HC Deb 07 November 1995 vol 265 cc832-3W
Mr. Robert McCartney

To ask the Secretary of State for Social Security what would be the extra return to the Exchequer resulting from removing the upper limit on employees' national insurance contributions; and what proportion of employers' national insurance contributions that would represent if their gross national insurance contributions were reduced by that amount overall. [40907]

Mr. Heald

The additional return and proportion of employers' national insurance contributions would be about £3.1 billion and 12.8 per cent. respectively in Great Britain for 1995–96 in a full year, if the upper limit on employees' NICs was removed, but an upper earnings limit at current levels remained in place for the purposes of calculating contracted-out rebates. Information for Northern Ireland is a matter for my right hon. Friend and the Secretary of State for Northern Ireland.

Source: Government Actuary's Department.

Mr. Allen

To ask the Secretary of State for Social Security (1) what is his policy towards the introduction of exemptions from national insurance contributions for employers of seafarers; [41596]

(2) if he will list the European countries which (a) exempt and (b) do not exempt seafarers employers from national insurance contributions. [41597]

Mr. Heald

Exemptions for this or any other group of employers would be contrary to the principle of universal contribution liability for universal benefit coverage on which the national insurance scheme is based. The information in the table shows that most European countries do not exempt seafarers' employers from contribution liability. We are, however, aware of the concerns expressed by the shipping industry about their national insurance position and these are being considered.

European Countries which (a) exempt and (b) do not exempt seafarers employers from national insurance contributions

  1. (a) Exempt
    • Denmark1
    • Portugal1
  2. (b) Not exempt
    • Belgium
    • Luxembourg
    • Finland2
    • France
    • Germany
    • Greece
    • Ireland
    • Italy
    • Netherlands
    • Norway
    • Spain
    • Switzerland
    • United Kingdom

Notes:

1. Exemption applies only in respect of crews of ships on the second register.

2. Contributions are refunded to employers in respect of crews of ships on the second register.