|
Statement
of Contigent or Nominal Liabilities
TABLE C2 Department of Trade
and Industry: Statement of contingent
or nominal liabilities
|
 |
| |
| Statute |
Nature of liability |
Amount
|
Amount
|
|
|
outstanding
|
outstanding
|
|
|
at 31-3-99
|
at 31-3-00
|
|
|
|
|
|
| Department of Trade and Industry
|
Statutory liabilities charged
to votes |
£ million
|
£ million
|
|
|
|
|
| British Aerospace Act 1980, Section
9 |
BAe: Liabilities immediately prior
to Privatisation |
Unquantifiable
|
|
| Telecommunications Act
1984, Section 68(2) |
.
The Government assumed ultimate responsibility for any outstanding
liabilities of British Aerospace existing immediately prior to its
Privatisation on 18 February 1981. The Government would only become
responsible in the event of a formal winding up of BAe or an order
to wind up the company by the court under the Companies Act. |
Unquantifiable
|
Unquantifiable
|
| |
|
The Government is liable for certain
debts of the Corporation which were outstanding at the transfer date
and which are now liabilities of BT plc. In the event of British Telecom
plc being wound up, other than for the purpose of reconstruction or
amalgamation, the Government would become liable to pay the companies
debts to creditors in respect of obligations which were formerly those
of British Telecommunications Corporation and were transferred to
British Telecom plc. |
|
|
|
|
|
|
| Nuclear Installations Act 1965, Sections
16 to 18, as amended by the Energy Act 1983 |
Statutory liability for third party
claims in excess of the operators liability in the event of a nuclear
accident in
the UK. |
up to 280.0 (approximately per
incident)
|
up to 280.0 (approximately per
incident)
|
|
|
|
|
| Nuclear Installations Act 1965, Section
18 as amended by the Energy Act 1983 |
Contributions to an international
pool of funds for third party claims following a Nuclear accident
in another country party to the Brussels convention 1963 supplementary
to the Paris Convention on third party liability in the fields of
Nuclear Energy, 1960 where the aggregate claims exceed £165m
(approx) up to a limit of £280m (approx) |
up to 16.0 (approximately per incident)
|
up to 16.0 (approximately per incident)
|
|
|
|
|
| Atomic Energy Act 1989. section 5(1) |
To provide assistance to another
Member State under the IAEA convention assistance in the case of a
nuclear accident or radiological emergency. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
| Atomic Energy Authority Acts 1954
and 1971 |
Indemnities given to the UKAEA by
the Secretary of State to cover certain indemnities given by UKAEA
to carriers and British Nuclear Fuels against certain claims for damage
caused by Nuclear matter in the course of carriage. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
| Nuclear Industry (Finance) Act 1977,
Sections 1 and 2 as amended by Section 1 of the 1981 Act and by Section
1 of the Atomic Energy Act 1989. |
Guarantees by the Secretary of State
to cover loans from the European Investment Bank to British Nuclear
Fuels plc. |
Nil
|
Nil
|
|
|
|
|
| Coal Industry Acts |
Assurance to British Coal Corporation
that, subject to Parliament approving any necessary provisions, adequate
funds will continue to be made available to enable the Corporation
to meet their financial obligations as they fall due during the current
financial year. |
5,500
|
5,500
|
|
|
|
|
| Coal Industry Act 1994, Schedule
5, Paragraph 2 (9) |
Deeds of guarantee dated 31 October
1994 in respect of British Coal Corporation Pension Schemes (Mineworkers
Pension Scheme and British Coal Staff Superannuation Scheme) in which
the Secretary of State agrees to meet a deficiency in the Schemes
ability to fund pension benefits laid down in the Schemes. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
|
|
|
|
| a This information is
also published in December each year in the Consolidated Fund and
National Loans Fund Accounts: Supplementary Statements (The Stationery
Office). |
|
| Department of Trade and Industry |
Statutory liabilities charged to
votes |
£ million
|
£ million
|
| |
|
|
|
| Industrial Development Act 1982,
Section 8 |
A liability under the Departments
Small Firms Loan Guarantee Scheme on outstanding guarantees for loans
granted over, approximately, the past 7 years. |
86.141
|
86.576
|
| |
|
|
|
| Companies Act 1985, Section 256 (as
amended by the Companies Act 1989) |
A guarantee has been given to the
Financial Reporting Council that if the amount held in the Legal costs
fund falls below £1m in any year, an additional grant will be
made to cover legal costs subsequently incurred that year. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| Industrial Development Act 1982,
Section 8 |
Home Shipbuilding Credit Guarantee
Scheme Guarantees to banks in respect of loans made to UK Shipowners
for the construction, completion or alteration of ships and offshore
installations. |
270.0
|
270.0
|
| |
|
|
|
| Coal Industry Act 1994 |
Undertakings/indemnities given to
Mining Scotland Ltd in connection with its acquisition of the Scottish
mining activities of the British Coal Corporation. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
| Coal Industry Act 1994 |
Undertakings/Indemnities given to
Celtic Energy Ltd in connection with its acquisition of the South
Wales mining activities of the British Coal Corporation. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
| Coal Industry Act 1994 |
Indemnities given to Coal Investment
plc in connection with its acquisition of Annesley/Boutinck Ltd. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
| Coal Industry Act 1994 |
Undertakings/Indemnities given to
RJB (Mining) PLC in connection with its acquisition of the English
mining activities of British Coal Corporation. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| Outer Space Act 1986 |
The Outer Space Act (1986) gives
the Secretary of State the power to licence UK companies and nationals
who intend to procure and/or operate in space objects. Before issuing
a licence BNSC requires evidence of third party liability insurance
of at least £100 million. Any liability on HMG will therefore
only arise if a claim is in excess of £100 million. In addition,
the Governor of Cayman Islands has also issued an Exemption to Sea
Launch for their test launch in March 1999, under the Act as extended
to Cayman Islands in 1998. This is the first time the Act has been
used for launchers rather than satellites. The seven licenses issued
to Matra Marconi Space were for UK MoD Satellites. Any liability for
them is therefore the responsibility of the MoD and not DTI. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| |
Non-statutory liabilities charged
to vote |
|
|
| |
|
|
|
| |
International Natural Rubber Agreement
1995. The UK and other member countries may be called upon to contribute
to the buffer stock account. |
0.4
|
0.4
|
| |
|
|
|
| |
BAe: Airbus Development Costs Guarantee
in respect of BAe by HMG to other Airbus Governments that finance
will be available for BAe`s share of agreed development costs for
the A330/A340 programme. |
33.0
|
33.0
|
| |
|
|
|
| |
BAe: Financial Obligations to Airbus.
Under the terms of the principles of Co-operation of 1978 with the
French and German Governments (which do not have treaty status) the
UK Government will stand behind the discharge by BAe of its financial
obligations to Airbus industry. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| |
Treaty with the French Government
relating to the Concorde programme. The Government stands behind those
companies involved in the manufacture and supply of services and other
support to the aircraft. To the extent of any successful claims in
respect of the manufacturers product liability for losses involving
British owned and operated aircraft, the Government would ensure payments
of claims which exceeded insurance cover against liability.
|
|
|
|
| |
|
|
|
| |
Non-statutory liabilities charged to vote |
|
|
| |
|
|
|
| |
Assurance that, subject to Parliamentary approval
of any expenditure entailed, the Government would meet any net liabilities
of British Shipbuilders as recorded in their Accounts. Beyond this
general commitment, and subject to the same caveats, more specific
assurances have been given to meet contingent liabilities associated
with certain of BS`s financial guarantees. |
13.0
|
13.0
|
| |
|
|
|
| |
Costs of meeting waste management and decommissioning
liabilities at UKAEA sites and certain similar liabilities of the
UKAEA at BNFL sites. |
7,100 (approximately)
|
2,840
(approximately)
|
| |
|
|
|
| |
Letter of comfort to AEA Technology who, under the
terms of a collaboration agreement on a European project for underground
gasification of coal, accept joint and several liability. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| |
Financial undertaking from the Government to BNFL
in connection with the transfer of the Governments shareholding in
Magnox Electric Plc to BNFL on
30 January 1998. |
2.911
|
3,179
|
| |
|
|
|
| |
Deed of indemnity in respect of potential liabilities
vested in National Grid Company under a CEGB/EdF protocol which governs
responsibilities in respect of the interconnector linking England
and France. |
Up to 200
|
Up to 200
|
| |
|
|
|
| |
Paid in capital subscription for the Common Fund
for Commodities: |
|
|
| |
|
|
|
| |
Government is committed to the payment of a subscription
of £4.48m to the First Account of the Fund, half of which is
in the form of Promissory Notes callable following the coming into
operation of the first Account. |
2.24
|
2.24
|
| |
|
|
|
| |
Callable capital subscription for the Common Fund
for Commodities: |
|
|
| |
|
|
|
| |
Government is committed to the payment of a subscription
of £1.96m to the First Account of the Fund, in the event that
the Fund is unable to meet its liabilities in respect of First Account
operations. |
1.96
|
1.96
|
| |
|
|
|
| |
European Patent Office: |
|
|
| |
|
|
|
| |
The UK as one of the contracting states has a potential
liability under Article 40 of the European Patent Convention of 1973. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| |
World Intellectual Property Organisation. |
|
|
| |
|
|
|
| |
The UK as a contracting state to the Patent Co-operation
Treaty of 1970, has a potential liability under Article 57 of the
Treaty. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| |
Indemnity given to the police. The Police Information
Technology Organisation (Home Office) provides Legal Services Directorate
D (DTI) with access to data from the Police National Computer (PNC).
The DTI has indemnified the police against any liabilities which they
might incur as a result of providing that access. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| |
“Back end” costs of decommissioning nuclear
facilities for the Central Laboratory of the Research Councils and
the Medical Research Council |
11.5
|
5.63(b)
|
| |
|
|
|
| |
|
|
|
| b Breakdown of 1999 figures in respect
of nuclear facilities (£ million):
CLRC 5.5
ISIS 5.4
Synchrotron Radiation Source 0.1
MRC 3.5
TOTAL 9.0
|
|
|
|
|
|
|
The Biotechnology and Biological
Sciences Research Council (BBSRC), formerly the Agricultural and Food
Research Council (AFRC) has a contingent liability to meet the redundancy
costs of BBSRC employees attached to Horticultural Research International
who are made redundant. |
18.0
|
18.0
|
|
|
|
|
|
“Back end” costs of decommissioning
international scientific facilities. |
80.6
|
Expiredc
|
|
|
|
|
|
Cost of demolition of buildings and
remediation of contaminated land at NPL, Teddington site. |
14
|
Unquantifiable
|
|
|
|
|
|
At 20 May 1999, BNSC has issued the
following licences: two to B Sky B, twelve to Surrey University, one
to British Aerospace Ltd, seven to Matra Marconi Space Ltd, two to
Telenor UK Ltd, one to INMARSAT, and four to the Science and Engineering
Research Council.
Additionally, the Governor of Hong Kong has issued two licences to
AsiaSat Ltd and two to AIT Satellite Company Ltd under the 1986 Act
as extended to Hong Kong in 1990. The Governor of Gibraltar has also
issued a licence to GE (Gib) Communications Ltd under the Act as extended
to Gibraltar in 1996 |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
|
Radiation Compensation Scheme and
Health Mortality Programme Agreement. |
0.32
|
0.26
|
|
|
|
|
|
Changes to the Radioactive Waste
Management Policy. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
|
Further Incidents/Accidents or insurance
claim for exposure to ionising radiation pursued outside the existing
scheme. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
|
LSI Wind Turbine Project decommissioning
costs. |
0.3
|
0.3
|
|
|
|
|
|
Changes to International Regulations. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
|
There is a very remote possibility
that 3 satellites in orbit belonging to PPARC/SERC may collide with
other satellites or aircraft before being removed from orbit. There
is also the potential that these satellites cause to the surface of
the earth. If PPARC were shown to be at fault for this damage, a liability
would arise against HMG. The possibility of this arising is extremely
remote. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
|
United Kingdom’s share of debts
of CERN liabilities |
37
|
31
|
|
|
|
|
|
Liabilities arising from the collapse
of the Matrix Churchill company. The Government could be obliged to
pay compensation or individuals that were damaged by the Department’s
action in respect of Matrix Churchill. |
Unquantifiable
|
Unquantifiable
|
|
|
|
|
|
Indemnity given by the Secretary
of State to intermediary lending institutions under an exchange risk
guarantee scheme in respect of actions etc, which may be brought against
them arising from failure of the Secretary of State to comply with
obligations imposed upon him by Exchange Risk Guarantee Agreements. |
Unquantifiable
|
Unquantifiable
|
| |
|
|
|
| |
| |
|
|
|
| |
|
|
|
| |
|
|
|
| c Breakdown of 1999 figures in respect
of international facilities (£ million): |
|
|
|
|
| EPSRC |
|
43.6 |
|
| Institut Laue Langevin (Decommissing) |
35.0 |
|
|
| Institut Laue Langevin (Reprocessing) |
3.6 |
|
|
European Synchrotron Radiation Facilty
(Decommissing) |
3.6 |
|
|
| PPARC |
|
37.0 |
|
| CERN |
37.0 |
|
|
| TOTAL |
|
|
|
|
|
80.6 |
|
| |
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