HC Deb 13 February 2002 vol 380 cc512-4W
Mr. Gareth R. Thomas

To ask the Secretary of State for Environment, Food and Rural Affairs what plans there are to change the Office of Water Services departmental expenditure limit and administration costs limit for 2001–02. [36857]

Margaret Beckett

The Ofwat DEL will be reduced by £2,000 from £35,000 to £33,000 and the administration costs limits will be decreased by £302,000 from £11,846,000 to £11,544,000. With the DEL change, the impact on resources and capital are as set out in the following table:

Resources Capital
Change -302 300
New DEL -567 600
Of which:
Voted -567 600
Non-voted 1 1
1 Not applicable

The £302,000 reduction in the resource element of the DEL arises from the transfer of £2,000 resources to the Cabinet Office for the fast stream recruitment and a transfer to a capital of £300,000.

The increase of £300,000 in the capital element of the DEL arises from an investment in the development financial model for the periodic review. This will be used in the next review of prices and will be shared with the industry.

There has been a change in accounting policy for OFWAT treatment of VAT. The previous accounting policy meant that VAT was Cfered. The new accounting policy is that the Department now accounts, net of VAT. This has no impact on the DEL. There will be a reduction in consolidated fund extra receipts of £135,000.

Paul Farrelly

To ask the Secretary of State for Environment, Food and Rural Affairs what plans there are to change the departmental expenditure limit and administration costs limit for 2001–02. [36856]

Margaret Beckett

Subject to parliamentary approval of the necessary Supplementary Estimate, the Department for Environment, Food and Rural Affairs' DEL will be increased by £368,615,000 from £2,590,774,000 to £2,959,389,000, and the administration costs limit will be increased by £149,998,000 from £503,649,000 to £653,647,000. Within the DEL change, the impact on resources and capital are set out in the following table:

£000
Resource
Change +359,167
New DEL 2,443,809

£000
of which:
Voted 1,452,453
Non-voted 991,356
Capital
Change +9,448
New DEL 515,580
of which:
Voted 435,281
Non-voted 80,299

The change in the resource element of the DEL arises from: (i) a draw down of £335,900,000 from the DEL Reserve for various FMD related expenditure, (ii) a reduction of £11,300,000 in expenditure on the Factortame litigation, (iii) a take-up of £8,000 from the Capital Modernisation Fund, (iv) a take-up of £271,000 from the Invest to Save Budget, (v) a transfer from DfES of £500,000 for the school milk scheme, (vi) various MOG transfers from DTLR for £6,683,000, (vii) a transfer from DTLR of £40,908,000 for the Rural Development Agency, (viii) transfers from various OGDs of £3,176,000 for the Energy Efficiency Best Practice measure, (ix) two transfers from HMC&E for £94,000, (x) a net transfer of £41,000 to the DTLR for work by the MCA, (xi) a transfer to NAWAD of £40,000 for the Pig Industry Restructuring Scheme, (xii) a transfer to DTLR of £30,000 for sea bed rehabilitation, (xiii) a transfer to SEERAD of £6,300,000 for the British Waterways Board, (xiv) a transfer to DFID of £2,000,000 for the Environment Know-How Fund, (xv) a transfer of £345,000 to the Highways Agency for canal work, plus, (xvi) a reduction of £8,317,000 in the DEL resource budget stemming from an adjustment in the Winter Supplementary.

The change in the capital element of the DEL arises from: (i) a take-up of £65,000 from the Invest to Save budget, (ii) a transfer to SEERAD of £4,233,000 for the British Waterways Board, (iii) a transfer of £487,000 from DTLR for emissions projects, (iv) a take-up of £700,000 from the Capital Modernisation Fund, plus, (v) an increase of £12,429,000 in the DEL capital budget stemming from an adjustment in the Winter Supplementary.

There will also be a net switch of £21,875,000 from non-estimate funds on to the estimate.

Increases will be offset by inter-departmental transfers and charged to the DEL Reserve and will not, therefore, add to the planned total of public expenditure.

Phil Sawford

To ask the Secretary of State for Environment, Food and Rural Affairs what plans she has to change the Forestry Commission's departmental expenditure limit for 2001–02. [36854]

Mr. Morley

Subject to parliamentary approval of the necessary Supplementary Estimate, the Forestry Commission's DEL will be reduced by £4,644,000 from £69,809,000 to £65,165,000. Within the DEL change, the impact on resources and capital are as set out in the following table.

£
Resources
Changes -4,644
New DEL 65,165
of which:
Voted 62,512
Non-voted 2,653
Capital
Changes No changes
New DEL
Of which:
Voted
Non-voted

The change in the resource element of the DEL arises from the winding up of the Forestry Commission Pension Scheme (FCPS) after 30 November 2001 and the transfer of its future liabilities to the Principal Civil Service Pension Scheme (PCSPS). The £4,644,000 reduction is the unused element of the net expenditure of the FCPS included in the Main Estimate.