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Film Industry

Mr. Yeo: To ask the Chancellor of the Exchequer how many British films produced in 1999–2000 claimed the 100 per cent. tax write off during the first year; and what the total loss was in tax revenue resulting from these claims. [24083]

Mr. Andrew Smith: In 1999–2000 the Department for Culture, Media and Sport certified 76 "British qualifying" films costing less than £15 million under the Films Act

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1985. The estimated tax cost of relief provided to British qualifying films under section 48 of the Finance (No. 2) Act 1997 is £85 million for films produced in 1999–2000, over double the amount that would have been available under the previous arrangement.

Mr. Yeo: To ask the Chancellor of the Exchequer when he last met Mr. Jack Velenti of the Motion Picture Association of America; and what representations he has received from Mr. Velenti about extending the section 48 tax concession permitting qualifying British films with budgets under £15 million to claim 100 per cent. write-off in the first year. [24084]

Mr. Andrew Smith: The Chancellor receives numerous Budget representations, from a variety of sources. All taxes are kept under review and decisions are made as part of the normal Budget process. The expiry date for the tax relief provided by section 48 of the Finance (No. 2) Act 1997 was extended by three years to 1 July 2005 by Section 72 of the Finance Act 2001.

Scottish Provident Institution

Bob Russell: To ask the Chancellor of the Exchequer what representations he has received about the Scottish Provident Institution and the performance of the FSA in dealing with matters raised by Scottish Provident Action for Membership; and if he will make a statement. [24558]

Ruth Kelly: We regularly receive representations about a wide spectrum of issues.

Pensions

Mr. Willetts: To ask the Chancellor of the Exchequer what the marginal rates of tax and benefit withdrawal for pensioners are (a) in 2001–02 and (b) from October 2003. [24235]

Ruth Kelly: Pensioners currently face a variety of marginal deduction rates (MDRs), which range from 10 per cent. for those who are liable to pay tax at the lower rate only to 100 per cent. for those with incomes below the minimum income guarantee (MIG). Following the introduction of the pension credit (PC) in October 2003, pensioners will still face MDRs between 10 and 100 per cent. However, some 1.6 million pensioner households that currently face MDRs of 100 per cent., which will be eligible for the PC, will see their rate cut to 40 per cent. This is because pensioner households will receive 60 pence for every £1 of income they have above

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the level of the basic state pension (BSP) up to a maximum of £13.80 per week to reward them for saving for their retirement.

Child Poverty

Mr. Willetts: To ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Regents Park and Kensington, North (Ms Buck) of 27 November 2001, Official Report, column 868W, if the figure for the number of children lifted out of poverty since 1997 is net; and according to the same definition of poverty, how many children have entered poverty since 1997. [24243]

Mr. Andrew Smith: As a result of personal tax and benefit measures announced in the last Parliament, there are 1.2 million fewer children in poverty than there would otherwise have been.

Capital Assets

Matthew Taylor: To ask the Chancellor of the Exchequer, pursuant to his answer of 11 December 2001, Official Report, column 765W, on capital assets, which definition of investment he used in answering on (a) on the level of investment provided through PFI and (b) the level of total investment; and if he will make a statement. [24127]

Mr. Andrew Smith: Capital spending provided through PFI can be classified in national accounts as either investment by the public sector or by the private sector. The term private sector investment through PFI refers to PFI capital spending that is classified to the private sector.

Total investment in public services includes all capital expenditure financed through PFI, regardless of how that spending is classified in national accounts. It is measured gross of asset sales and before deducting depreciation.

Matthew Taylor: To ask the Chancellor of the Exchequer, pursuant to his answer of 12 December 2001, Official Report, column 889W, on capital assets, if he will place in the Library information on the accounting treatment of the public private partnership projects relating to (a) office automation in Customs and Excise, (b) NIRS2, (c) Manchester Inland Revenue offices, (d) Stockport Inland Revenue, (e) Bootle St. John's House, (f) Newcastle Estate Development Scheme, (g) CCTA MTS Telecoms Service and (h) Treasury GOGGS Building; and if he will make a statement. [24256]

Ruth Kelly: The information is as follows:

Project	Accounting treatment
Office automation in Customs and Excise	The initial contract and subsequent additions were reviewed to decide the appropriate accounting treatment for the PFI contract. The Department used FRS 5, "Reporting the substance of contracts", and the methodology prescribed in the Treasury Taskforce, Private Finance, Technical Note No.1 (revised), "How to account for PFI transactions" to determine the appropriate accounting treatment. The work carried out showed that the risks of ownership were borne by the provider and that the Department should not capitalise the assets.
NIRS2	The arrangements for this project pre-dated the issue of the Treasury guidance. The accounting treatment for the Inland Revenue projects mentioned is reported in note 22 of the Department's 2000–01 resource accounts. The projects are operating leases and consequently are not included in the Department's balance sheet as fixed assets.
Manchester Inland Revenue Offices	Inland Revenue follows Treasury guidance and adopts the processes therein. The accounting treatment for the Inland Revenue projects mentioned is reported in note 22 of the Department's 2000–01 resource accounts. The projects are operating leases and consequently are not included in the Department's balance sheet as fixed assets.
Stockport Inland Revenue	Inland Revenue follows Treasury guidance and adopts the processes therein. The accounting treatment for the Inland Revenue projects mentioned is reported in note 22 of the Department's 2000–01 resource accounts. The projects are operating leases and consequently are not included in the Department's balance sheet as fixed assets.
Bootle St. Johns House	Inland Revenue follows Treasury guidance and adopts the processes therein. The accounting treatment for the Inland Revenue projects mentioned is reported in note 22 of the Department's 2000–01 resource accounts. The projects are operating leases and consequently are not included in the Department's balance sheet as fixed assets.
Newcastle Estate Development Scheme	Inland Revenue follows Treasury guidance and adopts the processes therein. The accounting treatment for the Inland Revenue projects mentioned is reported in note 22 of the Department's 2000–01 resource accounts. The projects are operating leases and consequently are not included in the Department's balance sheet as fixed assets.
MTS Telecomms Service	OGCbuying.solutions, CCTA's successor body managing the telecoms contract service on behalf of Departments, follows Treasury guidance and adopts the processes therein. The outcomes of applying the guidance are as follows:
	On 1 January 1997, some telecommunications assets were transferred to Racal Telecom as part of an agreement under which Racal undertook to provide telecommunication services under agreed terms for a period of 10 years.
	Racal Telecomm (now Global Crossing) agreed as payment for those assets to abate the agreed level of payments for services under the contract, by an amount of £400,000 per annum for 10 years. The value of the payments over the 10 year period were sufficient to cover the book value of the assets at the time of transfer plus interest for the deferred payment schedule.
	The original £4 million was treated as a deferred debtor in the accounts of CCTA, following advice from NAO. The abatements (£400k per annum) reduce the deferred debtor on an on-going basis. This treatment has carried forward from April 2001 to OGCbuying.solutions accounts.
HM Treasury GOGGS Building	The Treasury's PFI agreement for refurbishment of its new building will take effect during 2002–03. The accounting treatment has yet to be decided. The agreement will be recorded in the Treasury's 2000–01 accounts as a post-balance sheet event.

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Aggregates Levy

Mr. Weir: To ask the Chancellor of the Exchequer if he will delay introduction of the aggregates levy in Scotland. [25025]

Mr. Boateng: The Government will not delay the introduction of the aggregates levy in Scotland, as this would only serve to delay the environmental benefits the levy will deliver.

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