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Duty Free

Mr. Whittingdale: To ask the Chancellor of the Exchequer what was the outcome of discussions about the future of duty free at the ECOFIN meeting on 15 March; and if he will make a statement. [78205]

Dawn Primarolo: At ECOFIN the Presidency proposed a one-off further extension of two and a half years for excise duty free arrangements with VAT being applied from 1 July 1999. Six member states supported this compromise proposal. Six member states and the Commission opposed it. The Presidency concluded that COREPER should be invited to examine the Commission's proposals and report back to the next ECOFIN Council. The UK will continue to press strongly the case for a deferral of the abolition of excise duty free so that better successor regime arrangements can be developed.

Financial Services Regulator

Mr. Gordon Prentice: To ask the Chancellor of the Exchequer what guidelines or advice he has issued concerning the reference of matters subject to investigation by the Financial Services Regulator to the Serious Fraud Office; and if he will make a statement. [76970]

Ms Hewitt: The Treasury has not issued guidance to the Financial Services Authority (FSA) on when to refer matters subject to investigation to the Serious Fraud Office (SFO). The FSA and SFO have long-standing arrangements which ensure that each agency is informed about investigations where the other has an interest and agreed guidelines on the criteria for determining who is best placed to pursue a particular case. They are currently preparing, with other investigative and prosecuting authorities, new guidelines for co-operation to take account of the new powers proposed for the FSA in the Financial Services and Markets Bill.

Valuation Office

Ms Lawrence: To ask the Chancellor of the Exchequer what targets will be set for the Valuation Office Executive Agency for 1999-2000. [78855]

Dawn Primarolo: I have set the following key targets for the Valuation Office in 1999-2000:

Operational

rating

to publish new rating valuation lists by 31 December 1999

to clear 264,500 appeals against the existing rating lists

Council tax

against the policy, in co-operation with the valuation tribunals, of clearing appeals within 6 months of receipt:

to clear council tax appeals equal to the number received up to a maximum of 80,000

Client and customer services

to achieve a further improvement against the Agency's valuation indicator by 1 per cent. to 88 per cent.

to meet timeliness targets in 90 per cent. of cases

24 Mar 1999 : Column: 263

Finance and cost efficiency

to break even overall after charging for the full cost of chargeable services including notional interest of 6 per cent. on the average working capital.

measurement will be within a tolerance of the greater of 2 per cent. of relevant turnover or £1 million

to achieve financial efficiency gains of 4.0 per cent.

Investing in People

to achieve Investors in People accreditation by 31 December 1999.

Further details are contained in the Valuation Office's Forward Plan, copies of which will be placed in the Library of the House on publication.

Tax Law Rewrite Project

Ms Lawrence: To ask the Chancellor of the Exchequer what further developments there have been on the Tax Law Rewrite Project. [78963]

Dawn Primarolo: I am pleased to announce that the Tax Law Rewrite project is making very good progress and continues to enjoy wide support. The Inland Revenue have published a document which reviews the recent progress of the project and outlines its work programme for 1999-2000. Copies have been placed in the Libraries of the House.

The Steering Committee chaired by Lord Howe of Aberavon carried out a stocktake of the project during 1998. The rewritten legislation has been well received by the main users in the tax community and they are enthusiastic that the project should continue. It is a massive undertaking, but one we are committed to doing well.

Public Expenditure

Ms Lawrence: To ask the Chancellor of the Exchequer what arrangements are being made for in-year control of public expenditure from 1999-2000 onwards; and if he will make a statement. [78856]

24 Mar 1999 : Column: 264

Mr. Milburn: I have today written to the Chairman of the Treasury Committee outlining the arrangements the Government are making for in-year control of public expenditure.

The spending control framework announced in the Comprehensive Spending Review establishes a new aggregate, the Department Expenditure Limit, which covers all spending within departments' direct or indirect control. The new arrangements were set out in the 1998 Economic and Fiscal Strategy Report (Cm 3978) and the Comprehensive Spending Review White Paper (Cm 4011).

With effect from 1999-2000 the system of cash limits will be replaced by a single control on each department at the level of the Departmental Expenditure Limit (DEL). In future, the disciplines of notifying a control limit to Parliament, reporting changes in that limit, and accounting for any breach will apply at the level of the DEL. Changes in DELs arising from transfers between departments or calls upon and benefits to the DEL Reserve will be notified to Parliament.

Details of this and the increased emphasis on the use of End-Year Flexibility to contain pressures on the DEL will be described in the Introduction to the 1999-2000 Main Supply Estimates which will be presented to the House shortly.

Departments have been encouraged to establish small unallocated provisions within their Departmental Expenditure Limits for 1999-2000 onwards to give them flexibility to manage their budgets and respond to unforeseen pressures in-year. This will help ensure that the three year plans set in the CSR can be adhered to.

Excise Duty and VAT

Mr. Whittingdale: To ask the Chancellor of the Exchequer if he will list the rates of (a) excise duty and (b) VAT on (i) cigarettes and (ii) hand-rolling tobacco in each member state of the European Union, the United States of America and Canada, taking account of the changes in his Budget. [76567]

Mrs. Roche: The information on the European Union is as follows. The information on the United States of America and Canada is not readily available.

24 Mar 1999 : Column: 263

	(i) Cigarettes			(ii) Hand-rolling Tobacco
	Excise		VAT	Excise		VAT
		Ad valorem			Ad valorem
Member state	Specific (£ per thousand)	(Percentage of selling price)	(Percentage)	Specific (£ per kilogram)	(Percentage of selling price)	(Percentage)
Austria	13	42	20.0	0	47	20.0
Belgium	9	47	21.0	0	38	21.0
Denmark	57	21	25.0	38	0	25.0
Finland	11	50	22.0	1	50	22.0
France	4	55	20.6	0	51	20.6
Germany	33	22	16.0	11	18	16.0
Greece	2	54	18.0	0	59	18.0
Ireland	59	17	21.0	76	0	21.0
Italy	3	54	20.0	0	54	20.0
Luxembourg	6	49	12.0	0	32	12.0
Netherlands	31	21	17.5	13	15	17.5
Portugal	15	40	17.0	0	30	17.0
Spain	2	54	16.0	0	38	16.0
Sweden	15	39	25.0	47	0	25.0
UK	83	22	17.5	88	0	17.5

Source:

UK figures, effective from 9 March 1999, from HM Customs & Excise Budget Notice BN 81/99. Other figures from European Commission (Directorate General XXI) Excise Duty Tables (December 1998).

24 Mar 1999 : Column: 265

TRADE AND INDUSTRY

Coal Production

Caroline Flint: To ask the Secretary of State for Trade and Industry when he will publish the report by International Mining Consultants Ltd., prepared as part of the Review of Energy Sources for Power Generation, on the prospects for coal production in the United Kingdom for the next 20 years. [78859]

Mr. Battle: I have today placed a copy of the Report in the Libraries of both Houses of Parliament.

This report is a thorough, technical engineering study of the British coal-mining industry. It assesses geological conditions and other extraction issues, to estimate production prospects and costs for coal in the UK. Though it does not attempt to predict the market conditions for coal, it will provide a valuable reference point for all those involved in the industry.

The report should be seen against the background of the measures the Government are taking to remove distortions in the UK electricity market, which will ensure a level playing field for all fuels. The coal industry is getting fairness, not favours--which is what they asked for. The reform programme under way includes:

working on the reform of the electricity trading arrangements in England and Wales;

seeking practical opportunities for divestment by major coal-fired generators;

pressing ahead with competition in electricity supply for all customers;

separating supply and distribution in electricity markets.

resolving the technical issues about the growth of gas, including the proper remuneration of flexible plant; and

continuing to press for open energy markets in Europe.

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