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Rail Services
Mr. Barry Jones: To ask the Secretary of State for Wales what plans he has in respect of the improvement of North-South rail services; and if he will make a statement. [84296]
Mr. Hain: I consider that a better rail service between North and South Wales is essential for the economic and social cohesion of Wales. The Welsh Office is now working in partnership with the North Wales Economic Forum to secure two return services a day via Wrexham, and to reduce the fastest journey time between Bangor and Cardiff by half an hour. I expect to see the new services in place by the summer timetable next year.
Following the transfer of functions, the National Assembly will take a close interest in rail services in Wales. Responsibility for the regulation and financial support of the railways will remain with the Secretary of State for the Environment, Transport and the Regions.
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Mr. Barry Jones:
To ask the Secretary of State for Wales what assessment he has made of the effect on employment at Pentre, Deeside, of the decision not to allow Rockwool to take over the Owen-Corning's plant. [83982]
Mr. Hain:
My hon. Friend, the Minister for Competition and Consumer Affairs published the report of the Competition Commission, 'Rockwool Ltd. and Owen-Corning Building Products (UK) Ltd.; a report on the proposed merger' on 7 May, and a copy is in the Library of the House.
As part of the report, the Commission considered that the most likely outcome of prohibiting the merger would be that Owen-Corning would sell the Queensferry plant to another party.
Road Fuel Duty
13. Mr. Brady: To ask the Chancellor of the Exchequer what is the level of road fuel duty per litre of diesel in (a) the UK and (b) other EU member states in 1999-2000. [83201]
Ms Hewitt: The rate of duty on ultra low sulphur diesel in the United Kingdom is 47.21 per litre and on standard diesel the rate is 50.21 per litre.
The latest available rates of duty in the other member states range from about 18 per litre in Luxembourg and Greece to 28 per litre in Italy.
Pension Funds
14. Dr. George Turner: To ask the Chancellor of the Exchequer what assessment he has made of the impact of Government economic policy on the overall value of UK pension funds. [83202]
Ms Hewitt: The Government are pursuing policies to promote economic stability and raise productivity, and so enhancing the worth of pension fund investments.
Financial Support (Families)
15. Mr. Healey: To ask the Chancellor of the Exchequer if he will list the measures he is taking to increase financial support to families. [83203]
Mr. Gordon Brown: All families will have benefited from the increase in child benefit for the eldest child which came into force in April and from the above-inflation increases announced for next April. Following the introduction of the new children's tax credit in April 2000 a family with one child receiving this and child benefit will get double the support for their child, £23 a week, compared with their position in May 1997 when they would have received £11.40 a week.
In addition, the working families tax credit will be introduced in October this year and will benefit 1.5 million families. It will provide a guaranteed minimum income of £200 for a family with someone in full-time work on the national minimum wage.
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The WFTC and related increases to the child premia in income related benefits will ensure that all low-income families benefit from the increased support for children. Overall, as a result of the last two budgets, families with children will, on average, be £740 a year better off. As a result of the budget measures, 700,000 children will be lifted out of poverty. The tax rate for a family on average earnings with two children will be cut to its lowest level since 1972.
16. Dr. Gibson:
To ask the Chancellor of the Exchequer what account he takes of the level of the FTSE index in devising economic policy; and if he will assess its accuracy. [83204]
Mr. Milburn:
The Government take account of all relevant economic and financial information in devising economic policy, including the level of stock market indices.
17. Mr. Syms:
To ask the Chancellor of the Exchequer what estimate he has made of the change in levels of national insurance paid by the self-employed in 2001-02 as a result of the March Budget. [83205]
Dawn Primarolo:
It is estimated that the self-employed will pay about £420 million less in National Insurance contributions in 2000-01, but £520 million more in 2001-02 as a result of the March 1999 Budget.
19. Mr. Mackinlay:
To ask the Chancellor of the Exchequer what discussions his Department has had with the Department of Social Security in respect of practices adopted by some companies to avoid paying national insurance contributions. [83207]
Dawn Primarolo:
One of the benefits of transferring the Contributions Agency and policy responsibility for National Insurance to the Inland Revenue is that the Departments will be able to combine their efforts in detecting and preventing artificial avoidance of National Insurance which cost the National Insurance Fund hundreds of millions of pounds a year in lost revenue.
In my right hon. Friend the Chancellor's Budget we announced a further move. We shall be bringing forward legislation shortly to counter avoidance in personal service provision.
Ms Stuart:
To ask the Chancellor of the Exchequer if he will make a statement on his reform of national insurance contributions. [83197]
Mr. Milburn:
In March 1998 the Chancellor announced the most radical restructuring of the National Insurance system for 20 years, in line with the recommendations of the Taylor Report, 'The Modernisation of Britain's Tax and Benefits System'.
These reforms will improve work incentives by reducing burdens on the lower paid thereby encouraging people to move from welfare to work and simplify the structure of the National Insurance contribution scheme for both employees and employers.
13 May 1999 : Column: 205
18. Ms Drown:
To ask the Chancellor of the Exchequer if he will report on progress made on debt relief for poor countries at the International Monetary Fund and World Bank spring meetings. [83206]
28. Mr. Stinchcombe:
To ask the Chancellor of the Exchequer if he will report on progress made on debt relief for poor countries at the International Monetary Fund and World Bank spring meetings. [83216]
Mr. Gordon Brown:
At the Spring meetings of the IMF/World Bank last month I took forward proposals for faster, deeper and wider debt relief. There was general consensus on the need for an enhanced initiative.
I am now hopeful that we can resolve to:
21. Fiona Mactaggart:
To ask the Chancellor of the Exchequer if he will make a statement on the future of duty-free sales. [83209]
Dawn Primarolo:
Duty free sales on journeys made wholly with the European Union are due to end from 30 June as a result of a decision taken by the Council of Finance Ministers in 1991. The Government are pressing for an extension to allow time to work out better duty paid arrangements. However, we have never underestimated the difficulty of this task as it requires unanimity among member states. The Government will continue to press for the best and most sensible deal possible for the UK. Duty free sales on journeys made to countries outside the EU will continue unaffected after 30 June 1999.
22. Mr. John Smith:
To ask the Chancellor of the Exchequer what plans he has to provide funding to allow objective 1 EU projects to proceed. [83210]
Mr. Milburn:
The funding arrangements for EU projects are a matter for the Departments, and devolved administrations, which administer the Structural Funds programmes as well as the individual project applicants. Departments' and devolved administrations' overall expenditure is decided in the Comprehensive Spending Review.
23. Mr. Chope:
To ask the Chancellor of the Exchequer what estimate he has made of the effect on the level of tax paid by business from 1999-2000 to 2001-02 of the March 1999 Budget. [83211]
Mrs. Roche:
All companies who pay tax will benefit from the cuts in Corporation Tax that were announced in this year's Budget and in previous Budgets.
13 May 1999 : Column: 206
cut the burden of unpayable debt by at least 50 billion dollars in the year 2000;
sell IMF gold to help pay for this;
increase the aid for health, education and economic development;
give a billion through our own charitable giving.
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