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Written Answers to Questions
Thursday 22 March 1990
NATIONAL FINANCE
Cocaine
103. Mr. David Porter : To ask the Chancellor of the Exchequer what percentage of seizures of cocaine, in the most recent years for which figures are available, was of cocaine entering the United Kingdom from member states of the European Community.
Mr. Ryder : The information is as follows :
kg
1987 |23.8 |86
1988 |36.4 |101
<1>1989 |62.8 |266
<1> All 1989 figures are provisional.
Personal Sector Debt
Mr. Cohen : To ask the Chancellor of the Exchequer if he will state the amounts by which those in the personal sector were in debt in (a) 1979 and (b) 1989 ; and what proportion in the sector were not in debt at all in both years.
Mr. Ryder : The financial liabilities of the personal sector amounted to £70.9 billion in 1979 and £364.9 billion in 1989. These figures may be found in table 14.5 of "Financial Statistics" or on the CSO database which is accessible through the Library. No information is available on the proportion of those in the sector who were not in debt at all.
European Community Budget Contributions
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what is the net budget contribution of (a) the United Kingdom, (b) France and (c) West Germany to the EEC for 1989 ; what is his estimate for 1990, 1991 and 1992 both in absolute terms and per capita ; and what are his proposals for reducing the British contribution.
Mr. Ryder : The latest published estimate of the United Kingdom's net contribution to the Community budget in 1989, which appeared in the statement on the 1989 Community budget (Cm. 680), is £1,966 million. This figure is the equivalent of £34.43 per capita, on the basis of the estimated United Kingdom population of 57.1 million in 1988 which is contained in the 1990 edition of "Social Trends". A revised estimate of the United Kingdom's net contribution in 1989, and an estimate of the United Kingdom's net contribution in 1990, will be published shortly in the statement on the 1990 Community budget.
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It is not the Government's practice to publish calendar year forecasts for future years ; but the recent public expenditure White Paper (Cm. 1018) provides estimates for the financial years up to and including 1992-93.Comparable figures for other member states' net contributions are not available.
The United Kingdom's contribution to the Community budget is being significantly reduced by the Fontainebleau abatement mechanism. This will have produced a cumulative benefit of some £7.5 billion by the end of 1990.
International Monetary Fund Quotas
Mr. Riddick : To ask the Chancellor of the Exchequer if he will make a statement on the negotiations on the ninth review of the International Monetary Fund quotas.
Mr. Ryder : Discussions are continuing in the International Monetary Fund board, and we very much hope that they can be concluded swiftly. One difficulty which had emerged was how to accommodate the special quota increase that Japan is seeking. The United Kingdom has helped to provide a solution by offering to give up some of its quota share : this enables Japan to move up to second rank in the fund without reducing the quota share of developing countries. Our offer has been widely welcomed. The rankings of the other major countries will be determined in the usual way, according to the quota formulas agreed by the whole International Monetary Fund membership. Taking account of the offer we have made, these formulas would reduce the United Kingdom's quota share from 6.9 per cent. to 6.0 per cent. and would move the United Kingdom to fourth position in the rankings ; we are perfectly ready to accept that result. I hope that the remaining issues, on the overall size of the quota increase and on the problem of arrears on past International Monetary Fund lending, can be resolved soon.
European Currency Unit
Mr. Riddick : To ask the Chancellor of the Exchequer if he will make a statement on the Government's European currency unit Treasury bill programme.
Mr. Ryder : The programme has now reached a total outstanding of 3 billion ecu and we have been able to issue bills at one, three and six- month maturities on very fine terms. In view of this success and the unsatisfied demand which still exists, particularly at longer maturities, we shall be issuing an additional 100 million ecu of six-month bills each month from the April tender. This means an increase in the programme to a total of 3.6 billion ecu of bills outstanding by September--helping to develop the private ecu market in London and demonstrating the practical contribution the United Kingdom is making to greater economic and monetary integration in Europe.
Tax Debts
Mr. Win Griffiths : To ask the Chancellor of the Exchequer how many petitions have been presented by Her Majesty's Inland Revenue against (a) limited companies and (b) individuals to secure the repayment of tax debts in each of the last three years.
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Mr. Lilley [holding answer 20 March 1990] : The number of winding-up and bankruptcy petitions filed in England, Wales and Northern Ireland in each of the last three years is :
1987 |308 |1,415
1988 |277 |2,435
1989 |317 |2,707
The precise equivalent figures for Scotland cannot be ascertained without disproportionate cost, but do not exceed 20 companies and 70 individuals for any of those years.
Civil Service Pensions
Mr. Win Griffiths : To ask the Chancellor of the Exchequer what is the value at current prices of the average pension received by civil servants on their retirement in (a) 1979 and (b) 1969.
Mr. Ryder [holding answer 20 March 1990] : I regret that directly comparable figures are not available. But, on the basis of information to hand, the value at current prices of the average pension received by civil servants who retired in 1979 is £2,614 ; for those who retired in 1969 it is £2,213. These figures include increases paid under the provisions of the Pensions (Increase) Act 1971 (as amended).
Inland Revenue Staff
Mr. Wallace : To ask the Chancellor of the Exchequer how many people staff the Inland Revenue survey of personal incomes.
Mr. Lilley [holding answer 20 March 1990] : The full-time equivalent of some 25 people, including about 10 in tax offices.
TRANSPORT
Tyre Treads
Mr. Mills : To ask the Secretary of State for Transport if he will make a statement on the consultation process on the European Economic Community proposals for a change in tyre tread depth regulations.
Mr. Atkins : The Department's consultation on draft regulations to introduce the mandatory tread depth requirements in Community directive 89/459/EEC from 1 January 1992 has been completed. A statutory instrument amending the Construction and Use Regulations will be laid before the House shortly.
Advertising Expenditure
Mr. Cohen : To ask the Secretary of State for Transport what was the total publicity and advertising expenditure, including for privatisation, of his Department and public bodies for which his Department has responsibility in (a) 1979 and (b) 1989.
Mr. Atkins : The total publicity and advertising expenditure, including for privatisation, of my
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Department and the non-departmental public bodies for which my Department is responsible, in the financial years 1979- 80 and 1989-90 is as follows :
1979-80 |5,840,000
1989-90 |6,434,000
The expenditure by my Department is recorded in financial years, not calendar years.
Headington Roundabout
Mr. Andrew Smith : To ask the Secretary of State for Transport what representations he has received on his Department's interim proposals for the Green road roundabout, Headington, Oxford.
Mr. Atkins : My Department has received representations from Oxfordshire county council which are now being considered. These concern the consideration of the possible need for a footbridge.
Mr. Andrew Smith : To ask the Secretary of State for Transport according to what criteria his Department's proposals for a bus lane from Green road roundabout, Headington, Oxford, extending as far as Collinwood road, were decided.
Mr. Atkins : The westbound carriageway of the A40 between the Headington roundabout and Collinwood road is subject to serious traffic delays. Provision of a bus lane would enable buses to overtake queueing traffic.
Mr. Andrew Smith : To ask the Secretary of State for Transport if he will consider establishing a bus lane from Green road roundabout, Headington, Oxford, to Thornhill park and ride car park.
Mr. Atkins : We have no present plans to extend the bus lane beyond Collinwood road. The indications are that the cost would outweigh any benefits.
Heavy Vehicles
Mr. Brandon-Bravo : To ask the Secretary of State for Transport what is the Government's policy on emissions from heavy diesel engined vehicles ; and if he will make a statement.
Mr. Atkins : My right hon. Friend the Secretary of State for the Environment is today urging the European Commission at the Environment Council to make proposals to introduce tighter controls on gaseous emissions from heavy diesels and to set limits for the first time for particulate emissions from these vehicles. The Government regard these proposals as long overdue.
Diesel emissions, in the form of oxides of nitrogen and particulates, are a significant cause of pollution and loss of amenity. Oxides of nitrogen (NOx) can damage plants and crops, as well as affect human health. Diesel particulates cause soiled buildings and discomfort to pedestrians and other road users. The Government believe that the Community's long-term aim should be to set a mid-1990s diesel standard based as closely as possible on the US 1994 standard, both in limit values and test procedure. This is the strictest of all the diesel emission standards being considered worldwide.
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In particular, it would afford substantial reductions in the amount of NOx and particulates that new vehicles may emit. I strongly support early action towards setting these tougher standards.ENERGY
Electricity
Mr. Morgan : To ask the Secretary of State for Energy what is his estimate of the weighted average increase in domestic electricity prices in the 12 electricity board areas of England and Wales in the year commencing 1 April 1990.
Mr. Baldry : Electricity prices are a matter for the industry, but I understand that the weighted average increase in domestic tariffs in England and Wales for 1990-91 is 9.2 per cent.
Privatisation
Mr. Dobson : To ask the Secretary of State for Energy how much was paid in fees to the organisations listed in his answer of 13 March, Official Report, columns 141-44.
Mr. Wakeham : It is not the practice of Her Majesty's Government to publish the sums paid to individual advisers or contractors in a privatisation.
France (Nuclear Safety)
Mr. Flynn : To ask the Secretary of State for Energy if he will make it his policy to obtain from the French nuclear safety authorities the report, "Nuclear Safety at Elecricite de France (EDF)," at the end of 1989, by the chief inspector for nuclear safety at EDF ; and if he will seek an early meeting with the head of nuclear safety in France and his French counterpart to discuss nuclear safety.
Mr. Baldry : Both my Department and the Health and Safety Executive's nuclear installations inspectorate have copies of the report. There are continuing and regular contacts between my officials and the inspectorate's and their French counterparts to discuss matters of mutual interest.
Alternative Energy
Mr. Speller : To ask the Secretary of State for Energy if his Department has considered an application for an exhibition relating to alternative energy to be displayed in the Upper Waiting Hall.
Mr. Peter Morrison : I understand that, under procedures agreed by the Services Committee, arrangements have been made with the authorities of the House for the exhibition to be held in the Upper Waiting Hall from 4 to 8 June.
Electricity Privatisation
Mr. Thurnham : To ask the Secretary of State for Energy what estimate he has made of the likely impact of privatisation on electricity prices ; and if he will make a statement.
Mr. Wakeham [pursuant to his reply, 18 December 1989, c. 1-3] : As previously announced, the average
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increase in electricity prices for all customers will be less than 6 per cent. this year. The Government have now agreed the controls on future price increases that will apply to the area electricity supply companies.For customers taking less than 1 MW, the final price will increase by an average of some 9 per cent. this year. The price controls agreed should prevent any further real increase to these customers until April 1993.
Customers taking more than 1 MW are able to seek competing bids for supply. To allow time for these customers to negotiate contracts, the electricity industry has agreed to offer them a price freeze in real terms for one year. However, many of these customers will experience real reductions in price this year.
These controls apply to the final price paid by customers. But in future the price will be made up of a number of different elements : the price for generating electricity in power stations ; the charge for transmitting it across the national grid ; the price for distributing it over the area electricity companies' local networks ; the area supply company's margin ; and the fossil fuel levy. The area supply companies have a monopoly on distribution and the National Grid Company has a monopoly on transmission. Their charges therefore need to be separately regulated within the overall controls on final prices to customers. Transmission and distribution respectively make up about 10 per cent. and 20 per cent. of the final price to customers.
The price control applying to the National Grid Company will prevent its prices from rising by faster than the RPI. Increases in charges for transmission will therefore be held at or below the rate of inflation.
The price control applying to the 12 area supply companies will prevent the charges for distribution from rising by more than RPI X, where X ranges between the different companies from 0 to 2.5, with a weighted average of 1.1, as follows :
Within the overall cap on final prices, charges for distribution may therefore rise on average by just 1.1 percentage point faster than inflation. This will allow investment of some £5 billion to be made in the capital-intensive distribution network to ensure the high standards of security are maintained. The area supply companies' price control will also prevent their supply margins from rising faster than inflation.
Altogether, this package will protect the smaller customer from real price increases, and enable larger customers to benefit from competition. Within the overall price controls, the area supply companies and National Grid Company will be able to charge a price that enables them to finance the investment required.
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PRIME MINISTER
Fishing
Q63. Dr. Godman : To ask the Prime Minister what recent representations she has received concerning the present economic circumstances of the catching section of the fishing industry ; and if she will make a statement.
The Prime Minister : The Government are well aware of the current difficulties facing the fishing industry, but between 1983 and 1988 the value of landings increased by over 40 per cent. There is an urgent need to work for effective conservation of fish on a Communitywide basis and to adopt improved quota management measures which will bring fishing capacity more closely into line with available opportunities.
South Africa
Q133. Mr. Hunter : To ask the Prime Minister if she will make a further statement on her policy towards South African political organisations which continue to advocate the use of violence.
The Prime Minister : We are stongly opposed to the use of violence for political ends in South Africa as elsewhere. We have repeatedly urged South African political organisations to enter negotiations in the context of a suspension of violence on all sides.
European Council
Mr. Teddy Taylor : To ask the Prime Minister if she will urge at the next meeting of the European Council clarification of the extent to which the single market arrangements are proceeding ; and if she will make a statement.
The Prime Minister : Arrangements for the completion of the single European market are proceeding very well. Almost 60 per cent. of the legislation programme is now complete, including a number of important and contentious issues such as the liberalisation of capital movements, the mutual recognition of professional qualifications, and the mergers regulation.
The Irish presidency is maintaining the political momentum, and reached agreement at the Internal Market Council on 22 February to extend public purchasing rules to the energy, telecommunications, water and transport sectors.
Mr. Teddy Taylor : To ask the Prime Minister if she will invite the next meeting of the European Council to review the structure of contributions by member states ; and if she will make a statement.
The Prime Minister : No. The review of the Community's finances concluded at the European Council in Brussels on 11 to 13 February 1988 confirmed the arrangements for abating the United Kingdom's contributions. The Fontainebleau mechanism remains totally intact and it will last as long as the new own resources arrangements. Our cumulative benefit from the Fontainebleau mechanism will be some £7.5 billion by the end of 1990.
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East Germany
Mr. Austin Mitchell : To ask the Prime Minister what
representations she has made to Chancellor Kohl about his proposal that West Germany should use its trade surplus to invest in East Germany ; and how great she estimates Britain's contribution will be to rebuilding East Germany for 1990 if the process is financed on that basis.
The Prime Minister : The financing of the rebuilding of East Germany is a matter for the German authorities and individual companies, both in Germany and elsewhere.
Community Charge
Mr. Latham : To ask the Prime Minister whether Her Majesty's Government have yet completed their review of the possibility of community charge-capping any local authorities ; and if she will make a statement.
The Prime Minister : My right hon. Friend the Secretary of State for the Environment is currently considering the information which he has about local authorities' budgets. When he has completed his consideration he will announce to the House any decisions to cap authorities.
Romanian Children
Mr. Andrew Smith : To ask the Prime Minister what are the interdepartmental procedures operated by the Foreign and Commonwealth Office, the Home Office and the Department of Health for co-ordinating the issuing of visas in respect of Romanian children adopted by United Kingdom citizens ; if she will review these procedures to improve their efficiency ; and what are the criteria applied when considering such visa applications.
The Prime Minister : When an application is made to bring to the United Kingdom a child who has been adopted abroad or who is coming here for adoption, the entry clearance officer first makes inquiries into the child's circumstances overseas and the circumstances in which the child became available for adoption. The application is then referred to the Home Office, which seeks advice from the Department of Health on the health and welfare aspects of the case before reaching a decision. The main consideration is whether the proposed adoption is in the child's best interests. Every effort is made to ensure that the necessary inquiries are completed as quickly as possible.
Nuclear Test Treaties
Mr. Flynn : To ask the Prime Minister if she will make it her policy, when she meets President Bush on 13 April in Bermuda, to raise (a) the forthcoming fourth review conference of the nuclear non-proliferation treaty, (b) the forthcoming amendment conference of the 1963 partial test ban treaty and (c) the development of a common policy position by the three depository states for the non-proliferation treaty, for membership of the treaty of a united Germany.
The Prime Minister : I do not expect that these subjects will be considered in any detail.
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Engagements
Mr. Skinner : To ask the Prime Minister if she will list her official engagements for Thursday 22 March.
Mr. Stern : To ask the Prime Minister if she will list her official engagements for Thursday 22 March.
Mr. Harry Greenway : To ask the Prime Minister if she will list her official engagements for Thursday 22 March.
The Prime Minister : This morning I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in the House I shall be having further meetings later today. This evening I shall be speaking at a dinner given by the Royal Society, along with the Prime Ministers of Norway and Sweden, to conclude the last conference on surface water acidification.
TRADE AND INDUSTRY
Audit Policy
Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry whether, at any time since June 1979, any Minister from his Department has publicly called upon auditing firms to publish annual reports and accounts.
Mr. Redwood : Not so far as I am aware.
Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry what is his policy on following through decisions of the joint disciplinary scheme on matters referred by him to the Institute of Chartered Accountants.
Mr. Redwood : The outcome of a complaint referred by my Department to any of the professional accountancy bodies, whether or not it is subsequently referred to the joint disciplinary scheme, is noted and such action is taken as is appropriate.
Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry whether he will seek to amend the Companies Act to require each set of annual accounts prepared in accordance with the historical cost convention to carry a statement that these accounts do not show realistic values of assets and may therefore be misleading.
Mr. Redwood : No. Understanding figures in company accounts will always depend on understanding the conventions by which the accounts were prepared. It is inherent in accounts prepared under the historical cost accounting rules, as required by the Companies Act 1985 (unless the alternative accounting rules are used), that assets are carried at historical cost less depreciation.
Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry whether his Department has any plans to legislate to require auditors of all large companies to examine the chairman's report.
Mr. Redwood : I refer the hon. Member to the reply I gave to his question on 12 March, at column 43.
Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry whether his Department has any plans to require company auditors at annual general meetings to give details of the audit teams used on audits of companies.
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Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry whether his Department plans to make any recommendations to companies on the accounting treatment of financial futures.
Mr. Redwood : No. This issue is being considered by the accounting profession and my Department is watching developments closely.
Mergers
Mr. Austin Mitchell : To ask the Secretary of State for Trade and Industry whether he will make a statement on his Department's policy on mergers between major auditing firms.
Mr. Redwood : My Department's policy on mergers remains as set out in the Blue Paper published in 1988 entitled "Mergers Policy"--that the main consideration in deciding whether to refer a merger or proposed merger to the Monopolies and Mergers Commission should be the effect on competition in the United Kingdom. This applies equally to mergers between auditing firms as to any other mergers.
Insolvency Service
Mr. Charles Wardle : To ask the Secretary of State for Trade and Industry what plans he has to launch the Insolvency Service as an executive agency.
Mr. Ridley : I established the Insolvency Service as an executive agency on 21 March.
I expect the Insolvency Service, as an executive agency, to continue to bring proceedings for the disqualification of directors of failed companies in appropriate cases, to submit prosecution reports where there is evidence of criminal behaviour and to administer bankruptcies and compulsory liquidations in an increasingly effective manner.
I have also set the Insolvency Service the following productivity and quality of service targets for 1990-91 :
to increase productivity in case administration by at least 8 per cent. ;
to complete the administration of at least 13,600 cases ; to report to creditors on assets and liabilities within nine weeks in at least 60 per cent. of all cases ;
to hold meetings of creditors within 12 weeks in at least 90 per cent. of cases ;
to submit reports within 10 months in at least 80 per cent. of cases identified for investigation ;
to action at least 93 per cent. of payment requisitions within 10 days or by the due date.
Additionally, the Insolvency Service will be required to reduce in real terms the average unit cost of the initial stage of bankruptcies and liquidations by at least 5 per cent. over the next three years. I have arranged for the framework document for the new agency to be placed in the Library of both Houses.
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