§ Mr. CurryTo ask the Secretary of State for Social Services whether he has completed his review of national insurance contribution rates for 1988–89.
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§ Mr. PortilloI have reviewed the national insurance contribution rates paid by mariners and registered dockworkers. In the past, these groups paid a reduced rate of contribution to reflect the fact that the standard rate of class 1 contributions paid by other employees included the employment protection allocation paid into the redundancy fund, on which mariners and registered dockworkers could not normally draw. In the light of the decision that no employment protection allocation should be paid from class 1 national insurance contributions into the redundancy fund in 1988–89, which I announced on 3 November 1987 at columns704–5, the special rates of national insurance contributions paid by some mariners and registered dockworkers, and their employers will be abolished with effect from 6 April 1988.
The special lower rates of national insurance contributions paid by employers of foreign-going mariners will remain unchanged in 1988–89.
The special rates of national insurance contributions paid by members of Her Majesty's forces will also be changed following a review by the Government Actuary. The rate of abatement will be reduced by 0.1 per cent. for both employees and employers to 0.8 per cent. and 0.85 per cent. respectively with effect from 6 April 1988.
The special class 2 contributions paid by sharefishermen, and volunteer development workers, will remain at £6.55 a week during the 1988–89 tax year.