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Mr. Pawsey: To ask the Chancellor of the Exchequer what is the tax position of investors in school fee payment plans with education trusts whose charitable status has recently been under review. [1185]
Mr. Jack: The Inland Revenue has decided that, because of advice it gave in the past about the tax treatment of investors in these plans, it will not collect tax on payments made under plans in existence on 20 June 1996. This is subject to the proviso that plans are not changed to increase the benefits which would be payable or replaced by new plans,for example, to provide benefits for a different child.
In principle, investors will be liable to tax on a proportion of any profits made from the school fee payment schemes. However, the educational trusts aim to eliminate any tax charge by ensuring that any profits are donated to charity. If a tax charge were to arise, tax legislation gives investors the right to recover any tax payable from the scheme.
This means that the position of people who have invested in these schemes in the past will be safeguarded and they should not be faced with unexpected tax liabilities. I welcome the Revenue's decision and am satisfied with the protection it provides for existing investors.
Mr. Foulkes:
To ask the Chancellor of the Exchequer what is his latest estimate of the loss to the Revenue as a result of the residence of (a) United Kingdom citizens and (b) companies in (i) Jersey, (ii) Guernsey and (iii) the Isle of Man. [157]
Mr. Jack
[holding answer 28 October 1996]: The information on which to base such an estimate is not available.
Mr. Allen: To ask the Secretary of State for the Environment what further deregulation proposals he has in respect of the Health and Safety Executive. [655]
Sir Paul Beresford: In May 1994, the Health and Safety Commission published a report entitled "Review of Health and Safety Regulation". The review was the most cmprehensive examination of health and safety legislation for 20 years. The Government welcomed and accepted in full its recommendations to modernise and simplify health and safety law and to make other changes designed to reduce administrative burdens on business without lowering necessary standards of protection.
The HSC is now over halfway through its programme of work to implement the recommendations of the report. Details of the activity to be carried out in the present year are set out in the HSC plan of work 1996-97 published last May.
29 Oct 1996 : Column: 65
Mr. Allen:
To ask the Secretary of State for the Environment what discussions he has had with the Health and Safety Executive and the water companies to assess the need for risk assessment on the likelihood of water leaks from company pipes destabilising ground and producing accidents; and if he will make a statement. [443]
Sir Paul Beresford:
None. Works concerned with the repair of leaking pipes are covered by current health and safety legislation which protects the company employees and members of the public. The likelihood of a leaking pipe destabilising the surrounding ground depends on a number of factors, including topography, ground conditions and the force of the leak. The main occurrences are as a result of bursts in mains pipes which are readily visible and are quickly repaired with the necessary safety precautions. All companies have introduced programmes to reduce leakage from their pipes which will also reduce the likelihood of any long-term damage to surrounding ground.
Mr. Gordon Prentice:
To ask the Secretary of State for the Environment if he will include village pubs as businesses eligible for rate relief. [894]
Sir Paul Beresford:
Village pubs will be eligible for discretionary rate relief under the measures introduced in the Local Government and Rating Bill.
Mr. Waller:
To ask the Secretary of State for the Environment what plans he has to review the policies described in "United Kingdom Management Plan for Exports and Imports of Waste". [1182]
Mr. Clappison:
The Government's policies on exports and imports of waste are set out in "United Kingdom Management Plan for Exports and Imports of Waste", which was published in 16 May 1996 following a period of public consultation in 1995 which included consultation with Community member states and the European Commission. The plan came into operation on 1 June and reflects the Government's long-standing policy of self sufficiency in waste disposal and the well-established principle of proximity--that waste should be disposed of in, or as close as possible to, the country of origin.
Since the plan was published, the Government of the Republic of Ireland, through their Department of the Environment, have made a formal request to the Government to allow the continuing export of a limited quantity of specified clinical waste until the end of 1997. This request follows the closure of all but one of the Republic's clinical waste incinerators in recent years as a result of the more demanding emission standards imposed by European legislation. The Government are minded to agree to the request from the Government of the Republic on grounds of public health and safety and in line with the proximity principle. This exemption would be in order to allow the Republic time to bring its own facilities for the environmentally sound disposal of these wastes on stream.
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It has also become apparent that the plan requires clarification on one minor aspect. The plan bans most imports of waste for disposal, but exceptions are made under limited circumstances for mainly chemical wastes moving for high temperature incineration. Since publication of the plan, there have been differences in interpretation of the definition of high temperature incineration. The Government propose therefore to clarify the definition to ensure that only those wastes destined for high temperature incineration in general purpose chemical waste incinerators are permitted in the limited circumstances allowed under the plan.
My Department has therefore today published, for consultation, details of these proposed changes. Copies of the consultation paper have been placed in the Library of the House.
Mr. Waller:
To ask the Secretary of State for the Environment when he proposes to consult local government pension interests in England and Wales as part of the proposals for change initiative on new regulations governing the local government pension scheme; and if he will make a statement. [1183]
Sir Paul Beresford:
In July, I announced that regulations would be prepared to give effect to the proposals for change initiative for the local government pension scheme. Today, draft regulations are being circulated for consultation with local government pension interests in England and Wales. The closing date for comments is 10 January 1997.
The scheme's provisions have been radically recast to provide new, easy-to-read regulations in a more accessible and user-friendly format. These are designed to improve the ease with which local authorities interpreted the scheme's legal provisions and to provide scheme members with a clear set of scheme rules. Many out-of-date regulations have been removed. New opportunities are included for employers to provide optional benefits for scheme members on a share cost basis. In addition, a number of other key improvements and changes are proposed, including an equalisation of future employees' contribution rates.
Existing scheme members' pension entitlements will remain statutorily protected. Eligible members would be able to benefit from any proposed changes to the scheme's provisions.
Further consultations will begin shortly covering new provisions for the investment management of local authority pension funds, revised regulations for dispute resolution within the LGPS and measures to ensure a smooth transition from the existing to the new scheme.
Several regional seminars have been arranged to explain and discuss the proposals with local government and other interested parties as an integral part of the statutory consultation exercise. I know that all LGPS interests will wish to participate fully and ensure that the new scheme regulations will provide a long-term, secure, statutory basis for the LGPS.
Subject to the outcome of these consultations, it is intended to make and lay the new scheme regulations early in 1997, with them coming into effect on 1 April 1998.
29 Oct 1996 : Column: 67
Mr. John Townend:
To ask the Secretary of State for the Environment what action he proposes to take where a local planning authority proposes to adopt policies on affordable housing in its development plan which are inconsistent with Government guidance. [1184]
Mr. Robert B. Jones:
I am grateful for the opportunity to clarify the position concerning the provision of affordable housing through the planning system. The Department's policy guidance on affordable housing is set out in PPG3 revised in March 1992 and circular 13/96, published on 8 August 1996.
PPG1--planning policy guidance 1 March 1992--sets out the position, in paragraph 29, with regard to the need for development plans to avoid conflicts with national or regional policy guidance which are not justified by local circumstances. Guidance on intervention by the Department in the preparation of development plans is set out in paragraphs 4.16 to 4.17 of PPG12--February 1992--and in paragraphs 71 to 76 of the code of practice on development plans--September 1995.
Where a local planning authority has not yet adopted its local plan or unitary development plan, it will have to have regard to circular 13/96 in preparing its plan--sections 12(6), 31(6) and 36 of the Town and Country Planning Act 1990. However, where development plans are very close to adoption--for example, where an inquiry into proposed modifications has already been held and no further inquiry is envisaged--it may be appropriate, in order not to delay the plans, for local planning authority to adopt its plan and subsequently to prepare proposals for alterations to the plan having regard to the policy guidance in circular 13/96.
Local planning authorities should prepare such proposals for alterations expeditiously and agree timetables for alteration with the Government office for the region. In cases where local planning authorities fail to take such action promptly, the Secretary of State may well consider it appropriate to direct them to prepare alterations to their adopted development plans within a specified period--sections 21(1A)(a), 32(2)(a) and 39(1)(a) of the 1990 Act. In relation to affordable housing policies in development plans this approach will constitute a modification of the statement in the last sentence of paragraph 29 of PPG1 which reads;
Where plans which include policies which conflict with the guidance in circular 13/96 had been adopted prior to the publication of the circular, the need to have regard to the circular should be taken into account when the plan is reviewed. All local planning authorities will have to take into account the policy guidance in the new circular in determining applications for planning permission--paragraphs 20 and 21 of PPG1.
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Waste Management
"if no such intervention is made, local authorities may take it that the Secretaries of State are content with the plan at the time of adoption and will attach commensurate weight to it in decisions they make on appeals on called-in applications".
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