HC Deb 03 April 1995 vol 257 cc1460-9

`(1) In subsection (2) of section 199 of the Finance Act 1994, for "1996–97" there shall be substituted "1997–98 (2) In subsection (3) of section 199 of the Finance Act 1994, for "1996" there shall be substituted "1997".'.—[Ms Armstrong.]

Brought up, and read the First time.

Ms Armstrong

I beg to move, That the clause be read a Second time.

Madam Deputy Speaker (Dame Janet Fookes)

With this, it will be convenient to discuss amendment No. 7, in clause 95, page 107, line 37, leave out '1996–97' and insert '1997–98'.

Ms Armstrong

Once again, we return to self-assessment. We do so because we foresee problems for the Government who are in office when the proposed provisions take effect. The factor dominating many of our debates in Committee was the complexity of taxation legislation. Two of the aims of self-assessment are for the taxation process to be simplified and for it to be made open to taxpayers who will, in a new way, become liable for self-assessment. We remain unconvinced—we take this view because of the way in which the Government have framed the self-assessment procedure and developed the complexity of legislation in general—that self-assessment will work in the interests of taxpayers and will secure the advantages that the Government were trumpeting when they first introduced the principle.

The Opposition are in favour of the principle of self-assessment but we are wary of the proposed manner of implementation. There was a clear defeat for the Government in Committee—it added to the defeat that the Government suffered on the imposition of value added tax on domestic fuel, which took place on the Floor of the House—on an amendment tabled by the hon. Member for Beaconsfield (Mr. Smith), which is now known, as I understand it, as the Smith amendment. The amendment was tabled in an endeavour to simplify the mechanism of tax law.

Members of the Committee felt so strongly that the Government suffered a defeat. It is clear, however, that although members of the Committee pushed the Government to introduce measures to simplify taxation legislation, we are still a long way from having a mechanism whereby legislation can make taxation simpler.

This year's Finance Bill is one of the longest in history and is testament to the sheer complexity of British taxation legislation. The Bill was put down by commentators as one that contained little contentious legislation. The Budget was seen as simple, not too contentious and fairly neutral. Even so, in Committee, clause after clause was described as impenetrable and extremely complex. Even hon. Members who, before they came into the House, earned their professional reputations as interpreters of and advisers on tax law, made that point. Indeed, many of the people who have talked to us during the passage of the Bill have said that it is complex and have called for the legislation to be simplified. The Institute of Taxation is one of the many organisations that have made this case.

We are moving ahead quickly with self-assessment, despite the fact that both sides of the House recognise that taxation legislation has become increasingly complex and that it is increasingly difficult to thread one's way through it. That is the context in which self-assessment is being introduced. We are fearful about the introduction of self-assessment at this stage. We all acknowledge that it will be quite a culture shock for many taxpayers and that it may lead to all sorts of difficulties which will make taxpayers upset and which will make the Government of the day fairly unpopular.

The Financial Secretary has written to my hon. Friend the Member for Darlington (Mr. Milburn); my hon. Friend is not feeling well today which is why I am dealing with the letter. The Minister was answering questions raised in Committee relating to the introduction of self-assessment. I am especially concerned about two aspects. The first is risk analysis and how the Government intend to pursue that matter. The second is advertising and how the Government intend to ensure that people who will be eligible for self-assessment know what is coming and how to deal with it.

On the latter point, the Government say that they estimate that they will spend some £25 million over the next three years in a public information campaign, and that on present plans, they expect to spend some £15 million on advertising, mainly television and press. The remaining £10 million is intended to fund supporting activity and materials". The letter gives no indication of when the campaign will start and no indication that it has already started. If the Government are serious about their plans, they should be doing work now. The general public and the taxpayers concerned should already be aware of what will hit them next year.

We propose, through the new clause, simply that the Government should delay the introduction of these measures for a year so that the House can be assured that every possible means has been taken to ensure that taxpayers and Inland Revenue staff know what is expected of them. We also need to be sure that the cultural change, which the Government acknowledge is necessary, has begun, both in terms of the taxpayers involved and Inland Revenue staff. We remain unconvinced that this is happening.

In his letter the Minister raises the issue of risk analysis and he describes how the Government intend to monitor taxpayers who submit forms. Obviously, each individual form will not be analysed rigorously so the Government will make a risk analysis of the number of forms that should be examined and of what, in terms of an individual taxpayer, should lead Inland Revenue staff to examine the form. The Minister also says: the present assumption, on the basis of research to date, is that following risk analysis something like a third of returns will be considered for enquiry, with enquiries actually being made in something like two thirds of those cases. Of those enquiries, only a small percentage (as now) will involve a detailed examination of technical aspects or a full investigation of the underlying records. That is not very reassuring.

There is to be a wholly new means by which people will fill in their tax liability forms. We want to know to what research the Minister refers. Is it research from the pilot studies on self-assessment currently being undertaken? The risk analysis for existing forms may not be the same as that required for self-assessment.

The temptations may be different under self-assessment. I want to be reassured that the Government are absolutely sure that they have the right criteria for identifying the forms of taxpayers whom they want to examine rigorously in terms of whether they have submitted the forms properly and in terms of whether they are declaring what needs to be declared. I am not implying that everyone will automatically cheat—far from it—but I am making the point that this is a new means of assessment; we have not experienced this before.

We do not want to read headlines in the tabloid press about it having uncovered someone who has said on the self-assessment form that he is liable for a small amount of tax, but who has not declared all sorts of things. That would put the whole system into disrepute and would undermine the general public's confidence in it. It is, therefore, important that the Government err on the side of caution in the early years of the process. The Minister says in his letter that the figures are "highly provisional". I hope that they are and I hope that he can reassure us more than he did in the letter.

If self-assessment is part of the Government's drive to reduce the number of Inland Revenue staff, it will undoubtedly fail. The Inland Revenue currently proposes to reduce staff levels from 54,000 in April 1995 to 48,000 in April 1988 and to 42,000 by April 2001. The latter round of job cuts includes some 3,000 job losses as a result of the introduction of self-assessment. The Inland Revenue Staff Federation and the Opposition are pressing the Government to redeploy staff on the customer service side of simplified assessment as well as on compliance and investigation work instead of making them redundant.

We maintain our deep concern about the manner of the introduction of what was a sound principle. We back the sound principle, but we remain unconvinced by the Government's determination to introduce the measures in a serious way. Unless the Government can reassure us, we shall call on the House to vote to delay the introduction of the measures for a further year until we can be assured about the manner of implementation of this good principle.

7.30 pm
Mr. Robert Sheldon (Ashton-under-Lyne)

Like my hon. Friend the Member for Durham, North-West (Ms Armstrong), I am in favour of the principle of self-assessment. We have what has been called a Rolls-Royce system, whereby the Inland Revenue does all the work and taxpayers merely answer a few questions. The system will change fundamentally to one in which the taxpayer is asked to fill in forms on a range of matters in which they have not previously been involved. The United States, which is the model for this sort of thing, has been at it for a long time. Accountants who deal with people with modest tax dues are used to handling such matters. Here we are starting from scratch and there are serious problems.

The particular problem that I am worried about is the need for simpler legislation. My hon. Friend the Member for Durham, North-West was right to draw attention to that. One book in Somerset house contained all the income tax legislation for 1840 to 1855. Now, there is a whole shelf of regulations for each year. So the mass of problems has undoubtedly increased enormously. That means that the ordinary taxpayer has to be guided through. I do not believe that the work has been done sufficiently well until now.

As my hon. Friend rightly said, we are dealing with a decline in the morale of Inland Revenue staff. The Government cannot improve the staff's morale when they are cutting their jobs. To give them new responsibilities at such a time could be dangerous. So it is right to talk about the risk factor. There is the greater danger that the new system could become a matter of some disrepute. An attempt will be made to separate out fraud from genuine mistakes. There will be a large number of genuine mistakes. However much is spent on advertisements and background, a large number of people will come to self-assessment unprepared and will make mistakes. It will be a serious matter to separate mistakes which arise out of the novelty of the system from those which arise out of less worthy motives.

The legislation is being rushed. We have to be very careful about that. We have had a large number of pieces of legislation which have not been properly considered. Self-assessment is of such fundamental importance, particularly to a Government who talk about reducing the level of income tax, and especially when there will be further complications, that it needs further careful consideration.

The letter that the Financial Secretary sent to my hon. Friend the Member for Darlington (Mr. Milburn), which my hon. Friend the Member for Durham, North-West quoted, says: These broad figures are highly provisional". It is a bit late in the day to have highly provisional assessments. We should be coming to fairly clear conclusions at this stage. For those reasons, a delay such as that proposed in the new clause should be accepted.

Sir George Young

I am grateful to both hon. Members who have spoken for their support in principle of the move towards self-assessment. I agree with what they both said about the need to move towards a less complex system. I believe that self-assessment will be simpler. I remind the right hon. Member for Ashton-under-Lyne (Mr. Sheldon) that those taxpayers who do not want to go the final mile and assess themselves will not need to do so. They will be able to complete the return broadly as they do now and send it in a few months earlier. The Inland Revenue will do the final calculations for them.

I cannot accept the new clause. It would put back the introduction of self-assessment by one year from 1996–97 to 1997–98. A similar amendment was tabled last year, but was not moved in the Standing Committee.

I should like to respond to some of the points that were raised in the debate, particularly publicity and compliance. I can confirm that a substantial programme of publicity and education for taxpayers is planned and is already under way. So far, it has covered raising awareness and understanding of the changes among tax advisers through mailings and presentations. As I said in the debates in Standing Committee, a major advertising campaign, aimed directly at the 9 million people who will receive tax returns, using television and national press as well as specialist magazines, is due to be launched before the summer and will continue until well after self-assessment has been introduced. That will be backed by leaflets and video material.

As for compliance, a number of hon. Members have seen the letter which I wrote to the hon. Member for Darlington (Mr. Milburn), whom I am sorry to hear is not well. All tax returns will be checked. They will be subjected to an initial risk analysis which will take account, not only of the information in the taxpayers' return, but of information from third parties, previous history and so on. Following that initial risk analysis, a percentage of returns regarded as potentially presenting a high risk will be reviewed in detail for inquiry. In a percentage of those cases, inquiries will be started.

The inquiries needed to deal with the risks identified may range from straightforward clarification of individual items to more detailed examination of one or more technical issues, or right through to full investigation of the taxpayer's affairs. In addition, a small percentage of cases may be selected for inquiry on an entirely random basis to increase deterrence and to enable the Revenue to monitor compliance levels and identify new areas of risk. We have already devoted substantial resources to tackling tax evasion. There has been a 20 per cent. increase in compliance resources in the past six years. That will not change under self-assessment.

The hon. Member for Durham, North-West expressed anxiety about compliance. The Revenue's plans are at least to maintain present coverage levels for the more searching types of inquiry and, indeed, gradually to increase them both by switching resources into compliance work and by improving compliance training, organisation and working methods.

Let me confirm the good progress that is being made in the move towards self-assessment. Returns for the first year of self-assessment will not be issued until April 1997—still two years away. Nothing that has happened in the past few months has changed the Government's considered view that we should proceed to the planned timetable. Indeed as this year goes by, we are passing a number of milestones which would make it more difficult to adopt the course suggested by the new clause.

The main legislation was passed last year and more legislation is before the House now. Businesses and tax practitioners are gearing up for the changes in line with the published timetable. We are well on track for the implementation of self-assessment as planned. We have an extensive education and publicity programme. We have been testing the new tax return and the results of this latest consultation are encouraging. Some 90 per cent. of the volunteers completed the return well enough for the Inland Revenue to process it. However, there is still room for improving the tax return so the consultation and testing will continue throughout 1995, starting later this week with the full trial of self-assessment in Leicester, involving some 5,000 taxpayers.

In conclusion, delaying the start of self-assessment is not sensible in practical terms. It would only cause confusion and add a layer of complexity. Nor is it necessary. I urge the House to reject the new clause.

Question put, That the clause be read a Second time:—

The House divided: Ayes 244, Noes 277.

Division No. 124] [7.38 pm
Abbott, Ms Diane Clapham, Michael
Adams, Mrs Irene Clark, Dr David (South Shields)
Ainger, Nick Clarke Eric (Midlothian)
Ainsworth, Robert (Covty NE) Clarke, Tom (Monklands W)
Allen, Graham Clelland, David
Alton, David Clwyd, Mrs Ann
Anderson, Donald (Swansea E) Coffey, Ann
Anderson, Ms Janet (Ros'dale) Cook, Frank (Stockton N)
Armstrong, Hilary Cook, Robin (Livingston)
Ashton, Joe Corbett, Robin
Austin-Walker, John Corbyn, Jeremy
Banks, Tony (Newham NW) Corston, Jean
Barron, Kevin Cousins, Jim
Battle, John Cunliffe, Lawrence
Bayley, Hugh Cunningham, Jim (Covy SE)
Beckett, Rt Hon Margaret Dalyell, Tam
Beith, Rt Hon A J Darling, Alistair
Benn, Rt Hon Tony Davidson, Ian
Bennett, Andrew F Davies, Bryan (Oldham C'tral)
Benton, Joe Davies, Rt Hon Denzil (Llanelli)
Bermingham, Gerald Davies, Ron (Caerphilly)
Berry, Roger Denham, John
Betts, Clive Dewar, Donald
Blunkett, David Dixon, Don
Boateng, Paul Dobson, Frank
Bradley, Keith Donohoe, Brian H
Bray, Dr Jeremy Dowd, Jim
Brown, Gordon (Dunfermline E) Dunnachie, Jimmy
Brown, N (N'c'tle upon Tyne E) Dunwoody, Mrs Gwyneth
Burden, Richard Eagle, Ms Angela
Byers, Stephen Etherington, Bill
Caborn, Richard Ewing, Mrs Margaret
Callaghan, Jim Field, Frank (Birkenhead)
Campbell, Mrs Anne (C'bridge) Fisher, Mark
Campbell, Menzies (Fife NE) Flynn, Paul
Campbell-Savours, D N Foster, Rt Hon Derek
Canavan, Dennis Foster, Don (Bath)
Cann, Jamie Fraser, John
Chidgey, David Fyfe, Maria
Chisholm, Malcolm Galloway, George
Church, Judith Gapes, Mike
Garrett, John Meacher, Michael
George, Bruce Meale, Alan
Gerrard, Neil Michael, Alun
Gilbert, Rt Hon Dr John Michie, Bill (Sheffield Heeley)
Godman, Dr Norman A Michie, Mrs Ray (Argyll & Bute)
Godsiff, Roger Milburn, Alan
Golding, Mrs Llin Miller, Andrew
Gordon, Mildred Moonie, Dr Lewis
Graham, Thomas Morgan, Rhodri
Grant, Bernie (Tottenham) Morley, Elliot
Griffiths, Win (Bridgend) Morris, Rt Hon Alfred (Wy'nshawe)
Grocott, Bruce Morris, Estelle (B'ham Yardley)
Gunnell, John Morris, Rt Hon John (Aberavon)
Hain, Peter Mowlam, Marjorie
Hall, Mike Mudie, George
Hanson, David Mullin, Chris
Harvey, Nick Murphy, Paul
Hattersley, Rt Hon Roy Oakes, Rt Hon Gordon
Henderson, Doug O'Brien, Mike (N W'kshire)
Heppell, John O'Brien, William (Normanton)
Hill, Keith (Streatham) O'Hara, Edward
Hinchliffe, David Olner, Bill
Hodge, Margaret O'Neill, Martin
Hoey, Kate Parry, Robert
Home Robertson, John Pearson, Ian
Hoon, Geoffrey Pendry, Tom
Howarth, George (Knowsley North) Pickthall, Colin
Howells, Dr. Kim (Pontypridd) Pike, Peter L
Hoyle, Doug Pope, Greg
Hughes, Robert (Aberdeen N) Powell, Ray (Ogmore)
Hughes, Roy (Newport E) Prentice, Gordon (Pendle)
Hughes, Simon (Southwark) Prescott, Rt Hon John
Hutton, John Primarolo, Dawn
Illsley, Eric Purchase, Ken
Jackson, Glenda (H'stead) Quin, Ms Joyce
Jackson, Helen (Shefld, H) Radice, Giles
Jamieson, David Randall, Stuart
Janner, Greville Raynsford, Nick
Jones, Barry (Alyn and D'side) Redmond, Martin
Jones, Ieuan Wyn (Ynys Mon) Reid, Dr John
Jones, Lynne (B'ham S O) Robinson, Geoffrey (Co'try NW)
Jones, Martyn (Clwyd, SW) Roche, Mrs Barbara
Jones, Nigel (Cheltenham) Rogers, Allan
Jowell, Tessa Rooker, Jeff
Kaufman, Rt Hon Gerald Rooney, Terry
Keen, Alan Ross, Ernie (Dundee W)
Kennedy, Jane (Lpool Brdgn) Ross, William (E Londonderry)
Khabra, Piara S Rowlands, Ted
Kilfoyle, Peter Ruddock, Joan
Lestor, Joan (Eccles) Sedgemore, Brian
Lewis, Terry Sheerman, Barry
Liddell, Mrs Helen Sheldon, Rt Hon Robert
Litherland, Robert Shore, Rt Hon Peter
Lloyd, Tony (Stretford) Skinner, Dennis
Llwyd, Elfyn Smith, Andrew (Oxford E)
Lynne, Ms Liz Smith, Chris (Isl'ton S & F'sbury)
McAllion, John Smith, Llew (Blaenau Gwent)
McAvoy, Thomas Snape, Peter
McCartney, Ian Soley, Clive
McCrea, The Reverend William Spellar, John
McFall, John Steel, Rt Hon Sir David
McKelvey, William Steinberg, Gerry
Mackinlay, Andrew Stevenson, George
McMaster, Gordon Stott, Roger
MacShane, Denis Strang, Dr. Gavin
McWilliam, John Straw, Jack
Madden, Max Sutcliffe, Gerry
Maddock, Diana Taylor, Mrs Ann (Dewsbury)
Mahon, Alice Taylor, Matthew (Truro)
Mandelson, Peter Tipping, Paddy
Marek, Dr John Turner, Dennis
Marshall, David (Shettleston) Tyler, Paul
Marshall, Jim (Leicester, S) Vaz, Keith
Martin, Michael J (Springburn) Walker, Rt Hon Sir Harold
Martlew, Eric Walley, Joan
Maxton, John Wardell, Gareth (Gower)
Wareing, Robert N Worthington, Tony
Watson, Mike Wray, Jimmy
Wicks, Malcolm Young, David (Bolton SE)
Williams, Rt Hon Alan (Sw'n W)
Williams, Alan W (Carmarthen) Tellers for the Ayes:
Winnick, David Mr. Jon Owen Jones and
Wise, Audrey Mr. John Cummings.
Ainsworth, Peter (East Surrey) Duncan, Alan
Aitken, Rt Hon Jonathan Duncan-Smith, Iain
Alexander, Richard Dunn, Bob
Alison, Rt Hon Michael (Selby) Durant, Sir Anthony
Allason, Rupert (Torbay) Eggar, Rt Hon Tim
Ancram, Michael Elletson, Harold
Arbuthnot, James Emery, Rt Hon Sir Peter
Arnold, Jacques (Gravesham) Evans, Jonathan (Brecon)
Arnold, Sir Thomas (Hazel Grv) Evans, Nigel (Ribble Valley)
Ashby, David Evans, Roger (Monmouth)
Atkins, Robert Evennett, David
Atkinson, Peter (Hexham) Faber, David
Baker, Nicholas (North Dorset) Fabricant, Michael
Baldry, Tony Field, Barry (Isle of Wight)
Banks, Matthew (Southport) Fishburn, Dudley
Bates, Michael Forman, Nigel
Batiste, Spencer Forsyth, Rt Hon Michael (Stirling)
Bellingham, Henry Forth, Eric
Bendall, Vivian Fowler, Rt Hon Sir Norman
Beresford, Sir Paul Fox, Sir Marcus (Shipley)
Biffen, Rt Hon John Freeman, Rt Hon Roger
Bonsor, Sir Nicholas French, Douglas
Booth, Hartley Fry, Sir Peter
Boswell, Tim Gale, Roger
Bottomley, Peter (Eltham) Gallie, Phil
Bottomley, Rt Hon Virginia Gardiner, Sir George
Bowden, Sir Andrew Garel-Jones, Rt Hon Tristan
Bowis, John Garnier, Edward
Boyson, Rt Hon Sir Rhodes Gill, Christopher
Brandreth, Gyles Gillan, Cheryl
Brazier, Julian Goodson-Wickes, Dr Charles
Bright, Sir Graham Gorman, Mrs Teresa
Brooke, Rt Hon Peter Gorst, Sir John
Brown, M (Brigg & Cl'thorpes) Grant, Sir A (SW Cambs)
Browning, Mrs Angela Greenway, Harry (Ealing N)
Bruce, Ian (Dorset) Greenway, John (Ryedale)
Budgen, Nicholas Griffiths, Peter (Portsmouth, N)
Burt, Alistair Gummer, Rt Hon John Selwyn
Butler, Peter Hague, William
Carlisle, John (Luton North) Hamilton, Rt Hon Sir Archibald
Carlisle, Sir Kenneth (Lincoln) Hamilton, Neil (Tatton)
Carrington, Matthew Hampson, Dr Keith
Carttiss, Michael Hanley, Rt Hon Jeremy
Channon, Rt Hon Paul Hannam, Sir John
Chapman, Sydney Haselhurst, Alan
Clappison, James Hawkins, Nick
Clark, Dr Michael (Rochford) Hawksley, Warren
Clarke, Rt Hon Kenneth (Ru'clif) Hayes, Jerry
Clifton-Brown, Geoffrey Heald, Oliver
Coe, Sebastian Heathcoat-Amory, David
Colvin, Michael Hendry, Charles
Congdon, David Higgins, Rt Hon Sir Terence
Conway, Derek Hill, James (Southampton Test)
Coombs, Anthony (Wyre For'st) Hogg, Rt Hon Douglas (G'tham)
Coombs, Simon (Swindon) Horam, John
Cope, Rt Hon Sir John Hordern, Rt Hon Sir Peter
Cormack, Sir Patrick Howard, Rt Hon Michael
Couchman, James Howarth, Alan (Strat'rd-on-A)
Cran, James Howell, Sir Ralph (N Norfolk)
Currie, Mrs Edwina (S D'by'ire) Hughes, Robert G (Harrow W)
Curry, David (Skipton & Ripon) Hunt, Rt Hon David (Wirral W)
Davies, Quentin (Stamford) Hunt, Sir John (Ravensbourne)
Davis, David (Boothferry) Hunter, Andrew
Day, Stephen Jack, Michael
Dicks, Terry Jackson, Robert (Wantage)
Douglas-Hamilton, Lord James Jenkin, Bernard
Dover, Den Johnson Smith, Sir Geoffrey
Jones, Gwilym (Cardiff N) Robertson, Raymond (Ab'd'n S)
Jones, Robert B (W Hertfdshr) Robinson, Mark (Somerton)
Jopling, Rt Hon Michael Roe, Mrs Marion (Broxbourne)
Kellett-Bowman, Dame Elaine Rumbold, Rt Hon Dame Angela
Key, Robert Ryder, Rt Hon Richard
King, Rt Hon Tom Sackville, Tom
Kirkhope, Timothy Sainsbury, Rt Hon Sir Timothy
Knapman, Roger Scott, Rt Hon Sir Nicholas
Knight, Mrs Angela (Erewash) Shaw, David (Dover)
Knight, Greg (Derby N) Shaw, Sir Giles (Pudsey)
Knight, Dame Jill (Bir'm E'st'n) Shephard, Rt Hon Gillian
Knox, Sir David Shepherd, Colin (Hereford)
Kynoch, George (Kincardine) Shepherd, Richard (Aldridge)
Lait, Mrs Jacqui Shersby, Michael
Lang, Rt Hon Ian Sims, Roger
Lawrence, Sir Ivan Skeet, Sir Trevor
Legg, Barry Smith, Tim (Beaconsfield)
Lennox-Boyd, Sir Mark Soames, Nicholas
Lester, Jim (Broxtowe) Spencer, Sir Derek
Lidington, David Spicer, Sir James (W Dorset)
Lightbown, David Spicer, Michael (S Worcs)
Lilley, Rt Hon Peter Spink, Dr Robert
Lloyd, Rt Hon Sir Peter (Fareham) Spring, Richard
Luff, Peter Sproat, Iain
Lyell, Rt Hon Sir Nicholas Squire, Robin (Hornchurch)
MacGregor, Rt Hon John Stanley, Rt Hon Sir John
MacKay, Andrew Steen, Anthony
Maclean, David Stephen, Michael
McLoughlin, Patrick Stem, Michael
McNair-Wilson, Sir Patrick Stewart, Allan
Maitland, Lady Olga Streeter, Gary
Malone, Gerald Sumberg, David
Mans, Keith Sweeney, Walter
Marland, Paul Sykes, John
Marshall, John (Hendon S) Tapsell, Sir Peter
Martin, David (Portsmouth S) Taylor, Ian (Esher)
Mellor, Rt Hon David Taylor, John M (Solihull)
Merchant, Piers Taylor, Sir Teddy (Southend, E)
Mills, Iain Temple-Morris, Peter
Mitchell, Andrew (Gedling) Thomason, Roy
Mitchell, Sir David (NW Hants)
Moate, Sir Roger Thompson, Sir Donald (C'er V)
Monro, Sir Hector Thompson, Patrick (Norwich N)
Montgomery, Sir Fergus Thornton, Sir Malcolm
Moss, Malcolm Thurnham, Peter
Needham, Rt Hon Richard Townsend, Cyril D (Bexl'yh'th)
Nelson, Anthony Tracey, Richard
Neubert, Sir Michael Tredinnick, David
Newton, Rt Hon Tony Trend, Michael
Nicholls, Patrick Twinn, Dr Ian
Nicholson, David (Taunton) Vaughan, Sir Gerard
Nicholson, Emma (Devon West) Waldegrave, Rt Hon William
Norris, Steve Walden, George
Onslow, Rt Hon Sir Cranley Walker, Bill (N Tayside)
Oppenheim, Phillip Waller, Gary
Ottaway, Richard Wardle, Charles (Bexhill)
Page, Richard Waterson, Nigel
Paice, James Watts, John
Patnick, Sir Irvine Wells, Bowen
Patten, Rt Hon John Whitney, Ray
Pattie, Rt Hon Sir Geoffrey Whittingdale, John
Peacock, Mrs Elizabeth Widdecombe, Ann
Pickles, Eric Wiggin, Sir Jerry
Porter, Barry (Wirral S) Wilkinson, John
Porter, David (Waveney) Willetts, David
Portillo, Rt Hon Michael Winterton, Mrs Ann (Congleton)
Powell, William (Corby) Wolfson, Mark
Rathbone, Tim Wood, Timothy
Redwood, Rt Hon John Yeo, Tim
Renton, Rt Hon Tim Young, Rt Hon Sir George
Richards, Rod
Riddick, Graham Tellers for the Noes:
Robathan, Andrew Dr. Liam Fox and
Roberts, Rt Hon Sir Wyn Mr. Simon Burns.

Question accordingly negatived.

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