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Government Departments: Assets of Cultural Significance
Lord Freyberg asked Her Majesty's Government:
- Further to the Written Answer by Lord McIntosh on 18 March (WA 124), whether they will give a full breakdown of all the assets of cultural significance held by each government department listed in the National Asset Register; and[HL3559]
Whether they will list and provide valuations for the "250 items of furniture; fittings and artefacts classified as antiques" described in the entry for the Chancellor of the Exchequer's Departments in the National Asset Register.[HL3560]
Lord McIntosh of Haringey: Government departments hold various assets of cultural significance which are summarised in the National Asset Register. Each department is required separately to identify heritage assets in the National Asset Register and provide a summary of them.
A full list of individual heritage assets is not held centrally. It would be impractical to do so. Further information on departmental assets is available from resource accounts.
Lord Freyberg asked Her Majesty's Government:
- Whether the Treasury consulted independent expert advice before drawing up the inventory of 250 antiques which was given to W & FC Bonham & Sons for valuation.[HL3561]
Lord McIntosh of Haringey: Independent expert advice on the preparation of the Treasury's inventory was provided by Bonhams. However, on the question of auction I refer the noble Lord to an Answer in the House on 29 October (Official Report, col. 1175).
Lord Freyberg asked Her Majesty's Government:
- Whether they consider that objects which are of small monetary value can be of great historical and heritage significance; and, if so, whether it is appropriate for the Government to evaluate the heritage assets they hold in financial terms. [HL3562]
Baroness Anelay of St Johns asked Her Majesty's Government:
- Whether government departments are required to seek independent, expert advice before identifying the heritage assets that are subsequently recorded in the National Asset Register. [HL3657]
Lord Freyberg asked Her Majesty's Government:
- Why the Treasury's policy on non-operational heritage assets differs from that of the Lord Chancellor's Department, which does not "capitalise non-operational antiques such as painting and works of art" (HC Deb, 9 November 2001, 487W). [HL3601]
Lord McIntosh of Haringey: All government departments decide what to capitalise on the basis of accounting policies set out in the Resource Accounting Manual (RAM). These policies follow advice from an independent statutory body, the Financial Reporting Advisory Board (FRAB). A copy of the Resource Accounting Manual is available in the Library of the House and on the Internet.
The Government agree that certain assets can be of considerable cultural and heritage significance. That is why the Government's accounting framework gives detailed guidance on how heritage assets should be accounted for. This makes it clear that heritage assets should generally appear in departments' balance sheets, both for transparency reasons and to encourage good stewardship of assets by the owner entity.
However, departments are permitted not to capitalise or value non-operational heritage assets where, because of their special characteristics, valuing them may not be practicable or appropriate. This would apply where the cost of obtaining a valuation outweighs the benefits or where it is impossible to establish a sufficiently reliable valuation. Consequently, departments need not value paintings and works of art within heritage collections.
It is typically the entity holding the assets which is solely competent to decide which are heritage assets. Departments are therefore required to attest annually to the ongoing heritage credentials of their heritage assets. In doing so they are free, but not obliged, to seek expert independent advice. The balance sheet treatment of all assets is subject to validation independently through the audit process.
Lord Freyberg asked Her Majesty's Government:
- Whether they will review valuations policy in light of the two lots of silver that were auctioned by W & FC Bonham & Sons on 30 October 2001, which sold for well over twice their highest pre-sale estimates.[HL3563]
Lord McIntosh of Haringey: Divergence between a valuer's estimate of the value of a particular item and its actual sale price is not unusual, especially in a case where the interest of buyers has been enhanced by media attention.
Baroness Anelay of St Johns asked Her Majesty's Government:
- What are the "small number of antiques to the value of £3,000" that were disposed of by the National Investment and Loans Office during 2000–01, as mentioned on page 645 of the National Asset Register.[HL3654]
Lord McIntosh of Haringey: NILO initiated the disposals following an office move: £3,000 of surplus antique furniture—chairs, tables and a document cabinet—were sold by Hamptons Fine Art Auctioneers in 2000–01.
Baroness Anelay of St Johns asked Her Majesty's Government:
- Whether the Bank of England holds no assets which could be considered as items of national heritage. [HL3655]
Lord McIntosh of Haringey: The Bank of England operates independently of government. Her Majesty's Government do not hold any information on its asset holdings beyond that listed in the National Asset Register (page 616) which was itself computed from book values entered in the published accounts of the Bank.
Baroness Anelay of St Johns asked Her Majesty's Government:
- Further to the Answer by Lord McIntosh of Haringey on 25 October 2001 (Official Report col. 1102) that "it has been decided not to sell items valued at over £1 million with the greatest historical and heritage significance", whether they own any items of heritage significance valued at over £1 million; and, if so, whether they will list them. [HL3656]
Lord McIntosh of Haringey: The Treasury owns no single item valued at over £1 million. My previous Answer referred to several separate items whose total estimated value is £1.05 million. These items were a set of 12 silver candlesticks (value £600,000) and three James II Treasury inkstands (£450,000).
Lord Freyberg asked Her Majesty's Government:
- What is the policy of the Inland Revenue on reducing its heritage assets following the introduction of resource accounting and budgeting; and[HL3672]
Whether the Inland Revenue and Valuation Office Agency have changed their policy on reducing the heritage assets following the introduction of resource accounting and budgeting and the transfer of land and buildings to the private sector under a public private partnership project.[HL3674]
Lord McIntosh of Haringey: The heritage assets of the Inland Revenue and Valuation Office Agency have not been transferred to the private sector. No land and buildings held by the Inland Revenue either before or after the transfer of the estate to the private sector were held as heritage assets.
The Inland Revenue and Valuation Office Agency do not have a policy to reduce the level of heritage assets held.
Organic and Non-fossil Fuels: Duty
The Earl of Mar and Kellie asked Her Majesty's Government:
- Whether duty other than VAT can be charged on organic and non-fossil fuels; whether such duty is charged in other European Union member states such as Germany; and whether they would consider it appropriate to charge such duty in the United Kingdom.[HL3602]
Lord McIntosh of Haringey: The European Directive on mineral oils duties structures requires organic and non-fossil fuels used as road fuels to be taxed at the same rate as the mineral oil for which they are substituting. The UK already charges excise duty on organic and non-fossil fuels for use as a road fuel but, where it judges there are sound environmental reasons for doing so, it takes advantage of the option of derogation to introduce duty incentives to promote the development and use of alternative fuels. For example, in Budget 2001 the Government announced a new lower rate of duty for biodiesel, to be set at 20p per litre lower than mineral diesel from later this year. In Pre-Budget Report 2001, the Government announced excise duty exemptions for pilot projects involving biogas, hydrogen and methanol.
Other member states are also subject to the same requirements as the UK but similarly are free to seek derogations from the European directive on mineral oils duties structures to apply lower rates of duty or exemptions for organic and non-fossil fuels.
Voluntary Sporting Clubs: Taxation
Lord Smith of Leigh asked Her Majesty's Government:
- What plans they have to reduce the burden of taxation and other regulations on voluntary sporting clubs. [HL3605]
Lord McIntosh of Haringey: The Charity Commission announced in November 2001 that it would recognise as charitable "the promotion of community participation in healthy recreation by the provision of facilities for particular sports"—conferring the full range of charity tax relief. The Promoting Sport in the Community consultation document launched in November 2001 outlined a possible additional tax package and sought views on the best way to support community amateur sports clubs. Decisions will be made as part of the normal Budget process.
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