Deputy Prime Minister
Social Mobility
Chris Ruane: To ask the Deputy Prime Minister what assessment his Department has made of the effects of income inequality on social mobility. [44524]
The Deputy Prime Minister: This Government are committed to a Britain where social mobility is unlocked; where everyone, regardless of background, has the chance to rise as high as their talents and ambition allow them.
The Government's views on the relationship between inequality and social mobility will be set out in the social mobility strategy due to be published later this month.
Chris Ruane: To ask the Deputy Prime Minister what steps his Department takes to measure social mobility. [44602]
The Deputy Prime Minister: This Government are committed to a Britain where social mobility is unlocked; where everyone, regardless of background, has the chance to rise as high as their talents and ambition allow them.
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The Government are currently developing ‘leading indicators’ to improve our understanding of progress in improving social mobility. More detail will be announced in the Government's social mobility strategy due to be published later this month.
Treasury
Corporation Tax: Reforms
Mr Ward: To ask the Chancellor of the Exchequer what estimate his Department has made of the net effect on the public purse of changes to corporate branch taxation proposed in the HM Revenue and Customs paper on corporation tax reform of 29 November 2010; and what assessment he has made of the likely effect on levels of corporation tax avoidance of implementation of such reforms. [43256]
Mr Gauke: The Taxation of Foreign Branches measure, as set out in draft legislation in December, was estimated to have a steady state cost of £100 million a year by the end of the scorecard period, 2015-16.
More detailed figures will be made available at Budget 2011 when the policy is finalised.
This change will contribute to the Government’s aim to have the most competitive corporate tax system in the G20 by helping to attract and retain businesses.
The Government will ensure there are anti-avoidance provisions to protect the UK against abuse of these rules, equivalent to those that apply to foreign subsidiaries. The change is intended to remove taxation on genuine economic activity abroad and will not be available for those artificially diverting their UK profits through branch structures.
Arts: Economic Situation
Caroline Lucas: To ask the Chancellor of the Exchequer what assessment he has made of the potential role of the arts and creative industries in the Government’s strategy for economic recovery (a) nationally and (b) in the Brighton and Hove area; and if he will make a statement. [44641]
Danny Alexander: The Government’s economic policy objective is to achieve strong, sustainable and balanced growth that is more evenly shared across the country and between industries.
The Government have launched the growth review, a rolling programme to last the whole Parliament, with a first report by Budget 2011. This will be a fundamental assessment of what each part of Government are doing to provide the conditions for private sector success and address the barriers faced by industry.
It will initially focus on two elements: (i) structural reform priorities that can benefit the whole economy and (ii) removing barriers in sectors where there are clear opportunities for growth and where Government can make a difference. This includes an examination of the digital and creative industries, among others.
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Capital Gains Tax: Second Homes
Stephen Gilbert: To ask the Chancellor of the Exchequer what estimate he has made of the revenue foregone as a result of the avoidance of capital gains tax on second homes in the latest period for which figures are available. [43466]
Mr Gauke: No such estimate has been made.
Corporation Tax
Matthew Hancock: To ask the Chancellor of the Exchequer how many businesses in each (a) local authority, (b) parliamentary constituency and (c) region will be affected by the reduction in the main rate of corporation tax in 2011-12. [39184]
Mr Gauke: The information is not available. In total approximately 920,000 companies will benefit from the reductions in the main and small profits rate of corporation tax announced at the Budget. By 2014-15 the net impact of the CT measures announced in the Budget will be a cost to the Exchequer of £1,300 million.
Matthew Hancock: To ask the Chancellor of the Exchequer what assessment he has made of the effect on an average business in each (a) local authority, (b) parliamentary constituency and (c) region of reducing the main rate of corporation tax by one per cent. in 2011-12. [39185]
Mr Gauke: The information is not available. In total approximately 920,000 companies will benefit from the reductions in the main and small profits rate of corporation tax (CT) announced at the Budget. By 2014-15 the net impact of the CT measures announced in the Budget will be a cost to the Exchequer of £1,300 million.
Matthew Hancock: To ask the Chancellor of the Exchequer (1) how many businesses in each (a) local authority, (b) parliamentary constituency and (c) region will be affected by the change in the small profits rate of corporation tax in 2011-12; [39186]
(2) if he will estimate the effect on an average business in each (a) local authority, (b) parliamentary constituency and (c) region of the change in the small profits rate of corporation tax in 2011-12. [39188]
Mr Gauke: Around 850,000 companies in the UK pay the small profits rate of corporation tax. In total, approximately 920,000 companies will benefit from the reductions in the main and small profits rate of corporation tax (CT) announced at the Budget. By 2014-15 the net impact of the CT measures announced in the Budget will be a cost to the Exchequer of £1,300 million.
Mr Bain: To ask the Chancellor of the Exchequer whether he has made an estimate of the degree of losses (a) offset and (b) not offset by businesses trading in the UK in reducing their liabilities to corporation tax in each of the last four financial years. [44808]
Mr Gauke:
HMRC publish statistics on trading losses from previous years offset against the current year's trading profits, and trading losses offset against other
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income for industrial and commercial and financial sector companies. This information is regularly updated and published in Table 11.2, on the HMRC National Statistics website. The latest update is available at:
http://www.hmrc.gov.uk/stats/corporate_tax/table11_2.pdf
Mr Bain: To ask the Chancellor of the Exchequer if he will estimate the proportion of profits paid in corporation tax after losses offset have been taken into account by (a) large companies and (b) small and medium-sized enterprises trading in the UK in the last three financial years. [44847]
Mr Gauke: HMRC publish statistics on gross taxable profits, trading losses from previous years offset against the current year's trading profits, and trading losses offset against other income for industrial and commercial, and financial sector companies. This information is regularly updated and published in Table 11.2, on the HMRC National Statistics website. The latest update is available at:
http://www.hmrc.gov.uk/stats/corporate_tax/table11_2.pdf
Mr Bain: To ask the Chancellor of the Exchequer if he will estimate the effect of the projected revenue accruing from corporation tax in the next financial year of losses not yet offset by businesses trading in the UK. [44848]
Mr Gauke: The information requested falls within the responsibility of the Office for Budget Responsibility (OBR), and I have asked the OBR to reply.
Letter from Robert Chote, dated March 2011:
As Chair of the Budget Responsibility Committee of the Office for Budget Responsibility I have been asked to reply to your recent question.
The information that you have requested has not previously been published by the OBR. In line with our release policy, the OBR aims to meet ongoing requests for supplementary forecast information where this will improve the quality of public debate on the public finances. Our release policy is available on our website at:
http://budgetresponsibility.independent.gov.uk/d/release_policy.pdf
Where the OBR publishes supplementary material, releases will be made in an orderly manner that promotes public confidence and gives equal access to information. The next scheduled release date for the publication of supplementary forecast information is 22 March 2011. Given that this is a day before the Budget, our intention is to include this information in the supplementary data published with the “Economic and fiscal outlook” on 23 March.
Debts: Developing Countries
Sarah Newton: To ask the Chancellor of the Exchequer what recent consideration he has given to extending the provisions of the Developing Countries (Debt Relief) Act 2010. [44918]
Justine Greening:
The Debt Relief (Developing Countries) Bill received Royal Assent on 8 April 2010 and the Act came into force on 8 June 2010. The legislation means that UK courts of law can no longer be used to pursue excessive claims against some of the poorest countries
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on their historic debts, ensuring that resources are available to tackle poverty. The sunset clause attached to this legislation means that the law will expire on 7 June 2011. The Government are reviewing whether or not to extend the Act.
Departmental Food
Mr Bain: To ask the Chancellor of the Exchequer if he will estimate the proportion of the seafood procured for (a) his Department, (b) its agencies and (c) the non-departmental public bodies for which he is responsible that (i) was on the Marine Conservation Society’s list of fish to avoid and (ii) complied with sustainability standards indicated by inclusion in either the Marine Conservation Society’s list of fish to eat or by the list of fish species certified by the Marine Stewardship Council in (A) 2010 and (B) 2011 to date. [45029]
Justine Greening: Catering facilities are supplied in the Chancellor’s building through a sub contractor to Treasury’s PFI provider. The caterer has a policy in place not to purchase species on the current Marine Conservation Society’s list and works closely with its own suppliers to achieve this.
In addition, they adhere to the guidance from both the Marine Conservation Society and the Marine Stewardship Council in relation to ‘fish to eat’ and ‘fish to avoid’.
In both 2010 and 2011 to date the catering provider has been 100% compliant with these standards.
Equitable Life Assurance Society: Compensation
Sammy Wilson: To ask the Chancellor of the Exchequer for what reasons he has not implemented the recommendations of the Parliamentary Ombudsman on compensation levels for Equitable Life policyholders. [44761]
Mr Hoban: The Government have announced that they accept all the Parliamentary Ombudsman's findings of maladministration in their entirety; they are now in the process of establishing a payment scheme that is swift, transparent and fair, in line with the Ombudsman's recommendations.
In her report, the Parliamentary Ombudsman recommended that the aim of the scheme should be
“to put those people who suffered a relative loss back into the position that they would have been in had maladministration not occurred”.
She also recognised that the public interest is a relevant consideration and that it is appropriate to
“consider the potential impact on the public purse”
The Parliamentary Ombudsman wrote to the co-chairs and secretary of the All Party Parliamentary Group on Justice for Equitable Life Policyholders in December last year stating, in reference to the Government's decisions on this payments scheme, that
“I cannot say that those decisions are incompatible with the recommendations in my report”.
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Sammy Wilson: To ask the Chancellor of the Exchequer what the evidential basis was for his calculation of the funding to be made available to Equitable Life policyholders. [44762]
Mr Hoban: Sir John Chadwick and his actuarial advisers spent over a year carrying out detailed analysis and gathering information in order to be able to provide the first bottom up estimates of relative losses suffered by policyholders.
As a result of detailed actuarial analysis, the Government announced that the relative losses suffered by policyholders amount to £4.1 billion. As part of the spending review, the Government also announced that, after considering the Government's spending priorities and the potential impact on the public purse, they would make in the region of £1.5 billion available for the payment scheme.
Excise Duties: Fuels
Miss McIntosh: To ask the Chancellor of the Exchequer (1) what steps he plans to take to introduce (a) a fuel duty stabiliser and (b) a rebate for remote rural areas in (i) North Yorkshire and (ii) other parts of the UK; and if he will make a statement; [44591]
(2) whether he has made an assessment of the economic effects of differences in levels of fuel duty between the UK and other EU states; and if he will make a statement; [44592]
(3) if he will reverse his decision to increase the rate of fuel duty on 1 April 2011. [44593]
Justine Greening: I refer the hon. Member to the answer given on 18 January 2011, Official Report, column 753W, to the hon. Member for South Down (Ms Ritchie), the answer given on 2 February 2011, Official Report, column 837W, to the hon. Member for Hartlepool (Mr Wright), and the answer given on 1 November 2010, Official Report, column 665W, to the hon. Member for Richmond Park (Zac Goldsmith).
The Government are planning to formally apply to the European Commission to implement a 5p per litre rural fuel duty rebate pilot scheme covering all islands in the Inner and Outer Hebrides, Northern Isles, the islands in the Clyde and the Isles of Scilly.
Financial Services: Foreign Companies
Barry Gardiner: To ask the Chancellor of the Exchequer (1) whether he proposes to apply restrictions to European-based independent financial advisors operating in the UK following implementation of the outcomes of the retail distribution review; [45225]
(2) what estimate he has made of the financial effects on UK-based financial product providers of business conducted by commission-based European independent financial adviser services operating in the UK after 1 January 2013. [45250]
Mr Hoban: The retail distribution review (RDR) is the responsibility of the Financial Services Authority, an independent body.
As is the case now, EU based financial advisory firms will be able to passport into the UK after the RDR has come into force, through either setting up a branch here
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or by providing remote cross-border services. If a financial adviser from another member state sets up a branch in the UK, the RDR conduct of business rules will apply to it, including the disclosure and adviser charging rules. If it passports without setting up a branch, then its home member state conduct of business rules will apply instead—but a firm will not be permitted to operate on a cross-border services basis in the UK if it is doing so for the express purpose of evading RDR standards.
Government: Assets
Mr Nicholas Brown: To ask the Chancellor of the Exchequer what estimate he has made of the rate of return on the Government’s asset holdings in (a) British Waterways, (b) the Dartford Crossing, (c) the Defence Storage and Distribution Agency, (d) High Speed 1, (e) the Land Registry, (f) the Met Office, (g) NATS, (h) NHS Professionals, (i) the Oil and Pipelines Agency Government Pipeline and Storage System, (j) Ordnance Survey, (k) Public Forest Estate England, (l) Public Sector Spectrum Holdings, (m) the Queen Elizabeth II Conference Centre, (n) the Royal Mint, (o) the Student Loans Portfolio, (p) the Tote, (q) trust ports, (r) Urenco, (s) the Royal Mail, (t) the 800MHz and 2.6GHz spectra and (u) other public sector parts of the spectrum suitable for mobile communication purposes in the latest period for which figures are available; and what estimate he has made of the revenue that would be raised from the sale of each such asset. [37347]
Danny Alexander: The following table sets out Return on Net Assets (RONA) where known or appropriate. RONA has been calculated as operating profit over net operating assets at the end of the year in question.
In November 2010 Government announced they were selling the right to operate its first High Speed Railway (High Speed 1) for £2.1 billion. We are unable to state the revenue that would be raised from any sale of other assets listed as this information is commercially confidential.
| Asset | RONA (percentage) |
|
Oil and Pipelines Agency Government Pipeline and Storage System(3) |
|
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| (1) The net asset value includes the crossings themselves (bridge and tunnels), land, approach roads, toll booths and related buildings. (2 )Defence Storage and Distribution Agency, now brought back within the Ministry of Defence Joint Supply Chain, does not have a separate balance sheet or trading accounts therefore it is not possible to calculate a return on net assets. (3) The Oil and Pipelines Agency is a management company. The Government Pipeline Supply Service sits within the Ministry of Defence within Defence Equipment and Supply and does not prepare separate accounts. (4) It is not possible to calculate a rate of return for Public Sector Spectrum Holdings as there is no income currently associated with these. (5 )We do not calculate a Return on Net Assets on the student loan portfolio. (6) The current rate of return for 800MHz and 2.6GHz spectra is close to zero. Note: Figures for FY 2009 unless stated. |
Income Tax
Mr Jim Cunningham: To ask the Chancellor of the Exchequer if he will estimate the effect of lowering the threshold at which the higher rate of income tax becomes payable on the weekly income of a person earning (a) £42,5000, (b) £43,000 and (c) £43,500 in 2011-12. [41686]
Mr Gauke: The June 2010 Budget announced a £1,000 increase in the income tax personal allowance for those aged under 65 to £7,475, with real terms gains focused on basic rate taxpayers through a reduction in the basic rate limit. This affects the higher rate threshold, which is the sum of the personal allowance and basic rate limit.
The resulting personal allowance, basic rate limit and higher rate thresholds for 2011-12 are £820 above, £2,400 below and £1,580 below the planned levels the Government inherited. The national insurance upper earnings and profits limits, which are aligned with the higher rate threshold, were also reduced by £30 per week.
The following table compares weekly income tax and national insurance contributions due in 2011-12 with and without these June 2010 Budget changes to the personal allowance and higher rate threshold for individuals with earnings of (a) £42,500, (b) £43,000 and (c) £43,500.
| £ | ||||
| Weekly | ||||
| Earnings (annual) | Earnings | Change in income t ax | Change in NIC | Change in i ncome t ax and NIC |
The table is based on an individual aged under 65 with employment income only and paying employee national insurance contributions (not contracted out).
Members: Correspondence
Tom Greatrex: To ask the Chancellor of the Exchequer when he plans to respond to the letter from the hon. Member for Rutherglen and Hamilton West of 8 November 2010 concerning Blantyre and South Lanarkshire Credit Union. [43560]
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Mr Hoban: My officials have asked the hon. Member’s office for copy as the Treasury has no record of having received the correspondence referred to.
Catherine McKinnell: To ask the Chancellor of the Exchequer when he plans to reply to the letter from the hon. Member for Newcastle upon Tyne North of 21 January 2010 on fuel prices. [44242]
Justine Greening: I wrote to all hon. Members on 10 February to set out the Government’s overall position on fuel duty. This letter was in response to any outstanding correspondence that hon. Members may have raised.
Public Expenditure
Mr Bain: To ask the Chancellor of the Exchequer what fiscal measures he plans to introduce to reduce levels of waste to landfill over the comprehensive spending review period. [44004]
Justine Greening: In the June 2010 Budget, the Government announced that the standard rate of landfill tax would increase by £8 per tonne each year up to and including 2014, and that the rate would not fall below £80 per tonne from 2014 to 2020. All new fiscal measures are announced at Budget.
Public Sector: Redundancy
Nic Dakin:
To ask the Chancellor of the Exchequer what estimate he has made of the (a) number and (b)
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proportion of public sector employees who are women who will be made redundant from public services in 2011-12. [44915]
Danny Alexander: The Office for Budget Responsibility (OBR) published, as part of the ‘Economic and Fiscal Outlook’ on 29 November 2010, projections for general Government employment to 2015-16, which can be found at:
http://budgetresponsibility.independent.gov.uk/d/econ_fiscal_outlook_291110.pdf
The OBR has not produced a breakdown by gender, or an estimate of redundancies as part of its forecast.
On 20 October 2010 the Treasury published an overview of the impact of the spending review on men and women, people from ethnic minorities and people with disabilities. However it will be for individual employers to determine the exact workforce implications of their settlements.
Revenue and Customs: Leave
John McDonnell: To ask the Chancellor of the Exchequer what the three most common reasons were for staff absence in each HM Revenue and Customs business stream in each of the last five years. [43744]
Mr Gauke: The following tables provides the three most common reasons for staff absence in each HM Revenue and Customs business stream in each of the last five years.
| Year ended 31 December 2010 | |||
|
|
Reason 1 | Reason 2 | Reason 3 |
| Year ended 31 December 2009 | |||
|
|
Reason 1 | Reason 2 | Reason 3 |
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| Year ended 31 December 2008 | |||
|
|
Reason 1 | Reason 2 | Reason 3 |
| Year ended 31 December 2007 | |||
|
|
Reason 1 | Reason 2 | Reason 3 |
| Year ended 31 December 2006 | |||
|
|
Reason 1 | Reason 2 | Reason 3 |
| Notes: 1. Staff absence is given as sickness absence (paid time off for holidays and public duties etc. are referred to as annual and special leave respectively). 2. There have been structural changes within HMRC over the period covered by the table. Data which could not be attributed to a particular business stream have been recorded as ‘unknown’. The two former Departments did not move to a single IT system until November 2006 and that accounts for the relatively high number of unknowns in that year. 3. The numbers are actual days taken and not the full time equivalent. 4. The staff sickness absence reasons are ranked on the number of days taken by that absence. | |||
Taxation: Foreign Companies
Mark Reckless: To ask the Chancellor of the Exchequer how many businesses moved their headquarters for tax purposes away from the UK in each of the last four year for which figures are available. [42770]
Mr Gauke: Businesses may move their headquarters for a combination of reasons, including tax, and can restructure in different ways with different tax consequences, depending on the facts in each case. One form of restructuring involves businesses formerly headed by a UK tax resident company creating a new parent company that is claimed to be tax resident elsewhere. Businesses are not required to inform HMRC of this change, but on the basis of research undertaken by HMRC, we believe the numbers are as follows:
|
|
Number |
VAT: Registration
Mr Brine: To ask the Chancellor of the Exchequer (1) what assessment he has made of the effects on small and medium-sized enterprises of the time taken by HM Revenue and Customs to process value added tax registration applications; [44785]
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(2) what assistance HM Revenue and Customs provides to owners of small and medium-sized businesses who have experienced delays in the processing of applications for VAT registration. [44812]
Mr Gauke: HM Revenue and Customs (HMRC) aims to issue VAT registration numbers as quickly as possible, while protecting the VAT system from fraud. It is necessary to balance the speed of registration against the need to risk assess applications and carry out necessary checks to safeguard against fraud.
HMRC's target is to decide 70% of applications within 10 days. Average performance for the period from April 2010 to January 2011 was 65%. However, monthly performance from August onwards has been ahead of target, with performance in December and January being 77.2% and 79.9% respectively.
HMRC recognises that where an application is selected for in-depth checks, these are currently taking longer to carry out than it would wish. The Department is looking at how it can improve performance in this area.
If a business is experiencing problems because of a delay in completing checks on its application, it should contact the Registration Team in Cardiff on 02920 325001.
Business, Innovation and Skills
Arms Trade: Exports
Sir John Stanley: To ask the Secretary of State for Business, Innovation and Skills for which countries arms export licences have been revoked as a result of his Department’s review of export licences announced on 18 February 2011; how many (a) individual and (b) open licences were revoked in respect of each country; and what the date of revocation was in each case. [44727]
Mr Prisk [holding answer 7 March 2011]: As at 3 pm on 3 March 2011 the following export licences have been revoked under this review:
One Standard Individual Export Licence (SIEL) was revoked on 27 January and Tunisia was removed as a permitted destination from one Open Individual Export Licence (OIEL) on 28 January.
36 SIELs were revoked between 7 February and 11 February and Egypt was removed as a permitted destination from eight OIELs between 10 February and 1 March.
62 SIELs were revoked between 18 February and 3 March and Libya was removed as a permitted destination from three OIELs on 23 February.
23 SIELs were revoked on 18 February and Bahrain was removed as a permitted destination from 16 OIELs between 18 February and 2 March.
The review is ongoing as we continue to monitor how the situation develops in this region.
Arts
Caroline Lucas:
To ask the Secretary of State for Business, Innovation and Skills what assessment he has made of the potential role for the arts and creative
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industries within local enterprise partnerships (LEPs)
(a)
nationally and
(b)
in the Brighton and Hove area; what arrangements will be made for industries to be represented within LEPs; and if he will make a statement. [44639]
Mr Prisk: Local enterprise partnerships are developed from the bottom up and as such it is for them to decide what their priorities for action should be. In forming their boards we would expect partnerships to ensure their business members reflected key sectors in their areas.
Businesses: Government Assistance
Gordon Birtwistle: To ask the Secretary of State for Business, Innovation and Skills what steps his Department is taking to support (a) existing small businesses and (b) to local business start-ups. [43283]
Mr Prisk: Business support is currently delivered via the regional development agencies through the Business Link regional advisory service and:
www.businesslink.gov.uk
Government recently announced reforms to the way information, guidance and advice to small and start-up businesses is provided, with more focus on improving small business performance and growth, and a greater emphasis on further and better private sector provision. The ‘Bigger, Better Business’ document sets out the plans in detail. It can be found on the BIS website at:
www.bis.gov.uk
searching under publications. These include an online hub for people wanting to start up.
Gordon Birtwistle: To ask the Secretary of State for Business, Innovation and Skills what support his Department offers to assist start-up companies in the manufacturing sector. [43412]
Mr Prisk: A range of business support is currently delivered via the Regional Development Agencies through the Business Link regional advisory service:
www.businesslink.gov.uk
and targeted at start-ups and the Manufacturing Advisory Service (MAS) at:
www.mas.bis.gov.uk
to help manufacturing businesses improve productivity and effectiveness.
Government recently announced reforms to the way information, guidance and advice to small and start-up businesses is provided, with more focus on improving small business performance and growth. The ‘Bigger, Better Business’ document sets out the plans in detail. It can be found on the BIS website at:
www.bis.gov.uk/assets/biscore/enterprise/docs/b/11-515-bigger-better-business-helping-small-firms
Departmental Leaseback Arrangements
Stewart Hosie:
To ask the Secretary of State for Business, Innovation and Skills what assets his Department has sold and leased back over the last 12 months; what the sale price was of each asset so sold; and what
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estimate he has made of the cost to the public purse of leasing back each such asset over the period of the lease. [45076]
Mr Davey: The Department has not sold and leased back any building assets in the last 12 months.
Departmental Procurement
Jon Trickett: To ask the Secretary of State for Business, Innovation and Skills whether all new contracts his Department has tendered over £10,000 have been published with associated tender documents on the Contracts Finder website since its inception. [39215]
Mr Davey: The Department for Business, Innovation and Skills (BIS) has published five sets of tender documents from a total of seven tenders issued since September 2010. The remaining two sets are being prepared for publication.
BIS has awarded three contracts subject to publication. The three contracts are being prepared for publication.
This Department receives its information and communication technology (ICT) provision via a private finance initiative (PFI) contract which is not subject to publication requirements.
Environment Protection
Gordon Henderson: To ask the Secretary of State for Business, Innovation and Skills what assessment he has made of the potential contribution of remanufacturing to achieving a low carbon economy. [44569]
Mr Prisk: Remanufacturing has an important role to play in achieving a low carbon economy. Reuse of components and remanufacture of products offers a promising way to meet growing demand for energy intensive goods whilst ensuring carbon emissions are reduced to acceptable levels.
This Department, in partnership with the Department of Energy and Climate Change, is currently carrying out a review of greenhouse gas abatement potential in energy intensive industries, in light of the move to a low carbon economy. In particular, with the support of industry and academic experts, we are considering the potential for greater material efficiency, including remanufacture and reuse, in key sectors such as steel, aluminium and plastics.
Export Credits Guarantee Department
Annette Brooke: To ask the Secretary of State for Business, Innovation and Skills if he will take steps to make the operations of the Export Credits Guarantee Department more transparent and accountable; and if he will make a statement. [44983]
Mr Davey
[holding answer 8 March 2011]: On accountability, the Export Credits Guarantee Department (ECGD) is a Department of State. Its powers are derived from statute: the Export Guarantees and Investment Act 1991, as amended by the Industry and Exports (Financial Support) Act 2009 (the Act). These powers may be exercised only with the consent of HM Treasury. Through its Secretary of State, ECGD is accountable to
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Parliament for all its activities. From time to time Parliament conducts enquiries that address ECGD's operations.
On transparency, ECGD fulfils the Government's commitment to transparency. ECGD publishes details of its operations, including export transactions it has supported, in its annual review and resource accounts and on its website. The entitlement to confidentiality, either for individuals or entities, is set by the law of confidence, and the basis for balancing openness and confidentiality by government and public authorities has been established by Parliament through the Freedom of Information Act and the Environmental Information Regulations. ECGD operates within these frameworks.
Green Investment Bank: Costs
Luciana Berger: To ask the Secretary of State for Business, Innovation and Skills what estimate he has made of the likely cost to the public purse of salaries for (a) staff and (b) board members of the Green Investment Bank; and what estimate he has made of the administrative costs of the bank's operation. [45161]
Mr Prisk: The Government are committed to publishing details of the governance arrangements and the business and operating model of the new institution by the end of May 2011.
Green Investment Bank: Finance
Luciana Berger: To ask the Secretary of State for Business, Innovation and Skills what arrangements he plans to put in place to underwrite the Green Investment Bank. [45159]
Mr Prisk: The Government are committed to establishing the governance arrangements for the new institution by the end of May 2011 when a detailed announcement will be made.
Green Investment Bank: Manpower
Luciana Berger: To ask the Secretary of State for Business, Innovation and Skills what estimate he has made of the likely number of employees at the Green Investment Bank in its first year of operation. [45160]
Mr Prisk: Decisions about the staffing levels required for the bank will be taken in due course, when the precise nature of the GIB is clearer. However, we are not envisaging an institution employing a large number of staff.
Green Investment Bank: Public Appointments
Luciana Berger: To ask the Secretary of State for Business, Innovation and Skills what arrangements he plans to put in place to determine appointments to the board of the Green Investment Bank. [45158]
Mr Prisk: The governance arrangements for the Green Investment Bank (GIB) will depend on its final design, which we are currently working on and testing for effectiveness, affordability and transparency. We plan to make a detailed announcement by the end of May.
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We expect to appoint staff to the GIB in accordance with the Commissioner for Public Appointments Code of Practice on Ministerial Appointments to Public Bodies, and this Department's structural reform plan.
Intellectual Property: Reform
Luciana Berger: To ask the Secretary of State for Business, Innovation and Skills what recent discussions he has had on changes to legislation governing intellectual property. [44895]
Mr Davey: The Secretary of State for Business, Innovation and Skills has regular discussions about the subject, with his ministerial team in this Department, with colleagues in other Departments, and with other Governments. The subject also comes up frequently in contacts with business and other organisations with an interest in intellectual property.
Local Enterprise Partnerships
Mr Marsden: To ask the Secretary of State for Business, Innovation and Skills what discussions he has had with representatives of the further and higher education sectors on the setting of local skills strategies and the involvement of local enterprise partnerships in this process. [45206]
Mr Hayes: Further and higher education institutions are being encouraged to work together so that they can engage with their local enterprise partnership to ensure alignment between the economic development priorities and the skills provision available locally. This will include colleges consulting local enterprise partnerships, as well as other employer led bodies, local authorities and Jobcentre plus, on their business plans and how public funding can be aligned so that it contributes to local economic and community demand. In line with our commitment to reduce bureaucracy, there is no Government requirement for local skills strategies rather Government are getting out of the way and enabling local partners to develop the arrangements which meet their needs.
Mr Marsden: To ask the Secretary of State for Business, Innovation and Skills whether his Department has issued guidance to prospective local enterprise partnerships regarding the inclusion of further and higher education representatives on their executive boards. [45207]
Mr Prisk: As set out in the White Paper on Local Growth the Government will normally expect to see business representatives form half the board, with a prominent business leader in the chair. Partnerships will want to work closely with other key economic stakeholders including further and higher education representatives but it is for partnerships to decide whether this involves providing them with a seat on their board.
Mr Marsden: To ask the Secretary of State for Business, Innovation and Skills what account his Department's approval process for local enterprise partnerships takes of the capacity of applicants to reflect the diversity of the geographic areas which they cover. [45209]
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Mr Prisk: As set out in the White Paper on Local Growth the Government will normally expect to see business representatives form half the board, with a prominent business leader in the chair. We would want to see these board members drawn from small enterprises through to large businesses, and representing the key sectors in the area.
Local Enterprise Partnerships: Buckinghamshire
Steve Baker: To ask the Secretary of State for Business, Innovation and Skills if he will take steps to ensure that Buckinghamshire is included in a local enterprise partnership; and if he will make a statement. [45320]
Mr Prisk: Buckinghamshire's original proposal for a local enterprise partnership did not meet all the Government's expectations as set out in the Local Growth White Paper. The partnership was therefore asked to reconsider their proposal against these expectations and resubmit when they were met. The Government will be willing to discuss the partnership's proposed approach as this is developed.
Local Enterprise Partnerships: Pay
Mr Carswell: To ask the Secretary of State for Business, Innovation and Skills what salary scales apply to staff in local enterprise partnerships; and how many staff working for a local enterprise partnership are paid an annual salary in excess of £50,000. [45312]
Mr Prisk: Local enterprise partnerships are voluntary arrangements between their respective members and are not an arm of Government. Government do not provide any funding to partnerships for their day-to-day running costs and it is therefore for partnerships to fund their staffing costs and at a level they see fit.
Medicine: Education
Jonathan Reynolds: To ask the Secretary of State for Business, Innovation and Skills what recent representations he has received on the effects of planned changes to the student finance regime on those undertaking medical degrees. [44549]
Mr Willetts: The Department of Health (DoH), and professional bodies, including the British Medical Association, have made representations to the Department about the impact of the proposed changes to the funding regime for higher education and student support for medical students. We will continue to work with DoH and others to ensure that the interests of those taking medical degrees are taken into account.
Motor Vehicles: Industry
Neil Carmichael: To ask the Secretary of State for Business, Innovation and Skills what recent assessment he has made of the availability of (a) training and (b) skills in the automotive electronics sector; and if he will make a statement. [45185]
Mr Hayes:
The Sector Skills Council for Science, Engineering and Manufacturing Technologies is the Sector Skills Council for the automotive and engineering sector. SEMTA works with employers to identify skills
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needs and seeks to improve the match between the supply and demand for technical skills. An assessment of the skills and training requirements for the industry is available through SEMTA’s strategic action plans.
Office of Fair Trading: Complaints
Lorely Burt: To ask the Secretary of State for Business, Innovation and Skills pursuant to the answer of 3 February 2011, Official Report, column 960W, on the Office of Fair Trading: complaints, how many of the 985 total complaints made to the Office of Fair Trading were consumer complaints. [45151]
Mr Davey: Of the 985 total number of complaints about debt management companies made to the Office of Fair Trading’s (OFT) Enquiries and Reporting Centre between 2005-11, 796 complaints were received from consumers.
Overseas Companies: Libya
Stephen Metcalfe: To ask the Secretary of State for Business, Innovation and Skills if he will assess the effects of recent unrest in Libya on the finances and cash flow of UK small and medium-sized enterprises (SMEs) doing business in the region; and if he will assess the merits of offering short-term financial support to these SMEs. [44979]
Mr Prisk [holding answer 8 March 2011]: It is still too early to assess what impact the current situation in Libya will have on UK trade. UK exports to Libya in 2010 were £377 million but it is not possible to tell what proportion involved small or medium-sized enterprises.
Companies are strongly advised in all instances to take out trade credit insurance and to protect themselves against political risk. Those companies which did so and have lost financially as a result of the Libyan unrest are able to seek appropriate compensation.
We will continue keep the situation under review and would urge businesses to put in place crisis management plans. Advice is available from the Government website:
www.businesslink.gov.uk
Overseas Students: EU Nationals
Mr Thomas: To ask the Secretary of State for Business, Innovation and Skills pursuant to the answer of 31 January 2011, Official Report, column 600W, on overseas students: EU nationals, how many (a) penalties were charged and (b) other actions were taken in the latest period for which figures are available; and if he will make a statement. [44859]
Mr Willetts [holding answer 7 March 2011]: Students from the European Union (EU) are entitled to receive the same student support as home students in respect of tuition fees. The first main cohort of EU students were due to start repaying in April 2010.
Where borrowers have returned overseas and have not responded, a default schedule is drawn up and the account put into arrears. A default letter is sent immediately asking for repayment of the default balance. This step allows court action to follow if necessary.
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To date, no penalties have been charged to borrowers. As of 30 April 2010, 1,100 EU borrowers were in arrears (10% of EU borrowers). In 2009, the SLC successfully raised nine judgments against EU borrowers. The SLC enforced some in Scottish courts and some in other EU countries. This group of borrowers were those who had left their courses and who came into repayment earlier than the first main cohort. We cannot break the information down further as it could compromise the confidentiality of individuals.
It is too early to say how successful these processes will be since the full cycle has yet to be run. Nonetheless, we continue to work with the SLC to develop the most robust and cost-effective methods for collection as possible. This applies equally to UK students who notify the SLC that they are moving abroad.
Overseas Students: Loans
Esther McVey: To ask the Secretary of State for Business, Innovation and Skills (1) how many non-EU overseas students have not made scheduled student loan repayments in each of the last five years; [41705]
(2) how many students from European Union member states other than the UK have not made scheduled repayments to the Student Loans Company in each of the last five years. [41706]
Mr Willetts: Students from non-EU countries are not generally eligible for support. However, European economic area (EEA) migrant workers and certain family members, children of Swiss nationals and children of Turkish workers may be eligible. Such students are entitled to apply for the full student support package provided that they satisfy specific residence conditions. Information which separately identifies these borrowers from English borrowers is not available centrally.
European Union (EU) nationals are generally eligible for tuition fee support only, provided that they have been ordinarily resident in the EEA or Switzerland for the three years prior to the first day of the first academic year of their course. EU nationals have been eligible to apply for tuition fee loans since they were introduced in the 2006/07 academic year.
The number of EU borrowers who have taken out tuition fee loans only and have not made scheduled repayments to the Student Loans Company is shown table 1(iii) of the ‘Income Contingent Repayments by Repayment cohort and tax year 2000/01 to 2008/09 inclusive (provisional)’. These official statistics are accessible at:
http://www.slc.co.uk/pdf/SLCOSP032010.pdf
The relevant categories are shown in the following table:
| EU borrowers studying in England who took up a tuition fee loan and are liable to repay as at 30 April 2010 | |||
| Number of EU borrowers (percentage of the repayment cohort total) | |||
| Repayment status | Known to be overseas, above the earnings threshold for that country and has fallen into arrears | Known to be overseas, has not provided details of income and is now considered to be in arrears | Total |
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| (1) nil or negligible Note: Figures are rounded to the nearest 100 Source: Student Loans Company | |||
Patents
Chris Ruane: To ask the Secretary of State for Business, Innovation and Skills what recent assessment he has made of the relative position of the UK in international comparator tables on the number of patents granted per million of population. [44604]
Mr Davey: The World Intellectual Property Organisation (WIPO) publishes worldwide patent application and grant statistics every year, according to the information it receives from patent offices around the world. Although it has previously published comparator tables on the number of patents granted per million of population, it has not done so for recent years, and in this year’s publication it notes that patent offices do not consistently report the origin of patents granted.
WIPO does publish figures for patent applications filed per million of population and comparisons can be made for recent years up to 2007, in which the UK’s position has been consistently within the top 10.
Several points should be borne in mind in making such comparisons. First, patents do not cover all areas of industrial and commercial endeavour, and so patent filings will reflect a country's economic structure. Some innovations are more likely to be monetised through other types of intellectual property, such as designs, trade marks, copyright, know how, and plant breeders rights. And there are some specific exceptions from patent protection under most national laws. Secondly, individual patents are not equal in value, which can depend on market forces and how well the patent has been drafted to stand up against challenge. Studies have shown that patent value is skewed so that a small percentage of patents overall turn out to have a very high value compared with the remainder. Thirdly, an applicant may choose not to patent in a particular
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market if there are no significant competitors. So the absence of a patent does not necessarily mean that no products are being sold.
Patents: EU Action
Mr Kennedy: To ask the Secretary of State for Business, Innovation and Skills (1) if he will assess the effects on the (a) economy, (b) businesses and (c) UK competitiveness of (i) participation and (ii) non-participation in the proposed new EU patent system; and if he will make a statement; [43481]
(2) what assessment he has made of the effects on (a) economic growth, (b) UK competitiveness, (c) levels of foreign direct investment and (d) other aspects of the UK economy of (i) participation in the proposed new EU patent system and (ii) continuing participation in the Europe Patent Office system for granting EU-wide patents; and if he will make a statement; [43482]
(3) what estimate he has made of the average cost per patent to UK businesses of using (a) the proposed new EU patent system and (b) the European Patent Office system for granting EU-wide patents; and if he will make a statement. [43483]
Mr Davey: The UK is strongly committed to an EU patent, or a unitary patent, that delivers real benefits for businesses and the European economy. The proposed unitary patent will offer an additional choice to businesses wishing to obtain patent protection covering the majority of the EU market. Estimates of the savings to business and economic impact are difficult to make as they depend on the arrangements that are finally agreed. But a unitary patent should allow businesses to save the costs of filing translations in order to validate their patent in the different countries concerned. Compared with a typical European patent under the current system, there could be savings of between £10,000 and £20,000 per patent on translations alone. For UK businesses currently taking out around 2,000 European patents per year this could represent a saving of £20-40 million a year. Other savings should be possible from simplified administration and enforcement of patents in Europe; the proposals are not sufficiently advanced to allow quantitative assessment.
Specific estimates for the effects of the proposed EU patent arrangements, or the existing European Patent Office (EPO) system on economic growth or foreign direct investment are hard to make, because the impacts of the intellectual property system are closely bound up with other regulatory and market factors. However, there have been a number of studies which show the role of aspects of the single European market in UK economic growth.
The Government recently published an assessment (BIS Economics paper 11) of likely additional national income in the UK if trade and competition in Europe were as integrated as it is in the US. If barriers in the EU were reduced to the point at which trade was as easy as between US states (which, unlike the EU, have one patent system), by 2020 UK national income would be 7% higher than if barriers had remained unchanged.
Emerging results from UK Trade and Investment's ongoing research programme show that intellectual property (IP) is important for foreign direct investment. About one third of inward investors to the UK cite IP as an
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important factor in their decisions to invest. Differences in IP systems can impose costs. These are particularly hard for young innovative firms which, under current arrangements, have to defend their intellectual property rights under national systems even if they have an EPO patent.
Postal Boxes: Northamptonshire
Mr Hollobone: To ask the Secretary of State for Business, Innovation and Skills how many Royal Mail post boxes there are in (a) the borough of Kettering, (b) Northamptonshire, (c) England and (d) the UK. [44741]
Mr Davey [holding answer 7 March 2011]: There are some 115,000 post boxes in the UK.
The Department does not hold any further breakdowns of post box numbers as this is an operational matter for Royal Mail. I have therefore asked the chief executive of Royal Mail, Moya Greene, to respond directly to the hon. Member and a copy of her reply will be placed in the Libraries of the House.
Mr Hollobone: To ask the Secretary of State for Business, Innovation and Skills what information Royal Mail holds on the (a) geographical location of and (b) Royal monogram borne by each post box in the Borough of Kettering. [44742]
Mr Davey [holding answer 7 March 2011]: Post boxes are an operational matter for Royal Mail. I have therefore asked the chief executive of Royal Mail, Moya Greene, to respond directly to the hon. Member and a copy of her reply will be placed in the Libraries of the House.
Regional Development Agencies: Assets
Richard Graham: To ask the Secretary of State for Business, Innovation and Skills when he expects to announce the outcome of the transfer of regional development agency assets. [45261]
Mr Prisk: The Government anticipates the systematic disposal of Regional Development Agency (RDA) assets and liabilities will begin by April. Each RDA has submitted a detailed assets and liabilities plan and these are currently being scrutinised by Government. Information will be made available in due course, once in-principle decisions have been made on appropriate methods of disposal for particular types of assets.
Regional Government
Mr Marsden: To ask the Secretary of State for Business, Innovation and Skills what discussions he has had with the Secretary of State for Communities and Local Government prior to making the announcement on the creation of his Department’s new regional offices. [41314]
Mr Prisk
[holding answer 16 February 2011]: The proposals for ongoing functions have been developed as part of the Government’s arrangements for the closure of the Government offices for the regions (and the
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closure of the regional development agencies). These arrangements were developed jointly by all the Government Departments with continuing functions.
Regional Growth Fund: Yorkshire and the Humber
Caroline Flint: To ask the Secretary of State for Business, Innovation and Skills how many bids to the Regional Growth Fund have been made from (a) the Sheffield City region and (b) Yorkshire and the Humber; and what the total monetary value of such bids is. [44531]
Mr Prisk: 464 bids have been received in Round 1 of the Regional Growth Fund(RGF). Of these, 21 bids (with a total value of Regional Growth Fund (RGF) request for £223 million) have been received from the Sheffield City region area and 56.5 bids (with a total value of RGF request for £405 million) from the Yorkshire and the Humber region. A summary of bids received in Round 1 of the RGF is available on the BIS website:
http://www.bis.gov.uk/RGF
Students: Fees and Charges
Stella Creasy: To ask the Secretary of State for Business, Innovation and Skills what estimate he has made of the number of students who will apply for deferred places at universities for 2012; and when he expects tuition fees for such courses to be known. [45205]
Mr Willetts: Statistics on deferred entry to higher education are available via the University and Colleges Admissions Service (UCAS). Final end of year figures for 2010 show that 487,329 applicants from all domiciles accepted a place at a UK institution; 33,472 of these have deferred entry to 2011.
Limited information is held on the extent of deferred entry to 2012 in the current application cycle. Applicants can make up to five choices on their application form and this can include courses which start in 2011 or 2012.
As of 21 February 2011, 604,705 people had applied for courses in the current application cycle, 18,711 of these applied for at least one course beginning one year or more after September 2011. At the equivalent point in the previous cycle, 587,857 people had applied, 28,075 of these applied for at least one course beginning one year or more after September 2010. In the 2011 application cycle the main deadline for universities and colleges to guarantee consideration of applications for those domiciled in the UK and EU was 15 January 2011.
The new support arrangements we are introducing from the 2012/13 academic year will apply to all students starting university in that year, including those who have deferred entry. When the new arrangements were announced, UCAS informed deferred entry applicants that had applied prior to 4 November 2010 about this by email. The email informed applicants of the implications of the new finance arrangements and advised them to check the BIS website for further information and contact individual institutions to discuss individual circumstances.
English institutions wishing to charge more than £6,000 per year will need first to have their plans for sustaining or improving access and student retention approved by the Office for Fair Access (OFFA). OFFA
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will publish approved plans (access agreements) by 11 July 2011 and institutions will then be able to publish their tuition charges.
The tuition fee arrangements for devolved Administrations have still to be determined. The Welsh Assembly will vote on tuition fee changes before the elections on 5 May. Tuition fees for students applying to study at institutions in Scotland and Northern Ireland will be determined by the new Administrations after the elections on 5 May 2011.
UCAS will publish verified tuition fee information on a single date in July.
Technology: Greater London
Luciana Berger: To ask the Secretary of State for Business, Innovation and Skills whether he has had recent discussions with representatives of organisations involved in the East London Tech City development. [44896]
Mr Prisk: The Secretary of State for Business, Innovation and Skills attended a meeting which the Prime Minister had with Eric Schmidt of Google on 24 January. In addition, the Minister for Universities and Science, the right hon. Member for Havant (Mr Willetts) and officials in the Department for Business, Innovation and Skills (BIS) and UK Trade and Investment (UKTI) have engaged with a number of companies interested in investing in the development. UKTI and BIS officials also attend monthly project meetings at No 10.
Vinyl Acetate
Mr Graham Stuart:
To ask the Secretary of State for Business, Innovation and Skills whether he plans to
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provide support for British manufacturers of vinyl acetate. [44567]
Mr Prisk: The Government have no plans to provide support for British manufacturers of vinyl acetate.
Mr Graham Stuart: To ask the Secretary of State for Business, Innovation and Skills if he will estimate the number of skilled workers employed in the production of vinyl acetate in the UK. [44662]
Mr Prisk: This Department does not collect such information.
Yorkshire Forward: Assets
Rachel Reeves: To ask the Secretary of State for Business, Innovation and Skills what options he is considering for disposal of the assets and liabilities of Yorkshire Forward. [44204]
Mr Prisk: All regional development agencies (RDAs), including Yorkshire Forward, submitted detailed assets and liabilities plans to this Department on 31 January. These plans are currently being scrutinised and assets will be considered on a case by case basis. As we reach these decisions, I anticipate that the results will be made public as soon as possible.
The general principles upon which decisions on the disposal of RDA assets and liabilities will be made have already been set out in the Local Growth White Paper and repeated in a statement sent to the libraries of the House on 10 February 2010 and which can be found at:
http://www.bis.gov.uk/policies/economic-development/englands-regional-development-agencies/assets/statement-on-rda-assets-and-liabilities