House of Commons Hansard Written Answers for 26 Jul 2000 (pt 27)

Tax Allowances

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer what estimate he has made of the revenue yield for the next five financial years of restricting the value for the purpose of income tax of (a) the personal allowance and (b) age related allowances to the value of the basic rate of income tax; and if he will make a statement. [132271]

Dawn Primarolo: The estimated revenue yield in a full year from restricting the personal allowance to the basic rate would be £2.7 billion in 2000-01. Because of the tapered withdrawal of the age-related personal allowances, there is no relief for them at the higher rate and there would be no Exchequer effect from restricting them.

This estimate is based on the Survey of Personal Incomes and consistent with the March 2000 Budget.

Letter from John Pullinger to Mr. Tom Cox, dated 26 July 2000:

I have been asked to reply to your recent question regarding the number of men and women who have benefited from the introduction of the National Minimum Wage (132107). I am replying in the absence of the National Statistician.

Definitive estimates on the number of people that have been affected by the national minimum wage are not yet available. Currently available estimates for assessing the effect draw on data from both the New Earnings Survey and the Labour Force Survey, and recognise the particular value that each survey adds to the quality and analytical details that can be provided. However, the latest adjusted estimates are mainly based on data for the Spring (March - May) 1999 Labour Force Survey. The reference period spans the implementation date for the National Minimum Wage Act on 1 April 1999. This means adjusted estimates are unlikely accurately to measure the effect of this legislation since there are employees who could have been earning below the minimum wage rates in March 1999, before the law took effect.

The currently available estimates for March - May 1999 were published in an Office for National Statistics (ONS) First Release on 14 October 1999 and show that the number of people earning below the minimum wage rates set in April 1999 had fallen significantly between 1998 and 1999. A copy of this first release is available in the House of Commons Library.

Pesticides Tax

Mr. Alan Simpson: To ask the Chancellor of the Exchequer, pursuant to his answer of 21 June 2000,

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Official Report, column 215-16W, on pesticides tax, if he will list each of the meetings held with organisations named in the question. [132313]

Mr. Timms: I have had a number of meetings with interested parties, including industry representatives and the RSPB. In addition, I have read a number of written representations.

Government Borrowing

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer if he has revised his plans for announcements concerning debt management as referred to in his written answer of 12 June 2000, Official Report, column 462W; and if he will make a statement. [132250]

Miss Melanie Johnson: There have been no subsequent changes to the Government's financing remit since the statement of 12 June.

Fuel Duty

Mr. Brake: To ask the Chancellor of the Exchequer, pursuant to his answer of 17 July 2000, Official Report, column 99W, concerning payment of duty on fuel products at the terminal instead of the point at which they leave the refinery, if he will carry out a strategic environmental appraisal of this policy. [132644]

Mr. Timms: The potential environmental impact is only one consideration of this policy. Any change would also impact on revenue flow, Customs resources and accounting systems and revenue security. There are no plans to review the policy.

Aggregates Tax

Mr. Fearn: To ask the Chancellor of the Exchequer what assessment he has made of the effect on employment in coastal areas of the introduction of the proposed aggregates tax. [132493]

Mr. Timms: All of the revenues raised from the levy will be recycled back to business through a cut in employer National Insurance contributions (NICs) and a new 'Sustainability Fund' aimed at delivering local environmental benefits. It is not possible to say precisely what the effect of the levy, the cut in employer NICs and the Sustainability Fund will be on the aggregates and construction industries, since this will depend, among other things, on future employment trends and the degree to which firms switch to recycled materials.

Mr. Rogers: To ask the Chancellor of the Exchequer what the principal objectives are of the proposed aggregates tax. [132431]

Mr. Timms: The main objective of the aggregates levy is to bring about environmental benefits by making the price of aggregates better reflect their true environmental costs, and encouraging the use of recycled aggregates.

In addition, some of the revenues from the levy will be used for the new 'Sustainability Fund' aimed at delivering local environmental benefits to areas subject to the environmental costs of aggregates extraction. The Government will be consulting shortly on how this fund can best be used.

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Audit and Accountability Steering Group

Ms Walley: To ask the Chancellor of the Exchequer if the central Government Audit and Accountability Steering Group will have objectives relating to environmental sustainability; and if there are members of the Steering Group with expertise in environmental sustainability. [132572]

Mr. Timms: The terms of reference for the review by Lord Sharman of central Government audit and accountability have not yet been discussed by the Steering Group. The members of the Steering Group include a former senior official of the Department of the Environment, Transport and the Regions.

Spending Review

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer, pursuant to his oral statement of 18 July 2000, Official Report, columns 219-29, when he will publish full public service agreements for all departments; and if he will make a statement. [132677]

Mr. Andrew Smith: I plan to do so on 28 July.

Disabled Persons Tax Credit

Mr. Willetts: To ask the Chancellor of the Exchequer if it is his policy that, when the Disabled Persons Tax Credit is replaced in 2003, the Employment Tax Credit will be paid to childless disabled people. [132697]

Dawn Primarolo: Final decisions on the precise details of the ETC will be taken nearer the time of its introduction. When the new credits are introduced in 2003 payments to the working disabled will continue to be made to both those with and without children.

Correspondence

Mr. Barry Jones: To ask the Chancellor of the Exchequer when he proposes to reply to the letter of 4 April, sent by the right hon. Member for Alyn and Deeside, concerning Mr. Marguson of Deeside. [133131]

Mr. Timms: There is no record of this letter having been received. If my right hon. Friend would send a copy to me it will be dealt with as soon as possible.

Mr. Barry Jones: To ask the Chancellor of the Exchequer (1) when he proposes to answer the letter of the right hon. Member for Alyn and Deeside, of 6 June, concerning Mr. Collard of Deeside, Flintshire; [133132]

Mr. Timms: I have already done so.

Euro

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer (1) which studies his Department has (a) commissioned, (b) reviewed and (c) undertaken that examine the cost to (i) UK businesses and (ii) euro zone business of preparing for introduction of the euro; and if he will make a statement; [132901]

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(a)

(b)

(c)

Miss Melanie Johnson: The Treasury has neither commissioned nor undertaken studies of this nature. The cost of a changeover would depend on the overall approach taken and the decisions made by individual businesses.

ENTRUST

Mr. Baker: To ask the Chancellor of the Exchequer what steps he is taking to ensure best use of public money by ENTRUST. [131666]

Mr. Timms: ENTRUST does not determine where funds generated through the landfill tax credit scheme are spent. The Government are keen to promote more spending of contributions on recycling and re-use, particularly the recycling of household waste. The Government set out in the Waste Strategy 2000 ways in which they hope to achieve this and intend to consult interested parties on these proposals.

Mr. Baker: To ask the Chancellor of the Exchequer what recent assessment he has made of the (a) efficiency and (b) funding distribution policies of ENTRUST. [131665]

Mr. Timms: Funds are donated by landfill site operators to environmental bodies. ENTRUST has no part in deciding which projects receive funding. The landfill tax legislation sets out the broad categories of environmental projects that can qualify for funding.

As the regulator of the landfill tax credit scheme, it is ENTRUST's job to ensure that the money is properly spent by qualifying environmental bodies in ways governed by the landfill tax regulations, and that no direct benefit passes to the contributors. HM Customs and Excise, which audits ENTRUST's performance to ensure that it meets an acceptable standard, is satisfied that ENTRUST has appropriate systems in place to identify abuses and revoke the approval of non-compliant bodies.

Mr. Baker: To ask the Chancellor of the Exchequer if he will make it his policy to abolish ENTRUST and redirect landfill tax moneys to local authorities. [131667]

Mr. Timms: No. The Government have set out in the Waste Strategy 2000 that they will explore options for amending the landfill tax credit scheme to contribute more to the objective of increased recycling, including helping local authorities to raise recycling levels.

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