HC Deb 21 February 1977 vol 926 cc496-8W
Mr. Michael Latham

asked the Secretary of State for the Environment what is the specific nature of the proposals made to him by the Construction Exports Advisory Board about the effect of tax laws on construction exporting.

Mr. Freeson

The Construction Exports Advisory Board's recommendations to my right hon. Friends the Secretary of State for the Environment and the Secretary of State for Trade are aimed at encouraging more people in the construction industry to seek work abroad. The Board's proposals on the taxation of the foreign earnings of employees are similar to those announced recently by the Inland Revenue, but go beyond them by recommending a graduated scale of special deductions between 25 per cent. and 100 per cent. based on the time the employee spends abroad. The Board also makes proposals to extend similar tax reliefs to professional partners working overseas and to alleviate the difficulties which professional partnerships face in financing their operations in export markets. My right hon. Friends have passed the Board's recommendations to our right hon. Friend the Chancellor of the Exchequer.

Mr. Michael Latham

asked the Secretary of State for the Environment (1) whether he will place in the Library a copy of the report which he has received from the Construction Exports Advisory Board, described in the Minister of Housing and Construction's reply to the hon. Member for Ilford, South (Mr. Shaw) on 27th January; and whether he will give details of the reasons for his decision on this matter;

(2) whether he will list the proposals made to him by the Construction Exports Advisory Board for its future activities over the next 12 months; and when he expects to announce his decisions upon them.

Mr. Freeson

I have arranged for a report of the first year's activities of the Construction Exports Advisory Board to be placed in the Library. Proposals for the future activities of the Board were dealt with in a letter which the Chairman sent to my right hon. Friends the Secretaries of State for the Environment and for Trade, on which discussions will take place shortly.

Mr. Michael Latham

asked the Secretary of State for the Environment whether, pursuant to the Minister for Housing and Construction's reply to the hon. Member for Ilford, South (Mr. Shaw) on 27th January, he will indicate the precise involvement of the Construction Exports Advisory Board in proposals for improving bonding facilities, in view of the answers to the hon. Member for Melton on 25th October 1976 and 3rd February 1977 that the Board had made no recommendations to him regarding changes in ECGD facilities.

Mr. Freeson

The Construction Exports Advisory Board has considered proposals initiated by the Department of Trade for possible improvements in bonding facilities, and has indicated its support for them. These proposals, which are currently being discussed with industry and financial interests, go wider than the facilities provided by the Exports Credit Guarantee Department.

Mr. Michael Latham

asked the Secretary of State for the Environment whether he will list the measures being introduced by the Export Group for the Constructional Industries and the British Consultants Bureau, following discussions with his Construction Exports Advisory Board, for establishing focal points for branches of the construction industry where export problems can be coordinated; how he proposes to monitor progress in this regard; and what instructions he has issued about the time-scale within which firm arrangements should be in operation.

Mr. Freeson

The Export Group for the Constructional Industries has modified its rules to allow affiliation of other trade associations, those affiliated so far being the National Federation of Building Trades Employers, the Heating and Ventilating Contractors Association, the Electrical Contractors Association and the Federation of Civil Engineering Contractors; it has also set up committees to promote the interests of sub-contractors and to explore opportunities at the smaller end of the export market.

The British Consultants Bureau has reconstituted its council to include representatives from the Royal Institute of British Architects, the Royal Town Planning Institute, the Royal Institution of Chartered Surveyors and the Management Consultants Association, as well as a senior official from my Department. The Bureau has also introduced a structure of sectoral and regional groups in order to improve its ability to co-ordinate views and to make effective contacts with Government and with the construction industry.

There will be a continuing dialogue between the CEAB and the focal point organisations to monitor progress. I do not issue instructions to industrial and professional organisations, but the arrangements described above are in any event already firm.