicit retail sale.

The Finance (No. 2) Act 1992 introduced new offences to meet the threat of increased smuggling of revenue goods following the completion of the single market. The offences carry penalties of up to seven years' imprisonment. Customs and Excise have also implemented new control procedures to catch and deter bootleggers, including the recruitment and training of excise verification officers for intelligence-based targeting and enhanced checks at likely outlets for smuggled goods ; increasing the excise intelligence resources within the customs investigation division ; increased mutual assistance with other member states, including the appointment of liaison officers to work in the Netherlands, Belgium and France ; prosecuting or compounding, with, people and businesses found stocking, handling or dealing commercially in illicit excise goods.


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Customs and Excise will continue to review the situation in the light of experience.

Tobacco and Alcohol Imports

Mr. Mills : To ask the Chancellor of the Exchequer what is his estimate of the amount of tobacco products imported from France and Spain since 1 January which are sold in the United Kingdom in markets, car boot sales and clubs ; and if he will make a statement.

Sir John Cope : No such estimates are available. However, during the eight-month period January to August, Customs and Excise recorded 464 offences involving 543,791 cigarettes, 7,565kg of hand-rolling tobacco and 2,809 cigars obtained in other member states of the EC and alleged to be destined for illicit retail sale.

Income Tax

Mr. David Nicholson : To ask the Chancellor of the Exchequer if he will list the rates of income tax over 25 per cent., and the bands of income, in local currency terms, to which they apply, for France, Germany, the Netherlands, Italy, the United States of America, Canada, Australia and Japan.

Mr. Dorrell : The information requested is as follows.


France                                          

Rate per cent.  |Band of taxable                

                |income (francs)                

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

28.8            |60,690-73,450                  

33.6            |73,450-84,740                  

38.4            |84,740-141,190                 

43.2            |141,190-194,190                

49              |194,190-229,710                

53.9            |229,710-261,290                

56.8            |over 261,290                   

Note:                                           

The above bands of income apply to a single     

person; they are increased according to the     

taxpayer's family circumstances, e.g., x 2 for  

a married person with no children, and x 3 for  

a married taxpayer with two children.           

Germany                                         

The German tax rates rise gradually from 19 per 

cent. to 53 per cent. The effective rate rises  

above 25 per cent. when taxable income reaches  

28,349 DM (single taxpayer) and the top rate of 

53 per cent. takes effect when income is over   

120,041 DM. These two amounts are doubled for a 

married couple taxed jointly.                   


Netherlands                                           

Rate Per cent.    |Band of taxable                    

                  |income (guilders)                  

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

50                |43,267-86,534                      

60                |over 86,534                        


Italy                                                                   

Rate Per cent.          |Band of taxable                                

                        |income (lire)                                  

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

27                      |14,400,000-30,000,000                          

34                      |30,000,000-60,000,000                          

41                      |60,000,000-150,000,000                         

46                      |150,000,000-300,000,000                        

51                      |over 300,000,000                               


USA                                                             

Rate             Band of taxable                                

                 income (dollars)                               

Per cent.       |Single taxpayer|Married couple                 

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

28              |22,101-53,500  |36,901-89,150                  

31              |53,501-115,000 |89,151-140,000                 

36              |115,001-250,000|140,001-250,000                

39.6            |over 250,000   |over 250,000                   

Note:                                                           

The above federal rates only. Most states also levy income tax  

at varying rates.                                               


Canada                                             

Rate Per cent.   |Band of taxable                  

                 |income (dollars)                 

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

26               |29,591-59,180                    

29               |over 59,180                      

Notes:                                             

1. The above rates are increased by federal        

surcharges (maximum: 5 per cent. of tax due);      

2. All provinces levy income tax, usually as a     

percentage of federal tax due. For example, the    

rate in Ontario is 58 per cent., which effectively 

increases the 26 per cent. and 29 per cent. rates  

above to 41 per cent. and 45.8 per cent.           


Australia                                 

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

38            |9,543-16,438               

46            |16,439-22,831              

47            |over 22,831                


Japan                                                             

Rate Per cent.        |Band of taxable                            

                      |income (yen)                               

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

30                    |6,000,000-10,000,000                       

40                    |10,000,000-20,000,000                      

50                    |over 20,000,000                            

Notes: Local income taxes (maximum: 15 per cent. are also         

payable.                                                          

Mr. Mandelson : To ask the Chancellor of the Exchequer how much tax was remitted or written off as irrecoverable in 1992 ; and how much of this was PAYE contributions.

Mr. Dorrell : The amount of tax remitted or written off as irrecoverable in 1992 was :


                           |£000s              

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

Year ended 31 October 1992 |1,694,246          

The amount of PAYE contributions remitted or written off as irrecoverable in 1992 was :


                           |£000s          

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

Year ended 31 October 1992 |381,172        

Mr. Morgan : To ask the Chancellor of the Exchequer what proportion of the total sum raised from personal taxation has been paid by the top (a) 1 per cent., (b) 5 per cent. and (c) 10 per cent. of taxpayers in each year since 1979.

Mr. Dorrell : The latest estimates are given in the tables. Estimates of income tax liability are based on


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information reported to tax offices and collected through annual surveys of personal incomes. For years before 1985 -86, estimates exclude some investment income on which tax is deducted at source. For years up to and including 1989-90, married couples are counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation, for 1990-91 onwards, husbands and wives are counted separately. Estimates are based on the surveys of personal incomes for years up to 1991-92 and projections of the 1991-92 survey for subsequent years ; the latter are therefore provisional.


Percentage of income tax liabilities                                                                

Year                |Top 1 per cent. of |Top 5 per cent. of |Top 10 per cent. of                    

                    |taxpayers<1>       |taxpayers<1>       |taxpayers<1>                           

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

1978-79             |11                 |24                 |34                                     

1983-84             |11                 |26                 |36                                     

1984-85             |12                 |26                 |38                                     

1985-86             |13                 |27                 |38                                     

1986-87             |14                 |29                 |39                                     

1987-88             |15                 |30                 |41                                     

1988-89             |15                 |31                 |42                                     

1989-90             |15                 |31                 |42                                     

1990-91             |15                 |31                 |42                                     

1991-92             |16                 |33                 |43                                     

1992-93<2>          |17                 |34                 |45                                     

1993-94<2>          |17                 |34                 |45                                     

<1> Married couples and single people for years prior to 1990-91.                                   

<2> Provisional.                                                                                    

Value Added Tax

Mr. Gordon Prentice : To ask the Chancellor of the Exchequer what additional revenue would be generated by extending VAT to newspapers, books and magazines.

Sir John Cope : The publication "Tax Ready Reckoner and Tax Reliefs" shows the cost of not applying VAT at the standard rate to those goods currently zero-rated. For books, newspapers and magazines the figure for 1993-94 is £1.1 billion. This figure makes no allowance for changes in behaviour.


Column 752

Mr. Marlow : To ask the Chancellor of the Exchequer how much could be raised by putting VAT on (a) the clothes and (b) the footwear of small people including children.

Sir John Cope [holding answer 25 October 1993] : The publication "Tax Ready Reckoner and Tax Reliefs" shows that the estimated cost of not standard rating children's clothing and footwear was £600 million in 1993-94. This figure makes no allowance for changes in behaviour if the tax were imposed.

Mr. Alfred Morris : To ask the Chancellor of the Exchequer (1) what is his estimate of the sum that would be raised in the next financial year by imposing VAT on domestic air fares at the standard rate ; (2) what is his estimate of the sum that would be raised in the next financial year by imposing VAT on bus fares at the standard rate.

Sir John Cope [holding answer 26 October 1993] : Table 9 of the publication "Tax Ready Reckoner and Tax Reliefs" published by HM Treasury in July 1993 provides an estimate of £1,150 million for the cost of zero-rating domestic passenger transport in 1993-94. Very roughly, around £450 million of this is in respect of bus fares ; around £150 million is in respect of air fares. These figures make no allowance for the likely behavioural response to applying VAT at the standard rate to these items.

End-year Flexibility Schemes

Mr. Burns : To ask the Chancellor of the Exchequer if he will list the entitlements for 1993-94 resulting from the carry forward of the capital and running costs underspends allowed under the end-year flexibility schemes.


Cash limits on Votes                                                                                              

Class              |Vote              |Accounting        |Description of    |Amount £ thousands                   

                                      |Department        |expenditures                                            

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

                                                         |Cabinet Office:                                         

XIX                |1                 |Cabinet Office    |Other services    |868                                  

SOCIAL SECURITY

Social Security Fraud

Mr. Batiste : To ask the Secretary of State for Social Security what is his estimate of the amount of social security fraud which could be prevented by a national photo identity card using modern technology to prevent forgery.

Mr. Hague : It is not possible to estimate the full impact of identity cards on reducing benefit fraud as many social security frauds arise from misrepresentation of the facts rather than false identity. The issue of national identity cards is a matter for the Home Office.


Column 752

Child Support Agency

Mr. Kevin Hughes : To ask the Secretary of State for Social Security what steps are taken to ensure that, when a maintenance assessment is calculated, the Child Support Agency takes into full account the settlement of financial affairs made in the courts between former partners.

Mr. Burt : Calculation of maintenance by the Child Support Agency is based on the current needs of children, and the current income and outgoings of their parents. The maintenance formula which the agency uses, while not making any direct allowance for capital or property settlements, does take account of the practical consequences of such agreements, since the current housing costs of absent parents are allowed for in calculating their maintenance liability, and a capital settlement may affect the assessable income both of the absent parent and of the parent with care. In such cases, where the practical


Column 753

outcome is that the absent parent has higher costs or lower income, his maintenance liability will consequently be less.

Mr. Kevin Hughes : To ask the Secretary of State for Social Security what assessment his Department has made of the performance of the Child Support Agency in the first six months of its operation since April.

Mr. Burt : The Child Support Agency is still a new business. Ministers and officials of the Department meet the chief executive regularly to discuss the agency's performance. The agency has made a determined start on its important task of ensuring that more children receive more maintenance more regularly.

Mr. Kevin Hughes : To ask the Secretary of State for Social Security what number of maintenance assessments his Department has set as a target for the Child Support Agency to handle in the first 12 months of operation ; and what other performance targets have been set.

Mr. Burt : My right hon. Friend the Secretary of State has set a limited range of targets for 1993-94 which are set out in the agency's published business plan. They are :

60 per cent. of people with the care of children making eligible applications to the CSA to have maintenance arranged ;

annual benefit savings of £530 million ;

to maintain the Agency's resources so as to deliver its Business Plan within a total budget of £115 million ;

65 per cent. of clients to regard the service as satisfactory, as measured by an independent national survey ;

to meet a set of milestone targets which relate to major initiatives.

Accommodation. Open Child Support Agency Centre at Birkenhead and Plymouth by 31 October 1993.

Recruitment and training. Recruit and train sufficient numbers of staff to begin operations at Birkenhead and Plymouth Centres by 31 October 1993.

Staff resources. Develop further the complementing system in the light of live running to inform proposals for staff in the 1994 Public Expenditure Survey.

Child Support Computer System. Implement by 30 June 1993 Release 1.1 of the Child Support Computer System.

Service planning. Child Support Agency Centres and Divisions to produce service plans in time to inform the 1994 Public Expenditure Survey.

Mr. Dewar : To ask the Secretary of State for Social Security (1) in how many cases considered by the Child Support Agency at the latest date for which figures are available the parent with care has declined to reveal details of the absent parent or to sign the authorisation ; in how many of these the explanation has been accepted by the Child Support Agency and no further proceedings taken ; and in how many cases investigations are continuing ;

(2) how many cases there have been at the latest available date for which figures are available where the parent with care is a man ; and what percentage these represent of the total number of cases dealt with by the Child Support Agency ;

(3) how many absent parents have appealed against the sum fixed for maintenance by the Child Support Agency ; and what percentage this is of the total number of such assessments issued ;


Column 754

(4) how many and what percentage of the total number of Child Support Agency authorisation forms signed at the latest date for which figures are available have been signed by a parent with care in receipt of income support ;

(5) how many completed maintenance assessments and what percentage of the total so completed relate to cases where the parent with care is in receipt of income support at the latest date for which figures are available ;

(6) what is the average period between the issue of an inquiry form to a parent with care and the fixing by the Child Support Agency of the sum to be paid in maintenance by an absent parent ;

(7) what is his best estimate of the administrative cost of processing an individual case by the Child Support Agency from the initial reference of the parent with care to the final assessment of the absent parent's maintenance payment and of the average collection costs in a full year ;

(8) what estimate he can give of the administrative costs of the Child Support Agency in the first year of its operation ; (9) how many cases there have been at the latest date for which figures are available in which there has been a deduction from income support because of a refusal by a parent with care to supply information about an absent parent ;

(10) in how many cases considered by the Child Support Agency, at the latest date for which information is available, the absent parent has disputed parenthood ; and in how many of these cases court proceedings to establish parenthood have been instituted or are pending ;

(11) how many maintenance assessments have been issued (a) in total and (b) in each of the Child Support Agency's regional centres at the latest date for which figures are available ; (12) what estimate he can give of the average sum assessed for maintenance by the Child Support Agency where there is (a) one child, (b) two children and (c) more than two children at the latest date for which such figures are available ;

(13) how many authorisation forms have been signed by parents with care (a) in total and (b) in each of the Child Support Agency's regional centres, respectively, at the latest available date for which figures are available ;

(14) how many staff are presently employed by the Child Support Agency (a) in total, (b) at headquarters and (c) at each of the regional centres.

Mr. Burt : The administration of the Child Support Agency is a matter for Ros Hepplewhite, the chief executive. She will write to the hon. Member and a copy will be placed in the Library.

Letter from Ros Hepplewhite to Mr. Donald Dewar, dated 27 October 1993 :

As Chief Executive of the Child Support Agency it is my responsibility to answer questions about relevant operational matters. I am therefore replying to your recent Parliamentary Questions to the Secretary of State for Social Security about various aspects of the work of the Child Support Agency.

I should perhaps first explain that the information refers to the period 5 April to 30 September 1993 except where otherwise indicated, and that the Agency does not distinguish whether a Parent with Care of children or an Absent Parent is male or female.

You ask about cases where the requirement to co-operate has been an issue. The number of such cases to 30 September 1993 is 6,600, and in 4,900 of these the Agency has accepted that the Parent with Care had good cause not to co-operate in pursuing a


Column 755

maintenance claim. Of those cases in which "good cause" was not accepted, only 22 have been referred to the Benefits Agency for the prescribed benefit reduction.

As regards appeals, at 30 September 1993, 2,825 clients had requested a review of their maintenance assessment, representing 7.7 per cent. of the total number of maintenance assessments in the same period. In addition the Independent Tribunal Service had approached the Agency for a report in 86 appeal cases. The Agency does not distinguish between appeals made by Absent Parents and Parents with Care.

You ask specifically about Income Support claimants. To date, 527, 000 Maintenance Application Forms (MAFs) have been issued and of these 385,000 (ie, 73 per cent.) were in respect of parents with care on Income Support, 328,000 MAFs have been returned but the number of these which relate to Income Support clients is not known as this information is not collected. Information on MAFs returned and maintenance assessments completed and broken down by CSA Centre (CSAC) is contained in Annex A.

Information on the time taken to process maintenance applications is not yet available but we anticipate that this will take between 6 and 12 weeks in a straightforward case and longer in more difficult cases.

You ask about the Agency's costs and I should explain that the fees, £44 for the Agency's assessment service and £34 for the collection service, are based on the full economic cost of administering the Agency's services to its clients. The Agency's administrative budget for 1993-94 is £115 million (ie, £95 million in running costs and £7 million in capital costs) and £13 million in other costs. This information was contained in the Agency's Business Plan. No changes have been made to the agreed budget.

With regard to disputed paternity, there have been less than 1,000 cases to date of which fewer than 20 have been referred to the courts to be resolved.

Figures on the average amount of maintenance assessment payments are not yet available. The Child Support Act provides for maintenance to be assessed by means of a standard formula, which will result, on average, in payments of £40-£50 a week. This compares to the £25- £30 a week which was previously the average maintenance payment. Information on staff employed by the Agency is contained in Annex B.

I hope you will find this reply helpful. A copy will appear in the Official Report and a copy will also be placed in the Library.


Maintenance assessments completed                              

                     |Year to 30 September                     

                     |1993                                     

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

Belfast CSAC         |3,862                                    

Birkenhead CSAC      |7,582                                    

Dudley CSAC          |7,420                                    

Falkirk CSAC         |7,074                                    

Hastings CSAC        |4,892                                    

Plymouth CSAC        |5,780                                    

                     |----                                     

Total                |36,610                                   


Maintenance assessment forms returned                 

                  |Year to 1 October                  

                  |1993                               

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

Belfast CSAC      |68,100                             

Birkenhead CSAC   |61,100                             

Dudley CSAC       |58,100                             

Falkirk CSAC      |56,700                             

Hastings CSAC     |38,200                             

Plymouth CSAC     |46,500                             

                  |----                               

Total             |328,700                            


Column 756


Staffing                          

Staff employed by the Child       

Support Agency at 1 October 1993  

                |Number           

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

CSA Total       |<1>4,594         

Headquarters    |231              

Birkenhead CSAC |368              

Dudley CSAC     |512              

Falkirk CSAC    |439              

Hastings CSAC   |568              

Plymouth CSAC   |363              

Belfast CSAC<2> |431              

<1> This figure includes CSA      

Local Office and 723 part-time    

staff.                            

<2> This figure represents those  

staff in Belfast who deal with    

cases from Great Britain. They    

are Northern Ireland Civil        

Servant and do not appear in the  

total Agency figures shown above. 

Household Income

Ms Primarolo : To ask the Secretary of State for Social Security what are the median incomes for the top, ninth, eighth, seventh and sixth deciles, before and after housing costs for the years 1979 and 1990-91, in terms of net equivalised household income.

Mr. Burt : The information is provided in the tables.


Median net equivalised household income of top five deciles                      

(£ per week-April 1993 prices)                                                   

Year                  Decile Group                                               

                      Medians                                                    

                     |Decile 6 |Decile 7 |Decile 8 |Decile 9 |Decile 10          

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

Before housing costs                                                             

1979                 |180      |202      |230      |226      |349                

1990-91              |229      |264      |313      |381      |551                

After housing costs                                                              

1979                 |157      |177      |201      |233      |308                

1990-91              |201      |235      |277      |338      |498                

Notes:                                                                           

1. All figures are subject to sampling error.                                    

TRANSPORT

New Rolling Stock

Mr. Gunnell : To ask the Secretary of State for Transport when he expects to come to a consultation on the review of the timing of new rolling stock, pursuant to the West Yorkshire passenger transport authority's letter of 11 October.

Mr. Freeman : My officials will be discussing with the passenger transport executive a number of issues raised in the appraisal. Subject to a satisfactory resolution of those issues, I am hopeful that we will be able to complete our review of the timing of new rolling stock within six weeks.

Vehicle Operator Licensing

Ms Walley : To ask the Secretary of State for Transport (1) how many heavy goods vehicles are exempt from goods operator licensing ; (2) if he will list each type of vehicle exempt from goods vehicle operator licensing.

Mr. Key : I refer the hon. Member to the reply given to the hon. Member for Leeds, Central (Mr. Fatchett) on Tuesday 26 October, at columns 539-40 .


Column 757

HGV Drivers

Mr. Pickthall : To ask the Secretary of State for Transport if he will institute a review of the regulations governing licences for heavy goods vehicle drivers with insulin-dependent diabetes.

Mr. Key : Regulations introduced on 1 April 1991 included insulin treated diabetes as a bar to entitlement to drive large lorries and buses for new applicants and those first treated with insulin after this date. The effect of diabetes on driving is kept under constant reassessment by the honorary medical advisory panel on driving and diabetes mellitus.


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