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24 Feb 2003 : Column 209W—continued
Duty Diversion Fraud
Mr. Laws: To ask the Chancellor of the Exchequer how many customs officials have been (a) investigated and (b) interviewed regarding their participation in duty diversion fraud for each year from 1994 to 2002. [97367]
John Healey: The Internal Investigation Division [IID] is responsible within HM Customs and Excise for staff irregularity matters. The division was created in the autumn of 2000. From that date the IID has held all central records relating to investigations of staff irregularity matters. Prior to the establishment of the IID, no central records were held.
As at 11 February 2003, its records show no customs officials as having been investigated and/or interviewed, by the police or internally, regarding their participation in duty diversion fraud.
Energy Efficiency
Mr. Chaytor: To ask the Chancellor of the Exchequer what plans he has to introduce enhanced capital allowances to encourage the purchase of (a) the most
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efficient domestic central heating systems and (b) energy saving products by (i) registered social landlords and (ii) energy service companies. [98667]
John Healey: Budget 2001 introduced 100 per cent first-year enhanced capital allowances (ECAs) for designated energy-saving plant and machinery. The ECA scheme enables businesses to write-off the whole cost of their investment in designated energy-saving equipment against the taxable profits of the period during which the investment is made.
Registered Social Landlords are non profit-making organisations and as such will not be able to claim capital allowances.
In the commercial sector, energy service companies can claim ECAs on their spending on qualifying equipment and special rules enable them to claim allowances where, as part of a comprehensive energy services agreement, they provide equipment that becomes a fixture on another person's land in which they have no interest.
The Government's Affordable Warmth Programme supports the installation of modern energy efficient central heating systems in low-income homes, including registered social landlord homes. The equipment is leased to the landlord and where the equipment is designated energy-saving equipment, special rules enable the lessor to claim the enhanced capital allowances. The benefit can be passed on in the form of lower rentals.
The Government consulted on economic instruments to improve household energy efficiency during 2002 and a summary of responses has been published on the HMT website. PBR 2002 stated that the Government would consult further on specific measures to promote greater energy efficiency by households, once the responses to the initial consultation have been fully considered.
Mr. Chaytor: To ask the Chancellor of the Exchequer how the price in real terms paid by the domestic consumer has changed since 1997 for the purchase of (a) domestic electricity and gas, (b) insulation materials, (c) high efficiency boilers, (d) draught-proofing, (e) double glazing and (f) low energy light-bulbs. [98666]
Ruth Kelly: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.
Letter from Len Cook to Mr. David Chaytor, dated 24 February 2003:
- As National Statistician I have been asked to reply to your recent question asking for the change in price in real terms since 1997 of (a) domestic electricity and gas, (b) insulation materials, (c) high efficiency boilers, (d) draught-proofing, (e) double glazing and (f) low energy light-bulbs. (98666)
- The Office for National Statistics publishes separate sub-indices of the Retail Prices Index for domestic electricity and gas, but not for any of the other items to which you refer.
- The following table gives the index numbers relating to the relevant sub-indices for domestic electricity and gas and for the All Items RPI. The figures are for the annual average for 1997 and for January 2003 (the most recently published), together with the corresponding percentage change.
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| Average 1997 index | January 2003 index | Percentage change | |
|---|---|---|---|
| All items RPI | 157.5 | 178.4 | +13.% |
| Electricity | 140.0 | 128.9 | -7.9% |
| Gas | 123.1 | 126.4 | +2.7% |
Between the 1997 average and January 2003 the electricity index fell by 7.9% whilst the gas index rose by 2.7%. In contrast the All Items RPI increased by 13.3%.
Euro
Mr. Rosindell: To ask the Chancellor of the Exchequer, pursuant to the answer of 30 January 2003, Official Report, column 991W, on the euro, whether the issue of single European currency has been discussed during meetings between Government officials and representatives of Gibraltar; which Government officials are responsible for liaison with officials from Guernsey; what issues have been discussed by Government officials with representatives of Jersey; and when the most recent discussion between Government officials and representatives of the Isle of Man was. [98482]
Ruth Kelly: I refer the hon. Member to my answer to him on 30 January 2003, Official Report, column 991W.
Mr. Drew: To ask the Chancellor of the Exchequer how many investigations his Department is undertaking into the five tests for the euro. [98898]
Ruth Kelly: The 6 September 2002 Paper for the Treasury Committee set out that a number of supporting studies will be published alongside the assessment of the five tests. On 12 February 2003, Official Report, column 884, the Chancellor of the Exchequer made clear that an additional four studies will be published.
Mr. Stephen O'Brien: To ask the Chancellor of the Exchequer if he will list the meetings he has had with the Prime Minister (a) in the last month and (b) regarding the UK's entry into the Euro currency zone in the last month. [99024]
Ruth Kelly: The Chancellor meets regularly with the Prime Minister to discuss a wide range of issues.
Fair Trade Fortnight
Mr. Drew: To ask the Chancellor of the Exchequer what steps his Department is taking to promote Fair Trade Fortnight. [98900]
Ruth Kelly: My right hon. Friend strongly supports the work of the Fair Trade Foundation in helping the poorest people in developing countries to benefit more from trade. The range of fair trade beverages already on offer in the Treasury's Restaurant and Coffee Shop will be extended during Fair Trade Fortnight, and fair trade confectionery products will also be available.
Gibraltar
Mr. Rosindell: To ask the Chancellor of the Exchequer whether minutes of meetings between his Department's officials and representatives from Gibraltar are published. [99109]
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Dawn Primarolo: I refer the hon. Gentleman to the answer given by the Chancellor of the Exchequer on 11 February 2002, Official Report, columns 114–15W.
Gross Domestic Product
Mr. Stephen O'Brien: To ask the Chancellor of the Exchequer, pursuant to his answer of 10 February 2003, Official Report, column 607W, on gross domestic product, if he will publish the research used to make the assumption that trend output growth is ¼ percentage point lower than the Government's neutral view. [99125]
Ruth Kelly: The Treasury's analysis of the rate of trend growth in output is set out in "Trend Growth: Recent Developments and Prospects" (HM Treasury, April 2002), which is available online at www.hm-treasury.gov.uk.
For the purposes of the public finances projections the Government adopt a deliberately cautious assumption for trend growth that is ¼ percentage point below its neutral view. In the interests of stability and robust, medium-term fiscal planning, this strikes the right balance between being a reasonable and a cautious assumption.
As set out in paragraph B20 of the 2002 pre-Budget report, over the period to 2006–07 this gives rise to an assumed rate of 2½ per cent: the Comptroller and Auditor General has audited this assumption and concluded that it is "reasonable and cautious".
Health Cash Plans
Mr. Amess : To ask the Chancellor of the Exchequer whether Ministers in his Department have met non-profit distributing health cash plan providers to discuss the recent decision of the Inland Revenue to change the tax treatment of health cash plan providers; what changes in the constitutional governance and trading practices of such providers gave rise to the change in their assessed status; and when those changes arose. [96778]
John Healey: Ministers have had no meetings to discuss the tax treatment of health cash plan providers.
The Inland Revenue's inquiries into the tax returns of non-profit distributing health cash plan providers concluded that they were not meeting all the conditions for mutual trading and their mutual status for tax purposes was not justified. However, the Inland Revenue did not consider any changes of the sort described.
Mrs. Calton: To ask the Chancellor of the Exchequer what estimate he has made of how many individuals make contributions to health cash plans operated by non-profit-distributing organisations; and what assessment he has made of the impact on the charitable giving policies of such funds of recent changes in their tax treatment. [97606]
John Healey: Inquiries by the Inland Revenue discovered that health cash plan providers were not meeting all the conditions for mutual trading and their mutual status for tax purposes was not justified.
No estimate has been made of the number of contributors.
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No assessment has been made of the impact of these changes which depend largely on decisions taken by individual health cash plan providers.
Mr. Drew: To ask the Chancellor of the Exchequer (1) if he will make a statement on the impact on NHS projects that have previously received donations from not-for-profit providers of health cash plans of the changes resulting from the proposed introduction of corporation tax on operating surpluses; [98605]
- (2) if he will make a statement on what assessment he has made of the impact on those individuals who are contributing towards health cash plans of the proposals of the Treasury to impose corporation tax on operating surpluses. [98606]
John Healey: Health cash plan providers were exempt from corporation tax as they were regarded formally as trading mutually.
Following a review in 2000, the Inland Revenue concluded that these organisations did not meet all the conditions for mutual trading and their exemption was therefore withdrawn for the future. However, individual providers had the option of changing their rules so that they could continue to benefit from the tax exemption. Where organisations have taken this option, the Revenue has accepted them as being mutual throughout.
No assessment has been made of the impact of these changes.
Mr. Drew: To ask the Chancellor of the Exchequer if he will make a statement on why the Treasury launched a review of the tax treatment of health cash plans; and how he estimates this will impact on (a) policy holders and (b) recipients of charitable donations from those plans. [98607]
John Healey: The Inland Revenue has a right to inquire into any Self Assessment return, including those of health cash plan providers.
An inquiry into one of these organisations discovered that the conditions of mutual trading were not being met and therefore their mutual status was not legally valid and had to be withdrawn for tax purposes.
Further inquiries were subsequently carried out into the tax returns of other such organisations by the Inland Revenue. The Treasury conducted no review.
The Inland Revenue has to apply the law as it stands to ensure that organisations do not have favoured treatment to which they are strictly not entitled.
No assessment has been made of the impact of these changes, which depend largely on decisions taken by individual health cash plan providers.
Mr. Drew: To ask the Chancellor of the Exchequer whether representatives from the Treasury met representatives of the health cash plan industry to discuss the impact of proposed changes in health cash plans which will involve the introduction of corporation tax on their operating surpluses. [98603]
John Healey: Neither Ministers nor officials from the Treasury have held such a meeting. However, Inland Revenue officials have met with the British Health Care Association.
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Mr. Drew: To ask the Chancellor of the Exchequer if he will list the NHS projects that have received donations from not-for-profit providers of health cash plans in the latest year for which figures are available. [98604]
John Healey: The information requested is not available.
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