23 Jun 1997 : Column: 343
Written Answers to Questions
Monday 23 June 1997
TREASURY
Gross Domestic Product
Mr. Townend: To ask the Chancellor of the Exchequer what are the Government's long-term targets for the percentage of Gross Domestic Product which public expenditure constitutes. [3355]
Mr. Darling: The Government is currently undertaking a comprehensive review of public expenditure and will determine its plans in the light of the findings and the prospects for the economy generally.
Public Expenditure
Mr. Maples: To ask the Chancellor of the Exchequer what proposals he has to change the convention which governs what capital spending by local authorities is included in the public spending total. [3251]
Mr. Darling: I have no plans to change the definition of local authority capital spending in General Government Expenditure. The definition is consistent with international statistical conventions as laid down in the European System of accounts (ESA).
Tax Bands
Mr. Boswell: To ask the Chancellor of the Exchequer what is the current starting rate of income tax and the width of the lowest tax band in each member state of the European Union. [3452]
Dawn Primarolo: The information is given in the table. It is based on OECD information for 1995 or 1995-96 tax years, the latest for which comprehensive information is available. The income figures relate to earned income of single taxpayers and have been converted to £ sterling using 1995 OECD purchasing power parity figures.
Notes:
(1) Central income tax subject to surcharge of 3 per cent. in 1995. Local income taxes, averaging 7 per cent. of central tax (before surcharge) are also charged.
(2) Local income tax at average rate of 30.6 per cent. is charged in addition to 13 per cent. central rate.
(3) Local and church taxes at average rate of 18.8 per cent. are also charged and operate at a lower tax threshold than central tax.
(4) Excludes solidarity surcharge (7.5 per cent. of tax) and church tax (9 per cent. of tax).
(5) All taxpayers with any employment income pay tax at a flat rate of about £7 a year. Apart from this, central government tax is only charged on incomes above £13,700 at a rate of 25 per cent. However, local income tax, at an average rate of 31.5 per cent., is charged on all incomes above £610.
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Computers (Millennium Date Change)
Mrs. May: To ask the Chancellor of the Exchequer what estimate he has made of the cost (a) to the Treasury and (b) to public expenditure throughout Government of making the adaptations to computer programmes required by the change to the year 2000. [3540]
Mr. Darling: The Treasury and other Government departments are producing, by October 1997, fully costed plans for undertaking the work needed.
The cost of the work will be met from within the published departmental expenditure plans for 1997-98 and 1998-99.
Capital Gains
Mr. Jack: To ask the Chancellor of the Exchequer how he defines short-term capital gains. [3364]
Dawn Primarolo: I refer the right hon. Gentleman to the answer I gave him on 3 June, column 152.
Private Finance Initiative
Mr. Timms: To ask the Chancellor of the Exchequer if he will report the Government's response to Mr. Malcolm Bates's review of the Private Finance Initiative; and if he will make a statement. [5392]
Mr. Geoffrey Robinson: I am today placing in the Members' Library a summary of the Bates review and a list of all its recommendations. It is a thorough piece of work for which the Government is most grateful. It builds upon the 12 Point Plan for Partnership originally published in the Labour Policy's Business Manifesto.
The Government promised to re-invigorate the PFI and that is what we have done. Malcolm Bates has applied a businessman's mind to this policy and produced specific recommendations which we accept in full as an agenda for action.
The review says that the PFI can secure improved value for money when handled well. But the public sector structure must be simplified and responsibilities made entirely clear.
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Departments and agencies must be accountable for their own procurement decisions. However, it identifies a temporary need for a strong central input to help ensure delivery of quality transactions that provide a sound basis for future business.
To meet this need, we will, as recommended, create a new Treasury Private Finance Taskforce--combining central project and policy expertise. Its Chief Executive on the projects side will report direct to me. We will make an appointment in due course.
This individual will focus on the quality of PFI transactions. He will be supported by 6-8 Executives from the private sector with direct project management experience and financial skills. Until now, the Treasury has been involved too late in the process, leading to frustration and increased costs. The Taskforce will help central government departments and agencies road-test significant projects for their commercial viability before procurement begins.
The Taskforce's policy side will also have its hands full. The review includes specific recommendations to produce rapidly more standardised documentation for key stages of the procurement process. The Government wants greater certainty wherever it can be provided to help reduce bidding costs.
The Private Finance Panel will be stood down. I have written to all members today thanking them for their past contribution. The review acknowledges the immense value that high calibre members made in freely giving their time to meet key players, speak at conferences, write articles and support a growing band of Executives. However, it concluded that their on-going role was unclear and that there was a need to simplify organisational structures.
The recommendation to strengthen departmental Private Finance Units alongside the new Treasury Taskforce also takes away the need for the Private Finance Panel Executive. The Government accepts the Review recommendation that it should be disbanded by the end of September. Opportunities will, of course, exist within the new structure for those individuals currently with the Executive who have the skills and experience now required.
The agenda for action is detailed, practical and full of common sense. It will be welcomed as long overdue by companies and departments who have struggled for two long under previous management.
Mrs. Clwyd:
To ask the Secretary of State for Foreign and Commonwealth Affairs what discussions were held between the British and German Governments prior to granting a license allowing the export of Henckler Koch MP5 sub-machine guns to Indonesia in 1995. [2776]
Mr. Fatchett:
I am not aware of any such discussions.
Mrs. Clwyd:
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will identify by name,
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rank and unit, the Indonesian (i) military, (ii) security, (iii) police, (iv) paramilitary or (v) special forces personnel invited by the British Government to attend the forthcoming COPEX Exhibition at Farnborough in September 1997. [3585]
Mr. Fatchett:
I refer the hon. Member to the answer given by my hon. Friend the Under-Secretary of State for Defence on 18 June, column 217.
Mrs. Clwyd:
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the visas granted to Indonesian (a) military, (b) security, (c) police, (d) paramilitary and (e) special forces personnel invited by the British Government or private companies to attend the forthcoming Royal Navy and British Army Equipment Exhibition at Farnborough in September. [3588]
Mr. Fatchett:
We have not been asked to issue visas specifically for Indonesians attending the RNBAEE 97 at Farnborough.
Mrs. Clwyd:
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will identify by name, rank and unit, such Indonesian (a) military, (b) security, (c) police, (d) paramilitary and (e) special forces personnel invited by the British Government to attend the forthcoming Royal Navy and British Army Equipment Exhibition at Farnborough in September 1997. [3584]
Mr. Spellar:
The following Indonesian personnel have been invited to attend this year's Royal Navy and British Army Equipment Exhibition:
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