To ask the Secretary of State for the Environment, Transport and the Regions if he will continue to prescribe the rateable value of some industries at the 2000 rating revaluation; and if he will make a statement. [79995]

Most ratepayers have their rateable values assessed using conventional methods by the Valuation Office Agency (VOA) and the Assessors in Scotland. However, this has to date been problematic for certain industries. Instead, these industries have had their rateable values prescribed by Order by the respective Secretaries of State. The industries currently in prescribed assessment are:

• Electricity generators
• National Grid
• Regional Electricity Companies
• British Gas Transco
• Railtrack
• London Underground
• the water companies
• large docks and harbours.

The VOA and the Scottish Assessors' Association have been examining whether it would be feasible for these industries to have their rateable values assessed by conventional methods. Although they have concluded that conventional assessment would be possible, the results would be far from clear. Conventional assessment would lead to significant differences of opinion over possible values which in many cases, would be properly resolved by only the courts. The level of uncertainty is significantly above that which could be expected from most properties. Resolving this uncertainty could take several years.Therefore, the Secretary of State has, together with my right hon. Friends the Secretaries of State for Scotland and for Wales, concluded that the industries currently subject to prescribed assessment will continue to have their rateable value prescribed by the respective Secretaries of State for the 2000 revaluation. We will begin discussions with the industries in prescribed assessment with a view to agreeing their new rateable values for the 2000 revaluation. In Scotland, by 1 July 1999, this will be a matter for the Scottish Parliament.Prescribed assessment is not an ideal way of setting rateable values but it is the best available at this time. We will continue to work towards ending prescribed assessment in the future.