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Indonesia
Mr. Worthington: To ask the Secretary of State for Foreign and Commonwealth Affairs what restrictions he places on the type of arms that could be sold to Indonesia; and if he will join the embargo on small arms sales to Indonesia.
Mr. Goodlad: The export to any destination of arms and other goods listed in the Export of Goods (Control) Order 1994 is prohibited without a licence issued by my right hon. Friend the President of the Board of Trade. All applications for export licences for defence equipment are considered carefully on a case by case basis in the light of established criteria. In the case of Indonesia, we would not, for example, licence for export equipment likely to be used for internal repression. There is no United Nations or European Union embargo on arms sales to Indonesia.
British Embassies
Mr. Grocott: To ask the Secretary of State for Foreign and Commonwealth Affairs what is the total annual running cost of the British embassy (a) in Paris, (b) in Cairo and (c) in Luanda.
Mr. Goodlad: The total annual running costs of the British embassies (a) in Paris, (b) in Cairo and, (c) in Luanda are £16.7 million, £3.3 million, and £1.5 million respectively.
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International Atomic Energy Agency
Mr. Llew Smith: To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to his answer of 21 October, Official Report , column 382 , if he will reconsider his refusal to release the names of the British suppliers of technology to the Iraqi nuclear programme listed in the International Atomic Energy Agency report; and what is his response to the statement by the director-general of the IAEA before the Foreign Affairs Select Committee on 26 October regarding the release of such information.
Mr. David Davis: No. I have nothing to add to my reply of 21 October 1994, Official Report , column 382 .
Secret Intelligence Service
Mr. Allason: To ask the Secretary of State for Foreign and Commonwealth Affairs how many compulsory redundancies have been made in the Secret Intelligence Service during the past 12 months.
Mr. Hurd: I refer the hon. Gentleman to the answer my right hon. Friend the Prime Minister gave on 14 July 1994, Official Report , column 711-12 . We do not intend to give detailed information on the staffing of the individual security and intelligence agencies.
Mr. Ib Riis
Mr. Allason: To ask the Secretary of State for Foreign and Commonwealth Affairs what emergency support has been given to Mr. Ib Riis.
Mr. Hurd: Mr. Ib Riis wrote to me on 10 June. He wrote to my hon. Friend and others at the same time. In late June he was told that officials were looking at his case. In late September he was asked to submit a claim for financial assistance. He responded in October and his claim is now being considered.
EU Directives
Mr. Betts: To ask the Secretary of State for Foreign and Commonwealth Affairs how many directives of the European Union have not in whole or part yet been incorporated into law in the United Kingdom.
Mr. David Davis: The European Commission's Eleventh Annual Report on Monitoring the Application of Community Law (1993) document reference 6697/94, COM (94) 500 Final, records that the UK had by 31 December 1993 notified the Commission of implementing measures in respect of 1,060 directives out of a total of 1,148 directives applicable on that date. This record was bettered only by the Netherlands and Denmark. The Commission report is available in the Library.
Mr. Betts: To ask the Secretary of State for Foreign and Commonwealth Affairs what timetable exists setting out dates for the incorporation into United Kingdom law of European Union directives which remain outstanding.
Mr. David Davis: Separate deadlines for implementation are specified in each directive which is required to be transposed into national law. In some cases a directive will specify a number of deadlines, each of which is applicable to different provisions within the directive.
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European Defence
Mr. Duncan Smith: To ask the Secretary of State for Foreign and Commonwealth Affairs if his speech to the Franco-British Council on Monday 24 October represents Government policy.
Mr. Hurd: It does. Because of misleading press reports, I have placed a copy in the Library.
Mr. Jenkin: To ask the Secretary of State for Foreign and Commonwealth Affairs, following his speech of 24 October, what is Government policy on earmarking forces for a nascent European army; what options he is considering for an independent European defence structure outside NATO; and what consideration he has given to making the Western European Union a formal fourth pillar of the EU.
Mr. David Davis: There is no question of a European army. As agreed at Maastricht, the Western European Union is being developed as the defence component of the European Union and as the means to strengthen the European pillar of the Atlantic alliance. WEU has no standing forces of its own, but relies on NATO and other national forces, which can be made available on an ad hoc basis for WEU operations.
Hospitality Fund
Mr. Milburn: To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to his answer of 24 October, Official Report , column 440 , how much of the wine purchased on the advice of the Government hospitality fund advisory committee for the purchase of wine comes from any of the committee members' companies.
Mr. Goodlad: Members of the Government advisory committee for the purchase of wine recommend wines as being suitable for use as a consequence of "blind" tastings when they are unaware of the provenance of the wine being assessed. Nor are members involved in decisions on purchasing which are the responsibility of officials of the fund.
One member of the committee has consultancy status with one company from which 6 per cent. of wines purchased in 1993 1994 were supplied.
Mr. Milburn: To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to his answer of 24 October, Official Report column 440 , how the wine purchased by the Government hospitality fund advisory committee for the purchase of wine is used.
Mr. Goodlad: The wines purchased on the recommendation of the Government hospitality advisory committee for the purchase of wine are used only at functions which GHF provides for Ministers when giving official hospitality on behalf of Her Majesty's Government.
Mr. Milburn: To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to his answer of 24 October, Official Report , column 440 , what has been the annual cost of wine purchases undertaken by the Government hospitality fund advisory committee for the purchase of wine in each of the last five years.
Mr. Goodlad: The Government hospitality fund advisory committee for the purchase of wine has purchased no wine; it is involved only in recommending suitable wines for use by the fund.
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Decisions on quantities needed and actual purchases are the responsibility of officials of the fund itself.Purchases of wine by officials of the Government hospitality fund for the past five years are as follows;
1989 1990 -- £131,641
1990 1991 -- £132,926
1991 1992 -- £101,124
1992 1993 -- £ 97,622
1993 1994 -- £110,553
Bananas
Mr. Barry Field: To ask the Secretary of State for Foreign and Commonwealth Affairs what support the United Kingdom has given the Windward Islands over the export of bananas to the EC.
Mr. David Davis: The United Kingdom strongly supports the European Community banana regulation, which offers Windward Islands producers preferential access to the single market. We have support a special Community aid scheme for African, Caribbean and Pacific banana-producing states. We have also given bilateral and regional assistance to the Windward Islands banana industry. We provided emergency assistance in the wake of tropical storm Debbie and are supporting special EC measures to protect the Windwards' marketing structure.
Gibraltar
Mr. Lidington: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will clarify Her Majesty's governments's policy over the 1985 Moran proposals on the future of Gibraltar following recent Spanish statements; and if he will make a statement.
Mr. Hurd: We told the Spanish Government at the last Brussels process meeting in March 1993 that we could not accept the proposals put to Sir Geoffrey Howe by Mr. Moran in 1985,--the "Moran Proposals "--as a basis for talks because of their precondition that sovereignty would be transferred. That position has not changed. Our commitment to the people of Gibraltar is clearly set out in the preamble to the 1969 constitution. We will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes.
Ministerial Travel
Mr. Donohoe: To ask the Secretary of State for Foreign and Commonwealth Affairs on how many occasions in the past year the spouse of a Minister in his Department has travelled abroad at public expense to accompany a Minister on public duties,and what has been the total cost to public funds; and on how many occasions such travel has been undertaken at own cost.
Mr. Baldry [holding answer 26 October 1994]: Between October 1993 and October 1994 Ministers in the Foreign and Commonwealth Office travelled abroad accompanied by their spouses at public expense on 13 occasions. The cost to public funds was £27,338. On each occasion the guidelines in "Questions of Procedure for Ministers" were followed and accord with departmental practice which has existed since at least 1955.
There have been no occasions when such travel was undertaken at own cost.
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TREASURY
Pension Schemes
Mr. Matthew Banks: To ask the Chancellor of the Exchequer if he will make a statement about the tax treatment of small
self-administered pension schemes which breach the conditions on which they receive approval for tax purposes.
Sir George Young: The tax approval system gives pension schemes very favourable tax treatment if certain conditions are met concerning the amount, timing and form of the benefits to be paid. The purpose of the tax reliefs is to encourage the provision of pensions to employees during their retirement.
Arrangements are now being encountered under which the trustees of some small self-administered occupational pension schemes have exploited the tax approval system. These arrangements involve initially taking advantage of the tax reliefs but then engineering loss of tax approval when access to the accumulated funds, in circumstances not allowed by the tax approval conditions, is desired by the scheme members or the sponsoring employer. An example is where the scheme wishes to lend all or a large part of its funds to the sponsoring employer.
The tax approval system is not intended to be used in this way. Arrangements of this kind undermine the pensions purpose for which the tax reliefs are given. Where a pension scheme wishes to take advantage of those reliefs it must accept all the conditions on which approval is granted.
In order to discourage the misuse of the tax approval system in this way a special 40 per cent. tax charge will be levied on the value of funds held by these schemes at the time tax approval is withdrawn. The new tax charge will apply where tax approval ceases on or after today. Further details are given in an Inland Revenue press release published today.
Family Incomes
Mr. Betts: To ask the Chancellor of the Exchequer if he will update the answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 3 November 1993, Official Report , column 257, on the number of families with children with taxable incomes below the income tax threshold.
Sir George Young: It is estimated that in 1994 95, 1.9 million single parents and married couples with children have no income tax liability.
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Tax Statistics
Mr. Betts: To ask the Chancellor of the Exchequer if he will list for each year since 1979 the total tax yield from individual taxpayers liable for capital transfer tax, capital gains tax and inheritance tax; and if he will give for each year since 1989 90 the number of individual taxpayers liable for capital gains tax by their highest marginal rate of tax.
Sir George Young: The available information on net receipts each year since 1979 80 from capital gains tax, capital transfer tax and inheritance tax is given in the table. Separate figures on capital gains tax receipts for individuals and trusts are not available but, in terms of tax liabilities, individuals account for between 83 per cent. and 90 per cent. of the total.
|£ million
Inheritance Capital Gains
Tax/Capital
Transfer Tax<1> Tax<2>
|of which
|charge on
|Total |individuals<3>|Total
---------------------------------------------------------------------------
1979-80 |401 |376 |431
1980-81<4> |425 |401 |508
1981-82<4> |480 |457 |526
1982-83 |499 |475 |632
1983-84 |599 |580 |671
1984-85 |658 |621 |730
1985-86 |881 |857 |908
1986-87 |988 |963 |1,064
1987-88 |1,073 |1,052 |1,379
1988-89 |1,067 |1,042 |2,323
1989-90 |1,227 |1,207 |1,854
1990-91 |1,259 |1,233 |1,852
1991-92 |1,295 |1,261 |1,140
1992-93 |1,201 |1,170 |982
1993-94 |1,328 |1,307 |710
Notes:
<1> Excludes small residual receipts from estate duty which was replaced
by capital transfer tax in 1975.
<2> Excludes tax on capital gains made by companies which is included
under corporation tax.
<3> Includes charges on settled property where the individual has an
interest in possession.
<4> The breakdown of receipts between 1980-81 and 1981-82 was estimated as
they were affected by industrial action between March 1981 and July 1981.
The breakdown of capital gains taxpayers given in the table includes a separate column for trusts in order to reconcile with published figures on taxpayer numbers.
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Number of capital gains taxpayers
Highest rate of
tax charged on
individuals
|Lower rate |Basic rate |Higher rate|Trusts |All
------------------------------------------------------------------------------------
1988-89 |- |51,500 |86,500 |17,000 |155,000
1989-90 |- |48,000 |88,000 |19,000 |155,000
1990-91 |- |44,000 |57,500 |13,500 |115,000
1991-92 |- |34,500 |44,500 |11,000 |90,000
1992-93<1> |1,000 |19,500 |27,000 |7,500 |55,000
1993-94<1> |2,500 |30,500 |42,000 |15,000 |90,000
<1> provisional
Column 1207
Mr. Betts: To ask the Chancellor of the Exchequer if he will list for each year since 1979 (a) the total income,
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both earned and unearned, (b) total national insurance contributions paid and (c) total income tax paid by (i) the top 1 per cent., (ii) the top 5 per cent., (iii) the top 10 per cent., (iv) the bottom 50 per cent. and (v) all taxpayers.Sir George Young: Readily available estimates based on the survey of personal incomes are in the tables. For 1978 79 and 1989 90, married couples are counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation, for 1990 91 onwards, husbands and wives are counted separately. The estimates of total income relate to income subject to income tax and exclude non-taxable income such as certain social security benefits.
Column 1210
|Income tax
Quantile group of |Total income |liability
taxpayers<1>
Per cent. |£ million |£ million
------------------------------------------------------------------------
1978-79
Top 1 |5,000 |2,300
Top 5 |14,900 |4,900
Top 10 |24,200 |7,000
Bottom 50 |30,300 |3,900
All taxpayers |102,800 |20,300
<1> Tax units for years prior to 1990-91.
|Employees' and
|self-employed
|national
|insurance
|contribution
Quantile group of |Total income |Income tax liability|liability
taxpayers<1>
Per cent. |£ million |£ million |£ million
---------------------------------------------------------------------------------------------------------
1989-90
Top 1 |24,200 |7,800 |300
Top 5 |61,700 |16,600 |1,400
Top 10 |93,400 |22,600 |2,700
Bottom 50 |86,600 |8,500 |3,900
All taxpayers |323,400 |53,400 |14,400
1990-91
Top 1 |28,300 |9,200 |300
Top 5 |68,700 |18,900 |1,300
Top 10 |102,800 |25,400 |2,700
Bottom 50 |95,500 |9,000 |4,300
All taxpayers |358,300 |60,400 |15,500
1991-92
Top 1 |31,200 |10,400 |300
Top 5 |73,900 |20,700 |1,500
Top 10 |109,600 |27,500 |3,000
Bottom 50 |98,200 |9,300 |4,200
All taxpayers |373,800 |63,500 |16,200
1992-93
Top 1 |29,300 |9,200 |300
Top 5 |72,000 |19,800 |1,600
Top 10 |108,100 |26,500 |3,100
Bottom 50 |96,900 |8,000 |4,000
All taxpayers |373,700 |60,700 |16,300
1993-94
Top 1 |29,900 |9,800 |300
Top 5 |73,900 |20,400 |1,700
Top 10 |111,300 |27,500 |3,400
Bottom 50 |96,800 |8,100 |3,900
All taxpayers |381,400 |62,800 |17,100
1994-95
Top 1 |32,000 |10,800 |400
Top 5 |78,900 |22,800 |2,000
Top 10 |118,700 |30,900 |3,900
Bottom 50 |99,600 |9,000 |4,400
All taxpayers |401,000 |69,700 |20,000
<1> Tax units for years prior to 1990-91.
Column 1209
Mr. Betts: To ask the Chancellor of the Exchequer what would be the effect on the number of taxpayers in the financial year 1995 96 and on the number of higher rate taxpayers of (a) indexation, (b) raising the main personal allowances by 5 per cent. more than indexation and (c) raising personal allowances by 10 per cent. more than indexation, giving figures separately for each main allowance and a total for main allowances.
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Sir George Young: Estimates based on statutory indexation of 2.2 per cent. in line with the September retail prices index and income levels projected to 1995 96 levels using the summer economic forecast are given in the table. The levels of the married couple's allowance and linked allowances in 1995 96 were set in the Finance Act 1994 and will therefore not be subject to the statutory indexation rules.
Column 1211
Estimated number of |Total |Of which higher
income taxpayers |millions |rate taxpayers
1995-96
------------------------------------------------------------------------------------------------
a) Indexation |26.5 |2.6
b) Increasing personal allowance
for those aged under 65 by 5 per
cent. more than indexation |26.2 |2.5
Increasing personal allowance for
those aged 65 or over by 5 per
cent. more than indexation. |26.4 |2.6
Increasing all personal allowances
by 5 per cent. more than
indexation |26.1 |2.5
c) Increasing personal allowance
for those aged under 65 by 10
per cent. more than indexation |26.0 |2.5
Increasing personal allowance for
those aged 65 or over by 10 per
cent. more than indexation |26.2 |2.6
Increasing all personal allowances
by 10 per cent more than
indexation |25.7 |2.5
Mr. Betts: To ask the Chancellor of the Exchequer if he will estimate the direct revenue yield in a full year at 1994 95 levels of income from restricting (a) personal allowances, (b) relief from pension contributions and (c) other reliefs to relief at 25p and (d) 20p giving in each case the numbers of people affected.
Sir George Young: Estimated full-year yields at 1994 95 income levels based on a projection of the 1992 93 survey of personal incomes and other survey data are given in the table. The figures do not take account of any behavioural effects which might result from the introduction of such changes, and show the yield from restructuring each allowance of relief separately. If two or more were restricted the total yield would be greater than the sum of individual figures.
Restriction to
Basic Rate 20p
|Numbers |Numbers
Effect of |Yield |affected |Yield |affected
restricting |£ million |millions |£ million |millions
-----------------------------------------------------------------------------
(a) Personal
allowances |1,490 |3.4 |5,650 |26.2
(b) Relief for
pension
contributions |700 |2.0 |1,350 |11.5
(c) Other
reliefs |140 |0.7 |<1>n/a |n/a
<1> Information on reliefs given at source is not available from the Survey
of Personal Incomes so it is not possible to estimate the effect of
restricting other reliefs to 20 per cent.
Mr. Betts: To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 5 November 1993, Official Report, column 549 on mortgage tax relief, giving estimates for 1995 96 and for a full year.
Sir George Young: Estimates for 1995 96 are given in the table. The figures are based on the conventional
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assumption of no changes in interest rates from current levels and allow for tax relief at 15 per cent. as set in the Finance Act 1994. They exclude any behavioural effects which might result.Cost (yield) from increasing (decreasing) the limit on mortgage interest relief Limit on size of loan £ |£ million --------------------------------------------------- 40,000 |400 35,000 |200 32,000 |100 31,000 |50 29,000 |(50) 28,000 |(100) 25,000 |(300) 20,000 |(700)
Mr. Betts: To ask the Chancellor of the Exchequer if he will estimate for 1993 94 the number of self-employed who will pay no income tax, giving figures separately for those with gross incomes (a) under £5,000 a year, (b) between £5,000 and £10,000 a year, (c) between £10,000 and £15,000 a year, (d) between £15,000 and £20,000 a year and (e) over £20,000 a year.
Sir George Young: There are about 770,000 self-employed with no income tax liability in 1993 94. Of these, 670,000 have gross income of under £5,000 and 100,000 have gross income of over £5,000. The estimates are based on the projection of the latest annual survey of personal incomes and are provisional. The number with gross income above £5,000 is too small to allow any separate breakdown.
Mr. Betts: To ask the Chancellor of the Exchequer if he will list for 1995 96 or the latest year available an estimate of the yield and the number of taxpayers affected by restricting the capital gains tax allowance to relief at the (a) 25 pence rate and (b) 20 pence rate.
Sir George Young: Under current rules net chargeable gains below the capital gains tax annual exempt amount are totally exempt from tax. The effects of restricting this relief at the 25 per cent. and 20 per cent. rates are given in the table below based on forecast 1994 95 liabilities. The estimates assume the restriction would only affect individuals with gains above the annual exempt amount and do not allow for any consequential change in their behaviour.
|Number of |Capital gains tax
|taxpayers affected|yield (£ million)
------------------------------------------------------------------------------------
Restricting the relief to:
(a) 25 per cent rate |45,000 |35
(b) 20 per cent. |75,000 |60
Mr. Betts: To ask the Chancellor of the Exchequer how much tax was remitted or written off as irrecoverable in 1993; and how much of this was pay-as-you-earn contributions.
Sir George Young: In 1993, £1.58 billion was written off as irrecoverable by the Inland Revenue and £400 million of this was pay- as-you-earn contributions.
Column 1213
Pig-producing Industry
Mr. Kirkwood: To ask the Chancellor of the Exchequer (1) if he will review the taxation and capital depreciation allowances available to the British pig producing industry between now and 1 January 1999 when the rules relating to stall and tether regulations change;
(2) if he will consider allowing pig producers to carry back losses over a three-year period; if he will change the tax regulations relating to buildings used by pig producers with a design life of less than 10 years so that they are regarded as plant and machinery and attract annual depreciation rates of 25 per cent.; if he will allow pig producers to defer claiming allowances until the following year; and if he will set full-year capital allowances for pig producers at 100 per cent. before the rules relating to stall and tether regulations change in January 1999.
Sir George Young: The hon. Member would not expect me to make a statement on taxation matters at this time of year.
Fraud
Mr. Betts: To ask the Chancellor of the Exchequer if he will take steps to obtain an estimate of the percentage of fraud involving transactions between the United Kingdom and offshore tax havens.
Sir George Young: There are no steps that can be taken to obtain a reliable estimate.
Mr. Betts: To ask the Chancellor of the Exchequer how many prosecutions were brought in each of the last five years as the result of tax fraud; and how many of these related to false accounts and income tax returns.
Sir George Young: I refer the hon. Member to the annual report of the board of Inland Revenue for 1993 94--appendix, table 6--copies of which were laid before Parliament on 5 October 1994.
Offshore Tax Havens
Mr. Betts: To ask the Chancellor of the Exchequer what is his estimate of the additional revenues obtained for the Treasury by the measures he has adopted to limit tax avoidance via trusts and offshore tax havens since 1992.
Sir George Young: The comprehensive system for the taxation of capital gains on those setting up, and receiving benefits from, offshore trusts which was introduced in 1992 prevented an estimated revenue loss of up to £100 million in a full year. In addition, changes introduced in 1993 and 1994 to the legislation for controlled foreign companies and to the treatment of interest payments within multinational groups were expected to increase Exchequer yield by 200 million in a full year.
Public Bodies
Dr. Wright: To ask the Chancellor of the Exchequer how many Departments have produced rules of conduct for members of non-departmental public bodies sponsored by those Departments as instructed in "Non- Departmental Bodies: A Guide for Departments"; and if he will arrange for copies to be placed in the Library.
Mr. Nelson: This section of the guide has now been superseded. In June the Treasury circulated to sponsor
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Departments a model code of best practice for board members of public bodies. Copies were placed in the Library of the House of Commons in early July. Sponsor departments are now discussing with executive NDPBs how they may adapt the Treasury code to suit their particular circumstances or whether they should adopt a different code such as the Cadbury code.European Expenditure
Sir John Stanley: To ask the Chancellor of the Exchequer what has been (a) in each year since 1979 and (b) over the whole period since 1979 the percentage increase in spending by the European Community; and what was the average percentage increase in inflation in the Community as a whole in each year since 1979 and over the whole period since 1979.
Mr. Heathcoat-Amory: The percentage increase in spending by the European Community in each year since 1979 is as follows:
|Percentage increase
|in Community
|expenditure
Year |(Payments)
------------------------------------------------------------
1994 |4.7
1993 |14.1
1992 |8.9
1991 |24.2
1990 |5.3
1989 |-0.4
1988 |16.9
1987 |3.3
1986 |<1>21.7
1985 |2.1
1984 |13.2
1983 |19.0
1982 |14.8
1981 |<2>9.2
1980 |13.4
1979 |20.0
Source:
Annual White Paper Statements on the Community Budget.
Notes:
<1> Greece acceded on 1 January 1981. <2> Spain and
Portugal acceded on 1 January 1986.
Spending by the European Community over the whole period since 1979, including additional member states from the date of their accession, has increased by 11.7 per cent. on average in nominal terms each year between 1979 and 1994.
The average percentage increase in inflation in the Community as a whole in each year since 1979 was as follows:
|Percentage increase
Year |in inflation
------------------------------------------------------------
1994 | 3.3
1993 | 3.3
1992 | 4.3
1991 | 5.1
1990 | 5.7
1989 | 5.3
1988 | 3.6
1987 | 3.3
1986 | 3.7
1985 | 6.1
1984 | 7.2
1983 | 8.6
1982 |10.9
1981 |12.4
1980 |13.7
1979 |10.9
Source:
OECD Economic Outlook.
The average percentage increase in inflation in the Community as a whole over the whole period since 1979 was 6.6 per cent.
EC Accounting Systems
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer if he will make a statement on the Government's progress in persuading the institutions of the EC to move to accruals and resource-based accounting systems.
Mr. Heathcoat-Amory: The Government are convinced of the advantages of resource accounting and budgeting for the United Kingdom public sector, along the lines of the outline proposals published in the Green Paper on resource accounting and budgeting, Cm 2626. We believe that the principles of resource accounting might usefully be applied to the finances of other institutions outside the United Kingdom, such as those of the European Community. The Government will be considering this issue further when the United Kingdom proposals have been worked out in more detail.
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what plans he has to apply his policy on accounting standards for stand-alone operating units within the public sector to the introduction of similar standards for units of the Commission of the European Communities, including agencies operated by Her Majesty's Government.
Mr. Heathcoat-Amory: The proposals in the Green Paper on resource accounting and budgeting, Cm 2626, will apply both to the centre of departments and to their agencies, although in many cases the latter are already putting the principles of resource accounting into practice.
Mortgages
Mr. Jim Cunningham: To ask the Chancellor of the Exchequer what action he has taken with his colleagues to assist borrowers from building societies to avoid repossessions.
Mr. Nelson: On 19 December 1991, the then Chancellor announced a number of measures designed to reduce substantially the level of mortgage repossessions. The Government agreed to make mortgage payments in income support direct to lenders, and raised the stamp duty threshold from £30,000 to £250,000 for eight months, to stimulate the housing market. The lenders confirmed that they would not seek to take possession where mortgage interest payments were covered by income support; or where a borrower had suffered a sharp fall in income but was continuing to make reasonable, regular payments. They also agreed to provide counselling for borrowers in difficulties and to examine the possibility of setting up formal mortgage rescue schemes.
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