22 May 2003 : Column 881W

Written Answers to Questions

Thursday 22 May 2003

TREASURY

Cancer

Mr. MacDougall: To ask the Chancellor of the Exchequer what the most recent cancer survival rates for the most common forms of cancer are in the UK; and what information he has received on survival rates in (a) other EU, (b) other G8 and (c) EU applicant countries. [114617]

John Healey: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.

Letter from Len Cook to Mr. MacDougall, dated 22 May 2003:









Biodiesel Duty

Mr. Cummings: To ask the Chancellor of the Exchequer if he will develop the tax derogation on biodiesel to support the rural economies. [114795]

John Healey: The Chancellor reviews all taxation policies taking account of relevant economic, social and environmental factors in forming his Budget judgment.

Mr. Jack: To ask the Chancellor of the Exchequer if he will publish the calculations which he used to determine that £0.2710 shall be the biodiesel duty rate. [112891]

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John Healey [holding answer 13 May 2003]: The new biodiesel rate of 27.10 pence per litre was chosen to maintain the 20 pence per litre duty differential with ultra-low sulphur diesel. The Government offers lower duty rates for less environmentally-damaging fuels by offering duty differentials relative to the main road fuels. These differentials are intended primarily to reflect the relative environmental benefits of the fuels in question. In determining the size of the duty incentive for biodiesel, the Government has taken into account principally the environmental benefits of the fuel, which amount to approximately 55 per cent. carbon emissions savings on a lifecycle basis, as well as a range of other benefits offered by the fuel, including fuel security benefits and the potential to encourage the recycling of waste products.

Capital Modernisation Fund

Matthew Taylor: To ask the Chancellor of the Exchequer pursuant to his Answer of 28 February 2003, Official Report, column 767W, on the Capital Modernisation Fund, why the Customs and Excise anti drug surveillance was terminated in February 2002; and if he will make a statement. [114593]

John Healey: The contractor was unable to meet the user specification.

Proceeds of Crime

Mr. Sheerman: To ask the Chancellor of the Exchequer what steps the Government is taking to tackle organised gangs funded from the proceeds of drug sales. [114225]

John Healey: The Proceeds of Crime Act 2002 provides extensive new powers for police and customs officers to seize the proceeds of all crimes, including drug trafficking. This is often the working capital for organised gangs, and recovering those proceeds will prevent them being used to fund further criminal activity.

Energy Efficiency

Matthew Taylor: To ask the Chancellor of the Exchequer what targets he has for improving energy efficiency; and how he intends to achieve these targets. [114843]

John Healey: The UK has a legally binding target under the Kyoto Protocol to reduce greenhouse gas emissions by 12.5 per cent. below 1990 levels by 2012. In addition, as set out in the Climate Change Programme published in 2000, the UK has set a domestic goal of reducing carbon dioxide emissions by 20 per cent. by 2010. The Energy White Paper, published in February 2003 reaffirmed this goal and the expectation that more than half of the emissions reductions in the Climate Change Programme—around 10 MtC by 2010—would come from energy efficiency.

The Energy White Paper sets out the measures which the Government is taking forward to achieve these reductions.

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In addition to this, the Department for Environment, Food and Rural Affairs also has a specific Public Sector Agreement target to reduce fuel poverty among vulnerable households by improving the energy efficiency of 600,000 homes between 2001 and 2004.

Environment

Matthew Taylor: To ask the Chancellor of the Exchequer what assessment is made (a) of the environmental impact and (b) against sustainable development criteria of the bids made for contracts awarded by his Department; who makes such an assessment; and whether these assessments are published. [114841]

John Healey: It is Government policy to ensure that the relevant officials consider environmental/sustainable development impacts, along with a range of other criteria, when contract bids are assessed. Such assessments are not published.

Matthew Taylor: To ask the Chancellor of the Exchequer what assessment is made (a) of the environmental impact and (b) against sustainable development criteria, of the bids made for the different grants awarded by his Department; who makes such an assessment; and whether these assessments are published. [114844]

John Healey: The Treasury provides grants and grants in aid to the following bodies: Commonwealth Parliamentary Association; British-American Parliamentary Group; Inter-Parliamentary Union; British-Irish Inter-Parliamentary Body; and Statistics Commission.

EU-Israel Association Agreement

Richard Burden: To ask the Chancellor of the Exchequer what progress is being made with the composition of duty on goods imported to the UK claiming preference under the EU-Israel Association Agreement but where the goods involved are believed to originate in illegal Israeli settlements in the Golan Heights or the Occupied Palestinian Territories. [114847]

John Healey: As at 16 May 2003, Customs have sent 41 verification requests to the Israeli authorities covering 332 claims to preference. Duty totalling £20,095 has been demanded from importers following exhaustion of the verification process.

Financial Statement and Budget Report

Mr. Willetts: To ask the Chancellor of the Exchequer if he will re-publish Table 4.2 in the Budget Red Book, HC500, to show the number of working households facing a marginal deduction rate of (a) over 50 per cent. and (b) over 40 per cent. [114417]

Mr. Boateng: The table shows estimates of the numbers facing marginal deduction rates (MDRs) in excess of 40 per cent.

Marginal deductionrate percentageBefore budget 19982003–04 system of tax and benefits
Over 1005,0000
Over 90130,00030,000
Over 80300,000135,000
Over 70740,000185,000
Over 60760,0001,490,000
Over 50760,0001,675,000
Over 40800,0001,800,000

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This analysis does not take into account the way in which the new tax credits will respond to rises in income, described in detail in The Child and Working Tax Credit. The new tax credits only respond to rises in income in the current year of more than £2,500, disregarding the first £2,500 of any risk. This means that recipients will not see their tax credits reduced as soon as their income rises, so reducing the effective marginal deduction in any one year.

Figures are cumulative. This table shows marginal deduction rates for working households in receipt of income related benefits or new tax credits, where at least one person works 16 hours or more a week and where higher earnings would lead to reduced benefits or tax credits. They include the marginal effects of income tax and national insurance contributions, and the withdrawal of housing benefit and council tax benefit.

As a result of the Government's reforms, over half a million fewer low-income households now face marginal deduction rates in excess of 70 per cent. than did so in April 1997. The increase in the number of households facing marginal deduction rates of between 40 and 70 per cent. is primarily due to the introduction of tax credits, and more recently the extension of support to workers aged 25 or over without children.


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