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Mr. Gummer : All the NDPBs' annual accounts, and in most cases their annual reports, are statutory documents which are published. In most cases they are also laid before Parliament.

Local Government, Isle of Wight

Mr. Barry Field : To ask the Secretary of State for the Environment if he will make a statement on the future of local government and the unitary authority proposals for the Isle of Wight.

Mr. Gummer : I have today written to Sir John Banham, chairman of the Local Government Commission, giving my decision on the commission's report "Final Recommendations on the Future Local Government of the Isle of Wight".

After considering the commission's recommendations for the island and the representations made, I have concluded that effective and convenient local government on the Isle of Wight would be best achieved by establishing a unitary authority for the whole island--Commission recommendation 1--and that this would best meet the identities and interests of the local people. The single-tier Isle of Wight council will be up and running by 1 April 1995.

All the other commission recommendations have been accepted as submitted with the exception of that for planning--recommendation 3--which I propose to modify. I believe that the planning needs on the island would be better served if the unitary authority were to prepare a unitary development plan rather than to continue with a two-tier planning system. The draft order for the Isle of Wight reorganisation will therefore state that, for the purposes of part II of the Town and Country Planning Act 1990, the initary island authority should be treated as an authority to whose area chapter I- -unitary plans--of this part of the Act applies, rather than chapter II.

It is intended that the existing district councils on the Isle of Wight will cease to exist as of 1 April 1995.


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There will be elections to the unitary authority held in May 1995. In order that there is adequate provision for planning the smooth transition to the new structure I intend to give the present county councillors, in consultation with the present district councillors, the necessary powers to plan for change.

Planning for the new unitary authority will be undertaken by existing county councillors who will consult and involve South Wight and Medina councils.

An order giving effect to the commission's recommendations, with the planning modification, will be laid before the House in due course. A copy of my letter to Sir John Banham has been placed in the Library.

Local Government Commission

Mr. Luff : To ask the Secretary of State for the Environment when he will issue revised guidelinestlined in my right hon. Friend's announcement of 30 September and taking account of the comments we received on our draft proposals. We are re-emphasising the benefits of unitary authorities and asking the commission to give more weight to proposals emerging as a result of local consensus. A copy of the document has been placed in the Library of the House and additional copies are available in the Vote Office.

I hope that, by removing any doubt about the Government's views on a number of issues, the revised guidance will assist the commission in its important task of recommending arrangements which best combine a reflection of the identities and interests of local people with the need to secure convenient and effective local government. We are still discussing with the Local Government Commission the details of the accelerated review programme.

Mr. Patrick Doyle

Mr. Dobson : To ask the Secretary of State for the Environment if he will publish a list of all meetings held and correspondence exchanged in the past 10 years between his Department and Mr. Patrick Doyle, now of AST Training ; what was the nature of such meetings or correspondence ; what plans he has to meet Mr. Patrick Doyle ; and if he will make a statement.

Mr. Gummer [holding answer 22 October 1993] : My Department has traced only two contacts with companies associated with Mr. Patrick Doyle. The first was when the Queen Elizabeth II conference centre contracted Home Counties Cleaning on an ad hoc basis for the period 2 June to 18 August 1986. The second was when the Deptford task force let a contract for two plastering skills training courses from February 1991 to September 1992. I have no plans to meet Mr. Doyle.


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AGRICULTURE, FISHERIES AND FOOD

Agricultural Wages Board

Mr. Redmond : To ask the Minister of Agriculture, Fisheries and Food how many inspectors are currently employed by the Agricultural Wages Board ; and how many were employed 10 years ago.

Mr. Jack : Agricultural minimum wage enforcement is the responsibility of the Minister of Agriculture, Fisheries and Food. Staff undertake wages inspection as one of a range of duties and the time spent on this activity will vary considerably from officer to officer. Total time spent by the Ministry on minimum wage enforcement is therefore the best measure when comparing one year with another. The earliest figures available relate to 1987-88 and show a total input of around 19 staff years. In 1992-93 the comparable figure was also some 19 staff years.

Mr. Redmond : To ask the Minister of Agriculture, Fisheries and Food how many visits have been carried out during the last 12 months by Agricultural Wages Board inspectors ; and how many were carried out 10 years ago.

Mr. Jack : Agricultural wages inspections are carried out by officers appointed by the Minister of Agriculture, Fisheries and Food and by the Secretary of State for Wales. During 1992, the latest full year for which figures are available, 554 holdings were visited as part of the programme of test inspections or in the process of following up specific complaints. In 1982, 2,979 holdings were visited. However, this 1982 figure includes visits to collect statistical information for the wages and employment inquiry. This statistical information is now collected by post and, as a result, the 1992 and 1982 figures are not directly comparable.

Hill Livestock Compensatory Allowances

Mr. Tyler : To ask the Minister of Agriculture, Fisheries and Food what percentage of eligible farmers had received their hill livestock compensatory allowances for 1993 by 31 October.

Mr. Jack : At the end of October, the total number of hill livestock compensatory allowance claims received in the United Kingdom under the 1993 scheme was 64,557. Of these 62,981 have been processed for payment. This represents 97.5 per cent. of the claims received.

Fisheries Conservation

Mr. Tyler : To ask the Minister of Agriculture, Fisheries and Food what representations she has received on future conservation measures for fish stocks in the Irish sea ; and if she will make a statement.

Mr. Jack : We have received a report from the National Federation of Fishermen's Organisations setting out its proposed alternatives to days at sea restrictions including proposals for the Irish sea. We are considering the report urgently and hope to make an announcement shortly.

Mr. Hicks : To ask the Minister of Agriculture, Fisheries and Food when he intends responding to the proposals by the National Federation of Fishermen's Organisations for alternative conservation measures to the proposal by the Government to limit the days at sea that fishermen may fish ; and if he will make a statement.


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Mr. Jack : I hope to make an announcement shortly.

Sheep and Cattle Farms

Dr. Strang : To ask the Minister of Agriculture, Fisheries and Food what was the net farm income for mainly sheep and sheep and cattle farms in severely disadvantaged areas in England and Wales, in both nominal and real terms for each year since 1978.

Mrs. Gillian Shephard [pursuant to her reply, 29 October 1993, c. 798] : Estimates of net farm income, based on results of sample surveys are provided in the tables. The method of farm classification has been changed and results for 1992-93 and subsequent years will only be available on the revised method. In order to ensure a


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consistent data series the results for years from 1986-87 have been reanalysed and these are presented for SDA specialist sheep farms and SDA mixed cattle and sheep farms in table 1, for England, and table 2, for Wales. Tables 3 and 4 provide data on the previous method of classification for the years 1978-79 to 1991-92 for SDA sheep farms and SDA cattle and sheep farms.

Year-to-year comparisons can best be made by reference to the indices shown in the tables, which are based on results from constant samples of farms.

Forecasts of incomes will be placed in the Library of the House on 30 November when the outcome of the autumn review of hill livestock compensatory allowances is announced.


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Table 4                                                                                                                                                                             

Average net farm income on livestock farms wholly or partly in the Severely Disadvantaged Area in Wales (Old Classification)                                                        

Year<1>            Mainly sheep                                                            Cattle and sheep                                                                         

                   farms                                                                   farms                                                                                    

                   £'000 per farm                      Indices<2>                          £'000 per farm                      Indices<2>                                           

                  |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>    |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>                      

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

1978-79<5>        |6.9              |18.1             |76               |189              |7.4              |19.4             |73               |181                                

1979-80<5>        |2.9              |6.7              |32               |69               |4.1              |9.5              |40               |89                                 

1980-81<5>        |5.9              |11.5             |68               |124              |6.2              |12.2             |58               |107                                

1981-82<5>        |8.8              |15.5             |95               |157              |7.8              |13.6             |103              |171                                

1982-83<5>        |6.2              |10.2             |73               |113              |6.7              |11.1             |86               |134                                

1983-84           |8.6              |13.4             |97               |142              |6.6              |10.4             |80               |119                                

1984-85           |9.7              |14.5             |147              |206              |7.7              |11.4             |83               |117                                

1985-86           |7.9              |11.2             |101              |133              |8.4              |11.8             |96               |129                                

1986-87           |9.8              |13.4             |112              |144              |9.3              |12.8             |98               |127                                

1987-88           |9.4              |12.3             |105              |130              |12.5             |16.4             |119              |149                                

1988-89           |8.3              |10.4             |149              |175              |8.5              |10.6             |154              |181                                

1989-90           |9.5              |10.9             |99               |107              |10.9             |12.5             |94               |102                                

1990-91           |10.8             |11.4             |89               |88               |8.7              |9.1              |72               |71                                 

1991-92           |16.8             |16.5             |112              |105              |13.7             |13.5             |134              |126                                

Notes:  Accounting years end on average in February.                                                                                                                                

<2> 1989-90-1991-92=100.                                                                                                                                                            

<3> The information has been derived by deflating the current price estimates by the retail prices index.                                                                           

<4> Provisional figure at the time of the 1993 autumn review of the economic conditions in the hills and uplands.                                                                   

<5> The estimates for these years are not strictly comparable with those for later years.                                                                                           


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Table 4                                                                                                                                                                             

Average net farm income on livestock farms wholly or partly in the Severely Disadvantaged Area in Wales (Old Classification)                                                        

Year<1>            Mainly sheep                                                            Cattle and sheep                                                                         

                   farms                                                                   farms                                                                                    

                   £'000 per farm                      Indices<2>                          £'000 per farm                      Indices<2>                                           

                  |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>    |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>                      

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

1978-79<5>        |6.9              |18.1             |76               |189              |7.4              |19.4             |73               |181                                

1979-80<5>        |2.9              |6.7              |32               |69               |4.1              |9.5              |40               |89                                 

1980-81<5>        |5.9              |11.5             |68               |124              |6.2              |12.2             |58               |107                                

1981-82<5>        |8.8              |15.5             |95               |157              |7.8              |13.6             |103              |171                                

1982-83<5>        |6.2              |10.2             |73               |113              |6.7              |11.1             |86               |134                                

1983-84           |8.6              |13.4             |97               |142              |6.6              |10.4             |80               |119                                

1984-85           |9.7              |14.5             |147              |206              |7.7              |11.4             |83               |117                                

1985-86           |7.9              |11.2             |101              |133              |8.4              |11.8             |96               |129                                

1986-87           |9.8              |13.4             |112              |144              |9.3              |12.8             |98               |127                                

1987-88           |9.4              |12.3             |105              |130              |12.5             |16.4             |119              |149                                

1988-89           |8.3              |10.4             |149              |175              |8.5              |10.6             |154              |181                                

1989-90           |9.5              |10.9             |99               |107              |10.9             |12.5             |94               |102                                

1990-91           |10.8             |11.4             |89               |88               |8.7              |9.1              |72               |71                                 

1991-92           |16.8             |16.5             |112              |105              |13.7             |13.5             |134              |126                                

Notes:  Accounting years end on average in February.                                                                                                                                

<2> 1989-90-1991-92=100.                                                                                                                                                            

<3> The information has been derived by deflating the current price estimates by the retail prices index.                                                                           

<4> Provisional figure at the time of the 1993 autumn review of the economic conditions in the hills and uplands.                                                                   

<5> The estimates for these years are not strictly comparable with those for later years.                                                                                           


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Table 4                                                                                                                                                                             

Average net farm income on livestock farms wholly or partly in the Severely Disadvantaged Area in Wales (Old Classification)                                                        

Year<1>            Mainly sheep                                                            Cattle and sheep                                                                         

                   farms                                                                   farms                                                                                    

                   £'000 per farm                      Indices<2>                          £'000 per farm                      Indices<2>                                           

                  |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>    |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>                      

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

1978-79<5>        |6.9              |18.1             |76               |189              |7.4              |19.4             |73               |181                                

1979-80<5>        |2.9              |6.7              |32               |69               |4.1              |9.5              |40               |89                                 

1980-81<5>        |5.9              |11.5             |68               |124              |6.2              |12.2             |58               |107                                

1981-82<5>        |8.8              |15.5             |95               |157              |7.8              |13.6             |103              |171                                

1982-83<5>        |6.2              |10.2             |73               |113              |6.7              |11.1             |86               |134                                

1983-84           |8.6              |13.4             |97               |142              |6.6              |10.4             |80               |119                                

1984-85           |9.7              |14.5             |147              |206              |7.7              |11.4             |83               |117                                

1985-86           |7.9              |11.2             |101              |133              |8.4              |11.8             |96               |129                                

1986-87           |9.8              |13.4             |112              |144              |9.3              |12.8             |98               |127                                

1987-88           |9.4              |12.3             |105              |130              |12.5             |16.4             |119              |149                                

1988-89           |8.3              |10.4             |149              |175              |8.5              |10.6             |154              |181                                

1989-90           |9.5              |10.9             |99               |107              |10.9             |12.5             |94               |102                                

1990-91           |10.8             |11.4             |89               |88               |8.7              |9.1              |72               |71                                 

1991-92           |16.8             |16.5             |112              |105              |13.7             |13.5             |134              |126                                

Notes:  Accounting years end on average in February.                                                                                                                                

<2> 1989-90-1991-92=100.                                                                                                                                                            

<3> The information has been derived by deflating the current price estimates by the retail prices index.                                                                           

<4> Provisional figure at the time of the 1993 autumn review of the economic conditions in the hills and uplands.                                                                   

<5> The estimates for these years are not strictly comparable with those for later years.                                                                                           


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Table 4                                                                                                                                                                             

Average net farm income on livestock farms wholly or partly in the Severely Disadvantaged Area in Wales (Old Classification)                                                        

Year<1>            Mainly sheep                                                            Cattle and sheep                                                                         

                   farms                                                                   farms                                                                                    

                   £'000 per farm                      Indices<2>                          £'000 per farm                      Indices<2>                                           

                  |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>    |Current prices   |1991-92 prices<3>|Current prices   |Real Terms<3>                      

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

1978-79<5>        |6.9              |18.1             |76               |189              |7.4              |19.4             |73               |181                                

1979-80<5>        |2.9              |6.7              |32               |69               |4.1              |9.5              |40               |89                                 

1980-81<5>        |5.9              |11.5             |68               |124              |6.2              |12.2             |58               |107                                

1981-82<5>        |8.8              |15.5             |95               |157              |7.8              |13.6             |103              |171                                

1982-83<5>        |6.2              |10.2             |73               |113              |6.7              |11.1             |86               |134                                

1983-84           |8.6              |13.4             |97               |142              |6.6              |10.4             |80               |119                                

1984-85           |9.7              |14.5             |147              |206              |7.7              |11.4             |83               |117                                

1985-86           |7.9              |11.2             |101              |133              |8.4              |11.8             |96               |129                                

1986-87           |9.8              |13.4             |112              |144              |9.3              |12.8             |98               |127                                

1987-88           |9.4              |12.3             |105              |130              |12.5             |16.4             |119              |149                                

1988-89           |8.3              |10.4             |149              |175              |8.5              |10.6             |154              |181                                

1989-90           |9.5              |10.9             |99               |107              |10.9             |12.5             |94               |102                                

1990-91           |10.8             |11.4             |89               |88               |8.7              |9.1              |72               |71                                 

1991-92           |16.8             |16.5             |112              |105              |13.7             |13.5             |134              |126                                

Notes:  Accounting years end on average in February.                                                                                                                                

<2> 1989-90-1991-92=100.                                                                                                                                                            

<3> The information has been derived by deflating the current price estimates by the retail prices index.                                                                           

<4> Provisional figure at the time of the 1993 autumn review of the economic conditions in the hills and uplands.                                                                   

<5> The estimates for these years are not strictly comparable with those for later years.                                                                                           

Surplus Food Scheme

Mr. Gerrard : To ask the Minister of Agriculture, Fisheries and Food what type and quantities of food she expects to be available for distribution via the EC surplus food scheme in 1993-94.

Mr. Jack : I announced on 26 July that 6,200 tonnes of beef will be released under the scheme from intervention stocks to be canned for allocation to designated organisations and that further quantities may be made available later. I am pleased to announce that the Commission has approved the release of an additional 6,000 tonnes of beef for distribution in the United Kingdom during 1993-94. In previous years, butter has also been distributed, but successful reductions of


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intervention stocks have meant that butter cannot now be made available under the scheme. I will be announcing the arrangements for the distribution of beef shortly.

WALES

School Pupils

Mr. Win Griffiths : To ask the Secretary of State for Wales, pursuant to his answer of 19 July, Official Report, columns 54-56, on the placing of full-time pupils aged five to 15 years, when he expects to publish the relevant information for January 1993.

Sir Wyn Roberts : The information requested is given in the tables.

(a) The number of full-time pupils aged 5-15 years


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                 (iii) the LEA but                 

                 attending                         

                 non-maintained                    

                 special and                       

                 independent                       

                 schools<1>                        

                |1988|1989|1990|1991|1992|1993     

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

Clwyd           |3   |2   |4   |2   |8   |5        

Dyfed           |10  |16  |8   |12  |21  |21       

Gwent           |36  |45  |56  |69  |32  |41       

Gwynedd         |8   |8   |7   |8   |6   |7        

Mid Glamorgan   |52  |53  |58  |61  |51  |37       

Powys           |14  |22  |18  |20  |18  |18       

South Glamorgan |6   |9   |7   |9   |5   |5        

West Glamorgan  |17  |15  |9   |12  |2   |2        

<1> Data for 1988-1991 include children of all     

ages. Data for 1992 and 1993 include children aged 

5-16 years with statements of special educational  

needs only. Data include children being educated   

outside of the authority in which they are         

registered.                                        


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                 (iii) the LEA but                 

                 attending                         

                 non-maintained                    

                 special and                       

                 independent                       

                 schools<1>                        

                |1988|1989|1990|1991|1992|1993     

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

Clwyd           |3   |2   |4   |2   |8   |5        

Dyfed           |10  |16  |8   |12  |21  |21       

Gwent           |36  |45  |56  |69  |32  |41       

Gwynedd         |8   |8   |7   |8   |6   |7        

Mid Glamorgan   |52  |53  |58  |61  |51  |37       

Powys           |14  |22  |18  |20  |18  |18       

South Glamorgan |6   |9   |7   |9   |5   |5        

West Glamorgan  |17  |15  |9   |12  |2   |2        

<1> Data for 1988-1991 include children of all     

ages. Data for 1992 and 1993 include children aged 

5-16 years with statements of special educational  

needs only. Data include children being educated   

outside of the authority in which they are         

registered.                                        


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                 (iii) the LEA but                 

                 attending                         

                 non-maintained                    

                 special and                       

                 independent                       

                 schools<1>                        

                |1988|1989|1990|1991|1992|1993     

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

Clwyd           |3   |2   |4   |2   |8   |5        

Dyfed           |10  |16  |8   |12  |21  |21       

Gwent           |36  |45  |56  |69  |32  |41       

Gwynedd         |8   |8   |7   |8   |6   |7        

Mid Glamorgan   |52  |53  |58  |61  |51  |37       

Powys           |14  |22  |18  |20  |18  |18       

South Glamorgan |6   |9   |7   |9   |5   |5        

West Glamorgan  |17  |15  |9   |12  |2   |2        

<1> Data for 1988-1991 include children of all     

ages. Data for 1992 and 1993 include children aged 

5-16 years with statements of special educational  

needs only. Data include children being educated   

outside of the authority in which they are         

registered.                                        


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                 (iii) the LEA but                 

                 attending                         

                 non-maintained                    

                 special and                       

                 independent                       

                 schools<1>                        

                |1988|1989|1990|1991|1992|1993     

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

Clwyd           |3   |2   |4   |2   |8   |5        

Dyfed           |10  |16  |8   |12  |21  |21       

Gwent           |36  |45  |56  |69  |32  |41       

Gwynedd         |8   |8   |7   |8   |6   |7        

Mid Glamorgan   |52  |53  |58  |61  |51  |37       

Powys           |14  |22  |18  |20  |18  |18       

South Glamorgan |6   |9   |7   |9   |5   |5        

West Glamorgan  |17  |15  |9   |12  |2   |2        

<1> Data for 1988-1991 include children of all     

ages. Data for 1992 and 1993 include children aged 

5-16 years with statements of special educational  

needs only. Data include children being educated   

outside of the authority in which they are         

registered.                                        


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                 (iii) the LEA but                 

                 attending                         

                 non-maintained                    

                 special and                       

                 independent                       

                 schools<1>                        

                |1988|1989|1990|1991|1992|1993     

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

Clwyd           |3   |2   |4   |2   |8   |5        

Dyfed           |10  |16  |8   |12  |21  |21       

Gwent           |36  |45  |56  |69  |32  |41       

Gwynedd         |8   |8   |7   |8   |6   |7        

Mid Glamorgan   |52  |53  |58  |61  |51  |37       

Powys           |14  |22  |18  |20  |18  |18       

South Glamorgan |6   |9   |7   |9   |5   |5        

West Glamorgan  |17  |15  |9   |12  |2   |2        

<1> Data for 1988-1991 include children of all     

ages. Data for 1992 and 1993 include children aged 

5-16 years with statements of special educational  

needs only. Data include children being educated   

outside of the authority in which they are         

registered.                                        

Private Capital

Ms Harman : To ask the Secretary of State for Wales if he will list those public investment projects within his Department's responsibility which have attracted private capital and have been commenced since the 1992 autumn statement.

Mr. Redwood : Private finance forms a significant part of many Welsh Office programmes. The total for 1993-94 is estimated to be £278 million. Details of projects commenced since November 1992 are not readily available. Examples of projects currently in hand or in prospect include :

Croesfoel flyover on A483 (design and build).

New community development, Cefn yr Hendy, near Llantrisant. Patient hotel, Princess of Wales Hospital, Bridgend.

Multi-storey car park, UHW Cardiff.

Microwave incinerator--Pembrokeshire NHS Trust.

Redevelopment at Brynhyfryd Estate, Llangennech.

NCM Credit Insurance Offices, Cardiff Bay.


Column 112

Education Funding

Dr. Wright : To ask the Secretary of State for Wales if he will publish a table showing the projected expenditure for each year to 1995-96, in 1992-93 prices, for (i) the Further Education Funding Council for Wales, (ii) the Higher Education Funding Council for Wales and (iii) the Schools Funding Council for Wales.

Sir Wyn Roberts : Provision for the financial year 1993-94 and planning figures for the financial years 1994-95 and 1995-96 were notified to the Further and Higher Education Funding Councils for Wales in December 1992 and January 1993 respectively. The details are as follows :


£ million                                                                   

                                            |1993-94|1994-95|1995-96        

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

Further Education Funding Council for Wales |143.260|160.924|168.436        

Higher Education Funding Council for Wales  |178.975|189.958|193.013        

These figures are in cash. At 1992-93 prices the values are as follows :


Column 113


£ million                                                                   

                                            |1993-94|1994-95|1995-96        

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

Further Education Funding Council for Wales |139.426|150.396|152.087        

Higher Education Funding Council for Wales  |174.185|177.531|174.278        

Provision for 1994-95 will be determined following decisions taken in this year's public expenditure settlement and the planning figure for 1995-96 will be revised as necessary in the light of those decisions.

No decision has been taken to establish a schools funding council for Wales.

NATIONAL FINANCE

EC Budget Discipline

Mr. Burns : To ask the Chancellor of the Exchequer what progress has been made in agreeing a new inter-institutional agreement on budget discipline with the European Parliament.

Sir John Cope : The Edinburgh European Council of 11-12 December 1992 concluded :

"the Inter-Institutional Agreement (IIA) for 1988-1992 was a positive development and hopes that the agreement can be re-established on terms ensuring strict budgetary discipline and a smooth passage of the annual budgetary discussions. It calls upon the Council subject to acceptable terms being attainable, to reach agreement with the Commission and European Parliament on a revised IIA."

Since Edinburgh, discussions have taken place between the Council-- represented by the presidency--the Commission and the European Parliament with a view to fulfilling the Edinburgh mandate. These discussions were difficult at times. However, the Belgian presidency has recently succeeded in negotiating a satisfactory agreement. This was endorsed by the Council at the Foreign Affairs Council on 4 October-- Official Report, 19 October 1993, columns 206-7 --and the informal meeting of ECOFIN on 9 October-- Official Report, 18 October, column 15 --and by the European Parliament at its plenary session on 27 October. The agreement was signed at the recent Special Foreign Affairs Council. A copy of the text has been placed in the Library. The IIA is a political, but not legally binding, agreement which clarifies the Community's budgetary procedure. Under the treaty, the Council and the European Parliament have joint responsibility for deciding the Community budget on the basis of proposals from the Commission. The IIA sets out the way the three institutions will exercise their responsibilities in accordance with the treaty, and respecting the revenue ceilings which are laid down in the own resources decision. In particular, it provides for the annual Community budget to be set in the context of a multi-annual financial framework. This allows a more orderly development of spending priorities than would be possible if the budget were agreed one year at a time without reference to a longer-term plan.

Offshore Trusts

Mr. Mandelson : To ask the Chancellor of the Exchequer if he will list those cases brought before the courts by the Commissioners for the Inland Revenue in relation to offshore trusts between 1985 and 1992.


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Mr. Dorrell : The cases were as follows : (in re Clore No. 3) Commissioners of the Inland Revenue and Stype Investments--1985 STC 394, Minden Trust (Caymen) Ltd. and Commissioners of the Inland Revenue--1985 STC 758, Commissioners of the Inland Revenue and Brackett--1986 STC 521, Dawson and Commissioners of the Inland Revenue--1989 STC 473, Montagues Trust Company (Jersey) Ltd. and Commissioners of the Inland Revenue--1989 STC 477, Jones and Lincoln-Lewis--1991 STC 307, and Marshall and Kerr--1991 STC 686). All references are to Simons tax cases.

Mr. Mandelson : To ask the Chancellor of the Exchequer if he will list those occasions between October 1992 and October 1993 on which he formally communicated concerning the externally held sterling balances with (a) committees of the Commonwealth, (b) the division of the International Monetary Fund dealing with offshore balances and (c) the World bank division dealing with offshore currency holdings.

Mr. Nelson : I have made no such communication.

Mr. Mandelson : To ask the Chancellor of the Exchequer what is his policy with regard to institutions and bodies which advertise and offer advice on offshore tax avoidance and who bid for Government business ; and if he will make a statement.

Mr. Dorrell : Government Departments seek to ensure that there are no matters which would make it inappropriate for them to have business dealing with particular firms.

The provision by such a firm of tax planning advice, the adoption of which would be within the confines of tax law, would not in general be regarded as such a matter.

Mr. Mandelson : To ask the Chancellor of the Exchequer what specific steps the Inland Revenue has taken to investigate untaxed payments from abroad to unincorporated bodies in the United Kingdom.

Mr. Dorrell : Where appropriate, the Inland Revenue makes inquiries, using its powers to gather relevant information, in order to investigate payment from abroad to unincorporated bodies.

Mr. Mandelson : To ask the Chancellor of the Exchequer if he will place in the Library those reports he has had from the European Commission relating to offshore funds since 1 January 1991 ; and if he will make a statement.

Mr. Dorrell : So for as I am aware, no such reports have been published.

Capital Gains Tax

Mr. Mandelson : To ask the Chancellor of the Exchequer (1) what studies he has made into the impact on United Kingdom domiciled companies of the capital gains-free regime available to investors from abroad when they make capital disposals ; and if he will place such studies in the Library ;

(2) what studies he has made into the effect on United Kingdom industrial domestic capital investment of repatriated tax-free offshore capital gains ; and if he will place any such studies in the Library.

Mr. Dorrell : We have made no such studies.


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Income Tax

Mr. Betts : To ask the Chancellor of the Exchequer if he will list the reliefs and exemptions on income tax ; and what will be the cost of each to the Exchequer (a) in 1993-94 and (b) in 1994-95.

Mr. Dorrell : Estimates of the cost of income tax reliefs and exemptions for 1993-94 are available in table 9 of the "Tax Ready Reckoner and Tax Reliefs" booklet published by HM Treasury in July. Estimates for 1994-95 will be published next summer.

Mr. Dewar : To ask the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Wallasay (Ms Eagle) 16 July, Official Report, column 700, giving estimates for 1994-95 and for a full year.

Mr. Dorrell : Latest available estimates from the 1991-92 survey of personal incomes projected to 1994-95 are given in the following table. For 1994-95 it was announced in the March Budget that from 6 April 1994 mortgage interest relief and the married couple's and related allowances would be restricted to 20 per cent. and so these effects are incorporated into the base and excluded from the table. No account has been taken of possible behavioural changes resulting from the restrictions and figures for the major allowances and reliefs show the yield from restricting each allowance or relief separately. If two or more were restricted the total yield would be greater than the sum of figures for individual allowances. It is not


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possible to provide estimates of the first- year effects as the yield would depend on the administrative arrangements which implemented the changes.


£ million                                                                                                                            

                                   Estimated                                                                                         

                                   full-year yield of                                                                                

                                   restriction to                                                                                    

                                  |basic rate                      |20 per cent.                                                     

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

All allowances and reliefs        |2,420                           |7,350                                                            

Personal allowance                |(excluding age-related addition)|1,420                                                            

Age-related personal allowance<1> |0                               |120                                                              

Pension contribution reliefs<2>   |620                             |1,230                                                            

<1> The higher level of age-related personal allowance given to those aged 65 and over, subject to the income limit.                 

<2> Employees' contributions to occupational pension schemes and contributions to personal pensions including retirement annuity     

premia and free-standing additional voluntary contributions.                                                                         

Mr. Dewar : To ask the Chancellor of the Exchequer if he will update the answer to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) 11 January, Official Report, column 546, giving estimates for 1994-95, and including estimates of the effects of widening the 20 per cent. band of tax.

Mr. Dorrell : The effects of the various changes to income tax and child benefit on a married man with two children are shown in the table. Each of the changes would cost £1.8 billion a year ; that is the cost in a full year of a 1p cut in the basic rate of income tax. Estimates are based on projections of the 1991-92 survey of personal incomes.


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Increase in income after tax<1> (£ per week) compared with indexation<2> in 1994-95 for a    

married man<3> with two children                                                             

                                                      Multiple of                            

                                                      average earnings<4>                    

                                                     |"   |3/4 |1   |1"  |2   |5   |10       

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

Increase derived from                                                                        

(i)1p cut in basic rate                              |0.63|1.57|2.51|4.08|4.08|4.08|4.08     

(ii)8.8 per cent. increase in personal allowance     |1.62|1.62|1.62|2.31|2.31|2.31|2.31     

(iii) increase in child benefit                                                              

(a)£3.75 per week per child<5>                       |7.50|7.50|7.50|7.50|7.50|7.50|7.50     

(b) £2.55 per week per child<6>                      |5.10|5.10|5.10|5.10|5.10|5.10|5.10     

(iv) £1,900 increase in width of 20 per cent.   band |2.29|2.29|2.29|2.29|2.29|2.29|2.29     

Disregarding any change to entitlement to social security income--related benefits except in item (iii)b.

Calculations based on the standard assumption that 1993-94 allowances and the basic rate limit have been indexed by 1.8 per cent. with the lower rate band increased to £3,000 as announced in March 1993.

Assumed to have no tax reliefs and allowances other than the personal allowance and the married couple's allowance.

Average earnings assumed to be £376.10 per week.

Assuming no change in income support and family credit children's rates.

Ass2 eMr. Mandelson : To ask the Chancellor of the Exchequer how much tax for 1992 has been remitted or written off as irrecoverable ; and how much of this is PAYE contributions.

Mr. Dorrell : The amount of tax that has been remitted or written off as irrecoverable for 1992 is as follows :


Year                |Amount in thousands                    

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

1992                |1,694,246                              

The amount of this that relates to PAYE contributions is as follows :


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Year                |Amount in thousands                    

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

1992                |381,172                                

Mr. Dewar : To ask the Chancellor of the Exchequer if he will update the answer of 25 February, Official Report, column 682 on the tax liabilities of taxpayers in different income bands, giving figures for 1993 -94 and estimates for 1994-95 based on the assumption of statutory indexation and including measures already announced in the 1993 Budget.

Mr. Dorrell : Latest estimates of the average reductions in income tax and national insurance contribution liabilities in 1993-94 and in 1994- 95, assuming statutory indexation and inclusion of measures already announced,


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compared with liabilities under an indexed 1987-88 regime are in the table. An equivalent assumption has been made about indexation of the national insurance regime for 1994-95. The 1987-88 income tax regime has been indexed to 1993-94 and 1994-95 by reference to the statutory formula and allowing for independent taxation.


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