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EU Regulations (Appeal Procedures)

Sir Michael Spicer: To ask the Minister of Agriculture, Fisheries and Food what plans he has to introduce appeal procedures in cases where farmers incur penalties for what they conceive to be genuine errors in filling in paperwork to comply with EU regulations. [124676]

Ms Quin [holding answer 5 June 2000]: We are well aware of the industry's strength of feeling on this issue which was reflected in the recommendation of the IACS and Inspection Working Group that an appeal mechanism is set up and that industry be consulted on proposals. We expect shortly to be in a position to consult on possible options, in addition to the existing provisions, that might be of benefit to the industry. We are keen to ensure that any mechanism we decide to introduce is streamlined, efficient and not an additional burden in terms of cost and time to all parties that are involved in the process.

Forms

Mrs. Lait: To ask the Minister of Agriculture, Fisheries and Food what has been the net change in each year since May 1997 in the number of forms issued by his Department which (a) charities and (b) other voluntary organisations are required to complete. [123953]

Ms Quin: With one exception for the activity and expenditure of one organisation, the Department does not issue any forms which are required to be completed specifically by charities or other voluntary bodies. If organisations within these sectors wish to apply for schemes operated by the Department they would be subject to the same requirements as other applicants.

Animal By-products

Judy Mallaber: To ask the Minister of Agriculture, Fisheries and Food what procedures are in place to provide authority to a contractor to dispose of animal by-products under the Animal By-Products Order 1999. [124082]

Ms Quin: The Animal By-Products Order 1999 requires any person who has in his possession or under his control any animal by-product to dispose of it in accordance with that Order. Such disposal must usually be by rendering or incineration; no prior authority is required.

However, in certain circumstances, for example if there is a lack of capacity at rendering premises or incinerators, the appropriate Minister may serve a notice on the person in charge of animal by-products requiring those by-products to be disposed of by burning or burial.

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Judy Mallaber: To ask the Minister of Agriculture, Fisheries and Food what monitoring his Department undertakes of the implementation of the Animal By-Products Order 1999 requiring disposal of animal by-products by incineration or rendering. [124102]

Ms Quin: Members of the State Veterinary Service visit premises registered or approved under the Animal By-Products Order 1999, regularly to monitor compliance with the provisions of the Order. It is a requirement of the Order that detailed records of despatch and receipt of animal by-products are kept.

Bovine TB

Mr. Drew: To ask the Minister of Agriculture, Fisheries and Food what controls his Department has put in place in order to monitor any threat from the importation of cattle suspected of bovine TB. [123910]

Ms Quin: Under EU legislation, all cattle imported from another member state must come from a herd which is officially free of TB. They must be tested for TB within 30 days prior to import unless the member state is officially recognised as being free of TB. Once the cattle are imported, they are subject to random non- discriminatory inspections and to our TB monitoring programme, which is also governed by EU legislation. Cattle imported from countries outside the EU have to enter via an approved Border Inspection Post where they are subjected to clinical inspection immediately upon arrival. Such cattle must also have had a pre-export TB test and originate from a TB-free herd.

Flood Plains (Northamptonshire)

Mr. Yeo: To ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the proposals for development on flood plains in Northamptonshire. [124140]

Ms Beverley Hughes [holding answer 5 June 2000]: I have been asked to reply.

Local planning authorities in Northamptonshire are conscious of the need to avoid increasing the risk of flooding and exercise a precautionary approach in considering planning applications for development that is either in the flood plain or likely to increase surface water run-off. They take into account advice from the Environment Agency in deciding whether or not planning permission should be granted. A Northampton Liaison Group including representatives from the Environment Agency, local authorities, developers and local groups meets regularly to consider development proposals.

The draft replacement Northamptonshire Structure Plan contains a policy which provides that development will not be permitted in areas at direct risk from flooding, or where flood risk would be increased, unless satisfactory mitigation measures are proposed. This issue was debated at the Examination in Public of the Plan in February and the Report of the Panel is awaited.

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TREASURY

Secondments

Mr. Don Foster: To ask the Chancellor of the Exchequer, pursuant to his answer of 27 March 2000, Official Report, column 47W, concerning secondments, which of the secondees listed were appointed for a period of 12 months or less. [124818]

Miss Melanie Johnson: Eleven.

Pension Funds

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer what initiatives he has launched to attract new sources of finance, including pension funds, to the risk investment sector. [124758]

Miss Melanie Johnson: Risk capital is a vital source of finance for small and medium-sized enterprises (SMEs) with the potential for rapid growth. The Government have introduced a number of measures to encourage individuals, institutional funds and companies to invest more in this sector.

For individuals, this year's Finance Bill introduces significant reductions in capital gains tax (CGT) for investment in unquoted companies. All such holdings, with no minimum threshold, now qualify as "business assets", and higher rate taxpayers who now invest in such shares for at least four years will pay an effective rate of only 10 per cent. on the capital gains realised.

The Finance Bill also makes several improvements to the operation of the Enterprise Investment Scheme (EIS), which provides tax incentives for individuals to invest in smaller higher risk trading companies. Income tax reliefs will now be available on shares held for at least three years (rather than the previous five year limit), and SMEs will be able more easily to seek capital from both EIS investors and venture capital funds. Parallel changes to the tax reliefs for individuals investing in risk capital via Venture Capital Trusts are also being introduced.

With the aim of reducing the regulatory cost to SMEs in raising risk capital from individuals, the Government have consulted, and are considering responses, on whether to create specific exemptions from the prohibition on financial promotion for defined classes of "high net worth individuals" and "sophisticated investors". This would enable smaller companies and others to communicate more easily with potential investors who are able and willing to invest without the standard protection offered by financial services legislation.

For institutional funds, the Government are creating a series of public-private partnerships to stimulate the supply of small scale and early stage venture capital across the UK's regions. The Department of Trade and Industry's Small Business Service (SBS) is in the process of establishing a UK High Technology Fund with a target size of £120 million, using a £20 million Government investment to lever in further capital from UK pension funds and other institutional investors. The SBS is also supporting the creation of a network of Regional Venture Capital Funds across the English regions. These will enable institutional funds and banks to invest, with SBS

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support, in venture funds which will specialise in financing the growth of smaller companies in particular regions.

The Chancellor announced in this Budget a further £100 million of Government funding for this activity over the next three years, with the aim of creating a £1 billion target umbrella fund by levering in significant additional amounts of private investment capital. The umbrella fund will encompass the public-private partnerships currently being established, along with further regional funds. SBS will work with the Regional Development Agencies and a new Small Business Investment Task Force to strengthen the risk capital market for SMEs through this programme.

In addition to creating specific incentives to encourage institutional funds to invest in certain types of risk capital, the Government are also concerned to understand whether there are factors encouraging institutional investors to follow industry-standard investment patterns which focus on quoted equities and gilts. The Chancellor has asked Paul Myners, Chairman of Gartmore investment managers, to conduct a review of institutional investment, to consider this and other issues, which will report back by Budget 2001.

To encourage UK companies to become more active risk capital investors in SMEs with growth potential, the Finance Bill introduces a new corporate venturing scheme. This will provide relief against corporation tax where a company takes a minority shareholding for a minimum period in a smaller higher risk trading company. It is likely to be particularly useful for high technology SMEs which can benefit from the investment and other non-financial support of larger companies operating in similar technology fields.

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer how much is invested in venture capital in the UK as a percentage of all pension funds; and what are the comparable figures for the USA. [124757]

Miss Melanie Johnson: Definitions of venture capital vary between countries: the UK definition normally includes leveraged buyout funds, whereas the US definition does not. In both countries, figures are based on surveys of some, rather than all pension funds and are therefore not precise.

The British Venture Capital Association has calculated figures based on the 1999 Annual Survey of the National Association of Pension Funds. According to these calculations, approximately 0.6 per cent. of the assets of those pension funds who responded to the Survey were invested in a broad definition of venture capital. A survey of 189 pension funds in the US (Source: Report on Alternative Investing by Tax Exempt Organisations 1999, Goldman Sachs and Frank Russell Company) showed 116 of them investing in alternative assets. Those 116 funds invested 6 per cent. of their assets in venture capital and leveraged buyout funds.

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