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Correspondence

Mr. Salmond: To ask the Chancellor of the Exchequer when the Paymaster General intends to reply to the letter of 20 July from the hon. Member for Banff and Buchan regarding his constituent Mr. Hutchison. [63649]

Dawn Primarolo [holding answer 14 December 1998]: A reply to the hon. Member's letter has been issued.

Tax Havens

Mr. Gibb: To ask the Chancellor of the Exchequer if he will list current proposals from the Code of Conduct Group to tackle harmful tax competition from tax haven jurisdictions; and if he will list the jurisdictions concerned. [62330]

Dawn Primarolo [holding answer 7 December 1998]: Under the Code Member States have committed themselves to promoting the principles of the Code in third countries and in territories to which the treaty does not apply. Member States with dependent or associated territories will do so, within the framework of their constitutional arrangements.

Charities

Mr. Gibb: To ask the Chancellor of the Exchequer what assessment he has made of the effect of the proposal for a common EU withholding tax on the UK charities sector. [62335]

17 Dec 1998 : Column: 756

Dawn Primarolo [holding answer 7 December 1998]: The draft EC directive on taxation of savings would only affect charities if they borrow from individual investors overseas. It would not apply to interest paid to a charity.

EU Withholding Tax

Mr. Gibb: To ask the Chancellor of the Exchequer if he will list the financial services other than Eurobonds which will be affected by the current proposal for a common EU withholding tax. [62333]

Dawn Primarolo [holding answer 7 December 1998]: The draft EC directive on taxation of savings would apply to cross-border payments of interest to individuals in the EC.

Sir Teddy Taylor: To ask the Chancellor of the Exchequer if the current proposals in the EU on the withholding tax make provision for exemptions for financial centres, with particular reference to (a) Luxembourg and (b) Dublin. [62516]

Dawn Primarolo [holding answer 7 December 1998]: There is no provision in the draft Directive on taxation of savings for any such exemption.

Tax Records

Mr. Cousins: To ask the Chancellor of the Exchequer (1) if he will list the implementation milestones with their dates for the introduction of the online tax records information system; and to what extent these have been achieved to date; [64418]

Dawn Primarolo: The Inland Revenue currently has no plans to introduce an 'online tax records information system'.

Departmental Staff (Retirement)

Mr. Cousins: To ask the Chancellor of the Exchequer if it is the policy of the Inland Revenue to enforce retirement of its staff at age 60 years. [64414]

Dawn Primarolo: Since 1993 the normal retirement age for everyone in the Inland Revenue has been 60 and this applies to both men and women. The Department's policy is that a decision to retain someone to work beyond 60 would be based on a business need, not on any personal consideration. So, only where there is an exceptional operational need, for example when a particular skill cannot quickly be replaced, is an exception allowed.

Pensions

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer what plans he has to make the lump sum element of a pension taxable. [64251]

Ms Hewitt: The Government's policy on pensions is set out in the Green Paper "A New Contract for Welfare: partnership in pensions" published on 15 December 1998. Copies have been placed in the Library.

17 Dec 1998 : Column: 757

Collective Investment Schemes

Mr. Flight: To ask the Chancellor of the Exchequer when he expects to publish the draft provisions on collective investment schemes to be included in the Financial Services and Markets Bill; and what opportunity there will be for interested parties to comment on the proposed regulations. [64291]

Ms Hewitt: There will be an opportunity for interested parties to comment when the relevant provisions have been drafted.

Public Engagements (Ministers)

Mr. Maude: To ask the Chancellor of the Exchequer if he will list the public engagements undertaken since 1 October by (a) him, (b) the Chief Secretary, (c) the Paymaster General, (d) the Financial Secretary and (e) the Economic Secretary. [63239]

Ms Hewitt: Treasury Ministers have undertaken numerous public engagements since 1 October.

Third World Debt

Mr. Cox: To ask the Chancellor of the Exchequer if he will list the debt burden of each of the 10 poorest countries in the world. [63338]

Ms Hewitt: World Bank data in its 1998-99 World Development Report show the following external debt burdens for the 10 poorest countries:

$ billion
CountryExternal debt
Mozambique5.8
Ethiopia10.0
Democratic Republic Congo12.8
Burundi1.1
Sierra Leone1.1
Niger1.5
Tanzania7.4
Rwanda1.0
Nepal2.4
Malawi2.3

The accuracy of these data should be treated with caution due to the poor data collection and reporting mechanisms of many poor countries.

17 Dec 1998 : Column: 758

Euro Preparations Unit

Mr. Bercow: To ask the Chancellor of the Exchequer if he will place in the Library the minutes of meetings of the Euro Preparations Unit since 27 January 1998. [64187]

Ms Hewitt: The Standing Committee on EMU preparations met for the first time on 27 January 1998. Minutes of its meetings are routinely placed in the House Library.

Human Rights

Dr. Cable: To ask the Chancellor of the Exchequer what assessment he has made of the compatibility of the disciplinary provisions contained in the proposed Financial Services and Markets Bill with the European Convention on Human Rights in the form in which the Convention will be incorporated into the United Kingdom law under the Human Rights Act 1998, with particular reference to Article 6 of the Convention. [64086]

Ms Hewitt: It is the Government's intention that the Financial Services and Markets Bill will be compatible with the Convention rights.

New Cars (EU)

Mr. William Ross: To ask the Chancellor of the Exchequer if he will list for each country in the EU the percentage tax or taxes paid on the price of a new car by the citizens of (a) that country and (b) other countries. [64201]

Dawn Primarolo: This information is not held.

EU Budget

Mr. William Ross: To ask the Chancellor of the Exchequer if he will list for each country in the European Union for each of the last 10 years and the current year (i) their net contribution, (ii) their net receipts from the EU Budget, (iii) what percentage these sums represented of the GDP of each nation in each year and (iv) what each sum in each case was in pounds sterling per capita of the country's population. [64194]

Ms Hewitt: The requested information is shown in the tables.

17 Dec 1998 : Column: 757

Table 1--Net contributions by Member States 1988-97 (million European currency units)

Country1988198919901991199219931994199519961997
Belgium(30)995.01,123.9773.9-416.6-165.5-59.6309.3311.2746.2989.7
Denmark-330.6-174.2-422.5-346.3-276.6-376.9-198.9-305.7-193.4-24.0
Germany6,107.26,530.65,550.48,796.89,697.611,830.313,637.113,431.010,894.911,228.1
Greece-1,491.6-1,998.2-2,470.2-2,926.4-3,604.0-4,136.7-3,851.9-3,488.9-3,932.7-4,194.0
Spain-1,334.230.7-1,711.3-2,294.6-2,739.6-3,090.4-3,116.6-7,218.1-5,972.2-5,850.5
France1,780.92,946.31,804.92,449.51,443.61,019.62,626.41,727.2459.8985.0
Ireland-1,159.3-1,340.8-1,892.5-2,357.3-2,140.1-2,371.9-1,752.0-1,886.9-2,260.3-2,623.6
Italy-124.21,428.8416.71,388.6504.31,525.42,540.4614.11,402.3323.1
Luxembourg(30)67.464.660.0-159.7-164.0-189.6-253.744.879.364.6
Netherlands-1,150.0-1,129.4-368.4537.9829.01,326.61,829.92,004.72,446.82,348.7
Austrian/an/an/an/an/an/an/a905.1272.2792.8
Portugal-514.9-487.2-600.8-1,516.2-2,139.9-2,508.4-1,827.0-2,381.1-2,774.3-2,612.3
Finlandn/an/an/an/an/an/an/a164.6-27.1-4.7
Swedenn/an/an/an/an/an/an/a937.3752.51,226.8
UK2,070.03,353.83,386.9666.92,387.83,125.81,158.84,720.22,276.01,833.7

(30) See note below on Belgium and Luxembourg net contribution.

Note:

A negative figure indicates that the Member State is a net recipient.

The table above has been compiled from the annual reports of the European Court of Auditors. These reports do not attribute all EC spending between Member States, and so do not provide a full picture of net contributions. In particular the effects of administration spending are understated. Before 1995 the Court took account of part of administration spending. Since that date their reports have adopted a revised format which excludes administration spending completely. This change means that the figures for 1995-97 are not wholly comparable with those for 1988-94.

Most EC administration spending is disbursed in Belgium or Luxembourg. The figures above for those countries must therefore be treated with considerable caution (and are shown in italics). Figures for 1992-97 only have been published by the Commission in their report on the Operation of the Own Resources System (ref 11666/98). These figures which do not take account of all administration spending, show that, for instance, in 1997 the net receipts from the EC Budget on Belgium and Luxembourg were 1,080 mecus and 725 mecus respectively.

Source:

Court of Auditors Reports


17 Dec 1998 : Column: 759

Table 2--The percentage of Member States GDP accounted for by the net contribution or receipt

Country1988198919901991199219931994199519961997
Belgium(31)0.760.790.50-.026-0.10-0.030.160.150.360.46
Denmark-0.36-0.18-0.42-0.33-0.25-0.33-0.16-0.23-0.14-0.02
Germany0.600.610.470.630.640.720.790.730.590.61
Greece-2.73-3.28-3.78-4.06-4.74-5.26-4.64-3.97-4.06-3.97
Spain-0.460.01-0.44-0.54-0.61-0.76-0.77-1.69-1.30-1.25
France0.220.340.190.250.140.100.230.150.040.08
Ireland-3.93-4.08-5.27-6.30-5.31-5.73-3.86-3.82-4.06-3.94
Italy-0.020.180.050.150.050.180.300.070.150.03
Luxembourg(31)1.020.860.74-1.81-1.67-1.72-2.060.340.590.46
Netherlands-0.59-0.54-0.160.230.330.500.640.660.780.74
Austria--------------0.510.150.44
Portugal---------------3.10-3.40-3.07
Finland-1.26-1.03-1.13-2.45-3.01-3.58-2.560.17-0.030.00
Sweden--------------0.530.380.61
UK0.290.440.440.080.300.390.130.560.250.16

(31) See note in Table 1 on Belgium and Luxembourg net contribution.

Note:

A negative figure indicates that the Member State is a net recipient.

Source:

GDP figures taken from "European Economy" No 65 (1998), published by the European Commission.

Net Contributions as in Table 1.


Table 3--Net contribution per capita in £s

Country1988198919901991199219931994199519961997
Belgium(32)66.876.055.5-29.2-12.1-4.623.725.158.967.0
Denmark-42.8-22.8-58.7-47.0-39.3-56.5-29.6-47.9-29.5-3.1
Germany66.070.762.777.088.3113.5129.6134.7106.794.3
Greece-99.1-133.7-174.9-200.9-256.4-310.3-285.9-273.3-301.4-274.8
Spain-22.90.5-31.5-41.3-51.6-61.6-61.6-150.8-122.0-102.5
France21.135.122.730.118.513.835.124.36.311.6
Ireland-218.1-256.6-385.6-468.0-442.0-516.7-378.0-429.1-500.0-493.9
Italy-1.516.95.217.16.520.834.48.819.63.9
Luxembourg(32)119.8114.9112.2-288.8-306.8-370.8-486.189.5153.1105.8
Netherlands-51.8-51.1-17.625.040.167.592.1106.2126.4103.7
Austria--------------92.127.167.6
Portugal---------------198.0-225.6-182.3
Finland-34.6-33.1-43.5-107.6-159.8-198.5-143.726.4-4.2-0.6
Sweden--------------86.867.894.8
UK24.139.342.08.130.241.815.466.031.121.4

(32) See note in Table 1 on Belgium and Luxembourg net contribution.

Note:

A negative figure indicates that the Member State is a net recipient.

Source:

Population figures taken from "European Economy" No 65 (1998), published by the European Commission.

Conversion to £s using the annual average ecu/£ exchange rate.

Net Contributions as in Table 1.


17 Dec 1998 : Column: 761

Mr. Gill: To ask the Chancellor of the Exchequer what is the latest estimate of the total EU budget for the current year; and what percentage of it he estimates will be allocated to CAP expenditure. [63104]

Ms Hewitt: The EC budget for 1998 was set at 83.53 billion ecus, of which 40.44 billion ecus, or 48.4 per cent. was allocated for CAP expenditure. Latest estimates suggest that the final outturn for the overall budget will be very close to budget, although expenditure on the CAP may be some 1 billion ecus below plans. CAP expenditure would therefore account for around 47 per cent. of all expenditure.

17 Dec 1998 : Column: 762


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