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Written Answers to Questions

Tuesday 25 February 2003

TREASURY

Gibraltar

Mr. Rosindell: To ask the Chancellor of the Exchequer what studies his Department has assessed of the possible effect on the (a) industry and (b) economy of Gibraltar if the UK were to enter the eurozone. [98913]

Ruth Kelly: The Government have made clear that a comprehensive and rigorous assessment of the five economic tests will be made within two years of the start of this Parliament.

Working Tax Credit

Mr. Steve Webb: To ask the Chancellor of the Exchequer if he will estimate how many (a) couples with children, (b) couples with no children and (c) single childless people will be entitled to the new working tax credit. [94024]

Dawn Primarolo: The Working Tax Credit is expected to benefit 1.35m families with and without children.

Asbestos

Mr. Heald: To ask the Chancellor of the Exchequer what estimate he has made of the annual cost (a) in each year since its introduction and (b) over the next five years of tax relief on work done to remove asbestos; and if he will make a statement. [98656]

John Healey: The legislation is intended to aid the regeneration of sites that are contaminated by harmful substances, not just asbestos. Estimates of the cost for cleaning sites contaminated with asbestos are therefore not available. However, the full cost of the Finance Act 2001 relief for regeneration of sites contaminated by harmful substances was estimated at £50 million in 2001–02, £85 million in 2002–03 and £75 million in 2003–04. Figures for the remaining two years are not available.

Mr. Heald: To ask the Chancellor of the Exchequer if he will make a statement on the (a) verification and (b) auditing arrangements for claims for tax relief on work done to remove asbestos. [98657]

Dawn Primarolo: Claims for land remediation relief under the Finance Act 2001 provisions are subject to the same verification and auditing arrangements as any other entry in a Corporation Tax return.

Child Tax Credit

Mr. Webb: To ask the Chancellor of the Exchequer if he will estimate how many couples are ineligible for children's tax credit because the income of the highest

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earner is too high, but would be eligible for child tax credit because their joint income is below the upper limit. [94048]

Dawn Primarolo [holding answer 28 January 2003]: Without FRS data for 2002–03 it is not possible to provide reliable estimates.

Climate Change Levy

Mr. Prisk: To ask the Chancellor of the Exchequer what estimates his Department has made of the annual cost to British industry of the climate change levy (a) overall and (b) per sector. [98712]

John Healey: The climate change levy is expected to raise about £0.9 billion from business and the public sector in 2002–03. This has been recycled back to these sectors through a 0.3 percentage point cut in employers' national insurance contributions, support for enhanced capital allowances for investments in energy efficiency measures, and spending on renewable energy and energy efficiency, principally through the Carbon Trust.

The levy package is expected to be broadly revenue neutral between industry and the service sector. It is not possible to determine the impact on individual sectors as this depends on the extent to which they are eligible for discounts for energy-intensive users, their use of levy-exempt renewable energy and combined heat and power, and their take-up of the enhanced capital allowances and support from the Carbon Trust.

Mr. Prisk: To ask the Chancellor of the Exchequer (1) what measures have been taken to assist sectors that are unable to comply with the Integrated Pollution Prevention and Control Directive, and are ineligible for a rebate on the climate change levy, with the cost of the climate change levy; [98714]

John Healey: The climate change levy (CCL) was introduced in a package which involves reductions to employer national insurance contributions and support for energy efficiency, which is broadly revenue neutral to business as a whole. As part of the package, the Government supports businesses investing in approved energy-saving technologies through enhanced capital allowances. All businesses can take advantage of the help available from the CCL funded Carbon Trust which supports energy efficiency improvements by business and the development of low carbon technologies. Some of the Carbon Trust schemes, for example their small firms loan scheme, are intended specifically to benefit small firms. In addition, many of the smallest businesses' energy use will be below that at which levy becomes payable, so will not pay any levy at all.

In recognition of the need to protect the competitiveness of energy-intensive industries subject to international competition, the Government allows an 80 per cent. discount from the levy for businesses in energy-intensive sectors covered by the Integrated Pollution Prevention and Control (IPPC) regime, providing they have entered into climate change agreements with the Department for Environment, Food and Rural Affairs

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(DEFRA) to meet two-yearly energy efficiency targets. The Government targets relief from the levy on those sectors covered by the IPPC as it covers the main energy-intensive sectors subject to international competition.

Finally, in order to give all businesses an incentive to agree to emissions targets, the Government have also launched the UK emissions trading scheme, with an incentive worth £150 million after tax over five years.

Departmental Staff (Northern Ireland)

Mr. McNamara: To ask the Chancellor of the Exchequer what the (a) numerical and (b) percentage breakdown by perceived community origin are of (i) Inland Revenue and (ii) Customs and Excise staff employed in Northern Ireland. [97791]

John Healey: The information is as follows:

HM Customs and Excise

Out of the total number of 631 the numerical (a) and percentage (b) breakdown by perceived community origin of HM Customs and Excise staff employed in Northern Ireland as at 1 January 2003 is:

NumberPercentage
Protestant22936
Roman Catholic35557

It has not been possible to determine the community origin of 7 per cent. of staff.

Inland Revenue

Out of the total number of 1,703 the numerical (a) and percentage (b) breakdown by perceived community origin of Inland Revenue staff employed in Northern Ireland as at 1 January 2003 is:

NumberPercentage
Protestant74544
Roman Catholic83849

It has not been possible to determine the community origin of 7 per cent. of staff.

Liquefied Petroleum Gas

Mr. Drew: To ask the Chancellor of the Exchequer what financial aid is available for those petrol stations which wish to supply liquefied petroleum gas. [98899]

John Healey: Government policy on encouraging the use of liquefied petroleum gas (LPG) has centred on encouraging the use of vehicles through lower rates of excise duty and grants to convert cars to LPG through the powershift programme. This policy has been very successful with over 1,100 stations now selling LPG across the country compared to 150 in 1998.

Meetings

Mr. Rosindell: To ask the Chancellor of the Exchequer (1) whether meetings between officials of his Department and representatives of Guernsey are held on Jersey; [98912]

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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.

Metallgesellschaft Case (Compensation)

Denzil Davies: To ask the Chancellor of the Exchequer how much compensation has been paid to claimants by the Inland Revenue following the decision of the ECJ in the case of Metallgesellschaft (C-397/98); and what his estimate is of the total amount that will be paid. [98548]

Dawn Primarolo: To date, the Inland Revenue has paid a total of £32,489,711.

Other claims made on the basis of this decision are still subject to legal proceedings. It is impossible, at this time, to estimate the total amount that might be paid in the future.


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