House of Commons - Minutes of Proceedings
          
House of Commons
Session 2001 - 02
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Minutes of Proceedings


 

WEDNESDAY 18 JULY 2001
Members present:


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Mr John McFall

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

Members disclosed their interests, pursuant to the resolution of the House of 13 July 1992 (see Annex).
Motion made, That Mr John McFall do take the Chair of the Committee.—(Mr Michael Fallon.)
Motion made, That Mr Nigel Beard do take the Chair of the Committee.—(Mr Jim Cousins.)
Motion made, That Mr James Plaskitt do take the Chair of the Committee.—(Dr Nick Palmer.)
Question put, That Mr John McFall do take the Chair of the Committee.
The Committee divided.


Ayes, 8


Mr Michael Fallon

Mr David Laws

Mr John McFall

Kali Mountford

Mr George Mudie

Dr Nick Palmer

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 3


Mr Nigel Beard

Mr Jim Cousins

Mr James Plaskitt

 

Mr John McFall accordingly took the Chair.
Ordered, That the Chairman do report his election to the House.
The Chairman, Mr Michael Fallon, Mr James Plaskitt, Dr Nick Palmer and Mr David Ruffley declared pecuniary interests as Equitable Life policyholders.
Resolved, That the Committee do examine witnesses in public, except when it otherwise orders.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the First Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Fifth Report of Session 2000-01 [Banking and the Consumer] be appended to the Report.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Second Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Ninth Report of Session 2000-01 [The Monetary Policy Committee—an End of Term Report] be appended to the Report.—(The Chairman.)
Ordered, That a Sub-committee be appointed.—(The Chairman.)
Ordered, That all the members of the Committee be members of the Sub-committee.—(The Chairman.)
Ordered, That Mr Michael Fallon be Chairman of the Sub-committee.—(The Chairman.)
Ordered, That the Sub-committee do not sit during the sitting of the Committee without the leave of the Committee.—(The Chairman.)
Resolved, That the Committee do hold a seminar on Monday 8 October to discuss its programme of work.—(The Chairman.)
Resolved, That the Committee do inquire into the Bank of England quarterly Inflation Reports.—(The Chairman.)
Resolved, That the Committee do inquire into the work of the Financial Services Authority and related bodies.—(The Chairman.)
The Committee further deliberated.

[Adjourned till Tuesday 16 October at half-past Ten o=clock.

TUESDAY 16 OCTOBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Third Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Eighth Report of Session 2000-01 [The Royal Mint] be appended to the Report.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Fourth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Seventh Report of Session 2000-01 [The Government Actuary=s Department] be appended to the Report.—(The Chairman.)
The Committee deliberated.
Resolved, That the Committee do inquire into the Review of Departmental Reports.—(The Chairman.)
Resolved, That the Committee do inquire into the regulation of Equitable Life.—(The Chairman.)
Financial Services Authority and related bodies: Sir Howard Davies, Chairman and Chief Executive, Ms Carol Sergeant, Managing Director, Regulatory Processes & Risk Directorate, and Mr John Tiner, Managing Director, Consumer, Investment & Insurance Directorate, Financial Services Authority, were examined.

[Adjourned till Tuesday 23 October at half-past Ten o=clock.

TUESDAY 23 OCTOBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Fifth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Sixth Report of Session 2000-01 [HM Customs and Excise: Collection of Excise Duties] be appended to the Report.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Sixth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Tenth Report of Session 2000-01 [Equitable Life and the Life Assurance Industry: An Interim Report] be appended to the Report.—(The Chairman.)
Resolved, That the Chairman do visit Paris on 23 January 2002 to attend the Eleventh Parliamentary Meeting on Savings.—(The Chairman.)
Ordered, That the Chairman do seek the approval of the Liaison Committee for expenditure in connection with the said visit.—(The Chairman.)
Regulation of Equitable Life: Ms Ruth Kelly, a Member of the House, Economic Secretary, Mr Jon Cunliffe, Director, Financial Sector and Mr Robin Fellgett, Assistant Director, Financial Sector, HM Treasury, were examined.

[Adjourned till Tuesday 6 November at half past Ten o=clock.

TUESDAY 6 NOVEMBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr David Ruffley

 

The Committee deliberated.
Resolved, That the Committee do visit the United States of America in January 2002.—(The Chairman.)
Ordered, That the Chairman do seek the approval of the Liaison Committee for expenditure in connection with the said visit.
Ordered, That Mr Roger Bootle, Professor Sheila Dow, Professor David Miles, Professor Christopher Pissarides, Ms Bridget Rosewell, Professor Andrew Scott and Mr David Walton be appointed as Specialist Advisers to assist the Committee in matters relating to monetary policy.—(The Chairman.)
Ordered, That copies of uncorrected transcripts of evidence given in public by Ministers of the Crown be placed on the Internet, unless the Committee otherwise orders.—(The Chairman.)
Review of Departmental Reports: Mr Adam Sharples, Director, Expenditure Policy, and Mr Allen Ritchie, Team Leader, General Expenditure Statistics, HM Treasury, were examined.

[Adjourned till Tuesday 13 November at half past Ten o=clock.

TUESDAY 13 NOVEMBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That the Committee do inquire into the proposed takeover of the London International Financial and Futures Options Exchange by Euronext.—(The Chairman.)
Ordered, That Professor David Heald be appointed as a Specialist Adviser to the Committee in relation to Estimates and Resource Accounting and Budgeting.—(The Chairman.)
The Committee deliberated.
Regulation of Equitable Life: Sir Howard Davies, Chairman and Chief Executive, and Mr John Tiner, Managing Director, Consumer, Investment and Insurance Directorate, Financial Services Authority, were examined.

[Adjourned till Tuesday 20 November at Ten o=clock.

TUESDAY 20 NOVEMBER 2001
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Dr Nick Palmer
 

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Seventh Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Fourth Report of Session 2000-01 [The International Monetary Fund: A Blueprint for Parliamentary Accountability] be appended to the Report.—(The Chairman.)
The Committee deliberated.
Resolved, That the Committee do inquire into the Pre-Budget Report 2001.—(The Chairman.)
Ordered, That at this day=s sitting, the Committee do take evidence in private.—(The Chairman.)
Bank of England November 2001 Inflation Report: Mr Roger Bootle, Managing Director, Capital Economics, Professor David Miles, Professor of Economics, Imperial College, University of London, Professor Christopher Pissarides, Professor of Economics, London School of Economics, and Mr David Walton, Chief European Economist, Goldman Sachs, Specialist Advisers, were examined.

[Adjourned till Tuesday 27 November at Ten o=clock.

TUESDAY 27 NOVEMBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Bank of England November 2001 Inflation Report: The Rt Hon Sir Edward George, Chairman, and Mr Mervyn King, Mr Ian Plenderleith, Mr Christopher Alsopp, Ms Kate Barker, and Dr Sushil Wadwhani, Members of the Monetary Policy Committee of the Bank of England, were examined.

[Adjourned till Tuesday 4 December at Ten o=clock.

TUESDAY 4 DECEMBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Eighth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Third Report of Session 2000-01 [HM Treasury] be appended to the Report.—(The Chairman.)
The Committee deliberated.
Pre-Budget Report 2001: Mr Gus O=Donnell, Managing Director, Macroeconomic Policy and International Finance, Mr Nicholas Holgate, Director, Welfare Reform, Mr Adam Sharples, Director, Public Spending, Mr Alex Gibbs, Head of Tax Policy Team and Mr John Kingman, Head of Productivity Team, HM Treasury, were examined.

[Adjourned till Thursday 6 December at a quarter past Nine o=clock.

THURSDAY 6 DECEMBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr David Laws
 

Mr James Plaskitt

Mr David Ruffley

The Committee deliberated.
Pre-Budget Report 2001: Mr Andrew Dilnot, Institute for Fiscal Studies, Mr Ed Troup, Simmons & Simmons, and Mr Martin Weale, National Institute of Economic and Social Research were examined.
Pre-Budget Report 2001: Mr Geoffrey Dicks, Royal Bank of Scotland and Mr David Walton, Goldman Sachs International, were examined; Mr Martin Weale, National Institute of Economic and Social Research was further examined.

[Adjourned till Tuesday 11 December at Ten o=clock.

TUESDAY 11 DECEMBER 2001
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Michael Fallon

Mr David Laws

Kali Mountford
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That the Chairman, Mr Beard and Mr Tyrie do visit the Russian Duma from 17-19 February 2002.—(The Chairman.)
Pre-Budget Report 2001: The Rt Hon Gordon Brown, a Member of the House, Chancellor of the Exchequer, and Mr Ed Balls, Chief Economic Adviser, and Mr Nicholas Macpherson, Managing Director, Public Services, HM Treasury, were examined and Mr Gus O=Donnell, Managing Director, Macroeconomic Policy and International Finance, and Mr Nicholas Holgate, Director, Welfare Reform, HM Treasury, were further examined.

[Adjourned till Tuesday 15 January at Ten o=clock.

TUESDAY 15 JANUARY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon
 

Mr David Laws

Dr Nick Palmer

Mr James Plaskitt

The Committee deliberated.
Review of Departmental Reports: Rt Hon Andrew Smith, a Member of the House, Chief Secretary to the Treasury was examined.; Mr Adam Sharples, Director, Expenditure Policy, HM Treasury, was further examined.

[Adjourned till Tuesday 22 January 2002 at Ten o'clock

TUESDAY 22 JANUARY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr George Mudie
 

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Proposed Takeover of London International Financial Futures and Options Exchange (LIFFE) by Euronext NV: Sir Brian Williamson, Chairman, and Mr Hugh Freedberg, Chief Executive, LIFFE, Mr Jean-François Théodore, Chairman (Managing Board) and Chief Executive, and Mr George Möller, Chief Operating Officer, Euronext NV, were examined.
Proposed Takeover of London International Financial Futures and Options Exchange (LIFFE) by Euronext NV: Ms Clara Furse, Chief Executive, Mr Martin Wheatley, Deputy Chief Executive, and Mr Jonathan Howell, Director of Finance, The London Stock Exchange, were examined.

[Adjourned till Tuesday 5 February at Ten o=oclock.

TUESDAY 5 FEBRUARY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Michael Fallon

Mr David Laws

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That, in the light of the Enron collapse, the Committee do inquire into the arrangements for financial regulation of public limited companies in the United Kingdom.—(The Chairman.)
Roles of the Practitioner Panel and the Consumer Panel of the Financial Services Authority: Mr Donald Brydon, OBE, Chairman, the Financial Services Authority Practitioner Panel, was examined.
Roles of the Practitioner Panel and the Consumer Panel of the Financial Services Authority: Mr Colin Brown, Chairman, the Financial Services Authority Consumer Panel, was examined.

[Adjourned till Tuesday 12 February at Ten o=clock.

TUESDAY 12 FEBRUARY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.

[Adjourned till Tuesday 26 February at a quarter to Ten o=clock.

TUESDAY 26 FEBRUARY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr David Laws

Dr Nick Palmer
 

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Report from the Sub-committee (The 2001 Census in England and Wales) brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 59 read and agreed to.
Resolved, That the Report be the First Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Appendices to the Minutes of Evidence taken before the Sub-committee be reported to the House.—(The Chairman.)
February 2002 Inflation Report: Mr Ciarán Barr, Chief UK Economist, Deutsche Bank, Mr Roger Bootle, Managing Director, Capital Economics, Professor Christopher Pissarides, Professor of Economics, London School of Economics, Professor Andrew Scott, Associate Professor of Economics, London Business School; and Ms Bridget Rosewell, Volterra Consulting, Specialist Advisers, were examined.

[Adjourned till Thursday 28 February at Ten o=clock.

THURSDAY 28 FEBRUARY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws
 

Dr Nick Palmer

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
February 2002 Inflation Report: The Rt. Hon. Sir Edward George, Chairman, and Mr Christopher Alsopp, Mr Charles Bean, Mr Mervyn King, and Professor Stephen Nickell, Members of the Monetary Policy Committee of the Bank of England, were examined.

[Adjourned till Tuesday 12 March at Ten o=clock.

TUESDAY 12 MARCH 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws
 

Mr George Mudie

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That the Sub-committee undertake a preliminary inquiry into technical matters relating to regional spending.—(The Chairman.)
Resolved, That the Committee do conduct an inquiry into the five economic tests and the preliminary technical work already under way in the Treasury, as part of a broader inquiry into the European Central Bank and the Stability and Growth Pact.—(The Chairman.)

[Adjourned till Tuesday 19 March at Ten o=clock.

TUESDAY 19 MARCH 2002
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr David Laws
 

Mr George Mudie

Mr James Plaskitt

The Committee deliberated.
Resolved, That the Chairman do visit Brussels on 16 April to attend the meeting of the Committee on Economic and Monetary Affairs of the European Parliament.—(The Chairman.)
Resolved, That the Chairman do visit Washington in June to attend the meetings of the Presidents and Chairpersons of the Parliamentary budget committees of the OECD.—(The Chairman.)
Ordered, That the Chairman do seek the approval of the Liaison Committee for expenditure in connection with the said visits.—(The Chairman.)
Resolved, That the Committee do inquire into the 2002 Budget.—(The Chairman.)
Resolved, That the Committee do inquire into banking, consumers and small businesses.—(The Chairman.)
The Committee further deliberated.

[Adjourned till Wednesday 10 April at Ten o=clock.

WEDNESDAY 10 APRIL 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon
 

Mr James Plaskitt

Mr Andrew Tyrie

The Committee deliberated.

Resolved, That the Committee do inquire into the UK and the International Monetary Fund.—(The Chairman.)
Ordered, That the International Accounting Standards Board and the Chartered Institute of Public Finance and Accountancy have leave to publish memoranda submitted by them, in accordance with the provisions of Standing Order No. 135(1).—(The Chairman.)
The Committee further deliberated.
Ordered, That memoranda received on the financial regulation of public limited companies be reported to the House.—(The Chairman.)
Financial Regulation of Public Limited Companies: Mr Michael Groom, President, and Mr Peter Wyman, Vice President, Institute of Chartered Accountants in England and Wales, Mr David Bishop, Member of the Council and Mr Roger Adams, Technical Director, Chartered Institute of Certified Accountants, and Mr Bruce Epsley, President, and Mr Richard Mallett, Director of Technical Development, Chartered Institute of Management Accountants, were examined.

[Adjourned till Tuesday 16 April at a quarter past Nine o=clock.

TUESDAY 16 APRIL 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Michael Fallon

Mr David Laws
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

The Committee deliberated.
Resolved, That the Sub-committee do visit Ireland in connection with its inquiry into Inland Revenue Self-Assessment Systems.—(The Chairman.)
Ordered, That the Chairman do seek the approval of the Liaison Committee for expenditure in connection with the said visit.—(The Chairman.)
Financial Regulations of Public Limited Companies: Professor Prem Sikka, Professor of Accounting, University of Essex, Mrs Stella Fearnley, Reader in Accountancy, Portsmouth Business School, Mr Richard Brandt, Senior Research Fellow, Portsmouth Business School, and Professor Vivien Beattie, Professor of Accounting, University of Stirling, were examined.

[Adjourned till Monday 22 April at a quarter to Four o=clock.

MONDAY 22 APRIL 2002
Members present:

Mr John McFall, in the Chair


Mr James Plaskitt
 

Mr Andrew Tyrie

The Committee deliberated.
Budget 2002: Mr Ciarán Barr, Deutsche Bank, Professor Tim Congdon, Lombard Street Research, Mr Carl Emmerson, Institute for Fiscal Studies, and Mr Martin Weale, National Institute of Economic and Social Research, were examined.
Budget 2002: Mr John Appleby, The King=s Fund, Mr Andrew Dilnot, Institute for Fiscal Studies, Mary O=Mahony, National Institute of Economic and Social Research, Professor Steven Wilcox, Joseph Rowntree Foundation, and Mr Edward Troup, Simmons and Simmons, were examined.

[Adjourned till Tuesday 23 April at Ten o=clock.

TUESDAY 23 APRIL 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr Andrew Tyrie

The Committee deliberated.
Budget 2002: Mr Gus O=Donnell, Managing Director, Macro-economic Policy and International Finance, Mr Nicholas MacPherson, Managing Director, Public Services, Mr Nicholas Holgate, Director of Welfare Reform, Mr Alex Gibbs, Head of Tax Policy, and Mr John Kingman, Head of Productivity Team, HM Treasury, were examined.

[Adjourned till Wednesday 24 April at a quarter to Four o=clock.

WEDNESDAY 24 APRIL 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Budget 2002: Rt Hon Gordon Brown, a Member of the House, Chancellor of the Exchequer, and Mr Ed Balls, Chief Economic Adviser, HM Treasury, were examined; Mr Gus O=Donnell, Managing Director, Macro-Economic Policy and International Finance, Mr Nicholas Holgate, Director of Welfare Reform, and Mr Alex Gibbs, Head of Tax Policy, HM Treasury, were further examined.

[Adjourned till Monday 29 April at a quarter to Four o=clock.

MONDAY 29 APRIL 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon
 

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.

Draft Report (Budget 2002), proposed by the Chairman, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraph 1 read, amended and agreed to.
Paragraphs 2 to 8 read and agreed to.
Paragraphs 9 read, amended and agreed to.
Paragraph divided (now paragraphs 9 and 10)
Paragraphs 10 to 13 (now paragraphs 11 to 14) read and agreed to.
Paragraphs 14 read, as follows:
"Mr O=Donnell said that although the Treasury does not seek to achieve "fine-tuning with fiscal policy (although one of the Government=s key objectives for fiscal policy is, "over the short term, to support monetary policy"), he believed that "the Budget will help remedy these imbalances. According to the Treasury, the Budget would increase Government consumption, which has a particularly low import content both absolutely and relative to consumer demand, while consumer spending will Aease gradually@ during the second half of 2002, with further decreases in the rate of household consumption growth in 2003 and 2004. The Treasury attributes this to the effects of lower bonuses, moderating house price inflation and the lagged effects of past falls in equity prices. Mr O=Donnell added that, although the increases in National Insurance contributions would not take effect until the next financial year, "when there is talk in the newspapers about increases in taxes, people may look at their consumption plans going forward"; in effect, people may be encouraged to adjust downwards their consumption ahead of the tax increases, by, for example, saving more in order to allow smoothing of their consumption levels over the medium-term. Mr Barr was sceptical of the Treasury=s overall rationale, viewing it as Ainteresting@ that there are now "both [monetary and fiscal] sides of policy making ... saying to us that [household] consumption is going to slow very aggressively next year ... without really saying how that is going to happen@. The Treasury acknowledge that Aconsiderable uncertainty still surrounds the outlook for consumption@. We note the view that, given the intention to raise revenue in this Budget, the Treasury may have missed an opportunity to address fully the issue of strong consumer demand, increasing the likelihood that the imbalances in the economy will persist.@
Amendment proposed in line 19, to leave out from the word Aconsumption@ to the end of line 22 and to insert the words—
AAlthough the Budget raises additional revenue from direct taxation from 2003 onwards, we note that the Treasury admits to considerable uncertainty about the outlook for consumption. We are therefore not entirely sure of the grounds on which the Treasury claims that consumption will slow. Consequently, we are not clear that the Budget makes any significant contribution to correcting the imbalances in the economy.@—(Mr David Ruffley.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

Paragraph, as amended, agreed to (now paragraph 15).
Paragraphs 15 to 17 (now paragraphs 16 to 18) read and agreed to.
Paragraph 18 (now paragraph 19) read and postponed.
Paragraph 19 (now paragraph 20) read and agreed to.
Paragraphs 20 and 21 (now paragraphs 21 and 22) read , amended and agreed to.
Paragraph 22 (now paragraph 23) read and agreed to.
Paragraph 23 (now paragraph 24) read, as follows:
AIt is perhaps ironic, given recent errors in forecasting the PSNB, that the Treasury has decided to change its assumption of the trend rate of growth this year. As the table below illustrates, in recent years the Treasury has been too pessimistic in regard to the future position of the public finances in its one-year ahead forecasts in. In November 2000, Mr Balls defended the Treasury=s PSNB forecasting record to our predecessor Committee, saying that Aour assumptions are cautious so that should always mean that the outturns are better than our projections, so they are not mistakes at all@. However, these cautious assumptions, including of course the 23 per cent trend growth rate assumption, also underpinned the Budget 2001 projection which turned out to be the first one-year ahead Treasury PSNB projection that was too optimistic. If the Treasury had used its new assumption of the trend growth rate, this error would have been even larger. If the less cautious assumption of the trend growth rate adopted in Budget 2002 is maintained, it may be advisable for the Treasury to increase the reserves provision held as the AME margin and DEL reserve.@
Amendment proposed, in line 13, to leave out from the word Ato@ to the end of the paragraph and to insert:—
Amaintain a budget strategy which allows for a continued projection of surpluses on the current budget balance, in order to ensure that the fiscal rules are still met in the event of GDP growth being significantly weaker than expected.@—(Mr David Laws.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 5

Mr Nigel Beard

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Question put, That the paragraph, as amended, stand part of the Report.
The Committee divided.


Ayes, 5

Mr Nigel Beard

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Paragraph 24 (now paragraph 25) read and agreed to.
A paragraph—(The Chairman)—brought up, read the first time and postponed.
Another paragraph—(Mr Andrew Tyrie)—brought up, read the first time and postponed.
Paragraph 25 (now paragraph 28) read as follows:
AThe Chancellor=s announcement of a five-year plan for health spending to 2007-08 means that the final year of the spending plan, namely 2007-08, is not covered by the Treasury=s medium-term projections of the public finances. The IFS estimate that the extra health spending in 2007-08 will cost Aan additional 0.7% of GDP, which in current terms is approximately ,7bn@, although cautions that this may not necessarily lead to financing difficulties at that time. The Chancellor told the Committee that Aby tradition we will publish the 2007-08 borrowing requirement at the time of the November pre-Budget Report@. Mr Balls highlighted that the figures for the year beyond the 2002 Spending Review included in the Government=s projections, namely 2006-07, take into account the extra planned health spending, adding that Aobviously that trend and that number continues to 2007-08 too@, although these figures are not stated in the Red Book. Mr Balls also highlighted that Annex A of the Red Book shows the illustrative long-term fiscal projections, where the Red Book states that the Treasury=s Along-term fiscal projections ... show that the UK=s public finances are broadly sustainable over the long term@. However, specific figures for 2007-08 are not available for Parliament to scrutinise, even though the Treasury=s Code for Fiscal Stability imposes no restriction on the maximum number of years for the Treasury=s projections of the public finances. It would be helpful if the Treasury=s medium-term fiscal projections covered at least those years where spending or taxation policies have been stated.@
An Amendment proposed, in line 8, after the word AReport@ to insert the words—
ANevertheless we note that the Chancellor in his evidence did not say whether health spending in 2007-08 was covered by existing tax plans or whether new tax, borrowing or expenditure changes in the future might be necessary.—(Mr David Ruffley.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4,

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

Another Amendment proposed in line 17, to leave out from the word Afinances@ to the end of the paragraph and insert:—
AIf specific spending figures are to be committed on a five year basis, we want to see that complete period covered by the Treasury=s published medium-term fiscal projections. Given the significance of the additional spending on the NHS, the Chancellor should have published at the time of the Budget the borrowing requirement for the financial year 2007–08.@—(Mr Michael Fallon.)
Question proposed, That the Amendment be made.
Amendment proposed to the proposed Amendment, in line 2, to leave out from the word Aprojections@ to the end.—(Mr Jim Cousins.)
Question put, That the Amendment to the proposed Amendment be made.
The Committee divided.


Ayes, 2

Mr Nigel Beard

Mr Jim Cousins
 

Noes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie

Question put, That the proposed Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

 

Question put, That the paragraph, as amended, stand part of the Report.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

 

Paragraphs 26 and 27 (now paragraphs 29 and 30) read, amended and agreed to.
Paragraphs 28 to 33 (now paragraphs 31 to 36) read and agreed to.
Paragraph 34 (now paragraph 37) read, amended and agreed to.
Paragraph 35 (now paragraph 38) read and agreed to.
Another paragraph—(Mr Michael Fallon)—brought up, read the first and second time, and inserted (now paragraph 39).
Paragraph 36 (now paragraph 40) read, amended and agreed to.
Paragraph 37 read as follows:
AIn respect to the continuing imbalances in the economy, Mr Barr said that Awith the Chancellor deciding to largely bypass many voters in his bid to raise extra revenue, the burden is on the MPC to slow above trend household spending@. As a result, Mr Barr increased his forecast for the Bank of England repo rate to 5 per cent by the end of this year, from 4.5 per cent. Schroders commented that, in the light of the Budget, Athe job of slowing consumption and thereby rebalancing the economy now lies with the Bank of England@. As discussed above, however, there has been only a small change in the projections of the fiscal stance since the Pre-Budget Report and therefore, in this respect, the Budget did not contain any major surprises for the MPC.@
Amendment proposed, in line 9, at the end to insert the words—
AHowever, we believe that the European Commission and ECOFIN should be urged to interpret a country=s conformity with the Stability and Growth Pact not by considering annual budget deficits in isolation but after considering their implications for a sustainable level of Government debt. Otherwise, a strict demand for balanced budgets will unnecessarily and unrealistically preclude Government borrowing for investment@.—(Mr Nigel Beard.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 2

Mr Nigel Beard

Mr Jim Cousins
 

Noes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie

Paragraph agreed to (now paragraph 41).
Paragraphs 38 to 40 (now paragraphs 42 to 44) read and agreed to.
Paragraph 41 (now paragraph 45) read, amended and agreed to.
Paragraphs 42 to 48 (now paragraphs 46 to 52) read and agreed to.
Paragraph 49 read as follows:
AWe asked the Treasury whether, given the uncapped nature of the 1 per cent rise in NICs, it was still possible to regard the upper earnings and profits limits as a ceiling for NICs. Treasury officials told us that the Chancellor had described exactly the situation. Employees and the self-employed will not be paying the full rate they pay on earnings or profits up to the upper limit, but merely the 1 per cent rate above. They said that the definition of the upper earning limit on NICs is Athe point at which 11 per cent stops and 1 per cent starts with respect to employees.@
Amendment proposed, in line 7, at the end, to add the words:
AThis view seems to be at variance with the previous, widely accepted, definition of the upper earnings limit, which was that it was the maximum amount of weekly earnings in respect of which employee contributions are payable.@—(Mr David Laws.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

 

Paragraph, as amended, agreed to (now paragraph 53).
Paragraph 50 (now paragraph 54) read as follows:
AThe proposed increases in NICs for employees and the self-employed will deliver a tax increase to those groups that is very similar to a 1 per cent increase in the rates of income tax. However, unlike increases in income tax, increases in NICs will not affect better-off pensioners and those living off unearned income, who benefit from the insurance provided by the National Health Service, and may be in a position to make a contribution.@
An Amendment made.
Another Amendment proposed, in line 4, to leave out from the word Aincome@ to the end of the paragraph.C(Mr Nigel Beard.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 2

Mr Nigel Beard

Mr Jim Cousins
 

Noes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie

Another Amendment proposed, in line 6, at the end, to add the words:
AWe think that the Treasury has, as yet, failed to make the case for choosing a method of revenue raising (higher employer and employee National Insurance contributions) which excludes well-off pensioners and people living comfortably off unearned income from making a contribution to higher NHS spending.@—(Mr David Laws.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

 

Question put, That the paragraph, as amended, stand part of the Report.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

Motion made, and Question put, to leave out paragraphs 51 and 52.—(Mr Nigel Beard.)
The Committee divided.


Ayes, 2

Mr Nigel Beard

Mr Jim Cousins
 

Noes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie

Paragraph 51 (now paragraph 55) read as follows:
AWhile the upper earnings and profits limits for employees and the self-employed were uprated in the Budget, they will not apply to the 1 per cent increase in NICs. We note this departure from previous practice which could be viewed as a move of the national insurance contribution system towards that of general taxation.@
Amendment proposed, in line 2, after the word ANICs@ to insert the words:—
ATo insist, therefore, that the Upper Earnings ceiling remains intact seems to us mere sophistry.@—(Mr Michael Fallon.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

 

Question put, That the paragraph, as amended, stand part of the Report.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

 

Paragraph 52 (now paragraph 56) read.
Question put, That the paragraph stand part of the Report.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 2

Mr Nigel Beard

Mr Jim Cousins

 

 

Paragraphs 53 to 56 (now paragraphs 57 to 60) read and agreed to.
Another paragraph—(The Chairman)—brought up, read the first and second time, and inserted (now paragraph 61).
Another paragraph—(The Chairman)— brought up, read the first and second time, and inserted (now paragraph 62).
Another paragraph—(The Chairman)—brought up, read the first and second time, and inserted (now paragraph 63).
Paragraph 57 (now paragraph 64) read, amended and agreed to.
Paragraphs 58 and 59 (now paragraphs 65 and 66) read and agreed to.
Paragraph 60 (now paragraph 67) read, amended and agreed to.
Paragraph 61 (now paragraph 68) read as follows:
AOne of the measures in the 2000 Budget was a 0.3 per cent cut in employers= NICs through recycling revenue raised from the climate change levy. At the time, the Treasury considered that Athe lower National Insurance Contributions will act to promote employment opportunities... .@ In the light of this and the evidence we received from the CBI and others, we asked the Chancellor about the impact of the increase in employers= NICs on jobs. The Chancellor told us that, while an impact assessment had not been undertaken, he did not believe it would have a big impact on employment. The system of National Insurance had been reformed cutting the costs of employing someone. He expected that, with growth over the next period, the economy would still be in a position to create jobs.@
Amendment proposed, in line 10, at the end, to add the words:
AThe Chancellor has clearly reneged on his previous view that lower NICs can promote employment.@—(Mr Michael Fallon.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Question put, That the paragraph, as amended, stand part of the Report.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Another paragraph—(Mr David Laws)— brought up, read the first and second time, and inserted (now paragraph 69).
Paragraphs 62 and 63 (now paragraphs 70 and 71) read and agreed to.
Paragraph 64 read as follows:
AThe Chancellor told us that nine out of ten of the top foreign branches were paying no tax. The rules regarding the treatment of capital applied here are different to those applied elsewhere. The aim of this measure is to follow international practice and put us on a level playing-field with America, Germany, France and others. Some of the tax currently paid by foreign companies in their home country will not be paid there, but paid here instead, as in many cases they would be eligible for double taxation relief in their home jurisdiction. The Treasury told us that they did not anticipate these changes affecting the status of the City as a major centre for international financial transactions. On the question of consultation, the Treasury admitted that they had not yet consulted with the banks, but referred to a public consultation process at the OECD which they said international banks were well aware of.@
An Amendment made.
Another Amendment proposed, in line 11, at the end, to add the words:
AWe regret that the Treasury did not use the Pre-Budget Report 2001 to consult on measures such as the change in the taxation of foreign companies and the changes to the North Sea Oil tax regime. One of the principal reasons for introducing the Pre-Budget Report was to be able to carefully consult on tax matters before bringing proposals forward. We believe that the Treasury has unnecessarily missed an opportunity to consult on these measures in the Pre-Budget Report and we urge the Treasury to use the Pre-Budget Report in the future as part of a full consultative process.@—(Mr David Laws.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Another Amendment proposed to the paragraph as amended, at the end, to add the words:
AWe particularly deplore this lack of consultation with foreign banks in London.@—(Mr Michael Fallon.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Paragraph, as amended, agreed to (now paragraph 72).
Another paragraph—(Mr David Laws)—brought up and read the first time.
Question put, That the paragraph be read a second time.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Paragraph added (now paragraph 73).
Another paragraph—(The Chairman)—brought up, read the first and second time, and added (now paragraph 74).
Another paragraph—(The Chairman)—brought up and read as follows:
"The CBI told us that the new supplementary corporation tax charge of 10 per cent on profits was "both a surprise and a disappointment to CBI members, particularly as they had not been given the opportunity for prior consultation. The perceived financial risk of operating in the North Sea will be increased and it is likely that the profitability of recently completed investment projects will be adversely affected. The increase in first year capital allowances to 100 percent may be a plus, but is not enough to balance the negative effects of the tax rise. The possible abolition of North Sea Royalty should now be speeded up, preferably without the need for a lengthy consultation process."."
Amendment proposed, in line 5, after the word Aaffected@ to insert the words AWe agree@.—(Mr Andrew Tyrie.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Paragraph, as amended, divided and added (now paragraphs 75 and 76).
Another paragraph—(The Chairman)—brought up, read the first and second time, and added (now paragraph 77).
Another paragraph—(The Chairman)—brought up, read the first and second time, and added (now paragraph 78).
Another paragraph—(The Chairman)—brought up, read the first and second time, and added (now paragraph 79).
Postponed paragraph 18 again read.
Paragraph agreed to (now paragraph 19).
Postponed paragraph proposed by the Chairman again read.
Paragraph read a second time, amended and inserted (now paragraph 26).
Postponed paragraph proposed by Mr Andrew Tyrie again read as follows:
AIn addition, there is the issue of off-balance sheet finance. The accumulated and future PFI and PPP commitments amount to ,43.5 billion, a proportion of which represents contingent liabilities@.—(Mr Andew Tyrie.)
Question put, That the paragraph be read a second time.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Paragraph inserted (now paragraph 27).
Motion made, and Question put, That the Report, as amended, be the Second Report of the Committee to the House.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Motion made, and Question put, That the Chairman do make the Report to the House.
The Committee divided.


Ayes, 4

Mr Michael Fallon

Mr David Laws

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 1

Mr Jim Cousins

 

 

Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence taken before the Committee be reported to the House.—(The Chairman.)

[Adjourned till Wednesday 1 May at a quarter-to Four o=clock.

WEDNESDAY 1 MAY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Michael Fallon

Dr Nick Palmer
 

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That the Committee do inquire into the appointments to the Monetary Policy Committee of the Bank of England.—(The Chairman.)
The Committee deliberated.
Banking, consumers and small businesses: Ms Michelle Childs, Head, Policy Research, Ms Louise Hanson, Senior Public Affairs Officer, the Consumers= Association, and Mr Mike Naylor, Senior Researcher Which? Magazine, were examined.
Banking, consumers and small businesses: Mr John Walker, Policy Chairman, and Mr Stephen Alambritis, Head of Parliamentary Affairs, the Federation of Small Businesses, were examined.
Banking, consumers and small businesses: Mr Rory Murphy, Joint General Secretary, and Mr John Earls, Head of Research, UNIFI, were examined.

[Adjourned till Tuesday 14 May at Ten o=clock.

TUESDAY 14 MAY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Michael Fallon

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Report from the Sub-committee (The Office of Government Commerce), brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 39 read and agreed to.
Resolved, That the Report be the Third Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence taken before the Sub-committee be reported to the House.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Ninth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government's Response to the First Report from the Committee [2001 Census in England and Wales] be appended to the Report.—(The Chairman.)
Ordered, That the Institute of Chartered Accountants of Scotland have leave to publish its memorandum to the Committee=s inquiry into financial regulation of public limited companies, in accordance with the provisions of Standing Order No. 135(1).—(The Chairman.)
Banking, consumers and small businesses: Mr Matthew Barrett, Chief Executive, Barclays Bank plc, Mr Bill Dalton, Chief Executive, HSBC plc, Mr Peter Ellwood, Chief Executive, Lloyds TSB plc, and Mr Fred Goodwin, Chief Executive, the Royal Bank of Scotland plc, were examined.

[Adjourned till Tuesday 21 May at Ten o=clock.

TUESDAY 21 MAY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
The UK and the International Monetary Fund: Mr Stephen Pickford, Director, International Finance, HM Treasury, and Mr Tom Scholar, UK Executive Director to the International Monetary Fund, were examined.

[Adjourned till Wednesday 22 May at a quarter to Four o=clock.

WEDNESDAY 22 MAY 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That the Committee do inquire into the Spending Review 2002.—(The Chairman.)
Appointments to the Monetary Policy Committee of the Bank of England: Ms Marian Bell and Mr Paul Tucker, Members-designate of the Monetary Policy Committee, were examined.
The Committee further deliberated.
Draft Report (Appointment to the Monetary Policy Committee of the Bank of England of Ms Marian Bell and Mr Paul Tucker), proposed by the Chairman, brought up, and read the first time.
Ordered, That the draft report be read a second time, paragraph by paragraph.
Paragraphs 1 to 6 read and agreed to.
Resolved, That the Report be the Fourth Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.

[Adjourned till Tuesday 11 June at Ten o=clock.

TUESDAY 11 JUNE 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That the Committee do inquire into split capital investment trusts.—(The Chairman.)
The Committee further deliberated.
Bank of England May 2002 Inflation Report: Mr Roger Bootle, Managing Director, Capital Economics, Professor Sheila Dow, Professor of Economics, University of Stirling, Professor David Miles, Professor of Economics, Imperial College, University of London, and Mr David Walton, Chief European Economist, Goldman Sachs, Specialist Advisers, were examined.

[Adjourned till Thursday 13 June at a quarter past Nine o=clock.

THURSDAY 13 JUNE 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws
 

Mr George Mudie

Dr Nick Palmer

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Ordered, That the Accounting Standards Board have leave to publish the memorandum submitted by it relating to financial regulation of public limited companies, in accordance with the provisions of Standing Order No. 135(1).C(The Chairman.)
Bank of England May 2002 Inflation Report: Rt Hon Sir Edward George, Chairman, and Mr David Clementi, Mr Mervyn King, Ms Kate Barker, and Mr Stephen Nickell, Members of the Monetary Policy Committee of the Bank of England, were examined.

[Adjourned till Tuesday 18 June at Ten o=clock.

TUESDAY 18 JUNE 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr George Mudie

Mr James Plaskitt
 

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Banking, consumers and small businesses: Mr James Crosby, Chief Executive, HBOS, Mr Ian Harley, Chief Executive, Abbey National plc, and Mr Steve Targett, Chief Executive, National Australia Bank, were examined.

[Adjourned till Tuesday 25 June at Ten o=clock.

TUESDAY 25 JUNE 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws
 

Kali Mountford

Mr James Plaskitt

 

The Committee deliberated.
Ordered, That Professor Iain McLean, Professor of Politics, University of Oxford, be appointed to assist the Sub-committee in matters relating to regional spending.B(The Chairman.)
Ordered, That Professor David Vines, Professor of Economics, University of Oxford, be appointed to assist the Committee in matters relating to the UK and the International Monetary Fund.B(The Chairman.)
Financial Regulation of Public Limited Companies: Sir John Bourn KCB, Member, and Dr Colin Reeves CBE, Director, the Review Board, Accountancy Foundation, and Mr Richard Fleck, Vice-Chairman, and Mr John Grant, Executive Director, Auditing Practices Board, Accountancy Foundation, were examined.
Financial Regulation of Public Limited Companies: Mr Andrew Simms, Policy Director, and Ms Deborah Doane, Head of Corporate Accountability, the New Economics Foundation, were examined.

[Adjourned till Thursday 27 June at Ten o=clock.

THURSDAY 27 JUNE 2002
Members present:

Mr John McFall, in the Chair


Mr Michael Fallon

Kali Mountford

Mr George Mudie
 

Mr James Plaskitt

Mr Andrew Tyrie

The Committee deliberated.
The UK and the International Monetary Fund: Professor Marcus Miller, University of Warwick, Professor David Vines, University of Oxford, Mr Stewart Wallis, International Director of Oxfam GB, and Mr Alex Wilks, Coordinator, Bretton Wood Project, were examined.

[Adjourned till Tuesday 2 July at Ten o=clock.

TUESDAY 2 JULY 2002
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Ordered, That an uncorrected transcript of the evidence to be given on Thursday 4 July by Mr Horst Kohler, Managing Director of the International Monetary Fund, be placed on the Internet.—(The Chairman.)
Financial Regulation of Public Limited Companies: Lord Sharman of Redlynch, was examined.
Financial Regulation of Public Limited Companies: Ms Mary Keegan, Chairman, the Accounting Standards Board, and Sir David Tweedie, Chairman, the International Accounting Standards Board, were examined.
Financial Regulation of Public Limited Companies: Sir Howard Davies, Chairman, and Mr Michael Foot, Managing Director of the Deposit Takers and Markets Directorate and Head of Financial Supervision, the Financial Services Authority, were examined.
Financial Regulation of Public Limited Companies: Mr David Lawton, Head of Financial Stability and Markets and Mr David Loweth, Head of Central Accountancy, HM Treasury, and Mr John Grewe, Director, Financial Reporting Policy and Mr Richard Rogers, Director, Company Law and Investigations, Department of Trade and Industry, were examined.

[Adjourned till Thursday 4 July at a quarter to Ten o=clock.

THURSDAY 4 JULY 2002
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Resolved, That, pursuant to the Resolution of 12 March, the Committee review the working of the Economic and Monetary Union since January 1999 with particular reference to the Stability and Growth Pact and the European Central Bank and examine the implications for United Kingdom membership of the Single Currency; and examine the basis for the Chancellor of the Exchequer=s current assessment of the five economic tests, with a view to informing the House on those matters.—(The Chairman.)
The UK and the IMF: Mr Horst Kohler, Managing Director, the International Monetary Fund, was examined.

[Adjourned till Tuesday 9 July at Ten o=clock.

TUESDAY 9 JULY 2002
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Tenth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Second Report from the Committee [Budget 2002] be appended to the Report.—(The Chairman.)
The Committee further deliberated.

[Adjourned till Thursday 11 July at Ten o=clock.

THURSDAY 11 JULY 2002
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr Michael Fallon

Mr David Laws
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

The Committee deliberated.
Split Capital Investment Trusts: Mr Martin Gilbert, Managing Director, Mr Gary Marshall, Head of Sales and Marketing, and Mr Piers Currie, Marketing Director, Investment Trusts, Aberdeen Asset Management plc, were examined.
Split Capital Investment Trusts: Mr Anthony Townsend, Chairman, and Mr Daniel Godfrey, Director General, the Association of Investment Trust Companies, were examined.
Split Capital Investment Trusts: Mr John Tiner, Managing Director of the Consumer, Investment and Insurance Directorate, and Mr Ken Rushton, Director, Listings, the Financial Services Authority, were examined.

[Adjourned till Tuesday 16 July at Four o=clock.

TUESDAY 16 JULY 2002
Members present:

Mr John McFall, in the Chair


Mr Michael Fallon

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.

Resolved, That the Committee do visit the European Central Bank in Frankfurt in connection with its inquiry into Economic and Monetary Union.—(The Chairman.)
Ordered, That the Chairman do seek the approval of the Liaison Committee for expenditure in connection with the said visit.—(The Chairman.)
Draft Report (Banking, Consumers and Small Businesses) proposed by the Chairman, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraph 1 read, amended and agreed to
Paragraphs 2 to 5 read and agreed to.
Paragraph 6 read, amended and agreed to.
Paragraph 7 read and agreed to.
Paragraph 8 read, amended and agreed to.
A paragraph—(Kali Mountford)—brought up, read the first and second time, and inserted (now paragraph 9).
Paragraph 9 read as follows:
"The AUniversal Bank@, operated through Post Offices, is intended to provide banking services to those people not currently served by financial institutions, often because of a poor credit history. The four largest clearing banks have agreed to make financial contributions towards the running of the AUniversal Bank@. However Barclays expressed the view that it is an off-balance-sheet tax on its shareholders and customers. Unlike Basic Bank accounts, the AUniversal Bank@ does not offer credit scoring, as a result it will be difficult for people to graduate from the AUniversal Bank@ account to a full bank account. The Committee welcomes the commitment of the major banks to the AUniversal Bank@. However, it recognises that the limited scope of services is likely to be of interest to a minority of potential banking customers, and will in practice for the most part be used for those unable to access banking services through a commercial service provider. The AUniversal Bank@ is likely to be a long-term commitment, as it will not be easy for people to graduate to full bank accounts, consequently the long-term success of the AUniversal Bank@ may rely upon the continuing strength of the Post Office network."
An Amendment made.
Another Amendment made, in line 8 by inserting after the word ABank@ the words Abut concludes that the AUniversal Bank@ is primarily an attempt to bolster Post Office business and to preserve access to pensions and benefits where such access would be lost by Post Office closures. Furthermore, we are concerned that this duplicates rather than complements the basic bank account."
Another Amendment proposed, after the words so inserted, to insert the words AWe note the costs, incurred without legislation, on the larger clearing banks to fund the AUniversal Bank@.C(Mr Michael Fallon.)
Question put, That the Amendment be made.
The Committee divided.


Ayes, 3

Mr Michael Fallon

Mr David Ruffley

Mr Andrew Tyrie
 

Noes, 5

Mr David Laws

Kali Mountford

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Other Amendments made.
Paragraph, as amended, agreed to and divided (now paragraphs 10 and 11).
Paragraph 10 (now paragraph 12) read and agreed to.
Paragraph 11 (now paragraph 13) read, amended and agreed to.
Paragraphs 12 and 13 postponed.
Paragraph 14 read, amended and agreed to.
Postponed paragraph 12 again read.
Paragraph amended, agreed to and transferred (now paragraph 15).
Postponed paragraph 13 again read.
Paragraph agreed to and transferred (now paragraph 16).
Paragraphs 15 to 19 (now paragraphs 17 to 21) read, amended and agreed to.
Paragraphs 20 and 21 (now paragraphs 22 and 23) read and agreed to.
Another paragraph—(Mr Michael Fallon)—brought up, read the first and second time, and inserted (now paragraph 24).
Paragraph 22 (now paragraph 25) read and agreed to.
Paragraph 23 (now paragraph 26) read, amended and agreed to.
Paragraphs 24 to 29 (now paragraphs 27 to 32) read and agreed to.
Paragraphs 30 and 31 (now paragraphs 33 and 34) read, amended and agreed to.
Paragraphs 32 to 35 (now paragraphs 35 to 38) read and agreed to.
Paragraph 36 (now paragraph 39) read, amended and agreed to.
Paragraphs 37 to 39 (now paragraphs 40 to 42) read and agreed to.
Paragraph 40 (now paragraph 43) read, amended and agreed to.
Paragraphs 41 to 44 (now paragraphs 44 to 47) read and agreed to.
Paragraph 45 (now paragraph 48) read, amended and agreed to.
Paragraph 46 (now paragraph 49) read and agreed to.
Paragraphs 47 and 48 (now paragraphs 50 and 51) read, amended and agreed to.
Resolved, That the Report, as amended, be the Fifth Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence be reported to the House.—(The Chairman.)

[Adjourned till Wednesday 17 July at a Ten o=clock.

WEDNESDAY 17 JULY 2002
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr David Laws

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr Andrew Tyrie

The Committee deliberated.
Spending Review 2002: Mr Andrew Dilnot, Director, Institute for Fiscal Studies, Professor Colin Talbot, Professor of Public Policy and Management, University of Glamorgan, and Mr David Walton, Chief European Economist, Goldman Sachs, were examined.
Spending Review 2002: Mr Nicholas Macpherson, Managing Director, Public Expenditure, and Mr Adam Sharples, Director, Public Services, HM Treasury, were examined.

[Adjourned till Thursday 18 July at half past Nine o=clock.

THURSDAY 18 JULY 2002
[MORNING MEETING]
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Report (Financial Regulation of Public Limited Companies), proposed by the Chairman, brought up and read.
Ordered, that the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 4 read and agreed to.
Paragraph 5 read, amended and agreed to.
Paragraphs 6 to 10 read and agreed to.
Paragraphs 11 to 13 read, amended and agreed to.
Paragraphs 14 to 16 read and agreed to.
Paragraph 17 read, amended and agreed to.
Paragraph 18 read, amended and agreed to.
Paragraph divided (now paragraphs 18 and 19).
Paragraphs 19 and 20 (now paragraphs 20 and 21) read and agreed to.
Paragraph 21 (now paragraph 22) read, amended and agreed to.
Paragraphs 22 to 25 (now paragraphs 23 to 26) read and agreed to.
A paragraph—(Mr Jim Cousins)—brought up, read the first and second time, and inserted (now paragraph 27).
Paragraphs 26 (now paragraph 28) read, amended and agreed to.
Paragraphs 27 and 28 (now paragraphs 29 and 30) read and agreed to.
Another paragraph—(The Chairman)— brought up, read the first and second time, amended and inserted (now paragraph 31).
Paragraph 29 (now paragraph 32) read, amended and agreed to.
Paragraphs 30 to 32 (now paragraphs 33 to 35) read and agreed to.
Paragraphs 33 and 34 (now paragraphs 36 and 37) read, amended and agreed to.
Paragraph 35 (now paragraph 38) read and agreed to.
Paragraph 36 read as follows:
AWe support the concept of a greater role for non-executive directors within the framework of a unitary board.@
Paragraph disagreed to.
Paragraphs 37 and 38 (now paragraphs 39 and 40) read and agreed to.
Paragraph 39 read.
Ordered, That consideration of the Chairman=s draft Report be now adjourned.—(The Chairman.)
Report to be further considered this day.

[Adjourned till this day at Two o=clock.

THURSDAY 18 JULY
[AFTERNOON SITTING]
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.

Spending Review 2002: The Rt Hon Gordon Brown, a Member of the House, Chancellor of the Exchequer, and Mr Ed Balls, Chief Economic Adviser to the Treasury, were examined. Mr Nicholas Macpherson, Managing Director, Public Expenditure, and Mr Adam Sharples, Director, Public Services, HM Treasury, were further examined.
Consideration of the Chairman=s draft Report (Financial Regulation of Public Limited Companies) resumed.
Paragraph 39 amended and agreed to (now paragraph 41).
Paragraphs 40 and 41 (now paragraphs 42 and 43) read and agreed to.
Paragraphs 42 to 44 (now paragraphs 44 to 46) read, amended and agreed to.
Paragraph 45 (now paragraph 47) read and agreed to.
Paragraph 46 (now paragraph 48) read, amended and agreed to.
Paragraphs 47 to 50 (now paragraphs 49 to 52) read and agreed to.
Paragraph 51 (now paragraph 53) read, amended and agreed to.
Paragraph 52 (now paragraph 54) read and agreed to.
Paragraphs 53 to 56 (now paragraphs 55 to 58) read, amended and agreed to.
Paragraph 57 read as follows:
AWe also think that there are public expectations of a greater degree of activity from the Government. DTI and Treasury witnesses left us with a sense of unease about the urgency with which the Government is tackling this matter.@
Paragraph disagreed to.
Paragraph 58 (now paragraph 59) read and agreed to.
Paragraph 59 (now paragraph 60) read, amended and agreed to.
Another paragraph—(Mr Jim Cousins)—brought up, read the first and second time and inserted (now paragraph 61).
Paragraph 60 (now paragraph 62) read and agreed to.
Resolved, That the Report, as amended, be the Sixth Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence be reported to the House.—(The Chairman.)

[Adjourned till Tuesday 23 July, immediately after the meeting of the Sub-committee.

TUESDAY 23 JULY 2002
Members present:

Mr John McFall, in the Chair


Mr Jim Cousins

Mr Michael Fallon
 

Dr Nick Palmer

Mr James Plaskitt

The Committee deliberated.
Draft Report (Departmental Reporting to Parliament) proposed by the Chairman, brought and read.
Ordered, That the Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 3 read, amended and agreed to.
Paragraphs 4 to 11 read and agreed to.
Paragraphs 12 and 13 read, amended and agreed to.
Paragraphs 14 to 19 read and agreed to.
Paragraphs 20 and 21 read, amended and agreed to.
Paragraphs 22 to 26 read and agreed to.
Paragraph 27 read, amended and agreed to.
Annex agreed to.
Resolved, That the title of the Report be changed to >Parliamentary Accountability of Departments=—(The Chairman.)
Resolved, That the Report, as amended, be the Seventh Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
A Paper was ordered to be appended to the Report.
Ordered, That the Appendix to the Report be reported to the House.—(The Chairman.)
Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence be reported to the House.—(The Chairman.)
Draft Report from the Sub-committee (Inland Revenue: Self Assessment Systems) brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 57 read and agreed to.
List of conclusions and recommendations read and agreed to.
Resolved, That the Report be the Eighth Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Appendices to the Minutes of Evidence taken before the Sub-committee be reported to the House.—(The Chairman.)

[Adjourned till Wednesday 25 September at Ten o=clock.

WEDNESDAY 25 SEPTEMBER 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Michael Fallon

Mr David Laws
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

The Committee deliberated.
Appointment of Sir Andrew Large as a Deputy Governor of the Bank of England: Sir Andrew Large, a Deputy Governor of the Bank of England, was examined.
Draft Report (Appointment of Sir Andrew Large as a Deputy Governor of the Bank of England and Member of the Monetary Policy Committee), proposed by the Chairman, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 10 read and agreed to.
Resolved, That the Report be the Ninth Report of the Committee to the House.
A Paper was ordered to be appended to the Report.
Ordered, That the Report and Appendix be printed, pursuant to Standing Order No.137.—(The Chairman.)
Resolved, That the Minutes of Evidence taken before the Committee on 25 September be reported to the House and printed, pursuant to Standing Order No.137.—(The Chairman.)

[Adjourned till Tuesday 15 October at Four o=clock.

TUESDAY 15 OCTOBER 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Michael Fallon

Mr David Laws

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Eleventh Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Third Report [The Office of Government Commerce] be appended to the Report.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Twelfth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Fifth Report [Banking, Consumers and Small Businesses] be appended to the Report.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Thirteenth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Sixth Report [Financial regulation of public limited companies] be appended to the Report.—(The Chairman.)
Draft Special Report, proposed by the Chairman, brought up, read the first and second time, and agreed to.
Resolved, That the Report be the Fourteenth Special Report of the Committee to the House.
Ordered, That the Chairman do make the Report to the House.
Ordered, That the Government=s Response to the Committee=s Eighth Report [Inland Revenue: Self Assessment Systems] be appended to the Report.—(The Chairman.)
The Committee further deliberated.
Resolved, That the Committee seek debates in Westminster Hall on the Fifth Report (Banking, Consumers and Small Businesses) and Sixth Report (Financial Regulation of Public Limited Companies).—(The Chairman.)
Resolved, That the Committee do inquire into the Pre-Budget Report 2002.—(The Chairman.)
The Committee further deliberated.

[Adjourned till Tuesday 22 October at Ten o=clock.

TUESDAY 22 OCTOBER 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Mr Andrew Tyrie declared a pecuniary interest in relation to the Committee's inquiry into split capital investment trusts as a director of BWD Rensburg.
Split Capital Investment Trusts: Mr Stephen Alexander, of Class Law, was examined.
Split Capital Investment Trusts: Mr John Tiner, Managing Director, Financial Services Authority, was further examined. Mr Walter Merricks, Chief Ombudsman, Financial Ombudsman Service, was examined.

[Adjourned till Tuesday 29 October at Ten o=clock.

TUESDAY 29 OCTOBER 2002
Members present:

Mr John McFall, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr Michael Fallon

Mr David Laws

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Committee deliberated.
Split Capital Investment Trusts: Mr Martin Gilbert, Chief Executive, Aberdeen Asset Management, Mr Piers Currie, Marketing Director, and Mr Gary Marshall, Managing Director, Aberdeen Asset Management plc, were further examined; Mr Christopher Fishwick, former Head of Global Closed End Funds, Aberdeen Asset Management plc, was examined.
Split Capital Investment Trusts: Mr John Hall, Chief Executive, Mr David Thomas, Head of Investment Trust team, and Mrs Leanne Bowden, Group Compliance Director, Brewin Dolphin Securities, and Mr Rolly Crawford, Head of Investment Trust Division, Collins Stewart Limited, were examined.
Split Capital Investment Trusts: Mr Anthony Townsend, Chairman, and Mr Daniel Godfrey, Director General, the Association of Investment Trust Companies, were further examined.
[Adjourned to Thursday 14 November at Twenty minutes to Ten o=clock.
PROCEEDINGS OF THE TREASURY SUB-COMMITTEE

WEDNESDAY 17 OCTOBER 2001
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr David Laws

Mr John McFall

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

The Sub-committee deliberated.
Resolved, That the Sub-committee do examine witnesses in public, except when it otherwise orders.C(The Chairman.)
Resolved, That the Sub-committee do inquire into the 2001 Census in England and Wales.C(The Chairman.)
Resolved, That the Sub-committee do inquire into the Office for Government Commerce.C(The Chairman.)
Resolved, That the Sub-committee do take evidence from the Paymaster General, Mr John Roques and HM Customs and Excise officials on the Roques Report.C(The Chairman.)

[Adjourned till Wednesday 24 October at a quarter to Five o=clock.

WEDNESDAY 24 OCTOBER 2001
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr David Laws

Mr John McFall

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr Andrew Tyrie

The Sub-committee deliberated.
The 2001 Census in England and Wales: Mr Len Cook, Registrar General for England and Wales, and National Statistician, and Mr John Pullinger, Director of Information Age Access Programme, Office for National Statistics, were examined.

[Adjourned till Wednesday 7 November at a quarter to Five o=clock.

WEDNESDAY 7 NOVEMBER 2001
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall
 

Kali Mountford

Mr James Plaskitt

 

The Sub-committee deliberated.
The Office of Government Commerce: Mr Peter Gershon, Chief Executive, and Mr Bryan Avery, Principal Establishments and Finance Officer, Office of Government Commerce, were examined.

[Adjourned till Wednesday 14 November at a quarter to Five o=clock.

WEDNESDAY 14 NOVEMBER 2001
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr David Laws

Mr John McFall
 

Mr James Plaskitt

Mr David Ruffley

 

The Sub-committee deliberated.
HM Customs and Excise—The Roques Report: Mr John Roques was examined.
HM Customs and Excise—The Roques Report: Mr Richard Broadbent, Chairman, HM Customs and Excise, was examined.

[Adjourned till Wednesday 21 November at a quarter to Five o=clock.

WEDNESDAY 21 NOVEMBER 2001
Members present:

Mr Michael Fallon, in the Chair


Mr John McFall

Dr Nick Palmer
 

Mr James Plaskitt

 

The Sub-committee deliberated.
The 2001 Census in England and Wales: Sir John Kingman, Chairman, and Ms Gill Eastabrook, Chief Executive, Statistics Commission, were examined.
The 2001 Census in England and Wales: Ms Caroline Ellis, UK Parliamentary Manager, and Ms Fazilet Hadi, Director of Policy, Royal National Institute for the Blind, were examined.

[Adjourned till Wednesday 28 November at a quarter to Five o=clock.

WEDNESDAY 28 NOVEMBER 2001
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr David Laws

Mr John McFall
 

Mr George Mudie

Mr David Ruffley

 

The Sub-committee deliberated.
HM Customs and Excise—The Roques Report: Dawn Primarolo, a Member of the House, Paymaster General, Mr Michael Hanson, Director of Strategy, and Mr Derek Hodgson, Head of Analysis, HM Customs and Excise, were examined.

[Adjourned till Wednesday 16 January at a quarter to Five o=clock.

WEDNESDAY 16 JANUARY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall
 

Dr Nick Palmer

Mr David Ruffley

 

The Sub-committee deliberated.
Resolved, That the Sub-committee do take evidence from HM Customs and Excise on its Departmental Report.C(The Chairman.)
Resolved, That the Sub-committee do take evidence from the Inland Revenue on its Departmental Report.C(The Chairman.)
Resolved, That the Sub-committee do inquire into the Inland Revenue=s Self-assessment systems for individuals and companies.C(The Chairman.)
The Office of Government Commerce: Mr David Mitchell, Head of Commercial Delivery Unit, Mr Ken Barton, Innovation and Policy Unit, and Ms Jo Connor, Major Programme Manager, BT Stepchange, were examined.
The Office of Government Commerce: Mr Ian Fletcher, Head of Policy, British Chambers of Commerce, and Ms Sarah Harris, Information Manager, Bristol Chamber of Commerce and Initiative, were examined.

[Adjourned till Wednesday 23 January at a quarter to Five o=clock.

WEDNESDAY 23 JANUARY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr George Mudie
 

Dr Nick Palmer

Mr David Ruffley

 

The Sub-committee deliberated.
The Office of Government Commerce: Mr Richard Douglas, Director of Finance, Mr Peter Drury, Head of the Information Policy Unit, Mr Andrew Holt, Head of the Information Services Group, Department of Health, and Mr Duncan Eaton, Chief Executive, NHS Purchasing and Supply Agency, were examined.
The Office of Government Commerce: Mr Martin Sykes, Commercial Director and Mr Mike Acheson, Head of Procurement Services Division, Department for Transport, Local Government and the Regions, were examined.

[Adjourned till Wednesday 13 February at a quarter to Five o=clock.

WEDNESDAY 13 FEBRUARY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr David Laws
 

Mr James Plaskitt

 

The Sub-committee deliberated.
Draft Report (The 2001 Census in England and Wales) proposed by the Chairman, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 59 read and agreed to.
Summary read and agreed to.
Resolved, That the Report be the First Report of the Sub-committee to the Committee.
Ordered, That the Chairman do make the Report to the Committee.
Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence taken before the Sub-committee be reported to the Committee.C(The Chairman.)

[Adjourned till Wednesday 6th March at a quarter to Five o=clock.

WEDNESDAY 6 MARCH 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall
 

Mr George Mudie

Mr David Ruffley

 

The Sub-committee deliberated.
The Inland Revenue=s Self-assessment systems for individuals and companies: Mr Stephen Banyard, Director, Local Services, Mr Stephen Jones, Director, Large Business Office, Mr Gordon Smith, Director, Receivables Management Service, and Mr John Gilbody, Assistant Director, Revenue Policy, Inland Revenue, were examined.

[Adjourned till Wednesday 13 March at a quarter to Five o=clock

WEDNESDAY 13 MARCH 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall
 

Dr Nick Palmer

Mr James Plaskitt

 

The Sub-committee deliberated.
Ordered, That the Chartered Institute of Taxation have leave to publish the Memorandum submitted by them in accordance with the provisions of Standing Order No. 135(1).C(The Chairman.)
The Inland Revenue=s Self-assessment systems for individuals and companies: Mr John Whiting, President, and Ms Heather Self, Deputy President, the Chartered Institute of Taxation, were examined.
The Inland Revenue=s Self-assessment systems for individuals and companies: Mr Robert Maas, Chairman of the Technical Committee, and Ms Anita Monteith, Technical Manager, Tax Faculty of the Institute of Chartered Accountants in England and Wales, were examined.

[Adjourned till Wednesday 20 March at a quarter to Five o=clock

WEDNESDAY 20 MARCH 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

The Sub-committee deliberated.
Resolved, That the Sub-committee do visit Ireland in connection with its inquiry into the Inland Revenue=s Self-assessment systems.C(The Chairman.)
Ordered, That the Tax Faculty of the Institute of Chartered Accountants in England and Wales have leave to publish the Memorandum submitted by them in accordance with the provisions of Standing Order No. 135(1).C(The Chairman.)
The Inland Revenue=s Self-assessment systems for individuals and companies: Ms Jane Moore, Technical Director, TaxAid, and Mr Robin Williamson, Coordinator, the Low Incomes Tax Reform Group, were examined.
The Inland Revenue=s Self-assessment systems for individuals and companies: Mr Neil Hamper, Chairman, Financial Services Committee, and Mr Simon Sweetman, Vice-Chairman, Financial Services Committee, of the Federation of Small Businesses, were examined.

[Adjourned till Wednesday 8 May at a quarter to Five o'clock.

WEDNESDAY 8 MAY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall

Kali Mountford

Mr George Mudie
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Sub-committee deliberated.
Draft Report (The Office of Government Commerce) proposed by the Chairman, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 39 read and agreed to.
Resolved, That the Report be the Second Report of the Sub-committee to the Committee.
Ordered, That the Chairman do make the Report to the Committee.
Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence taken before the Sub-committee be reported to the Committee.C(The Chairman.)

[Adjourned till Wednesday 22 May at a quarter to Five o=clock.

WEDNESDAY 22 MAY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall

Kali Mountford
 

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

Mr Andrew Tyrie

The Sub-committee deliberated.
The Inland Revenue=s Self-assessment systems for individuals and companies: Dawn Primarolo, a Member of the House, Paymaster General, was examined, and Mr Stephen Banyard, Director, Local Services, Inland Revenue, was further examined.

[Adjourned till Wednesday 12 June at a quarter to Five o=clock.

WEDNESDAY 12 JUNE 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

The Sub-committee deliberated.

[Adjourned till Wednesday 19 June at a quarter to Five o=clock.

WEDNESDAY 19 JUNE 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall
 

Kali Mountford

Mr James Plaskitt

 

The Sub-committee deliberated.
Inland Revenue: Expenditure Plans 2002-2004: Dawn Primarolo, a Member of the House, Paymaster General, Mr Dave Hartnett, Head of Revenue Policy, and Mr Stephen Banyard, Director, Local Services, Inland Revenue, were examined.
In the absence of the Chairman, Mr Nigel Beard was called to the Chair.

[Adjourned till Wednesday 26 June at a quarter to Five o=clock.

WEDNESDAY 26 JUNE 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall
 

Mr James Plaskitt

Mr David Ruffley

 

The Sub-committee deliberated.
Resolved, That the Sub-committee do take evidence from the Government Actuary=s Department and the Financial Services Authority on the Government Actuary=s Department=s Spring Report.C(The Chairman.)
HM Customs and Excise: Spring Report 2002: Mr Richard Broadbent, Chairman, and Mr David Spencer, Non Executive Director, HM Customs and Excise, were examined.
HM Customs and Excise: Spring Report 2002: Mr John Healey, a Member of the House, Economic Secretary to the Treasury, was examined.

[Adjourned till Wednesday 3 July at a quarter to Five o=clock.

WEDNESDAY 3 JULY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws

Mr John McFall
 

Kali Mountford

Mr George Mudie

Mr James Plaskitt

Mr Andrew Tyrie

The Sub-committee deliberated.
Regional Spending: Professor Iain McLean, Official Fellow, Nuffield College, and Professor of Politics, Oxford University, was examined.

[Adjourned till Wednesday 10 July at a quarter to Five o=clock.

WEDNESDAY 10 JULY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Jim Cousins

Mr David Laws

Mr John McFall
 

Kali Mountford

Dr Nick Palmer

Mr James Plaskitt

The Sub-committee deliberated.
Resolved, That the Sub-committee do take evidence from the Statistics Commission on its annual report.C(The Chairman.)
Resolved, That the Sub-committee do take evidence from the Office for National Statistics on reported problems with some official statistics.C(The Chairman.)
The Government Actuary=s Department: Mr Chris Daykin CB, Government Actuary, Mr Andrew Young, Deputy Government Actuary, the Government Actuary=s Department, and Mr John Tiner, Managing Director, Consumer, Investment and Insurance Directorate, and Mr William Hewitson, Senior Actuarial Adviser, the Financial Services Authority, were examined.

[Adjourned till Tuesday 23 July at Ten o=clock.

TUESDAY 23 JULY 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Jim Cousins

Mr John McFall
 

Dr Nick Palmer

Mr James Plaskitt

The Sub-committee deliberated.
Draft Report (Inland Revenue: Self Assessment Systems) proposed by the Chairman, brought up and read.
Ordered, That the draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 57 read and agreed to.
Resolved, That the Report be the Third Report of the Sub-committee to the Committee.
Ordered, That the Chairman do make the Report to the Committee.
Several Papers were ordered to be appended to the Minutes of Evidence.
Ordered, That the Appendices to the Minutes of Evidence taken before the Sub-committee be reported to the Committee.C(The Chairman.)

[Adjourned till Wednesday 16 October at a quarter to Five o=clock.

WEDNESDAY 16 OCTOBER 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr David Laws

Mr John McFall
 

Kali Mountford

Mr James Plaskitt

Mr David Ruffley

The Sub-committee deliberated.
Resolved, That the Sub-committee do take evidence from the Royal Mint on its Annual Report.C(The Chairman.)
Resolved, That the Sub-committee do take evidence from the Inland Revenue and HM Customs and Excise on the joint STEPS PFI project.C(The Chairman.)
Resolved, That the Sub-committee do take evidence from National Savings and Investments on its annual report.C(The Chairman.)
The Statistics Commission=s 2001-2002 Annual Report: Sir John Kingman, Chairman, and Miss Barbara Buckley, Secretary, the Statistics Commission, were examined.

[Adjourned till Wednesday 23 October at a quarter to Five o=clock.

WEDNESDAY 23 OCTOBER 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr David Laws
 

Mr John McFall

Mr George Mudie

Mr James Plaskitt

The Sub-committee deliberated.
Regional Spending: Mr Nicholas Macpherson, Managing Director Public Services, Mrs Ros Dunn, Head of Devolved Countries and Regions Team, Mr Allen Ritchie, Head of General Expenditure Statistics Team, Mr Mark Parkinson, Devolved Countries and Regions Team, HM Treasury, and Mr Ian Scotter, Head of Regional Policy, Office of the Deputy Prime Minister, were examined.

[Adjourned till Wednesday 30 October at a quarter to Five o=clock.

WEDNESDAY 30 OCTOBER 2002
Members present:

Mr Michael Fallon, in the Chair


Mr Nigel Beard

Mr Jim Cousins

Mr John McFall

Kali Mountford
 

Mr George Mudie

Dr Nick Palmer

Mr James Plaskitt

Mr David Ruffley

The Sub-committee deliberated.
Office for National Statistics Annual Report and Accounts 2001-02 and related matters: Mr Len Cook, National Statistician, Mr John Pullinger, Head of Social Statistics, and Mr Robin Lynch, Head of National Accounts, Office for National Statistics, were examined.
[Adjourned till Wednesday 20 November at a quarter to Five o=clock.
ANNEX
DECLARATION OF MEMBERS= INTERESTS (18 JULY 2001)
Mr Jim Cousins declared pecuniary interests as a Member of Harris Parliamentary Panel and the Political Opinion Panel of Business Planning and Research International (fees are donated elsewhere), and occasional income from writing and articles.
Mr Michael Fallon declared a pecuniary interests as director of Just Learning Holdings Ltd, and its subsidiaries: Learning Just ltd., Just Learning Ltd., Just Learning Developments Ltd. He also declared that he received fees from occasional journalism, lecturing and market research. He also declared a non-pecuniary interest as director of International Care and Relief.
Mr John McFall declared a pecuniary interest as a recipient of less than 25% of total General Election expenses from the Co-operative Party to his constituency party, and the use of property in Dumbarton for constituency office purposes.
Dr Nick Palmer declared pecuniary interests as parliamentary adviser to Novartis Services, Mr Richard Spinks, Chairman of vav.com (fees to cover newsletters and other constituency-related costs). Dr Palmer also declared a pecuniary interest from occasional articles and conference speeches, PLR royalties from three published books and occasional payments for participating in opinion poll surveys, and Millholt Investments Ltd.
Mr James Plaskitt declared a pecuniary interest as as non-executive director of De Brus Marketing.
Mr David Ruffley declared a pecuniary interest as a Member of Harris Parliamentary Panel, and fees from occasional journalism and lecturing, occasional opinion surveys conducted by Opinion Leader Research, MORI and NOP. He also declared a non-pecuniary interest of honorary membership of Suffolk Golf and Country Club.
Mr Andrew Tyrie declared a pecuniary interest from occasional journalism and lecturing, and as a shareholder in Falcolnland Limited. He declared a non-pecuniary interest as honorary membership of Chichester Yacht Club and the Goodwood Park and Country Club.
Other Members of the Committee declared no interests.
 
 
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