Clause 4 - Commissioners' initial functions

Part of Commissioners for Revenue and Customs Bill – in a Public Bill Committee at 9:45 am on 11 January 2005.

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Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury) 9:45, 11 January 2005

I am glad to hear that. I am sorry that I did not provide it before so that the hon. Gentleman did not have to ask.

On the question raised by the hon. Member for Yeovil, I want to make it clear that the O'Donnell review considered the issue of tax credits and their importance within the Revenue department, and thus the new merged department as an integral part of the tax system. It is a matter of Government policy that tax credits are dealt with by the Revenue department.

The hon. Gentleman has expressed his agreement with the idea that the Government should use a minimalist Bill to begin the merger. In considering the new department, it was clear that tax credits should be clearly included in its responsibilities. If at some later stage, in decades to come, another Government decide that they do not want tax credits to be dealt with by the new merged department, primary legislation will be required to move it, which is right and proper, as I have stressed on Second Reading and at the beginning of today's proceedings.

We have taken the two departments and brought them together in a machinery of Government Bill to ensure that they can continue their functions and that we can begin the process of considering the duplications and ensuring efficiency. I say to the hon. Gentleman that if changing that is the policy of his party, primary legislation would be required. That is absolutely crucial in order to give security and clarity to our staff and the commissioners concerning what the new department is expected to do.