Mr Richard Ottaway (Croydon South, Conservative)

I shall not detain the Committee long. The Economic Secretary was not present at the aggregates levy debate on the Floor of the House, but the clause reminds me of it. Can she provide some background to the clause? Why are payments by commissioners in cases of error and delay relevant and what has happened up to now? Commissioners have made errors and delays in the past, so what is new about the clause?

Miss Melanie Johnson (Economic Secretary, HM Treasury; Welwyn Hatfield, Labour)

The clause and the schedule provide for the payment of compensatory interests where excise duty has been overpaid or underpaid as a result of an error by Customs and Excise or where the payment of a claim to excise duty has been unduly delayed. It also provides for the repayment of excise duty or compensatory interest to persons or businesses incorrectly refused authorisation, approval or entitlement to goods relieved of excise duty.

The measure brings excise duties into line with other duties and taxes administered by Customs and Excise by providing a statutory requirement to pay compensatory interest. The difference is that provisions for tribunals to take measures have existed in the past, but there will now be a statutory requirement. Traders in excise goods have welcomed the measure and I hope that the Committee will support it.

Mr Richard Ottaway (Croydon South, Conservative)

I am grateful to the Economic Secretary and would not disagree with her verdict. Would she confirm that the point is about shifting from a power possessed by tribunals to a statutory power of commissioners?

Miss Melanie Johnson (Economic Secretary, HM Treasury; Welwyn Hatfield, Labour)

I could write to the hon. Gentleman on that, but I believe that rates can be set by a value added tax and duties tribunal in judging individual cases, whereas the rate of interest will be determined by regulations set out in 1998 in respect of interest rates used for other indirect taxes. As the hon. Gentleman will be aware, the rate is 5 per cent. As I said, that is a discretionary power, whereas the provision in the clause is statutory.

Question put and agreed to.

Clause 15 ordered to stand part of the Bill.

Schedule 3 agreed to.