§ Matthew TaylorTo ask the Chancellor of the Exchequer if he will place the accounting advice given by the Office for National Statistics concerning Network Rail in the Library; and if he will make a statement. [65059]
§ Mr. BoatengYes, the letter from the Office for National statistics of 20 June 2002 giving accounting advice concerning Network Rail will be placed in the Library.
§ Mr. HowardTo ask the Chancellor of the Exchequer what assessment he has made of the impact of the treatment of Network Rail debt on potential UK obligations under EMU convergence programmes and the stability and growth pact. [64880]
§ Mr. BoatengNetwork Rail will be classified to the private sector in national accounts. It would pose no threat to UK obligations under EU treaties that concern excessive government deficits.
§ Mr. HowardTo ask the Chancellor of the Exchequer what submissions his Department has made to the ONS about the treatment of Network Rail debt in the national accounts; and if he will set out the reasoning behind those submissions. [64881]
§ Mr. BoatengOver the months since October 2001 Treasury has kept ONS informed about the developing proposals for the constitution and financing of Network Rail in order to give ONS the opportunity to ask questions affecting the sector classification.
Year started contributing Retire at end year Years of contribution Lump sum built up (£) Lump sum in 2000 earnings terms (£) Annuity rate in last year of contribution Pension at retirement (nominal terms, £ weekly) Pension at retirement (2000 earnings terms, £ weekly) 1956 1986 31 17,681 38.694 14.1 48 105 1957 1987 31 21,066 42,786 14.0 57 115 1958 1988 31 23,845 44,503 13.7 63 117 1959 1989 31 25,578 43,792 14.0 69 118 1960 1990 31 27,866 43,460 15.2 82 127 1961 1991 31 34,243 49,608 14.6 96 139 1962 1992 31 41,169 56,297 13.2 105 143 1963 1993 31 53,666 71,268 11.7 121 161 1964 1994 31 47,497 60,865 11.6 106 135 1965 1995 31 57,034 70,893 11.3 124 154 1966 1996 31 60,718 72,850 11.0 129 154 1967 1997 31 71,040 81,762 10.4 141 163 1968 1998 31 85,598 93,743 9.4 155 169 1969 1999 31 80,168 83,738 8.9 138 144 1970 2000 31 85,438 85,438 9.1 149 149 1971 2001 31 83,936 80,348 8.9 143 137 The figures are based on hypothetical modelling of the return from contributing to a pension fund using the following assumptions:
1048WA person contributes to a personal pension for 31 years.The earnings of each individual go up in line with average earnings.On 14 June 2002 Treasury wrote to ONS asking for a formal decision on the sector classification of Network Rail in national accounts. ONS replied on 20 June saying that, subject to NR's members confirming the board of directors, and further checking of the legal documents, NR would be classified to the private sector in national accounts. The reasoning behind the submissions was to obtain ONS' s view on the sector classification of Network Rail, and to make sure that ONS received in good time all the information it needed to make that decision and raise any queries.
§ Mr. HowardTo ask the Chancellor of the Exchequer what discussions he has had with the Department for Transport about the treatment of Network Rail debt in the national accounts. [64872]
§ Mr. BoatengTreasury officials have advised the Department for Transport that the Office for National Statistics (ONS) would classify Network Rail (NR) to the private sector in national accounts once its board of directors had been confirmed by a meeting of NR's members.