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19 Jun 2003 : Column 383W—continued
Contributions Agency
Annabelle Ewing: To ask the Chancellor of the Exchequer who the head of the Contributions Agency was in 1998; how many meetings the head of the Contributions Agency had with Ministers in the Department of Social Security in 1998; whether minutes were kept of such meetings; whether written reports were prepared in 1998 by the Agency on the operations of the Agency; and to which Minister of the Department of Social Security the head of the Contributions Agency reported in 1998. [115914]
Dawn Primarolo: I refer the hon. Member to the written statement I made to the House yesterday.
Euro
Mr. Howard: To ask the Chancellor of the Exchequer (1) whether he will set a limit on the transition costs to Government Departments of joining the euro; [120024]
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- (2) what his expenditure has been on (a) the Business Advisory Group and (b) the City Euro Group in each year since their creation; [120026]
(3) whether the transition costs to Government departments of joining the euro will be met from (a) existing departmental budgets, (b) increased taxation and (c) increased borrowing; [120039]
(4) what estimate he has made of the transition costs to Government departments of joining the euro. [120040]
Mr. Boateng: Details of expenditure on changeover planning were included in the third outline National Changeover Plan, published on 9 June 2003. Copies of the document are in the Library of the House.
The costs of a UK changeover would depend on the approach taken, and the extent to which organisations have already considered the euro as a factor when making investment decisions. By planning ahead, costs to the whole economy can be kept to a minimum. The third outline National Changeover Plan provides all sectors of the economy with a basis for planning.
Financial Advice
Dr. Cable: To ask the Chancellor of the Exchequer if he will develop a system of generic financial advice for those on lower incomes. [119845]
Mr. Boateng: The FSA tells me that it is currently working on its commitment to develop a comprehensive strategy to help consumers, including those on lower incomes, gain a better understanding of the financial services market place.
This involves working with advice agencies, consumer groups, the industry and others, to establish the most effective ways to deliver financial information and generic advice.
The FSA plans to consult widely as this work develops.
Dr. Cable: To ask the Chancellor of the Exchequer what estimate has been made of the number of independent financial advisers whose independent status will be lost as a result of depolarisation. [119843]
Mr. Boateng: How independent financial advisers chose to conduct and organise their business is a matter for them.
The FSA have examined this issue carefully as part of their wider work on polarisation reform. They set out their views on the costs and benefits of reform in Appendix B of their Consultation Paper 166, published in January 2003. The FSA also published the report to them by National Economics Research Associates.
Dr. Cable: To ask the Chancellor of the Exchequer what recent assessment has been made of the number of independent financial advisers who have been refused professional indemnity cover. [119846]
Mr. Boateng: The FSA tell me that they do not collect data in this form. A firm may be denied cover by one insurer and subsequently obtain it from another, but that is a commercial matter between insurers and their clients.
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What is important is that firms who should obtain PI cover do so, or otherwise address the issue, for example by obtaining a waiver.
Dr. Cable: To ask the Chancellor of the Exchequer how many complaints of mis-selling of (a) endowment policies and (b) other financial products by (i) tied agencies and (ii) independent financial advisers were made to the Financial Services Authority in (A) 2001, (B) 2002 and (C) 2003. [119847]
Mr. Boateng: The Financial Services Authority, as regulator, makes rules for IFAs and for tied agents. These include rules designed to prevent mis-selling and rules that require regulated firms to follow specified complaints procedures. Where firms are unable to resolve complaints themselves, FSA rules require them to allow complainants to pursue their complaints with the Financial Ombudsman Service and to comply promptly with an ombudsman's decision.
The Financial Ombudsman Service has provided the following figures for complaints it has handled in the last three financial years:
| IFAs | Percentage of total | Tied agents | Percentage of total | Total | |
|---|---|---|---|---|---|
| 2002–03 | 1,898 | 13.99 | 11,672 | 86.01 | 13,570 |
| 2001–02 | 2,312 | 15.84 | 12,283 | 84,16 | 14,595 |
| 2000–01(22) | — | — | — | — | 9,067 |
(22) Investment complaints prior to April 2001 were dealt with by the Personal Investment Authority (PIA) Ombudsman Bureau, which did not record statistics that can be analysed in this way. However, across the range of investment related complaints in 2000–01, those against IFAs accounted for 13.9 per cent. of the total and tied agents 86.1 per cent.
| IFAs | Percentage of total | Tied agents | Percentage of total | Total | |
|---|---|---|---|---|---|
| 2002–03 | 3,112 | 16.24 | 16,047 | 83.76 | 19,159 |
| 2001–02 | 1,952 | 15.76 | 10,434 | 84.24 | 12,386 |
| 2000–01(23) | — | — | — | — | 8,019 |
(23) Investment complaints prior to April 2001 were dealt with by the Personal Investment Authority (PIA) Ombudsman Bureau, which did not record statistics that can be analysed in this way. However, across the range of investment related complaints in 2000–01, those against IFAs accounted for 13.9 per cent. of the total and tied agents 86.1 per cent.
Inflation Measures
Mr. Howard: To ask the Chancellor of the Exchequer what advice has been received from the RPI Advisory Committee regarding his intention to give the Bank of England an inflation target as measured by the Harmonised Index of Consumer Prices; and what further consultation is planned with this Committee. [120332]
John Healey: None. The RPI Advisory Committee is not a Standing Committee. If it were convened, it would be to make recommendations to the Chancellor on proposed changes to the construction of the RPI, not to give advice on inflation target or monetary policy.
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Iraq
Jonathan Shaw: To ask the Chancellor of the Exchequer how much financial assistance he has set aside for reconstruction work in Iraq; and what areas of reconstruction the Government (a) is financially supporting and (b) plans to support. [119511]
Hilary Benn: I have been asked to reply.
DFID has so far committed £115 million towards humanitarian assistance in Iraq. This finance is channelled though the organisations best placed to deliver assistance on the ground: United Nations agencies, the Red Cross and Red Crescent, and NGOs. We have set aside a further £95 million for additional needs as they emerge.
In addition, HM Treasury has earmarked an extra £60 million from the Central Reserve to meet humanitarian and reconstruction needs in Iraq. £5 million of this has been allocated to the Foreign and Commonwealth Office to fund UK secondees to the Coalition Provisional Authority. The remaining £55 million remains available as required.
The World Bank, International Monetary Fund and United Nations are undertaking social and economic needs assessments for Iraq. Decisions on future DFID assistance for reconstruction will reflect the needs identified in these assessments as well as the inputs proposed by other donors. We expect a donor conference on Iraq to be convened in the autumn.
DFID's interim humanitarian and rehabilitation strategy is available from the DFID website at www.dfid.org.uk
Parliament Buildings (VAT)
Pete Wishart To ask the Chancellor of the Exchequer (1) how much VAT the Treasury has received from the construction of the Scottish Parliament; and how much VAT the Treasury is expected to receive in total based on the latest estimates for the Scottish Parliament building; [119889]
- (2) how much VAT the Treasury received from the construction of Portcullis House. [119891]
John Healey: HM Customs and Excise is debarred by statute from disclosing information about the tax affairs of individual taxpayers, including public and private sector bodies. Exemption 15 (Statutory and other restrictions) of the Code of Practice on Access to Government Information applies. It is for bodies concerned to publish any such information as appropriate to their reporting obligations. However, all construction projects undertaken in the UK are subject to the same set of VAT rules laid out in the VAT Act 1994.
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