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Economic and Monetary Union
Mr. Llew Smith: To ask the Chancellor of the Exchequer what proposals he has drawn up in regard to recital 13 of the European Commission's draft regulation on surveillance and co-ordination of budgetary positions of European Union member states in respect of the Maastricht treaty articles on economic and monetary union. [6790]
Mr. Kenneth Clarke: The text of the draft regulation remains to be negotiated by the Council of Ministers in due course. I now expect these negotiations to start early next year. Under the treaty provisions negotiated at Maastricht, no new economic policy obligations can be imposed on the UK unless we decide to join the single currency.
Mr. Smith: To ask the Chancellor of the Exchequer if he will make a statement on the implications of the stability pact to be established as part of the preparations for economic and monetary union for levels of employment and security of employment. [6808]
Mr. Clarke: I refer the hon. Member to the statements that I made to the House on 25 November, Official Report, columns 21-43, and on 3 December, Official Report, columns 797-813. By helping to ensure a stable macroeconomic environment in the third stage of EMU, a credible and effective stability pact would help provide a strong foundation for employment-creating growth. Negotiations on the details of a pact which might prove credible and effective are continuing.
Mr. Smith: To ask the Chancellor of the Exchequer what proposals he plans to put forward in respect of article 109j(3) of the Maastricht treaty. [6830]
Mr. Clarke: The Council of Economic and Finance Ministers agreed at its meeting on 11 November, under article 109j(2) of the EC treaty, that there is not at present a majority of countries which fulfil the conditions for the adoption of the single currency and that stage 3 of economic and monetary union will not therefore start in 1997. It has recommended its finding to the Council, meeting as Heads of State and Government, for a final decision under article 109j(3) in Dublin on 13 and 14 December. This recommendation has been submitted for scrutiny in the usual way.
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Mr. Smith: To ask the Chancellor of the Exchequer what response he has made in respect of the European Commission proposals for (a) council regulation on the strengthening of the surveillance and co-ordination of budgetary positions, and (b) council regulation on speeding up and clarifying the implementation of the excessive deficit procedure, COM (96) 496 final of 16 October; and if he will place copies in the Library. [6789]
Mr. Clarke: I submitted to Parliament an explanatory memorandum on the Commission's published proposals on 31 October 1996 and subsequently made statements to the House on 25 November Official Report, columns 21-43, and on 3 December Official Report, columns 797-813, clarifying the Government's position and approach to the draft stability pact regulations. I also wrote to all Members of Parliament on 22 November 1996 on this same subject, arranging for copies of the letter to be deposited in the Libraries of both Houses.
Sir John Stanley: To ask the Chancellor of the Exchequer what assessment he has made of the implications of Britain's opt-out from the final stage of EMU for the application of provisions of the stability pact to Britain while the opt-out is maintained. [5443]
Mr. Clarke [holding answer 21 November 1996]: The Commission's draft regulations on the stability pact imply no sanctions or new policy obligations that can be imposed on those member states that do not participate in a single currency. The UK's opt-out will remain effective for as long as we choose to maintain it.
Tax (Tobacco Products)
Mr. Cummings: To ask the Chancellor of the Exchequer what estimate he has made of the loss in tobacco tax revenue for (a) 1995-96 and (b) 1996-97 arising from (i) legal and (ii) illegal imports. [6899]
Mr. Oppenheim: Customs' latest estimate of total tax revenue--excise duty and VAT--lost from legitimate personal imports of tobacco products purchased duty paid in other EU member states is £80 million for the calendar year 1995. Customs estimate that total tax revenue of £70 million was lost from this activity in calendar year 1994.
Customs' current estimate of revenue evaded by smuggling of tobacco products is £560 million per year. This figure does not include any amount for commercial fraud. The actual loss to the Exchequer could be less than the amount evaded if some smuggling represents additional consumption rather than substituting for similar goods bought in the UK. Customs have no official estimate of the extent of such additional consumption, if any. There was no previous official estimate of revenue evaded by smuggling.
Interest Rates
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer if he will list the levels of real interest rates for each year since 1976 and for each quarter since the first quarter of 1992. [7387]
Mrs. Angela Knight: Data on short-term interest rates and inflation can be found in "Financial Statistics" table 7.10 and "Economic Trends" table 1.1, respectively. Both publications are available from the House Library.
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Private Finance Initiative
Mr. Chidgey: To ask the Chancellor of the Exchequer how many private finance initiative contracts have been let in each quarter by the Departments of (a) Health, (b) Education and Employment and (c) Transport since the introduction of the private finance initiative. [7724]
Mr. Jack: Information at that level of detail is not held centrally. Questions about PFI in particular Departments are a matter for the Departments concerned.
Mr. Chidgey: To ask the Chancellor of the Exchequer what was the Government's initial forecast for private finance initiative uptake by November; and what figures were achieved. [7723]
Mr. Jack: No target was set for November 1996. By April 1996, £4.8 billion of PFI deals had been agreed, against a target of £5 billion; £7 billion of PFI deals have now been agreed and we remain on course to meet the target of £14 billion of agreed PFI deals by the end of 1998-99.
Finance Bill
Mr. Matthew Banks: To ask the Chancellor of the Exchequer when the Finance Bill will be published; and if he will make notes on clauses available to hon. Members as usual. [8046]
Mr. Jack: The Finance Bill will be published on Friday 3 January 1997. Explanatory notes on the Bill's clauses will be placed in the Vote Office and the Library of the House that day. In addition, the public will be able to obtain copies of the explanatory notes from the Treasury. They will also be available on the Internet at http://www.hm treasury.gov.uk. The explanatory notes build on the information previously provided in the notes on clauses by containing fuller explanatory material for each clause and schedule in the Bill, and aim to provide Parliament with a better understanding of the purpose and effect of the Government's proposals.
EU Budget
Mr. Matthew Banks: To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the European Union Budget Council held on 19 November. [8174]
Mr. Oppenheim: Sir Stephen Wall, United Kingdom representative to the European Union, represented the United Kingdom at the Budget Council on 19 November. The Council considered the European Parliament's proposed changes to the draft budget which the Council established in July--see Official Report, 12 November 1996, columns 161-62--and established a second reading draft budget for 1997.
The Council's second reading draft budget totals 88,759 million ecu or £69,425 million in commitment appropriations and 81,877 million ecu or £64,042 million in payment appropriations. The second reading draft budget is 1,470 million ecu or £1,150 million in commitments and 3,930 million ecu or £3,074 million in payments below the financial perspective ceilings and at 1.16 per cent. of Community gross national product is substantially within the new own resources ceiling of 1.24 per cent. The following table compares the outcome of the Budget Council with the proposals in the Commission's
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preliminary draft budget and with the proposals in the European Parliament's draft budget, with reference to the financial perspective ceilings.
The European Parliament will consider the draft budget for 1997 at its plenary session in December. The 1996 Community budget is expected to be adopted by the Parliament on 12 December, to take effect from 1 January 1997.
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| £1= 1.2785 ecu | ||||||||
|---|---|---|---|---|---|---|---|---|
| Financial perspective ceilings(2) | Preliminary draft budget | European Parliament first reading draft budget | Budget council second Reading Draft budget | |||||
| mecu | £ million | mecu | £ million | mecu | £ million | mecu | £ million | |
| Commitment appropriations | ||||||||
| 1. EAGGF guarantee | 41,805 | 32,698 | 41,805 | 32,698 | 40,805 | 31,916 | 40,805 | 31,916 |
| 2. Structural operations | 31,477 | 24,620 | 31,477 | 24,620 | 31,477 | 24,620 | 31,477 | 24,620 |
| 3. Internal policies | 5,603 | 4,382 | 5,523 | 4,320 | 5,529 | 4,325 | 5,462 | 4,272 |
| 4. External action | 5,622 | 4,397 | 5,528 | 4,324 | 5,495 | 4,298 | 5,400 | 4,224 |
| 5. Administration | 4,352 | 3,404 | 4,369 | 3,418 | 4,284 | 3,350 | 4,245 | 3,320 |
| 6. Reserves | 1,158 | 906 | 1,58 | 906 | 1,158 | 906 | 1,158 | 906 |
| 7. Compensation | 212 | 166 | 212 | 166 | 212 | 166 | 212 | 166 |
| Union priorities | -- | -- | -- | -- | 300 | 235 | -- | -- |
| Negative reserve | -- | -- | -- | -- | 73 | 57 | -- | -- |
| Total: Commitment appropriations | 90,229 | 70,574 | 90,072 | 70,452 | 89,187 | 69,759 | 88,759 | 69,425 |
| Total: Payment appropriations | 85,807 | 67,115 | 84,521 | 66,110 | 82,515 | 64,541 | 81,877 | 64,042 |
(2) Throughout this reply the rate of £1=1.2785 ecu has been used (the rate notified in the Official Journal as prevailing on the last working day of the last month (31 October).
5 Dec 1996 : Column: 743
5 Dec 1996 : Column: 743
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