House of Commons Hansard Written Answers for 27 Feb 2004 (pt 5)

27 Feb 2004 : Column 591W—continued

Construction Industry

Brian Cotter: To ask the Chancellor of the Exchequer what the evidential basis was for his Department's decision to maintain the £30,000 turnover test for sub-contractors to receive gross payments under the Construction Industry Scheme; and what advice he received from the Inland Revenue on this matter during the recent review of the scheme. [156681]

Dawn Primarolo: There has been a specialised taxation scheme for the construction industry since the 1970s to regulate an industry with a long history of poor compliance on taxation matters. The original scheme required a deduction to be made from payments unless the subcontractor could meet certain standards, which allowed him to be paid gross. However, this system failed to limit the numbers receiving gross payment.

The Construction Industry Scheme (CIS) was introduced in Finance Act 1995 and implemented from August 1999. It tightened up the criteria for gaining a gross payment certificate by requiring all subcontractors applying for gross payment status to demonstrate a minimum level of turnover. This approach proved successful and safeguarded monies that were previously at risk to the Exchequer under its predecessor.

The current review of CIS followed industry complaints about its cumbersome processes. The Chancellor announced, in Budget 2003 that the CIS would be replaced by a new system that will relieve some of the industry's administrative burden.

The Inland Revenue has consulted extensively with industry representatives on the detail of the new scheme, including the criteria for gross payment status. Alternatives to the turnover test were suggested by the

27 Feb 2004 : Column 592W

industry but none was as effective in restricting the number of subcontractors obtaining gross payment required to preserve the effectiveness of the scheme.

Successive Governments have accepted that it is not appropriate to disclose the advice given to Ministers by civil servants.

Earnings Statistics

Annabelle Ewing: To ask the Chancellor of the Exchequer if he will list for (a) male, (b) female and (c) all workers in (i) Scotland and (ii) each of the unitary local authority areas in Scotland the (A) weekly median earnings and (B) distribution of earnings for those earning (1) under the point below which 10 per cent. of earners fall and (2) the above point above which 10 per cent. of earners exceed. [156220]

Ruth Kelly: The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter from Len Cook to Annabelle Ewing, dated 27 February 2004:

As National Statistician, I have been asked to reply to your recent question for a list, for (a) male, (b) female and (c) all workers in (i) Scotland and (ii) each of the unitary local authority areas in Scotland the (A) weekly median earnings and (B) distribution of earnings for those earning (1) under the point below which 10 per cent. of earners fall and (2) the point above which 10 per cent. of earners exceed. (156220)

I attach a table showing the mean and median earnings in 2003 of employees in local authority areas in Scotland.

Estimates of the boundary points for the highest and lowest 10 per cent. of earners in these areas are published on the National Statistics web site at: http://www. statistics. gov.uk/downloads/theme labour/NES2003 Analyses By Region/NES2003 Analyses By Region.pdf

Tables El 5, El6 and El7 give this information for all workers, male workers and female workers respectively, along with other earnings figures for Scottish Local Authorities.

Average earnings are estimated from the 2003 New Earnings Survey (NES) and are provided for full-time employees on adult rates of pay whose pay was unaffected by absence during the pay period. This is the standard definition used for NES tables. The NES does not collect data on the self employed and people who do unpaid work.

The New Earnings Survey publication criteria ensures that all estimates are undisclosive and of reliable quality, and suppresses estimates that do not meet these criteria. A number of estimates have been removed from the table for this reason. The information is based on the 2003 NES, the latest survey for which data are available.

Gross weekly earnings of full-time employees in Scotland in 2003£ per week

	Male		Female		All
Area	Mean	Median	Mean	Median	Mean	Median
Scotland	483.7	409.5	372.4	323.8	436.8	373.1

Local Authorities
Aberdeen City	591.4	507.8	417.7	363.9	524.7	441.1
Aberdeenshire	479.3	418.5	336.9	292.2	422.2	367.4
Angus	⁽⁶⁾—	⁽⁶⁾—	344.1	298.6	398.3	335.9
Argyll & Bute	400.1	375.6	⁽⁶⁾—	⁽⁶⁾—	381.2	358.0
Scottish Borders, The	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	355.6	299.9
Dumfries & Galloway	407.6	358.1	⁽⁶⁾—	⁽⁶⁾—	381.6	322.5
Dundee City	482.4	421.9	376.0	336.0	436.8	392.4
East Ayrshire	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	425.7	380.3
East Lothian	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	394.8	365.2
Edinburgh, City of	509.0	426.8	409.2	352.0	467.0	393.5
Falkirk	⁽⁶⁾—	⁽⁶⁾—	359.6	302.7	412.9	364.7
Fife	455.7	399.5	345.7	304.7	409.7	352.5
Glasgow City	489.1	407.0	374.7	324.0	437.9	364.9
Highland	471.2	377.1	345.7	317.4	419.6	348.4
Inverclyde	⁽⁶⁾—	⁽⁶⁾—	333.6	304.8	379.7	334.1
Midlothian	429.0	413.2	⁽⁶⁾—	⁽⁶⁾—	409.1	398.1
North Ayrshire	⁽⁶⁾—	⁽⁶⁾—	359.8	340.5	409.3	378.4
North Lanarkshire	⁽⁶⁾—	⁽⁶⁾—	376.6	330.6	444.1	378.4
Perth & Kinross	⁽⁶⁾—	⁽⁶⁾—	353.3	303.2	405.5	370.4
Renfrewshire	476.2	418.7	381.6	349.8	439.7	391.2
South Ayrshire	479.3	451.0	⁽⁶⁾—	⁽⁶⁾—	442.5	420.7
South Lanarkshire	479.8	417.8	346.9	309.5	421.8	382.2
Stirling	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	⁽⁶⁾—	429.8	374.4
West Lothian	459.7	387.0	⁽⁶⁾—	⁽⁶⁾—	423.0	363.0

⁽⁶⁾ Estimate removed since it did not meet criteria for publication

27 Feb 2004 : Column 593W

Economic Growth

Mr. Spring: To ask the Chancellor of the Exchequer (1) by what rate real GDP grew in (a) the United Kingdom, (b) the Republic of Ireland, (c) Denmark, (d) Sweden, (e) Finland, (f) Germany, (h) the Netherlands, (i) Belgium, (k) Luxembourg, (l) France, (m) Spain, (n) Portugal, (o) Italy, (p) Austria, (q) Greece, (r) the area now forming the euro-12, (s) the EU 15 and (t) the United States for each year since 1992; [157182]

(a)

(b)

(c)

(d)

(e)

(f)

(h)

(i)

(k)

(l)

(m)

(n)

(o)

(p)

(q)

(r)

(s)

(t)

Ruth Kelly: The statistics requested are available in the OECD Economic Outlook, December 2003.

Electricity Generation (Fuel Taxation)

Mr. Trimble: To ask the Chancellor of the Exchequer if, following the introduction of the European Union's Emissions Trading Scheme, he will take steps to ensure that no fuels used in power stations for the generation of electricity are subject to duties or taxes. [156101]

John Healey: The EU emissions trading scheme is expected to be running from January 2005, and the Government will take account of its impact on the existing tax system.

Decisions on taxation are a matter for the Chancellor as part of the Budget process, taking account of the Government's economic, social and environmental objectives.

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