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Regional Development Organisations
Sir Michael Grylls: To ask the President of the Board of Trade if he has considered the business plans of the English regional development organisations; and what level of financial support he proposes to offer for 1996-97. [25117]
Mr. Eggar: I have studied the current performance and future plans of the eight English regional development organisations. I am pleased to say that they continue to make a significant contribution to the work of my Department's Invest in Britain Bureau, to the overall success of the UK in attracting inward investment, and in particular to their regions' performance. In recognition of this, I have today offered £8.68 million of grant for their inward investment promotion activities for 1996-97. I have also made available a total of £531,000 for inward investment promotion activities in the south-east and eastern regions, to be undertaken by the Government offices.
| Regional Development Organisation | 1996-97 |
|---|---|
| £000 | |
| Northern Development Company (NDC) | 1,660 |
| INWARD Ltd (in the north-west) | 1,388 |
| Yorkshire and Humberside development agency (YHDA) | 1,410 |
| West Midlands development agency (WMDA) | 1,128.2 |
| East Midlands Development Company Ltd. (EMDC) | 810 |
| Devon and Cornwall Development International (DCDI) | 905 |
| London First Centre | 1,010 |
| West of England development agency (WEDA) | 370 |
| Activities in the south-east and eastern regions | 531 |
Grant is offered on an annual basis according to past performance, ability to absorb additional funding effectively, and for an agreed programme of future activities, with proper regard to value for money. It is Government policy to encourage direct inward investment to the UK because it contributes significantly to economic growth. Inward investment brings benefits both to the country as a whole and more specifically to the assisted areas.
Nuclear Power (Privatisation)
Sir Michael Grylls: To ask the President of the Board of Trade what progress is being made in the preparations for the privatisation of the nuclear industry. [25120]
Mr. Eggar: I am pleased to report that significant progress is being made in the arrangements for privatising British Energy. Agreement has been reached in principle on the capital structure of the company. Details will be included in the share offer prospectus in due course.
Three further significant milestones were passed on 31 March, 1996:
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an independent segregated fund, which will provide for the cost of eventual decommissioning of British Energy's nuclear power stations, was established and will come into effect on privatisation. The fund will receive an initial endowment of about £230 million from the British Energy Group; the group will initially contribute £16 million per year in real terms to the fund thereafter. An independent trust, known as the Nuclear Trust, will manage the segregated fund and will own a funding company--the Nuclear Generation Decommissioning Fund Ltd;
British Energy plc, and its operating subsidiaries Nuclear Electric Limited and Scottish Nuclear Limited, were formally vested, as was Magnox Electric plc, which will operate the magnox power stations in the public sector;
new nuclear site licences granted by the Health and Safety Executive for all British Energy and Magnox Electric nuclear power stations came into force.
Arrangements for the British Energy share offer are also on course. The offer is planned for July 1996. It will comprise on open-priced international tender offer to institutional investors and a UK public offer aimed at retail investors. The launch of the UK public offer is planned for late May. At least 30 per cent. of the shares are expected to be offered to retail investors. This proportion may be increased if retail demand is strong. Payment for the shares will be in instalments. The share price in the UK public offer will be at a discount to the international offer price. Incentives and preference in allocation will be available to individuals who register for the UK public offer through a share shop. Arrangements for share shops' participation in the UK public offer were announced on 28 March 1996.
Sir Michael Grylls:
To ask the President of the Board of Trade if he will make a statement on the outcome of the EC Social Affairs Council meeting held on 29 March. [25116]
Mr. John M. Taylor:
I attended the EC Social Affairs Council meeting on 29 March in Brussels with my hon. Friend the Under-Secretary of State for Social Security. There were no formal votes involving the UK.
There was an open discussion on the future of social protection, at which my hon. Friend the Member for Gedling (Mr. Mitchell) represented the UK. He recognised the similar challenges facing member states --aging populations, affordability and efficiency--and emphasised the need to take decisions about social security at national level.
The other 14 member states agreed the directive on parental leave, subject to German parliamentary scrutiny. This directive is based on the Maastrict agreement on social policy and does not apply to the UK.
Political agreement was reached on a common position on the draft directive on the posting of workers. The UK and Portugal opposed the agreement.
There were Commission presentations on a Commission communication on Community structural policies and employment, and on a Commission communication on worker information and consultation.
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The Presidency announced that there would be an interim progress report at the Florence European Council on employment matters and confirmed details of forthcoming events to consider Presdent Santer's proposed "confidence pact".
Sir Michael Grylls:
To ask the President of the Board of Trade if he will make a statement on the outcome of the EC Telecommunications Council on 21 March. [25118]
Mr. Ian Taylor:
The deputy UK permanent representative to the European Union represented the UK at the Telecommunications Council held in Brussels on 21 March.
Following the unanimous political agreement reached at the last Telecommunications Council, the Council agreed a common position on a series of guidelines for trans-European telecommunications networks. The Council also reached political agreement on a draft directive on interconnection in telecommunications--Ireland, Belgium and Luxembourg opposed. A short debate followed on a Commission communication on directories and other telecoms information services in a competitive environment. The Presidency adopted conclusions calling on member states and the Commission to continue to monitor developments in the sector.
The Presidency gave a progress report on discussion of a draft directive to amend the open network provision framework and leased lines directives 90/387/EEC and 92/44/EEC to a competitive environment. The Commission made a brief presentation of its communication on universal service for telecoms in a competitive environment. A draft decision for EU action on satellite personal communications services was referred back to the Committee of Permanent Representatives for further discussion. There was also an informal lunchtime discussion on the progress of multilateral negotiations in the World Trade Organisation on basic telecommunications with Sir Leon Brittan.
Mr. David Atkinson:
To ask the President of the Board of Trade if he will make a statement on the problem of non-recognition by computers of the year 2000 with regard to his Department's computers and those for which it is responsible. [24400]
Mr. John M. Taylor:
My Department is aware of the problem and has already had initial discussions with the Central Computer and Telecommunications Agency--the Government centre for information systems--and our main computer services supplier. CCTA has initiated a programme of consultation and education in which we are participating and, in parallel, we are investigating the scale and complexity of the problem as it affects our own IT systems. We will proceed on the basis of the results of these exercises.
Mr. Clapham:
To ask the President of the Board of Trade how many claims were settled under the coal industry pneumoconiosis compensation scheme from 1989 to date; when he will update the schedule of
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payments under the coal industry pneumoconiosis compensation scheme; if they will be back-dated; and if he will make a statement. [24830]
Mr. Page:
This is a matter for the British Coal Corporation. I have asked the chairman to write to the hon. Member.
Mr. Jamieson:
To ask the President of the Board of Trade in respect of how many liquidated companies in the south-west which received financial support from his Department in each of the last eight years his Department are creditors; and what is the total owed. [20792]
Mr. Oppenheim
[holding answer 14 March 1996]: The information, in respect of recipients of support under the Department's regional, enterprise and technology schemes, is as follows:
| Year of liquidation | Number of companies | Total amount owed |
|---|---|---|
| £ thousand | ||
| 1988 | 4 | 141 |
| 1989 | 10 | 197 |
| 1990 | 18 | 465 |
| 1991 | 12 | 290 |
| 1992 | 13 | 280 |
| 1993 | 10 | 182 |
| 1994 | 8 | 471 |
| 1995 | 4 | 137 |
All but £81,000 of the above has been written off.
Mr. Jamieson: To ask the President of the Board of Trade what safeguards exist in his Department to ensure that conflicts of interest do not arise between employees of his Department or others giving advice in any capacity in his Department's regional offices in respect of the issuing of financial assistance to local businesses; and when they were introduced. [22566]
Mr. Oppenheim [holding answer 25 March 1996]: The Department's conditions of service have for many years required staff to declare any conflicts of interest. Failure to do so can lead to disciplinary action against the member of staff concerned. Under the Department's standard conditions of contract for consultants, external advisers who fail to declare a conflict are exposed to the possibility of termination of contract and other legal action. This has been the position since 1992. The Department announced in February that all future contracts with external advisers will contain a clause requiring them to agree not to take up appointments with firms on which they have previously given advice in relation to regional selective assistance grant applications for a period of two years after payments to these firms have ceased. The Department is considering whether similar action should be taken in respect of other financial assistance schemes.
Mr. Jamieson: To ask the President of the Board of Trade what checks are in operation to ensure that the conditions under which financial assistance is approved by his Department are met by the companies that have received this assistance. [22570]
Mr. Oppenheim [holding answer 25 March 1996]: The checks vary depending on the nature of the assistance given and the risk to which the Department is exposed.
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