HC Deb 24 July 1997 vol 298 cc711-2W
Mr Colvin

To ask the Chancellor of the Exchequer what assessment he has made of the impact on pension funds of(a) changes to advance corporation tax in the Budget and (b) the introduction of the windfall tax; and if he will make a statement. [7647]

Dawn Primarolo

Changes to the corporation tax system announced in the Budget will encourage long-term investment. The windfall tax funds the new deal for young and long-term unemployed, for lone parents and for schools. This is a significant investment in human capital. Pension funds should benefit over the long-term from the improved company performance resulting from the strong and stable economy which this Budget promotes.

Mr. Vaz

To ask the Chancellor of the Exchequer how many representations he has received from(a) hon. Members and (b) members of the public concerning his windfall tax proposals. [9887]

Mr. Geoffrey Robinson

Some 30 hon. Members have written attaching constituents' letters. Some 130 letters have been sent direct by members of the public. The vast majority were in favour of the Government's proposals to introduce a windfall tax on the excess profits of the privatised utilities.

Mr. Beith

To ask the Chancellor of the Exchequer if, under his proposals in the Finance Bill, any liability to windfall tax can arise(a) in respect of the profits earned by privately owned statutory water companies, and (b) where such companies have been taken over by privatised companies, in respect of any part of the profits attributable to that part of the business which was previously in private ownership. [10146]

Mr. Robinson

[holding answer 22 July 1997]: The windfall tax applies only to companies previously within the public sector which were privatised by flotation and are subject to economic regulation by statute; that definition excludes water companies which have always been in the private sector. The tax is charged on the difference between the value of the floated company, calculated by reference to profits made in the initial period after flotation, and the value placed on the company at the time of flotation. Where the floated company has produced group accounts, these are used to produce the relevant profit figure.

Mr. Boswell

To ask the Chancellor of the Exchequer what information his Department collates on privatisation exceeding £50 million in other countries of the European Union; what were the premiums on the issue price five years after privatisation; and what windfall taxes were imposed. [10007]

Mr. Robinson

No such information is collated.