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Independent Financial Advisers
Mr. Kidney: To ask the Chancellor of the Exchequer how many independent financial advisers have applied to the pass scheme for professional indemnity insurance and have not obtained such insurance. [98078]
Miss Melanie Johnson: The Pension Advisers Support System (PASS) was set up by those life offices which use independent financial advisers (IFAs) to provide help to small IFAs in the conduct of the pensions review. It is a voluntary scheme designed to improve speed of delivery of the regulatory requirements to review cases of potential pensions mis-selling.
PASS now has 2,910 members who benefit from a range of services. PASS itself does not provide professional indemnity (PI) insurance but offers members access to a panel of brokers able to assist in securing cover, and a panel of solicitors able to provide confidential advice on legal PI issues.
The PIA requires its member firms to maintain PI cover of a specified standard. While the price of that insurance has risen for some firms in the recent past, it continues to be widely available. While PIA are aware that some IFAs have had problems in finding compliant PI cover, IFAs who follow PIA's standards and guidance should be able to obtain it.
Mr. Kidney:
To ask the Chancellor of the Exchequer how many independent financial advisers have been prevented by the regulators from offering financial advice to the public, and for what reasons, since the start of phase 1 of the Pensions Mis-selling Review. [98077]
Miss Melanie Johnson:
Since 1 April 1995, when the Personal Investment Authority (PIA) issued guidelines to the industry on Phase 1 of the review, 261 Independent Financial Adviser (IFA) firms regulated by the PIA have had their authorisation revoked, and were therefore prevented from offering investment advice to the public. The PIA can revoke firms' authorisation for a wide variety of reasons. No detailed analysis is readily available of the grounds for revocation in the case of these firms.
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Mr. Love:
To ask the Chancellor of the Exchequer what recent discussions he has held with the Financial Services Authority on the subject of financial exclusion; and if he will make a statement. [98057]
Miss Melanie Johnson:
The Financial Services Authority was represented on the Policy Action Team which examined access to financial services, whose report will be published shortly.
Mr. Jim Marshall:
To ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held in Brussels on 8 November; and if he will make a statement. [98156]
Miss Melanie Johnson:
The Paymaster General attended the Economic and Finance Council of Ministers in Brussels on 8 November.
There was a discussion of the proposed "tax package" (code of conduct on business taxation, taxation of savings and elimination of withholding taxes on cross order interest and royalty payments between companies). The United Kingdom position, set out in its paper on international bonds presented by the Chancellor of the Exchequer to the informal meeting of the Council in September, remains unchanged.
The Council agreed the detail of the funding package for HIPC (highly indebted poor countries) announced in Washington in September. A draft report on economic policy co-ordination was introduced by the chairman of the Economic and Finance Committee. This will be discussed again at the meeting on 29 November. A common statement on the introduction of euro notes and coins was agreed. The renewal of the European Investment Bank's mandate for lending to third countries was agreed, subject to a reservation by one member state. The Council took note of a Commission communication on risk capital and invited the Commission to prepare, for the Special European Council in Lisbon next March, a monitoring and benchmarking mechanism which would enable the Council to develop and implement the Risk capital Action Plan by identifying clear priorities and setting measurable objectives where appropriate. The chairman of the Economic Policy Committee (EPC) presented the joint opinions of the EPC and the Employment and Labour Market committee on the draft Guidelines for member states' employment policies for the year 2000 and on the draft Recommendations on the implementation of member states' employment policies. These will be discussed further at the joint ECOFIN/Social Affairs Council on 29 November.
Mr. Gill:
To ask the Chancellor of the Exchequer what is the estimated annual amount of tax forgone as a consequence of the cross channel trade in (a) alcoholic drinks and (b) tobacco products. [97544]
Dawn Primarolo:
HM Customs and Excise's latest estimates of the amount of revenue lost (excise duty and VAT) through legitimate cross-border shopping in 1998
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and cross-Channel smuggling in 1999 were published in the table 5.1 of the Pre-Budget Report, a copy of which has been placed in the Library of the House.
Miss McIntosh:
To ask the Chancellor of the Exchequer what plans he has to relieve the tax burden on middle-income earners, defined as those earning between £15,000 and £29,000 per year. [97926]
Dawn Primarolo:
As the Chancellor announced in his last Budget, and reaffirmed in the Pre-Budget Report, the basic rate of income tax will be cut from 23p to 22p from April 2000.
Mr. Alan Campbell:
To ask the Chancellor of the Exchequer what assessment has been made of the cost of extending the 10 pence starting rate of tax to savings. [96863]
Miss Melanie Johnson:
The Chancellor announced in the Pre-Budget report that the starting rate of tax would apply to savings from April 1999 with a cost of £110 million. This estimate is based on the 1997-98 Survey of Personal Incomes.
Mr. Mackinlay:
To ask the Chancellor of the Exchequer if he will list (a) the rules governing the local environmental trusts created under the provisions of landfill tax legislation, (b) the method or format by which nominated trustees are to be selected and (c) the common core provisions that have to exist in any trust's constitution, in particular in relation to safeguarding the trust's work from the interests of the industries contributing to the trusts. [97401]
Mr. Timms
[holding answer 8 November 1999]: The Landfill Tax Regulations 1996 contain the legislative framework within which the Landfill Tax Environmental Bodies Scheme operates. Regulation 33 lays down the conditions that an environmental body has to meet in order for contributions to it to qualify for tax credits under the scheme. Regulation 33(1) precludes an environmental body from applying any of its funds for the benefit of any contributing landfill operator, and specifies that, to be eligible for approval, a body must not be controlled by one or more local authorities.
ENTRUST, the regulator for the scheme, also publishes literature detailing its requirements of prospective environmental bodies. I have asked ENTRUST to send a copy to my hon. Friend.
Mr. Mackinlay:
To ask the Chancellor of the Exchequer if he will list the membership of the regulatory body overseeing the work of environmental trusts set up under the landfill tax legislation, indicating from where the members are drawn, the duration of their office and their terms of reference. [97402]
Mr. Timms
[holding answer 8 November 1999]: I am arranging for the information asked for by my hon. Friend about ENTRUST, the regulator of the landfill tax environmental bodies credit scheme, to be placed in the Library of the House.
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Mr. Burstow:
To ask the Chancellor of the Exchequer what proposals he has submitted to the European Commission for the lowering of zero rating of VAT on labour-intensive services delivered directly to the final consumer. [97391]
Dawn Primarolo
[holding answer 5 November 1999]: Zero rating would not be permitted under the experimental scheme as the new Directive provides only for reduced rates of not less than 5 per cent. Any change to VAT coverage would be for the Chancellor to decide in the next Budget.
Mrs. Browning:
To ask the Chancellor of the Exchequer what representations Her Majesty's Government have made to the European Commission about Council Directive 1999/85/EC concerning reduced VAT rates on labour-intensive services. [98176]
Dawn Primarolo:
The UK has made it clear to the Commission that any change to VAT rates and coverage would be for the Chancellor to decide in the next Budget.
Sir Peter Tapsell:
To ask the Chancellor of the Exchequer in what form authority was given to the Governor of the Bank of England to sign the statement issued on 26 September by 15 European central banks entitled, Statement on Gold. [97392]
Miss Melanie Johnson
[holding answer 8 November 1999]: By long-standing arrangement, the Bank acts as the Treasury's agent in managing the reserves. As is normal on such occasions the Treasury gave the Bank authority to act.
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