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Aerospace Industry

Mr. Jim Cunningham: To ask the President of the Board of Trade how many jobs have been lost in the aerospace industry in each year since 1980; and what are the equivalent statistics for (a) France, (b) Germany and (c) Italy. [1010]

Mr. Eggar: The figures requested are given in the table:

Change in employment in the aerospace industry

		Job gain/(losses) in thousands
	United Kingdom	France	Germany	Italy
1980-81	1.3	2.7	3.1	2.7
1981-82	(12.4)	4.0	(0.9)	0.8
1982-83	(10.7)	(0.7)	(1.1)	(0.2)
1983-84	(6.1)	0.0	(0.8)	(0.8)
1984-85	0.2	(0.7)	0.5	(0.7)
1985-86	1.8	(0.1)	3.1	1.0
1986-87	5.8	(3.0)	1.0	2.2
1987-88	(7.6)	(3.0)	3.5	2.0
1988-89	(1.9)	(1.3)	5.5	2.2
1989-90	5.3	3.4	0.4	6.5
1990-91	(6.5)	0.9	2.7	0.5
1991-92	(10.6)	(4.4)	2.0	n/a

Source: ACOP and Eurostat VISA-DEBA.

Mr. Cunningham: To ask the President of the Board of Trade what was the level of output of the aerospace industry for each of the years since 1989 in (a) real terms and (b) as a percentage of GDP; and what are the equivalent figures for (a) France, (b) Germany and (c) Italy. [1012]

Mr. Eggar: The figures requested are given in the table:

Gross value added at factor cost in 1990 prices £ million

	1989	1990	1991	1992
United Kingdom	5,261	5,620	5,035	3,872
France	3,475	3,265	3,397	3,049
Germany	2,228	2,358	2,598	2,260
Italy	1,257	1,418	1,266	n/a

Source: Eurostat VISA-DEBA.

Contribution to GDP Percentage

	1989	1990	1991	1992
United Kingdom	1.1	1.2	1.1	0.8
France	0.6	0.6	0.6	0.5
Germany	0.3	0.3	0.3	0.3
Italy	0.2	0.3	0.2	n/a

Source: Eurostat VISA-DEBA and OECD National Accounts.

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Invoices (Late Payments)

Mrs. Roche: To ask the President of the Board of Trade (1) how many (i) orders and (ii) firms are represented by the 16 per cent. of invoices not paid by his Department within 30 days or in accordance with contractual agreements in 1994-95; and how many of these are related to firms with fewer than 500 employees; [913]

(2) what is the amount owed to those businesses whose invoices were not paid within 30 days or within the agreed credit period in each of the last five years; [1121]

(3) how his Department publicises payment practices other than as percentages of invoices paid late; [966]

(4) what is the average length of time it takes for his Department to pay invoices. [921]

Mr. Lang [holding answer 22 November 1995]: Much of the information sought either is not available or could be assembled only at disproportionate cost.

My Department's prompt payment performance is checked by means of a random survey which monitors approximately 4,000 invoices over the course of each year with the purpose of identifying invoices paid later than 30 days after receipt, or after the agreed credit period. In 1994-95, 16 per cent., or approximately 640, of these invoices were found to fall into one or other of these categories. As I have made clear before, this was clearly an unsatisfactory performance which we are seeking to address through the introduction of a challenging performance target for this year. The survey does not, however, gather information on the size of the companies involved, the amounts outstanding or the average time taken to make payment.

My Department publishes its payment performance in the form of a percentage figure which gives the proportion of invoices paid either within 30 days or within an agreed credit period. The overall results of the annual survey are published in the departmental report, a copy of which is placed in the Library of the House. The 30-day target for paying invoices is itself published in the DTI standard terms and conditions of contract for supplies.

TREASURY

Corporation Tax

Sir David Mitchell: To ask the Chancellor of the Exchequer if he will list the latest rates of corporation tax applicable to shipping companies in each country of the European Union; and if he will make it his policy to bring United Kingdom rates into line with those elsewhere in the European Union. [2111]

Mr. Jack: The rate of corporation tax in the United Kingdom is kept under frequent review. The UK continues to provide one of the lowest main rates in the European Union. The current main national rates of corporation tax applicable to shipping companies in each European Union country are in the table.

24 Nov 1995 : Column: 415

Main national rates of corporation tax applicable to shipping companies in the European Union Percentage

Country	Rate
Austria	34
Belgium	(69)39
Denmark	34
Finland	25
France	(70)33.33
Germany	(71)45
Greece	(72)nil
Ireland	(73)10
Italy	(74)37
Luxembourg	(75)33
Netherlands	35
Portugal	(76)36
Spain	(77)35
Sweden	28
United Kingdom	33

Notes:

(69) There is also a surcharge of 3 per cent., making an effective rate

of 40.17 per cent.

(70) There is also a surcharge of 10 per cent., making an effective rate

of 36.66 per cent.

(71) There is also a surcharge of 7.5 per cent. and local trade taxes (of

an average 20 per cent.) which give an average total effective rate of 58 per cent. For distributed profits, the main rate is 30 per cent., giving an effective rate of 46.25 per cent. Companies engaged in international shipping can elect for certain of their profits (normally 80 per cent.) to be taxed at half the average rates they would otherwise pay provided relief in respect of any foreign tax borne by those profits is forfeited.

(72) Profits from shipping are not subject to corporation tax. Instead a

special tax, based on gross tonnage and age, is charged on usage of a vessel.

(73) This special rate of corporation tax applies to manufacturing and

the sale of goods. Certain shipping activities are deemed to be manufacturing for this purpose.

(74) There is also local tax at 16.2 per cent., making an effective rate

of 53.2 per cent.

(75) There is also a surcharge of 4 per cent. and local trade taxes (in

range of 8 per cent.-12 per cent.) which give an effective rate of 40.9 per cent.

(76) The main rate is only applied to 30 per cent. of the profits from

maritime transport activities. In Madeira corporation tax does not apply to profits arising from the operation of Madeira-registered vessels in international waters.

(77) There is also a surcharge of 1 per cent., giving an effective rate of

35.35 per cent. In the Canary Islands shipping companies are granted up to a 35 per cent. reduction in corporation tax, giving a minimum possible effective rate of 22.75 per cent.

24 Nov 1995 : Column: 416

Heroin and Semtex

Mr. Dalyell: To ask the Chancellor of the Exchequer what further actions Customs and Excise is taking to identify heroin and semtex at airports. [1634]

Mr. Heathcoat-Amory [holding answer 23 November 1995]: Her Majesty's Customs and Excise continues to assess the risk of smuggling of these commodities and to deploy anti-smuggling teams to address those risks. Training programmes for these teams include the identification and handling of the materials. Detector dogs and scientific aids are used as appropriate.

Tax Revenue

Mr. Robert Ainsworth: To ask the Chancellor of the Exchequer if he will estimate, in current prices, the net revenue forgone in each year since 1988-89 as a result of the reduction in personal income tax for higher rate taxpayers introduced by the Finance Act 1988; and what has been the total number of beneficiaries in each year, by region. [87]

Mr. Jack: Available information is in the table. Figures for earlier years were given in the reply to the hon. Member for Darlington (Mr. Milburn) on 17 December 1993, Official Report, columns 969-70. Some regional estimates are based on small samples and all amounts are given to the nearest £50 million.

24 Nov 1995 : Column: 415

Number of taxpayers affected and increases in tax revenue resulting from reinstating tax rates over 40 per cent.

Region of residence		1992-93			1993-94
	Numbers	Amount	Numbers	Amount
	Thousands	£ million	Thousands	£ million
North	40	50	40	50
Yorkshire and Humberside	70	200	70	250
North west	90	200	90	250
East Midlands	70	200	70	150
West Midlands	90	200	80	200
East Anglia	40	100	40	100
South east	620	2,300	650	2,550
South west	90	250	80	250
Wales	30	50	30	50
Scotland	80	200	90	200
Northern Ireland	20	50	20	50
United Kingdom(78)	1,230	3,850	1,260	4,200

(78) Includes members of the forces and merchant navy and a small number of civil servants serving overseas who are not all allocated to regions.

24 Nov 1995 : Column: 415

24 Nov 1995 : Column: 415

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