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2 Jun 2009 : Column 408W—continued
The figures provided above exclude natural causes.
Treasury
Balance of Payments: EU Action
Mr. Hayes: To ask the Chancellor of the Exchequer what assessment he has made of the impact on the UK of changes to the facility to provide medium-term financial assistance for EU member states’ balances of payments. [277181]
Ian Pearson: The increase to €50 billion in May 2009 will further ensure that the EU is able to act to support the needs of all EU member states, and protect the functioning of the EU common market. There are no EC budgetary implications or impact on the UK of this increase to the ceiling of the facility. Other technical changes will have an impact on those countries receiving medium-term financial assistance under this facility; the EC budget and all member states would take on a larger contingent liability as a result of any increased lending.
Bank Notes: Forgery
Mr. Hayes: To ask the Chancellor of the Exchequer on how many occasions his Department has taken action in relation to counterfeit currency resembling the euro under counterfeit regulations. [277183]
Ian Pearson: HM Treasury does not have responsibility for taking action in relation to counterfeit currency resembling the euro. Instances of euro counterfeiting should be reported to the police.
HM Treasury was responsible however, for negotiations on European Council Regulation 45/2009 of 18 December 2008. This extended measures for the protection of the euro currency from counterfeiting to member states who have not adopted the currency.
HM Treasury engaged with the Commission closely to ensure that this regulation would be both proportionate and effective. In particular, while appropriate financial and credit institutions will be required to screen for counterfeit euros, the regulations provide flexibility to them regarding the most efficient methods for doing so.
The Council regulations provide for member states to make appropriate domestic provisions by the end of 2011, and HM Treasury will be taking this forward with relevant stakeholders in due course.
Banks: Iceland
Bill Wiggin: To ask the Chancellor of the Exchequer when he plans to respond to the recommendations of the Treasury Select Committee’s Fifth Report of Session 2008-09, Banking crisis: the impact of the failure of the Icelandic banks. [276930]
Ian Pearson: The Treasury is considering carefully the Treasury Select Committee’s recommendations and expects to respond to them in due course.
Bill Wiggin: To ask the Chancellor of the Exchequer when he expects to lift the freezing order on the Landsbanki assets; on what criteria that steps will be taken; and if he will make a statement. [276931]
Ian Pearson: On 8 October HM Government made the Landsbanki Freezing Order 2008. The order was made because the Icelandic Government, its authorities and Landsbanki appeared to be on the brink of action which would be to the detriment of the UK economy, including detrimental treatment of UK depositors.
It is a measure that could be lifted once the Treasury is satisfied that action to the detriment of the UK economy has been addressed and will not proceed.
Bill Wiggin: To ask the Chancellor of the Exchequer if he will publish the advice he received on use of powers under the Anti-Terrorism, Crime and Security Act 2001 to freeze assets in Icelandic banks; and if he will make a statement. [276932]
Ian Pearson: Treasury Ministers receive advice and input on a wide range of issues, from a variety of individuals and organisations in the public and private sectors, as part of the process of policy development and analysis. As was the case with previous Administrations, it is not the Government’s practice to provide details of advice given to the Treasury.
Bill Wiggin: To ask the Chancellor of the Exchequer what his assessment is of whether the actions of the Government in respect of the crisis in Icelandic banks made the Government an active participant in the financial markets; and if he will make a statement. [276933]
Ian Pearson:
Kaupthing Singer and Friedlander (KSF) the UK subsidiary of the Icelandic bank Kaupthing
was regulated by the FSA, who was also in regular contact with the Icelandic regulator, FME.
As KSF’s position deteriorated the tripartite authorities worked intensively to find solutions to the firm’s problems. On 8 October the FSA decided that KSF no longer met the FSA’s threshold conditions and the firm went into administration.
Upon learning of the FSA’s decision, the UK Government moved swiftly to transfer some of the deposits of KSF to ING to safeguard depositors and financial stability within the UK.
The steps taken by the FSA and the Government had no bearing on the status of the parent company, Kaupthing Bank hf, which is incorporated under Icelandic law and subject to supervision by the FME.
Bill Wiggin: To ask the Chancellor of the Exchequer how many times powers under the Anti-Terrorism, Crime and Security Act 2001 have been used to freeze assets in each year since 2001; and if he will make a statement. [276934]
Ian Pearson: The power under section 4 of the Anti Terrorism Crime and Security Act 2001 has been used on one occasion. This was in 2008 for the Landsbanki Freezing Order.
Bill Wiggin: To ask the Chancellor of the Exchequer when he last discussed the Government's policy on Icelandic banks and the freezing of their assets with his Icelandic counterpart. [276935]
Ian Pearson: Treasury Ministers and officials have meetings and discussions with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. As was the case with previous Administrations, it is not the Government's practice to provide details of all such meetings and discussions.
Capital Gains Tax
Mr. Duncan Smith: To ask the Chancellor of the Exchequer what representations his Department has received on capital gains tax arrangements for spouses who leave the marital home and purchase alternative properties. [277433]
Mr. Timms: Treasury Ministers and officials receive representations from a wide variety of organisations as part of the process of policy development and delivery. As was the case with previous Administrations, it is not the Government's practice to provide details of all such representations.
Debts
Mr. Hague: To ask the Chancellor of the Exchequer pursuant to the answer to Lord Alton of Liverpool of 11 May 2009, Official Report, House of Lords, column WA158, on debt, what sovereign debt is owed to the UK by (a) Sudan, (b) Iraq, (c) Serbia, (d) Zimbabwe, (e) Cuba, (f) Egypt, (g) Republic of Congo, (h) Democratic Republic of Congo and (i) Somalia. [277683]
Ian Pearson: Debts (including accrued interest) of the countries listed to HM Government are given in the following table. Sudan, the Republic of Congo, the Democratic Republic of Congo and Somalia are within the heavily indebted poor countries initiative. The Government will write off their debts as they progress through the initiative and will not seek payment before then.
| Country | Debt to UK (£ million) |
Departmental Marketing
Mr. Hayes: To ask the Chancellor of the Exchequer what activities have been undertaken by his Department’s Euro Minister in that capacity. [277166]
Ian Pearson: Euro Ministers are responsible for euro preparations in their Department and attend Euro Ministers Steering Group meetings.
Economic and Monetary Union
Mr. Hayes: To ask the Chancellor of the Exchequer on how many occasions to date the ERM II provisions have been triggered on the approach of a currency to the limits permitted; and what the cost of this intervention was in each case. [277127]
Ian Pearson: The Government do not hold this information. The relevant data are owned by the national central banks of the EU member states participating in ERM II. The UK does not participate in ERM II.
Mr. Hayes: To ask the Chancellor of the Exchequer what estimate has been made of the cost to the UK of participating in the ERM II mechanism in the latest period for which figures are available; and what the reasons are for UK participation in the mechanism. [277182]
Ian Pearson: The UK does not participate in the ERM II.
EU Budget
Mr. Hayes: To ask the Chancellor of the Exchequer what the size of the UK’s next part-annual sum for payment to the European Union budget is. [277092]
Ian Pearson: The UK makes its contributions to the EC budget twice monthly. The Government’s latest forecast of UK net contributions to the EC budget over the period 2007-08 to 2010-11 were published in table C9 (page 238) of the 2009 Budget (HC 407).
Mr. Hayes: To ask the Chancellor of the Exchequer what estimate he has made of the annual administrative cost to his Department of making the payment of the UK’s gross contribution to the EU budget. [277213]
Ian Pearson: The Treasury does not make estimates of the administration costs involved in making this payment.
Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what his estimate of the UK’s (a) (i) gross and (ii) net EU budget contributions and (b) direct contributions to other EU institutions and funds in 2009-10 (A) was estimated to be in 2007 and (B) is estimated now at the pound’s current exchange rate. [277219]
Ian Pearson: The 2008 European Community Finances White Paper, using estimates from 2007-08, estimated the gross contribution to the EC budget for 2009-10 to be £15.55 billion. A current estimate for gross contribution to the EC budget for 2009-10 will be published in the forthcoming 2009 European Community Finances White Paper. The 2007 pre-Budget report estimated the net contribution to the EC budget for 2009-10 to be £5.7 billion, and net payments to EC institutions to be £4.8 billion. The 2009 Budget estimated the net contribution to the EC budget for 2009-10 to be £4.1 billion, and net payments to EC institutions to be £3.3 billion.
Payments are not made directly to EU funds. These are covered in payments made to the EC budget. It should be noted that the pound’s exchange rate is only one of a range of factors affecting the level of UK contributions to the EC budget.
EU Institutions: Fraud
Mr. Hayes: To ask the Chancellor of the Exchequer what recent discussions he has had with representatives of EU institutions on reduction of levels of fraud in those institutions. [277091]
Ian Pearson: The Government continue to engage with European institutions and other member states with a view to bringing down the level of fraud in the EC Budget. Despite there being no evidence of widespread fraud in EU institutions, the Government believe that no fraud should be tolerated and continue to press for higher standards to combat fraud and improve financial management.
Income Tax
Mr. Gauke: To ask the Chancellor of the Exchequer what estimate he has made of the full-year cost to the Exchequer for (a) 2009-10, (b) 2010-11 and (c) 2011-12 of reducing the (i) starting and (ii) basic rate of tax on savings income to zero. [251189]
Mr. Timms: The full year cost for each of the three years is shown in the table. The estimates are based on the 2006-07 Survey of Personal Incomes projected forward in line with Budget 2009 assumptions. The figures exclude any estimate of behavioural response.
| £ million | |||
| 2009-10 | 2010-11 | 2011-12 | |
| (1) Additional costs assuming the starting rate for savings income is zero. | |||
Income Tax: Tax Rates and Bands
Mr. David Anderson: To ask the Chancellor of the Exchequer (1) what estimate he has made of the number of people who have not been fully compensated for losses they incurred as a result of the abolition of the 10 pence tax rate; [277668]
(2) what plans he has to provide further recompense to people who have not been fully compensated for losses they incurred as a result of the removal of the 10 pence tax rate. [277669]
Mr. Timms: An assessment of the impact of the Budget 2007 personal tax changes, and the subsequent reforms made to income tax, were included in the 2008 pre-Budget report at paragraph 5.10.
The Government have set out, in the 2008 pre-Budget report and Budget 2009, the changes that it will make to the personal tax system through to 2011-12.
Lenders' Panel
Grant Shapps: To ask the Chancellor of the Exchequer (1) what the cost of establishing his Department's Lenders' Panel was; and how much he expects his Department to spend on the Panel in each of the next three years; [264981]
(2) on how many occasions his Department's Lenders' Panel has met; and if he will place in the Library a copy of the minutes of each meeting. [264983]
Ian Pearson: At the 2008 pre-Budget report, the Government announced the creation of a new Lending Panel, which meets regularly to monitor lending to businesses and households. As part of this new monitoring approach, the Bank of England is publishing a monthly report—Trends in Lending—the second of which was published on 21 May 2009. This is available at:
The Lending Panel brings together lenders, trade bodies, consumer groups, and the Government, regulators and the Bank of England.
Members of the Lending Panel attend in a voluntary capacity. There are no specific costs associated with the Lending Panel.
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