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7 Nov 2005 : Column 145W—continued
Pensions
Gregory Barker: To ask the Secretary of State for Work and Pensions what the average monthly contribution to stakeholder pensions is. [25684]
Mr. Timms: The average individual monthly contribution to stakeholder pensions was £119 for the year ending 5 April 2004—the latest year for which data are available.
Private Finance Projects
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions pursuant to the answer of 22 June 2005, Official Report, column 1076W, on private finance projects, what proportion of assets and liabilities for each of the listed private finance initiatives and public private partnerships is recorded on the Government balance sheet. [16132]
Margaret Hodge: The Department has one on-balance sheet contract which is held with ICB Ltd for serviced accommodation and support functions in respect of Health and Safety Laboratories at Buxton. This private finance initiative contract is accounted for as a finance lease, with 100 per cent. of the contract value disclosed as a liability on the balance sheet. On completion of the transfer of the risks and rewards of this asset to ICB Ltd, the Department received an element of the payment in cash terms (40 per cent.) and a proportion in reduced future accommodation payments (60 per cent.). The reduction to future accommodation charges is accounted for as a prepayment, and therefore an asset, on the balance sheet.
The majority of private finance initiative contracts held by the Department for Work and Pensions are recorded as off-balance sheet. These are accounted for as operating leases and expenditure is put straight to the
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operating cost statement as it is incurred. Where a reduced cash value is received from the contractor, the remaining value of the asset will be disclosed as a prepayment on the balance sheet. The prepayment is then amortised to the operating cost statement over the life of the contract.
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions pursuant to the answer of 22 June 2005, Official Report, column 1076W, on private finance projects, what the accounting treatment of assets and liabilities for each of the listed private finance initiatives and public private partnerships is; and whether this treatment is compliant with (a) UK generally accepted accounting practices and (b) international financial reporting standards. [16134]
Margaret Hodge: The Department has one on-balance sheet contract which is held with ICB Ltd for serviced accommodation and support functions in respect of Health and Safety Laboratories at Buxton. This private finance initiative contract is accounted for as a finance lease and is disclosed as a liability on the balance sheet. The reduction to future accommodation charges is accounted for as a prepayment, and therefore disclosed as an asset, on the balance sheet.
The majority of private finance initiative contracts held by the Department for Work and Pensions are recorded as off-balance sheet. These are accounted for as operating leases and expenditure is put straight to the operating cost statement as it is incurred. Where we have consideration for assets transferred to the contractor, this may be received in the form of cash or reduced future rentals. Any of the latter element will be disclosed as a prepayment on the balance sheet. The prepayment is then amortised to the operating cost statement over the life of the contract. This treatment is compliant with HM Treasury guidance detailed in their Resource Accounting Manual, which is based on UK generally accepted accounting practices.
Sure Start
Danny Alexander: To ask the Secretary of State for Work and Pensions if he will estimate the cost of extending Sure Start Maternity Grant eligibility to recipients of (a) long-term incapacity benefit, (b) short-term higher rate incapacity benefit and (c) short-term lower rate incapacity benefit. [14479]
Margaret Hodge: The information is not available and could be provided only at disproportionate cost.
In order to qualify for a Sure Start Maternity Grant (SSMG), claimants must have an award of one of the income related qualifying benefits or tax credits in respect of the date of claim. The qualifying benefits or tax credits are income support, income based jobseeker's allowance, pension credit, child tax credit at a rate higher than the family element and working tax credit that includes a disability or severe disability element. People who receive incapacity benefit qualify for an SSMG if they receive a qualifying benefit or tax credit.
An SSMG can be claimed at any time from the 29th week of pregnancy until three months after the birth. There will be claimants who, although they do not
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qualify before the baby is born, will be entitled to a qualifying benefit or tax credit following the birth and as a consequence may be entitled to receive an SSMG.
TRANSPORT
Air Carrier Insolvencies
Mrs. Dunwoody: To ask the Secretary of State for Transport what estimate he has made of the proportion of leisure air passengers who were protected by the Air Traffic Organisers Licence in each year since 1995. [25142]
Ms Buck: Statistics compiled by the Civil Aviation Authority indicate the percentage of UK international leisure air travellers covered by ATOL over the last 10 years (year ending December) were as follows:
Mrs. Dunwoody: To ask the Secretary of State for Transport if he will estimate the proportion of leisure air passengers who will be protected by the Air Traffic Organisers Licence in each year to 2010. [25143]
Ms Buck: The percentage of UK international leisure air travellers who will be covered by ATOL over the next five years is estimated as follows:
| Percentage | |
|---|---|
| 2004 | 66 |
| 2005 | 54–61 |
| 2006 | 42–57 |
| 2007 | 32–53 |
| 2008 | 22–50 |
| 2009 | 22–48 |
| 2010 | 22–46 |
From 2005 the percentage is expressed in terms of a range, which reflects high and low estimates for the decline in ATOL protection.
Mrs. Dunwoody: To ask the Secretary of State for Transport what estimate he has made of the number of leisure air passengers who flew without Air Traffic Organisers Licence protection in each year since 2000. [25144]
Ms Buck:
Statistics compiled by the Civil Aviation Authority indicate the number of UK international leisure air travellers not covered by ATOL over the last five years was as follows.
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| Leisure passengers not ATOL protected (million) | |
|---|---|
| 2000 | 5.5 |
| 2001 | 6.8 |
| 2002 | 8.9 |
| 2003 | 12.0 |
| 2004 | 14.4 |
Mrs. Dunwoody: To ask the Secretary of State for Transport if he will estimate the total regulatory compliance cost of the Air Traffic Organisers Licence bonding requirements for tour operators. [25145]
Ms Buck: The tour operator industry has estimated that it incurs direct bonding costs of £50-£60 million per annum (i.e. the aggregate amount charged by bond obligors to tour operators).
In addition to this there are costs associated with staff time spent on organising bonding and compliance. The industry estimated these costs at £22 million.
In addition tour operators pay ATOL fees to the Civil Aviation Authority of approximately £5.5 million per annum.
Mrs. Dunwoody: To ask the Secretary of State for Transport how many UK airlines have become insolvent since 2000. [25146]
Ms Buck: There have been five airline insolvencies since 2000. They were Gill Aviation in 2001, British World Airlines and HC Airlines in 2002, Euroceltic in 2003 and Duo in 2004. AB Airlines and Debonair became insolvent in 1999 but their operating licences were revoked by the CAA in 2000.
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