Identity Cards Bill

I want to intervene only briefly to bring to the debate a little balance on the issue of costs, a matter raised by my noble friend Lord Barnett and others. During the Second Reading debate, my noble friend on the Front Bench said that,"““it [the card] will not include medical records, financial or tax records, criminal records or driving records””.—[Official Report, 31/10/05; col. 115.]" I want to look at the specific issue of tax records. I understand that tax records material will not be included on the national database. However, the fact that a person’s identity can be established from the existence of a card must have implications for the tax system. Indeed, I would hope that it would do. I draw my noble friend’s attention to the fact that if we are to review whether the costs are,"““proportionate to the benefits such a system would bring””," then we must take into account the effect of the introduction of the card on the tax system in terms of receipts. What will the additional revenue be to the Exchequer arising out of these cards when we know that we have a black economy in this country which some people estimate to be in the region of £10 billion in lost revenue? I believe that the figure is far higher than that? I draw to the Committee’s attention a list of those areas which, if we are to go down the route of this amendment, we might wish to take into account in evaluating the net financial benefit to the state rather than the cost to the state from the introduction of these cards. There would be a substantial windfall in national insurance contributions. The avoidance of capital gains tax on share transactions at the moment costs the Revenue a fortune. The avoidance of tax on share dividends costs the Revenue a lot of money. There is also a loss to the Revenue from those who trade above the VAT threshold to avoid registration within the United Kingdom. What about the vast amount of money lost to the Treasury every year because people use illegitimate means of avoiding capital transfer tax? What about the loss to the Revenue annually on rental income; the large amount of property that is owned by people overseas who do not pay tax within the United Kingdom on their rental income? I see that the noble Lord, Lord Crickhowell, is shaking his head.