§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will make a statement on the future location of(a) management functions and (b) operational functions of the Customs and Excise currently located in 86W Newcastle upon Tyne; and if he will make a statement on the future for the Customs and Excise Newcastle headquarters and the employment impact of the proposed reorganisation. [26210]
§ Mr. Heathcoat-AmoryOne of the outcomes of the fundamental expenditure review of Customs and Excise was a reduction in the number of regional offices, collections, from 21 to 14. The former Northern England, which had its headquarters in Newcastle, and Leeds collections were merged with effect from 1 April 1995 to form a new collection retaining the title of Northern England. The new collection will be managed from Leeds.
The headquarters support functions will be split between Newcastle and Leeds so that staff reductions are shared. In the short term the Newcastle headquarters building will be retained, but the longer-term position has not yet been decided.
There will continue to be Customs staff in the Tyne and Tees areas. The VAT and Excise functions in the Newcastle area will be combined in offices in Newcastle, Washington and Middlesbrough.
Collection staff levels will reduce overall by about 16 per cent. as a result of the FER with the majority of the reductions spread over a four year period. Specific figures for the impact on Newcastle are not available yet. However, it is intended that, as far as is practicable and reasonable, the impact of the cuts will be spread evenly across the new collection. The Department has a clearly stated policy to avoid compulsory redundancy wherever possible.