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Unemployment

Mr. Willetts: To ask the Chancellor of the Exchequer what proportion of people becoming unemployed cease to be unemployed within a year (a) in total and (b) broken down into (i) under-25s, (ii) those aged 25 to 44 and (iii) those over 44 years. [14939]

Mrs. Liddell: 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.

13 Nov 1997 : Column: 625

Letter from Tim Holt to Mr. David Willetts, dated 13 November 1997:

The Chancellor of the Exchequer has asked me to reply, as the Director of the Office for National Statistics (ONS), to your recent question on the proportion of people who become unemployed that cease to be unemployed within one year, broken down by age groups.

The ONS measure of unemployment, derived from the quarterly Labour Force Survey, is defined on a consistent and internationally recognised basis set out by the International Labour Organisation (ILO) and counts as unemployed people who are: a) without a paid job; b) available to start work within the next two weeks and c) have either looked for work in the last four weeks or are waiting to start a job already obtained.

ONS also publishes the monthly claimant court, which is based on the administrative system which records all people claiming unemployment-related benefits (i.e. Jobseekers Allowance or National Insurance credits) at Employment Service offices on the day of the monthly count, who on that day had signed on as unemployed and available to do any suitable work.

The information requested can only be derived from the claimant count, as the Labour Force Survey is unable to track individuals over time. The results are shown in the attached table.

Proportion of joiners to the claimant count in the 12 months to October 1996 who left the count within 12 months, by age

Age of claimant at start of claim	Proportion of joiners that left within 12 months Per cent.
Under 25	90.5
25 to 44	87.3
Over 44	86.8
All ages	88.4

Source:

JUVOS 5 per cent. cohort file (October 1997).

Fair Trade (Coffee and Tea)

Mr. MacShane: To ask the Chancellor of the Exchequer, pursuant to the oral Statement by the Secretary of State for International Development, Official Report, 5 November, column 332, if he will instruct officials to serve coffee and tea furnished by suppliers who adhere to fair trade standards in his Department. [15499]

Mr. Geoffrey Robinson: I refer to the answer which the Prime Minister has given today. All procurement decisions in the Treasury are based on the Government's policy of value for money.

VAT (Energy-saving Materials)

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer when the Treasury review on reducing VAT on energy-saving materials will be published. [15620]

Dawn Primarolo: Customs have completed their review and are now preparing their report.

Exchange Rates

Dr. Fox: To ask the Chancellor of the Exchequer what measurements of currency of invoice he makes in assessing the short-run impact of exchange rates changes on the economy; and if he will publish the data for the last five years. [15457]

Mrs. Liddell [holding answer 11 November 1997]: Publication of regular data on currency of invoice ceased in 1988. Data for 1984-88 were provided to the

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hon. Member on 4 November 1997, Official Report, columns 101-02 in response to previous questions and the available evidence suggests that use of foreign currency is fairly stable over time.

These data are used to inform the Treasury's assessment of the short-run impact of exchange rate changes on the economy.

Economic and Monetary Union

Mr. Mitchell: To ask the Chancellor of the Exchequer what arrangements he has made for receiving observations on the document "UK Membership of the Single Currency: An Assessment of the Five Economic Tests"; and if he will publish a document containing the comments and conclusions of her Majesty's Government to any material received by them in relation to potential advantages and disadvantages of economic and monetary union. [15747]

Mrs. Liddell: Observations on the document in question can be addressed to Treasury Ministers. The Treasury has already published a report on the pros and cons of EMU by David Currie. There are no plans to publish a further document containing comments and conclusions on that report or on the assessment of the five economic tests. The Chancellor has said that a period of preparation is needed now, to address the practical steps that government and business will need to take before a final decision to join the single currency.

TRADE AND INDUSTRY

Trent Engine

Mr. Laxton: To ask the President of the Board of Trade what progress has been made on Rolls-Royce's application for launch aid for the new Trent engine. [16392]

Mr. Battle: I am pleased to announce that the Government have agreed to provide a long-term investment of up to £200 million over the next four years to Rolls-Royce plc. towards the design and development of its important new range of Trent engines. This will extend the Trent family to enable it to power all the world's new large aircraft. For example, the Trent 500 has been selected by Airbus Industrie as the powerplant for the new A340-500/600, in a privileged partnership announced at the Paris Air Show in June 1997.

The Government's support reflects the importance of this project to the UK economy and the clearly established need for public funds to enable it to go ahead. The agreement with Rolls-Royce embodies the Government's commitment to public-private partnerships and is a marked departure from the previous administration's approach to the civil aviation industry.

The investment is genuinely commercial, and reflects the risk that the taxpayer has been asked to share. The Government and Rolls-Royce will share, as partners, in the future rewards from this engine programme. The Government intend that this approach will inform the consideration of any future applications for support from the civil aviation industry.

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Rolls-Royce is the 10th largest UK investor in research and development and much of its technology is diffused to other sectors of the Uk economy. The Trent engine has already demonstrated its technical excellence and these new developments will help to ensure that Rolls-Royce remains a world leader in aero-engine technology and continues to provide a centre of excellence in the United Kingdom. Success in this new Trent range will bring wider benefits to the many companies which supply Rolls-Royce, and increase competition for worldwide sales of aero-engines to the advantage of UK airlines and airline passengers.

My Department will be discussing this investment with the European Commission.

Computers (Century Date Change)

Mr. Cotter: To ask the President of the Board of Trade if Government Departments have now reported on their preparedness for the year 2000 problem; and when the results will be published. [14994]

Mr. David Clark: I have been asked to reply.

Within Government itself, Departments and Agencies are responsible for their own systems. The Central Information Technology Unit, through its agent the Central Computer and Telecommunications Agency supports the public sector. As part of that support CITU and CCTA have identified a programme of action to ensure that Government's response to the year 2000 problem is co-ordinated and coherent. This involves each Government Department providing me with detailed and costed plans for dealing with the year 2000 date change problem as soon as possible after 1 October 1997.

I am awaiting an analysis and report on these plans from the CITU and the CCTA so that I can form an overall picture of progress, costs and future plans. Once I have done so I will inform Parliament.

US Defence Trade Report

Ann Clwyd: To ask the President of the Board of Trade what assessment she has made of the medium-term implications of US Commerce Department report "Offsets in Defence Trade 1997". [15290]

Mr. Spellar: I have been asked to reply as responsibility for the subject matter falls to the Ministry of Defence.

The US Department of Commerce report "Offsets in Defence Trade 1997" is still under consideration by the Ministry of Defence. I will write to my hon. Friend in due course.

Tax Advice

Mr. Malcolm Bruce: To ask the President of the Board of Trade what estimate she has made of the expenditure by (a) her Department, (b) its agencies and (c) non-departmental public bodies, on (i) tax consultants and (ii) other external tax advice in (1) 1995-96, (2) 1996-97 and (3) 1997-98; and if she will make a statement. [13263]

Mrs. Roche [holding answer 5 November 1997]: Expenditure on external tax advice is undertaken in accordance with Treasury guidance. Information relating

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to expenditure on specific external advice is not held centrally and can only be provided at disproportionate cost.

Chief Executives of the Department's Executive Agencies have been asked to respond separately.

Letter from Seton Bennett to Mr. Malcolm Bruce, dated 13 November 1997:

The President of the Board of Trade has asked me to reply on behalf of the National Weights and Measures Laboratory to your question about expenditure on tax consultants and other external tax advice.

This Agency has not made any use of such consultants during the years in question and our expenditure has therefore been nil.

Letter from Ian Jones to Mr. Malcolm Bruce, dated 13 November 1997:

You tabled a Parliamentary Question to the President of the Board of Trade, for named day reply on 5 November, about expenditure by her Department, its agencies and non departmental bodies on tax consultants and other external tax advice. I have been asked to reply in respect of the Employment Tribunals Service.

The Employment Tribunals Service has not incurred any expenditure in either of the areas you asked about.

Letter from P. R. S. Hartnack to Mr. Malcolm Bruce, dated 13 November 1997:

I am replying for the Patent Office to your Parliamentary Question to the President of the Board of Trade about the cost of tax consultants and external tax advice.

The Patent Office has made no payments in this respect in 1995/96, 1996/97 and 1997/98 to date. No such transactions are expected in the remainder of 1997/98.

Letter from Peter Joyce to Mr. Malcolm Bruce, dated 13 November 1997:

The President of the Board of Trade has asked me to reply to your question about expenditure by The Insolvency Service on tax consultants and other external advice in 1995-96, 1996-97 and 1997-98.

Its expenditure has been as follows:

	1995-96	1996-97	1997-98
Tax Consultants	Nil	Nil	Nil
External tax advice	Nil	£800	Nil

Letter from John Holden to Mr. Malcolm Bruce, dated 13 November 1997:

I have been asked to reply to your question to the President of the Board of Trade concerning i) tax consultants and ii) tax advice and comment as follows:

(i) Companies House has expended the following amounts on tax consultants:

1995-96: £282

1996-97: £141

1997-98: Nil

ii) No other external tax advice has been engaged.

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Letter from Jim Norton to Mr. Malcolm Bruce, dated 13 November 1997:

Mrs. Roche, Parliamentary Under Secretary of State for Small Firms, Trade and Industry, has asked me to reply on behalf of the Radiocommunications Agency to your Question about Agency expenditure on tax consultants and other external tax advice.

The Agency has been advised on PAYE matters by Fraser Russell during the relevant period and the actual and estimated expenditure details are as follows:

(1) 1995-96: £3,150.00

(2) 1996-97: £2,800.00

(3) 1997-98: £2,852.00 (estimated).

All figures exclude VAT, which is recoverable by the Agency.

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