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Written Answers to Questions
Thursday 2 December 1993
NATIONAL FINANCE
Pensions
Mr. Bowden : To ask the Chancellor of the Exchequer (1) how much of the total amount of money raised by measures to restrict the amount of tax which can be reclaimed by a pension fund introduced in the last Budget will be paid by members of money purchase occupational schemes in the form of a reduction in the assets available to purchase a pension ;
(2) how much of the total amount of money raised by measures introduced in the last Budget, to restrict the amount of tax which can be reclaimed by a pension fund, will be paid by employers in the form of additional contributions ;
(3) how much of the total amount of money raised by measures to restrict the amount of tax which can be reclaimed by a pension fund introduced in the last Budget will be paid by individuals paying additional voluntary contributions into occupational schemes in the form of a reduction in assets available to purchase a pension ; (4) how much of the total amount of money raised by measures introduced in the last Budget, to restrict the amount of tax which can be reclaimed by a pension fund, will be paid by pension funds in the form of a reduction in assets ;
(5) how much of the total amount of money raised by measures to restrict the amount of tax which can be reclaimed by a pension fund introduced in the last Budget will be paid by holders of personal pensions in the form of a reduction in the assets available to purchase a pension.
Mr. Dorrell : The impact of the changes in the taxation of dividends announced in the March Budget on contributions to, and the assets of, pension funds will depend upon a wide range of factors including future rates of return on investments, earning levels and the existing levels of assets and liabilities.
Mr. Bowden : To ask the Chancellor of the Exchequer how much tax will be raised in a full tax year by the measure introduced in the March Budget restricting the amount of tax which can be reclaimed by a pension fund.
Mr. Dorrell : The overall Exchequer yield from the changes in the taxation of dividends announced in the March Budget is estimated to be £900 million in 1995-96 and about £1 billion a year subsequently.
Mr. Bowden : To ask the Chancellor of the Exchequer (1) what discussions his officials have had with officials in the Department of Social Security on the extent to which the tax changes affecting pension funds introduced in the March Budget are likely to affect the number of people relying on various forms of private pension provision ;
(2) what discussions his officials have had with officials in the Department of Social Security on the extent
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to which the tax changes affecting pension funds introduced in the March Budget are likely to affect the numbers contracting out of SERPS.Mr. Dorrell : Regular discussions take place between officials of my Department and Department of Social Security officials on a wide range of topics affecting pension funds.
Mr. Bates : To ask the Chancellor of the Exchequer what discussions his officials had with officials of the Department of Social Security before changing the taxation of the income of pension funds in the March Budget.
Mr. Dorrell : The potential effects of changes to the taxation of dividends announced in the March Budget were taken fully into account in developing the proposals. Issues affecting pensions are the subject of regular discussions between my officials and those of the Department of Social Security.
Parliamentary Questions
Mr. Redmond : To ask the Chancellor of the Exchequer how the current cost threshold for answering parliamentary questions is calculated.
Mr. Dorrell : The threshold is set at a level which is eight times the average direct cost of staff involved in answering written parliamentary questions. The average direct cost is updated annually by indexation. The cost threshold is increased in £50 steps, rounded upwards.
Tax Credits
Mr. George : To ask the Chancellor of the Exchequer what representations he has received from the National Association of Pension Funds about the effects of further reductions in the value of tax credits on dividends payable by United Kingdom companies to United Kingdom resident or other non-resident shareholders ; and if he will make a statement.
Mr. Dorrell : The National Association of Pension Funds has written to my right hon. and learned Friend, and I met representatives of the association on 27 October.
Corporate Tax Fraud
Mr. Redmond : To ask the Chancellor of the Exchequer what plans he has to increase penalties for corporate tax fraud.
Mr. Dorrell : The Government have no such plans. We believe the existing system of tax-geared penalties to be quite adequate.
Value Added Tax
Mrs. Roche : To ask the Chancellor of the Exchequer, pursuant to his answer of 26 November on payments by the VAT commissioners, what was the value of the VAT payable orders gone astray since 1 July 1988 subsequently recovered.
Sir John Cope : Of the total sum of £360,638, reported as gone astray in the previous answer £237,624.11 had been recovered as at 30 November 1993. The sums still outstanding continue to be subject to any possible further recovery action.
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Mrs. Roche : To ask the Chancellor of the Exchequer, pursuant to his answer of 26 November, Official Report, column 273 , what inquiries he has instituted as to why traders do not take advantage of electronic transfer ; and if he will make a statement.
Sir John Cope : Customs ask traders to provide bank account details on first registration, by an annual mailshot to verify registration details and when officers carry out visits to their premises. The option of payment by electronic transfer or by payable order can be helpful to business, but the choice of method is a commercial decision for the trader.
Inquiries and general feedback to Customs indicate that a proportion of those who choose to receive payable orders do so to enable them to retain control over the sum, both as to destination and timing.
Government Car Service
Mr. Alan Williams : To ask the Chancellor of the Exchequer what is the annual cost to the Department of the car service for Ministers ; and how many vehicles are involved.
Sir John Cope : The annual cost to the Treasury for use of Government car service cars by its Ministers in financial year 1992-93 was £270,282. Five cars were allocated to Treasury Ministers on long-term hire and are available for other official use within the Treasury when not required by Ministers.
LORD CHANCELLOR'S DEPARTMENT
Legal Aid
Mr. Sweeney : To ask the Parliamentary Secretary, Lord Chancellor's Department what plans he has regarding future arrangements for the grant of criminal legal aid in the magistrates courts ; and if he will make a statement.
Mr. John M. Taylor : Decisions on the grant or refusal of legal aid in criminal cases brought in the approximately 600 magistrates' courts in England and Wales are an integral part of procedures which, in the interests of the liberty of the subject, have to be as expeditious as possible. The Legal Aid Act 1988 vests the function of deciding in the courts themselves, but gives me the power to transfer it to the Legal Aid Board.
The evidence continues to indicate that, under the present arrangements, the Lord Chancellor cannot be certain that the existing regulations governing the grant of legal aid are being applied sufficiently rigorously, in particular in determining the financial eligibility of applicants. This has led the Comptroller and Auditor General repeatedly to qualify my Department's appropriation account because of material doubt whether this category of legal aid spending is regular.
In no circumstances can any irregularity in dispensing public money be acceptable, and the Lord Chancellor will take every available step to ensure proper safeguards consistent with the due administration of justice. In addition to the guidance issued last year, the Lord Chancellor has made changes in the regulations, with effect from September 1993, to clarify and strengthen the duty on justices clerks to satisfy themselves of an applicant's means before granting legal aid. In addition,
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with the help of the Justices Clerks Society and the Legal Aid Board, the Lord Chancellor is considering whether the previous guidance on the "interests of justice" criteria requires to be revised. The impact of these measures will be closely monitored. In January 1992, the Lord Chancellor invited the Legal Aid Board to consider whether, in the interests of making decisions on the grant of criminal legal aid in the magistrates courts more uniform and systematic, I should transfer this function from the courts to the board. The board reported earlier this year that it would be ready to assume responsibility if certain changes were made in the present scheme, but that it could not do so until 1995 at the earliest. In consultations on the board's report, reservations were expressed about some of the details, while other aspects commanded widespread support.Transferring responsibility for the grant of criminal legal aid to the Legal Aid Board offers the advantage of greater consistency in decision- making. However, there could be countervailing risks to the speed and efficiency of criminal procedures. As a matter of policy, I feel bound to take these risks seriously, and I am not at present satisfied that they are outweighed by the advantage.
However, if the current measures do not achieve an acceptable result, I will give further consideration to a transfer to the board. At the same time, I will consider any identifiable alternative measures, with a view to achieving the best practicable balance between speed of decision-making and assured regularity in the handling of public money.
TRANSPORT
London Underground (Power Failures)
Mr. Raynsford : To ask the Secretary of State for Transport if he will publish a table listing the number of occasions on which the London Underground service has been affected by a power failure in the past five years in each case indicating the number of lines, train services and passengers affected and the length of time during which the service was interrupted ; and whether or not passengers had to be evacuated from any part of the system.
Mr. Norris : Over the past five years London Underground has experienced one other significant power failure, at Charing Cross station on the morning of 19 October 1992. As a result of the failure of the local station power supply, the station was evacuated and remained closed for the rest of the day, reopening at the start of service on 20 October. All Jubilee line trains were terminated at Green Park, and Bakerloo and Northern line trains did not stop at Charing Cross. There are no figures available for the number of passengers directly affected.
Mr. Raynsford : To ask the Secretary of State for Transport what estimate he has been given of the theoretical risk of simultaneous failure of all power supplies to the London Underground system.
Mr. Norris : An independent risk analysis report has estimated the risk of simultaneous loss of Lots Road and Greenwich generating stations and the Neasden bulk supply point to be one in 3,378 years.
Mr. Raynsford : To ask the Secretary of State for Transport how many passengers on the London
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Underground were affected by the power failure on 24 November ; and what proportion of the total number of daily users of the underground service this represents.Mr. Norris : London Underground has provided the following information :
300,000 passengers were affected by the morning failure, representing 12 per cent. of daily users.
20,000 passengers were evacuated from trains stalled between stations--in tunnel or in the open--due to the morning failure, representing 0.8 per cent. of daily users.
150,000 passengers were affected by the evening failure, representing 6 per cent. of daily users.
2,000 passengers were evacuated from trains stalled between stations--in tunnel or in the open--due to the evening failure, representing 0.08 per cent. of daily users.
Mr. Raynsford : To ask the Secretary of State for Transport whether (a) the Lots Road or (b) Greenwich power station reserve for London Underground were called upon on 24 November ; and whether either failed.
Mr. Norris : I understand from London Underground that there was no failure of the basic power supply system from the two generating stations. I am informed that the incident on 24 November was caused by the malfunctioning of equipment designed to protect the high-voltage system from thermal danger in the event of a fault.
Mr. Raynsford : To ask the Secretary of State for Transport if he will list the lines affected and estimate the number of train services delayed as a consequence of the power failure on the London Underground on 24 November.
Mr. Norris : The latest information from London Underground on lines and train services affected as a consequence of the power failure on 24 November is as follows :
Central Line
08 : 00--16 : 15. No service east of Marble Arch ; 80 per cent. of services affected.
Circle and Hammersmith and City Lines
08 : 00--13 : 30. No service between Edgeware Road and Moorgate ; 50 per cent. of services affected.
District Line
07 : 45--13 : 30. No service between Embankment and Barking ; 20 per cent. of services affected.
East London Line
08 : 00--11 : 00. No service.
Metropolitan Line
08 : 00--13 : 30. No service between Baker Street and Moorgate ; 10 per cent. of services affected.
At 17 : 33, following restoration of eastern Central line services there was a further power failure affecting both the Central and the District lines. Twenty per cent. of District line services were affected and 80 per cent. of Central line services. Normal service was not resumed on the Central line until the morning of 30 November. Between 25 and 29 November the Central line was able to achieve an average of 38 per cent. of its normal scheduled mileage.
Mr. Raynsford : To ask the Secretary of State for Transport what information he has about the age and state of repair of the cable used to transmit power to the London underground ; and what advice he has received about the likelihood of any future repetition of the power failure which occurred on the underground on 24 November.
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Mr. Norris : I have asked London Transport for a full report on the cause of the power failure on 24 November. Until I have received that report, it would be inappropriate for me to comment.
Maritime Safety
Ms Walley : To ask the Secretary of State for Transport what representations he has received regarding a draft resolution on the application of the competition rules to maritime transport proposed by the President of the Council of Ministers ; and if he will make a statement.
Mr. MacGregor : I received representations on the proposed draft resolution on competition and maritime transport both from individual United Kingdom shippers and from organisations representing shippers and shipowners ; those representations were carefully considered. The Council of Ministers meeting on 29 November decided not to proceed with the resolution.
Railtrack
Mr. Pike : To ask the Secretary of State for Transport when he last met the management of Railtrack to discuss levels of investment need in track and infrastructure in the west coast main line.
Mr. Freeman : I last met the chairman of Railtrack yesterday when it was announced that the modernisation of the west coast main line will be taken forward as a privately managed and financed investment as part of the private finance initiative.
Nuclear Waste
Ms Walley : To ask the Secretary of State for Transport what assessment he has made of the transport implications of the United Kingdom Government's abstention on the vote for a permanent world-wide ban on nuclear waste dumping at sea at the London convention meeting in November ; and if he will make a statement.
Mr. Norris : The United Kingdom is currently considering what declarations may need to be made to the International Maritime Organisation in respect of the resolution prohibiting the sea disposal of radioactive waste. The transport of radioactive materials, including radioactive waste, is a separate issue, subject to stringent international safety standards.
West Coast Main Line
Mr. Pike : To ask the Secretary of State for Transport when he last met the management of the west coast main line to discuss issues relating to investment.
Mr. Freeman : I last met the director of the west coast main line at the end of October.
Mr. Pike : To ask the Secretary of State for Transport what representations he has received regarding investment in the west coast main line during the last year ; and if he can give a breakdown as to the sources of such representations.
Mr. Freeman : I have received a large number of representations from hon. Members, local authorities and others on the need to modernise the west coast main line.
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The Government announced on 30 November that the modernisation of the west coast main line will be taken forward as a privately managed and financed investment as part of the private finance initiative.Biodiversity
Mr. Harvey : To ask the Secretary of State for Transport if he will make it his policy to ensure that the Government's biodiversity action plan will include an objective to avoid the loss of important biodiversity sites to transport developments.
Mr. Norris : The Government will consider the implications for biodiversity when formulating and reviewing transport policies and will ensure that biodiversity objectives are fully taken into account in the assessment of new transport infrastructure.
We have a long-standing policy of keeping transport infrastructure away from protected areas such as sites of special scientific interest, wherever possible.
Mr. Harvey : To ask the Secretary of State for Transport if the biodiversity action plan will allow for the re-routing of ships to avoid marine areas of special interest for wildlife.
Mr. Norris : The Government have already agreed with the International Maritime Organisation a number of routing measures to reduce the risk of oil pollution around the United Kingdom coast. An amended "Area to be Avoided" off the Shetland islands and new "Areas to be Avoided" off Orkney and around Fair Isle came into force on 28 November. Specific recommendations, most of which include prescribed routes, also came into force covering the Pentland firth, the Isles of Scilly, the Minch, the North channel, off Smalls and Grassholme channel, the Needles channel, the English channel and Dover strait and the Firth of Forth.
The European Community is currently identifying sensitive areas which are at high risk from maritime traffic and further measures may be proposed by the Commission to protect these areas.
Government Car Service
Mr. Alan Williams : To ask the Secretary of State for Transport what is the annual cost to the Department of the car service for Ministers ; and how many vehicles are involved.
Mr. MacGregor : The annual cost to the Department of the car service for Ministers is £286,000 for the financial year 1993-94. Five vehicles are involved.
Rail Privatisation
Mr. Wilson : To ask the Secretary of State for Transport who will be responsible for (a) setting targets and (b) paying compensation for non- fulfilment, in terms of the passengers charter, in the event of rail privatisation.
Mr. Freeman [holding answer 1 December 1993] : Each rail franchise agreement will set out the operating standards which franchisees will have to deliver and the incentives and penalties which will apply if performance exceeds or falls short of those standards. The setting of standards and the related incentive and penalty arrangements will be the responsibility of the franchising director acting within guidelines laid down by my right hon. Friend.
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M11
Mr. Cox : To ask the Secretary of State for Transport what proposals he has to provide a motorway service station on the M11 ; and if he will make a statement.
Mr. Key : The Department has secured planning clearance for a motorway service area at Birchanger adjacent to junction 8 of the M11 and has appointed Forte Welcome Break to construct it. Building work is now under way and the service area is due to open early in 1995.
Kingston upon Hull City Transport
Mr. Prescott : To ask the Secretary of State for Transport if he will make a statement about the ownership of Kingston upon Hull City Transport.
Mr. Leigh : To ask the Secretary of State for Transport if he will make a statement about the future of Kingston upon Hull City Transport Ltd.
Mr. Freeman : The Secretary of State has given formal consent to the sale of Kingston-upon-Hull City Transport Ltd, the bus company owned by the Hull city council, to Cleveland Transit Ltd. The new owners are to offer a 49 per cent. shareholding in the company to the employees.
Change of ownership takes place under the terms of section 75(3) of the Transport Act 1985, which allows authorities to sell their public transport companies with the consent of the Secretary of State. I wish the company success in the private sector.
Advertising
Mr. Grocott : To ask the Secretary of State for Transport how much his Department spends annually on (a) television advertising, (b) radio advertising and (c) press advertising ; and what were the corresponding figures for 1985 and 1979.
Mr. Norris : Figures are £,000s
|1993-94 |1992-93 |1985-86 |1979-80
-------------------------------------------------------
(a) TV |<1>5,155|5,467 |70 |4,141
(b) Radio |- |566 |858 |62
(c) Press |<1>15 |131 |834 |105
<1> Figures for 1993-94 are provisional
Motorway Charging
Mr. Duncan Smith : To ask the Secretary of State for Transport if he will make a statement about the Government's plans for taking forward motorway charging.
Mr. Macgregor : The Chancellor of the Exchequer said in his Budget speech that I would shortly be making a statement about motorway charging in the light of responses to the Green Paper, "Paying For Better Motorways", which I published last May with the Secretaries of State for Scotland and for Wales. The Green Paper considered how the introduction of direct charging for the use of our most important inter-urban roads could provide another source of finance to expand the network more quickly ; and how it could help to ensure that we make more efficient use of the network.
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Our aim was to stimulate an informed, wide- ranging debate. By far the most striking feature of the responses was the widespread acknowledgement among bodies representing industry and road users of the potential benefits of direct charging. An important effect of charging would be to provide another source of finance for improving the motorway network, so avoiding the congestion that will otherwise come with economic growth and increasing traffic. The motorway network carries 15 per cent. of all road traffic and 30 per cent. of heavy goods vehicle traffic. An effective network is an important contributor to our continued economic prosperity.As many respondents recognised, motorway charging could have other important advantages. It would provide the key to increasing private sector investment in the operation and expansion of the motorway network. It would make more efficient use of the network, for example by the use of pricing structures designed to spread peak period congestion. It would put the charges on those who actually use motorways rather than the near-50 per cent. of road users who rarely or never travel on the network. And it would improve the competitive position of rail and other forms of public transport for which users are already charged directly.
The Green Paper described three options for direct charging. The first was conventional tolling with toll plazas and booths of the sort found on estuarial crossings in this country and on motorways in a number of other countries. The Green Paper said that this option should be ruled out for existing motorways because of the land that would be required and the traffic delays which conventional tolling would itself cause. There was almost unanimous agreement with that decision.
The second option, suggested as a possible interim measure, was charging by means of a permit system of the sort currently used in Switzerland. The Government have decided that the benefits of such permits would not be sufficient to justify the likely costs of introducing them as an interim measure. We shall not therefore pursue this option.
The third option discussed in the Green Paper was fully electronic tolling, where vehicles using the motorway network would carry an electronic tag which would react to signals as the vehicles passed roadside beacons. Vehicles would not have to stop. The toll would be worked out automatically and would either be charged to the road user's account or deducted from a pre-paid smart card on the vehicle. It is clear from responses to the Green Paper that this is widely seen as the best way of introducing motorway charging in this country.
The technology for electronic tolling on the scale necessary for the British motorway network needs further development. The electronic tolling systems currently operating or being tested in the United States and in Europe would not fully meet the requirements here. In the light of the responses to the Green Paper, we have decided to launch immediately a major programme of research, development and trials to identify the capabilities of the existing technology and to draw up a specification for a motorway charging system. The first step will be to invite industry to demonstrate available technology. We shall then assess in detail the most promising systems, with trials on a specific stretch of motorway. On the basis of the many discussions I have had with manufacturers and organisations involved in electronic road charging here and abroad, I am convinced that there is a great deal of work being
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