Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to replicate Connecting Europe Facility funding after the transition period.
Answered by Simon Clarke
The Political Declaration states the UK is open to participation in certain EU programmes, if it is in our interest to do so. The proposed regulations for the next 2021-27 CEF programme are still being discussed in the EU and has yet to be finalised. Our future participation in programmes will be subject to negotiations on the UK-EU relationship. Decisions on future budget provisions are a matter for the Comprehensive Spending Review.
The Online Harms White Paper, published in April 2019, set out plans for world-leading legislation to make the UK the safest place in the world to be online. This will make companies more responsible for their users’ safety online, especially children and other vulnerable groups.
Infrastructure is a top priority for the Government, and we will be setting out our long-term vision in the upcoming National Infrastructure Strategy which will be published at Budget. We are committed to building on the strong foundations of the Clean Growth Strategy and the Industrial Strategy to deliver the emissions reductions we need to see across the whole economy, including in the power sector. We are considering a range of options with regards to the future of infrastructure across the UK as part of the Government’s plans to level-up the economy.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he ha plans to replicate the funding that the UK Safer Internet Centre receives from the European Union's Connecting Europe Facility after the transition period.
Answered by Simon Clarke
The Political Declaration states the UK is open to participation in certain EU programmes, if it is in our interest to do so. The proposed regulations for the next 2021-27 CEF programme are still being discussed in the EU and has yet to be finalised. Our future participation in programmes will be subject to negotiations on the UK-EU relationship. Decisions on future budget provisions are a matter for the Comprehensive Spending Review.
The Online Harms White Paper, published in April 2019, set out plans for world-leading legislation to make the UK the safest place in the world to be online. This will make companies more responsible for their users’ safety online, especially children and other vulnerable groups.
Infrastructure is a top priority for the Government, and we will be setting out our long-term vision in the upcoming National Infrastructure Strategy which will be published at Budget. We are committed to building on the strong foundations of the Clean Growth Strategy and the Industrial Strategy to deliver the emissions reductions we need to see across the whole economy, including in the power sector. We are considering a range of options with regards to the future of infrastructure across the UK as part of the Government’s plans to level-up the economy.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC will publish guidance for businesses on complying with the requirements of the Tobacco Track and Trace system to (a) scan the movement of and (b) record the sale of tobacco through the supply chain; and if he will make a statement.
Answered by Simon Clarke
Economic operators are responsible for ensuring that they have the necessary software capability to comply with the track and trace obligations. As these are contractual relationships between economic operators and their software providers, HMRC has no plans to make any assessment of their capability.
Since the track and trace system came into force on 20 May, over 38,000 businesses have registered as an economic operator, and over 61,000 premises. Following engagement with the tobacco industry, HMRC assess this represents good coverage of the number of businesses expected to register. As there is a 12-month sell through period for old stock, marked stock that needs tracking and tracing is only just appearing in the UK. During this period, HMRC’s priority has been to educate and support businesses as they familiarise themselves and adapt to the new requirements.
Guidance on the tracking and tracing requirements is available on www.gov.uk. The mechanics of how businesses scan movements and record sales is not prescribed as this will depend on the type of equipment used and the systems operated by individual businesses.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the capability of software providers for the Track and Trace system on tobacco products to fulfil economic operator obligations to scan and record the movement and sale of tobacco; and if he will make a statement.
Answered by Simon Clarke
Economic operators are responsible for ensuring that they have the necessary software capability to comply with the track and trace obligations. As these are contractual relationships between economic operators and their software providers, HMRC has no plans to make any assessment of their capability.
Since the track and trace system came into force on 20 May, over 38,000 businesses have registered as an economic operator, and over 61,000 premises. Following engagement with the tobacco industry, HMRC assess this represents good coverage of the number of businesses expected to register. As there is a 12-month sell through period for old stock, marked stock that needs tracking and tracing is only just appearing in the UK. During this period, HMRC’s priority has been to educate and support businesses as they familiarise themselves and adapt to the new requirements.
Guidance on the tracking and tracing requirements is available on www.gov.uk. The mechanics of how businesses scan movements and record sales is not prescribed as this will depend on the type of equipment used and the systems operated by individual businesses.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of tobacco (a) manufacturers, (b) wholesalers and (c) retailers compliance with The Tobacco Products (Traceability and Security Features) Regulations 2019; and if he will make a statement.
Answered by Simon Clarke
Economic operators are responsible for ensuring that they have the necessary software capability to comply with the track and trace obligations. As these are contractual relationships between economic operators and their software providers, HMRC has no plans to make any assessment of their capability.
Since the track and trace system came into force on 20 May, over 38,000 businesses have registered as an economic operator, and over 61,000 premises. Following engagement with the tobacco industry, HMRC assess this represents good coverage of the number of businesses expected to register. As there is a 12-month sell through period for old stock, marked stock that needs tracking and tracing is only just appearing in the UK. During this period, HMRC’s priority has been to educate and support businesses as they familiarise themselves and adapt to the new requirements.
Guidance on the tracking and tracing requirements is available on www.gov.uk. The mechanics of how businesses scan movements and record sales is not prescribed as this will depend on the type of equipment used and the systems operated by individual businesses.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ensure that economic operators who are unable to comply with the Tobacco Products (Traceability and Security Features) Regulations 2019 due to software issues will not be penalised.
Answered by Robert Jenrick
The Tobacco Products (Traceability and Security Features) Regulations 2019 require the movement of tobacco products to be recorded by economic operators through the supply chain.
Tobacco manufacturers are required to provide economic operators with the software necessary to record movements.
If an economic operator is unable to comply with the Regulations due to software issues, HM Revenue & Customs will consider what action to take on a case-by-case basis according to the facts of the particular case.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 April 2019 to Question 241464, what opportunity for appeal exists for economic operators in the event that the compensation offered by tobacco manufacturers for the equipment and software for the recording and transmission of product movement and transactional events to the data storage systems (Article 15(7) of TPD2014/40/EU) does not cover the cost to that operator of implementing the Tobacco Products (Traceability and Security Features) Regulations 2019.
Answered by Robert Jenrick
Tobacco manufacturers have introduced a compensation scheme and appointed a third party provider to act as a single point of contact (SPoC) for all compensation claims. The SPoC appointed by the tobacco manufactures for the EU is Société Générale de Surveillance SA (SGS).
If an economic operator is not happy with the level of compensation offered, they can appeal to SGS.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how the level of compensation for the hardware and software for the recording and transmission of the information for product movement and transactional events to the data storage systems (Article 15(7) of TPD2014/40/EU) was calculated.
Answered by Robert Jenrick
As required by Article 15(7) of the Tobacco Products Directive, HM Revenue & Customs (HMRC) has ensured tobacco manufacturers and importers have arrangements in place to provide economic operators with the equipment necessary to record and transmit track and trace transactions.
These arrangements, which include the level of compensation offered, are contractual matters between tobacco manufacturers and importers, and the companies in their supply chains. HMRC has not been involved in these contractual discussions and is unable to comment on how the compensation is calculated.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC will take to (a) enforce the regulations within the Tobacco Track and Trace scheme past 20 May 2019 and (b) ensure that business have adequate time to register for Economic Operator identifier codes.
Answered by Robert Jenrick
The Tobacco Products (Traceability and Security Features) Regulations 2019 include sanctions for non-compliance with the track and trace scheme. This includes the power to seize non-compliant tobacco products and deactivate an Economic Operator’s ID Code.
From 20 May 2019, businesses will be unable to legally buy or sell tobacco products without a valid ID Code. These sanctions will help protect legitimate business from rogue operators selling illicit tobacco products.
HMRC recognises that businesses will need time to become familiar with the new arrangements. During the 12-month sell through period, HMRC will support businesses to understand their obligations, and engage with other enforcement agencies, including Border Force and Trading Standards, to ensure effective and proportionate enforcement of the regulations.
De La Rue (the UK’s appointed ID issuer) published details of the registration process and general guidance on 25 March 2019. The registration process will open on 23 April for manufacturers and large retailers, and on 30 April for all other businesses. This will help to stagger the registration process and facilitate the registration of businesses by the deadline of 20 May 2019.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the cost to wholesalers of the new Track and Trace system on tobacco products; and if he will make a statement.
Answered by Robert Jenrick
HMRC has not made its own estimate of the cost to wholesalers of the tobacco track and trace system. The EU commission carried out several consultations during the development of this policy, and published an Impact Assessment covering the EU implementing legislation on 15 December 2017. It remains an accurate summary of the impacts of the new track and trace system on tobacco products.