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24 Nov 1997 : Column: 357

Written Answers to Questions

Monday 24 November 1997

TREASURY

Tax Avoidance Schemes

Mr. Heathcoat-Amory: To ask the Chancellor of the Exchequer if, in his review of avoidance of direct taxes, he will examine the use of Jersey-based capital gains tax avoidance schemes by British companies. [12587]

Dawn Primarolo: Yes.

Economic and Monetary Union

Ms Kelly: To ask the Chancellor of the Exchequer if he will make a statement on the legislation which would need to be enacted prior to the United Kingdom joining a single currency. [15338]

Mrs. Liddell: The European Communities (Amendment) Act 1993 requires an Act of Parliament before the UK would be able to move to the third stage of economic and monetary union. In addition, as confirmed in the Chancellor's statement on 27 October 1997, Official Report, columns 583-88, whenever a decision to enter is taken by the Government, it should be put to a referendum of the British people, and this would require legislation. Separately, the Bank of England would need to be compatible with the terms of the Treaty which apply if we were to join and there would be changes needed to related UK legislation.

Mr. Mitchell: To ask the Chancellor of the Exchequer from what decisions relating to the European Single Currency--other than those determined in treaties or protocols concerning the operation of the European Monetary Institute, the European System of Central Banks or the statutes and duties of the European central banks--member states unable or unwilling to participate in the single currency, or the representatives of their respective central banks, will be excluded. [15436]

Mrs. Liddell: All decisions relating the European Central Bank (ECB) will be taken pursuant to the Treaty establishing the European Community, including its various Protocols, in particular Nos. 3, 4, 8 and 11, which collectively lay down the rights and obligations of participating and non-participating member states and their National Central Banks.

Mr. Brazier: To ask the Chancellor of the Exchequer what representation he has made concerning the formation of a working group of first-round EMU participants distinct from the ECOFIN group. [16987]

Mrs. Gorman: To ask the Chancellor of the Exchequer what is his policy on the proposal of the French Government for a Conseil de l'Euro. [17002]

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Mrs. Liddell [holding answer 19 November 1997]: The UK is in agreement with all other Member States that the ECOFIN Council will remain the decision-making body for economic and financial issues after the start of stage three of EMU, as it is now.

Tax and Benefits Task Force

Mr. Gibb: To ask the Chancellor of the Exchequer if he will list the members of the Tax and Benefits Task Force chaired by Mr. Martin Taylor. [16845]

Mr. Gordon Brown: Martin Taylor chairs a Task Force on which the Treasury, Inland Revenue, the Department of Social Security and Department for Education and Employment are represented by senior officials. It is not the usual practice to name individual officials.

Public Appointments

Mr. Vaz: To ask the Chancellor of the Exchequer how many public appointments he has made since 1 May; and how many and what percentage of these (a) receive remuneration and (b) are of (i) Afro-Caribbean and (ii) Asian origin. [16782]

Mrs. Liddell: The Chancellor's Department and Agencies have made 31 public appointments since 1 May 1997, of which eight (26 per cent.) receive remuneration. The information about ethnic origin cannot be provided since to do so would risk identifying individuals without their consent. My right hon. Friend the Chancellor of the Duchy of Lancaster has provided information for all departments in an aggregated form.

Wealth Tax

Dr. Vis: To ask the Chancellor of the Exchequer if he will calculate the revenue impact of imposing an additional 1 per cent. annual tax on individuals whose assets exceed £1 million. [17040]

Dawn Primarolo: It is not possible to assess precisely the number and wealth of millionaires in the United Kingdom at any one time. The only available estimates are derived from inheritance tax data on a year-of-death basis. On this basis it is provisionally estimated that living individuals with net marketable wealth--that is, excluding pension rights--exceeding £1 million in 1994, the latest available year, owned assets totalling £116 billion, of which 1 per cent. represents just over £1 billion.

Exchange Rates

Dr. Fox: To ask the Chancellor of the Exchequer pursuant to his answer of 13 November, Official Report, column 625, on exchange rates, if he will publish the available evidence which suggests that the use of foreign currency is fairly stable over time. [16899]

Mrs. Liddell [holding answer 20 November 1997]: The following figures, which are the most recent available, show exports and imports invoiced in foreign currency from 1979-88. It suggests that the proportion of trade invoiced in foreign currency was generally stable over that period, after allowing for a likely once-off adjustment by businesses to the lifting of foreign exchange controls.

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Proportion of UK exports invoiced in sterling and foreign currency (by value) 1979-88(1)

Year	Invoiced in currency of destination country(2)	Invoiced in US dollars	Invoiced in other foreign currencies	Invoiced in sterling
1979	12	12	2	74
1980	11	11	2	76
1981	16	9	1	74
1982	18	15	2	65
1983	19	14	2	65
1984	22	15	0	63
1985	23	18	0	59
1986	26	20	3	54
1987	24	19	3	57
1988	24	15	3	62

(1) Data 1979 based on annual figures; 83-88 based on November transactions except for 1987, which is based on May data.

(2) 'Invoiced in currency of destination country' includes US dollar for US/UK trade.

Proportion of UK imports invoiced in sterling and foreign currency (by value) 1979-88(3)

Year	Invoiced in importing country currency(4)	Invoiced in US dollars	Invoiced in other foreign currencies	Invoiced in sterling
1979	38	21	3	38
1980	38	27	3	32
1981	41	23	1	3
1982	41	22	2	34
1983	44	19	2	35
1984	41	25	1	34
1985	43	24	1	32
1986	46	17	2	37
1987	46	13	1	40
1988	41	16	2	43

Notes:

(3) Data 1979-83 annual figures; 83-88 based on September transactions except for 1987 which is based on March data.

(4) 'Invoiced in currency of importing country' includes US for US/UK trade.

Sources:

'British Business' 31 May 1985, 17 January 1986 and 24 April 1987 (DTI) and 'Business Bulletin' 15 December 1989 (CSO).

Airbus

Mr. Jack: To ask the Chancellor of the Exchequer if he will make a statement on the reasons for his Department not having approved the grant of launch aid to British Aerospace in respect of its involvement in the Airbus A340-500 and 600 aircraft. [17255]

Mr. Darling [holding answer 21 November 1997]: The Government have yet to announce their decision concerning the application for assistance from British Aerospace.

National Asset Register

Mr. Timms: To ask the Chancellor of the Exchequer when he expects to be able to publish the National Asset Register. [17817]

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Mr. Darling: I am publishing The National Asset Register today. Copies are available in the Vote Office.

The National Asset Register fulfils the Government's Manifesto commitment to publish a thorough inventory of the assets they own. Publication demonstrates the Government's commitment to greater openness and accountability by letting the nation see what assets the nation owns.

This is the first time that any Government have had such a comprehensive picture of all the assets they hold. The National Asset Register will be an invaluable starting point in helping departments to identify whether they are making the best use of their assets and achieving value for money. It demonstrates the Government's commitment to maintaining prudent and sound financial management.

To help departments do this the Treasury has also introduced two new measures to encourage departments to get the best from their assets:

First, at present any receipts from the sale of surplus assets must be surrendered to the Consolidated Fund unless the Treasury agrees that the department concerned can retain them to increase its gross spending power. (The receipts then count as negative public expenditure so do not increase net spending or the Control Total.)

From 1 April 1998 until 1 April 2001 when the new resource budgeting arrangements are in place, the Treasury will allow departments to retain 100 per cent. of the receipts from assets of which they dispose, subject to certain limits. These limits are that:

the value of an individual sale does not exceed £100 million;
the value of the total sales for any financial year does not exceed 3 per cent. of a department's cash-limited vote; and
the receipts can only be used to finance capital spending. They cannot be used to finance current spending.

These limits are necessary to ensure that these sales do not distort the Government's overall spending allocations.

Second, Departments are also being encouraged to make better use of assets they retain. This more effective management may include increasing commercial activity which has generally been constrained by lack of incentives for departments and by current Treasury guidance.

Under the new arrangements Departments will be helped to maximise the value they retain from their assets by

being able to retain receipts from commercial activity;
being encouraged to develop relationships with the private sector to bring in any necessary skills and expertise;
the Treasury's Private Finance Task Force will provide support to Departments; and
this new approach in being developed in partnership with departments which are being consulted on the arrangements.

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