§ Dr. CableTo ask the Secretary of State for Education and Skills for what reason the CITB levy is imposed on tool hire companies and rental companies who are not engaged wholly or mainly in the construction industry; and if she will make a statement. [8468]
§ John HealeyThe CITB can impose the levy only on employers who are engaged wholly or mainly in construction activities as defined in its governing legislation. This states that construction industry activities include
the installation, testing, inspection, maintenance or repair of contractor's plant, or the letting out on hire of such plant or scaffolding".Contractors' plant is further defined to mean
machinery, plant or equipment of a kind used or intended for use in operations on the site of any building work or civil engineering work".
§ Dr. CableTo ask the Secretary of State for Education and Skills for what reason the CITB levy is not imposed on builders merchants. [8469]
§ John HealeyThe CITB is able to impose a levy only on employers who are engaged wholly or mainly in construction activities as defined in its governing legislation. Builders merchants are wholly or mainly retailers and retailing is not a construction activity.
§ Dr. CableTo ask the Secretary of State for Education and Skills when the Government will review the Industrial Training Act 1982 in respect of the CITB; and if she will make a statement. [8470]
§ John HealeyThe Industrial Training Act 1982 does not relate specifically to the CITB. It gives the Secretary of State power to set up industrial training boards, which is given effect by the making of an industrial training order. The order includes a definition of the industry for which the board is to exercise its functions.
The order that set up the CITB is the Industrial Training (Construction Board) Order 1964, most recently amended by the Industrial Training (Construction Board) Order 1964 (Amendment) Order 1992. I have no plans at the present time to review that order but am, of course, always prepared to consider proposals from any sector of the industry.
§ Dr. CableTo ask the Secretary of State for Education and Skills if she will assess the case for the tool hire sector's liability to pay the CITB levy; and if she will make a statement. [8471]
§ John HealeyThe Secretary of State does not have the power to assess the case for any sector's liability to pay the CITB levy. Only the CITB has the power to assess liability to pay the levy and this is in respect of an individual construction establishment, not a sector. There is a right of appeal against an assessment to an employment tribunal. A construction establishment is one that is engaged wholly or mainly in the construction industry as defined in the Industrial Training (Construction Board) Order 1964 (Amendment) Order 1992—the order which identifies the activities covered by the CITB.
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§ Dr. CableTo ask the Secretary of State for Education and Skills for what reason there is no distinction between plant hire and tool hire in respect of the CITB levy. [8472]
§ John HealeyThe Industrial Training (Construction Board) Order 1964 (Amendment) Order 1992 sets out the activities of the construction industry, ie the industry in respect of which the CITB is required to exercise its functions. One of those activities is the hiring out of contractors' plant, which is also further defined in the order as
machinery, plant or equipment of a kind used or intended for use in operations on the site of any building work or civil engineering work, but does not include lorries, ready-mixed concrete vehicles or other mechanically propelled vehicles mainly used for the carriage of goods on roads".It is this definition that determines whether or not a company falls within the scope of the CITB.
§ Dr. CableTo ask the Secretary of State for Education and Skills for what reason there is no opt-out clause for the CITB levy scheme; and if she will make a statement. [8473]
§ John HealeyThe Industrial Training Act 1982—the legislation that governs the functions and operations of industrial training boards (ITBs)—gives an ITB the power to make provision for exempting from the levy employers who make adequate arrangements for training their work force. However it does not require it to do so. The CITB, with the support of the construction industry, has decided not to have a scheme based on exemption. Instead it has opted for a levy/grant system as being the most effective way to ensure that adequate training is carried out. The board does not believe a levy exemption scheme is appropriate for an industry where employers have a mobile work force and fluctuating work loads, making it difficult for them to plan and meet their training needs individually.