Written Answers of 16 May 1997

HOME DEPARTMENT

  Asylum Seekers (Zaire)
  Mr. Olner
  To ask the Secretary of State for the Home Department if he will now declare Zaire to be a country in which there has been a fundamental change of circumstances under the Social Security (Persons from Abroad) Miscellaneous Amendments Regulations 1996. [628]

  Mr. Straw
  In view of the current situation in Zaire, I have decided to declare that that country has undergone such a fundamental change in circumstances that I would not normally order the return of a person to that country for the time being. The effect is that a Zairean national who applies for asylum other than on arrival, within three months of this declaration being made, becomes eligible to claim social security benefits while their application is considered by my Department.

PRIME MINISTER

  Interception Commissioner
  Mr. Campbell-Savours
  To ask the Prime Minister what arrangements have been made to appoint a Commissioner under the Interception of Communications Act 1985 as a successor to Lord Nolan whose appointment expired on 11 April. [590]

  The Prime Minister
  I am pleased to announce that Lord Nolan has accepted an invitation to serve as Interception Commissioner for a further three years.

TREASURY

  Economic and Finance Council
  Mr. Timms
  To ask the Chancellor of the Exchequer if he will make a statement on the recent Council meeting of the Economic and Finance Ministers of the European Union. [620]

  Mr. Gordon Brown
  I represented the UK at the Economic and Finance Council—ECOFIN—of the European Union in Brussels on 12 May.

  In the margins of the meeting, I spoke with Commissioner Monti, who confirmed that the Commission would not oppose a cut in the rate of VAT on domestic fuel in the UK to 5 per cent.
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  The Commission presented to the Council its Single Market Action Plan, which was broadly welcomed. Certain aspects of it were most welcome, in particular the emphasis on implementation and enforcement of legislation, action to combat unfair state aids and steps to complete the single market in financial services. The Action Plan will be considered further by the Internal Market Council on 20 May, then in final form by the Amsterdam European Council.

  The Council carried out an examination of the convergence programmes of Portugal and Spain for the period 1997–2000. It welcomed Portugal's strategy of pursuing budgetary consolidation while ensuring price and exchange rate stability, and providing the conditions for economic growth and employment. The Spanish programme's commitment to promoting growth and employment through budgetary consolidation and structural reform, especially of labour markets, was also welcomed.

  The Commission presented its proposals for the 1998 budget. The Council welcomed the Commission's commitment to limiting the growth in expenditure. The Preliminary Draft Budget will be considered by the Budget Council on 24 July.

  The Council agreed to abrogate the excess deficit decisions relating to the Netherlands and Finland, and approved recommendations to all other Member States with an excessive deficit except the UK. The recommendation to the UK will be considered after my forthcoming Budget.

  Arrangements for the consideration of the Commission's proposals for a directive on taxation of energy products were discussed. There was no discussion of the substance of the proposals.

  In response to the Commission's presentation of its Action Plan for the reform of the customs transit system in Europe, the Council stressed the priority it attached to measures to tackle fraud.

  The Presidency presented a report on the progress of discussions of proposals to extend the scope of the parent and subsidiaries directive, relating to the elimination of double taxation on profit distributions between companies in different Member States. Further discussions will be necessary to consider outstanding difficulties.

  The Commission presented its proposed FISCALIS programme for reinforcement of indirect taxation systems. It was hoped that the proposal could be adopted before the end of this year.

ENVIRONMENT, TRANSPORT AND THE REGIONS

  Kingskerswell Bypass
  Mr. Sanders
  To ask the Secretary of State for the Environment, Transport and the Regions what financial provision has been made for the Kingskerswell bypass (Torbay Expressway); and if he will make a statement. [60]

  Ms Glenda Jackson
  The Kingskerswell Bypass scheme was removed from the Highways Agency long-term programme in December 1996. I understand
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  that Devon County Council are investigating the scope to progress this scheme as a Public Private Partnership. No financial provision has been made for the scheme at this time.

  Local Government Reorganisation
  Ms Jacqui Smith
  To ask the Secretary of State for the Environment, Transport and the Regions what resources he has made available under the 1997–98 Local Government Reorganisation Costs Scheme for the shadow authorities elected in local elections on 1 May; and if he will make a statement. [695]
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  Ms Armstrong
  In their shadow year, authorities have no source of funding other than the resources made available to them through the Local Government Reorganisation Costs Scheme. Under the scheme for 1997–98 I have decided to allocate an initial amount of £1,000,000 to each of the 4 shadow authorities recently elected for: Hertfordshire, Worcestershire, Malvern Hills and Medway Towns. Each shadow authority will be invited to submit a formal bid for costs at the mid year stage of the scheme in the autumn and I expect to make further awards at that stage.