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Opticians (VAT)

Mr. Foulkes: To ask the Chancellor of the Exchequer what has been the total cost of repayments of VAT to opticians; what rebates remained unpaid after the cut off date; what representations he has received on this matter; and what action he proposes to take as a result. [3035]

Mr. Oppenheim: VAT refunds totalling about £200 million have been made to opticians. Customs and Excise does not have information on how many opticians had not made claims by 18 July, and does not hold figures centrally of those who have not received a full refund. Following the Government's announcement on 18 July, and the subsequent exposure of the related draft Finance Bill

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clauses, a number of representations on various aspects of the proposed changes have been received. They are being considered along with all other representations.

NHS Trusts (VAT)

Mr. Jim Cunningham: To ask the Chancellor of the Exchequer what discussions he has had with (a) the Secretary of State for Health and (b) NHS trusts regarding the three year limit for refund claims for VAT payments by NHS trusts; and if he will make a statement. [3240]

Mr. Oppenheim: None. Where trusts incur VAT on contracted-out services relating to their non-business activities, they should not normally need to make retrospective claims for VAT. Under the special arrangements for contracted out services, refunds can be claimed on a current, monthly basis and there is some flexibility at the end of each financial year.

Personal Pensions

Mr. John Greenway: To ask the Chancellor of the Exchequer what progress has been made in the reviews of personal pensions cases referred to in the guidelines issued by the Securities and Investments Board in 1994. [4278]

Mrs. Angela Knight: SIB's guidance to regulators recognised under the Financial Services Act 1986 called for a substantial programme of case reviews to establish whether people who had transferred out of occupational schemes, or opted out of them, or had never joined them, in order to hold a personal pension had done so as a result of mis-selling. Where mis-selling was found to lead to financial loss for investors, SIB has looked to the investment firms responsible to provide redress either by reinstating the investor into the occupational scheme--where this was possible--or by topping up the investor's personal pension.

This review process has proved extraordinarily difficult for all concerned. It has required regulators and investment firms to devote substantial resources to the casework. There have been a number of reasons why progress has been slower than the regulators had expected, some of them arising from factors beyond the control of the firms responsible for carrying out case reviews. However, regrettably there are some investment firms which have made less effort than others to carry out the required casework.

Even when the firms concerned are anxious to bring cases to a speedy conclusion, it has often proved difficult to do so because of the volume and complexity of the information required to evaluate each case in full. For whatever reason they arise, delays are a matter of concern.

In order to speed up progress with reviews, SIB has today issued a statement setting out a streamlined approach to evaluation of scheme benefits for computation of loss or redress. It involves using a simplified model which is designed both to reduce significantly the burden on occupational schemes and to enable firms to reach reliable conclusions by using information which is generally available about the terms of the relevant occupational scheme(s) together with standard or approximate data for missing items. By using this approach, it should be possible for investment firms to conclude case reviews more quickly and thus put matters right for investors more quickly too. Where

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standard or approximate data are used for important items, investors will be informed and have the opportunity to provide detailed data.

The Government welcome this initiative. SIB's model should provide robust results with less administrative input. It means investors who might otherwise have been members of occupational schemes should get their cases sorted out more quickly while investment firms should need to divert resources into this important task for a shorter period. It will also require less input from occupational schemes, which can experience difficulties in providing non-pension information about former members.

The pensions industry must make haste to complete their case reviews, in the interests not only of the financial position of the investors concerned but of restoring the industry's reputation. I also trust that occupational schemes will co-operate in providing information to investment firms and in providing reinstatement for current employees.

For the public service pension schemes, the basic information required is already fully available. Steps have also been taken to ensure that these schemes stand ready to reinstate current employees into the relevant schemes for both future and past service.

At this state, it is not clear how fast cases can now be progressed. Investment firms have much relevant information already and may be able to complete these cases quickly now. SIB now expects the front-line regulators to assess what can be achieved by their members using the new guidance, and then to set and monitor realistic but appropriately challenging targets for completing the review process.

Investment firms have a clear responsibility to give priority to this important task. Their good names and the prospects of the industry depend upon it. I therefore welcome SIB's warning that firms failing to carry out their responsibilities must expect disciplinary action from their regulators. I very much hope that further disciplinary action will not be necessary and that the pensions industry will now move swiftly to put this unfortunate episode behind it.

Earnings

Mr. Hain: To ask the Chancellor of the Exchequer (1) if he will show the number and proportion of manual, non-manual, and all part-time employees on adult rates earning less than (a) £4.42, (b) £5.89 and (c) £6.31 per hour excluding overtime payments for (i) women, (ii) men and (iii) both sexes by standard economic region for Great Britain as a whole and for (1) each county and unitary authority in England, (2) each unitary authority in Wales, (3) each London borough and Greater London as a whole, (4) each unitary authority in Scotland, (5) Great Britain as a whole and (6) England as a whole for April 1996; [518]

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Mrs. Angela Knight [holding answers 30 October 1996]: The information requested falls within the responsibility of the chief executive of the Office for National Statistics. I have asked him to arrange for a reply to be given.

Letter from M. P. G. Pepper to Mr Peter Hain dated 13 November 1996:

The Chancellor of the Exchequer has asked the Director of the Office for National Statistics to reply to your recent questions asking for various figures on the number of and proportion of manual, non-manual part-time and full-time employees on adult rates of pay per hour and per week.


Taxpayer Records

Ms Primarolo: To ask the Chancellor of the Exchquer (1) how security clearance is obtained for all personnel handling classified information at Oracle facilities abroad; [1076]

Mr. Jack [holding answers 30 October 1996]: The Inland Revenue's contract with Electronic Data Service Ltd. and EDS's contract with Oracle have both been amended to enable specialist staff at Oracle facilities abroad, in exceptional circumstances, to have access to copies of subsets of taxpayer records in order to carry out either diagnostic and/or remedial work necessary to support the self-assessment computer system. These amendments ensure that such access is permitted only under the very strict security arrangements specified by

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the Inland Revenue and that Oracle is fully accountable, through EDS, to the Inland Revenue if there are any breaches of confidentiality. All Oracle employees are required to sign an agreement which, among other provisions, commits them to protect any information belonging to the Inland Revenue. If these procedures were to be breached, the agreement provides for a range of sanctions, including summary dismissal. The sanctions and remedies afforded by the criminal or civil laws of the United States and Australia may also flow from any such breaches.

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