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Working Families' Tax Credit

Lord Burlison asked the Chancellor of the Exchequer:

Lord McIntosh of Haringey: Compliance statistics for the nine months to 31 December 2001 show an increased effectiveness in the Inland Revenue's compliance programme. Of the 16,016 inquiries completed in this period, 5,427 cases (34 per cent) were found to contain discrepancies and these produced a compliance yield of £10.4 million.

I very much regret having to report that the Inland Revenue has advised me that some previous statistics relating to tax credit compliance have proved to be incorrect or incomplete. The correct equivalent figures for the year ended 31 March 2001 are that, of the 31,211 inquiries completed in that year, 5,573 cases (18 per cent) were found to contain discrepancies producing a compliance yield of £7.7 million.

26 Mar 2002 : Column WA39

These errors in the Inland Revenue's tax credit statistics have also resulted in incorrect information being given in responses to some Written Parliamentary Questions, in letters to honourable Members and during debates. I am writing to the Members concerned correcting errors and I will place a copy of the letters in the Libraries of both Houses.

Pre-Budget Report: Measures for Business

Lord Berkeley asked Her Majesty's Government:

    Whether they will give further details on measures for business in relation to the Pre-Budget Report in November 2001.[HL3549]

Lord McIntosh of Haringey: As announced in the Pre-Budget Report in November 2001 and following consultation with business, the new corporation tax regime for substantial shareholdings will apply for disposals on or after 1 April 2002; the new corporation tax regime for intangible assets will also apply with effect from 1 April 2002.

In addition, the Government are also proceeding with the new tax credit to encourage research and development by large companies which will apply from 1 April 2002. The credit will follow a simple volume based approach, final details of which will be announced in the Budget.

Technical details of these measures will be published today and will be available to Peers from the Printed Paper Office.

Customs and Excise: Prosecuting Authority Role

Lord Merlyn-Rees asked Her Majesty's Government:

    What progress has been made in implementing the recommendations made by His Honour John Gower QC and Sir Anthony Hammond KCB QC in their report on prosecutions conducted by the Solicitors Office of HM Customs and Excise.[HL3512]

The Attorney-General (Lord Goldsmith): In the Parliamentary Answer given by the then Attorney-General on 12 March 2001 (col WA 68) he announced that the Government had accepted all the recommendations in principle but had opted for a phased approach to implementation.

Since that announcement, the Prosecutions Group of the Solicitors Office has forged ahead with a rapid programme of change to enable it to deliver legal services of a high quality in a responsive and flexible way. New managers and staff have been recruited, the organisation has been restructured and working practices are being reformed.

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The Parliamentary Answer also referred to accountability for the prosecutions function moving from the commissioners to the Attorney-General on 1 April 2002.

Final agreement has not yet been reached on the implementation of Recommendation 4 of the Gower/Hammond recommendations which recommends that in relation to the prosecution function the solicitor for the Customs and Excise should not be funded by the commissioners but should have his own ring-fenced budget and be accountable for his own expenditure.

This recommendation is accepted in principle by the Government but there are technical issues relating to the estalishment of a separate vote which require further time to resolve. The Government are committed to the full implementation of Recommendation 4 no later than 1 April 2003, but in the meantime the Prosecutions Group budget will remain as part of the Customs and Excise vote, though it will be separately identified and managed by the solicitor for the Customs and Excise and financial accounts reports will be produced as if that budget had been established as a separate vote.

As a consequence of these revised arrangements, the Attorney-General will not assume full accountability for the prosecutions function from 1 April. Instead, from that date the following arrangements will apply:


    (1) The commissioners (and Treasury Ministers) will be responsible for and accountable to Parliament for: anything done in the course of an investigation; enforcement policy, including the resources to be deployed; prosecution policy, ie the seriousness with which offences should in general be treated and wider issues of departmental policy such as the disclosure of informants; decisions on alternatives to prosecution such as compounding, civil evasion action etc.


    (2) The Law Officers will be responsible for and accountable to Parliament for: the quality of legal advice given by investigation legal advisers; the quality of the Prosecutions Group casework decision-making in relation to cases referred to that group for prosecution; the application (the Prosecutions Group having consulted with Customs administrators, as appropriate) of prosecutions policy and public interest factors to individual defendants in cases referred to the Prosecutions Group for prosecution.

Inspection of the Prosecutions Group by the CPS Inspectorate will commence on 1 April 2002, and the Prosecutions Group will proceed with the trials referred to in the previous Parliamentary Answer.

The Government are satisfied that the arrangements that will apply from 1 April strengthen the involvement of the Attorney-General with the difficult and complex criminal casework conducted by the Solicitors Office, maintain the momentum of change that has been established and preserve an appropriate position on parliamentary accountability. maria

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Cefn Croes: Proposed Wind Power Station

Lord Carlile of Berriew asked Her Majesty's Government:

    Whether they will institute an inquiry into the nature, extent and impact of lobbying by the developers of the proposed wind power station at Cefn Croes, Ceredigion, of members of the Ceredigion Council Planning Committee.[HL3327]

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville): No. If there was any suggestions of impropriety then this would properly be a matter for the Local Government Ombudsman to look into.

Broadband Services

The Earl of Northesk asked Her Majesty's Government:

    What progress is being made in their strategies to make it easier to access broadband services.[HL3449]

Lord Sainsbury of Turville: The UK Online annual report, published in December 2001, detailed progress towards our broadband targets. Broadband services in the UK had continued to develop over the year, and 60 to 65 per cent of the country is now covered by an affordable broadband technology.

Progress is being made by industry and government. Last year we announced a £30 million fund to encourage broadband roll-out in each region of the country, last week we set out how that money would be spent in each region and earlier this month the Government welcomed BT's announcement that they were looking to reduce wholesale prices for broadband.

Sector Skills Councils

Baroness Blatch asked Her Majesty's Government:

    Whether they have plans for setting up sector skills councils; and, if so, when.[HL3320]

The Parliamentary Under-Secretary of State, Department for Education and Skills (Baroness Ashton of Upholland): We announced our intention to license sector skills councils (SSCs) in October 2001. Five trailblazer SSCs were announced in December. The new Sector Skills Development Agency (SSDA) will shortly invite employers to bring forward expressions of interest to form SSCs for their sectors. Expressions of interest will be assessed by the SSDA against the criteria detailed in the SSC development guide published in December. Successful sectors will receive funding to develop a full proposal within six months. The SSDA will recommend licences for those sectors whose proposals meet the SSC standard. To ensure that only those sectors where there is strong employer leadership and demand for a SSC come forward, there is no time limit by when employers must submit an expression of interest. maria

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Pupils Taking GCSEs Early

Baroness Blatch asked Her Majesty's Government:

    What criteria would be used to allow pupils to take GCSEs early to pursue more advanced studies:


    (a) if they are in a school with a sixth form;


    (b) if they are in a school without a sixth form.[HL3350]

Baroness Ashton of Upholland: All pupils who take GCSEs early will need clear routes for progression in their learning. The range and type of opportunities for progression will vary according to circumstances. The Green Paper 14-19: extending opportunities, raising standards notes the significance of institutional collaboration in the use of facilities and teaching staff; highlights the potential of ICT and interactive learning and of the Academy for Gifted and Talented Youth; and recognises the implications for teacher training and development. The Green Paper confirms that further guidance and support materials will be developed.


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