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You are here: Publications and Records > Commons Publications > Commons Hansard > Bound Volume Hansard - Written Answers
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National Insurance

Mr. Welsh: To ask the Chancellor of the Exchequer if he will estimate the additional revenue to the UK from (a) raising the ceiling on national insurance for employers to £1,000 a week and (b) charging national insurance at a rate of 5 per cent. for earnings over this level. [119969]

Dawn Primarolo: There is no ceiling for employer national insurance contributions.

UK Debt Management Office

Barbara Follett: To ask the Chancellor of the Exchequer when he will publish the UK Debt Management Office's targets for 2000-01. [120349]

Miss Melanie Johnson: The DMO's targets for 2000-01 are set out as follows, together with the outturn against the equivalent targets for 1999-2000. The range of targets has been extended somewhat to reflect the taking over of responsibility by the DMO for Exchequer cash management on 3 April 2000. The DMO is today also publishing its Business Plan for 2000-01. Copies will be placed in the Libraries of the House.


Targets for the Debt Management Office 2000-01
1. To ensure full compliance with the Government's remit for the DMO as set out in the Debt Management Report, within the tolerances and subject to the review triggers notified separately to the Office and consistently with the objectives of monetary policy. [Target fully met in 1999-2000]
2. To ensure that the maximum time taken to issue the results of gilt auctions and structured Treasury Bill tenders does not exceed 40 minutes while achieving complete accuracy. [Target met in 1999-2000, with the exception of the auction in May 1999 when there was an unusually high number of bids]
3. To ensure that the maximum time taken to issue the results of ad hoc Treasury Bill or other tenders does not exceed 15 minutes. [New target]
4. To achieve complete accuracy, within agreed accounting tolerances, in the recording and reporting of transactions through the Debt Management Account, and in delivering

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money (and reconciling payments) to the NLF. [The DMA came into operation in November 1999 since when the targeted requirements have been met]
5. To acknowledge all letters and e-mail inquiries from the public within eight working days and for at least 95 per cent. to be sent a substantive reply within three weeks. [Equivalent target in 1999-2000 fully met]
6. To achieve less than 10 breaches of the Operational Market Notices (excluding any breaches that the Treasury accept were beyond control of the Office). [There was one breach of the gilts Operational Notice in 1999-2000]
7. To ensure that the qualifications that the NAO have made in respect of the GOOA are satisfactorily addressed in the running and presentation of the DMA. [See target 4--The first DMA accounts will not be available until 2001-02]
8. To ensure that the statutory constraint on DMO market borrowing (not to exceed its deposits with the NLF and Bank of England) is always met. [New target]
9. To ensure that, where there is a late change in the forecast, any necessary use of end of day borrowing or lending facilities is notified by the due time. [New target]
10. To achieve a minimum of 99 per cent. (by value) successful settlement of agreed trades on the due date. [New target]
11. To achieve a minimum of 99 per cent. (by value) successful settlement of agreed trades on the due date. [New target]

Central Government Audit

Barbara Follett: To ask the Chancellor of the Exchequer what progress has been made in taking forward the review of central Government audit announced by the Chief Secretary to the Treasury on 28 February. [120482]

Mr. Andrew Smith: I am pleased to announce that Lord Sharman, a former senior partner at KPMG International, has agreed to lead this review. Lord Sharman will report to (as well as being a member of) a Steering Group chaired by the Chief Secretary. Arrangements are being made to provide him with appropriate support. The full membership of the Steering Group will be announced in due course.

Fuel Duty

Sir Brian Mawhinney: To ask the Chancellor of the Exchequer for what reason he raised fuel duty by 3.4 per cent. in his recent budget. [119992]

Mr. Timms: I refer the right hon. Member to the answer I gave to the hon. Member for Angus (Mr. Welsh) on 5 April 2000, Official Report, column 497W.

Departmental Running Costs

Mr. Lansley: To ask the Chancellor of the Exchequer if he will make a statement on the increase in the overall running costs of Government departments. [119962]

Mr. Andrew Smith: The recently published figures for the running costs of Government Departments show that the final spend for 1998-99, the latest year for which final data are available, is £110 million less in cash terms than the previously published estimated outturn for that year.

Spending plans published by the previous Administration were higher overall for the three years 1997-98 to 1999-2000 than this Government have achieved.

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In real terms, administrative expenditure totalled £15,014 million in 1994-95, £14,737 million in 1995-96 and £14,323 million in 1996-97. This Government spent £13,725 million in 1997-98 and £14,003 million in 1998-99--the last year for which final figures are available.

DEFENCE

Royal Fleet Auxiliary

Mr. Hancock: To ask the Secretary of State for Defence (1) when he will let the contracts for the two new Royal Fleet Auxiliary ships; what is his estimate of the cost of the contracts; and if he will make a statement; [118061]

Dr. Moonie: This is a matter for the Chief Executive of the Defence Procurement Agency. I have asked the Chief Executive to write to the hon. Member.

Letter from Robert Warmsley to Mr. Mike Hancock, dated 20 April 2000:


I am replying to your questions to the Secretary of State for Defence about the procurement of two new Royal Fleet Auxiliary ships. I assume that you are referring to the Alternative Landing Ships Logistic (ALSL) Programme. This matter falls within my area of responsibility as Chief of Defence Procurement and Chief Executive of Defence Procurement Agency.
Five UK shipyards have expressed an interest in the ALSL project and each is being invited to tender for their design and build. The five companies are:

Appledore Shipbuilders Ltd.

BAE SYSTEMS Marine Ltd.

Cammell Laird Shipyard

Harland and Wolff Shipbuilding and Heavy Industries Ltd.

Swan Hunter (Tyneside) Ltd.
The contract will be awarded to the shipyard that offers the best whole life value for money.
An invitation to tender (ITT) was issued on 14 April. Contract placement for the design and build of two new ALSLs is planned to occur in late 2000. The estimated cost for the construction of the two vessels is £138M.

Mr. Hancock: To ask the Secretary of State for Defence what foreign yards his Department has contacted with regard to the construction of the two new Royal Fleet Auxiliary ships; and if he will make a statement. [118660]

Dr. Moonie: This is a matter for the Chief Executive of the Defence Procurement Agency. I have asked the Chief Executive to write to the hon. Member.

Letter from Robert Warmsley to Mr. Mike Hancock, dated 20 April 2000:


I am replying to your question to the Secretary of State for Defence about the procurement of two new Royal Fleet Auxiliary ships. I assume that you are referring to the Alternative Landing Ships Logistic (ALSLs) Programme. This matter falls within my area of responsibility as Chief of Defence Procurement and Chief Executive of the Defence Procurement Agency.
No foreign yards have been contacted about the construction of the two ALSLs.

20 Apr 2000 : Column: 640W


ALSLs are classed as "warlike" and will be built in the UK. Five UK shipyards have expressed an interest in the ALSL project and have been invited to tender for design and build.

Naval Procurement (Roll on/Roll off Ferries)

Mr. Quentin Davies: To ask the Secretary of State for Defence what assessment he has made of the effect of his decision to finance the Royal Navy's requirement for roll on/roll off ferries by means of a public private partnership, on the protection of the relevant contracts from the Public Procurement Directive available to military procurement contracts under the Treaty of European Union. [118663]

Mr. Hoon: The Ministry of Defence's requirement for a strategic sealift capability is defined as non-warlike and ships providing the service will not be warships. Rather, they will be commercial standard ro/ros. The competition for the requirement has, therefore, to be conducted under European Community and World Trade Organisation public procurement rules. In such circumstances, a MOD requirement that stipulates that service providers or suppliers provide British built ships would be contrary to our EC obligations prohibiting discrimination on the grounds of nationality.

The requirement to compete in this way is not, therefore, influenced by whether the service is provided through PFI or more traditional procurement methods. We are, of course, doing all we can within the bounds of fair competition to give UK industry the best opportunity to participate in the programme.

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