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29 Oct 2003 : Column 249W—continued

Kirby Report

Mr. Lidington: To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the Government's response to the Kirby Report on remediation permits. [132664]

Margaret Beckett: The recommendations of the report "Remediation Permit—Towards a single regeneration licence" are being considered, and where appropriate, being taken forward in my Department's review of Waste Permitting. Informal consultation is currently taking place. A formal consultation on draft regulations is expected early next year. A formal response to the report will be prepared following that consultation exercise.

Livestock Support Payments

Mr. Lidington: To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the impact on British agriculture of decoupling carried out (a) on an historic basis and (b) on the basis of regional averages. [132661]

Margaret Beckett: We are currently consulting stakeholders on whether the historic or area model of the new Single Payments Scheme should be operated in England. Responses to that exercise will help develop our understanding of the range of environmental, social and economic impacts of each of the models including the impact on the agriculture industry and its constituent parts. An assessment has been made of the impact of each model on the distribution of CAP direct aid payments. A copy has been placed in the Library of the House.

TREASURY

Company Finance Market

Mr. Prisk: To ask the Chancellor of the Exchequer what recent discussions he has had with representatives of the Institute of Chartered Accountants of England and Wales regarding the effectiveness of the company finance market. [135071]

29 Oct 2003 : Column 250W

John Healey: The Government issued a consultation document alongside Budget 2003 called "Bridging the Finance Gap: a Consultation on Improving Access to Growth Capital for Small Businesses". The consultation explored a wide range of issues concerning the ability of firms, and in particular, small and high-growth firms, to raise the finance that they need in the market. The Institute of Chartered Accountants in England and Wales (ICAEW) were one of many interested parties who responded to the consultation. The Government are currently considering the responses that it has received from the consultation and will respond in due course.

Additionally, ICAEW is represented on an advisory group, established in Budget 2003, which is examining the role of accountants and other financial intermediaries in providing advice to firms about the financing options available to them. The group is expected to report to the Government next month.

Company Tax (EU Harmonisation)

Mr. Redwood: To ask the Chancellor of the Exchequer what plans the EU has for the harmonisation of company tax within the EU. [134319]

Dawn Primarolo: The Government's view is that fair tax competition is the way forward for Europe, not proposals for tax harmonisation. The Government will not support any action at European level that will threaten jobs or the competitive position of British business.

Mr. Redwood: To ask the Chancellor of the Exchequer what plans the EU has to combat (a) fraud and (b) evasion in company taxes. [134318]

Dawn Primarolo: The ED is considering a draft proposal to amend and update the Directive on Mutual Assistance (77/799/EEC), the objective of which is to improve the functioning of procedures so as to enable Member States to deal more effectively with cross-border tax evasion and avoidance. I submitted an Explanatory Memorandum to the European Scrutiny Committee on 10 September 2003.

Mr. Redwood: To ask the Chancellor of the Exchequer, (1) how he defines administrative co-operation in the draft EU constitution Article III-63 on company taxation; [134308]

(2) how he defines combating tax fraud and tax evasion in Article III—63 of the draft EU Constitution. [134320]

Dawn Primarolo: The draft EU Constitutional Treaty proposed by the Convention on the Future of Europe does not contain definitions of these terms. Any changes to the provisions of the existing EU Treaties, including those in Article HI-63 of the draft Treaty, require the unanimous agreement of all Member States. The Government has made it clear in its White Paper "The British Approach to the European Union Intergovernmental Conference 2003" that it will insist that tax matters continue to be decided by unanimity.

29 Oct 2003 : Column 251W

Departmental Employees

Dr. Cable: To ask the Chancellor of the Exchequer how many employees of the Treasury there were in each year since 1997; and if he will make a statement. [135303]

Ruth Kelly: I refer the hon. Member to the staffing figures published in the annual publication 'Civil Service Statistics' which covers permanent staff numbers (FTE basis). Copies of the publication are laid in the Libraries of both Houses. The last edition, with updates based on April 2001 data was published in June 2002.

Alternatively, this information is available at the following address on the Cabinet Office website: http://www.civil-service.gov.uk/statistics/css.htm.

EDS

Dr. Cable: To ask the Chancellor of the Exchequer if he will list payments made by (a) HM Treasury, (b) Customs and Excise and (c) the Inland Revenue to EDS in each of the last five financial years; and if he will make a statement. [134225]

Dawn Primarolo: The payments made to EDS in each of the last five financial years were as follows:

(a) HM Treasury

No payments made because HM Treasury has no commercial relationship with EDS.

(b) Customs and Excise

Customs and Excise Customs and Excise only have one contract with EDS through a framework contract signed on 5 July 2002.

The payments made to EDS were:

	£ million
2002–2003	1.00
2003(5)	1.21

⁽⁵⁾ To date

Both figures were exclusive of VAT.

(c) Inland Revenue

The Inland Revenue has a contract with EDS to supply IT services to the Department. The payments made during the last five financial years were:

	£ million
1998–1999	208.4
1999–2000	252.3
2000–2001	247.0
2001–2002	299.1
2002–2003	331.9

These figures exclude VAT and payments in respect of capital purchases.

Eileen Tully Ruling

Mr. Stephen O'Brien: To ask the Chancellor of the Exchequer what discussions he has had with representatives of the Valuation Office Agency regarding the implications of the ruling in favour of Mrs. Eileen Tully against the Inland Revenue. [134501]

29 Oct 2003 : Column 252W

Dawn Primarolo: No discussions have taken place because of the very limited circumstances in which the Tully decision will have an effect elsewhere. The case was determined on the specific facts of the particular case.

Mr. Stephen O'Brien: To ask the Chancellor of the Exchequer what estimate he has made of the loss in potential revenue resulting from the ruling in favour of Mrs.Eileen Tully against the Inland Revenue. [134502]

Dawn Primarolo: No estimate of any potential loss of revenue has been made as a result of Mrs Tully's Lands Tribunal decision.

Energy Useage

Mr. Robertson: To ask the Chancellor of the Exchequer how much (a) electricity and (b) other energy his Department has used in each year since 1997 (i) in total and (ii) per square metre; what the projected use is for each of the following years for which forecasts are made; what plans he has to reduce usage; and if he will make a statement. [135061]

Ruth Kelly: I refer the hon. Member to the reply I gave to the right hon. Member for Suffolk, South (Mr. Yeo) on 30 April 2003, Official Report, column 373W. The Chancellor's Departments will continue to ensure that they minimise energy spend/consumption while still meeting business needs. The Departments remain fully committed to meeting the challenging demands of the Government's Framework Targets.

Income Tax

Mr. Milburn: To ask the Chancellor of the Exchequer what the cost would be of reducing the starting rate of tax to (a) five per cent.and (b) nought per cent.for those earning less per annum that (i) £5,000, (ii) £10,000, (iii) £15,000, (iv) £20,000, (v) £25,000 and (vi) £30,500 assuming that the starting rate continues to apply to the first £1,960 of taxable income. [133177]

Dawn Primarolo [holding answer 29 November 2003]: Estimates are given in the table.

Cost of reducing the starting rate of tax(6)	Starting rate in 2003–04
(in £ billion)	(a) Five per cent.	(b) nought per cent.
Total income per annum less than:
(i) £5,000	Negligible	Negligible
(ii) £10,000	0.6	1.1
(iii) £15,000	1.2	2.4
(iv) £20,000	1.7	3.3
(v) £23,000	2.0	4.1
(vi) £30,500	2.3	4.6

⁽⁶⁾ Excludes dividends income at the starting rate

The estimates are based on the Survey of Personal Incomes 2000–01 and are consistent with the April 2003 Budget.

The figures exclude any estimates of behavioural response to the change.

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