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Written Answers

Volume 31: debated on Thursday 5 November 1992

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Written Answers To Questions

Friday 5 November 1982

Defence

Falkland Islands

asked the Secretary of State for Defence if he will specify individual capital and running costs separately included in the £1,600 million total given for the costs of recapturing the Falklands and for maintaining a garrison there till 1986; and what the cost will be of maintaining a garrison there for the six months up to April 1983.

I refer the hon. Gentleman to the answer I gave on 28 October.—[Vol. 29, c. 473-74.] No allowance for a future garrison is included, since its final size has yet to be decided.

Education And Science

Education, Science And Arts Committee (Report)

asked the Secretary of State for Education and Science what reply the Government propose to make to the eighth report, Session 1981–82, from the Education. Science and Arts Committee; and when the reply can be expected.

The Government will consider very carefully the important report by the Select Committee on public and private funding for the arts. The report raises far-reaching issues and the Government will wish to consult widely before giving a full and considered reply. I anticipate that the reply is likely to be available during the spring of 1983.

Scotland

Peterhead Prison (Report)

asked the Secretary of State for Scotland whether he has received the report from Her Majesty's chief inspector of prisons on Peterhead prison.

Her Majesty's chief inspector of prisons has submitted to me a report on his inspection of Peterhead prison. I have today placed a copy of the report in the Library together with my response to what he has said. I have sent a copy of the report and my response to my hon. Friend and to the chairman of the Select Committee on Scottish Affairs and other interested bodies. Copies may also be purchased from my Department.

South Of Scotland Electricity Board (Efficiency Audit)

asked the Secretary of State for Scotland when the report of the efficiency audit into areas of the South of Scotland Electricity Board's activities will be published.

The final report was published yesterday and copies have been placed in the Library. The report contains a number of recommendations which will require careful consideration. The management consultants consider that in all the areas that they investigated the general performance of the South of Scotland Electricity Board is satisfactory and compares favourably with organisations of similar size and type. The board will now consider their proposals for implementation of the recommendations and will submit a report within three months.

Agriculture, Fisheries And Food

Thames Barrier

asked the Minister of Agriculture, Fisheries and Food what progress has been made with the construction of the Thames barrier and the downstream defences; and if he will make a statement.

As my hon. Friend may recall, I was the Minister responsible for the Thames barrier when the Government decided in 1970 to authorise its construction. Work began on the site at Silvertown in 1974 and at the same time preparations were made for the improvement of the tidal defences downstream as far as Southend and the Isle of Grain. As with any major project of this kind there were difficulties in the early years which seriously delayed progress on the barrier. Since January 1979, however, the work has progressed very much on schedule and within the revised budget. As a result the construction contracts are now virtually complete and all the gates are in position. I understand that a trial closure of the gates last weekend demonstrated that they were all operable. Although some engineering work remains to be done, the barrier could be closed in an emergency. This means that for the first time London could be protected from a tidal surge if the need arises.At the same time, most of the downstream defences have also been completed, including the smaller barriers at Barking Creek, Dartford Creek and Canvey Island. So virtually the whole of the vulnerable areas downstream of London are also capable of being protected from tidal flooding.This has been a long and difficult project and I should like to congratulate all those who have contributed to its success—the engineers, the contractors and the work force. Its completion is a tribute to the skill and ingenuity of the British engineering and construction industries.

Milk Prices

asked the Minister of Agriculture, Fisheries and Food whether he has completed his autumn review of liquid milk prices.

I have now completed the annual autumn review of conditions in the dairy industry in the light of the latest available costing and capital information and I have also, in consultation with representatives of milk producers and of the dairy trade, reviewed the arrangements for the annual determination of the dairy trade's target rate of profit.Last December the Government decided, on the basis of recommendations by Binder Hamlyn, that in future determinations of the target rate of profit should rest on comparisons with the rate of return in comparable groups of food manufacturing and retailing companies. Last year the determination had to be made on the basis of adjusted historic cost accounting data because of the lack of current cost accounting—CCA—data in the dairy industry. This deficiency has now been remedied by the dairy trade undertaking the necessary revaluations and Binder Hamlyn has now completed a new capital study on a fully CCA basis. These capital studies will now be carried out annually and it has been agreed that in future the target rate of profit established for each costings year will be reviewed subsequently in the light of the next annual survey of dairies' returns, as is already the practice for the annual costings exercise.The target rate of profit for 1982–83 which results from the application of this new fully CCA based system is 0·9048p per litre. This figure cannot be directly compared with the target rate of profit established at the last annual determination. The adoption of a fully CCA based method involves a change in the treatment of depreciation which has the effect of offsetting part of the increase in the target rate of profit.On the basis of this determination and of the outcome of the 1982 costings and projection exercise, and having regard to the interests of both sides of the industry and of the consumer on whom they both depend, I have come to the following decisions:

  • (i) the maximum retail price will be increased by 1p per pint on 14 November 1982: this is a 5 per cent. increase over the present price. I hope that it will be possible to avoid a further increase for a considerable period;
  • (ii) the maximum wholesale price will be increased with effect from 1 December by 0·2 pence per litre. The new maximum wholesale prices will be as follows:
  • Pence per litre

    England and Wales (except London)17·983
    London16·099
    Northern Ireland21·600

    These increases restore the seasonal cut made last spring.

    These determinations complete the review of the distributive margin and costing system which was first set in hand by Binder Hamlyn in November 1979. I am confident that the revised system now agreed will operate smoothly and predictably, is fair to both sides of the industry and will create the greatest possible incentive to efficiency; and I believe that the price determinations set out above strike an equitable balance between the interests of dairy producers, the dairy trade and the consumer.

    A statutory instrument giving effect to the new maximum prices will be laid before Parliament shortly.

    Industrial And Marine Bacteria

    asked the Minister of Agriculture, Fisheries and Food if he will make a statement about the future of the national collections of industrial and marine bacteria.

    I have reached agreement with the University of Aberdeen for the transfer on or shortly after 1 January 1983 of the national collections of industrial and marine bacteria to a private company, The National Collections of Industrial and Marine Bacteria Limited, which is wholly owned by the University. A copy of the draft agreement setting out the terms for the transfer has been placed in the Library of the House. This provides for the transfer to the company of the collections and of the scientific and other equipment used in their maintenance. This is the subject of a Treasury Minute which is being laid today. The collections will continue to be accommodated with my Tony research station in Aberdeen. The staff needed to maintain the collections are being offered employment by the new company.

    National Finance

    Taxation

    asked the Chancellor of the Exchequer if he will reduce taxation paid by the average taxpayer to its level in May 1979.

    It is the Government's intention to reduce the burden of personal taxation as soon as circumstances permit.

    Imports

    asked the Chancellor of the Exchequer what he now estimates to be, on the latest evidence, the marginal propensity to import in the event of any upturn of demand in the United Kingdom economy.

    The proportion of any upturn in demand met from imports will depend critically on the composition of the additional demand, as well as on the supply response of United Kingdom industry.

    Trade

    European Organisation For The Safety Of Air Navigation

    asked the Minister for Trade if he will make a statement on the activities of, and the progress towards reorganisation of, the European Organisation for the Safety of Air Navigation, Eurocontrol, of which the United Kingdom is a member.

    Copies of the nineteenth annual report of the Eurocontrol Organisation, summarising its activities during 1981, have been placed in the Library.

    Foreign Fishing Vessels (British Registration)

    asked the Minister for Trade (1) how many Danish-owned fishing vessels are now registered in the United Kingdom; and at which ports;(2) how many Spanish-owned fishing vessels are now registered in the United Kingdom; and at which ports.

    In order to be eligible for British registration a ship must be wholly owned either by a British subject or by a company having its principal place of business in the British Isles. I understand that there are several ex-Danish fishing vessels registered at Grimsby and other east coast ports, but no precise figures are available. There are currently 60 ex-Spanish fishing vessels registered at the following ports:

    Number
    Brixham14
    Falmouth12
    Milford11
    Number
    Guernsey6
    Plymouth5
    Penzance5
    Aberdeen3
    Lowestoft2
    Grimsby2

    Environment

    Cavity Wall Insulation

    asked the Secretary of State for the Environment what progress he has made with his proposals to strengthen control over the use of cavity wall insulation in buildings.

    I have today issued a consultation letter on an amendment to the building regulations which would ensure that there is complete control over the insertion of any insulating material into any cavity in the walls of any type of building, whatever the method of construction.I have placed a copy of the consultation letter in the Library.

    Transport

    Heavy Lorries

    asked the Secretary of State for Transport whether, pursuant to his reply to the hon. Member for Chipping Barnet (Mr. Chapman) on 4 November, it is his intention not to propose an increase in the maximum permitted weight of any heavy lorry drawbar combination.

    Yes. I am not proposing any increase in the maximum permitted weights of drawbar trailer combinations.