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SCOTLAND

Sewerage Charges

Mr. Ernie Ross: To ask the Secretary of State for Scotland if he will grant relief to domestic customers in respect of sewerage charges in 1998-99. [13374]

Mr. Dewar: Yes. I have set aside £29.7 million for this purpose. This sum represents a saving to average band D households of between £17 and £20 in 1998-99. The sum is in line with the previous Government's expenditure plans. This relief, first introduced in 1996, is a transitional arrangement which is to be phased out by April 1999. We shall pay grant to water authorities to compensate for the charge income they will forgo in 1998-99. Of this some £9.0 million will be available to the East Authority, £7.4 million to the North Authority and £13.2 million to the West Authority. The necessary order will be laid before Parliament shortly.

INTERNATIONAL DEVELOPMENT

Goods and Services (Payments)

Mr. Todd: To ask the Secretary of State for International Development if she will list each of the functions relating to payment for goods or services supplied for which her Department is responsible indicating the management systems purchased, all subcontractors involved in the work; co-operative arrangements with other Departments; and the costs of the systems and processes in the last year for which figures are available. [12559]

Mr. Foulkes: My Department has an in-house payment system which processes most payments made in the UK in respect of goods or services supplied under the aid programme. Payments are authorised by the spending departments, which are mainly overseas. After input and review by headquarters staff in the UK these payments are then recorded, checked and cleared for issue by the accounts department in our East Kilbride headquarters. The accounts department's total running costs for 1996-97 were £819,000 but not all these costs related to the processing of payments for goods and services. It would involve disproportionate expense to make a reliable estimate of spending departments' and other headquarters' costs covering only this aspect of work.

In addition, my Department employs five procurement agents: these agents include in their fee a sum to cover payment to suppliers. This fee covers all aspects of procurement agents' services and agents do not separate out that element of their fee which covers payment to suppliers.

Financial aid to partner Governments under the terms of loan or grant agreements is made by Crown Agents Financial Services which charged £589,000 for this service in 1996-97. Some payments are also made overseas by embassies and high commissions on our behalf.

PHARE

Sir Richard Body: To ask the Secretary of State for International Development what representations she has

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made in respect of the financial irregularities noted by the Court of Auditors in its special report concerning the decentralised system for the implementation of the PHARE programme between 1990 and 1995. [12503]

Mr. Foulkes: We maintain regular contacts with the commission (DG1A) in order to help improve the efficiency and effectiveness of PHARE implementation and financial control procedures. We agree with the findings of the report and will maintain pressure for improvements.

Kenya

Mr. McDonnell: To ask the Secretary of State for International Development what are the current levels of aid to Kenya; and how much is provided to (a) the Government of Kenya and (b) non-governmental organisations. [12553]

Mr. Foulkes: British aid to Kenya in 1996-97 was about £25 million, 40 per cent. of which was provided through non-government channels.

Mr. McDonnell: To ask the Secretary of State for International Development if she will provide support to human rights monitors in Kenya. [12551]

Mr. Foulkes: My Department has offered to provide finance to assist with an election observing programme by three well-respected non-government organisations in Kenya.

Mr. McDonnell: To ask the Secretary of State for International Development when she next expects to meet representatives of the Kenyan Government to discuss human rights issues. [12550]

Mr. Foulkes: My right hon. Friend the Secretary of State for International Development met President Moi and Finance Minister Mudavadi in Nairobi on 6 October 1997. During these meetings she explained Britain's commitment to the elimination of poverty in poorer countries and our intention to work with those Governments which are themselves committed to taking the full range of measures necessary to achieve this aim including the improvement of human rights. She has no plans to meet representatives of the Kenyan Government.

TREASURY

VAT (Schools)

Dr. Vis: To ask the Chancellor of the Exchequer if all state schools are registered for VAT, and what the differences are between VAT treatment for (a) local education authority schools, (b) grant-maintained schools and (c) private educational facilities. [12776]

Dawn Primarolo: Local Education Authority schools are covered by the VAT registration of their parent local authority. Other schools may be registered for VAT in respect of non-education activities. Education itself is exempt from VAT, so no school has to charge VAT on its provision of education.

There are some differences between different types of school in respect of recovery of VAT incurred on their expenditure. Local Education Authority schools can recover all VAT under the special provisions made for

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local authorities; other schools cannot, though grant-maintained schools are compensated for this by central Government grant, and independent schools can take non-recoverable VAT into account in setting the level of their fees.

Financial Services Regulation

Mr. Stephen Timms: To ask the Chancellor of the Exchequer if he will make a statement on his proposals for reform of financial services regulation. [13096]

Mr. Darling: My right hon. Friend the Chancellor of the Exchequer has decided that the new single regulatory organisation is to be called the Financial Services Authority. This name has been adopted by the body formerly known as the Securities and Investments Board.

The draft legislation to be published next summer will include draft statutory objectives for the Financial Services Authority. These are expected to include objectives in the following areas:
the promotion and maintenance of confidence in the UK financial sector and markets;
protecting consumers by ensuring that firms are competent and financially sound and give their customers confidence in their integrity, while recognising customers' own responsibility for their financial decisions;
promoting the improvement of public understanding of the benefits and risks associated with financial products through the improvement of information and advice;
monitoring, detecting and preventing financial crime.

We also intend to set some objectives to condition how the Financial Services Authority goes about its job. We want it to:
be efficient and economic, ensuring that costs and restrictions on firms are proportionate to the benefits of regulation;
facilitate innovation in financial services;
take account of the international nature of financial regulation and financial services business.

The Financial Services Authority has today published a launch document with more details of the preparations for the new regulatory structure. Copies have been placed in the Library of the House.

The Financial Services Authority has also published today consultation documents on practitioner and consumer involvement and the basis for charging for banking supervision. The details of the new regulatory structure and the Government's intentions for the draft legislation will be subject to further consultation.

Indirect Taxation

Sir Richard Body: To ask the Chancellor of the Exchequer if he will make a statement on the European Commission proposals to adopt a new procedure concerning the implementing measures relating to indirect taxation, as observed in IP/97/653. [12504]

Dawn Primarolo: In common with most other member states, the UK is committed to the maintenance of unanimity in the Council as the basis for EC decision-making on indirect tax matters. The UK is thus opposed to the European Commission's proposals.

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Taxation (Expatriates)

Mr. Swayne: To ask the Chancellor of the Exchequer what plans he has to change the arrangements for the taxation of expatriates. [12845]

Dawn Primarolo: All aspects of the UK tax system are kept under regular review.

National Assets Register

Mr. Alan Keen: To ask the Chancellor of the Exchequer when he expects to be able to publish the National Assets Register. [12581]

Mr. Darling: The Government is currently working towards the completion of the National Asset Register and hopes to publish it in the second half of November 1997.


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