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Developing Countries (Debt)

Mr. Reed: To ask the Chancellor of the Exchequer if he will list for (a) Uganda, (b) Mozambique, (c) Bolivia, (d) Guyana, (e) Cote d'Ivoire and (f) Burkina Faso the (i) actual debt service in the five years prior to completion point in the HIPC Initiative and (ii) IMF/World Bank estimates of actual debt service for the five years after completion point. [61490]

Ms Hewitt: The precise information requested is not available. I am, however, writing to my hon. Friend and will place a copy of my letter in the Library.

Higher Rate Taxpayers

Mr. Webb: To ask the Chancellor of the Exchequer how many individuals paid income tax at the higher rate, and, of these, how many filed an income tax return, in the latest year for which figures are available. [64684]

Dawn Primarolo: About 2.0 million taxpayers have paid tax at the higher rate for the 1996-97 tax year. The information available on taxpayers who have filed 1996-97 tax returns to date does not allow the number who have paid higher rate tax to be separately identified. However, the vast majority of higher rate payers will have filed a tax return.

European Code of Conduct Group

Mr. David Heath: To ask the Chancellor of the Exchequer what (a) prior and (b) continuing consultation he has had with the Government of Gibraltar in respect of discussions on taxation in the European Union Code of Conduct Group. [64475]

Dawn Primarolo [holding answer 17 December 1998]: Discussions on the EU Code of Conduct were held at ministerial level with Government of Gibraltar representatives before the Code of Conduct was agreed on 1 December 1997. Since then the UK Government have kept the Government of Gibraltar informed of significant developments in the Code of Conduct exercise. Gibraltarian officials attended a seminar in September 1998 to discuss the Code and other initiatives to tackle harmful tax competitions. A meeting took place in October 1998 between the Chief Minister and other Government of Gibraltar representatives and senior Foreign and Commonwealth Office, Treasury and Inland Revenue officials to discuss these issues.

Mr. David Heath: To ask the Chancellor of the Exchequer what link the Government have made between consideration of future tax regimes in Gibraltar and voting

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rights for citizens of Gibraltar in European parliamentary elections, as part of the discussions in the European Union Code of Conduct Group. [64476]

Dawn Primarolo [holding answer 17 December 1998]: These are two separate and distinct issues. The EU Code of Conduct tackles the specific problem of harmful tax competition. It is only right that Gibraltar should be part of international efforts to ensure fair tax competition and Gibraltar is part of the Community for these purposes. With reference to the issue of voting rights for citizens of Gibraltar in European Parliamentary elections, I refer the hon. Member to the reply given by the then Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Manchester, Central (Mr. Lloyd), on 9 December 1997, Official Report, column 499, to the hon. Member for Tewkesbury (Mr. Robertson).

VAT

Mr. Mitchell: To ask the Chancellor of the Exchequer if he will make a statement on (a) the legislative base for, (b) the extent of and (c) the duration of (i) full, (ii) temporary and (iii) transitional exemptions in respect of VAT. [64824]

Dawn Primarolo: The legislative base for VAT exemptions and zero rates, in terms of EC law, is the Sixth VAT Directive.

Most of the UK's VAT exemptions, such as finance, insurance, most leasing of property and betting and gaming, are part of the normal VAT system, and there is no expiry date set down in the Sixth Directive. The same is true of the zero rate for exports outside the European Community, and associated supplies.

Under the so-called 'transitional' arrangements of the Sixth VAT Directive, the UK is also able to:

zero rate social items such as food, public transport, books, newspapers and children's clothing (Article 28(2)(a) of the Directive); and

exempt certain transactions, the main categories being burials, cremations, and building land (Article 28 (3)(b) of the Sixth VAT Directive).

In addition, there are a number of technical zero rates on goods dispatched (exported) from the UK to other EC member states.

It was originally envisaged that the transitional arrangements would last until 31 December 1996, when they would be replaced by a 'definitive' (Common) VAT system. However, the Commission has not yet put forward legislative proposals for key elements of the replacement Common VAT system. Until they do so, and they are unanimously agreed by member states, the transitional arrangements will continue automatically.

Mr. Mitchell: To ask the Chancellor of the Exchequer if he will list, for the latest available year, the revenue obtained from VAT charges on (a) building alterations and (b) civil construction; and when VAT was introduced for each. [64809]

Dawn Primarolo: Information in the form requested is not available. However the breakdown of VAT receipts relating to buildings and construction can be provided.

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Revenue in 1997-98 from house repairs, improvements and maintenance is estimated to be £1.5 billion and that on all other building work, apart from that which qualifies for zero-rating, to be £1.1 billion.

VAT was introduced for building alterations in 1984 and for construction of new commercial buildings in 1989.

Mr. Mitchell: To ask the Chancellor of the Exchequer when the European Commission (a) gave notice of and (b) commenced, infraction proceedings against Her Majesty's Government concerning the zero rating, or exemption from VAT of (i) building alterations and (ii) construction works; on what legal instrument such actions were based; and what papers relating to such proceedings have been made publicly available. [64810]

Dawn Primarolo: The European Commission gave notice of infraction proceedings by the issue of a reasoned opinion to the UK Government on 4 September 1984. On 13 September 1985 the European Commission made an application to the European Court of Justice, pursuant to Article 169 of the EEC Treaty (as the Treaty was then known), alleging that the UK had breached Article 28(2) of the Sixth Directive. (Article 28(2) provides for the continuation of those zero rates which satisfy the conditions contained in the Second Council Directive of 1967.)

A copy of the report for the hearing of the case (416/85) before the European Court of Justice on 15 September 1987 was placed in the Library of the House of Commons on 23 July 1987. The opinion of the Judge Advocate (2 December 1987) and the judgment of the Court (21 June 1988) were published in European Court Reports, the formal law reports of the European Court of Justice.

New VAT law was introduced in the Finance Act 1989 to reflect the judgment of the European Court of Justice. The construction of commercial buildings became standard rated but dwellings and residential buildings continued to benefit from zero-rating.

The infraction proceedings did not apply to alterations to existing buildings which have been standard rated since 1984.

Lead-free Petrol

Mr. Laurence Robertson: To ask the Chancellor of the Exchequer if he will make a statement on the taxation of lead-free petrol following the phasing out of four star petrol. [64840]

Dawn Primarolo: The Chancellor has received a number of representations about the taxation of lead-free petrol following the phasing out of four star petrol. All of the representations will be carefully considered in the run up to the next Budget.

British Drugs Liaison Officer (Pakistan)

Mr. Singh: To ask the Chancellor of the Exchequer what happened to the senior British Drugs Liaison Officer who was detained in Peshawar, Pakistan, after being caught with three kilograms of heroin in his possession in his official vehicle in July 1995. [65075]

Dawn Primarolo: No such incident took place.

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Single Wage Earner Families

Mr. Flight: To ask the Chancellor of the Exchequer what measures Her Majesty's Government are taking through the benefits system to support two-parent families with only one wage earner; and if he will make a statement. [63190]

Dawn Primarolo [holding answer 11 January 1999]: The Secretary of State for Social Security announced a number of measures in his statement on 28 October 1998 including the largest ever increase in Child Benefit. And the under-11 child premium in Family Credit was increased from November last year--a change which will follow through into the Working Families Tax Credit when it replaces Family Credit from October 1999. The WFTC will be part of the tax system, and because it will begin to be paid through the pay packet from April 2000, it will reinforce the message that "work pays". The WFTC will help make work pay for families on low and middle incomes, around 400,000 more than are currently helped by Family Credit. Many of these families will be couples with only one income, where one parent chooses to stay at home with the children.

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