Written Answers of 7 May 1992

NATIONAL FINANCE

  Vehicle Excise Duty
  Mr. Burns
  To ask the Chancellor of the Exchequer if he will make a statement on the arrangements for granting exemptions from vehicle excise duty.

  Sir John Cope
  The Government have reviewed, in the light of the introduction of the new disability living allowance on 6 April, the arrangements for exemptions from vehicle excise duty for disabled people.

  People in receipt of the higher rate of the mobility component of disability living allowance will continue to be eligible for exemption and invalid carriages will also continue to be exempt.

  We have decided to bring forward legislation to repeal, from a day to be appointed by a statutory instrument, that part of the Finance Act 1971 and the Vehicle (Excise) Act 1971 which exempts disabled passengers from duty in Great Britain and Northern Ireland. This is subject to the House approving the necessary Ways and Means resolution, which will be among those appearing in the Order Paper on 8 May.

  Transitional arrangements will be made to ensure that all those who currently receive the exemption under the disabled passengers scheme continue to do so after the relevant legislation has been replaced.

  Charitable Giving
  Mr. Burns
  To ask the Chancellor of the Exchequer if he will introduce legislation for the measures he announced in his Budget to give further encouragement to charitable giving through the gift aid scheme and covenants.

  Sir John Cope
  Yes. As announced in the Budget, the forthcoming Finance Bill will include provisions to reduce from £600 to £400 the minimum limit on donations qualifying for tax relief under the gift aid scheme and to relax the rules for tax relief for some charitable covenants. We now propose that these changes should apply from today, 7 May, instead of 1 July as originally proposed.

  The Inland Revenue will also be introducing simpler procedures for tax repayment claims by charities from 1 July.

  I hope that charities will find these measures helpful and will make full use of them. Further details are given in an Inland Revenue press release published today.

  Building Societies
  Mr. Burns
  To ask the Chancellor of the Exchequer if he has any proposals affecting the tax rules for building societies.

  Mr. Dorrell
  A question has been raised in current judicial review proceedings, not yet heard in the courts,2
  about the validity of the composite rate tax—CRT—charge for 1986–87 to 1989–90 on interest paid to investors. It is suggested that legislation in 1991, in connection with the transition to new arrangements for CRT in 1985–86, has retrospectively changed the basis on which the CRT rates should have been set for the four subsequent years. Around £15 billion has been collected by reference to those rates.

  The Government's view is that the composite rates for the years concerned are valid and I am clear that they were set in accordance with Parliament's intentions in passing the 1991 and earlier legislation. I do not believe, however, that it is acceptable for the Exchequer's claim to the amounts involved to be in doubt, possibly for a period of years. 1 therefore propose to bring forward legislation in the forthcoming Finance Bill to confirm the composite rates for the years 1986–87 to 1989–90 set in the relevant Treasury orders. This is subject to the House approving the necessary Ways and Means resolution which will be among those appearing in the Order Paper on 8 May.

  Finance Bill
  Mr. Burns
  To ask the Chancellor of the Exchequer when he will publish the Finance Bill; and if he will make a statement.

  Mr. Dorrell
  The Finance Bill will be published on 20 May, subject to the House approving the necessary resolutions before them. These will appear on the Order Paper for 8 May. The Bill will provide for the implementation of those Budget measures which are not already law. As well as other measures, it will also include a number of technical changes to prepare the tax system for the single market, which have already been the subject of consultation.

PRIME MINISTER

  Bankruptcy (Scotland) Act 1985
  Mr. Bill Walker
  To ask the Prime Minister if he will make a statement on the allocation of functions associated with the operation of the Bankruptcy (Scotland) Act 1985 between the Secretary of State for Scotland and the Secretary of State for Trade and Industry.

  The Prime Minister
  I have approved a reallocation of policy responsibility for the Bankruptcy (Scotland) Act 1985 from the Secretary of State for Trade and Industry to the Secretary of State for Scotland, who already has administrative responsibility for the operation of that Act. This will take effect from 7 May 1992.

  Bringing together the policy and administrative responsibility for the 1985 Act will facilitate the introduction of measures to control the rising cost of sequestrations in Scotland while at the same time maintaining an effective service.

  The Secretary of State for Scotland will bring forward proposals for legislation at the earliest opportunity.

  The Secretary of State for Trade and Industry continues to be responsible for all areas of insolvency law except those covered by the Bankruptcy (Scotland) Act 1985. His responsibilities are mainly set out in the Insolvency Act 1986 and the Disqualification of Directors Act 1986. They include the insolvency of registered companies in Scotland.

  Armed Forces (Pay)
  Mr. Shersby
  To ask the Prime Minister if he will make a statement about the pay of medical and dental officers in the armed forces.

  The Prime Minister
  The Armed Forces Pay Review Body has submitted to me a supplementary report on the pay of medical and dental officers in the armed forces. The report recommends a basic pay increase of 5.5 per cent. and additional pay adjustments which provide overall pay increases of between 5.5 per cent. and 9.5 per cent. The average increase is 5.6 per cent. The Government have decided to accept the recommendations of the Armed Forces Pay Review Body and to implement them in full with effect from 1 April 1992.

AGRICULTURE, FISHERIES AND FOOD

  Agricultural Wages Order
  Mr. Barry Field
  To ask the Minister of Agriculture, Fisheries and Food what measures he has adopted to enforce the provisions of the agricultural wages order; and if he will make a statement.

  Mr. Gummer
  The Agricultural Wages Act 1947 requires the appropriate Minister to undertake prosecutions in order to enforce the provisions of the agricultural wages order in those cases where prosecution is considered appropriate. I and the Secretary of State for Wales have therefore arranged additional training for agricultural wages inspectors so that they are better able to meet the rigorous requirements of the Police and Criminal Evidence Act 1984 when preparing cases for prosecution.

  Up to now, the Ministry of Agriculture, Fisheries and Food and the Welsh Office Agricultural Department have taken civil court action to recover the underpayment of workers' wages. The deterrent effect of recovery actions of this kind is marginal and not commensurate with the resource costs involved. The Secretary of State for Wales and I have therefore decided to discontinue taking civil actions of this kind and to concentrate on criminal prosecutions. Civil actions can still be undertaken by the worker, or by the workers' union on his or her behalf, as indeed they are now. With the consent of the worker concerned, my officials will assist such actions by the provision of information obtained during the investigations of the agricultural wages inspectors.

  My right hon. Friend and I are confident that this approach will result in a more effective enforcement effort, to the advantage of the worker and the industry as a whole.

TRANSPORT

  Transport Council
  Sir Anthony Durant
  To ask the Secretary of State for Transport what was the outcome of the meeting of the European Transport Council on 26 and 27 March.

  Mr. MacGregor
  The meeting of the Council of Transport Ministers was held in Brussels on 26 and 27 March. My noble Friend Lord Brabazon of Tara represented the United Kingdom on both days.

  Agreement was reached on the aviation agreement with Norway and Sweden, based on article 84(2) of the treaty,
  4
  extending the Community acquis to Norway and Sweden. The Council noted the progress made on the third package of aviation liberalisation measures, and discussed briefly a report from the Commission on aviation state aids. Lord Brabazon stressed the importance we attached to firm Commission action on aviation state aids.

  Although no agreement was reached on proposals for a definitive regime for road haulage cabotage, some progress was made towards agreement on road passenger cabotage, with proposals for a phased liberalisation of non-regular services and liberalisation of some limited cross border regular services. It was agreed that the Commission should have further discussions with Switzerland and Austria on the implementation of the transit agreements.

  Good progress was made towards reaching a final agreement on maritime cabotage, but a number of important elements of the package are still to be resolved.

TRADE AND INDUSTRY

  Oil and Gas Resources
  Mr. Duncan-Smith
  To ask the President of the Board of Trade when he published the recent report on the development of the oil and gas resources of the United Kingdom, the Brown Book.

  Mr. Eggar
  I published the latest edition of the Brown Book on Thursday 30 April and arranged for copies to be placed in the Library of the House and the Vote Office. The report provides a detailed account of the development of the oil and gas resources during 1991.

FOREIGN AND COMMONWEALTH AFFAIRS

  Council of Ministers
  Sir John Hannam
  To ask the Secretary of State for Foreign and Commonwealth Affairs if he will publish in the Official Report a statement of forthcoming business in the European Community's Council of Ministers.

  Mr. Garel-Jones
  The Development Council met on 4 May.

  A joint Environment/Development Council met on 5 May.

  The Foreign Affairs Council will meet on 11 and 12 May and will discuss the Commission's proposals for the future financing of the Community—the "Delors II package"—follow-up to the Union treaty and immigration policy. The Council will also consider recent developments in the negotiations of the general agreement on tariffs and trade Uruguay round, the Lisbon conference on aid to the former Soviet Union, relations with the Maghreb and the negotiating mandates for the association agreements with Romania and Bulgaria. Community trade and co-operation agreements with the Baltic states and Albania may be signed in the margins of the Council. A co-operation council with Israel is scheduled for 12 May.

  The Internal Market Council will meet on 14 May and will discuss exchange of officials and customs code. The Council may also consider frontier controls; renting and lending rights; networks; the Berne and Rome conventions; the second company law directive; the third life insurance directive; the multi-annual programme on

  5
  services statistics; drugs precursors; procurement of services by the utilities; European company statute; contaminants in food; the CE mark and data protection.

  The Health Council will meet on 15 May and will discuss the adoption of a directive amending directive 89/622 on the approximation of the laws, regulations and administrative provisions of the member states concerning the labelling of tobacco products and the marketing of certain types of tobacco for oral use. The Council is also likely to be invited to express views on a Commission draft directive for a ban on tobacco advertising. The Community action programme on nutrition and health, draft resolutions on future work on hereditary illness and acute human poisoning will also be considered. It will discuss progress in negotiating a regulation setting up a European drug monitoring centre and make a declaration announcing the holding of a European drugs prevention week during the United Kingdom presidency. Ministers may also consider a Commission report on AIDS; the anti-dumping code; health related activities in other councils; and pharmaceutical pricing and minimum standards for rehabilitation centres.

  The Culture Council will meet on 18 May and will discuss the Commission's proposals for a Council directive on the return of cultural objects and a proposal for a regulation on the export of cultural goods. The Council will also consider a Commission communication on new perspectives for Community cultural action and the European city of culture programme after 1996. The Council will discuss the Commission's proposed action plan for the introduction of high definition television, HDTV; a public awareness campaign for books and reading; the use of permanent paper and the conservation of acid paper; the Lisbon conference on cultural sponsorship and copyright and neighbouring rights.

  The Agriculture Council will meet on 18 and 19 May. It will discuss reform of the common agricultural policy, the 1992–93 price-fixing proposals and the agricultural aspects of the GATT Uruguay round. Milk products and wild game meat may also be discussed.
  6
  The ECOFIN Council will meet on 19 May. It will examine the German and possibly the Italian economic convergence programmes as part of its continuing exercise of multilateral surveillance. The abolition of fiscal frontiers will also be discussed. Alcohol rates and structures directives are also scheduled for discussion by the Council, as are the draft VAT rates directive and the draft 7th VAT directive which relates to trade in secondhand goods, antiques and works of art. The Council will consider relations with the former Soviet Union and the Commission's proposals for the future financing of the Community. They may also discuss the proposed capital adequacy directive.

  The Energy Council will meet on 21 May and is likely to discuss the directives on the liberalisation of electricity and gas.

  The Environment Council will meet on 26 May. It will discuss proposals for a regulation on the supervision and control of waste shipments and a directive on air pollution caused by ground level ozone. The fifth environmental action programme prior to the United Nations Conference on Environment and Development summit, carbon dioxide emissions and energy efficiency will also be discussed.

EMPLOYMENT

  Advisory, Conciliation and Arbitration Service
  Mr. Brandreth
  To ask the Secretary of State for Employment when she intends to lay before Parliament the annual report of the Advisory, Conciliation and Arbitration Service.

  Mr. McLoughlin
  I have today laid the ACAS report for 1991 before both Houses of Parliament. The report has been published today and copies are now available from the Vote Office.

  EUROPEAN TRANSPORT COUNCIL, 26th and 27th MARCH
  EUROPEAN TRANSPORT COUNCIL, 26th and 27th MARCH