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International Economy

Mrs. Lawrence: To ask the Chancellor of the Exchequer if he will make a statement on the international economy. [185981]

John Healey: On 3 June, in recognition of the pressures in the oil market and because of a shortage of oil supply to meet demand, the Chancellor of the Exchequer announced that we would be reviewing progress of the annual fuel duty increase planned for 1 September.

The Government's focus since 3 June has been on OPEC and oil producers and their responsibilities to meet their own targets on sustainable oil prices, and we have sought to await the outcome of this month's OPEC Ministers meeting before making a further statement. I will give further details of discussions and progress to Members of the House when I appear before the Treasury Select Committee tomorrow.
 
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With the next meeting of OPEC Ministers now moved from July to September, and in light of the continuing uncertainty in the oil market, we have decided to keep the planned increase, including for sulphur-free fuel and rebated fuels, under review, and will report back further at the time of the pre-Budget report. Because of its environmental benefits the Government remain committed to the introduction of sulphur free fuel, and will be in discussion with the industry over its availability across the country. The Chancellor of the Exchequer will also report back on this issue at the time of the pre-Budget report.

Network Rail Debts

Mr. Luff: To ask the Chancellor of the Exchequer who will guarantee the debts of Network Rail after the abolition of the Strategic Rail Authority; and whether they will now count as part of the Government's borrowing requirement. [185431]

Mr. Boateng: When it is wound up, the SRA's duties and financial obligations, including those in support of Network Rail's borrowing, will transfer to the Department for Transport. This will not affect the classification of Network Rail or its debt.

Pay Systems

Malcolm Bruce: To ask the Chancellor of the Exchequer if he will place in the Library the most recent review of (a) his Department's pay systems, (b) the pay systems of the non-departmental public bodies for which he is responsible and (c) the departmental equal pay action plan. [181355]

Ruth Kelly: Information on the most recent reviews of pay systems of the Chancellor's Departments and of their equal pay action plans has been deposited in the Library. The Chancellor is not responsible for any non-departmental public bodies.

Special Advisers

Mr. Evans: To ask the Chancellor of the Exchequer how many of the reductions in the numbers of civil servants in his Department announced in the spending review will be of special advisers. [185481]

Mr. Boateng: Special advisers are appointed by Ministers, with the approval of the Prime Minister, in accordance with Article 3(2) of the Civil Service Order in Council 1995 (as amended).

Spending Review 2004 published planned reductions in civil service and public administration posts of 84,150 by 2008, including the redeployment of 13,550 to front line posts/activities. Details of these reductions are a matter for individual Departments. Progress on meeting the efficiency targets will be publicly reported so that the Government are accountable for the results. Departments will report progress through their departmental reports and on their website.

Spending Review

Sir Patrick Cormack: To ask the Chancellor of the Exchequer pursuant to his Statement of 12 July 2004, Official Report, column 1131, on Spending Review, if he
 
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will list the £30 billion worth of asset sales included in the objective; and when he expects the sales to be completed. [184867]

Mr. Boateng: The £30 billion objective for asset sales covers the period to 2010 and relates to the public sector as a whole. While decisions on specific asset disposals are for individual Government Departments and local authorities, these decisions will be informed by the work that Chancellor has commissioned from Sir Michael Lyons.

Mr. Letwin: To ask the Chancellor of the Exchequer if he will make a statement on the differences between planned administration expenditure by department in Table 2.3 of the 2004 Spending Review Report and Table 5.1 of the Public Expenditure Statistical Analyses 2004. [184706]

Mr. Boateng: The administration budgets in table 2.3 of the 2004 Spending Review are net of all income departments generate through their administrative expenditure. The figures in Table 5.1 of the Public Expenditure Statistical Analyses 2004 are only net of the element of this income that forms part of other departments' administration costs.

Figures published in the Spending Review take account of reclassifications implemented in line with the recommendation of made by Sir Peter Gershon.

Tax Credits (Compensatory Payments)

Mr. Webb: To ask the Chancellor of the Exchequer how many tax credit compensation claims have been (a) submitted and (b) upheld since April 2003; and what the (i) average and (ii) total value is of compensation payments made. [185054]

Mr. Tynan: To ask the Chancellor of the Exchequer pursuant to his answer of 23 June 2004, Official Report, column 1411W, what the value of compensatory payments made to those receiving tax credits was in the last financial year. [185675]

Dawn Primarolo: A total of 10,800 compensation payments for tax credits were authorised in 2003–04. This represents about one eighth of one per cent of all claims received for tax credit awards. The total value of these payments was £370,000, and the average payment was £34. 255 claims were refused.

Tobacco Smuggling

David Taylor: To ask the Chancellor of the Exchequer (1) what discussions he has had on making the UK a co-signatory to the Anti-Contraband and Anti-Counterfeit Agreement and General Release reached on 19 July between the European Community, Philip Morris International and subsidiary companies; [185503]

(2) what recent discussions Her Majesty's Customs and Excise have had with (a) Philip Morris International, (b) British American Tobacco, (c) Imperial Tobacco and (d) Gallaher Group plc on the status of the Memorandum
 
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of Understanding on the smuggling of tobacco products which these companies have with the Government; [185483]

(3) what discussions he has had with OLAF, the European Anti-fraud Office, concerning the agreement on tobacco smuggling recently reached between the European Council and Philip Morris International. [185486]

John Healey: HM Customs and Excise have Memoranda of Understanding (MOUs) with British American Tobacco, Imperial Tobacco and Gallaher. As part of these, Customs meet regularly to discuss developments in the illicit market including the status of the MOUs.

Although Customs do not currently have an MOU with Philip Morris International (PMI), as their products have much less significance in either the licit or illicit UK tobacco market, they meet regularly to discuss developments in the illicit market.

The UK was not part of the European action taken against PMI in August 2001.

There have been no discussions on making the UK a co-signatory to the Anti-Contraband and Anti-Counterfeit Agreement.

David Taylor: To ask the Chancellor of the Exchequer what plans there are to bring the Memorandum of Understanding on tobacco smuggling in line with the terms of the Anti-Contraband and Anti-Counterfeit Agreement and General Release reached on 9 July between the European Council and Philip Morris International. [185485]

John Healey: HM Customs and Excise have Memoranda of Understanding (MOUs) in place with the main UK tobacco manufacturers, the first of which was agreed in July 2002. Since its peak in 2000–01, the illicit cigarette market has been successfully reduced by more than 2.5 billion sticks per annum and the incidence of UK manufactured cigarettes being smuggled into the UK has fallen markedly from about 75 per cent. of large seizures to 31 per cent. in 2002–03.

Customs regularly assess the size and composition of the illicit cigarette market in the UK and take the measures they consider will continue their successful strategy of reducing smuggling. We will assess the detail of the Anti-Contraband and Anti-Counterfeit Agreement and consider whether we would wish to become a co-signatory to the Agreement.

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