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Pension Transfers
Ms Lawrence:
To ask the Chancellor of the Exchequer what plans he has concerning the treatment of the pensions of public servants transferring to private sector employers. [87160]
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Mr. Milburn:
The key principles are that staff transferring to private sector employers under PFI and other PPP deals should continue to have access after the transfer to a good quality occupational pension scheme, under which they can continue to earn pension benefits through future service on a basis which overall is materially at least as good as they had in the public sector; and that they should have the option of transferring their accrued pension benefits to the new employer's pension scheme on terms which give them a full credit for their past service.
I am issuing new guidance to Departments and Agencies today which reinforces these principles and ensures that they will be applied consistently and openly to all transfers of Government staff.
The new guidance will be adopted immediately by Government Departments and Agencies. I hope that other employers in the public sector will also apply its principles to contracting arrangements where staff transfer to the private sector, and the Government will encourage and facilitate that outcome. This does not affect arrangements being made in respect of PFI and other PPPs which are already underway.
Copies of the new guidance, and the associated Statement of Practice by the Government Actuary, have been placed in the Library of the House.
Mr. Steen:
To ask the Chancellor of the Exchequer what research his Department has carried out on the cost to his Department of delays to operations in the NHS, with particular reference to the consequent continued payment of benefits. [86427]
Mr. Heathcoat-Amory:
To ask the Chancellor of the Exchequer if he will list the UK tax measures currently under examination by the EU Code of Conduct Group (Business Taxation). [84913]
Dawn Primarolo
[holding answer 21 May 1999]: The work of the Code of Conduct Group is directed at the examination of potentially unfair tax practices across Europe. Such practices can distort competition and artificially attract investment and jobs away from member states such as the UK which have more neutral tax systems. The Code should help British businesses to compete on more even terms, protect UK employment and encourage investment here.
The UK measures which were on the Group's initial list are: International Headquarters Companies; special measures for the film industry; enterprise zones; 100 per cent. first year capital allowances for SMEs in Northern Ireland and roll-over relief for balancing charges arising on the disposal of ships. The current list also includes a measure relating to Independent Investment Managers, which applies to non-residents who carry on a trade of dealing in investments in the UK through an independent agent; 100 per cent. capital allowances for expenditure on Scientific Research and 40 per cent. first year allowances for SMEs.
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The Government are clear that none of the measures is harmful and is robustly making that case in the Code Group.
Mr. Flynn:
To ask the Chancellor of the Exchequer if he will remove VAT on fee-based financial advice. [86935]
Ms Hewitt:
No. VAT liability depends upon what service is provided and whether it is paid for. Financial advice for which a charge is made is liable to VAT at the standard rate. This is a requirement of European law.
Mr. Maclean:
To ask the Chancellor of the Exchequer if he will publish the latest agenda of the ECOFIN meeting of 14 June, prior to the meeting. [86832]
Ms Hewitt:
There is no meeting of Ecofin today. The next meeting is scheduled for 12 July. The agenda will be made available to the Scrutiny Committees when determined by Coreper, approximately one week before the meeting. Copies of the agenda will be placed in the Libraries of both Houses.
Mr. Matthew Taylor:
To ask the Secretary of State for Culture, Media and Sport what was the purpose and location of his meeting with William Kennard of the United States Federal Communications Commission on 16 September 1998. [86287]
Mr. Chris Smith:
I met Commissioner Susan Ness and Commissioner Michael Powell of the Federal Communications Commission, not William Kennard. The meeting took place on 17 September at the FCC offices in Washington and discussions centred around the programme for the introduction of digital television and the proposals for the switch off of the analogue system in the United States. Censorship and the V-chip were also discussed.
Mr. Bercow:
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will list those recommendations from Panel 2000 upon which he is planning to implement; and if he will list the costs accrued to date by Panel 2000. [86456]
Mr. Hoon:
The Panel makes recommendations aimed at better co-ordination between all organisations whose work affects perceptions of Britain overseas. In terms of Government practice they entail further improvements in the way Departments and official bodies work together in this area, and enhanced co-operation with the private and voluntary sectors. A number of detailed steps have been taken and others are being considered. Panel
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members receive no remuneration. Panel costs consist of reimbursement of travel costs incurred by members in their Panel duties. These total approximately £2,280.
Mr. Bercow:
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will list the five working groups of the Modernisation Group; and if he will deposit copies of their (a) mailings and (b) recommendations in the Library. [84505]
Mr. Robin Cook:
The Modernisation Group is an informal group of staff set up at my instigation, to offer an additional perspective on modernisation of the Foreign Office.
Mr. Caton:
To ask the Secretary of State for Social Security what plans he has to remove the three month limit for backdating payments under successful posthumous applications for disablement benefit introduced in the Social Security (Miscellaneous Amendments) (No. 2) Regulations 1997. [85302]
Mr. Bayley:
There are no plans to remove the three month backdating limit for posthumous claims to Industrial Injuries Disablement Benefit. We will, however, review the backdating rules to this benefit as part of our ongoing commitment to modernise and reform the welfare state.
Mr. Cox:
To ask the Secretary of State for Social Security what plans his Department has to be involved in the United Nations 1999 Year of the Elderly; and if he will make a statement. [86191]
Mr. Timms:
The UN Year provides a valuable opportunity to raise awareness and change perceptions about issues surrounding older people. It also provides a vehicle to consult older people themselves. This Department is a member of the UN Year reference group of voluntary organisations and government departments who have planned the UK programme, and a DSS official chairs the supporting facilitation group on Citizenship. I am taking a keen interest in the International Year, and will take part in a number of the events being organised.
As part of the programme, this Department has taken a leading role with Cabinet Office and the UK Secretariat of the International Year of Older Persons to develop a series of ten "listening to older people" events between May and November. The events will be hosted by non-governmental organisations supporting the year, with Ministers from the Ministerial Group for Older People, which I chair, taking part.
These events will provide the Government with valuable information and feedback which will help decide priorities and shape the policies to meet them. I launched the programme at a website "virtual" event organised by Age Resource on 25 May and will be attending the first physical event in Belfast tomorrow.
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Mr. Field:
To ask the Secretary of State for Social Security what forms of technology he is evaluating as a replacement to the magnetic strip of the benefit payment card; and what the projected savings are. [85862]
Angela Eagle:
We will begin replacing the existing paper-based methods of payment with a more modern, efficient and secure method of paying benefits using the existing automated credit transfer system in 2003. In addition to an increase, compared with the benefit payment card, of potential savings from the elimination of fraud associated with paper instruments of payment, this move is expected to provide a significant increase in administration savings.
It is the Post Office's intention to automate its network by the end of 2001 and to enter into commercial arrangements with a number of high street banks so that those people who wish to receive their benefits at post offices should continue to be able do so.
Mr. Rendel:
To ask the Secretary of State for Social Security (1) what savings were achieved due to the operation of the benefit swipecard in the 250 post offices where it was operating prior to renegotiation of the BA-Pocl Horizon contract; [86926]
Angela Eagle:
In the 204 post offices automated as part of the system trial savings from the payment card to April 1999 amounted to £97,000. Over the same period and in the same post offices the Order Book Control Service, which uses bar coded order books to tackle benefit fraud, achieved savings of £1.7 million.
We have decided that the project to automate post offices and benefits payments will no longer include the introduction of the benefit payment card. The vast majority of benefit customers will be unaffected, and those currently using the benefit payment card as part of the system trial, around 30,000 people, will see no interruption of their payments. The cards presently in use will be discontinued and we will be contacting customers to help them change to one of the alternative methods of payment.
Mr. Rendel:
To ask the Secretary of State for Social Security (1) what percentage of benefit payments are currently made through Automated Credited Transfer into bank accounts; [86924]
(3) what proportion of benefit claimants do not have a bank account. [86928]
Angela Eagle:
As at May 1999, 16 per cent. of benefit payments were made through Automated Credit Transfer into bank accounts.
The transaction fees payable by this Department to the various agents who supply benefit payment services are commercial in confidence and cannot be disclosed.
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(2) what plans he has to continue operation of the benefit swipecard in the post offices where the system is currently operational. [86927]
(2) what income was generated for post offices as a result of benefit payment transactions in the last year for which figures are available; [86925]
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