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Dawn Primarolo: I apologise to the hon. Gentleman. I did not mean to avoid his question, I just forgot to answer it. A regulatory impact assessment is not included because, as he knows, the Government are not required to carry out such assessments of anti-avoidance measures, although he is challenging that. The costs are in the Red Book, but it is impossible to say how much the problem would continue to grow. The

14 May 2003 : Column 348

experience of the last Conservative Government of profit-related pay shows that initially payments are small but they end up being very large.

Mr. O'Brien: The Paymaster General is quite right—there is no obligation to produce a regulatory impact assessment. We have had many discussions about that when debating secondary legislation. Even though it is not required, in some cases it is offered, and we receive letters about that. The provision under consideration would have been a worthy candidate for such an assessment.

Mr. John Gummer (Suffolk, Coastal): Has my hon. Friend noticed that if the Government decide that any measure is an anti-avoidance measure, they are able to tell the Committee, "We do not need to give you the information that we ought to have"? We should point out to the Committee that that is a dangerous argument that leads to self-assessment and self-regulation.

Mr. O'Brien: I thank my right hon. Friend, not least because he speaks with experience of government. I am grateful for the opportunity to point out to the Committee, particularly to those who were detained elsewhere at the outset of our debate, the fact that I said that a theme of the Bill is to arm-wrestle as much of its content as possible into the cloak of anti-avoidance in a blatant attempt to stifle scrutiny and criticism. That arrogant approach, I said, was less about anti-avoidance than about a futile attempt by the Government and the Treasury at anti-accountability, which will not fool the hard-working citizens of this country. That answers precisely the point made by my right hon. Friend, with whom I could not agree more: anti-accountability is the inherent culture of this Government. There could have been recognition of unintended consequences in the clause, and the Government could have used it to close a loophole. However, they have blatantly disregarded our arguments, and the clause is now a slap in the face for domestic workers who have incorporated.

Mr. Bercow: Given that the Government have consistently spun the policy as a response to abuse by fat cat entrepreneurs, and given that my hon. Friend made the seminal point that its main victims will be some of the most vulnerable people in our society, would it not be helpful to know how many cooks, cleaners and gardeners may be affected by the provision? The Opposition have a responsibility to communicate to those people the scale of the damage that the Government are inflicting on them.

Mr. O'Brien: It is impossible to give those numbers without a census, but it certainly is our duty to speak up for those people. It is interesting that Mr. Neil Hamper from the Federation of Small Businesses said that people running their own businesses should be able to choose which business model suits them best. They should not have to contend with the hoops and hurdles of incorporation to secure generous tax breaks. That is the problem: people incorporated to take advantage of a tax break touted by the Government. My right hon. Friend the Member for Wokingham (Mr. Redwood) properly pointed out that the extent of that incentive

14 May 2003 : Column 349

depends on the way in which the differential is measured, but there is a differential none the less, so the incentive remains. Seeking to end an abuse that has not been proven is, in fact, an abuse by the Government.

Mr. George Osborne: My hon. Friend has spoken about consultation and its impact. Has he had the opportunity to discuss the matter with the hon. Member for St. Helens, South (Mr. Woodward), an expert on these matters, who may have been able to help him draft amendments?

Mr. O'Brien: I am grateful to my hon. Friend for that colourful example. I gave a speech in St. Helens only the other day, but did not spot the hon. Gentleman or his alleged butler.

We have a duty to point out the unintended consequences of the clause. However, the Government have made plain that its intended consequence is a slap in the face for certain people. They have slammed the door shut on people who took advantage of a tax break in good faith. We should speak up for the people whom my hon. Friend the Member for Buckingham (Mr. Bercow) mentioned, and I urge my right hon. and hon. Friends and everyone else who accepts the power of these arguments to join me in the Lobby.

Question put, That the amendment be made:—

The Committee divided: Ayes 172, Noes 283.

Division No. 196
[2:39 pm


AYES


Ainsworth, Peter (E Surrey)
Allan, Richard
Amess, David
Atkinson, David (Bour'mth E)
Atkinson, Peter (Hexham)
Bacon, Richard
Baldry, Tony
Barker, Gregory
Baron, John (Billericay)
Barrett, John
Beggs, Roy (E Antrim)
Bellingham, Henry
Bercow, John
Beresford, Sir Paul
Blunt, Crispin
Boswell, Tim
Bottomley, Peter (Worthing W)
Brady, Graham
Brake, Tom (Carshalton)
Brazier, Julian
Breed, Colin
Brooke, Mrs Annette L.
Browning, Mrs Angela
Burnett, John
Burt, Alistair
Butterfill, John
Cable, Dr. Vincent
Cameron, David
Campbell, Gregory (E Lond'y)
Campbell, rh Menzies (NE Fife)
Carmichael, Alistair
Cash, William
Chapman, Sir Sydney (Chipping Barnet)
Chope, Christopher
Clappison, James
Clarke, rh Kenneth (Rushcliffe)
Collins, Tim
Conway, Derek
Cotter, Brian
Cran, James (Beverley)
Curry, rh David
Davey, Edward (Kingston)
Davis, rh David (Haltemprice & Howden)
Djanogly, Jonathan
Dodds, Nigel
Duncan, Alan (Rutland)
Duncan, Peter (Galloway)
Duncan Smith, rh Iain
Ewing, Annabelle
Fabricant, Michael
Field, Mark (Cities of London & Westminster)
Flight, Howard
Flook, Adrian
Forth, rh Eric
Foster, Don (Bath)
Garnier, Edward
George, Andrew (St. Ives)
Gibb, Nick (Bognor Regis)
Gidley, Sandra
Gillan, Mrs Cheryl
Gray, James (N Wilts)
Green, Damian (Ashford)
Green, Matthew (Ludlow)
Grieve, Dominic
Gummer, rh John
Hague, rh William
Hammond, Philip
Hancock, Mike
Harris, Dr. Evan (Oxford W & Abingdon)
Harvey, Nick
Hawkins, Nick
Heald, Oliver
Heath, David
Hendry, Charles
Hermon, Lady
Hoban, Mark (Fareham)
Hogg, rh Douglas
Horam, John (Orpington)
Howarth, Gerald (Aldershot)
Jack, rh Michael
Johnson, Boris (Henley)
Key, Robert (Salisbury)
Kirkbride, Miss Julie
Lait, Mrs Jacqui
Lamb, Norman
Lansley, Andrew
Laws, David (Yeovil)
Leigh, Edward
Lewis, Dr. Julian (New Forest E)
Liddell-Grainger, Ian
Lidington, David
Lilley, rh Peter
Loughton, Tim
McIntosh, Miss Anne
Mackay, rh Andrew
Maclean, rh David
McLoughlin, Patrick
Malins, Humfrey
Mercer, Patrick
Mitchell, Andrew (Sutton Coldfield)
Moore, Michael
Moss, Malcolm
Murrison, Dr. Andrew
Norman, Archie
Oaten, Mark (Winchester)
O'Brien, Stephen (Eddisbury)
Öpik, Lembit
Osborne, George (Tatton)
Ottaway, Richard
Paice, James
Paterson, Owen
Pickles, Eric
Price, Adam (E Carmarthen & Dinefwr)
Prisk, Mark (Hertford)
Pugh, Dr. John
Redwood, rh John
Reid, Alan (Argyll & Bute)
Rendel, David
Robathan, Andrew
Robertson, Angus (Moray)
Robertson, Laurence (Tewk'b'ry)
Robinson, Peter (Belfast E)
Rosindell, Andrew
Russell, Bob (Colchester)
Salmond, Alex
Sanders, Adrian
Sayeed, Jonathan
Selous, Andrew
Shephard, rh Mrs Gillian
Shepherd, Richard
Simmonds, Mark
Simpson, Keith (M-Norfolk)
Smith, Sir Robert (W Ab'd'ns & Kincardine)
Smyth, Rev. Martin (Belfast S)
Spelman, Mrs Caroline
Spicer, Sir Michael
Spink, Bob (Castle Point)
Spring, Richard
Steen, Anthony
Streeter, Gary
Stunell, Andrew
Swayne, Desmond
Swire, Hugo (E Devon)
Syms, Robert
Tapsell, Sir Peter
Taylor, Ian (Esher)
Taylor, John (Solihull)
Taylor, Matthew (Truro)
Taylor, Dr. Richard (Wyre F)
Taylor, Sir Teddy
Thomas, Simon (Ceredigion)
Thurso, John
Trend, Michael
Trimble, rh David
Turner, Andrew (Isle of Wight)
Tyler, Paul (N Cornwall)
Tyrie, Andrew
Viggers, Peter
Waterson, Nigel
Watkinson, Angela
Webb, Steve (Northavon)
Weir, Michael
Whittingdale, John
Wiggin, Bill
Wilkinson, John
Willetts, David
Willis, Phil
Winterton, Ann (Congleton)
Wishart, Pete
Yeo, Tim (S Suffolk)
Young, rh Sir George
Younger-Ross, Richard

Tellers for the Ayes:


Mr. Mark Francois and
Mr. David Wilshire


NOES


Adams, Irene (Paisley N)
Ainger, Nick
Ainsworth, Bob (Cov'try NE)
Alexander, Douglas
Allen, Graham
Anderson, Janet (Rossendale & Darwen)
Armstrong, rh Ms Hilary
Atkins, Charlotte
Austin, John
Bailey, Adrian
Baird, Vera
Banks, Tony
Barnes, Harry
Barron, rh Kevin
Battle, John
Bayley, Hugh
Beard, Nigel
Beckett, rh Margaret
Benn, Hilary
Bennett, Andrew
Benton, Joe (Bootle)
Betts, Clive
Blackman, Liz
Blears, Ms Hazel
Blizzard, Bob
Boateng, rh Paul
Borrow, David
Bradley, rh Keith (Withington)
Bradley, Peter (The Wrekin)
Bradshaw, Ben
Brennan, Kevin
Brown, rh Nicholas (Newcastle E Wallsend)
Brown, Russell (Dumfries)
Browne, Desmond
Burden, Richard
Burgon, Colin
Burnham, Andy
Byers, rh Stephen
Caborn, rh Richard
Cairns, David
Campbell, Alan (Tynemouth)
Campbell, Ronnie (Blyth V)
Casale, Roger
Challen, Colin
Chapman, Ben (Wirral S)
Chaytor, David
Clapham, Michael
Clark, Mrs Helen (Peterborough)
Clark, Dr. Lynda (Edinburgh Pentlands)
Clarke, rh Tom (Coatbridge & Chryston)
Clarke, Tony (Northampton S)
Clelland, David
Clwyd, Ann (Cynon V)
Coaker, Vernon
Coffey, Ms Ann
Coleman, Iain
Colman, Tony
Cooper, Yvette
Corbyn, Jeremy
Cousins, Jim
Crausby, David
Cruddas, Jon
Cryer, Ann (Keighley)
Cryer, John (Hornchurch)
Cummings, John
Cunningham, Tony (Workington)
Curtis-Thomas, Mrs Claire
Davey, Valerie (Bristol W)
David, Wayne
Davies, rh Denzil (Llanelli)
Davies, Geraint (Croydon C)
Davis, rh Terry (B'ham Hodge H)
Dawson, Hilton
Dean, Mrs Janet
Denham, rh John
Dhanda, Parmjit
Dobson, rh Frank
Doran, Frank
Drew, David (Stroud)
Drown, Ms Julia
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Efford, Clive
Ennis, Jeff (Barnsley E)
Etherington, Bill
Farrelly, Paul
Field, rh Frank (Birkenhead)
Fisher, Mark
Flint, Caroline
Flynn, Paul (Newport W)
Follett, Barbara
Foster, rh Derek
Foster, Michael (Worcester)
Foulkes, rh George
Francis, Dr. Hywel
Gapes, Mike (Ilford S)
Gardiner, Barry
Gerrard, Neil
Gibson, Dr. Ian
Gilroy, Linda
Griffiths, Jane (Reading E)
Griffiths, Nigel (Edinburgh S)
Griffiths, Win (Bridgend)
Grogan, John
Hall, Mike (Weaver Vale)
Hall, Patrick (Bedford)
Hamilton, Fabian (Leeds NE)
Hanson, David
Harris, Tom (Glasgow Cathcart)
Havard, Dai (Merthyr Tydfil & Rhymney)
Healey, John
Henderson, Doug (Newcastle N)
Henderson, Ivan (Harwich)
Hendrick, Mark
Hepburn, Stephen
Heppell, John
Hesford, Stephen
Hewitt, rh Ms Patricia
Heyes, David
Hill, Keith (Streatham)
Hinchliffe, David
Hodge, Margaret
Hoey, Kate (Vauxhall)
Hood, Jimmy (Clydesdale)
Hoon, rh Geoffrey
Hope, Phil (Corby)
Howarth, George (Knowsley N & Sefton E)
Howells, Dr. Kim
Hughes, Beverley (Stretford & Urmston)
Hughes, Kevin (Doncaster N)
Hurst, Alan (Braintree)
Hutton, rh John
Irranca-Davies, Huw
Jackson, Glenda (Hampstead & Highgate)
Jackson, Helen (Hillsborough)
Jamieson, David
Jenkins, Brian
Johnson, Alan (Hull W)
Johnson, Miss Melanie (Welwyn Hatfield)
Jones, Jon Owen (Cardiff C)
Jones, Lynne (Selly Oak)
Jowell, rh Tessa
Joyce, Eric (Falkirk W)
Kaufman, rh Gerald
Keeble, Ms Sally
Keen, Alan (Feltham)
Keen, Ann (Brentford)
Kemp, Fraser
Khabra, Piara S.
Kidney, David
Kilfoyle, Peter
King, Andy (Rugby)
King, Ms Oona (Bethnal Green & Bow)
Knight, Jim (S Dorset)
Kumar, Dr. Ashok
Ladyman, Dr. Stephen
Lammy, David
Laxton, Bob (Derby N)
Lazarowicz, Mark
Lepper, David
Levitt, Tom (High Peak)
Lewis, Terry (Worsley)
Linton, Martin
Lloyd, Tony (Manchester C)
Love, Andrew
Lucas, Ian (Wrexham)
Luke, Iain (Dundee E)
Lyons, John (Strathkelvin)
McAvoy, Thomas
McCabe, Stephen
McCartney, rh Ian
McDonagh, Siobhain
MacDonald, Calum
MacDougall, John
McFall, John
McGuire, Mrs Anne
McIsaac, Shona
McKechin, Ann
MacShane, Denis
Mactaggart, Fiona
McWalter, Tony
Mahon, Mrs Alice
Mallaber, Judy
Mann, John (Bassetlaw)
Marsden, Gordon (Blackpool S)
Marshall, Jim (Leicester S)
Martlew, Eric
Meale, Alan (Mansfield)
Merron, Gillian
Michael, rh Alun
Miliband, David
Miller, Andrew
Moffatt, Laura
Moonie, Dr. Lewis
Morley, Elliot
Mountford, Kali
Mudie, George
Mullin, Chris
Murphy, Denis (Wansbeck)
Naysmith, Dr. Doug
Norris, Dan (Wansdyke)
O'Brien, Bill (Normanton)
O'Hara, Edward
O'Neill, Martin
Organ, Diana
Owen, Albert
Palmer, Dr. Nick
Perham, Linda
Picking, Anne
Pickthall, Colin
Plaskitt, James
Pond, Chris (Gravesham)
Pound, Stephen
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Prescott, rh John
Primarolo, rh Dawn
Prosser, Gwyn
Purnell, James
Rapson, Syd (Portsmouth N)
Raynsford, rh Nick
Reid, rh Dr. John (Hamilton N & Bellshill)
Robertson, John (Glasgow Anniesland)
Robinson, Geoffrey (Coventry NW)
Roche, Mrs Barbara
Rooney, Terry
Ross, Ernie (Dundee W)
Roy, Frank (Motherwell)
Ruddock, Joan
Russell, Ms Christine (City of Chester)
Ryan, Joan (Enfield N)
Salter, Martin
Sarwar, Mohammad
Savidge, Malcolm
Sawford, Phil
Shaw, Jonathan
Sheerman, Barry
Sheridan, Jim
Shipley, Ms Debra
Simon, Siôn (B'ham Erdington)
Singh, Marsha
Smith, rh Andrew (Oxford E)
Smith, John (Glamorgan)
Smith, Llew (Blaenau Gwent)
Soley, Clive
Southworth, Helen
Spellar, rh John
Squire, Rachel
Starkey, Dr. Phyllis
Stinchcombe, Paul
Sutcliffe, Gerry
Tami, Mark (Alyn)
Taylor, Dari (Stockton S)
Taylor, David (NW Leics)
Thomas, Gareth (Clwyd W)
Thomas, Gareth (Harrow W)
Tipping, Paddy
Todd, Mark (S Derbyshire)
Touhig, Don (Islwyn)
Trickett, Jon
Truswell, Paul
Turner, Dr. Desmond (Brighton Kemptown)
Turner, Neil (Wigan)
Twigg, Derek (Halton)
Tynan, Bill (Hamilton S)
Vaz, Keith (Leicester E)
Vis, Dr. Rudi
Ward, Claire
Wareing, Robert N.
Watson, Tom (W Bromwich E)
Watts, David
White, Brian
Whitehead, Dr. Alan
Williams, rh Alan (Swansea W)
Winnick, David
Wood, Mike (Batley)
Woodward, Shaun
Woolas, Phil
Worthington, Tony
Wright, Anthony D. (Gt Yarmouth)
Wright, David (Telford)
Wright, Tony (Cannock)
Wyatt, Derek

Tellers for the Noes:


Mr. Ivor Caplin and
Mr. Jim Murphy

Question accordingly negatived.

14 May 2003 : Column 352

Clause 135 ordered to stand part of the Bill.

Clause 138


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