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Palace of Westminster: Accommodation

Lord Evans of Parkside asked the Chairman of Committees:

The Chairman of Committees (Lord Boston of Faversham): Thirty-three.

Lord Evans of Parkside asked Her Majesty's Government:

Lord Boston of Faversham: Sixteen.

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Lord Evans of Parkside asked Her Majesty's Government:

    How many rooms within or without the Palace are occupied by four to eight Peers, and how many rooms are occupied by more than eight Peers.

Lord Boston of Faversham: Thirty-seven rooms are occupied by four to eight Peers, and seven rooms are occupied by more than eight Peers.

Lord Evans of Parkside asked Her Majesty's Government:

    How many Peers have not yet been allocated (a) a room; (b) a desk; (c) a telephone; (d) a locker.

Lord Boston of Faversham: On 2 December there were 1,151 members of the House of Lords (excluding Lords on Leave of Absence and Lords not in receipt of Writs). As (i) not all of these Lords have requested their own rooms, desks, telephones and lockers, (ii) waiting lists for rooms and desks are kept by party whips and (iii) there is a substantial degree of semi-formal and informal sharing of facilities, it is easier instead to state the number of such facilities that have been allocated.

Thirty-three Lords have their own rooms. In addition, there are 60 rooms occupied by two or more Lords.

There are 322 desks allocated to Lords. Some of these desks are shared on a semi-formal or informal basis. Three hundred and twenty Lords have been allocated telephone numbers. Lockers have been allocated to 178 Lords, with a further 18 on the waiting list.

Lord Evans of Parkside asked the Chairman of Committees:

    How many officers and staff of the House of Lords have office accommodation within the House of Lords section of the Palace of Westminster; and what is the total number of rooms involved.

Lord Boston of Faversham: Seventy-nine rooms are occupied by 167 staff.

Lord Evans of Parkside asked the Chairman of Committees:

    Which government departments have office accommodation in the House of Lords section of the Palace of Westminster; how many staff are involved; and how many rooms they occupy.

Lord Boston of Faversham: The only government department with offices in the House of Lords is the Lord Chancellor's Department, with 18 staff occupying six offices.

Lord Evans of Parkside asked the Chairman of Committees:

    How many rooms in that part of the Palace of Westminster occupied by the House of Lords are used principally for storage purposes.

Lord Boston of Faversham: The information is not available in the form requested. There is 5490.5 square metres of storage space in the House of Lords, in 214 locations ranging from 0.4 square metres to 234.2 square

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metres. The breakdown by area is as follows (all figures in square metres).


    Basement1,931.6


    Ground Floor437.3


    Ground Mezzanine20.5


    Principal Floor40.2


    First Floor2.2


    Second Floor69.6


    Third Floor185.2


    Victoria Tower2,757.9


    6/7 Old Palace Yard46.0

Lord Evans of Parkside asked the Chairman of Committees:

    How many individuals have housing accommodation in that part of the Palace of Westminster occupied by the House of Lords; on what grounds they occupy such accommodation; and what is the total number of rooms involved.

Lord Boston of Faversham: The only housing accommodation in the House of Lords is that occupied by the Lord Chancellor, which consists of nine rooms. This accommodation is provided to the Lord Chancellor in respect of his duties as Speaker of the House.

Lord Evans of Parkside asked the Chairman of Committees:

    Whether he will enter into negotiations with the appropriate House of Commons authorities to release surplus office accommodation currently in their possession for use by members of the House of Lords.

Lord Boston of Faversham: Such negotiations are taking place.

Electricity from Gas

Lord Hardy of Wath asked Her Majesty's Government:

    What is their estimate of the proportion of the national electricity supply which will be met from the use of gas in five years' time.

The Minister of State, Department of Trade and Industry (Lord Simon of Highbury): The previous administration published energy projections for the UK as Energy Paper 65 in March 1995, which is available in the Libraries of the House. It indicated that the share of gas in fuel inputs to electricity generation in 2000 was likely to fall within the range 30 per cent. to 35 per cent.

My department is working on a new set of projections which we intend to publish next year.

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Biotechnological Inventions

Lord Lester of Herne Hill asked Her Majesty's Government:

    What is their position in relation to the draft EC directive on the legal protection of biotechnological inventions.

Lord Simon of Highbury: The Government supported the proposed directive for the legal protection of biotechnological inventions at the Internal Market Council on 27 November. Political agreement on the proposal was reached at this meeting.

Lord Lester of Herne Hill asked Her Majesty's Government:

    Whether they will ensure that there is full consultation before they decide whether to support the draft EC directive on the legal protection of biotechnological inventions.

Lord Simon of Highbury: The Commission's second proposal for a directive on the legal protection of biotechnological inventions was circulated for comment in February 1996 to some 50 organisations and interest groups representing consumers, the research community, groups concerned with the social and environmental impact of biotechnology, members of the patent law profession, the industry and the Standing Advisory Committee on Industrial Property, an independent body set up to advise Ministers on aspects of industrial property.

Interest in the Commission's proposal increased after the European Parliament adopted its first Opinion in July of this year. More than 150 organisations were sent copies of the Commission's revised draft of the proposal which was produced in September in response to the Parliament's first Opinion. The comments received from these organisations were taken into account when the United Kingdom supported the proposed directive at the Internal Market Council on 27 November.

Single Currency: Deficit Penalties

Lord Stoddart of Swindon asked Her Majesty's Government:

    Further to the Answer given to Lord Stoddart of Swindon on 24 November (WA 103), whether they will state what is the maximum amount expressed in pounds sterling that could be levied as a fine under Council Regulation EC467/97 for breaking the excessive deficit procedure if the United Kingdom were to participate in the single currency, basing their answer on the latest figures of GDP available to HM Treasury; and if not, why not.

Lord McIntosh of Haringey: According to Council Regulation (EC) No. 1467/97, of 7 July 1997, the maximum single fine cannot exceed an upper limit of 0.5 per cent. of GDP. 0.5 per cent. of the latest calendar year figure for the value of GDP was approximately £3.7 billion. The sanctions under Council Regulation

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(EC) No. 1467/97 would not apply to member states who do not participate in the single currency.

Scotland and Wales: Block Budgets

Lord Bruce of Donington asked Her Majesty's Government:

    What arrangements will be made for determining changes to the budgets of the Scottish Parliament and National Assembly for Wales under devolution.

Lord McIntosh of Haringey: The Government set out their position on the funding of the budgets for the Scottish Parliament and National Assembly for Wales in the White Papers published in July (Cm 3658 and Cm 3718). The key to these arrangements is block budgets which the devolved administrations, like the Secretaries of State now, will be free to deploy between the functions under their control in response to local priorities. Changes in these block budgets will be linked to changes in equivalent English spending plans by the Barnett formula, which gives Scotland and Wales a population-based share of planned changes in comparable spending in England.

In order to help inform debate about these arrangements during the passage of the Scotland and Wales Bills, the Government published yesterday a statement of the principles which govern the existing block/formula arrangements and which will continue to do so under devolution. A copy of the statement is appended. Copies were placed yesterday in the Libraries of both Houses and referred to by the Secretary of State for Wales when he opened the House of Commons Second Reading debate on the Government of Wales Bill.

Although the block and formula arrangements have operated for nearly 20 years, this is the first time that these principles have been spelt out in public.

Principles to Govern Determination of the Block Budgets for the Scottish Parliament and National Assembly for Wales

1. The Government set out their position on the Block and formula arrangements in its White Papers on Scottish and Welsh devolution published in July (Cm 3658 and Cm 3718 respectively). The Scottish White Paper, Scotland's Parliament, said:


    "In practice these arrangements, based on the Block and formula, have produced fair settlements for Scotland in annual public expenditure rounds and have allowed the Secretary of State for Scotland to determine his spending decisions in accordance with Scottish needs and priorities. They have largely removed the need for annual negotiation between the Scottish Office and the Treasury. The Government have therefore concluded that the financial framework for the Scottish Parliament should be based on these existing arrangements with, in future, the Scottish Parliament determining Scottish spending priorities."

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The Wales White Paper, A Voice for Wales, said:


    "The Government proposes that the financial arrangements for the Assembly will largely replicate the existing system.


    Annual changes to the Welsh Block will be calculated by the population-based formula used at the moment. These arrangements based on the Block and formula have worked in practice, producing fair settlements for Wales in annual public expenditure rounds."

2. The Scottish Parliament and National Assembly for Wales will therefore have block budgets, which they will be free to allocate in response to local priorities among the functions under their control and for which they will be accountable to local people. This note outlines the principles set out in the White Papers and describes how they will govern changes made to these block budgets under devolution.

Settling Scotland's and Wales' shares of UK public expenditure: the "Barnett" formula

Existing position

3. All UK tax revenues are pooled. Decisions about the allocation of UK public expenditure are made in the light of the Government's judgment of relative priorities and relative needs. Changes to the shares of public expenditure available to the Secretaries of State for Scotland and Wales are determined by a formula linked to changes in provision for equivalent spending programmes in England.

4. This formula, which has operated for almost 20 years, is known as the "Barnett" formula. It provides that, in settling new plans for public expenditure, Scotland and Wales should receive a share of the planned cash changes in provision for equivalent public services in England which is proportionate to their population. In other words, Scotland's and Wales' shares of changes in relevant planned spending in England are the same proportions as their populations represent of England's population. The formula applies only to changes in spending plans, not to the underlying baselines, which remain unaffected. The formula also applies only to changes in the block budgets: expenditure on agriculture in Scotland and Wales, and expenditure on nationalised industries in Scotland, is outside the block budgets at present and is settled separately.

After devolution

5. These arrangements will continue under devolution, with only minor adjustments. Changes to the block budgets for which the Scottish Parliament and the National Assembly for Wales will become responsible will continue to be determined by a formula linked to changes in provision for the equivalent spending programmes in England. The formula will continue to be based on relative populations. The spending for which the devolved administrations in Scotland and Wales will assume responsibility is set out in the annexes to this note.

6. The Government intend that these population shares will be recalculated annually on the basis of the latest population estimates for England, Scotland and

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Wales published each year by the Office of National Statistics. The population ratios will next be updated for the purpose of determining changes in the Scottish and Welsh block budgets for 1999-2000.

7. The Government intend that this population-based formula will apply to changes in almost all the expenditure under the control of the Scottish Parliament and National Assembly for Wales. It will not apply to changes in agriculture programmes 100 per cent. funded by the EU. The Government will also want to consider whether this approach or another formula is appropriate in relation to provision for council tax benefit and housing benefit, which will both come within the Scottish Block for the first time after devolution; housing benefit is already within the Welsh Block, but, as in Scotland, council tax benefit will come within the block for the first time.

Adjustments to the Scottish and Welsh block budgets not determined by the Barnett formula

8. There are a number of circumstances in which the block budgets under the control of the Secretary of State for Scotland and Wales are open to adjustment other than on the basis of the Barnett formula. These exceptions will continue to apply under devolution. Adjustments may be made where:

(a) the UK Government decides to make a uniform general adjustment to public expenditure programmes;

(b) action taken by the Scottish or Welsh administrations in a devolved area has knock-on costs for the UK Government or vice versa. The block budgets may be adjusted downwards to compensate for costs incurred by the UK Government as a result of the actions of the devolved administrations, or upwards to compensate the devolved administrations for costs which they incur as a result of actions by the UK Government and are not allowed for through the operation of the Barnett formula. The block budgets will not however be adjusted upwards by reason of additional costs incurred as a result of actions by the UK Government which the UK Government is expecting English departments with parallel responsibilities to absorb within existing spending plans;

(c) the devolved administrations receive capital receipts as a result of a privatisation or major change in the role of the public sectors in Scotland or Wales. In these circumstances, the block budgets may be adjusted downwards in the year in which the receipts occur to reflect the continuing interest in these receipts of UK taxpayers as a whole who financed the underlying capital assets in the past. Proceeds from the sales of other capital assets under the control of the Scottish Parliament or National Assembly for Wales will be available to be recycled within Scotland or Wales;

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(d) the devolved administrations receive significant trading surpluses from the commercial exploitation of publicly-funded assets: the UK Government may take these surpluses into account in settling block budgets;

(e) local authority self-financed expenditure grows more rapidly than equivalent expenditure in England over a period and in such a way as to threaten targets set for public expenditure as part of the management of the UK economy. In such circumstances it will be open to the UK Government to take the excess into account in considering the level of the block budgets.

9. These principles concern the determination of changes to the block budgets under the control of the Scottish Parliament and the National Assembly for Wales, not the level of Westminster grant to support these budgets. The latter may also be affected by changes in the level of self-financed items of expenditure--local authority capital expenditure funded by borrowing, for example--which currently count towards the block budgets.

In-year changes to the block budgets for Scotland and Wales

10. The arrangements outlined above apply to changes in the plans for expenditure in future years in Scotland and Wales. These paragraphs deal with changes in-year to the budgets arrived at under the arrangements outlined above and in particular with access to the UK Reserve for the devolved Scottish and Welsh administrations.

11. The general presumption, as at present, is that the Scottish and Welsh administrations will contain in-year pressures on their budgets by reallocating priorities within their blocks, not through access to the UK Reserve. Access to the Reserve may however be considered at the discretion of the UK Government in exceptional circumstances and specifically where:

(a) the Government are making available additional provision in-year for equivalent services in England in order to cope with exceptional circumstances affecting the UK as a whole unforeseen at the time spending plans for the year concerned were settled; and

(b) Scotland or Wales face exceptional and unforeseen domestic costs--arising, for example, from a natural disaster--which cannot be reasonably absorbed within the planned block budgets without major dislocation to existing services.

Revising these principles

12. As noted above, the formula will be updated annually to take account of population changes and from time to time to take account of other technical changes. Any more substantial revision would need to be preceded by an in-depth study of relative spending requirements and would be the subject of full consultation between the devolved administrations and the UK Government.

HM Treasury December 1997

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Spending programmes forming part of the Scottish Block


    Domestic agriculture, fisheries and food (after devolution)


    Forestry (after devolution)


    Industry, enterprise and training


    Roads and transport


    Housing


    Other environmental services


    Law, order and protective services


    Education


    Arts and libraries


    Health


    Social work services


    Other public services


    ESF


    ERDF


    Nationalised industries (after devolution)


    Council tax benefit (after devolution)


    Local authority expenditure

Spending programmes forming part of the Welsh Block


    Domestic agriculture (after devolution)


    Forestry (after devolution)


    Health and personal social services


    Transport


    Industry, trade and employment


    Training (excluding ESF)


    Education


    Housing


    Other environmental services


    Arts and libraries


    Local government


    Central administration


    Office of Her Majesty's Chief Inspector of Schools in Wales


    European Regional Development Fund


    Council tax benefit (after devolution)


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