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hope that an interim report on fraud, to include consideration of the United Kingdom initiative, would be ready for discussion at the June Council.

Gas Weapons

Mr. Cohen : To ask the Secretary of State for the Home Department if he will make a statement on proposals for gas weapons for use by the police ; what research has been done in this area and in respect of which chemicals ; what controls exist on the use of existing gas weapons ; and what plans he has to change them.

Mr. Charles Wardle : The Association of Chief Police Officers is considering the possible use of products containing the incapacitating inflammatory agent, oleoresin capsicum. My right hon. and learned Friend will consider this matter carefully, taking full account of extensive technical information provided by the Home Office police scientific development branch and advice from other Government departments, before any decisions are reached. The only chemical agent which police forces are currently permitted to use is CS irritant. The considerable research which has been undertaken into this agent was evaluated by the 1969-1971 inquiry into the medical and toxicological aspects of CS, reported in cmnds. 4173 and 4775. Police forces are permitted to use CS in extreme public order incidents where the chief officer of police judges such action to be necessary because of risk of loss of life or serious injury or widespread destruction of property ; or against armed besieged criminals or violently insane persons where a senior officer judges that not to use it would endanger lives. There are no current proposals to change arrangements relating to CS.

Drugs-related Offences (Nigerians)

Mr. Worthington : To ask the Secretary of State for the Home Department how many Nigerians are currently in prison in Britain for drugs- related offences ; how many are men and how many are women ; and what percentage of Nigerian women make up of the total female prison population in Britain.

Mr. Peter Lloyd : Responsibility for this matter has been delegated to the Director-General of the Prison Service, who has been asked to arrange for a reply to be given.

Letter from A. J. Butler to Mr. Tony Worthington, dated31 March 1994 :

The Home Secretary has asked me, in the absence of the Director General from the office, to reply to your recent Question asking how many Nigerians are currently in prison in Britain for drugs related offences ; how many are men and how many are women ; and what percentage of Nigerian women make up the total female prison population in Britain.

The latest available provisional information is for 31 December 1993. On that date 103 Nigerians (of whom 63 were male and 40 were female) were recorded centrally as being held in Prison Service establishments in England and Wales under sentence for a drugs offence which was the principal offence. On the same date 71 or 4.5 per cent. of the total female prison population in England and Wales were Nigerian women. Within the total prison population the type of offence was not recorded for about 6 per cent. of sentenced prisoners.


Column 947

Harold Martinez

Mr. Devlin : To ask the Secretary of State for the Home Department if he will make a statement about the application for asylum by Harold Martinez, a Colombian national.

Mr. Charles Wardle : Mr. Martinez's application was refused and his appeal against this decision was dismissed by both the special adjudicator and the Immigration Appeals Tribunal. In its determination of 4 March this year, the tribunal found that Mr. Martinez did not qualify for asylum as a refugee under the terms of the 1951 United Nations convention on the status of refugees, and that it would not therefore be a breach of that convention to return him to Colombia. However, the tribunal made an extra-statutory recommendation that Mr. Martinez be allowed to remain in the United Kingdom exceptionally. Although such recommendations are not binding on the Secretary of State, the tribunal's comments are being considered and a decision will be made shortly.

Illegal Drugs

Mr. Tony Lloyd : To ask the Secretary of State for the Home Department what assessment he makes of the effectiveness of his strategy to control illegal drugs ; and if he will make a statement on that strategy.

Mr. Maclean [holding answer 30 March 1994] : The Government's strategic framework for tackling drug misuse involves simultaneous action on the following fronts.

Educating our children on the dangers of drug misuse is a vital element. The national curriculum requires schools to teach aspects of health education, including aspects of drug misuse, and the National Curriculum Council has issued detailed guidance on health education to help schools plan comprehensive programmes for all pupils aged five to 16.

The Government are committed to ensuring that, both through the national curriculum and otherwise, schools will continue to equip young people with the knowledge, skills and attitudes that they need to promote their immediate and long-term good health.

Education is being backed up by anti-drugs publicity. Since 1985 the Department of Health has spent increasing amounts on national drug prevention, information and public education campaigns. Some £5 million is being spent in 1993-94 and independent evaluation has shown that the campaigns have succeeded in raising awareness of the problem.

There have also been innovative developments in the drugs prevention field. The drugs prevention initiative was launched in 1989 as a partnership between Government and the community to promote the prevention of drug misuse. Teams are now operating in 20 locations to mobilise local communities to stop young people and others at risk from drug taking and help them realise the harmful consequences. Many successful schemes are in place--the initiative has been involved in the funding of over 900 projects.

All this project work is being evaluated--some by independent researchers-- and the impact of the initiative as a whole is being assessed to determine the effectiveness of its approach and to encourage the widespread adoption of good practice.

The collective experience of the work of the 20 teams in their local community is being pulled together. This will


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provide valuable information about the kinds of approaches which can be effective in drugs prevention, and the factors which influence their effectiveness, on which future action can be based. Effective treatment and rehabilitation facilities for drug misusers are in place with £31 million allocated for drugs services in England and Wales in 1993-94.

In addition to all these measures for reducing the demand for drugs considerable effort is also being put in to reducing the supply through effective enforcement action. Police and customs continue to work hard to reduce the supply of drugs into the country with notable successes--recent seizures include 260 kg of cocaine in December and a consignment of 100 kg of cannabis in the London area.

We have made tough penalties available to the courts for use against drug traffickers--including up to life imprisonment for dealing in drugs such as heroin and cocaine.

United Kingdom laws for getting at the profits of drugs smugglers are among the toughest in the world. Legislation introduced in 1986 enables the courts to deprive drug traffickers of their profits and makes laundering of drugs money a criminal offence. Legislation has been strengthened, most recently in the Criminal Justice Act 1993. By the end of 1992 it is estimated that the courts had ordered the confiscation of drug trafficking proceeds totalling some £42.5 million.

All this comes together in a comprehensive anti-drugs strategy involving 10 Government Departments spending over £500 million a year. We have recognised the need, however, to review our strategy to ensure that the policies we are pursuing are correctly identified and are co-ordinated effectively. To this end, the establishment of the central drugs co- ordination unit was announced last December. One of the unit's main tasks is to work closely with Government Departments to ensure that drugs policies are planned, developed and implemented within a clear strategic framework. The unit's immediate task is to review our strategy on drugs and make recommendations for its improvement.

ATTORNEY-GENERAL

Brian Charrington Case

Mr. Fraser : To ask the Attorney-General if he has been invited to make submissions to the Thames Valley police officers investigating the conduct of the Brian Charrington case by Cleveland police force.

The Attorney-General : In the event of my being asked to assist such an investigation I would of course do so, but it is not my practice to comment on the operational aspects of a police investigation.

Proton Cars

Mr. Redmond : To ask the Attorney-General how many Proton cars were purchased by the Law Officers' Departments in each of the last 10 years for which information is available ; and at what cost.

The Attorney-General : None.


Column 949

Local Government Legislation

Mr. Vaz : To ask the Attorney-General if he will list the Acts of Parliament and Consolidation Acts that affect local government which have been introduced by his Department since 1990.

The Attorney-General : No Acts of Parliament, including consolidation Acts, affecting local government have been introduced by my Department since 1990.

Consultants

Mr. Austin Mitchell : To ask the Attorney-General whether he will provide a table showing the contracts currently being worked on for his Department by Coopers


Column 950

and Lybrand, Ernst and Young, Price Waterhouse, KPMG Peat Marwick, Grant Thornton, Robson Rhodes, Levy Gee, BDO Binder Hamlyn, Hacker Young, Pannell Kerr Forster and Stoy Hayward.

The Attorney-General : In respect of the Departments for which I have responsibility, the legal secretariat to the Law Officers and the headquarters office of the Crown Prosecution Service have no contracts with the named firms. CPS areas have devolved budgets and may occasionally engage firms of accountants, but the details of any contracts are not held centrally. The following table lists contracts entered into by the Treasury Solicitor's Department and the Serious Fraud Office.


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Department                              |Consultant                             |Task/case                                                                      

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

Treasury Solicitor's                    |BDO Binder Hamlyn                      |Design, development and installation of                                        

                                                                                |new accounting system                                                          

                                                                                                                                                                

Serious Fraud Office                    |Cooper and Lybrand                     |BCCI                                                                           

                                                                                |Letap Pharmaceuticals Ltd.                                                     

                                        |Ernst and Young                        |Brent Walker                                                                   

                                        |Price Waterhouse                       |Blackspur plc                                                                  

                                        |KPMG Peat Marwick                      |Polly Peck                                                                     

                                                                                |Maxwell                                                                        

                                        |Grant Thornton                         |Extra Special Vehicles                                                         

                                                                                |Castlegate                                                                     

Photocopies (Charges)

Mr. Bates : To ask the Attorney-General what is the current practice of prosecuting authorities in relation to charging for the provision of photocopies of unused material.

The Attorney-General : Different practices have developed among the prosecuting authorities as to the extent to which charges are levied, if at all, in respect of the supply of unused material in compliance with requests made by defence solicitors under paragraph 5 of the "Guidelines on Disclosure of Unused Material" issued by my predecessor in December 1981. Following recent developments in the case law relating to the nature and extent of the obligations on the prosecution to make disclosure, the position has been reviewed with the benefit of advice of Treasury Counsel. Counsel has advised that, where the prosecution is under a duty to provide copies of unused material as an integral part of its duty of disclosure, no charge can be made for such copies. That advice has been accepted and no further charges will therefore be levied by the prosecuting authorities ; this advice is also being drawn to the attention of those police forces which levy charges.

Prosecuting authorities will reimburse all charges which have been levied which can be substantiated if the costs involved have not already been the subject of reimbursement by either the legal aid fund or central funds. Announcements are to be made in professional journals inviting individuals and their legal advisers to register claims for reimbursement. The prosecuting authorities themselves are seeking to identify cases where a charge in excess of £100 was paid and will, in such cases, contact the solicitor concerned directly if no claim has already been submitted. The prosecuting authorities will make prompt repayment as soon as the claim is properly substantiated.


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Official Entertainment

Mr. Boyes : To ask the Attorney-General what was the total cost of official entertaining in the Law Officers' Departments in each year since 1990-91 ; if he will list the receptions held in each year at the Departments' expense ; and what was the cost of each reception.

The Solicitor-General : The total cost of official entertainment in the departments for which I am responsible in each year since 1990-91 is set out in the table below. Those figures are included in the running costs expenditure for each department and are published in the annual report. The entertainment budget is used for a variety of functions including receptions. Separate figures are not kept for individual functions.


                     |1990-91   |1991-92   |1992-93   |<2>1993-94           

                     |£         |£         |£         |£                    

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

Department                                                                  

Legal Secretariat to |Not                                                   

 the Law Officers    |available |7,000     |3,900     |4,700                

Treasury Solicitor's |Not                                                   

 Department          |available |2,700     |1,700     |2,100                

Government Property                                                         

 Lawyers Agency      |<1>-      |<1>-      |<1>-      |3,600                

Crown Prosecution                                                           

 Service             |14,700    |19,500    |20,700    |11,500               

Serious Fraud Office |7,500     |2,900     |3,700     |4,800                

<1>Figures have been rounded to the nearest hundred. The Government         

Property Lawyers Agency came into existence on 1 April 1993.                

<2>To date.                                                                 


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TREASURY

PAYE and National Insurance

Mr. Matthew Taylor : To ask the Chancellor of the Exchequer if he will list the amounts of PAYE and national insurance written off in each year since 1975 at current values and the cash figures for 1993 in the form of his answer of 3 November, Official Report, column 260 .

Mr. Dorrell : The amounts of PAYE and national insurance written off between 1975 and 1992 at current values are set out in the following table. The figure for the amount written off for 1993 is not yet available.


Year                 |PAYE amount in £    |Class I and IA NIC                       

                     |thousands at current|amount in £                              

                     |values              |thousands at                             

                                          |current levels                           

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

1975                 |n/a                 |n/a                                      

1976                 |n/a                 |n/a                                      

1977                 |n/a                 |n/a                                      

1978                 |n/a                 |n/a                                      

1979                 |n/a                 |n/a                                      

1980                 |23,295              |2,481                                    

1981                 |23,080              |2,338                                    

1982                 |27,677              |2,284                                    

1983                 |38,281              |2,631                                    

1984                 |53,880              |3,188                                    

1985                 |71,850              |3,405                                    

1986                 |88,540              |6,362                                    

1987                 |130,315             |11,987                                   

1988                 |177,057             |21,527                                   

1989                 |156,970             |19,322                                   

1990                 |126,886             |20,425                                   

1991                 |146,188             |23,393                                   

1992                 |393,039             |33,584                                   

Note: Separate figures for PAYE and National Insurance for the years 1975-1979 are  

no longer available in the form requested.                                          

Tax is written off when it cannot be collected--for example, because the taxpayer is insolvent. Similarly, it is on occasion necessary to remit tax which it would be unconscionable to collect--for example, because payment would cause gross hardship.

Inland Revenue Prosecution

Mrs. Anne Campbell : To ask the Chancellor of the Exchequer if he will list the number of prosecutions by the Inland Revenue in the financial years 1990-91, 1991-92 and 1992-93 by nature of offence, the number of convictions, the number of custodial or other sentences and the financial penalities levied.

Mr. Dorrell : Numbers of prosecutions and convictions, categorised by nature of offence, are given in the annual report of the board of Inland Revenue for 1992-93--appendix 1, table 6. Sentencing details are not recorded on the same basis. Financial penalties, chargeable under tax law, are not levied in respect of offences where convictions are secured.

Public Sector Debt

Dr. Lynne Jones : To ask the Chancellor of the Exchequer if he will give figures for (a) total United Kingdom public sector debt, (b) United Kingdom total public sector debt per head of population, (c) total United Kingdom public sector debt less that attributed to local


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authorities, (d) the current annual cost of servicing the debt in (c) and (e) the current annual cost per head of population of servicing the debt in (c) .

Mr. Nelson : The following table gives the information.


                                                          |£ billion          

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

Gross public sector debt (end-March 1993)                                     

Per head of population (£4,300)                           |249.6              

                                                                              

Gross debt of central government and public corporations                      

(end-March 1993)                                          |243.1              

                                                                              

Annual cost of servicing gross debt of central government                     

 and public corporations (1992-93)                        |17.4               

Per head of population (£300)                                                 

Capital Transfer Tax

Mr. Nicholas Brown : To ask the Chancellor of the Exchequer what is his estimate of the value of revenue from capital transfer taxes as a proportion of gross domestic product in (a) the United Kingdom and (b) each other OECD country for the latest year for which information is available.

Mr. Dorrell : United Kingdom capital transfer tax was replaced by inheritance tax for transfers on or after 18 March 1986. The table gives OECD data for all OECD countries for estate, inheritance and gift taxes, which broadly covers inheritance taxes, expressed as a proportion of GDP. The latest year for which complete information is available is 1991.


Country         |Estate, inheri-                

                |tance and gift                 

                |taxes as a                     

                |percentage of                  

                |GDP                            

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

Australia       |0.0                            

Austria         |0.1                            

Belgium         |0.0                            

Canada          |0.0                            

Denmark         |0.3                            

Finland         |0.2                            

France          |0.6                            

Germany         |0.1                            

Greece          |0.4                            

Iceland         |0.1                            

Ireland         |0.2                            

Italy           |0.0                            

Japan           |0.6                            

Luxembourg      |0.2                            

Netherlands     |0.2                            

New Zealand     |0.1                            

Norway          |0.1                            

Portugal        |0.2                            

Spain           |0.1                            

Sweden          |0.1                            

Switzerland     |0.3                            

Turkey          |0.0                            

United Kingdom  |0.2                            

United States   |0.3                            

Source: Revenue Statistics for OECD countries   

1965-1992.                                      

VAT

Mr. Jim Cunningham : To ask the Chancellor of the Exchequer what was the total yield from VAT in 1978-79 ; and what is the total estimated yield for 1994-95.


Column 953

Sir John Cope : Published figures show £4.8 billion and £43.1 billion respectively.

Mr. Sheerman : To ask the Chancellor of the Exchequer (1) what steps he is taking to ensure that mainland European flower growers who sell direct to British florist outlets pay the appropriate levels of value added tax ;

(2) what steps he is taking to ensure that British flower growers do not face unfair competition from growers on the mainland of Europe who sell in British outlets and evade payment of value added tax.

Sir John Cope : Supplies of flowers made by businesses from another member state are subject to VAT under the usual conditions, either in this country or in the country of origin if the total is below the threshold, depending on the circumstances, and the normal controls apply.

Mr. Jim Cunningham : To ask the Chancellor of the Exchequer if he will estimate what the nation's tax burden as a percentage of gross domestic product will be in 1998-99 ; and what this figure was in 1978-79.

Mr. Dorrell : I refer the hon. Member to the answer I gave him on 23 February, Official Report, Column. 274.

Mr. Jim Cunningham : To ask the Chancellor of the Exchequer how much he estimates will be raised by the Treasury in (a) 1994-95, (b) 1995-96 and (c) 1996-97 from the freezing of personal income tax allowances.

Mr. Dorrell : The information was given in table 4.1 of the "Financial Statement and Budget Report 1994-95" published on 30 November 1993.

Mr. Jim Cunningham : To ask the Chancellor of the Exchequer how many people will be affected by his decision, announced in the last Budget, to reduce the married couple's income tax allowance to 15 per cent. in 1994- 95.

Mr. Dorrell : I refer the hon. Member to the reply given to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 14 December 1993, Official Report , columns 579-80 .

Ms Harman : To ask the Chancellor of the Exchequer (1) what would be the reduction in tax payable resulting from full indexation of the additional personal allowance applied at the standard or higher rate for (a) a lower-rate taxpayer, (b) a basic-rate taxpayer and (c) a higher-rate taxpayer in (i) 1994-95 and (ii) 1995-96 ; and what would be the gross revenue cost of these measures ;

(2) what would be the reduction in tax payable resulting from full indexation of the widow's bereavement allowance applied at the standard or higher rate of relief for (a) a lower-rate taxpayer, (b) a basic-rate taxpayer and (c) a higher-rate taxpayer in (i) 1994-95 and (ii) 1995-96 ; and what would be the gross revenue cost of these measures.

Mr. Dorrell [holding answer 24 March 1994] : The table shows the typical gain for each type of taxpayer if the 1993-94 levels of the allowances had been indexed and they remained available at the taxpayer's marginal rate.


Column 954


Difference in tax between 1993-94 indexed regime and     

proposed                                                 

regimes in 1994-95 and 1995-96                           

                       £ per year                        

                     |Additional |Widow's                

                     |personal   |bereavement            

                     |allowance  |allowance              

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

1994-95                                                  

Lower rate taxpayer  |+8         |+8                     

Basic rate taxpayer  |+96        |+96                    

Higher rate taxpayer |+360       |+360                   

                                                         

1995-96                                                  

Lower rate taxpayer  |+106       |+106                   

Basic rate taxpayer  |+197       |+197                   

Higher rate taxpayer |+470       |+470                   


Revenue cost in a full year of 1993-94                

indexed regime compared with proposed regimes         

                                £ million             

                              |1994-95|1995-96        

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

Additional personal allowance |60     |130            

Widow's bereavement allowance |10     |20             

Ms Harman : To ask the Chancellor of the Exchequer (1) what would be the reduction in tax payable resulting from full indexation of relief on the married couple's allowance at the standard or higher rate for those aged over 65 years to pensioner couples paying tax at (a) the lower rate, (b) the basic rate and (c) the higher rate if they are (i) 65 to 74 years and (ii) 75 years and over ; and what would be the gross revenue cost of these measures ;

(2) what would be the reduction in tax payable resulting from full indexation of relief on the married couple's allowance at standard and higher rate for taxpayers aged over 65 years at (a) the basic rate and (b) the higher rate if they are (i) 65 to 74 years and (ii) 75 years and over ; and what would be the gross revenue costs of these changes.

Mr. Dorrell [holding answer 24 March 1994] : The table shows the typical gain or loss for taxpayers in each age group if the 1993-94 levels of the allowances had been indexed and they remained available at the taxpayer's marginal rate. The gain or loss depends on the marginal tax rate of the spouse receiving the allowance, so the effect for a couple will be the same regardless of the tax liability of the spouse without the allowance.


Difference in tax between 1993-94 indexed regime                          

and proposed regime for 1994-95                                           

                          |Lower rate |Basic rate |Higher rate            

                          |taxpayer   |taxpayer   |taxpayer               

                          |£ per year |£ per year |£ per year             

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

Married couple's allowance                                                

for those aged 65 to 74   |-30        |+96        |+473                   

                                                                          

Married couple's allowance                                                

for those aged 75 or over |-30        |+98        |+481                   

The Exchequer effect would be broadly revenue neutral for the full year 1994-95.

Governor of the Bank of England

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer if the views expressed by the Governor of the Bank of England at meetings of EEC central bankers on


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fiscal, monetary and exchange rate policy represent the views of Her Majesty's Government ; and to what extent they are recognised as such by other central bankers and their Governments.

Mr. Nelson : In accordance with article 8 of the statute of the European Monetary Institute, the Governor, representing the Bank of England at meetings of the EMI council, acts according to his own responsibilities. Fiscal, monetary and exchange rate policy in the United Kingdom are decided by Ministers. The extent, if any, to which other central banks and their Governments recognise the views of the Governor as representing those of the United Kingdom Government is a matter for them.

Capital Losses

Mr. Austin Mitchell : To ask the Chancellor of the Exchequer if he will make a statement on the reasons underlying the indexation of capital losses for capital gains tax purposes and the Government's purposes in abolishing it.

Mr. Dorrell : Indexation of losses has given rise to widespread tax avoidance, including the creation of artificial schemes which have created substantial allowable losses when no economic loss has been incurred. Unchecked, this abuse would have led to the loss of some £3 billion a year by the end of the decade. The current Finance Bill contains provisions which restrict indexation relief for capital losses.

Tax Yield

Mr. Maxton : To ask the Chancellor of the Exchequer what is his estimate of the tax yield from denying tax relief to pension scheme surpluses.

Mr. Dorrell : The amount of tax liable on refunds of surplus funds to employers is provisionally estimated to be £70 million in 1993-94.

Occupational Pensions

Mr. Maxton : To ask the Chancellor of the Exchequer if he will estimate the total number of people in receipt of occupational pensions and the average value of these pensions by decile group together with the average value of tax liability of each decile.

Mr. Dorrell : Latest available estimates using the 1991-92 survey of personal incomes are given in the table. The information is based on administrative records and excludes some individuals whose income is below the tax threshold.


Decile group of      |Number of           |Average             |Average                                  

people in                                                                                                

receipt of an        |people in           |amount of           |income tax                               

occupational pension |each decile         |occupational        |liability<1>                             

ranged by amount of  |(thousands)         |pension             |£                                        

occupational pension                      |£                                                             

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

Bottom 10 per cent.  |530                 |270                 |20                                       

10-20 per cent.      |530                 |620                 |50                                       

20-30 per cent.      |530                 |1,000               |80                                       

30-40 per cent.      |530                 |1,410               |140                                      

40-50 per cent.      |530                 |1,880               |210                                      

50-60 per cent.      |530                 |2,500               |290                                      

60-70 per cent.      |530                 |3,450               |510                                      

70-80 per cent.      |530                 |4,820               |730                                      

80-90 per cent.      |530                 |6,950               |1,320                                    

Top 10 per cent.     |530                 |13,600              |3,270                                    

                     |-------             |-------             |-------                                  

Total                |5,300               |3,650               |660                                      

<1> The figures are the tax liability on occupational pensions assuming that they represent the top      

slice of taxable income.                                                                                 

Tax Increases

Ms Jowell : To ask the Chancellor of the Exchequer what plans he has to compensate typical families, with two children and one spouse working on average male earnings, following the increases in income tax and national insurance which come into effect in April.

Mr. Dorrell : Average earnings have increased by over 40 per cent. since 1978-79. This is worth £83 a week in 1993-94 prices.

Income Tax

Mr. Burns : To ask the Chancellor of the Exchequer if he will make a statement about the rules for the introduction of the current year basis of assessment for income tax.

Mr. Dorrell : The Inland Revenue has today published, in a press release, details of the rules that the Government intend to introduce in the next Finance Bill concerning the anti-avoidance provisions for the transition from the preceding year basis to the current year basis.

The transitional rules are set out in schedule 19 to the 1994 Finance Bill. They apply to businesses that commence before 6 April 1994 and to other sources from which income first arises before that date. Broadly, for the year 1996-97 they allow a catching-up process by averaging the profits for the two years ending in that year. Income in that period is therefore effectively taxed, in most cases, at half of the normal marginal rate for that year, and business profits arising in the period from the latest accounting date in 1996-97 to 5 April 1997 ultimately drop out of account altogether. The purpose of the transitional rules is broadly to ensure that there is no double taxation of business profits and other income, presently taxed on the preceding year basis under schedule D, which the change to the current year basis of assessment might otherwise cause. But, because of the way that the rules work, and the certainty that profits or income arising in a particular period will be taxed at a reduced rate, and in some cases will drop out of account altogether, it is necessary to counteract the effect of artificially moving profits or income into these periods. The Government's intention is to deter such avoidance.

The proposals also deal with the treatment of other income, including interest, assessed on the preceding year basis, and with the treatment of interest paid on borrowings to finance trades, professions and businesses carried on in partnership.

The proposed legislation will have effect in respect of all periods which affect the amount of income assessed in 1996-97. For businesses taxed under cases I or II of schedule D this could commence as early as 7 April 1994.


Column 957

The legislation will also affect the period before 6 April 1997 which is taxed in 1997-98. The new rules do not affect limited companies.

The Inland Revenue has consulted on the proposals and will publish draft legislation later this year.

Ms Harman : To ask the Chancellor of the Exchequer, further to his answer of 18 February to the hon. Member for Neath (Mr. Hain), Official Report, column 1032, if he will give estimates for each year from 1978-79 of the


Column 958

number of individuals paying tax and the size of the work force in each region of the United Kingdom ; and if he will give estimates for each year up to and including 1996-97.

Mr. Dorrell [holding answer 24 March 1994] : Regional estimates are not readily available for all the past years requested. Information based on the survey of personal incomes for 1981-82, 1989-90, 1990-91 and 1991-92 is given in the table. No information is available below the United Kingdom level after 1991-92.


Column 957


                          1981-82                       1989-90                       1990-91                       1991-92                                     

                         |Individuals   |Civilian      |Individuals   |Civilian      |Individuals   |Civilian      |Individuals   |Civilian                     

                         |paying tax<1> |labour force  |paying tax<1> |labour force  |paying tax<1> |labour force  |Paying tax<1> |labour force                 

                                        |population of                |population of                |population of                |population of                

                                        |working age<2>               |working age<2>               |working age<2>               |working age<2>               

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

North                    |1,260         |1,450         |1,240         |1,460         |1,240         |1,440         |1,270         |1,430                        

Yorkshire and Humberside |2,070         |2,270         |2,120         |2,360         |2,160         |2,390         |2,140         |2,390                        

North West               |2,760         |3,010         |2,630         |3,090         |2,840         |3,080         |2,740         |3,060                        

East Midlands            |1,530         |1,810         |1,760         |2,020         |1,910         |2,020         |1,840         |2,020                        

West Midlands            |2,280         |2,450         |2,250         |2,580         |2,340         |2,610         |2,260         |2,590                        

East Anglia              |800           |850           |970           |990           |990           |1,020         |1,030         |1,010                        

South East               |8,050         |8,040         |8,180         |8,750         |8,850         |8,810         |8,610         |8,750                        

South West               |1,850         |1,910         |1,980         |2,240         |2,350         |2,240         |2,270         |2,270                        

Wales                    |1,090         |1,210         |1,130         |1,300         |1,220         |1,320         |1,240         |1,310                        

Scotland                 |2,190         |2,380         |2,480         |2,450         |2,340         |2,470         |2,320         |2,430                        

Northern Ireland         |530           |620           |570           |660           |540           |670           |510           |670                          

<1> Including taxpayers above and below working age.                                                                                                            

<2> Men aged 16-64 years, women aged 16-59 years.                                                                                                               

NORTHERN IRELAND

Appointments

Mr. Matthew Taylor : To ask the Secretary of State for Northern Ireland (1) what procedures his Departments have to prevent the possible appointment of individuals with extreme political views to posts for which a Minister has to approve the person or shortlist for the appointment ;

(2) what information the Northern Ireland Office holds or obtains relating to individuals who have been appointed, or may be considered for appointment, to paid or unpaid posts for which a Minister has to approve the person or shortlist for the appointment, in particular relating to active involvement in (a) extreme left-wing organisations, (b) extreme right-wing organisations and (c) involvement in any of the political parties represented in the House of Commons.

Sir John Wheeler : Individuals are appointed to public bodies on merit and potential to contribute to the work of the particular body, taking account of the need of each body to have the experience and skills necessary to carry out its functions. The Secretary of State and Ministers consider all relevant factors known to them before making an appointment.

Sheep Annual Premium

Mr. Redmond : To ask the Secretary of State for Northern Ireland if he will list by county how many applications for payment of sheep annual premium he has received in the current year ; and what proportion in each county remained unpaid on 1 March.

Mr. Ancram : The number of applications received under the 1994 sheep annual premium scheme is as follows :


Column 958


County       |Number of                

             |Applications             

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

Antrim       |2,652                    

Armagh       |1,219                    

Down         |2,659                    

Fermanagh    |608                      

Londonderry  |2,154                    

Tyrone       |2,761                    

All applications are unpaid. The first advance of premium cannot be paid until authorised by the EC Commission.


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