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Petrol Undertakings Review
Mr. Hoyle: To ask the Secretary of State for Trade and Industry (1) what the reasons are for the delay in the completion of the Review of the Petrol Undertakings; when the review will be completed; and if he will publish the results of the review; [122942]
- (2) what discussions he, his officials and the Office of Fair Trading have held with (a) the major oil suppliers, (b) the United Kingdom Oil Producers Association and (c) the Institute of Petroleum, to discuss the Review of the Petrol Undertakings since January 2000; and what the outcome of those meetings was. [122943]
Dr. Howells: DTI Ministers and officials have not held discussions with the parties mentioned regarding the Office of Fair Trading's review of the petrol undertakings. During the course of the review the Office of Fair Trading have had discussions with, or invited views from, all sides of the industry. This has included major oil companies and retailers associations. Industry views have helped to inform the Office of Fair Trading's review.
The completion of the review has been delayed because of consultations with the industry and because the Office of Fair Trading has had to allocate resources between several areas of high priority including the investigation of fuel prices in the Highlands and Islands.
The Office of Fair Trading expect to advise ministers shortly on whether the undertakings should be retained, removed or amended. Policy advice from the Director General of Fair Trading to Ministers is not published. However, Ministers will announce their decision on the matter in due course.
TREASURY
Working Families Tax Credit
Mr. Cousins: To ask the Chancellor of the Exchequer if he will identify on what basis, and in what numbers, those receiving working families tax credit (a) are and (b) are not, entitled to passported benefits; and what advice is given to those on working families tax credit on the category to which they belong. [119322]
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Dawn Primarolo [holding answer 18 April 2000]: Working Families Tax Credit can be used as a "general passport" to various benefits so that those benefits are made available to everyone receiving Working Families Tax Credit. Other benefits, for example, help with NHS charges, are targeted on families receiving Working Families Tax Credit who have net incomes of £11,370 per year or less. At the end of March around 900,000 families were passported this way.
Lending Rates
Mr. Steinberg: To ask the Chancellor of the Exchequer if he will list the average (a) interest rates and (b) mortgage interest rates in each year since 1992. [123286]
Miss Melanie Johnson: The table lists the average 2-week repo rate, 10 year UK gilt rate, and the average mortgage interest rate in each year to May since 1992.
| 2-week repo rate | 10-year gilt rate | Building society average mortgage rate | ||
|---|---|---|---|---|
| Year ending May | ||||
| 1992 | 10.8 | 9.6 | 11.7 | |
| 1993 | 8.1 | 8.5 | 9.7 | |
| 1994 | 5.7 | 7.2 | 7.9 | |
| 1995 | 5.9 | 8.5 | 7.8 | |
| 1996 | 6.6 | 7.9 | 7.5 | |
| 1997 | 5.9 | 7.7 | 6.6 | |
| 1998 | 7.0 | 6.4 | 7.4 | |
| 1999 | 6.7 | 4.9 | 7.4 | |
| 2000 | 5.4 | (14)5.3 | (14)6.5 | |
(14) 10-year gilt estimates for May 2000 year provided by Bloomberg (average of year till May 2022). Average mortgage rate includes data up till March 2000.
Source:
ONS. Repo rate data provided by the Bank of England.
The figures show that by aiming to secure low inflation and sound public finances, the macroeconomic policy framework has helped keep interest rates historically low while meeting the Government's objectives of achieving high and sustainable levels of growth and employment.
Taxation (I-E Formula)
Mr. Jack: To ask the Chancellor of the Exchequer what the tax yield has been from financial instruments or products whose taxation is subject to the I-E formula in each of the last eight financial years. [123394]
Dawn Primarolo: The information requested is not available.
Mr. Jack: To ask the Chancellor of the Exchequer if he will list (a) the financial (i) instruments and (ii) products whose taxation is subject to the I-E formula, (b) the relevant composite rates of tax applied to each such instrument and product and (c) the rates of tax used in each of the last eight financial years in respect of each such instrument and product. [123395]
Dawn Primarolo: There are no statutory restrictions on the type of financial instruments that an insurer may invest in to provide funds to meet payments due to policy holders. The funds that are subject to the I-E treatment are those held to meet payments due to policy holders in respect of policies of life insurance, life annuity contracts and capital redemption policies other than those relating to pension business, overseas life assurance business,
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individual savings account business and life reinsurance business. The rates of tax payable on the income and profits from those investments broadly reflect the tax that policy holders might have paid had they held the underlying investments directly.
The tax paid by the insurer under I-E is treated as satisfying the basic rate tax liability of the policy holder. Policy holders will have no further tax to pay when they obtain the proceeds of their policies unless the policy is not a qualifying policy and they are themselves liable to tax at the higher rate. Qualifying policies are broadly those with regular premiums and a substantial death benefit that last for at least 10 years.
The rate of tax payable by the company on the underlying investments, so far as they are building up for the benefit of policy holders, for each of the last eight years is shown in the table:
| Rate of tax | ||||
|---|---|---|---|---|
| Year | Dividends on UK company shares and securities | Income from gilts and corporate bonds | Capital gains | Other property (15) |
| 2000-01 | (16)-- | 20 | 22 | 22 |
| 1999-2000 | (16)-- | 20 | 23 | 23 |
| 1998-99 | (16)-- | 20 | 23 | 23 |
| 1997-98 | (16)-- | 20 | 23 | 23 |
| 1996-97 | (16)-- | 20 | 24 | 24 |
| 1995-96 | (16)-- | 25 | 25 | 25 |
| 1994-95 | (16)-- | 25 | 25 | 25 |
| 1993-94 | (16)-- | 25 | 25 | 25 |
(15) Land, underwriting commissions etc.
(16) Not chargeable
MEP Pensions
Mr. Wigley: To ask the Chancellor of the Exchequer what was the cost to his Department of funding the pensions of members of the European Parliament in each of the last three years; to how many beneficiaries these payments are made; and what estimate he has made of the future annual liability for making such pension payments. [119585]
Mr. Andrew Smith [pursuant to his reply, 3 May 2000, c. 147W]: I regret that my earlier answer was incomplete.
MEPs receive two pensions: one from the EU and a national pension. Expenditure on the former is met from the European Parliament section of the EC budget, as my earlier answer noted.
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Regarding the latter, under the European Assembly (Pay and Pensions) Act 1979, the basic costs of the European Parliament (United Kingdom Representatives) Pension Scheme are met from the Consolidated Fund. Pension increases are funded from the Civil Superannuation Vote. Details of the costs are published annually in the Supplementary Statements to the Consolidated Fund and National Loans Fund Accounts.
In each of the last three financial years, the basic costs were as follows:
| Basic pension incl. Widows and dependents | Lump sums | |
|---|---|---|
| 1997-98 | 202 | 0 |
| 1998-99 | 219 | 135 |
| 1999-2000(17) | 403 | 616 |
(17) 1999 was an election year to the European Parliament, many MEPs who stepped down were of retirement age or above. Resettlement grants totalling £1,364K were also funded from the Consolidated Fund.
Note:
As at 31 March 2000, there were 54 beneficiaries in receipt of pensions under the scheme. No estimate has been made of future annual liabilities.
SOCIAL SECURITY
Secondments
Mr. Don Foster: To ask the Secretary of State for Social Security how many staff from his Department were seconded to private sector companies in (a) May 1997 to April 1998, (b) May 1998 to April 1999 and (c) May 1999 to April 2000; and if he will list in each case the companies to which staff were sent, the names and ranks of the staff involved and the duration of the secondment. [123417]
Mr. Rooker: The information is not available in the format requested. Such information as is available is in the table.
Secondments and attachments are part of the Interchange Initiative, which promotes the exchange of people and good practice between the Civil Service and other organisations. All sectors of the economy are involved: Voluntary, Education, Health, Public and Private. Interchange is a key component of the reform agenda. The Modernising Government White Paper committed us to increasing interchange, in particular by bringing in more people on secondment and sending more of our people out.
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(18) Continuing
Note:
Names of individuals have not been provided in accordance with part II of the "Code of Practice on Access to Government Information".
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