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The Council agreed that the presidency should acknowledge the requests for accession by Romania and Slovakia.The Council reached agreement in principle on a proposal to provide food aid to certain Republics of the Former Soviet Union. The Commission reported that it was working on a communication on EU/US relations, to be delivered at the October Council.
The Council agreed conclusions on export credits which envisage a substantive debate at the October Council.
Agreement was reached in principle on the EURATOM/US agreement on nuclear trade.
Finally, the Council agreed unanimously that the Commission should pursue an interim agreement in the WTO financial services negotiations.
A copy of the Council conclusions will be placed in the Library of the House as soon as they are received by the Foreign and Commonwealth Office.
Embassies
Mr. Milburn: To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to his answer of 6 July, Official Report, column 326, if he will provide a breakdown of the figures for vehicles bought for posts abroad, specifying where possible the post and type of vehicle. [34290]
Mr. Hanley [holding answer 13 July 1995]: A list broken down by post and type, showing FCO, including ODA, purchases of official vehicles over the last five financial year is being placed in the House Library.
PRIME MINISTER
Michael John Smith
Mr. Blair: To ask the Prime Minister if he has received the report of the Security Commission on the case of Michael John Smith. [36331]
The Prime Minister: My right hon. Friend the Lord President announced on 11 January 1994 that after consultation with the late leader of the Opposition, I had asked the Security Commission to investigate the circumstances in which breaches of security had, or might have, occurred arising out of the case of Michael John Smith, who was convicted on 18 November 1993 of offences under section 1 of the Official Secrets Act 1911; and to advise in the light of that investigation whether any change in security arrangements was necessary or desirable.
An appeal by Smith against his conviction was dismissed by the Court of Appeal (Criminal Division) on 8 June 1995, but his appeal against sentence was allowed and the sentence was reduced from 25 years to 20 years. The Commission has now submitted its report to me and it is being published this afternoon as a Command Paper, with the exception of some technical and procedural details which it would not be in the public interest to publish on national security grounds. I am most grateful to the Chairman, Lord Lloyd, and to Sir John Blelloch, Sir Derek Boorman and Lord Tombs.
The Commission has fully examined the period of Smith's career in defence- related work. The Commission was critical of the initial failure by the Security Service
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to match Smith's record as a communist with his application for security clearance at EMI in 1976. The Commission felt that there was an unwarranted delay between Smith's identification as a potential threat and these facts being communicated to the Ministry of Defence and Smith's employer. It was concerned about the Security Service's eventual decision to relax its recommendations about Smith when he was put forward for clearance for work at GEC in 1986. It was also unhappy with the way in which the Ministry of Defence agreed to Smith having access to confidential information at GEC.However, the Commission recognises that much has changed since these events took place. The threat from subversive organisations is much lower. The Soviet Union and the Warsaw pact no longer exist. In addition, the Commission has been called upon to investigate a number of other security breaches since 1978 when Smith's clearance was withdrawn and its recommendations have led to significant improvements in the areas of vetting, and more widely, in the field of protective security. Over the same period, Government Departments have also taken initiatives to improve protective security practices. In the light of all this, the Commission has made a number of recommendations. These, in summary, are:
(a) that the Security Service should continue to keep its organisation and internal lines of communication under review; (b) that in cases where candidates lie during the security clearance procedure there should be a very strong presumption against the granting or reinstatement of a clearance;
(c) that an interview with a subject should be used where appropriate to resolve doubts about a security clearance;
(d) that the written levels of assessment of an individual should be unambiguous and that all relevant information should be made available to the relevant Government Department before a decision is made on an individual clearance;
(e) that decisions on the clearance of individuals working on contracts involving access to protectively marked assets in an industrial concern should be taken by Government Departments only after appropriate consultation with the employer;
(f) that levels of access granted to individuals in industry should be clear and capable of effective implementation;
(g) that in any case where a security clearance is subject to any limitation, that individual's behaviour and performance should be monitored and reviewed regularly by the Security Service with the employing company;
(h) that judgements based on experience should not be given excessive credence in work of the Security Service; and
(i) that appeal arrangements against a decision to withhold or limit clearance both in the civil service and in industry may need to be strengthened.
The recommendations of the Security Commission have been accepted in principle by the Government subject to further consideration of some detailed points: and work is now in hand to ensure that they are effectively implemented within government and in industry. I announced to the House on 15 December 1994 that following a comprehensive review of protective security arrangements generally, a new system for the security vetting of Government employees and contractors would be introduced from 1 January 1995. This will provide the opportunity to consider how best to implement the recommendations of the Security Commission.
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Exchange Rate Mechanism
Mr. Austin Mitchell: To ask the Prime Minister what considerations led to the policy he adopted towards the ERM in October 1990. [35260]
The Prime Minister: The decision to participate in the ERM from October 1990 was taken in order to reinforce the Government's counter- inflationary policy at that time.
Consultants
Mr. Austin Mitchell: To ask the Prime Minister how many contracts and for what total sum were let out by his department and agencies for which it is responsible to (a) Coopes and Lybrand and its subsidiaries, (b) Peat Marwick and its subsidiaries, (c) Ernst and Young and its subsidiaries, (d) Arthur Andersen and its subsidiaries, (e) Price Waterhouse and its subsidiaries, (f) Grant Thornton and its subsidiaries, (g) Stoy Hayward and its subsidiaries (h) Robson Rhodes and its subsidiaries and (i) Pannell Kerr Forster and its subsidiaries for privatisation, market testing, management advice, accounting, audit, consultancy and other services in 1993 94 and 1994 95. [33910]
Mr. Milburn: To ask the Prime Minister (1) if he will indicate which five consultancy firms have received most contracts from his Department by (a) number of contracts and (b) monetary value in the last five years for which figures are available; [33442] (2) how many contracts his Department has had with consultants; and what has a been the total cost in each of the last five years. [33568]
The Prime Minister: For this purpose my office is part of the Cabinet Office. I refer the hon. Member to the reply given by my hon. Friend the Parliamentary Secretary, Office of Public Service, on 18 July.
`Mr. Milburn: To ask the Prime Minister which firms of consultants employed by his Department over the last year have been paid more than £1,000 per day. [33931]
The Prime Minister [holding answer 12 July 1995]: For this purpose, my office is part of the Cabinet Office. I refer the hon. Member to the reply given by my hon. Friend the Parliamentary Secretary, Office of Public Service on Monday 17 July, Official Report , column 903 .
Small Businesses
Mr. David Shaw: To ask the Prime Minister if he will make a statement on the results of (a) his policies and (b) his Department in helping small businesses over the last 12 months as against the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring. [34696]
The Prime Minister: The Government recognise the crucial role played by small firms in the UK economy and aim to help them by providing sound economic conditions--keeping inflation and interest rates low; reducing legislative, administrative and taxation burdens; and where appropriate provide direct assistance in the forms of specialist advice and support and easing access to finance.
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The recently announced White Paper "Forging Ahead" outlines a programme of measures to assist the growth and competitiveness of the small firms sector.Specific measures to assist small firms are the responsibility of my right hon. Friends, the President of the Board of Trade, the Secretary of State for Scotland and the Secretary of State for Wales. For details of specific programmes, I refer the hon. Member to their replies today.
Mr. Ghanzanfer Ali
Mr. Madden: To ask the Prime Minister if he will urge the Government of Azad-Kashmir to release from Mirpur district prison Mr. Ghanzanfer Ali to obtain medical treatment in the United Kingdom. [36263]
The Prime Minister: Ghanzanfer Ali was admitted to a civil hospital in Mirpur 10 days ago. Our High Commission in Islamabad is obtaining details of his medical condition.
Millennium Commission
Mr. Chris Smith: To ask the Prime Minister in what capacity the membership of the First Secretary of State of the Millennium Commission has now been confirmed. [25710]
The Prime Minister: There has been no change in the status of the First Secretary of State as a member of the Millennium Commission since his appointment by HM the Queen on 17 February 1994.
Scottish Education Department
Mr. John McFall: To ask the Prime Minister what consideration was given to the role of the Scottish Office Education Department during the merger of the Department of Employment and the Department for Education. [34132]
The Prime Minister: My right hon. Friend the Secretary of State for Scotland has ensured that ministerial responsibility for education and training in the Scottish office are combined. In addition, he has agreed with my right hon. Friend the Secretary of State for Education and Employment arrangements to ensure close consultation on labour market issues, including agreement of the annual performance targets for the Employment Service and new initiatives to help unemployed people.
Advertising of Government Posts
Mr. Michael: To ask the Prime Minster if it is his Government's policy to advertise posts in its employ on the basis of offering a salary but inviting applications from those willing to work on a volunteer, unpaid basis. [36605]
The Prime Minister: I have asked my right hon. Friend the Chancellor of the Duchy of Lancaster to write to the hon. Member.
Single Currency
Mr. Austin Mitchell: To ask the Prime Minister what considerations underlie his decision to hold open the possibility of the United Kingdom accepting a single currency in the future. [35204]
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The Prime Minister: I believe that we should judge whether or not to join a single currency on the basis of our national interest, given the circumstances of the time. We do not know what those future circumstances might be. It is therefore too early for us to make a decision one way or the other. Furthermore, as I told the House on 28 June, Official Report , columns 893 94 , I believe that it is essential for this country to participate fully in the debate over economic and monetary union, to make our practical views count and to stand up for our interests in Europe. We would forfeit our influence over the debate if we exercised our opt-out now. That would not be in our interests.
Computer Equipment and Consultancies
Mr. Milburn: To ask the Prime Minister (1) if he will list the top 10 suppliers of computer equipment to his Department and its agencies in the last five years, indicating the total value of the contracts received; [34549]
(2) which firms have won computer consultancy contracts from his Department or its agencies over the last five years, indicating the number of contracts per firm; [33929]
(3) how much his Department or its agencies have spent on computer consultancy in each of the last five years; and what is the expected expenditure over the next five years. [33930]
The Prime Minister [holding answers Wednesday 12 July and Friday 14 July]: For this purpose my office is part of the Cabinet Office.I refer the hon. Member to the reply given by my right hon. Friend the Parliamentary Secretary, Office of Public Service, on 18 July.
Honours (Civil Service Secretaries)
Mr. Berry: To ask the Prime Minister (1) how many honours in the birthday list were awarded to personal secretaries in the civil list; [34390]
(2) how many honours in the birthday list were awarded to (a) civil servants, (b) local government officials, (c) local authority councillors and (d) police officers. [34391]
The Prime Minister [holding answer Monday 17 July 1995]: My recommendations for the birthday honours list contained 1,055 names. Of these 434 were given specifically for their voluntary service, and many others had also given voluntary service which supported their other claims. The list included 10 personal secretaries in the civil service out of a total of 171 civil servants at all grades, including many working for agencies. The list also included 11 local government officials, 13 local authority councillors and 28 police officers.
Arms Sales (Iraq and Iran)
Mr. Alfred Morris: To ask the Prime Minister if any United Kingdom bank involved in the sale of arms to Iran or Iraq during the Scott inquiry acted during that time in the service of Her Majesty's Government; and in what capacity. [34320]
The Prime Minister: [holding answer Friday 14 July 1995]: I am not aware of any such involvement. If the
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right hon. Member has any relevant information on this subject he will wish to make it available to the appropriate authorities.TREASURY
Friendly Societies
Mr. Kirkwood: To ask the Chancellor of the Exchequer how many friendly societies have closed recently and how many of the closures were attributed to the regulatory requirements imposed by the Financial Services Act 1986. [34402]
Mrs. Angela Knight: So far this year, to June 1995, 10 societies have closed. Two of these were LAUTRO members and therefore subject to the regulatory requirements of the Financial Services Act regime. The reasons for closure are for the societies themselves to determine.
Trade Deficit
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what assessment he has made of the reasons for the change in the deficit on visible trade in the six months to April and of the likely effect on output, employment and investment in United Kingdom manufacturing; and if he will make a statement. [35197]
Mrs. Angela Knight: The Government's latest assessment of the factors affecting the visible trade deficit was given in chapter 1 of the Treasury's summer economic forecast, published on 28 June 1995. Net trade directly accounted for over half of the growth of GDP in the year to the first quarter of 1995. It is not possible to isolate the overall effects of trade performance on output, employment and investment.
Monetary and Exchange Rate Policies
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what is his estimate of the likely effect of his monetary and exchange rate policies on output, employment and investment in the manufacturing industry in 1996 97. [35199]
Mrs. Angela Knight: The Government's macroeconomic policies are designed to maintain a stable macroeconomic environment and strengthen the long-term performance of the economy and outlook for jobs, in order to promote rising prosperity based on sustained economic growth.
Trade Balance
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what is his estimate of the fall in the rate of exchange against the ecu which would be required to eliminate the visible trade deficit with EEC countries within a period of 12 months. [35201]
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Mrs. Angela Knight: The balance of trade with the EU depends on a variety of factors, including competitiveness. The key to sustained gains in competitiveness is control over costs, and policies directed at permanently low inflation and competitive markets provided the best environment in which to achieve this. A policy of deliberate devaluation would only raise inflation and be damaging to long-run economic performance.
Chemical Industry
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what assessment he has made for the reasons for the difference between the rate of return in the United Kingdom chemical industry and that in other industrial countries. [35203]
Mrs. Angela Knight: There are no internationally comparable official figures available on the rates of return specific to the chemical industry in the United Kingdom and other industrial countries.
Company Returns
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer (1) if he will list for the UK, Germany and the USA the pre-tax rates of return for manufacturing and non-financial corporations in each year since 1980; [35360]
(2) what has been the rate of return on manufacturing since 1970 (a) in the United Kingdom and (b) in other main industrial countries. [35256]
Mrs. Angela Knight: Information on United Kingdom net rates of return for manufacturing companies since 1970 is available from the CSO's shared database, which can be accessed through the Library of the House. Latest data were published on 11 July 1995 in the CSO "First Release" on `Profitability of UK Companies' (CSO (95) 136). Information on rates of return in other main industrial countries since 1970 is published in Table 14 of the OECD's "National Accounts, Volume II".
Interest Rates
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer (1) what has been the accuracy of Bank of England forecasts of the effect on the balance of trade of increases in real interest rates over the past 12 months; [35257]
(2) what has been the accuracy of (a) the Bank of England and (b) the Treasury forecast of the effect on output and employment of the changes of interest rates of the last 12 months. [35258]
Mrs. Angela Knight: Forecasts of output, employment and the balance of trade depend on many factors. It is not possible to isolate the effect of changes in interest rates.
Visible Trade Balance
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what has been the effect of monetary policy (a) in the last two years and (b) since the summer of 1994 on the visible trade balance. [35259]
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Mrs. Angela Knight: It is not possible to isolate with any confidence the effects on the visible trade balance stemming from monetary policy. However, the Government's commitment to deliver permanently low inflation will provide a stable climate within which British industry can compete successfully, in both world and domestic markets.
EU Common Currency
Mr. Mills: To ask the Chancellor of the Exchequer if he will make a statement about the targets agreed for timing of a common currency for European Union members after the recent EU conference. [30642]
Mrs. Angela Knight: I refer my hon. Friend to the remarks made by my right hon. Friend the Prime Minister on 28 June, during his statement to the House on the meeting of the European Council in Cannes, Official Report, columns 893 909 .
Minimum Wage
Mr. William Powell: To ask the Chancellor of the Exchequer what calculations he has made on the implications for public expenditure if a national minimum wage of (a) £3 per hour, (b) £3.50 per hour and, (c) £4 per hour, (d) £4.50 per hour and (e) £5 per hour were to be introduced on 1 September and for the fiscal year 1996 97; and if he will make a statement. [32872]
Mr. Waldegrave: A national minimum wage would destroy private sector jobs, leading to an increase in public expenditure on social security benefits for the unemployed. In the public sector, aggregate control of running costs in the civil service and our wider approach to pay means that higher spending on pay would have to be offset by spending cuts elsewhere.
Single Currency
Mr. Gordon Prentice: To ask the Chancellor of the Exchequer to what extent he was consulted by the European Commission about the contents of the Green Paper on the practical arrangements for the introduction of the single currency prior to its publication on 31 May. [33530]
Mrs. Angela Knight: The European Commission's Green Paper was discussed at ECOFIN on 22 May.
Mr. Prentice: To ask the Chancellor of the Exchequer how many civil servants are seconded to work with the European Commission on single currency issues. [33529]
Mrs. Knight: As of 3 July 1995 there was one United Kingdom civil servant seconded to the European Commission and working in Directorate- General II, Economic and Financial Affairs, the responsibilities of which include work on economic and monetary union.
Consultancies
Mr. Milburn: To ask the Chancellor of the Exchequer if he will estimate the cost of employing consultants in connection with privatisation programmes in which his Department has been engaged since 1980. [33450]
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Mrs. Angela Knight: Information prior to 1991 is not held centrally and could be obtained only at disproportionate cost. Information for 1991 to date is as follows:
|£000
--------------------
1991-92 |8.891
1992-93 |1,429
1993-94 |5,019
1994-95 |4,500
Mr. Milburn: To ask the Chancellor of the Exchequer how many contracts his Department has had with consultants; and what has been the total cost in each of the last five years. [33499]
Mrs. Knight: I regret that information prior to 1991 can be obtained only at disproportionate cost.
The table gives the number and value of consultancy contracts awarded by HM Treasury by financial year from 1991 92 to 1994 95. In addition the Department has also incurred expenditure on professional fees in connection with the privatisation programme. These are shown separately.
Consultancy Privatisation
contracts contracts
|Value |Value
|Number of |(excluding|Number of |(excluding
Year |contracts |VAT) £000 |contracts |VAT) £000
------------------------------------------------------------------
1991-92 |14 |<1>258 |10 |8,891
1992-93 |92 |1,029 |14 |1,429
1993-94 |70 |1,404 |12 |5,019
1994-95 |37 |997 |13 |4,500
<1> August-March.
Mr. Milburn: To ask the Chancellor of the Exchequer which firms of consultants employed by his Department over the last year have been paid more than £1,000 per day. [33869]
Mrs. Angela Knight [holding answer 12 July 1995]: The information requested is not held in a form that is readily accessible and could be obtained only at disproportionate cost.
Mr. Milburn: To ask the Chancellor of the Exchequer if he will indicate which five consultancy firms have received most contracts from his Department (a) by number of contracts and (b) monetary value in the last five years for which figures are available. [33431]
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer how many contracts and for what total sum were let out by his Department and agencies for which it is responsible to (a) Coopers and Lybrand and its subsidiaries, (b) Peat Marwick and its subsidiaries, (c) Ernst and Young and its subsidiaries, (d) Arthur Andersen and its subsidiaries, (e) Price Waterhouse and its subsidiaries, (f) Grant Thornton and its subsidiaries, (g) Stoy Hayward and its subsidiaries and (h) Robson Rhodes and its subsidiaries and (i) Pannell Kerr Forster and its subsidiaries for privatisation, market-testing, management advice, accounting, audit, consultancy and other services in 1993 94 and 1994 95. [33917]
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Mrs. Angela Knight: I regret that is has not been possible to provide a substantive answer before the summer recess. I shall write to the hon. Members shortly and place a copy of the letters in the Library.
Mr. Milburn: To ask the Chancellor of the Exchequer (1) how much his Department and its agencies have spent on computer consultancy in each of the last five years; and what is the expected expenditure over the next five years; [33864]
(2) which firms have won computer consultancy contracts from his Department and its agencies over the last five years; and what is the number of contracts per firm. [33896]
Mrs. Angela Knight [holding answer 12 July 1995]: Details of consultancy contracts are held on the Treasury contracts database. But as the database cannot identify computer consultancy separately, the information requested could be obtained only at disproportionate cost.
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