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Written Answers

Volume 397: debated on Tuesday 16 January 1979

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Written Answers

Food And Mineral Resources Of The Ocean

asked Her Majesty's Government:What action is being taken to provide for the professional management of the food and mineral resources of the ocean and ocean bed in territorial waters.

Her Majesty's Government attach the greatest importance to the proper management and optimum utilisation of the fisheries resources within the waters under its sovereignty or jurisdiction and are continuing discussions with our Community partners for an acceptable regime to govern fishing by member States within Community waters. Examples of specific management measures adopted by the Government include licensing arrangements, the introduction of closed areas to protect spawning stocks, complete prohibition of fishing when this is necessary, mesh size regulations, the adoption of minimum landing sizes and controls over industrial fishing. In addition the Government play an active part in the work of the International Council for the Exploration of the Sea which assesses the state of stocks and recommends total allowable catches for individual species.The search for an exploitation of offshore oil and gas resources is conducted under licences granted by the Secretary of State in accordance with regulations made under the Petroleum (Production) Act 1934 and the Continental Shelf Act 1964. The regulations specify the model clauses to be incorporated in all licences. These model clauses require that all operations be carried out in accordance with good oilfield practice, and that the licensee avoid interfering unjustifiably with navigation or fishing or the conservation of the living resources of the sea.The National Coal Board, by virtue of the Coal Industry Nationalisation Act 1946, is charged with the duty of working and getting the coal in Great Britain (including territorial waters). Rights exercisable by the United Kingdom outside territorial waters in the seabed and subsoil and their resources relating to coal were vested in the National Coal Board by the Continental Shelf Act 1964, and are exercisable by the Board subject to the consent of the Secretary of State.The Continental Shelf Convention of 1959 declared that the coastal State exercises over its continental shelf sovereign rights for the purpose of exploring the shelf and exploiting its natural resources. In the case of the United Kingdom Continental Shelf, no one may explore it or exploit its resources without the express consent of Her Majesty's Government.So far as other minerals within territorial waters and on the United Kingdom Continental Shelf are concerned these in general form part of the Crown Estate and are under the management of the Crown Estate Commissioners who have professional and scientific advisers. Activities, licensed only after careful consideration of the possible impact on other interests, include the winning of tin, salt and potash, but by far the most important activity is the winning of marine sand and gravel from the sea for use as concrete aggregate or for reclamation. This activity comprises some 10 per cent. of the national production of that material.

Offshore Oilfield Royalties

asked Her Majesty's Government:What economic measures of project worth of an offshore oilfield will be used in judging whether to forgo royalties and when, in such cases, they will be refunded.

Royalty may be repaid under Section 41(3) of the Petroleum and Submarine Pipelines Act 1975 where it is necessary

"for the purpose of facilitating or maintaining the development of the petroleum resources of the United Kingdom".
The yardstick for a decision on whether to make a royalty refund will be the balance between the cost of the refund and the benefit to the nation from the project going ahead.

Exploration Programmes: Processing Time

asked Her Majesty's Government:The average time required to process and agree exploration programmes under each of the six rounds of licence offers respectively.

Under the procedure adopted in Licensing Rounds 1–4, the negotiation of work programmes was not carried out as a separate part of the licensing process and so the time it took is not available. In the Fifth Round the negotiation of work programmes was undertaken separately after the conditional award of licences: the process of negotiating all the work programmes under the Round took about five months. Work programmes under the Sixth Round will be discussed when conditional awards under the Round have been announced.

Exploration Licences: Applications

asked Her Majesty's Government:What is the average number of applications per block (or the average number of blocks per applicant) involved in the Sixth Round of offerings of exploration licences on the United Kingdom Continental Shelf, and for how many blocks was more than one application received.

The figures requested are as follows, in each case exclusive of BNOC's application:

  • (a) the average number of applications lodged for each block is about four;
  • (b) Forty-two blocks attracted more than one applicant.
  • Exploration Licences: Bnoc Participation

    asked Her Majesty's Government:Whether they will explain the position of the British National Oil Corporation as a necessary participant in all applications for exploration licences at the same time as they are advisers to the Government on overall policy regarding the Continental Shelf.

    BNOC is an applicant for Sixth Round licences pursuant to the published arrangements for the Round which require a majority State interest in each licence granted. In its advisory capacity, the Corporation was consulted about these arrangements by the Secretary of State prior to their publication. Decisions concerning licensing arrangements, including the award of licences, of course remain the responsibility of the Secretary of State. Information provided in confidence by applicants will be treated as such by the Secretary of State.

    Oil And Gas Exploration And Value Of Fishing Grounds

    asked Her Majesty's Government:What calculations are made of the capital value of fishing grounds, or alternatively what value is assumed for them when decisions are made to develop "marginal" oil or gas fields in UK waters.

    In considering proposals to develop any hydrocarbons discovered in licensed areas, the Secretary of State for Energy has regard to a wide range of economic, environmental and other considerations and not least fishing activities. In this connection he consults amongst others the Secretary of State for Scotland and the Minister for Agriculture, Fisheries and Food. The overall objective is for offshore oil and gas development to be carried out with a negligible or minimum impact on the other uses and benefits which the UKCS provides.

    Pay And National Income

    asked Her Majesty's Government:Whether they will update the Answer given to the Lord Chitnis (28th February 1978) on wages and salaries as a percentage of national income.

    The following is the information:

    Wages and salaries1 as a percentage of national income
    Year%Year%
    196466·4197167·0
    196566·3197266·3
    196667·5197366·0
    196767·0197470·3
    196866·5197572·3
    196966·3197669·7
    197067·6197768·8
    1Excluding forces' pay
    Source: National Income and Expenditure 1967–77.Figures for the years before 1964 are unchanged.

    asked Her Majesty's Government:Whether they will update the Answer given to Lord Chitnis (25th January 1978) on net take-home pay as a percentage of national income.

    1 ), after deducting income tax(2 ) and national insurance contributions, as a percentage of national income.

    Year

    %

    Year

    %

    196855·2197353·6
    196954·5197455·7
    197054·7197555·2
    197154·6197652·8
    197254·5197752·8
    (1) Excluding forces' pay.
    (2) The allocation of taxes to different categories of income, such as wages and salaries, can only be arbitrary where taxpayers are receiving more than one type of income.
    Source: National Income and Expenditure 1967–77.

    Figures for the years before 1968 are unchanged.

    Wages And Salaries Statistics

    asked Her Majesty's Government:Whether they will update the answer given to the Lord Chitnis (28th February 1978) on the distribution of total employment income.

    The following figures are derived from the Inland Revenue's Survey of Personal Incomes for 1976–77. They relate to wages and salaries above the threshold for the application of PAYE.Percentage of total employment income within:

    TopTopBottomBottom
    1%10%10%1%
    241Less than ½ per cent.

    Full-Time Employment And Supplementary Benefit: Income Statistics

    asked Her Majesty's Government:Whether they will list the size of gross income necessary to reach supplementary benefit entitlement, after taking into account child benefit, tax and National Insurance together with an average rent payment for a single person, married couple, married couple with one child, married couple with two children, married couple with three children, married couple with four or more children, and if this data could be presented on the basis of whether families (i) claim; (ii) do not claim any FIS entitlement.

    I regret that the information is not available in the form requested. However, on the basis of the assumptions included in the notes below, the table shows the minimum level at which total income support from full-time work equals that on supplementary benefit.

    MINIMUM LEVEL OF GROSS EARNINGS AT WHICH INCOME FROM FULL-TIME WORK EQUALS TOTAL INCOME SUPPORT ON SUPPLEMENTARY BENEFIT
    Family typeGross earningsTaxNIFISChild benefitRentRent rebateRatesRates rebateWork expensesFree school mealsFree welfare milkTotal income support
    Single person19·210·061·255·305·191·951·812·1015·55
    Married couple29·251·905·305·301·951·952·1025·25
    MC + 1 (aged 3)19·521·2710·503·006·006·002·252·252·100·9530·60
    MC + 2 (aged 4 and 6)20·911·3611·506·006·306·302·352·352·101·250·9537·15
    MC + 3 (aged 3, 8 and 12)23·641·5412·509·006·306·302·352·352·102·500·9544·95
    MC + 4 (aged 3, 8, 11 and 16)30·351·9713·5012·007·206·772·702·402·103·750·9555·75
    NOTES:1. The levels of rent and rates are based on a survey of local authority properties.2. The figure for work expenses is based on information about the cost of travelling to work by public transport from the 1975 National Travel Survey, updated by reference to the transport and vehicle component of the RPI.3. The figures assume full take-up of all entitled benefits.4. It is assumed that the employee is not contracted out of the new pensions scheme and, therefore, NI contributions are at the 6½ per cent rate.5. The table takes account of the new prescribed amounts for Family Income Supplement, the new supplementary benefit scale rates, and the increases in child benefit operative from November 1978. The revised housing needs allowances are used for determining rent and rates rebates.6. The tax allowances are the same as those introduced in the last Budget at April 1978.

    Personal Income: Components

    asked Her Majesty's Government:Whether they will update Table 2 of the Royal Commission on the Distribution of Income and Wealth's Report No. 5 (Cmnd. 6999).

    The following is the information:

    SHARES OF COMPONENTS IN PERSONAL INCOME; 1967 TO 1977
    UNITED KINGDOMPercentages of total personal income
    YearIncome from employmentIncome from self-employmentIncome from employment and self-employmentImputed rent of owner-occupiersRent, dividends and interest receivedLess interest paidNI and other cash benefits from gen. governmentTotal personal incomeUK taxes on income(1) plus NI contributionsTaxes on expenditure(2)Total taxes plus NI contributions
    196770·28·478·62·611·3—2·29·410017·914·132·0
    196869·68·678·22·711·2—2·310·110018·714·633·3
    196969·38·778·02·811·2—2·410·110019·115·234·3
    197070·38·678·93·010·3—2·510·010019·814·734·5
    197170·19·279·33·19·8—2·510·010019·514·133·6
    197269·69·879·43·39·1—2·710·710018·913·332·2
    197369·010·879·83·510·1—3·710·210019·512·932·4
    197469·310·179·43·710·3—3·910·310020·911·532·4
    197570·89·179·93·68·9—3·210·710023·111·434·5
    197669·79·379·03·79·0—3·311·410023·311·334·6
    197768·69·377·93·89·4—3·312·110022·312·134·4

    Source: National Income Blue Book, 1967–77, Tables 4.1, 4.7 and 4.11.

    (1) Including additions to tax reserves. Capital gains tax, death duties and other taxes on capital transfers are omitted.

    (2) Including customs and excise duties, motor vehicle licence duties, selective employment tax, NI surcharge, stamp duties and local rates allocated to consumers' expenditure.

    Child Benefit Payments And Family Income Supplement

    asked Her Majesty's Government:Whether they will list the size of child benefit payments necessary to lift off family income supplement all families with (i) one child; (ii) two children; (iii) three children; (iv) four children; (v) five or more children.

    If my noble friend's Question envisages that the family income supplement (FIS) scheme would be abolished and that the payments made to families under that scheme would be made by way of child benefit instead, so that no families were worse off, it would be necessary to increase the payments made under the universal child benefit scheme by amounts equal to the maximum weekly payments that can be made under the FIS scheme, that is £10·50 for a family with one child, plus £1 for each additional child. Thus the size of the child benefit payments would be as shown in the following table:

    Amounts (£) to which child benefit payments would have to be increased
    Families withCurrentlystandard rate of child benefit £3From April 1979—standard rate of child benefit £4
    1 child13·5014·50
    2 children17·5019·50
    3 children21·5024·50
    4 children25·5029·50
    5 children29·5034·50
    increasing in £4 steps for each subsequent childincreasing in £5 steps for each subsequent child
    The total number of families in receipt of FIS was about 96,000 in June 1978, of whom only 4,000 or so had maximum awards. There are, however, 7 million families receiving child benefit at the standard rate of £3 a week for each child (£4 from next April) and every £1 added to the standard rate costs £580 million. My noble friend will therefore appreciate that, apart from other considerations, the cost of such changes would be prohibitive.

    Vat: Amounts Unclaimed, Avoided And Evaded

    Whether they will list ( a) the amount of VAT unclaimed for each year since its inception; ( b) the estimated rate of avoidance on VAT and ( c) the estimated rate of evasion on VAT.

    (a) At the end of September 1978, the amounts of VAT due to the Exchequer but outstanding for each year since the inception of the tax were:

    Financial YearAmountmillion)
    1973–742·2
    1974–759·1
    1975–7616·1
    1976–7722·9
    1977–7842·0
    (b) and (c) It is not possible to estimate the extent of legal VAT avoidance or of fraudulent evasion; but Customs and Excise officers on control visits detect each year over £50 million in underdeclarations of tax (or over-declared repayment claims), an amount representing about 1 per cent. of total net receipts from the tax. An exercise conducted in 1975 suggested that at that time more intensive control of the tax might produce an additional £30 million net revenue but only at an unacceptable marginal cost of collection.

    National Insurance Contributions: Abolition Of Ceiling

    asked Her Majesty's Government:What would be the saving to the Exchequer if the ceiling on National Insurance contributions was abolished for persons earnings up to (a) £8,000 a year; (b) £9,000 a year; (c) £10,000 a year; (d) £15,000 a year and (e) over £15,000 a year.

    On the earnings and unemployment assumptions used in the report by the Government Actuary on the draft of the Social Security (Contributions Re-Rating) Order 1978, Cmnd. 7403, it is estimated that contributions, including the National Insurance surcharge, in the United Kingdom in respect of the tax year 1979–80 would increase as follows:—

    Upper earnings limit£ million
    (a)£8,000 a year and weekly equivalent220
    (b)£9,000 a year and weekly equivalent340
    (c)£10,000 a year and weekly equivalent420
    (d)£15,000 a year and weekly equivalent540
    (e)over £15,000 a year (no limit)580
    In later years that part of the additional contributions payable to the National Insurance Fund would be to some extent offset by the additional benefit that the additional contributions would attract.

    Police: Women Officers' Uniform

    asked Her Majesty's Government:For what reason they commissioned and then abandoned designs for a new uniform for women police officers in the Metropolitan Police area; how many such uniforms were ordered; how it is intended to dispose of them, and what is the total cost to the public of this abortive operation.

    The new style of uniform for women officers, which was introduced in 1978, is not being abandoned. In the interests of economy it is being issued to serving officers in exchange for existing garments as they wear out; although recruits and cadets receive a complete uniform in the new style. The only modification likely to be made to the new design is to reintro-duce the white-crowned hat, but that will be done only as fresh purchases are needed and without additional cost.

    Public Records Act 1958: Instruments Made

    Whether they will publish a list of Instruments made under Section 5(1) of the Public Records Act 1958 showing in each case the number of Class; pieces in Class; description; person whose approval has been given and prescribed period.

    Copies of the Instruments containing this information may be seen at the Public Record Office. The cost of publication would not be justified.

    British Cheese: Availability In Eec Institutions

    asked Her Majesty's Government:Whether they are aware that Cheddar cheese, and other British regional cheeses, are not regularly available in the official restaurants of the European Parliament and the Commission of the European Communities; and what representations they propose to make to the appropriate authorities.

    I have taken note of the points made by the noble Lord and I am arranging to have these drawn to the attention of British cheese exporters and to the responsible authorities of the EEC Commission and the European Assembly.

    Inverness Airport: Closing Time

    asked Her Majesty's Government:Why it is necessary for Inverness Airport to be closed at 21.45 hours, less than an hour after the evening flight from London is due to arrive, with the result that delays in departures from Heathrow lead to cancellations of the flight or, occasionally, an inconvenient diversion to RAF Lossiemouth, about 30 miles away.

    This is a matter for the Civil Aviation Authority as owner and operator of Inverness Airport.

    Hospitals: Scheduled Closures 1979/84

    asked Her Majesty's Government:Which hospitals are scheduled for closure between 1979 and 1984.

    The information requested is not available centrally in this form. There are however currently 113 proposals for hospital closures in the pipeline which, if a decision to close is ultimately taken, may be expected to be implemented before 1985. It is likely that there will be further proposals in due course.

    European Assembly Elections: Eligibility

    asked Her Majesty's Government:Whether they will make clear whether or not any British subject may stand in a United Kingdom consistituency for election to the European Parliament in the first Direct Elections in June 1979; or whether eligibility to stand is confined to British subjects whose names appear on the current electoral register in the United Kingdom; and whether they will cite the source of the definition of persons eligible to stand in these elections.

    A definition of those eligible to stand as candidates in the European Assembly Elections is given in paragraph 5 of Schedule 1 to the European Assembly Elections Act 1978. With the addition of Peers and certain ministers of religion, any British subject or citizen of the Republic of Ireland who is not disqualified for membership of the House of Commons, and does not hold a disqualifying office in or connected with a Community institution, may stand as a candidate for election as a representative of the United Kingdom in the European Assembly.

    Means-Tested Benefits

    asked Her Majesty's Government:Whether they will bring up to date the Parliamentary Answer showing the number of people drawing means-tested benefits (

    Official Report, 14th February 1978, WA Cols. 1409–1412) by giving the comparable figures for 1977.

    Pursuant to my reply [Official Report 14th December 1978, Vol. 397, c. 842] following is the information:

    NUMBER OF PEOPLE RECEIVING VARIOUS MEANS-TESTED BENEFITS 1973–77 IN GREAT BRITAIN
    Thousands
    19731974197519761977
    Supplementary Benefit (1)
    No. of claimants2,6752,6802,7932,9402,991
    No. of wives549538564614611
    No. of children7988741,0781,1721,156
    All claimants and dependants4,0224,0924,4344,7254,759
    Rent rebates and allowances(2)
    No. of rebates1,9302,0872,1602,3822,423
    No. of allowances235333400616614
    Rate rebates(3)
    No. of rebates1,1102,6302,9303,0203,090
    Free school meals(4)
    No. of children receiving free school meals
    in England and Wales795750784839997
    in Scotland137130122117118
    in Great Britain9328809069561,115
    Family income supplement (5)
    No. of claimants9570607789
    No. of wives5032284251
    No. of children221161135176205
    All claimants and dependants366261223295345
    NOTES:(1) Supplementary Benefit: source—supplementary benefit annual enquiry, November 1973 and 1974, and December 1975, 1976 and 1977.(2) Rent rebates and allowances: source—Department of the Environment, relating to October of each year. The figures include supplementary benefit recipients who received direct rebates and allowances up to 31 March 1974 and indirect rebates and allowances since that date. Estimates of family composition are not available.(3) Rate rebate: source—Department of the Environment, relating to March of each year. The estimates are for the number of households receiving a rates rebate and include those few who may be receiving supplementary benefit for a short-term transitional period. Estimates of family composition are not available.(4) Free school meals: source—Department of Education and Science census at October of each year in respect of England and Wales; Scottish Education Department census at January of each year in respect of Scotland. The figures are for number of children receiving free school meals at the stated dates; estimates of family composition are not available.(5) Family income supplement: source—10 per cent. statistical sample at December of each year.(6) All figures relate to Great Britain except where explicitly stated to the contrary and are rounded to the nearest thousand. Because of rounding component figures may not sum to the total.House adjourned at twenty-six minutes past six o'clock.