House of Commons Hansard Written Answers for 28 Jul 2000 (pt 52)

National Weights and Measures Laboratory

Mr. Ennis: To ask the Secretary of State for Trade and Industry if he will now make a statement about his plans for the National Weights and Measures Laboratory. [133933]

Dr. Howells: Further to the reply I gave to the hon. Member for Twickenham (Dr. Cable) on 28 June 2000, Official Report, column 518W about the review of the National Weights and Measures Laboratory, Ministers have now considered the reviewer's report. The reviewer has recommended that the policy part of NWML should be taken back into the Department organisationally and that the operational part should be contractorised by merger with the National Physical Laboratory, which is already contractorised. However, he accepted the view of the Review Steering Board that this option should not be pursued until a business plan for the merger could be prepared and until Ministers had assessed its value for money and feasibility. Ministers recognise that the recommended course of action has disadvantages as well as advantages. Nothing will be decided until further studies are complete. The reviewer's report will be published shortly. A copy will be placed in the Library of the House and on the Department's internet website.

Bridge Tolls

Mrs. Gilroy: To ask the Secretary of State for Trade and Industry what assessment he has made of the impact on competitiveness for new and current businesses which may be affected by the application of VAT on bridge tolls with particular regard to the Tamar Bridge; and what representations he has made to the Chancellor of the Exchequer about this matter. [133094]

Mr. Caborn: The Tamar Bridge is owned and operated jointly by Plymouth City Council and Cornwall County Council. It would be for them, in the first instance, to make such an assessment in setting toll charges. This Department has supported the Government's vigorous defence of its policy of not levying VAT on toll charges, in the proceedings before the European Court of Justice.

Venture Capital Companies

Mr. Love: To ask the Secretary of State for Trade and Industry what steps he is taking to increase the level of investment of pension funds in venture capital companies; and if he will make a statement. [133241]

Ms Hewitt: The Government share the concern about the level of investment that pension funds are currently making in venture capital.

In order to demonstrate to the investment community, including the pension funds, that good commercial returns can be made from investment in venture capital, the Government have established the UK High Technology Fund. The Government's commitment to invest £20 million into this fund has, to date, resulted in co-investment of £62 million from institutional co-investors, including

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pension funds, that are currently otherwise not investing in venture capital. The UK High Technology Fund is still raising money from institutional investors.

The Government have also demonstrated their concerns in this area by recently commissioning a review by Paul Myners, the Chairman of Gartmore Investment Managers, into any possible underlying structural factors which may deter institutional investment.

Payment of Bills

Mr. Miller: To ask the Secretary of State for Trade and Industry what proportion of bills were paid on time by Government Departments and their Agencies during the financial year 1999-2000. [133786]

Ms Hewitt: I am pleased to announce that there has been a further improvement in the payment performance of central Government as a whole. The overall payment performance shows that 97.8 per cent. of suppliers' bills were paid on time and Departments are making good progress towards meeting the 100 per cent. target set for this financial year.

There is no room for complacency. It is particularly important that the public sector sets an example to business and is seen to pay its bills on time. I am disappointed to see that a number of Departments and Agencies failed to meet this year's target of 100 per cent. I have taken steps to remind all Departments and Agencies of the importance of paying suppliers' bills on time and meeting the target.

I am particularly disappointed at my own Department's failure to meet the target. It is unacceptable that the Department which has overall responsibility for the Government's policy on prompt payment should itself fail to meet the target. My officials are introducing new measures designed to ensure that the DTI meets the target as soon as possible next year.

The Government are committed to improving the UK's payment culture. Late payment is a serious problem, particularly for small businesses. Not knowing when customers' bills will be paid means uncertain cashflow, increased borrowings, higher costs and reduced profits.

Government Departments and their Agencies are required to monitor their payment performance and to publish the results in their departmental or annual reports. The following table lists, by Department, the proportion of bills paid within 30 days, or other agreed credit period, of receipt of a valid invoice for the financial year 1999-2000.

Government Departments Payment Performance 1999-2000

Main Departments Paid on time (Percentage)

National Weights and Measures Laboratory⁽¹⁾ 100.00

National Investment and Loans Office 100.00

Privy Council Office 100.00

Radiocommunications Agency⁽¹⁾ 99.98

Registry of Friendly Societies 99.90

Ministry of Defence 99.77

Department for Culture, Media and Sport 99.59

Land Registry 99.26

Patent Office⁽¹⁾ 99.13

Office of Water Services 99.07

Public Records Office 99.06

Ordnance Survey 98.90

Government Actuary's Department 98.84

Export Credit Guarantee Department 98.60

Insolvency Service⁽¹⁾ 98.56

HM Treasury 98.51

Office for National Statistics 98.51

Office of Fair Trading 98.49

Office for Standards in Education 98.40

Office of the Rail Regulator 98.20

HM Customs and Excise 98.06

Inland Revenue 97.98

NI Department. Health Estates 97.95

Foreign and Commonwealth Office 97.90

Intervention Board for Agricultural Produce 97.81

Office of Telecommunications 97.68

Health and Safety Executive 97.58

Northern Ireland Office 97.56

Crown Prosecution Service 97.50

Lord Chancellor's Department 97.42

Charitable Commission 97.39

Department for Education and Employment 97.31

Forestry Commission 97.30

NI Department of Education 97.28

Government Communications HQ 97.14

PFO (GCHQ) 97.14

Department for National Savings 97.10

Department for International Development 96.82

Office of the Parliamentary Commissioner for Administration and Health Service Commissioners 96.48

Home Office 96.34

NI Court Service 96.32

Cabinet Office (OPS) 96.24

Department of Health 95.28

Department of Social Security 95.14

Shadow Strategic Rail Authority 94.78

Department of the Environment, Transport and the Regions 94.70

Serious Fraud Office 94.49

Royal Parks Agency⁽¹⁾ 94.00

NI Department. Environment inc. agencies 93.05

Treasury Solicitors Department 93.05

Department of Trade and Industry 93.00

Employment Tribunal Service⁽¹⁾ 93.00

NI Department of Agriculture and Rural Development 92.83

Companies House⁽¹⁾ 92.34

Royal Mint 91.00

NI Department of Finance and Personnel 90.22

Ministry of Agriculture, Fisheries and Food 89.51

Overall total 97.89

Main Departments	Paid on time (Percentage)
National Weights and Measures Laboratory⁽¹⁾	100.00
National Investment and Loans Office	100.00
Privy Council Office	100.00
Radiocommunications Agency⁽¹⁾	99.98
Registry of Friendly Societies	99.90
Ministry of Defence	99.77
Department for Culture, Media and Sport	99.59
Land Registry	99.26
Patent Office⁽¹⁾	99.13
Office of Water Services	99.07
Public Records Office	99.06
Ordnance Survey	98.90
Government Actuary's Department	98.84
Export Credit Guarantee Department	98.60
Insolvency Service⁽¹⁾	98.56
HM Treasury	98.51
Office for National Statistics	98.51
Office of Fair Trading	98.49
Office for Standards in Education	98.40
Office of the Rail Regulator	98.20
HM Customs and Excise	98.06
Inland Revenue	97.98
NI Department. Health Estates	97.95
Foreign and Commonwealth Office	97.90
Intervention Board for Agricultural Produce	97.81
Office of Telecommunications	97.68
Health and Safety Executive	97.58
Northern Ireland Office	97.56
Crown Prosecution Service	97.50
Lord Chancellor's Department	97.42
Charitable Commission	97.39
Department for Education and Employment	97.31
Forestry Commission	97.30
NI Department of Education	97.28
Government Communications HQ	97.14
PFO (GCHQ)	97.14
Department for National Savings	97.10
Department for International Development	96.82
Office of the Parliamentary Commissioner for Administration and Health Service Commissioners	96.48
Home Office	96.34
NI Court Service	96.32
Cabinet Office (OPS)	96.24
Department of Health	95.28
Department of Social Security	95.14
Shadow Strategic Rail Authority	94.78
Department of the Environment, Transport and the Regions	94.70
Serious Fraud Office	94.49
Royal Parks Agency⁽¹⁾	94.00
NI Department. Environment inc. agencies	93.05
Treasury Solicitors Department	93.05
Department of Trade and Industry	93.00
Employment Tribunal Service⁽¹⁾	93.00
NI Department of Agriculture and Rural Development	92.83
Companies House⁽¹⁾	92.34
Royal Mint	91.00
NI Department of Finance and Personnel	90.22
Ministry of Agriculture, Fisheries and Food	89.51

Overall total	97.89

⁽¹⁾ Agencies of the Department of Trade and Industry

⁽¹⁾ Agency in the Department of Culture, Media and Sport

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Competitive Mail Delivery

Mr. Mitchell: To ask the Secretary of State for Trade and Industry (1) what financial interests the Royal Mail holds in mail or parcel services in member states of the European Union; how much was received in respect of such interests in the last financial year; and if it counted toward any payment from the Royal Mail to the Chancellor of the Exchequer; [132666]

Mr. Alan Johnson: The Royal Mail holds no subsidiaries or financial interests in mail or parcel services in member states (outside of the UK). However the Post Office interests are as follows.

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Percentage

Company Member state Status (share holding)

CityMail Sweden AB Sweden ⁽¹⁾67

Citipost US based but with offices in Europe including France and Germany ⁽¹⁾100

Crie Group France ⁽¹⁾100

Der Kurier Germany ⁽¹⁾100

Extand S.A. France ⁽¹⁾100

German Parcel Germany ⁽¹⁾100

General Parcel Austria Austria ⁽¹⁾100

Nederlandse Paket Dienst The Netherlands ⁽¹⁾100

Pakke-Trans Denmark ⁽¹⁾100

Williames Ireland ⁽¹⁾100

Company	Member state	Status (share holding)
CityMail Sweden AB	Sweden	⁽¹⁾67
Citipost	US based but with offices in Europe including France and Germany	⁽¹⁾100
Crie Group	France	⁽¹⁾100
Der Kurier	Germany	⁽¹⁾100
Extand S.A.	France	⁽¹⁾100
German Parcel	Germany	⁽¹⁾100
General Parcel Austria	Austria	⁽¹⁾100
Nederlandse Paket Dienst	The Netherlands	⁽¹⁾100
Pakke-Trans	Denmark	⁽¹⁾100
Williames	Ireland	⁽¹⁾100

⁽¹⁾ Majority ownership.

⁽¹⁾ Fully owned.

The contributions of overseas interests to profits is reported in the Report and Accounts.

Mr. Mitchell: To ask the Secretary of State for Trade and Industry, pursuant to his answers of 13 June 2000, Official Report, columns 595-96W, and 10 July 2000, Official Report, columns 372-73W, concerning successive reductions in the lower limit authorising competitive mail delivery, what treaty article was used as the basis for Directive 96/97; when he expects to receive the advice of the Postal Services Commission concerning the further reduction to the limit; if he will list its members and who appointed them; what monopoly limits were in force in the United Kingdom for such Crown monopolies prior to and immediately after accession to the European Community for letters and packets; and when they were reduced or eliminated. [132664]

Mr. Alan Johnson: As stated in the answer of 13 June 2000, Official Report, columns 595-96W, Directive 96/97 was made under Articles 57(2), 66 and 100a of the Treaty establishing the European Community (now Articles 47(2), 55 and 95 in the consolidated version of the EU Treaty and the EC Treaty made by the Treaty of Amsterdam).

The advice of the Postal Services Commission concerning the minimum reserved area necessary to maintain the universal service is expected to be available during the first half of 2001.

I refer my hon. Friend to the answer given to my hon. Friend the Member for South Ribble (Mr. Borrow) on 4 June 2000, Official Report, columns 186-87W, which gave details of the appointment of members and chairman of the advisory Postal Services Commission which took up its functions under the Postal Services Regulations (S.I.1999/2107). They were appointed by the Secretary of State for Trade and Industry.

The UK joined the European Communities on 1 January 1973. The postal privilege of the Post Office before and after entry to the European Community was as defined in the Post Office Act 1969 where it was limited to the conveyance of letters (regardless of weight or price). The Postal Privilege (Suspension) Order (S.I.1981/1483) suspended the postal privilege in relation to the conveyance of a letter which is conveyed in consideration of a payment of not less than £1. The Order came into operation on 7 November 1981. It followed the introduction of the British Telecommunications Act 1981. The Postal Services Regulations (S.I.1999/2107) which

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also introduced the 350 gram element came into effect on 1 September 1999 but the pricing structure meant that this did not make any material change.

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