Sitting of 13 July 2001

Preamble
The House met at half-past Nine o'clock
PRAYERS
[MR. SPEAKER in the Chair]
PRAYERS

  Small Firms
  [Relevant documents: The Report and Accounts of the Small Business Service for 2000–01 [HC 104 of Session 2001–02] and the Framework Document for Government Departments "Think Small First".]
  Motion made, and Question proposed, That this House do now adjourn.—[Mr. McNulty.]
  9.34 am
  The Parliamentary Under-Secretary of State for Trade and Industry (Nigel Griffiths): It is a pleasure to open this important Adjournment debate on the need to ensure that our small businesses get to the future first. The Government have an ambition to make the United Kingdom the best place in the world to start and grow a business. Successful businesses are set up and run by enterprising individuals, but the Government shape the environment within which they can do business. The Government therefore have a responsibility to provide the most appropriate support required by our small businesses so that they can compete effectively to meet the challenges of a global economy.
  We also have a responsibility to minimise the burdens that are imposed through better regulation and other measures. We have a duty to provide a stable macroeconomic environment that allows small business and enterprise to flourish. I want to stress the importance of small and medium-sized enterprises to the economy. It is clear that the SME sector, in terms of job creation alone, is vital to the economy. Nearly three quarters of the increase in employment has come from small and medium-sized firms. In the past five years for which figures are available, more than 750,000 more people were in work. Some 5.9 million jobs were created, and SMEs created 540,000 of the gain. That is 71 per cent. of all the extra jobs created.
  UK SMEs have a combined annual turnover of around £1 trillion. SMEs also bring benefits such as stimulating competition, providing a supply chain and developing and exploiting new technologies and niche markets, so there are many reasons for the Government to focus on this sector.
  In the industrial economy of the 20th century, large corporations drove economic progress. In the knowledge economy, the drivers of change will be small businesses. In March this year, a Department of Trade and Industry foresight report entitled "Financing the Enterprise Society" was published. The foresight programme is a partnership of Government and business, small and large, which helps all of us to think about the future and helps business get to the future first.
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  The report predicts that over the next 10 years small businesses will be the main drivers of economic growth, product innovation and job creation in our economy. There are several reasons for the shift in importance from large to small organisations. First, there is the war for talent. People with knowledge, imagination, creativity and entrepreneurial drive are increasingly impatient with large organisations. They want more freedom, and more control over what they do; they want to own their work, and they want to own the results. Large businesses are trying, sometimes desperately, to strip out their bureaucracies, change their culture and marry the benefits of scale with the benefits of small, but it is a tough thing to do, as we in Government know only too well. Thus smaller and entrepreneurial businesses are finding it easier to attract the people they need.
  Secondly, there is the impact of information and communications technology. Increasingly, the use of the internet and e-business is bringing about the death of distance. Ease of access to information will drive down prices and allow the rapid rise of new competitors, leading to increasing globalisation, even by small businesses. The technology revolution in particular is changing the way we live and work—as consumers, as citizens and, very definitely, as business people.
  The third reason for the shift from large to small organisations is the speed of change and the need to innovate. That is where small can definitely have its advantages. Around 88 per cent. of all novel innovators—the firms introducing a technologically new or improved product to the market—are SMEs. It is usually much easier for small businesses to change their products. They can change direction quickly, move swiftly into new markets, seize opportunities in new technologies and work in new and innovative ways to achieve their goals. In today's business world, it is not just getting ahead but staying ahead that counts.
  We support the growth of the self-employed sector and of small business. We want to make it easier for people to start up on their own account. We are working to achieve that by producing more user-friendly guidelines such as those set out in the Inland Revenue's booklet "Thinking of Working for Yourself?" Already the number of small businesses, including self-employed people, is growing fast—up 170,000 in the past four years. On the basis of the foresight study, we can predict that by 2010 there will be almost 1 million more SMEs—a growth from 3.7 million today to more than 4.5 million. Between them, those businesses will have created 2 million new jobs.
  I want to say a few words about the life cycle of small businesses. The numbers understate the scale of the change. I do not have to tell informed hon. Members here that many small businesses do not last. However, that does not mean that they fail. There are many reasons why an owner will decide to close a business, often to start up something else, sometimes to move into employment. New businesses emerge to fill the gaps left by the weakest link, but on present trends, on the basis of the foresight projections, most of the businesses that exist today may not exist in 10 years. But of course their parents are already in business; it is just that most of the 4.5 million businesses that will exist in 2010 have not yet been born.
  Start-up and survival rates are critical. Life expectancy for small businesses has improved in recent years, benefiting from a more benign economic environment.

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  Almost 130,000 more businesses have started up than have closed in the past three years. More than 1.6 million new businesses have started since April 1997, of which an estimated 900,000 are still trading. The latest survival rates show that more than 88 per cent. of businesses now survive one year after registration, with 61 per cent. surviving three years.
  The number of business closures during 1999—382,000—was the lowest in a decade. There were 3,700 company insolvencies in the fourth quarter of 2000. That is much lower than in the early 1990s, when they peaked at almost 16,000 a quarter. Of course, all that is against a background of the longest period of low inflation for more than 30 years and the longest run of low interest rates throughout that period, with rates less than half the level of a decade ago. Long-term rates are now lower than in the United States and in other EU states.
  One million more people are now in work, and unemployment is down in every region and nation of the United Kingdom. We are encouraging enterprise and entrepreneurship for all. We need to ensure that we maximise the potential of all our aspiring entrepreneurs. If the United Kingdom is genuinely to become an enterprise society, there is no doubt that more needs to be done to encourage everyone in society to believe that they can really make it in business. That is one reason why the Government established the Small Business Service in April last year.
  The role of the Small Business Service is to develop world-class business support services. We are all concerned that small businesses and those who want to start up in business should have easy access to high-quality business advice and support in whatever way best suits them and at every stage of their development. I am confident that all business link partners will have the needs of small businesses uppermost in their minds, and this can be summed up as their commitment to a ruthless customer focus.
  Our commitment to social inclusion means reaching the parts that other schemes fail to reach, and the SBS is also investing in deprived areas and among groups who are under-represented in business, via the Phoenix fund and community finance initiatives. The Phoenix fund has already generated a great deal of interest—250 bids were received, of which 50 were successful.
  Let me tell the House about one such bid—the Phoenix development fund project for women in Birmingham. It aims to establish, develop and maintain a programme to help women across Birmingham, irrespective of their status, ethnicity or religion, to set up and run businesses. The programme will contain a blend of workshops and group business counselling activity, together with structured training. The menu of options available includes one-to-one business counselling, idea-generation workshops, workshops on relevant pieces of legislation and skills training. The project also plans to establish a self-financing working forum for women-led businesses.
  About a third of start-ups today are by women. More than 840,000 women in the UK are self-employed. Despite a significant increase in women's participation in other parts of the labour market, the proportion of businesses started by women has remained roughly constant since 1998. True, nine out of 10 women think it
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  is easier to start up in business today than in the past. However, discrimination is still a reality. Research by the NatWest shows that women are most likely to establish businesses in service areas. Almost 50 per cent. of businesses in that sector are started by women, and such businesses are least likely to have employees as they tend to be run from home. Women face problems starting up, including sexual discrimination, not being taken seriously, and, very important, having to juggle family responsibilities.
  The SBS small firms loan guarantee scheme has been of particular help to women, who may lack a proven track record, in raising finance. Business link operators have been addressing their business plans to how best to support and encourage female entrepreneurs.
  The Government recognise the increasingly important contribution of ethnic minority businesses to the economy. For many decades, such businesses have been a driving force. Starting small, ending up big—some of them massive—all of them make a tremendous contribution to British society. It is estimated that ethnic minority businesses represent about 7 per cent. of the total UK small business stock. Britain's ethnic minority businesses contribute almost £13.5 billion annually to the economy. More than half of that is here in London, where almost 50 per cent. of the UK's ethnic minority population lives.
  People from ethnic minority groups are more likely to be in business on their own account and to employ others. We recognise that many ethnic minority business people are among the most entrepreneurial in our society, and we have a lot to learn from their experiences. In 1997, people from ethnic minority backgrounds represented 5 per cent. of the UK population, yet entrepreneurs from ethnic minority backgrounds were responsible for 9 per cent. of new business start-ups.
  The needs of ethnic minority businesses are diverse, but they all share the common concerns of small business, including raising finance, competition and marketing. The Government want to make sure that we are tailoring our policies and business support to improve their competitiveness. That is why the new network of business links is gearing up to meet the needs for start-up support from the black and ethnic minorities. Business links can make the difference between somebody being able to start a business and just aspiring to it.
  Denton Thomas was a Business Link client. When he decided to set up his own travel agency, he did not need any advice on how to do his books or pay his tax because he had been working for the Inland Revenue for 22 years, but he did need advice on accessing finance to keep him afloat through the first few months of trading. Business Link provided advice on applying for finance and helped him through the process. That was six years ago; today his turnover is approaching £1 million and he has plans for expansion. He knows that Business Link made all the difference and that without it he would not be where he is today.
  We are keen to ensure that the Government think small first. A major role for the SBS, especially in relation to regulation, is to ensure that Government Departments are really thinking about the effects of their actions on small businesses. To promote this objective, the Government published "Think Small First" back in January. As a result of that publication, we have agreed to introduce a

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  minimum period of 12 weeks for consultation on possible new regulations and a 12-week period of grace after regulations are finally agreed, when guidance should also be made available. This consultation period prior to the regulations coming into force will give small businesses and the regulators another opportunity to consider the implications and make the changes required.
  I know that the House will join me in hoping that wherever possible we can avoid making regulations and bringing in legislation. Under all Governments, there have been criticisms that red tape stifles small business, but it is important to remember that, according to the OECD's "Economic Outlook" published in December 1999, the UK has less regulation than other OECD countries. We know, however, that there is no room for complacency and that we need to work hard to maintain and improve that position.
  Of course, the sensible way is to strike a balance on regulation to protect employers, workers, and consumers and to guarantee decent minimum standards. Most businesses see the advantages of treating staff and customers well, but a tiny few do not. Last year, 180,000 people were injured and 160 killed in workplace accidents, and 30,000 consumers were harmed by faulty products. Consequently there will always be a need for regulation in some form. The Government's role is to ensure that we promote intelligent or smart regulation. In that way, we can provide businesses with effective incentives fully to meet their potential, and not wrap them up in red tape.
  For employers, we have introduced exemptions for small businesses in relation to trade union recognition, EU requirements on unit pricing in shops, merger fees and rules on stakeholder pensions. While minimising administrative costs to employers, millions of employees have gained from a direct improvement in their terms and conditions, for example, through the introduction of the national minimum wage and annual leave entitlement—all with no apparent negative effect on employment levels.
  Recent research shows that fewer than one in six businesses cite red tape as their most important problem. The concerns of businesses were expressed in the following proportions in a recent MORI poll: 44 per cent. on securing sales and cash flow; about 14 per cent. on costs and overheads; and about 6 per cent. on changes to regulations. That reinforces the need for accessible business support and advice for small businesses. That is why we have made that help more readily available than ever before.
  In partnership with the Business Link network, the SBS recently launched a national website and contact centre—www.businesslink.org—providing information and advice. I remind the House that 1.7 million small and medium-sized enterprises are already IT-literate, and more than 450,000 of them have access to the web. The service that we now provide will continue to expand and evolve.
  A major objective of the web service is to provide personalised support enabling registered users to have their interests noted so that they can be automatically provided with up-to-date information and regulatory changes and, in due course, with business opportunities—for example, from EU tendering lists.
  Business Link can help with all aspects of setting up, running and growing a business. Although the new Business Link network went live in April, I should like to
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  take this opportunity to thank everyone involved—Business Link, local authorities, chambers of commerce and others—for their effort and commitment in making this possible.
  I believe that we are building on the good foundations laid over the past decade and that we are well on the way to having in place a truly world-class business support service. That is precisely what our small businesses deserve.
  9.54 am
  Mr. Richard Page: May I start by declaring an interest? I have an interest in small businesses in that I have owned, operated and worked in several of them. The number of employees ranged from six to 106. The turnovers were from a few thousand to tens of millions. It is exciting. It is rewarding—sometimes—but it is also hard work. Running a small business is tough. I make that point not only to demonstrate that I have some of hands-on experience, but also so that those who are interested in such matters will appreciate that I am declaring an interest. Those interests are in the register for all who want to examine them.
  My work in small businesses has taught me that we cannot fire a magic silver bullet to make all the problems of small business disappear so that all will be well. The problems of this vital sector can be likened to a cake. That cake is cut into slices of varying thickness and digestibility, but all have to be tackled and consumed. When that has been done, the Government of the day will look down at the plate to find another cake there—also with slices of various sizes. The aim of the game is to ensure that it is a smaller cake and that when that one is gone, there should be an even smaller one, although I doubt that we shall ever arrive at the point when there will be no cake at all: no problems facing the small business sector. As the Minister said, the sector is diverse; it is made up of many, many parts, so what might help one part of the sector may often damage another.
  From that perspective, I can fully understand why, over the past few years, Labour Members have highlighted the Government's efforts to maintain stability in the economy. Obviously I welcome that stability: no one wants high inflation or high unemployment. I was about to say "high taxation", but some Labour Members are rediscovering an innate restlessness on that subject. It was there years ago, but has been coming back since 7 June.
  I want to deal with some of the larger slices and—surprise, surprise—the largest slice is the one on which the Minister spent some time: the question of regulation. As I listened to his remarks, I could have signed up to almost everything. As a former Minister for small business, I said, "Yes, that's right, that's what we want to achieve, that's good": but then I gave myself a little pat on the cheek, woke up and found that what the Minister was saying and what the Government were actually doing, although not diametrically opposed, were certainly not exactly the same thing.
  The truth is that the Government put considerable spin on their claim to be the friend of business in general and of small business in particular, but that is belied by the facts. In April 1997, Labour's business manifesto stated:
  "We will not impose burdensome regulations on business, because … successful business must keep costs down."

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  But what do we find? Since 1997, the Labour Government have added £10 billion, through regulation, to the burdens on business. Those are not our figures; they come from small business organisations.
  I do not want to embarrass the immediate predecessor of the Secretary of State for Trade and Industry, but it was that right hon. Gentleman, the present Secretary of State for Transport, Local Government and the Regions, who—
  Geraint Davies: Will the hon. Gentleman give way?
  Mr. Page: Of course.
  Geraint Davies: Does the hon. Gentleman recall that about 90 per cent. of that £10 billion consists of the costs of the minimum wage and the working time directive? The Conservatives are now in favour of the minimum wage and they cannot change the working time directive, so to present that as red tape is misleading.
  Mr. Page: I was merely pointing out that since 1997 there is an extra cost burden on businesses of about £10 billion. It is made up of several things, some but not all of which we have signed up to. I do not disagree with part of the hon. Gentleman's comments, but I do not think that the burden is quite so heavily loaded on one side. It is much broader. I shall come to that point—he will be delighted to hear—as I progress through my few words.
  I do not want to embarrass the Secretary of State's immediate predecessor, but he said on 2 February that he would
  "guarantee that we would not allow regulation to stifle enterprise".
  A few months later, he went on to concede that
  "too often regulations have been introduced with too little consultation and too little warning".
  He should know; he is in a perfect position to judge.
  More regulations than ever before—well over 3,500—were imposed on British businesses in 1999, but that record did not last long. Last year, 3,865 regulations that affect businesses were passed by the Government. I am told that the overall cost of complying with European Union and domestic regulations is equivalent to about 3.7 per cent. of our gross domestic product. That approach can only be described as control freakery—a phrase that is now entering the parliamentary lexicon—and it is unsustainable. Big firms can handle the extra cost involved, but smaller firms simply cannot; it is too much for them.
  The owners and managers of firms with 10 to 14 employees spent about 31 hours a month complying with such regulations, according to a NatWest survey conducted in the autumn of 1999. I suspect that they would probably spend longer doing so now. A more recent survey by Kingston Smith showed that 56 per cent. of small firms found employment regulations extremely or very time consuming; 42 per cent. reacted in the same way to pay-as-you-earn regulations and a similar proportion to health and safety regulations; and 35 per cent. found personal taxation forms confusing. I put myself in that 35 per cent., and I should be interested to
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  know whether any hon. Member does not do the same. Obviously, as all Labour Members are loyal to the core, they will leap up and say how simple all that is and how easy they find filling in their personal tax forms.
  In each of the regulatory sectors, significant numbers of businesses have doubted whether they are actually complying with the regulations. The Government, not small firms, are responsible for the complexity of the regulatory machinery. We all know that the Government have a number of inspectors who are expert in various disciplines—so they should be—but they expect small business men to be expert in all those sectors as well. That is a burden too far, but I am glad to say that the Government have been listening to what we have been saying. The inspectors are now trying to play—it will be a hard task for them—a more advisory role, providing guidance, rather than an enforcement role. I welcome that change and hope that it can be extended. The inspectors have to do their job, but only if a small business does not comply, having been warned. They should give advice when it is clear that small business men or women probably have not got a clue whether they are complying with the latest regulations.
  I do not want to encourage kleptomania, but the time has come for the Government to adopt—dare I say steal?—Conservative party policies on deregulation. That should not worry them too much; they have stolen so many of our clothes already that a few more will not do any harm. However, an independent assessment of the overall costs of regulation to the economy is urgently needed, as is a willingness on behalf of the Departments responsible for those regulations to accept targets to reduce the burden that they impose, year on year.
  New regulations should not be introduced unless, simultaneously, old ones are removed under the regulatory reform process. Sunset clauses should be used more often and more openly. Small businesses certainly have a good claim to be exempted from certain classes of regulation. I welcome the examples that the Minister mentioned, but such exemptions should be extended. There is evidence that businesses on the continent are allowed exemptions from European regulations, whereas we try to ensure that as many people as possible comply with them. If firms with 10 or fewer employees had been exempted from the parental leave regulations, more than 80 per cent. of firms would have been freed from an obligation that is especially onerous for micro-organisations, but only 20 per cent. of employees would have been affected. We should encourage that.
  The Minister tells us that deregulation is part of the Government's agenda. Ministers often say that they want regulations to be lifted, but I wonder whether any of them has ever run a business. If they had, they would immediately tell their Departments, "We are not winning." Out in the real world, the Federation of Small Businesses has produced a red-tape dossier, which lists regulations that hurt small businesses, and a booklet entitled "Constraints on Business Growth", both of which should be compulsory reading for Ministers. We recommend that our party should go away and read the book, "Men are from Mars, Women are from Venus"; well, I recommend that Ministers read the booklet "Constraints on Business Growth" and the red-tape dossier. If they did so, they would start to grasp the feelings of those in small business towards what the Government have done in the past few years.

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  We can bat surveys back and forth, but part of the survey that underpins that booklet was carried out by Strathclyde university, which produced the statistic that some 50 per cent. of small businesses wanted to expand, but the fact that more and more burdens are being lumped on to employers has led to some 56 per cent. of them voicing concerns about the effect of regulation in relation to employing staff. I do not know how many people were involved in the MORI survey. nor whether MORI comes that high up the poll for accuracy in various parliamentary predictions, but the Strathclyde university survey polled about 21,000 people.
  Geraint Davies: I, too, have run a small business. Does the hon. Gentleman accept that some red tape, such as the working families tax credit in the payroll, are part of enabling more people to access the job market, which reduces small business wage costs because more people are in the market? Although small businesses moan and groan about red tape, it is part of the reason why they are growing and creating more profit, and they cannot have it both ways.
  Mr. Page: The hon. Gentleman seems to be trying to fight both ways. Certain regulations are necessary; they exist to provide protection. We certainly would not want a complete free-for-all, without rules and guidance, but there is excessive enthusiasm for regulation and gold plating. Either he is right, or a substantial percentage of the small business sector and the Minister are wrong, and I am wrong. The Minister has just spent half an hour at the Dispatch Box arguing that regulations and red tape need to be reduced for companies, and I endorse that position.
  Nigel Griffiths: I spoke fog 20 minutes.
  Mr. Page: I hope to speak for only 20 minutes—so long as I do not keep getting interrupted.
  The Government inherited a golden legacy, and I admit that when the economy is going from strength to strength, help and protection for small businesses is not so urgently needed, but when there is a downturn, it becomes vital to try to reduce the burdens on them. The Chancellor claims that he has done away with boom and bust. I seem to remember that there was a king called Canute who thought that he could stop the tide, but he was unsuccessful, and I strongly suspect that no Chancellor can insulate a country from world conditions.
  The Minister and I are as one in believing that future employment will come from small businesses. Large companies are downsizing whenever possible and subcontracting out more and more work. The old concept of large businesses doing everything in-house is dead. Small businesses must be part of the supply chain. I know that over the years the Government have endeavoured to build up a supply chain involving small firms so that they can develop flexibility, which is essential, and larger firms can keep their products up to date and their designs fresh and exciting, rather than ossifying in traditional patterns.
  The Government use many fine words, but over-regulation and gold plating carry on apace, and each year sees a new record figure for regulations established. The Government have, using psychology, carefully named the taskforce headed by Lord Haskins. The fact that it is
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  called the better regulation task force, rather than the "less regulation taskforce", means that it will not necessarily reduce the burden of regulation, but rather try to make it better. However, the Government simply pile regulation on regulation.
  Lord Haskins has expressed his frustration about the fact that the taskforce is failing even to slow the remorseless flood of regulation that spews out of Whitehall every day. Much has been made of the Regulatory Reform Bill. I served on the Standing Committee that considered the Bill, and I wish it well, as we all do. However, the power to examine regulations comes into effect only when they are two years old. There is no mechanism to check the existing Whitehall regulation machine, as Lord Haskins is so obviously aware.
  The Small Business Service is supposed to explain regulations to puzzled, concerned business men, but the head of the service, David Irwin, has complained that the task grows more complex each day. Last September, he said that he wanted to introduce a red tape index, which would monitor the amount of regulation introduced each year by each Department, and then he would try to make the Departments cut that amount. That sounds fine, but the service has failed to meet its target, and a series of parliamentary answers shows that little, if any, progress has been made. Again, we have spin, but no delivery.
  I agree with almost all of the "Think Small First" report. Its executive summary says:
  "Businesses have a range of needs, including access to advice and training, finance, workspace, labour with the appropriate skills and information. They desire a tax and regulatory environment that is fair, simple and straightforward. Ideally, they would like a culture that is supportive of business rather than antagonistic."
  There is nothing wrong in all, but are businesses getting a regulatory environment that is fair, simple and straightforward? I do not think so. In an interview on the internet, David Irwin says that his task is to
  "manage all of the government's small business support programmes and cut back regulation".
  What power does he have to cut regulation? What power has any organisation to do that?
  Today, the Small Business Council has announced 21 measures. In true Labour style, the announcement was made on the "Today" programme. I look forward to hearing about those measures, but I look forward even more to hearing whether the Government will set up an independent organisation that could say "Stop!" when a regulation was proposed. The House could be told that the organisation had objected, and that would inform our decision whether to agree to the proposed regulation.
  There is talk of the Department of Trade and Industry wanting to establish a Brussels bureau to be closer to the source of regulation. The aim would be to make it self-sufficient in two years. That is a bit rich because the Government are saying to business, "Please pay us to tell you what regulations we will impose on you in the coming years."
  Returning to the Whitehall regulation sausage machine, I anticipate that anyone who objects to a regulation will be told by the Government, "Don't worry, if it does not work, we can use our new mechanism to examine it after two years." I wonder whether that attitude will permeate through the legislative process, and result in even less enthusiasm for halting regulation.

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  I advise the Government to consider our manifesto commitment to establish an independent body that can prevent a Department from introducing a regulation unless it is referred to the House of Commons. The House should be paramount in these matters. I hope that it will be paramount on Monday in the decisions on Select Committee membership because those decisions should not be imposed by the various Whips Offices. If the Government are twitchy on that subject, I have grave doubts that they would be prepared to set up an independent body to control regulation.
  We need independent assessment of the cost of regulation, and I hope that, at the very least, a red tape index will be established. If the Government do not have the courage to set up an independent body, they should use their toothless tabby, the better regulation task force, to produce information on the cost of regulation. The information should be gathered by the taskforce, rather than by the Small Business Service, because it has got to be seen to be at arm's length from the Government. Many Bills have a little note in the back, saying that the Government believe that they will incur no appreciable cost to industry, or whoever is affected by the legislation. However, when one talks to the people who are affected, they say that their costs will increase. That is why an independent assessment is necessary.
  The Government must put themselves in the shoes of small business men, rather than trying to adopt the attitude that nanny knows best. There was a classic example of that immediately after the Government came to power, when they established a statutory right to interest on late payments. I accept that it was a manifesto commitment, but they continued with it despite the fact that they were mistaken in thinking that it would enable businesses to solve their late payment problems.
  The measure has now vanished without trace, and if there is evidence that it has been a glorious success, I would like to see it. I have asked for such evidence, but nothing has been forthcoming. All I have is an article that was in a national newspaper a few months ago which says:
  "The Labour party is today revealed as a 'maximum risk' late payer of its debts—despite introducing laws aimed at forcing businesses to settle up on time."
  Again, Labour is saying one thing and doing another.
  I do not oppose everything that the Minister said. Much of it was supportive and helpful, and Conservative Members want to encourage that. We all want business start-ups to succeed, but that applies only to those that have a reasonable chance of success, rather than those set up by graduates of the "it seemed a good idea at the time" school. I am not saying that the UK should be like Germany, where anyone who wants to start a business has to be endorsed by the local chamber of commerce. There should be greater encouragement to ensure that, before a business starts trading, there is some check or independent evaluation of its business plan. This is not the time and place to develop that argument to the full, but we should do what we can to prevent the phenomenon by which companies start but then go bust in a very short space of time. That causes heartache not only for the individuals involved, but for all the people connected to the company—the people who have provided it with credit and supplied it with goods. Everyone gets hurt when a business fails.
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  Small businesses in certain parts of the country have also been badly hit by the foot and mouth disaster. The problems do not affect just farmers: they go broader than that. Thankfully, my constituency has not had this terrible disease visited upon it, but NSR Communications, a company based in Rickmansworth that supplies public address and communications equipment, has found itself in trouble because the orders for its equipment have not materialised. As we all know, a number of agricultural shows and fairs in the north of the country have been cancelled and that has caused huge problems in many constituencies.
  I pay tribute to the Secretary of State for Trade and Industry. NSR Communications was directed to the loans guarantee scheme and it was told that only companies that could demonstrate that they had a viable future would benefit from a loan guarantee. Obviously a company faces tremendous difficulties when it is affected by the problems caused by foot and mouth but, following my representations, the right hon. Lady went on to explain that she had asked her officials to discuss with the principal lending institutions the idea that viability should be considered on a long-term and short-term basis. She hoped that businesses that were successful before the onset of the disease would be supported by lenders until matters improved. I am grateful for her support.
  I shall not describe all the difficulties facing the small businesses affected by foot and mouth, but the support that the Government have announced is inadequate. As the Minister will know, at Question Time yesterday, I raised that concern at the Dispatch Box and he made great play of the fact that £3 million had been allocated to the north-west to help the companies affected by foot and mouth. Given the effects on small businesses, £3 million is a mere drop in the ocean and we all understand the difficulties involved in channelling the money to those companies to ensure that they succeed.
  We are as one in what we want to achieve, but we face a difficulty in how we are going to get there. The Government instinctively find it difficult to let things go and stop the control freakery that I mentioned earlier. Small firms are the main losers in that process. They lack the resources of the larger firms and they do not possess the same skills in dealing with the demands of the state. Just registering for VAT brings a 300-page book through the post from Customs and Excise. Many small businesses trying to stay afloat in competition with others cannot turn themselves into amateur tax men, health and safety officials or experts on employment law. The big firms can afford to employ specialists, but small firms cannot. Business Link can play an important role in that regard.
  Government policies and regulations are not always put directly or exactly into effect. That brings the policies and the mechanisms of policy into disrepute. There is an excessive regulation of small firms and an indifference to their problems except in times of obvious crisis. That is discriminatory and unfair.
  The gap between the two political parties is most obvious on this issue. We believe in less regulation and we think that small firms are likely to succeed in an environment in which the hand of the state lightly touches their affairs. The bureaucracy should exist to serve the interests of the people and of the small and large businesses that provide this country with prosperity. The Government's temporary political strength should not lead them to believe that the current conditions will last for

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  ever. Like the Minister, I believe that the future of employment and the future of companies in driving the economy forward rely on our small businesses. Conservative Members will do everything that we can to help them.
  10.25 am
  Mr. Tom Watson: I am delighted to make my maiden speech in the House of Commons on an issue that is of vital importance to my constituents in West Bromwich, East. Being elected as the Member of Parliament for West Bromwich, East is a great honour, and I am thankful for the faith and the trust that the people have put in me. However, I have to admit to more than a little trepidation, because I am following in the footsteps of two excellent parliamentarians.
  Peter Snape represented West Bromwich, East for 27 years. He left with a distinguished record of service to his constituents and party as well as with a reputation for toughness in the Chamber. The best compliment that I can pay Peter is to say that he never lost sight of where he came from. His working life began as a signalman in the Edgeley No. 2 junction signal box on the west coast main line and, despite his success as a Whip and as a member of the Labour party's transport team, he never forgot his roots. His no-nonsense manner and understanding of the world outside Westminster kept his feet firmly on the ground, but that would often get him into trouble with his colleagues. He was the only member of the Tribune group of MPs to vote for Denis Healey in the party's leadership election. However, Peter was always prepared to take a contrary view if it was the right thing to do.
  Parts of my constituency were also represented by another highly successful parliamentarian. Baroness Boothroyd was a renowned defender of democracy and champion of this House. Parliamentarians around the globe referred to her as Madam Speaker, but in West Bromwich she was affectionately and simply known as "Our Betty".
  Hon. Members will therefore know how tough it is to take up the role of MP for West Bromwich, East. However, the job has been made much easier by the welcome that the people of the constituency have given me.
  West Bromwich, East is a misleading name for the constituency because the seat takes in parts of Walsall, Wednesbury and Birmingham. Each area is fiercely independent, with its own identity and proud history. A quick glance at Wednesbury's "What's on" for July shows a community overflowing with activity—from whist drives to wheelchair basketball.
  One of the most frightening experiences of the election campaign was drawing the bingo numbers at the Friar Park millennium centre in Wednesbury. People talk about the fear that hon. Members face when making their maiden speeches, but let me say that this is nothing compared to the terror felt when pulling out the bingo numbers in front of Gladys Cooper and the 50 ladies from Friar Park who regularly attend her bingo club.
  The Great Barr parts of my constituency are in the authority of Sandwell but the postal district of Birmingham. They share a common interest with the Walsall part of my constituency in protecting our precious green belt. Great Barr hall and the green fields that surround it lie in the constituency of my right hon. Friend
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  the Member for Walsall, South (Mr. George), but a proposed new housing development on the site will affect many of my constituents, who fear congested roads and a reduction of our green spaces. Over the coming months, I will work to ensure that their fears are not realised.
  Given my background as an officer for Britain's most progressive trade union, the Amalgamated Engineering and Electrical Union, I hope that the House will forgive me if I concentrate my remarks on the engineering and manufacturing challenges facing small companies in this sector.
  After the industrial revolution, West Bromwich was known as "Spring Town". There was no shape or size of spring, for whatever use, that could not be made there. Springs of every shape and size were made and exported to all corners of the world. The springs made by Salter's Weighing Machines graced every kitchen table across the land, as well as shops, offices and factories all over the world. Anywhere where there was a need for accurate measurement of weight, a West Bromwich spring would be present. But that was the tip of the iceberg. West Bromwich also made springs for suspensions and shock absorbers. Ask for a spring for any purpose, and one of the small firms in what today we would call a cluster was able to make it. The byword was innovation.
  West Bromwich Spring in my constituency has been at the forefront of the industry for more than 100 years. It makes anything from a spring as small as a few millimetres in length that weighs less than a gram to one two metres high that weighs half a tonne. Although it is important to celebrate such long-standing success and technical expertise in an intensely competitive industry, it is important for us not to rest on our laurels. Put simply, we cannot live for ever on the innovations of our parents and, in some parts of the black country, our grandparents.
  It is worth mentioning how, in that early cluster of spring companies, innovation and technology transfer took place. After a long day of thirsty work at the hearth or forge, the springmakers would often drop by at the local pub for a fine pint of black country beer—a practice that many of my constituents still enjoy today. Over a pint, springmakers would fall into conversation about the trouble that they had in getting a particular steel to harden or their difficulty in making an accurate spring. As they chatted away, one would tell the other that he, too, had had the same problem and some time ago achieved the solution, which he then passed on. The next day, back at work, that solution would be put into practice, and technology transfer had occurred.
  Today, the technology challenges that small engineering and manufacturing firms face are much broader in scope, from the advances in new materials—composites, polymers and plastics—to the technological explosion in computers and telecommunications brought about by the e-revolution. Sadly, the range of technical support that they need can no longer be found in the local pub. Hon. Members should not think that I am trying to persuade them that there are no excellent hostelries in West Bromwich, East—the Vine and the Crown offer the best curry and beer in the country, and they sustained my campaign team through the long month of the general election.
  I warmly welcome the Government's commitment to supporting all small firms through the Small Business Service. I also welcome the commitment to creating a

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  regional manufacturing advisory service. It is important to regard the Small Business Service as we would a GP—as looking after the health of small firms in an area. However, when it encounters a technology-based firm with a particular technology problem, it must be able swiftly to refer it to the best possible body of expertise in the relevant technology, wherever that happens to reside.
  In an ever more complex world in which multiple technologies are required to make even more complex products, technology transfer from industry to industry and firm to firm will be achieved in many different ways, from seminars and conferences to the use of the internet and the world wide web. We must embrace all those methods to equip our firms to compete in an intensely competitive global market.
  On a personal note, I began by mentioning my predecessors. As a new Member, I cannot help but be struck by the history that swirls around us in this place—the statues of kings, queens and great leaders of the past and the ornate paintings and architecture—but if there is one thing that my predecessors taught me it is that we should always keep our feet on the ground. We are here to serve the people who elected us. The problems that they share, the challenges that they face and their hopes for the children whom they cherish are the reason why we are here.
  10.35 am
  Brian Cotter: I applaud the hon. Member for West Bromwich, East (Mr. Watson) for his interesting and lively maiden speech. He mentioned a couple of pubs and said a little about his constituency, but what struck me most was his interest in business and industry. We welcome an hon. Member with such a background, especially as there are fears that the manufacturing industry is in the doldrums. I look forward to hearing more from him.
  I declare an interest as managing director of a small manufacturing company. I should be running my business this morning, but I am attending the debate because I keenly anticipate the Under-Secretary making some interesting comments. I hope that my presence will be worth while. [Interruption.] I think that the Under-Secretary said, "One person, one job," but it is important that hon. Members have other experiences. I could not abandon my business when I was elected because my employees depend on me for their work. Like that of the hon. Member for West Bromwich, East and other hon. Members, my business experience contributes to this place. Perhaps the Under-Secretary has such experience, but many civil servants and others do not, and we need people who have day-to-day experience of business.
  Small business is usually the responsibility of a Minister of State. It is regrettable that the role has been downgraded—as some Labour Members have—and is now the responsibility of an Under-Secretary. I had hoped that the Government would mark the way in which they think about small business by appointing a Minister of State. It is a shame that they have chosen not to do that, although I hope that the Under-Secretary will be effective.
  It is also a shame that we are having the debate today. I am not sure whether this is the annual debate on small business. Perhaps the Under-Secretary will make that
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  clear. We need an annual debate, although that is not to say that we should not debate the subject at other times. The annual small business debate should be declared as such and held when many more hon. Members are present to participate.
  Having made those slightly jarring comments, I welcome the Under-Secretary to his job and look forward to hearing from him as he gains experience. We want the Government to produce new initiatives. Mere words to the effect that they support small business are not enough. I want something more tangible. Perhaps the hon. Gentleman will surprise us at the end of the debate.
  We welcome the Small Business Service. As a concept, it follows the United States model and is a good thing. However, after a year, it is worrying that many people wonder whether it has established a clear profile. The hon. Member for South-West Hertfordshire (Mr. Page) referred to effectiveness in regulation and legislation. I have been looking for such effectiveness in the Small Business Service, as there is in the United States service. The chief executive should have a powerful role and be able to intervene at the heart of government to ensure that regulation is effective and not over-burdensome.
  I am not the only one making such comments. The better regulation task force has recommended that the Small Business Service
  "should lead a project to deliver, in partnership with other representative bodies, a single internet portal",
  and that it should be more effective in delivering what it has been set up to do. It is essential that the SBS functions effectively to ensure that the small business community is at last represented—not just by an Under-Secretary but by an organisation at the heart of government.
  The Government had an opportunity during the foot and mouth crisis to demonstrate their commitment to small businesses, but they did not come up trumps—nor, indeed, did the Small Business Service. When the crisis broke, many small firms were unsure where to go for the help promised to them. At the time, Government help was very modest, and it was regrettable that, on telephoning the helpline, people found out that they had to pay 8.75 per cent. interest on any deferred payments. That was subsequently put right. The SBS should have come into play quickly and effectively, but it did not. We support the concept of the Small Business Service, but it must be effective.
  The Under-Secretary spoke about the Business Link network. The SBS has indeed improved it by issuing franchises, but I still hear reports about their variable effectiveness. The Under-Secretary highlighted the Phoenix scheme and others, and there are some good ones, but we look to him to spread them throughout the country to reach small and micro-businesses in particular.
  The Government have today been politely castigated by the Small Business Council, whose report has drawn attention in particular to rules on consultation of small business. The Government and the SBS have not been effective in consulting small businesses so that such firms have a better chance to affect legislation.
  The Liberal Democrats have consistently raised concern about regulatory impact assessments. On the one hand, I am glad that the council has said that Departments have failed to produce what is required, but on the other,

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  I am disappointed that it has had to do so. We have hammered on about the issue in this Chamber and elsewhere. I hope that the Under-Secretary will take the council's report very seriously.
  We broadly welcome the proposed enterprise Bill. We hope that it will be effective in many areas. We welcome proposals to abolish the Crown's preferential right to recover unpaid taxes, to remove automatic VAT fines and to crack down on monopolies and cartels, and the possibility of a new flat rate of VAT. That will be music to the ears of many small business owners.
  I hope that the Government will seriously consider including in the Bill a dedicated payments regulator, as recommended in the Cruickshank report. Many in the small business community, the Liberal Democrats, the Forum of Private Business and the Federation of Small Businesses have been concerned about the outcome of the Cruickshank report. At the request of the banks, there has been a delay to give them more time to consider evidence. As the days go by, it is incumbent on the Government to take the report and the issue of the banks very seriously, because we need action and support for small businesses. The banks should not be given time to be less helpful to business than they should be; the situation cannot be allowed to continue.
  I am disappointed with the Government on business rates, on which a White Paper was published in the last Parliament. Time and again, the small business community has put concern about business rates at the top of its agenda. Red tape and bureaucracy, about which small businesses have strong concerns, can be difficult to tackle—although my party has clear proposals, having identified 25 unnecessary burdens which in government we would repeal right away, and we are examining many others—but the issue of business rates is very clear.
  Small businesses have to pay a very large proportion of their turnover in business rates, for which they get very little return. They have to pay as much as 35 per cent. of turnover, which is clearly a burden, as against larger concerns, such as supermarkets, which pay as little as 2 to 5 per cent. of turnover. I pledged at the general election that we would continue to fight in this Parliament for a scheme to help small firms with rates.
  Nigel Griffiths: I shall address as many points as possible in my winding-up speech, but I must ask the hon. Gentleman what is his policy? Who does he think should meet the cost, and how much would small businesses have to pay?
  Brian Cotter: We are very clear on that. Our policy is one of business rate allowances. Small firms under a rateable value of £25,000 would qualify for rate relief on the first £1,500 of that rateable value. There would be no red tape or unnecessary burdens, and 87 per cent. of firms in the country would qualify for such relief, saving between £600 and £700 each. The Under-Secretary asked for the Liberal Democrat scheme, and I have made it absolutely clear—it is in our manifesto. I ask him for the same clarity and commitment today.
  The Under-Secretary might say in response that, under his Government, 50 per cent. mandatory rate relief, and so on, has been introduced. All such schemes are very good and to be applauded. Before the election, a Bill was introduced proposing a 50 per cent. mandatory rate relief
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  for village shops and post offices. The original scheme was extended to pubs and small garages. However, let me point out in anticipation of the Minister mentioning that scheme that the £9,000 threshold was impossibly low, with the result that only the very smallest of, for example, pubs would benefit. I challenge the Government to come up with a more helpful policy. My hon. Friends and I strongly support the schemes that have been aimed at rural areas, but businesses in large urban areas also need help.
  Mr. David Heath: My hon. Friend is right. The other problem with the schemes introduced to support rural small businesses is that they apply only in those local government areas that are classified as rural for government purposes, so a business in an extremely rural part of a district council area that is otherwise suburban or urban will not qualify, which seems ridiculous.
  Brian Cotter: That is correct. During the foot and mouth crisis we came across the problem of areas not being regarded as in need of assistance. Rather than continuing to talk, the Government must do an awful lot of work to help people. Furthermore, from day one of the foot and mouth crisis, we Liberal Democrats urged that the help proposed should apply to businesses with a rateable value of up to £50,000, but only in the last few days have the Government announced that they intend to extend their assistance in that way.
  Before the election, the Government proposed a supplementary business rate scheme, which we felt would impose one more burden on small businesses, so we are glad to see that the Government have abandoned the idea. Instead, they talk about creating business improvement districts. Small businesses welcome the concept but we urge the Government to ensure that the small business community has real input into where the districts should be and how they will operate. Small businesses must have a voice and their concerns must be addressed if the districts are to be effective in ensuring that small businesses are not overwhelmed as they have been in the past by initiatives in which larger companies have a greater say.
  We could go on for ever about red tape, but there are clear issues. Excessive regulation comes from many quarters: the European Community is often blamed and I, as a Liberal Democrat, would never say that everything that comes from Europe is to be accepted willy-nilly. However, we in this country have for some reason developed a culture whereby a few pages are turned by civil servants into a sheaf an inch thick. That has happened often. I urge the Minister to make a commitment to resolving that issue. In Holland, the part-time working regulations comprised two or three pages, whereas we ended up with 40 or 50. That has to stop.
  Another issue arises when small businesses are turned into tax collectors for the Government, through the working families tax credit, for example. The Liberal Democrats believe that the credit is a good measure, but small firms should not have to implement it. Some other means should be found. Similarly, stakeholder pensions have imposed a burden on small businesses in terms of both paperwork and cost. It is likely that pension firms will help small businesses to run the schemes—but at

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  a cost. We are concerned that in a few years' time, there will be only two big pension companies left to run stakeholder pensions and they will be able to present small firms with a bill that they have to pay.
  There are other Government proposals on tax credits that I ask the Minister to address when he winds up the debate. Other issues arise in the context of red tape, including consultation, which was addressed by the Small Business Council today, and a longer lead time for new legislation.
  As the hon. Member for South-West Hertfordshire said, small businesses suffer from inspections, some of which may be unnecessary. Many companies endure inspection after inspection. In 1997, 24,000 inspectors carried out 465,000 inspections. Many will have overlapped with each other and been conducted in a draconian fashion. The Government should take the lead in that area.
  We Liberal Democrats believe that there should be an inspectorate specifically for small businesses—one that exercises a light-touch regime whereby inspectors go into businesses to advise them, rather as we hope Ofsted will in education. If firms are clearly non-compliant, heavier teams could be brought in. In response to our initiative, the Government asked how one inspector could possibly know about all the different matters that require inspection, but it is equally valid to ask how small businesses can be expected to cover all those matters. If the Government do not expect a single inspector to be able to understand all the issues, how can they expect a small business man to do so?
  I should be interested to learn whether this is to be an annual debate. I believe that an annual report on small businesses should be presented to the House for an annual debate. I urge the Government to consider compiling such a report on the impact that legislation has had on small businesses in the last year. That could provide an effective means of demonstrating the Government's commitment to examining the burdens on small businesses. Furthermore, by concentrating minds, it might ensure that many regulations were disposed of.
  The Liberal Democrats are looking for a lot from the new Minister. I hope that we can ensure that the Small Business Service is a more effective and stronger representative of small businesses. I look to the Government to produce an effective annual report on small businesses, and I hope that we will have further debates—if not annually, on some day other than a Friday so that more Members have an opportunity to examine that report on the Government's handling of small businesses.
  10.58 am
  Jon Cruddas: It does not seem long since I was the designated Labour party researcher in an historic by-election in mid-Staffordshire. We all knew at the time that we had a candidate who would go far in Parliament, but I could hardly have imagined that 11 years later, that candidate would call me to make my maiden speech. Thank you, Madam Deputy Speaker, for this opportunity.
  I congratulate my good and hon. Friend the Member for West Bromwich, East (Mr. Watson), who I know will be a powerful advocate on behalf of working people. It is a great honour for me to represent the people of
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  Dagenham. I pay tribute to my predecessor, Judith Church, who served them loyally and energetically. I know that she will be missed by many hon. Members and that everyone joins me in wishing her well for the future.
  I am the fourth Labour Member of Parliament to represent the people of Dagenham. Before my immediate predecessor, Bryan Gould represented the constituency for 11 years; before him, John Parker was its Member of Parliament for 48 years, eventually becoming Father of the House. I acknowledge the work of all my esteemed predecessors and shall seek to continue their work.
  To outsiders, Dagenham is synonymous with the Ford plant, and the fortunes of my constituents are seen as almost solely dependent on the nature of Ford's involvement in Dagenham. Indeed, one wag said to me this morning that contributing to a debate on small firms was appropriate, given that Ford is pulling out of Dagenham.
  That attitude is precisely the problem that we face in Dagenham. The end of car production in the first quarter of 2002 is seen by many as devastating for both the town and local people. Indeed, press reports at the time of the announcement talked of a dying town. It is my job to dispel those distorted and simplistic views. Dagenham is well situated to gain from its geographical location and historic association with manufacturing industry. Alongside that, the strategies of the Labour Government in east London and the priorities of the London Development Agency and the Mayor all point to the positive opportunities that are opening up in Dagenham.
  My constituency partly covers the Becontree estate, the largest council estate ever built in Britain and one of the largest public housing projects in the world. It is often argued that Dagenham was built for the sole purpose of supplying labour for the Ford plant, yet the estate predates the building of the Ford complex.
  However, it cannot be disputed that Dagenham has its share of economic and social problems. A cursory look at some of the statistics in the borough can make for difficult reading. Adults there have the second lowest level of numeracy and the fourth lowest level of literacy in the country, and 4 per cent. of residents have higher education qualifications, which is among the lowest in the country. We have the lowest wage economy in greater London. Barking and Dagenham remains one of the most deprived boroughs in the capital—indeed, in the whole country.
  Today, however, I want to flag up a positive agenda for economic and social change in Dagenham and, in so doing, to overcome misconceptions about the area. Geographically, Dagenham sits at the centre of the so-called Thames gateway sub-region, an increasingly integrated area that includes 13 boroughs and 2 million people, and covers many of the most deprived communities in the country. Because of the location of the Ford motor company, Dagenham will remain the manufacturing centre of the Thames gateway.
  East London is an exciting place to be at the moment. In the political economy of London, the centre of gravity is moving eastward. The Mayor talks of shifting priorities from west to east London and building a new city to the east. The nature of the London housing market and the dynamics of transport congestion are pushing London eastward, and the people of Dagenham are set to benefit from the major changes that that will bring. I shall now consider some projects that are taking place.

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  First, despite the press reports that I mentioned earlier, there are considerable developments on the Ford Dagenham estate, some of which will be discussed by the company later today at a press conference. A new high-technology engine manufacturing plant is soon to be built and will be one of the most modern manufacturing facilities in Europe. Annual engine production will rise to 900,000 units a year by 2004. After the end of car assembly, more than 5,000 people will still be employed on the Dagenham estate, which will continue to be London's largest industrial centre and will become Europe's premium manufacturing facility for diesel technology.
  In addition, a new supplier park is to be created in Dagenham on London Development Agency land to support the new diesel facility and will attract small and medium-sized, high-tech businesses. On top of that, a proposed new centre for manufacturing excellence on the Ford estate will provide education and training, from basic skills right through to advanced postgraduate degrees for local people.
  We must also consider some of the major infrastructure projects. The scarcity of river crossings over the east Thames remains a major impediment to successful economic regeneration. East of Tower bridge, there are only three road and three rail crossings, compared with 26 between Blackwall and Battersea. The proposed package of three new river crossings will have a major impact on creating employment and development opportunities.
  The channel tunnel rail link, which will go underground in Dagenham, is vital if international and domestic connections to London and the south-east are to be created and major hubs for new investment established. Hopefully, the Docklands light railway will be extended into the borough, linking it to major job generation sites across east London. Crossrail remains a catalyst for regeneration and strategic regional integration. Options linking Dagenham dock and the key employment sites in the Royal docks and Canary wharf" will be high on my agenda. Within Dagenham itself, change is evident, and will be of direct benefit to the community. The heart of the Thames gateway project is providing a new economic future for Dagenham and south Hornchurch to the tune of nearly £500 million.
  Just outside the constituency border, the new Oldchurch hospital will be built, and I shall work to ensure that it is completed on time. The local education authority and all the people who work in our schools deserve special mention, as their work has ensured that the borough has some of the fastest improving schools in the country. The Government's strategy to confront pensioner poverty and provide dignity in older age is beginning to bear fruit, as is the tax credit regime for young families.
  I could go on; overall, a lot is happening. My job is to ensure that local people benefit from change, and to put the case for Dagenham at Westminster. The radical industrial strategy for east London puts paid to some of the simplicities common in debates about the so-called new economy. Regeneration is based on large-scale manufacturing, construction and civil engineering projects, yet it includes large, medium and small firms at the cutting edge of research, design, skills and technology. That is not the old economy; it is the economy of the future for large parts of east London.
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  Dagenham has a strong tradition of industrial working class organisation. Before the general election, I worked in Downing street, seeking to develop a positive trade union agenda and better employment rights for people at work. In the House, I shall continue to push that agenda to ensure dignity in the workplace.
  The future is bright for the people of Dagenham. Geographically we sit at the centre of the Thames gateway sub-region. Economically, the centre of manufacturing in London will remain within Dagenham even after the regrettable end of car assembly at Ford. It is my job to help to drive the agenda of change in east London. I hope that we can begin a transformation materially to change the lives of the working people of Dagenham. That is why I joined the Labour Party.
  11.7 am
  Annabelle Ewing: I am grateful to have been called early in our debate to make my maiden speech in Parliament. I am not entirely sure of the convention for successive maiden speeches, but I should like to congratulate the hon. Member for Dagenham (Jon Cruddas) on his eloquent and interesting speech; I am sure that he will serve the interests of his constituents well.
  It is with trepidation that I make my maiden speech today, because I note that it is Friday the 13th. For some people, 13 is their lucky number. My lucky number, however, would have to be 48, which, as some hon. Members will be aware—certainly Conservative Members—is the size of my majority. In my constituency of Perth, such a small majority is not without precedent. Indeed, one of my illustrious predecessors, Sir Nicholas Fairbairn, who was well known to the House as a colourful character and eloquent member of the Scots Bar, had a majority of 53 when he first came to the House in 1974. He went on to hold the seat for 21 years; I take that as a good marker for my own tenure.
  I believe that my constituency of Perth likes determined and strong-minded individuals who are prepared to speak up for the interests of their constituents, and there is no better example of a real fighter for her constituents and for Scotland than Roseanna Cunningham, my immediate predecessor and fellow member of the legal profession. Roseanna entered the House in June 1995 as the Scottish National party Member for Perth and Kinross—as the constituency then was—following a spectacular by-election victory. She went on to hold the seat in the 1997 United Kingdom general election. That was the first time in the SNP's history that a by-election victor had held a seat in a general election. In doing so, Roseanna moved the cause of Scottish independence significantly further forward.
  As many hon. Members will be aware, Roseanna was a forceful debater and never failed to get her point across. She was a champion of the land reform debate, and succeeded in wresting further powers for the Scots Parliament from the Government during the passage of the Scotland Act 1998. There were very few concessions during the passage of that Act, a point that will not be lost on the people of Scotland in the years to come. Roseanna Cunningham is now a Member of the Scots Parliament, and I feel sure that all Members in this place would wish her well in her continuing work in that Parliament.
  For me, it is a great privilege to have been elected to serve as the Member for Perth. I have heard claims in the House during the past few weeks on the part of various

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  Members while making their maiden speeches to the effect that their constituencies are the most beautiful. I would respectfully have to differ, for who, having been to Perthshire, could fail to be enchanted?
  My constituency consists of the fair city of Perth itself, where some hon. Members will be interested to know that the fair maids reside, and the peaceful village of St. Fillans, nestling on the shore of Loch Earn to the west. It extends through the southern highland town of Crieff and beautiful Comrie down Strathearn to the thriving town of Auchterarder and the neighbouring village of Aberuthven. It includes the gentle plains of the Carse of Gowrie and the historic village of Abernethy. No visitor to my constituency could fail to be impressed, and no visitor could fail to be struck by the diverse nature of the countryside, with the lower Grampians to the north, the Ochils to the south, the silvery Tay stretching to the east and beautiful rich farming lands throughout the constituency.
  A visitor to my constituency would be able at the end of the day to unwind, perhaps in the beautiful Gleneagles hotel with a wee whisky, the headquarters of Highland Distillers being based in Perth. With the whisky we, of course, have the water. We have Highland Spring, the world famous mineral water producer, which is based at Blackford in my constituency.
  A visitor will also quickly become aware of the importance of small firms to the local economy of Perthshire, particularly in the tourism sector, which has been hard hit by the foot and mouth crisis. It must be said that the tourism sector has been struggling for some years now against the backdrop of the high pound policy and the highest fuel taxes in Europe. Those are both Government policies, and regrettably both are currently outwith the jurisdiction of the Scots Parliament. It must also be said that the shambolic state of the Scottish tourist board, which is known as visitscotland, but perhaps not for much longer, has not helped the situation for those who are trying to make a living in the tourism sector.
  It is not only tourism that is suffering. Small firms in general in my constituency, as elsewhere in Scotland, are burdened with over-regulation, excessive red tape and high business rates. In Scotland, we once again have higher business rates than in England. The poundage has been decoupled by the Scottish Finance Minister and the Labour-Liberal coalition in the Scottish Parliament. Small businesses are overtaxed and they are acting as unpaid tax collectors. Those problems are exacerbated in my constituency by the lack of a 21st-century telecoms infrastructure, with very little broadband communication and high-speed ISDN—integrated services data network—available outside Perth city.
  Notwithstanding what the Minister said, in my constituency there is now a downward trend in business start-ups. There is also an increasing trend of business failures. Those failures do not take place because those concerned go on to start another business. They are the result of people being unable to afford to keep their businesses going. That is the depressing reality.
  In Scotland, small firms are the motor for growth. Without a supportive framework for small businesses, we cannot move forward. Indeed, growth in Scotland in the past 30 years has averaged a paltry 2.1 per cent., lagging behind the rest of the United Kingdom and our other European competitors.
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  The simple fact is that the Union is not working for Scotland. We need to ensure that full financial powers are returned to Scotland so that we can create the right economic conditions for our small firms to flourish and for our country to prosper, a country where we will not be ripping out key services from our local hospitals, as is the threat in my constituency to Perth royal infirmary. In short, Scotland needs to return to the normal status of independence, for it is only with independence that Scotland can move forward.
  I am honoured to have been elected as Member of Parliament for Perth and I fully intend while in the House to champion the interests of small firms and to stand up for my constituents and my country. In so doing, I am following in the illustrious footsteps of my mother, Winnie Ewing, former Member for Hamilton and then for Moray and Nairn, and now a Member of the Scots Parliament for the Highlands and Islands. I am also following in the footsteps of my sister-in-law, Margaret Ewing, former Member for Dunbartonshire, East and thereafter for Moray, and now the Member of the Scots Parliament for Moray. One of the Doorkeepers, who remembered both my mother and my sister-in-law, said to me the other week that it seemed to him that as soon as one Ewing left another one arrived fairly quickly thereafter.
  My mother is sitting in the Speaker's Gallery, and I feel that it would therefore be appropriate for me to conclude by echoing a statement that she made at the time of her famous by-election victory in Hamilton in November 1967. That is that I and my hon. Friends are not here to settle down; we are in the House to settle up for Scotland.
  11.15 am
  Geraint Davies: I was enriched by and pleased to hear the three maiden speeches, in particular the one delivered by my hon. Friend the Member for West Bromwich, East (Mr. Watson) whose predecessor, Peter Snape, I knew well. Another West Bromwich Member was Baroness Boothroyd, whom we all knew in the House as a great character. I am pleased that my hon. Friend the Member for Dagenham (Jon Cruddas) is still in the Chamber. I am almost one of his neighbours. I am aware of the difficulties in Dagenham and the concerns over Ford but pleased by the recent news about new production and new clusters. I am sure that he will be a strong advocate for the area and its people, who have such opportunities alongside such problems.
  I was pleased to hear the comments of the hon. Member for Perth (Annabelle Ewing), whose speech I much enjoyed. I look forward to going on holiday to her constituency one day but hope that I am able to do so before I am required to have a passport to go there. I am pleased to see her mother here as well.
  Like others who have spoken, I have a background in small business. In the first instance, however, it was in multinational companies. I managed a marketing department; I then started a couple of my own businesses in travel and in graphic design, a business which has an international clientele. My interests are declared in the Library. I come to this place with an idea of some of the difficulties of running a small business. That runs alongside my admiration for the public sector, having been the leader of Croydon council.

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  I shall talk in general about the need for a strong and stable economy, which is the start point for small business success. I am sure that we can trade all sorts of statistics across the Chamber. The Government, however, are bound to be in a stronger position because more small businesses are being created than ever before and there are fewer business failures. That is partly due to the support that has been given to small businesses. Largely, however, it is due to the overall economic success that we are now enjoying. That is the result of the prudent economic management of the economy, and not least the independence of the Bank of England, which has guaranteed low interest rates and low inflation rates. Proper cost control by my right hon. Friend the Chancellor of the Exchequer has ensured that we have an economic climate in which small businesses are succeeding.
  When small business people approach me and talk about regulation and red tape, they must put that in the context of a successful economy that is delivering more prosperity, more growth and more profits. Alongside that environment, the Government are introducing an agenda that has made work pay. We have the working families tax credit and other opportunities that have enabled people to access the market and to earn enough wages to make work worth while. These people are often employed in small businesses. I said in an intervention that regulations are part of an equation: if we did not have regulations and opportunities, wage costs for small business would be much greater, as would the scarcity of skills, and the success of small business would be much less. We must examine the entire picture rather than take an opportunistic approach, as the Opposition do, and try to pick off little bits and misrepresent the impact of red tape.
  Mr. Page rose—
  Geraint Davies: I am pleased to take an intervention from the hon. Gentleman.
  Mr. Page: In the real world, employers find the operation of the WFTC onerous and if an employer—especially in a small firm—has to choose between two applicants, one of whom is entitled to the WFTC, there is a strong temptation not to pick that applicant.
  Geraint Davies: The reality is that the WFTC guarantees a minimum weekly income of more than £200 for a family. In the hon. Gentleman's example, the employee would be taking a job that paid less than that, and it is obvious that the small business person has a profit motive not to pay the WFTC on top of that. If the regulatory cost were more than the reduced wage saving, the employer would not take the employees on. In fact, employers who complain about the WFTC are those who are employing people at that level of pay. Those employees are now earning livable wages.
  The Labour party believes in decent, basic wages as well as access to work, especially for people with young families. That is an important part of our legislation. If the burden were so heavy, more and more small firms would resist employing people entitled to the WFTC. The reality is that some of those employers want to pay slave wages and to have no regulation. In today's successful economy, wages are being bidded and, moreover,
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  in regions outside London, the WFTC is helping to generate more jobs and eliminate the poverty experienced under the disastrous years of Tory rule.
  Mr. Page: My point is that the Government are shifting responsibility that should be theirs on to companies—in the WFTC and in many other respects. We do not object to the WFTC—I have been an advocate of such support for a long time—but it should be paid as a benefit. The companies should not have to pay it; the Government should do so.
  Geraint Davies: My right hon. Friend the Chancellor would say, "Yes, Ronald Reagan thought that that was a great idea." I will not resort to that. The WFTC was test-marketed in the United States and found to be effective in drawing people into work, widening the labour pool and therefore lowering average labour costs.
  I realise that the hon. Gentleman's point is that the WFTC should be managed through the benefit system and not the corporate system. The difference is that we are trying to empower people through work. The current system tells people, "You are working and you deserve this money, with a subsidy provided by the Government." The other way would be to say, "You should queue at the benefit agency for a hand-out." We are trying to achieve a cultural change by creating a work ethic and an entrepreneurial culture whereby Britain can succeed in a global economy, where it failed under the Conservatives.
  I suggest that the hon. Gentleman could not provide a list of prospective employers who do not take people on because of the WFTC. When I ask people how their business is doing, whether it is profitable and whether they are employing more people, they say yes to all those questions but they still moan about the payroll. Most people in that position have some accountancy support that provides assistance to their business. Red tape is not a good thing, but regulation that leads to lower wage costs, higher engagement in the market and greater success for small businesses must be our priority. The hon. Gentleman's suggestion would be counter-productive.
  Creating an entrepreneurial culture is easier said than done. We have already heard various pronouncements from the Government about encouraging an entrepreneurial culture in schools. We will have to create the space in the curriculum to do that and prioritise among the many excellent initiatives that we have introduced. Thanks to the rethink of the new AS-levels, we will be able to strip down the curriculum. If we genuinely want to introduce entrepreneurial opportunities in schools, we will have to think carefully about where they fit in.
  New Addington, Croydon, which historically has not delivered the best education results, is now an education action zone and we have links with businesses—some of which I initiated—that enable mentoring and allow the pupils to experience working in small businesses. That gives them self-esteem and an opportunity to experience life beyond a traditional educational environment. We may wish to pursue that approach in other schools.
  The next big economic challenge for the Government, after creating stability in the economy and an extra 1 million jobs, is to make those people who are in work more productive. That is the big prize. We all now know that average productivity in Britain is some 45 per cent.

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  below that in the United States and some 20 per cent. lower than in France. Productivity growth has been slow because of the influx of unskilled workers, and one of our missions must be to enable them to become more productive. Part of that will require education outside the traditional education system, as well as further investment in education itself. We should not concentrate exclusively on small business, but we should always remember that small businesses require employees with skills and productive aptitude.
  The recent OECD report on the impact of investment in education on economic growth showed that some 0.4 per cent. of the annual growth of 2.5 per cent. that we enjoy can be attached to educational investment. In the case of the US, that figure falls to 0.07 per cent. Studies show a high return from investment in quality education in Britain and I hope that the Government will continue to increase investment in that area. It will increase from 4.9 per cent of gross domestic product now to 5.3 per cent. by 2003.
  We also need to provide more access to higher education, with student debt relief and imaginative ways to enable people from poorer backgrounds to enter higher education. That will enable them to achieve higher productivity, not least in computing and the high-tech arena. That increased productivity is important to small businesses, because the internet and computer facilities enable them to overcome the hurdles of transport cost and distance. Computers enable speed of exchange and open up wider markets that were formerly available only to large businesses. For example, I was involved in setting up a business that has only a handful of people but services 130 countries with graphic design online. A few years ago, that would not have been possible. Higher education enables small businesses to access IT.
  I mention transport in passing, and the Government have a 10-year transport plan of £180 billion. Any business that sells actual physical products is aware of the costs of delay and congestion, which are enormous burdens on productivity. The Government are now investing in tackling that issue.
  Investment in health has not been mentioned, but it is very important for small businesses. If a small business person has a health problem that needs attention but has to wait six months for treatment, that will have an adverse effect on the business. Small business people feel that they cannot afford to become ill and spend time away from running their businesses. The Government intend to invest a quantum amount in health, but we should also consider the economic and productivity impact of different decisions made by the health service.
  With regard to red tape, entrepreneurs do not want to spend all day filling in forms. It is important to achieve a balance. Through their competitive and profit-making objectives, big companies aim to compete with other big companies and crush smaller ones out of existence. It is in the interest of big companies to encourage red tape, because that hits small companies more than larger ones. We must recognise which companies have the ear of Government. Big companies, with their public affairs departments and consultancies, can penetrate an extremely complicated system and gain access to people with influence. That clearly has an impact on small business and thus on competitive choice.
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  The hon. Member for South-West Hertfordshire (Mr. Page) mentioned the sum of £10 billion as the red tape cost to business. That is a spurious figure thrown around by the British Chambers of Commerce. It is not helpful, as I pointed out earlier, because it includes the cost of the minimum wage and the working time directive, which there is no intention to change. However, there is a significant cost arising from red tape. I support any attempts by the Government to reduce the complexity of the payroll. Indeed, the Government have given a commitment to reduce payroll burdens and corporation tax, which I welcome.
  With reference to the Inland Revenue and Customs and Excise, I do not want a large number of small businesses going bust because the Government move in for their money. When a company is having trouble paying its debts, it is often the Government rather than the banks or other firms to which it owes money who pull the rug from under it. When a company goes down and stops selling its products, its creditors do not have much chance of being paid. I know that the Government are reviewing the position and recently announced that Customs and Excise would no longer be the first creditor to be paid. More flexibility is needed.
  Council tax has been mentioned. The Government are introducing a new system of subsidies, which will mean a 20 per cent. reduction in business council tax for 60 per cent. of companies. I welcome that.
  We are not specifically discussing retail businesses, but my hon. Friend the Minister referred to ethnic small business. The evolution of ethnic small business is often from small retail businesses—shops—to professions such as accountants and doctors in the second generation, and bigger business. I am acutely aware of the plight of the community shopping parade, where pharmacies have recently felt the squeeze from lower drug prices. The gradual but consistent and chronic erosion of community shopping facilities has social costs for poorer and older people and those who do not have access to transport.
  There is a rolling programme of the concentration of power in the retail community. In my area, Tesco moved out of a large estate of 20,000 people after 31 years, undermining shopping facilities there. The Competition Commission has done a lengthy study of the competitive impact of supermarkets, but the output is not tough enough. The required codes are simply dreamed up by the suppliers and retailers. We should examine the situation carefully and perhaps offer more support to small retailers, through council tax and planning.
  The Government intend to make planning more business-friendly, but I am not sure what that means. Councils need to study the composition of their boroughs and the relationship between larger and smaller companies there, especially retail businesses, and draw up plans to support small retail centres, rather than allowing them to fall away as a result of the power of large retailers, which rests in their ability to negotiate much lower unit costs. Transparency in that area is needed.
  I am glad that the Government are taking initiatives on crime prevention and are aware of the problems of parking. Small retailers face multiple problems. The removal of small retail opportunities creates food deserts, which in turn result in health problems in many neighbourhoods where people cannot buy fresh food

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  unless they catch two buses. There are broader social and health problems, as well as the environmental problems arising from increased car travel to and from shops.
  On financing, I am glad that the regional development agencies are up and running. Part of their remit should be to examine small business innovation and competitiveness. I welcome the progress on regional venture capital funds, which traditionally have not taken much notice of small business. I hope that the reduction in capital gains tax will encourage more investment in smaller operations. There are other models that could be considered—for example, German banks take shares in small businesses.
  The first step is to put small business higher up the agenda for economic success. The Government have done that, and I am proud and pleased to be able to make a contribution to the debate, having a firm background in small business. I hope to encourage more support from the current Administration.
  11.37 am
  Mr. Roger Gale: I apologise to the House for my absence for a short period earlier this morning. My right hon. Friend the Member for Haltemprice and Howden (David Davis)—or for what some of us still fondly know as Boothferry—announced his retirement from the leadership stakes of our party. As one of his supporters, I wished to be there to support him. Those who know my right hon. Friend well will understand that the dark horse has been taken away merely to be reshod, not shot. I am sure that we shall hear a great deal from him in the future.
  I add my congratulations to the three hon. Members who have so far made their maiden speeches this morning. I understand that there are others to follow. The previous Member for West Bromwich, East, Peter Snape, was a personal parliamentary friend and was known on both sides of the House for his robust debating performance. It will be interesting to see whether his successor is able to develop the same fierce parliamentary skills as Snapey had.
  The hon. Member for Dagenham (Jon Cruddas) referred to the welcome announcement for his constituents and for the country of the development of new diesel engines, which I heard, as did many of us, on the wireless this morning. I am sure that that will be good news for his constituents. I wish him and them well. I have a proprietary interest, though not in diesel, as the driver of a modest Ford Escort estate with only 69,000 miles on the clock. If he knows the man who can cure the rattle underneath, I should like to talk to him afterwards.
  We welcome the hon. Member for Perth (Annabelle Ewing). Although the conventions deny us the opportunity to see visitors in the House from these Benches, it is a pleasure to know from her that her mother is present this morning. As the hon. Lady rightly claims, she represents one of the most beautiful constituencies in the country, though not quite as beautiful as North Thanet. I had a dear friend who invited me to go to Perth for a weekend some time ago, to take part in an occupation known as hill walking, which I discovered was a euphemism for mountaineering, but I thoroughly enjoyed the experience. I am glad that we are discussing small firms, because it seems to me that the SNP is turning into a small, family business. In view of the hon. Lady's more
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  partisan remarks, if she could simply let me have on a postcard the answer to the West Lothian question, I should be most grateful.
  I was hoping to hear the maiden speech of the hon. Member for Birmingham, Perry Barr (Mr. Mahmood), and I expect that we will hear it shortly, provided that he catches your eye, Madam Deputy Speaker. I first met his predecessor in 1974 during the general election campaign when Jim, now Lord Callaghan, was on the hustings and I was working for the BBC. I spent a day going round the country with Jim following the Labour party campaign. That in itself was an interesting experience. We ended the day in Perry Barr where a young man called Jeff Rooker was seeking his first election to Parliament. As we all know, 26 years later Lord Rooker is wearing ermine. It remains to be seen whether his successor follows that far in his footsteps. I suspect that by then we may have a wholly elected upper House, and if we do, it will not be before time. I wish the hon. Gentleman well and I look forward to hearing his speech.
  Turning to this morning's debate on small firms, I wish to touch on one general area and then briefly deal with three specific matters: the concerns being expressed by proprietors of residential and nursing homes; the concerns being expressed by the National Federation of Sub-Postmasters and the difficulties that small rural post offices in particular are facing; and the concerns of those engaged in farming, which used to be big business, but is rapidly being turned into small business.
  The British Retail Consortium, in a briefing note that has probably been sent to many hon. Members says:
  "The BRC accepts that regulation is an important function of government, however excessive regulation adds cost to business and in an industry as competitive as retail that in turn adds to consumers through higher prices. Many regulations have perfectly sensible aims that retailers support, however all too often instead of ensuring high standards, regulations force hours of form-filling which prevents companies offering the best value to their customers."
  That note sums up much of what has been said here this morning and what has been said to hon. Members on both sides of the House when we visit small firms, retail businesses, hotels, guest houses and the like in our constituencies.
  Business wants to make a profit. That was the clear message that came across to me at the last small business breakfast that I held in my constituency just before the general election was called. Business men want to reinvest in modern processes, to grow their businesses and to distribute to shareholders. They want to hedge against rainy days, plough money into pension funds and create employment. They want to create sound and lasting enterprises that they can pass on to their children, their grandchildren or future owners in perpetuity. They do not want to be treated as unpaid tax collectors and social services, hedged around by so much red tape and bureaucracy that they cannot get on with their job.
  The difficulties being experienced by the residential and nursing home sector clearly highlights this. One of the National Care Homes Association's particular concerns relates to the regulations shortly to be introduced under the Care Homes Regulations 2001. Under those regulations, care and residential homes will have to notify a new commission of every death that takes place in a home and every serious illness. Let us think about that.
  So far as I am aware, every death in the country is recorded by the registrar, so a record already exists. If a person dies under remotely suspicious or contentious

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  circumstances, there is a coroner's inquest. A death must be registered by a general practitioner. The medical history of people in residential and nursing homes is almost invariably very well known. I cannot for the life of me understand, and nor can the National Care Homes Association, why this new burden of bureaucracy is being placed upon care homes. What is the point? Why do they have to tell a commission that somebody is very ill? By the nature of their circumstances and their age, people who go into nursing homes tend to be ill, or to become ill. It seems to me that this is yet more bureaucracy run amok.
  Prior to this debate, I was astonished to discover that care homes are subject to inspection by nine different authorities: local authority inspectors, health authority inspectors, Health and Safety Executive inspectors, environmental health inspectors, pharmacy inspectors, fire inspectors, Inland Revenue inspectors, national insurance inspectors and local authority contract compliance officers. It is very small wonder that so many nursing and residential homes in my constituency and throughout Kent are going out of business—[Interruption.] I have been completely thrown as my right hon. Friend the Member for Haltemprice and Howden has entered the Chamber.
  We raised the issue with the Secretary of State for Health in February. We pointed out that nursing and residential homes were closing and that this was having a serious impact on the care of the elderly and on employment—nursing and residential homes are considerable employers—and a profound impact on the national health service generally. The Secretary of State told us that he was not surprised that some residential and nursing homes were closing because property prices were rising and people were selling up, but that the number of beds lost was more than compensated for by massive new investment in the health service.
  I should like the Secretary of State to visit the Queen Elizabeth the Queen Mother hospital in Thanet, the Kent and Canterbury hospital in Canterbury, or the William Harvey hospital in Ashford, because there is a queue in every single accident and emergency department. The queues are caused by bed blocking because the hospitals are stuffed full of people who should not be in hospital, do not need to be in hospital and do not wish to be in hospital. There is nowhere for them to go because the residential and nursing homes have closed. Those homes have closed because of the additional burdens of costs and regulations that have been placed upon them. Indeed, 60 per cent. of the costs in residential and nursing homes are wages. For an 18-bed residential home the increase in costs this year as a result of the statutory minimum wage will be £10,000. That 18-bed home will receive a £5,000 increase from fees. Where will the other £5,000 come from?
  About seven years ago, a nursing home that I was told about invested a considerable sum of inevitably borrowed money to build 10 new bedrooms. Each bedroom was about 10 sq m; they satisfied all the regulations in place at the time and complied with every brand-new, up-to-date local authority requirement. All the bedrooms had lavatories and wash basins en suite, which is what the elderly clients indicated that they would like. The users were happy, the authority was happy, the proprietors were happy. Now, under the regulations, to satisfy the demand for more square footage—although granny, frankly, is not
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  going to leap out of bed and play football in it—the loos and wash basins, which the clients use and want, have to be taken out. That is arrant nonsense.
  The net effect is that the proprietors—people who care about their business and their clients—have had enough, so they are closing. In Kent, hundreds of beds have been lost in the past 18 months and more will follow. If that is true in Kent, my guess is that it is true in every constituency that makes this sort of provision. The effect of that on the health service cannot be underestimated. The Secretary of State for Health, never mind the Minister responsible for small business, will have to come to the Dispatch Box very soon and tell us where these patients—these clients—will go. My guess is that this winter we will face a serious crisis. I look to those on the Government Front Bench for answers.
  Geraint Davies: Is the hon. Gentleman aware that the current occupancy rate of private nursing homes is 88 per cent. and that the view is that they can take up to 93 per cent., given that there is a certain amount of turnover? Is he aware that the increase in social services investment from the Government to pay for the added costs that he mentioned such as minimum wages is about 12 per cent.? Inevitably, the increased cost must be borne by local authorities which receive more money to match the needs. I accept that there are localised problems and that bed blocking exists. However, such problems can be overcome when people with decent skills are paid decent wages; otherwise, such homes employ slave labour and provide poor service to vulnerable clients.
  Mr. Gale: I have to speak as I find. I have been visiting the residential and nursing care homes in my constituency for 18 years. When I first became a Member of Parliament in 1983, it is true that there were some appalling premises. They were run badly and were known, grotesquely but probably rightly, as granny farms. Throughout the 1980s, the Conservative Government introduced sensible regulation and changes, and imposed sensible requirements. Proprietors were able to gain a reasonable return on a reasonable investment while providing a high standard of care and attention and very good qualified care assistants to look after the patients. Those people were, possibly, underpaid in comparison with those who go out at night and stack shelves at Asda. However, in fair terms, while I am quite sure that the proprietors would have liked to pay them more, they were not doing too badly.
  The hon. Gentleman must recognise what many of us have recognised when we have visited or been in constituencies in which massive job losses are threatened. I recall fighting a by-election in Birmingham, Northfield, when the then Government were accused of winding down what was known in those days as Austin—the Longbridge plant—and of reducing the number of jobs from 14,000 to 9,000. However, the choice was not between 14,000 and 9,000 but between 9,000 and none.
  My constituents who are and have been employed in nursing and residential care homes value and enjoy their jobs. They do not want to be priced out of business, thank you very much. As for the Government's investment, again, I have to speak as I find. In Kent, over the past winter, we experienced bed blocking. Too late in the day, the Secretary of State for Health, out of panic, threw

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  £700,000 at Kent county council so that it could buy some beds. First, the space did not exist because so many nursing home beds had gone. Secondly, the going rate for some of the care provided should be £500, but is currently £340 a week. In a panic, the authority said, "We have been given a bit more money so we had better pay a bit more." However, that is short-term money, not long-term money, unless the hon. Member for Croydon, Central (Geraint Davies) is going to take the Chancellor's position and say that he will make that year-on-year change in funding. That has not happened, and the money is not there.
  Geraint Davies: Will the hon. Gentleman give way?
  Mr. Gale: The hon. Gentleman made a very long speech and he also made a fairly long intervention.
  The money is not there. The Chancellor is not giving the money to Kent county council or to other similar authorities. It is not good enough for the Government to pile burden upon burden on local authorities without providing the resources—the means to justify the will.
  I wish to move on because I know that there are hon. Members who wish to make their maiden speeches, and I want to hear them. However, this is an opportunity for us to make some important points.
  The concerns of the sub-postmasters are well known. Sub-post offices are going out of business at far too fast and undesirable a rate. Those of us who represent constituencies that embrace both towns and villages are acutely aware—this is not a partisan point—that rural villages depend heavily on key services, including the village school, but particularly on the local post office. It is the place where the villagers gather on certain days of the week, if only to collect their benefits, pensions and whatever. It caused a great deal of alarm when the Government said that they would take much of that work away.
  The Secretary of State has given an assurance that anyone in receipt of pensions or benefit can have a Post Office card account and anyone can have a Pat 14 Account. Will everyone who wishes to have a Post Office card be allowed to have one, or will the dead hand of the Treasury come along and say, "Hang on a minute, this is costing us far too much. Pensioners are choosing to have their benefits paid this way rather than directly into bank accounts, which is what we would really like them to do, although we cannot say so because the post offices would scream blue murder." Will there be a ceiling on the issue of cards, or will everyone who wants one be able to have one? It is a straightforward question. If the Minister does not know the answer, I invite him to write to me. If the number of cards is limited, the income stream will be useless to the network, and still more post offices will shut.
  I represent a constituency that is largely urban in its population, but largely rural in its landscape. All of us who represent such constituencies have to recognise the crisis in farming. Farm incomes have fallen dramatically. I was not joking when I said that many farms used to be big businesses and are now small ones. Many small farms are seriously struggling.
  We have to look—I say '"we" because again, this is not a party political point, although there will be differences of opinion about how the problem should be addressed—
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  at the difference between farmgate prices and supermarket prices. The gap is widening. A year ago, the gap between the price of a dozen eggs at the farm gate and in the supermarket was £1; now it is £1.25. It seems to so many people who used to believe that they were providing a service to the country—putting the breakfast on our table, if you like—that the balance is totally out of kilter. They work day and night, sometimes literally 365 days a year, to deliver a high-quality product for which they do not receive a fair price.
  Given all the other vicissitudes, including the obvious knock-on effects of foot and mouth on rural tourism and on the incomes of farms that may have diversified into a couple of cottages for let, if we do not do something about farm incomes now, never mind in six months, those businesses will have gone for good. It is a cri de coeur, but I urge the House to take on board the plight not only of the obvious victims of foot and mouth—although, Lord knows, the farmers who have lost their flocks and herds are important enough—but of others who, at the periphery of agriculture are at this very moment, as we sit here, losing their livelihoods.
  I conclude with this thought. Business is blessed with courage, innovation, intellect and willingness to work hard to achieve. Left to its own devices with light-touch regulation, British business can beat the world. It is the job of politicians to create the framework within which that can happen. We are far too good at change for the sake of change, meddling and trying to mend things that are not broken. We do the business of this country no service when we do that.
  11.59 am
  Mr. Khalid Mahmood: Thank you, Madam Deputy Speaker, for calling me to make my maiden speech. I congratulate my hon. Friends the Members for West Bromwich, East (Mr. Watson) and for Dagenham (Jon Cruddas) and the hon. Member for Perth (Annabelle Ewing), who is just leaving the Chamber, on their excellent maiden speeches.
  I want to say a few words about my predecessor, Jeff Rooker. Before his retirement from this House, Jeff served as the Member for Perry Barr for 27 years. While I was campaigning, it became obvious how popular he was; he still has the great respect of many thousands of his former constituents. As the House knows, Jeff served the previous Labour Government as a senior Minister and, as a Member of another place, continues to serve the present Government. He will be a hard act to follow, and I wish him well in the other place.
  My constituency is very much part of the fabric of the city of Birmingham. It is a large urban constituency which runs from a few hundred yards from the Hawthorns, the home of West Bromwich Albion, right down to Villa Park, the home of Aston Villa. It is also the home of the Perry Barr and Alexandra stadiums—the first for canine runners chasing hares, and the second for human runners chasing medals, where Birchfield Harriers produce many successes.
  In many respects my constituency has prospered, thanks to Government initiatives, including the new deal. Because of the prudent running of the economy, unemployment has fallen considerably. However, there remain pockets of stubborn deprivation that need to be targeted with special initiatives. I welcome the new deal

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  for communities in Handsworth and the single regeneration projects in both the Handsworth and the Sandwell wards.
  There is another example of a place where special help involving a multi-agency approach could succeed by piloting special initiatives: the Perry Villa estate in my constituency. About 300 families live on the estate. Unemployment is higher than average. There is a high perception of crime, a lack of skills and a poor environment. We have set up a residents association, but we now need help to improve housing, set up play areas for children, give people opportunities to learn new skills, and reduce the fear of crime. That can be achieved only by a multi-agency approach, with the health authority, local businesses, the city council, further education institutions and the police—but above all, the community—all having their say. We must break down artificial agency barriers and work in a more integrated way.
  Another example is the approach made to me by the Rookery road traders association. The traders very much want to play a part, working with local agencies, in improving that urban shopping area. However, like Perry Villa, they need help. The will of the people is there, but we need help from the bottom up for these initiatives to work. Let us give more and more encouragement to local people to improve their lives and environment with the help of joined-up local and national government.
  There are many pensioners living in Perry Barr. Labour's first term did much for pensioners, with the minimum income guarantee, winter fuel allowances, the reduction of VAT on home energy and free television licences for the over-75s.
  My constituency and Birmingham as a whole contain a huge number of small businesses, ranging from local newsagents run by families to small and medium-sized manufacturing companies. Although the city is synonymous with large industries—in particular, car manufacturing—Birmingham has, for more than a century, been a cradle of small businesses. Obviously, there are far fewer metal-bashing based companies now, but my constituency can boast of many new 21st-century businesses. It is still true today to say, "If it is not made in Birmingham, it is not made anywhere."
  Small businesses in Birmingham are benefiting from new and more relevant support arrangements. The Small Business Service, working with the city council's economic development department, is leading in the provision of support to new and existing businesses. Small businesses need clear, usable support. They need access to help in developing financial and payroll systems, clarity in tax matters and in health and safety and environmental legislation, and simple and usable advice on grants and other start-up support.
  A fresh spirit of enterprise exists in my constituency, and established businesses are being supported in better ways. In Perry Barr we have a business park, which extends over nearly a square mile, where growing companies are locating and state-of-the-art buildings provide the kind of accommodation that modern companies need.
  Birmingham has the largest employment zone in the United Kingdom, and better links and pathways are being provided to get people into jobs. We must support our
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  traditional manufacturers in engineering and the sectors that actually make things. Because of the current challenging market conditions and the need to improve productivity to global levels, we must ensure that the race to modernise and diversify our economy does not leave those firms behind. We must ensure that skills are further developed among our workers, in partnership with management, to meet the challenge of competition.
  I applaud the work of our local universities in reaching out to businesses in new and relevant ways. The university of Central England at Perry Barr, together with those at Aston and Birmingham, has been showing the way, in partnership with the city council and the regional development agency, in providing first-class support to adopt new technologies. However, some sectors seem slow to adapt. The lesson is clear: we must help our businesses to take on board new technologies and economic change in a faster, better and smarter way. That involves building on the approaches that work best for our local businesses.
  We have many examples of clusters of businesses, such as jewellery and new media. The design space 2000 project at our local university—UCE—is an example to the country of intelligent and joined-up working, with business, education and local government all working together in new fruitful ways.
  I welcome the establishment of the Phoenix fund for Birmingham, which particularly focuses on women and support for ethnic minority groups. I hope that the Government's new initiative on the neighbourhood renewal fund, announced by the Minister for Housing and Planning recently, will be targeted, in part, towards helping small businesses to improve the quality of their outlets and workplaces.
  Although this debate on small businesses is taking place at the end of the parliamentary week, I trust that that does not undermine its importance. Small businesses are vital to the economy of my city and to the country at large.
  Today is Friday the 13th, so some may think that I am chancing my luck by speaking in the House on this day and date, but I cannot be that unlucky, as I was born 40 years ago. Some may say that life begins at 40; certainly my parliamentary life does. To represent Perry Barr in the House is a great honour, especially because from the age of nine I—like many of my good friends, such as Lord Hattersley and the former city leader, Sir Richard Knowles—have been an adopted Brummie. I hope that I can emulate them and achieve a fraction of what they achieved in their many years of service to the city.
  There is another adopted Brummie to whom I owe so much—my late father, who came to the city in the late 1940s. My elation at being elected to Parliament for a seat in the city that so readily adopted me was tempered with sadness, because he did not live to see that day. I hope that I can honour him by serving my constituents with humility and determination in the years to come.
  12.8 am
  John Barrett: Thank you, Madam Deputy Speaker, for this opportunity to make my maiden speech and to participate in this debate. As someone who ran a small business for many years, I appreciate being called to speak at this time. I also thank the new small

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  business Minister for his invitation to contact him to discuss the ways in which we can improve services to small businesses.
  I congratulate the hon. Member for Birmingham, Perry Barr (Mr. Mahmood) on interesting maiden speech, and I look forward to hearing more contributions from him in the years ahead. I also congratulate all the hon. Members who have made maiden speeches today. As the hon. Members for Perth (Annabelle Ewing) and for West Bromwich, East (Mr. Watson) said, being Friday the 13th, it is good to have survived the experience.
  I am perhaps in a unique position, as my two immediate predecessors in Edinburgh, West still serve as elected Members, as they both won seats in the Scottish Parliament.
  For Donald Gorrie, who stood down from Westminster this year, the Parliament represented the fulfilment of a lifetime's campaigning. Donald was elected to this place on his fifth attempt, and in his first speech, he argued for a Scottish Parliament in the debate on the Referendums (Scotland and Wales) Bill. Although he has often been described as a maverick, and still is, Donald consistently fought for a Parliament in Scotland, with Members elected by a fair voting system. He now sits in that Parliament, and is involved in the partnership Government. At times, he causes more problems for both partners than many members of the Opposition.
  Donald's predecessor in Edinburgh, West was Lord James Douglas-Hamilton, who is also a Member of the Scottish Parliament—the same Parliament that he spent much of his time in this House opposing. As a list Member, he was elected under the proportional voting system, which he also opposed.
  It is a great privilege to be in this place, and I look forward to working on behalf of all the residents of Edinburgh, West. It is heartening that relatively affluent constituents were prepared to elect a candidate who was advocating an increase in their tax rates. Proposals for fair, progressive increases in taxation, linked to identifiable increases in key public services, can strike a chord with the very people being asked to meet the cost.
  Although the statistics detailing Edinburgh's relative affluence do not lie, they do not tell the whole story. The constituency stretches from Queensferry at the Forth bridges to Muirhouse and West Pilton, and within it there is great diversity, with areas of poverty as well as areas of affluence. In those poorer areas, there is not only financial poverty but a poverty of expectation. At the general election, those areas had a very low turnout of under 50 per cent.
  It was not satisfaction with Labour which kept the majority of those electors at home on 7 June but disillusionment with politicians of all parties and detachment from the political process. We should not try to dismiss that with glib phrases such as "voter apathy". We need to address the underlying causes of that fracture between the political classes and ordinary people. We must put an end to the present voting system, which disfranchises many, whether or not they bother to vote. The introduction of a fair, proportional system is part of the answer.
  There is a need for politicians of all persuasions to do more to engage with the electorate, to understand their needs and aspirations, and, more importantly, to recognise that aspirations have been damped down or even, in some
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  places, extinguished. We must offer people a way out of their impoverishment, a stake in society and a share of the wealth of their nation. In recent years, there has been much talk of social inclusion, but in the past four years the gap between rich and poor has grown even greater, and too little has been done to reverse the damage done to society in the Thatcher years.
  As the MP for Edinburgh, West, I shall endeavour to serve all my constituents, including the rich and the poor, those who voted for me, those who voted for candidates from other parties and those who opted out of the political system. Many of the matters of concern to my constituents have now been devolved to the Scottish Parliament, and I look forward to working with Margaret Smith, the Edinburgh, West Liberal Democrat MSP. We will be an effective team working on behalf of our constituents.
  It is a great honour to represent such a diverse constituency, with its historic villages such as Corstorphine and Davidson's Mains. Like the hon. Member for West Bromwich, East, I must pay tribute to one of my local hostelries, the Corstorphine Inn, which sustained my campaign team at the general election. From Cramond to Barnton, the constituency includes castles, large estates and housing estates. In Muirhouse and West Pilton there is a great community spirit, but some pockets are the most deprived areas in the constituency.
  West Edinburgh has a booming economy and the lowest unemployment rate in the city, but there are pockets of high unemployment, and we must match those who want jobs to those who want skilled workers. Education and training are key issues. We must invest in education, rather than throwing the education system—and the health service—out to the private market.
  Although a city seat, Edinburgh, West has a rural dimension in the villages of Ratho, Ratho Station and Dalmeny, where many problems were caused by the recent foot and mouth outbreak. Not only were farmers affected, but the royal highland show was cancelled and Edinburgh zoo was temporarily closed, with the loss to the local economy of many millions of pounds. As the zoo is in my constituency, I probably represent more penguins than any other Member.
  I am proud to serve on the City of Edinburgh council.
  Edinburgh is a beautiful city, the home of the best Hogmanay celebration in the world. It has the international festival, the fringe festival, the book festival, the jazz and blues festival, the science festival and the longest continually running film festival in the world. I would like to welcome many Members there during the recess.
  Edinburgh is also home to the Scottish Parliament where my predecessor now sits. In that Parliament, Liberal Democrats form part of the Government and have played a role in delivering a fairer voting system, scrapping tuition fees and delivering an excellent teachers pay deal and free long-term care for the elderly, with the details being announced just last week. I look forward to similar policies being introduced here.
  In my constituency, transport is always a key issue. It has a particular relationship with small businesses, because transport policies to improve the ability of commuters to move from outwith the city into the city centre have often meant ruin for small shops and businesses along those routes. Planning decisions have

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  allowed the construction of out-of-town shopping centres and had devastating effects on local shopping centres.
  What can be done to help? The Minister mentioned several good ideas including the reduction of red tape and the need to have access to finance and skilled labour. However, I ask him to consider some other issues. The first is the threat of the black economy with tax evasion and, for example, the unlicensed disposal of waste causing ever-increasing problems. When sensible regulation is in place for bona fide traders, there must be prosecutions of fly-by-night traders.
  We must also stimulate enterprise, and one sector that I particularly wish to mention is arts and entertainment. This country has tremendous potential. In the United States, the entertainment industry now exports more than General Motors or Ford. We must stimulate our creative talent in computer technology, design, film, fashion and music. In the creative industries, we can lead the world.
  However, we must not develop small business support as a separate policy. We should integrate our small business support with education so that the skills developed—whether academic or professional—will produce thriving industry; with transport so that the work force have access to the places where employers need them; with health provision so that we increase the amount of health care and advice about safe working to avoid the time lost through bad health such as back problems, which cost the country, employees and businesses millions; and with planning and housing policy so that we do not drive the cost of affordable housing away from affordable work space.
  Many small businesses supply the goods and quality of services that can be delivered only by small businesses with specialist expertise in the field. They have the tools; we should let them get on with the job.
  As a new Member, my first impression of this place was that it was steeped in history and had many fine traditions. I find the pink ribbon for hanging my sword on the coat hanger in the Members' Cloakroom quite invaluable.
  However, since the general election much has been made of the low turnout. It is up to hon. Members to set an example to show why the public should participate in the democratic process, as we are the product of their decision to vote on polling day. It is no wonder that members of the general public are disillusioned by what they see if elected Members do not set an example for others to follow. We must rekindle the interest of the public in the political process—it is our responsibility. If we do not, we do not deserve their votes.
  While we are here and grappling with the problems of the western world, I hope that we never forget those in the third world who are desperate to fill their empty bellies while burdened with debt to the richest nations on the planet. At the weekend, I was on the telephone to my wife, who is in Botswana, where she said there were walking skeletons on the street. Yesterday, a 2,000-page United Nations report on the impact of climate change stated that industrial pollution is the main cause and that the consequences for human society are likely to be catastrophic. Global warming is real—that is official. Crop failures, water shortages and disease will affect others much more than they affect us. The poor are always hardest hit.
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  As well as looking after our constituents, we must never forget those elsewhere in the world with problems much greater than our own. I hope that my time in this Parliament will see a change to a time when we no longer sit back and watch what happens elsewhere as if we were immune from the consequences to a time when we realise that we all share the same planet and that we had better start looking after it.
  12.19 pm
  Tony Cunningham: Thank you, Madam Deputy Speaker, for giving me the opportunity to make my first speech in the Chamber. It is indeed a privilege to be making it at a time when so many excellent maiden speeches have been made. Like other new Members, I have been inundated with requests to join various groups in the House. May I suggest that we form a new one, the Friday the 13th club, and we could celebrate the date in the future?
  I was advised to read some of my predecessors' maiden speeches to give me an idea of what to say. I was not aware that the hon. Member for South-West Hertfordshire (Mr. Page), who is one of my predecessors, would be sitting on the Conservative Bench opposite me. The speeches reminded me why the by-election took place in 1976. The sitting MP, Fred Peart, formerly a Leader of the House, was called into Downing street by the Prime Minister, Jim Callaghan, who said, "Fred, I'm going to have to move you upstairs to another place because I require your seat in the Cabinet for a younger Member." Fred said, "But Jim, you're older than I am", to which Jim said, "Yes, but I'm the Prime Minister." I have learned that lesson.
  I am only the fourth Labour MP for Workington since 1918. Looking at the speeches by Tommy Cape, which he made immediately after the great war, and Fred Peart, which he made right after the second world war, it is clear that they came from a different age. However, what shines through and links them with my immediate predecessor, Dale Campbell-Savours, is the desire for social justice, for which I shall continue to strive.
  Dale Campbell-Savours has been an inspiration to me and many others. He is greatly admired and respected, not just in the House, but by thousands of his constituents, because he is a fighter and a campaigner. No cause was too large or too small. If people needed help, he was there for them. He will be missed in the House and I wish him well in his new role in the other place. I also pay tribute to his secretary, Joan Gyles, who was with him for more than 20 years.
  My best story of Dale was one that he told me about being here in his early days as an MP when the House often sat into the small hours of the morning. If he wanted an issue reported on Radio Cumbria the following morning and the station was closed because it was 11 or 12 o'clock at night, he used to ring up and put questions to the answering machine, which he would answer himself. I said, "Dale, don't you think that that's cheating a little bit?", to which he replied, "No. I used to ask myself difficult questions"—and he did.
  I am proud to represent the Workington constituency. It is where I was born, grew up and have spent most of my life. It is a beautiful area, with its lakes and mountains

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  and stunning coastal scenery. The town of Workington has a strong industrial heritage and is known for its famous visitors. The Scots among us might be interested to know that Mary Queen of Scots spent her last night of freedom in Workington hall. Maryport has a Roman history and links with Hadrian's wall. I remind hon. Members that the wall did not stop at Bowness. A turf wall was built down the west Cumbrian coast, perhaps as an early attempt to deal with the West Lothian question.
  We have the beautiful seaside resort of Silloth, with its famous golf course, and Aspatria, which is an old mining and old market town. Cockermouth is the birthplace of William Wordsworth and Keswick is a famous holiday destination for generations of people. When all that is combined with friendly, hard-working people, it is easy to understand why it is such an honour to represent the constituency.
  No matter how beautiful the constituency is, however, if people do not have jobs and do not share in its prosperity, the beauty is not so obvious. Small businesses are important. Although unemployment in the constituency is lower than it has been for 30 years and more jobs are being created than lost, especially by small and medium-sized enterprises, I have two pleas. West Cumbria used to be dominated by coal mining, the iron and steel industries and shipbuilding. Rails marked "Made in Workington" can be seen all over the world, in Australia, India, Brazil, Mexico and the United States. What we have left is a steelworks that rolls railway lines. Unfortunately, it has come under threat in recent times.
  Following the terrible Hatfield disaster, the work force at the steelworks toiled round the clock to produce thousands of tonnes of rails to repair and upgrade the rail network. Now that that crisis is over, Railtrack is placing orders for rails in Italy, Austria, Sweden and other European countries. I say this to Railtrack: "If you are taking British taxpayers' money, then for heaven's sake spend it in Britain." Workington is the only plant in the country that makes rails. It is of national strategic importance. It is vital that the plant stays open—to the people who work there and their families, and to the nation.
  Those who remember the 1966 World cup final will surely remember the remarks of the commentator, Kenneth Wolstenholme, at the end of extra time: "They think it's all over—it is now." I am sorry, but when it comes to foot and mouth in my constituency and its impact on small businesses, it is far from over. The farming communities have undoubtedly suffered and are still suffering. I call for a lull inquiry in order that we may learn lessons for the future.
  One group of small businesses has been devastated by the outbreak: tourism and related businesses. Anyone with a hotel or guest house, a caravan park or a holiday cottage, anyone who is a joiner or a plumber who normally works in the tourism industry, and anyone who runs a leisure or outward bound business in the Newlands or Borrowdale valleys can be 80 or 90 per cent. down on normal trade. Small businesses are struggling, and unless there is continued support, it will be a very long winter for many of my constituents.
  I should like to recount just one story. A married woman in my constituency who has two small children sold her house and invested in a small guest house. Business is very difficult. She said to me, "Remember,
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  this is not just my business; this is my home as well and that is under threat." I have a series of suggestions that I shall pass to the Minister, but I want to make it perfectly clear that many in my constituency desperately need help. Although I welcome the money that the Government have already given, we need more, and for some time to come. What is really needed, however, is the return of visitors to one of the most beautiful parts of the world. I appeal to Members and people outside the House to come to my constituency, where they will be given a tremendously warm welcome and have a fantastic holiday.
  I spoke at the outset about social justice. Recently, two great stalwarts of my local Labour party, George Robinson and Mary Graham, died. I pay tribute to them and the hundreds of others in my constituency who have spent their lives campaigning for social justice. I assure the people of Workington that I will continue that fight.
  12.28 pm
  Mr. Adrian Flook: I should like to thank and praise the hon. Members for West Bromwich, East (Mr. Watson), for Dagenham (Jon Cruddas), for Perth (Annabelle Ewing), for Birmingham, Perry Barr (Mr. Mahmood), for Edinburgh, West (John Barrett) and for Workington (Tony Cunningham), who have made their maiden speeches this morning. The hon. Member for Workington made a witty and passionate speech, and his constituency well deserves that passion. I, too, will be speaking about foot and mouth disease and its impact on my constituency, particularly on small businesses.
  As the son of a small business man and the older brother of one who has been hounded out of his business by red tape and regulation, such that he is now happy to work for a firm alongside 25,000 other employees, it would be fair to say that I know a little about small businesses. We have some big businesses in my constituency, but they are more the likes of Sainsbury, Asda and Safeway. The number of people employed by the county council and Taunton Deane borough council takes them beyond the size of small and medium enterprises.
  We have some Government agencies, such as the Charity Commissioners and the United Kingdom Hydrographic Office, as well as some private sector concerns that employ fewer than thousands: those include Avimo in Taunton and Relyon and Swallowfield in Wellington. After that, the size of employer rapidly decreases, which is hardly surprising given that Taunton is a county town, albeit one that has prospered in the past decade, as has Wellington.
  The local unemployment rate is only 2 per cent., but I sense that we are at the top of the economic cycle. Ridiculous house prices have been recorded in Somerset. I heard a worrying story about that the other day. A local auctioneer told me that a house with some land attached just outside my constituency had been valued at £325,000, but that to get it away at auction, it had been put on at £275,000. In open auction, that property went for £605,000. To a former stockbroker, whose job was to spot market trends, that really rings the bell that the economy has peaked.
  Hon. Members will have been sent Barclays bank's quarterly small business survey, which provides a depressing overview of the sector. Business starts in England and Wales are down 9 per cent. Business starts

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  in the catering and hotels sector—crucial to my constituency and to any rural part of Britain—have declined 28 per cent., with leisure industry starts down a depressing 49 per cent. In his opening remarks, the Minister said that businesses were set up and run by enterprising individuals, but added that it is the Government who shape the environment. I do not know whether that environment is being shaped by a pasta machine or a mangle, but I do know that Barclays and my constituents all see the same thing: that today's issues are access to finance, bank charges and the well known red tape.
  I know a business woman—a young lady in whom I wish to declare an interest—who runs her own business, in which I have no interest to declare. She considered doubling the number of workers in her firm—increasing that number by one, so that there would be two—but when she looked at the large book of complicated regulations issued by some Department or other, she shuddered at the thought of having to read through one and a half inches of closely typed pages and concluded that it was not worth the effort to hire people when she could subcontract instead.
  Let us compare and contrast that with the Government's attitude to other contractors, namely those affected by IR35. The Government have forced people to work for bigger businesses than themselves with the aim of ensnaring more people in PAYE and other tax arrangements, but on the other side of the red tape and regulations, the Government's policy of pushing people out of subcontracting is forcing smaller companies to subcontract. That is a shame. It is good when people can employ others, but not so good when small companies are forced to use subcontractors as a first stage.
  My hon. Friend the Member for South-West Hertfordshire (Mr. Page) described the impact of foot and mouth on his constituency and on small traders. The same is true in my constituency, where several of this year's agricultural shows have been cancelled. Barclays recognises the impact of foot and mouth, as does everyone in my constituency—especially the impact on small businesses.
  Small businesses throughout my constituency have been hit by foot and mouth. The lessons were immediately apparent to those businesses at the heart of the outbreak; sadly, however, no one outside that core appears to have taken any real notice. The Government have offered extra money in the form of expensive loans, but that is not what is wanted. What people on Exmoor—of which the Taunton and Bridgwater constituencies form two thirds—want is for the disease to be eradicated swiftly. They also need immediate help to mitigate the problems that foot and mouth has caused. In short, Exmoor has not had foot and mouth; it has not been infected, but it has been affected.
  Earlier this year, the Government produced a small firms package, which the Federation of Small Businesses was quick to praise in part. However, it was also disappointed that the Government had, once again, widened the fiscal gap between incorporated small businesses and unincorporated sole trade concerns. The policy unit chairman of the federation said:
  "There are over 3 million self-employed people who will be unable to take advantage of the cut in the small company tax rate."
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  He went on to say;
  "Such measures, whilst welcome for incorporated businesses, discriminate against those who are self-employed and turn them into second-class citizens in the world of commerce."
  More importantly, if someone is making no money, they pay no tax anyway. That is particularly true of the problem on Exmoor and indicative perhaps of the difficulties throughout the rural parts of my Taunton constituency. Sadly, it is beginning to affect the town itself; there is a knock-on effect, although it has not manifested itself properly in the town. We are now in July, five months after the start of the biggest crisis to hit Somerset in decades, but not one penny of aid has yet been handed over to any small business.
  The South West of England regional development agency and Business Link have not given away any of the money that they promised. Just two days ago, they said that the money is still two weeks away. They said that they have made checks and counter-checks and are now making checks to counter the counter-checks on the original applications for help. Sadly, small businesses are the real losers. Fortunately—I hope that this is true also in Cumbria—they have a champion in a new group called Living Exmoor, chaired by the charming and fearless Judy Carless who, throughout the recent election campaign, managed to doorstep every single national party leader. She asked each of them in turn what they would do for Exmoor.
  If only such forthrightness were obvious elsewhere. From a standing start, Living Exmoor now has several hundred members: from the Tantivy and Wiggys in Dulverton to the Royal Oak at Withypool and the White Horse at Exford. That is real self-help. Government agencies, such as South West Tourism, cost the taxpayer a fortune. The Under-Secretary said that the Government and their agencies should think small first. A member of Living Exmoor asked me why, if the agencies were well funded by the taxpayer, they were missing many obvious tricks. Last week, tourists could not get a coach in Spain. Why did South West Tourism not say that there were coach operators and hotel rooms going begging on Exmoor, as I am sure they were in Cumbria, so that those tourists could have a holiday in Britain? Why were public relations operations not promoting Britain to those poor tourists stuck at Gatwick? It is important that Government agencies do more to help small businesses.
  As the hon. Member for Workington said, tourism is important; my part of Britain is as beautiful as his, and farming is just as important there. It is worth pointing out again and again that farming is a small business and that many people are engaged in it; many small businesses are run by farmers. Farming may account for only 1.5 per cent. of our gross domestic product but, nationally, farmers look after 80 per cent. of our landscape and even more in Somerset. Farming and tourism go hand in hand on Exmoor and throughout most of Taunton Deane.
  The real problem is not the impact that foot and mouth has already had on businesses in my constituency, but the impact that it will have. The second quarter figures for businesses failing and going bust in the south-west are worrying. The fact that bank managers have withdrawn funding for small businesses—mostly tourism businesses—in the second quarter of the year is extremely scary. That quarter is the beginning of the tourism season, when those businesses expect an enhanced and increased

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  cash flow For bank managers to pull the plug means that they can see no prospect for recovery in the summer and the autumn.
  As small businesses go into the autumn, they will have no fat to survive the winter. That means that banks will pull the plug more quickly than they would have done in the past. They will do that throughout the summer, autumn and winter. The problem will become worse both in rural areas and in the town.
  To be added to that is the possible late start to the traditional hunting season. Hunting may not please all Members, but eight hunts add considerably to the tourism business going into and on to Exmoor. It is important to remember what the hunts provide for the area, both for small businesses and as suppliers of tourists, whom I would call sporting pursuits tourists.
  Where are the Government agencies and local councils in this context? The Minister referred to Business Link as having a ruthless customer focus. Business Link may be trying hard down in Somerset, but why is it thanking Living Exmoor, the voluntary self-help group, for doing its lobbying? The self-help volunteers are helping the so-called professional guys, who are sitting around in suits navel gazing, as it might seem to the people on Exmoor. The House must remember that not one penny in aid has yet been handed over.
  Living Exmoor is disappointed with the lack of help from agencies, and also from Somerset county council. I hope that the hon. Member for Somerton and Frome (Mr. Heath), who was a former leader of that council, will be able to help me in getting across to the council that small business men on Exmoor cannot understand, when political control has not changed, sadly, following the county council elections, and when the officers have not changed. the excuse that it was the county council elections that created a hiatus. That is given as one of the reasons why aid has not yet been given to businesses on Exmoor.
  Before the election and since the election, my party has been asking for help for small businesses affected by foot and mouth. We have asked for the speeding up of VAT refunds to help cash flow. Much more money could easily have been given in the form of interest-free loans for the affected areas. There could be a more flexible reassessment of income tax liabilities. As the hon. Member for Workington said, "They think it's all over, but it isn't yet." He is right. There should be a full inquiry, and I would add that it should be a full public inquiry.
  12.42 pm
  Mr. Mark Field: To follow on from the remarks of my hon. Friend the Member for Taunton (Mr. Rook), this is very much a debate full of maiden speeches. It is perhaps relevant that yesterday I was playing cricket and making my debut for the Lords and Commons team. We had to rush back for a couple of votes. My sartorial elegance, or otherwise, consisted of cricket whites and a blazer. Knowing that you are the Chairman of the all-party cricket group, Mr. Deputy Speaker, I suspect that you may have approved rather more than the Whips, who rightly ticked me off for not wearing the normal attire.
  It has been an interesting debate and we have heard some thoughtful maiden speeches. I speak as a member of the new intake, who is making only his second speech
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  in the House. The hon. Members for West Bromwich, East (Mr. Watson) and for Workington (Tony Cunningham) both made impassioned pleas about their constituencies and the importance of developing business in them. Likewise the two Scottish Members who made their maiden speeches, the hon. Members for Perth (Annabelle Ewing) and for Edinburgh, West (John Barrett), said some interesting things about Scottish issues. Unfortunately, the hon. Member for Birmingham, Perry Barr (Mr. Mahmood) is no longer in his place. He said a few words about his late father. Five weeks ago, when I was elected as a Member, my first thoughts too were with my late father, who passed away about 10 years ago. At such moments, these family links mean so much to many of us in this place.
  Like many of the new boys and girls who have come to the House, it is a frightening realisation that we know so little about virtually everything that goes on in the House—or perhaps I speak only for myself. This week we have discussed such issues as Northern Ireland election fraud and statementing in schools for young children. I confess that before the debates took place—I suspect that it is a confession that will terrify many of my constituents—I reckoned that on either subject I could write on the back of one rather small envelope all that I knew about the issues. However, I can profess to be a comparative expert on small business, because I have spent the past seven or eight years running a business full-time and my business background goes back to my university days when I set up a publishing concern. My firm, which I run with a fellow director, now has 12 employees and turns over more than £2 million a year. I shall return to that subject later in my speech.
  My constituency of Cities of London and Westminster is best known for its larger businesses. All the leading international investment banks are based in the City of London and a significant number of large companies that play on the global stage are based in Westminster. However, it would be wrong to imagine that the constituency has only large businesses—it has a thriving small business sector.
  The congestion charge is at the forefront of people's minds in London this week, because the Mayor of London has made it clear that he will impose such a charge on people coming into central London. Understandably, the focus has been on the effect that the charge will have on motorists and other commuters and it was initially promised that we would see a distinct improvement in public transport before it was introduced. However, the real sufferers from the charge will be those small businesses—often sole traders or small family businesses—based in central London, which will find that the 15 to 20 per cent. projected reduction in the number of commuters will make a big dent in their turnover and profits. That is one reason why we should think again about what will be a controversial subject in the years ahead.
  We have had an interesting debate this morning. In the past, small business matters tended to be seen as the preserve of Conservative Members, but it is clear that the sector is increasingly important to the Government. I agreed with much of what the Minister said, but red tape is of concern to small business. The political battleground lies in what we would call red tape and the Government and various unions would describe as employee rights. Our aim is to ensure that small business does not suffer from the debate on the opposite sides of the same coin.

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  Many of the Government's actions are to be welcomed. For example, the Chancellor has made some great changes in the capital gains tax regime. I support many of those changes, but he has made the regime more complicated than it needs to be. We must also recognise the importance of a low tax economy. We live in a global economy, whether we like it or not, and that applies to small business as much as to the largest companies. We therefore need low income tax and a low capital gains tax regime to ensure that entrepreneurs are not persuaded to leave these shores in a brain drain.
  As I have mentioned, I run my own business, which I set up some eight years ago. Others who have set up their own businesses will know that there is nothing more exciting. My business partner and I started in a small room with a couple of telephones and a fax machine. We had to lick the stamps for the first letters to our prospective clients, and it was a more exciting experience even than getting into Parliament. We have tried to develop the business and we now have a dozen staff, but I am concerned that red tape and bureaucracy disproportionately affect small business. Large companies have payroll departments, human resources departments and office managers, and they can cope with the demands. Even in my own business, which is now 12 people strong, that administrative burden falls heavily on me and my fellow director, as we cannot pass it on elsewhere. I beseech the Government to consider the matter carefully before gold-plating any directives from Europe and to ensure that in their own legislation new red tape is kept to a minimum. As has been mentioned from all parts of the House, the small business sector will be the vehicle for growth of employment opportunities in this country in the years ahead.
  We heard from the hon. Member for Dagenham (Jon Cruddas). What is happening in his constituency is a tragedy, with the largest employer for the past half century making many people redundant. In future, international companies will not offer great numbers of jobs. There is a risk that all those companies will downsize, and with the push to keep costs, particularly labour costs, at a minimum, more and more skilled and semi-skilled jobs will go to third-world countries.
  We must ensure that we do not strangle small business in Britain. My principal worry is that we will discourage small businesses that employ 10 or 12 people from becoming businesses employing 25 people, simply because we will not have a light regulatory regime in place. I look forward to working closely with my hon. Friends and, I hope, with Ministers to begin to build a regime that ensures that there are no such constraints on the growth of smaller firms.
  The extension of maternity and paternity leave, which applies beyond the small business sector, is seen as a family friendly right. It is easy for freelance journalists and others who work on a piecemeal basis to extol the virtues of part-time working, but that creates difficulties for small businesses. In my own business, two of our dozen employees were on maternity leave in the early part of this year. That made matters extremely difficult. Jobs had to be left open and we did not know whether to take on part-time staff. The burden should not be underestimated, especially in businesses that are trying to
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  employ young people, graduates and people in their 20s. We should consider whether smaller businesses could be exempted from some of that regulatory burden.
  It has been a pleasure to contribute to the debate on a key sector of our economy, which will be the great vehicle for employment growth in the next decade or so.
  12.53 pm
  Nigel Griffiths: With the leave of the House, I shall respond to the remarks made during the debate. First, however, I join in the welcome for the excellent maiden speeches that we heard this morning.
  My hon. Friend the Member for West Bromwich, East (Mr. Watson) showed a close knowledge of the needs of all his constituents. His remarks that were particularly appreciated were his references to the achievements of disabled constituents and to his predecessors in West Bromwich who were distinguished Members of the House—Peter Snape and Betty Boothroyd.
  My hon. Friend's detailed knowledge of "Spring Town", as he called it, will no doubt allow him to spring to prominence and high office in this place. I liked the analogy that he made between Business Link and general practitioners, stressing the need to tap into the best expertise available. I am delighted to tell him that one of my first acts as Minister was to approve the Business Angels programme, which will allow such expertise to be harnessed by our new generation of entrepreneurs.
  My hon. Friend the Member for Dagenham (Jon Cruddas) made a very forward-looking speech, which combined a close knowledge of his constituency with a commitment to social inclusion. As he knows, that cause was very close to the heart of his predecessor, Judith Church. His determination to support Ford and other companies in their reinvestment shows that he will be leading the drive to bring prosperity to all parts of his constituency.
  It was a pleasure to hear the speech of the hon. Member for Perth (Annabelle Ewing), especially her description of her beautiful constituency which I know well. Her predecessor excites the envy of the House in still being able to enjoy representing that constituency in the Scottish Parliament. I do not know what the Gaelic for doppelganger is, or whether the hon. Lady is a fan of "Dynasty". Her mother must be very proud of her and I am sure that she will relish her triumphs in this place.
  The fourth maiden speech this morning was made by my hon. Friend the Member for Birmingham, Perry Barr (Mr. Mahmood). His predecessor has a long history in this place—27 years—and I am sure that he will have a great future in the other place. My hon. Friend rightly outlined the historic role of his city in supporting small businesses, growing great businesses over a number of centuries from the beginning of the industrial revolution. He spoke also of his traders' association and business park and the key role that people play in bringing about change. I am sure that he will provide the leadership that is required to take his city forward in this century, with links with business, university, local government and other elected representatives. I am sure that his father is looking down on him with pride.
  The fifth maiden speech was from the hon. Member for Edinburgh, West (John Barrett). Again, I hope that the House will indulge me in welcoming a near parliamentary

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  neighbour who speaks for another great city. It was heartwarming to hear him talk of a city that we both love and mention his concerns for the third world. I helped found the fair trade non-governmental organisation Scottish Education and Action for Development in Edinburgh two decades ago and it is a cause dear to the heart of many right hon. and hon. Members on both sides of the House. He will forgive me for saying that the impact of alternative voting systems on the turnout in the Scottish Parliament and European elections was no great advert for such changes, but I look forward to hearing his views develop in future speeches.
  The sixth maiden speech was from my hon. Friend the Member for Workington (Tony Cunningham), who rightly paid tribute to Dale Campbell-Savours, who was an exemplary parliamentarian admired by us all. My hon. Friend gave us one of the wittiest anecdotes about his predecessor which I am sure Dale will have enjoyed listening to and reading in Hansard. He mentioned that his constituency is the country beloved by Wordsworth:
  "Bliss was it … to be alive,
  But to be young was very heaven"
  and spoke of the industrial relevance of his constituency today.
  My hon. Friend also referred to the impact of foot and mouth on his constituency. I was brought up in a rural community and my heart goes out to the farmers, farm workers and other members of that community. some of whom I went to school with and whose great hardships I know of at first hand. He took the opportunity very early in this Parliament of passing me his proposals for helping his constituents and I know from his speech and his actions that he is a powerful and passionate advocate for rural communities.
  The hon. Member for Taunton (Mr. Hook), whose own maiden speech impressed me, made a number of cogent points in his second speech. I have been looking at all the forms that businesses have to complete. If he will send me the forms that his one-person business had to study and complete to take on a second employee, I shall be interested in seeing them.
  The hon. Gentleman stressed the importance of the small business community in terms of the impact of foot and mouth disease. I know, in unrelated areas, that my attempt to traverse the Cuillin ridge earlier this year had to be postponed for a month because of foot and mouth, despite the fact that there was no disease in the area. I know about its impact on the tourism industry. He also asked why only four applications had been received from the business recovery fund in his area. I will investigate that and get back to him.
  The hon. Member for Cities of London and Westminster (Mr. Field) made a thoughtful contribution. I believe that George Bain did an excellent job on the national minimum wage, which is now accepted by Members on both sides of the House. He is looking at the very issues that the hon. Gentleman raised, and I have equal confidence that he will come up with a solution that will not overburden other areas.
  The hon. Member for Weston-super-Mare (Brian Cotter) said that some regulations are an inch thick. We all want that reduced; a number of working groups made up of people of no political party and business people are examining that issue. I gave an example in my
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  introductory remarks, of which I am rather proud, of the work that the Small Business Service did to produce a book for people starting in business on the tax that they have to pay. The book is half the size of the original draft that came from the Inland Revenue, and that 50 per cent. reduction should set a trend that should be followed.
  The hon. Gentleman also mentioned the impact of the banks. As he will know, these were referred by my right hon. Friend the Secretary of State for Trade and Industry to the Competition Commission. We are awaiting its response in October, and I am sure that the hon. Gentleman will join me in hoping that the news is good.
  The Small Business Council report was produced yesterday, and I forgive the hon. Gentleman for his selective reading of it. He failed to mention the effect of the Small Business Service in lobbying in Whitehall to make sure that the proposals in the Green Paper for a supplementary business rate were defeated. That shows just how effective David Irwin and his people are.[Interruption.] I am pleased to hear the hon. Gentleman acknowledge that from a sedentary position.
  The hon. Gentleman responded courageously to my intervention on business rates. I have one advantage over him: I live in a city that was once run by the Liberal Democrats and the Conservatives. The rates went through the roof, with business rates going up even more than domestic rates. That perhaps explains why they formed a one-term administration in local government and have not returned to power there.
  I want to pay tribute to the bravery of the hon. Member for South-West Hertfordshire (Mr. Page) in spending so much time on the topic of regulation. He said that he signed up to some regulations and not to others. He should have added that the vast number of regulations signed up to by the last Government, of which he was a Member, beggared belief. We may not have been much better than them when it comes to statutory instruments, but we cannot have the pot calling the kettle black. The last Government introduced some 3,000 statutory instruments, not three or 300, even in their last full year of government and after almost a decade after their attempts at deregulation. I was concerned by the example that he gave as a case of ineffective and burdensome bureaucracy and of regulation that he claimed was not welcomed by small businesses. That example was the statutory late payment regulations.[Interruption.] I assure the right hon. Member for Bromley and Chislehurst (Mr. Forth) that there is lots to talk about in respect of the speeches made from his Benches. I know that he was not here to hear them, so it is not so much a case of refreshing his memory as rubbing salt in his wounds.
  Before today, I thought that we had consensus on statutory entitlement to compensation for late payment. I know that the Federation of Small Businesses and even the Confederation of British Industry, which tends to represent larger businesses but has many SME members for which it speaks eloquently, see the merits of the late payment regulations. The legislation has had some considerable effect. It was the only example that we got of something that a Conservative Government would do, but if it is the first piece of legislation that the Conservatives would repeal, they will have even fewer friends in small business than they have now.

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  There is no evidence that the Labour Administration are more inclined to regulate than previous Administrations, but I want to ensure that the number of regulations is kept to an absolute minimum. It is important that there is independent scrutiny of regulations in the audit of regulatory proposals. We want a system and guidance to underpin the regulatory impact assessment process and to ensure that the process is subject to reviews and improvements.
  The hon. Member for South-West Hertfordshire criticised the establishment of the Brussels office of the Small Business Service. Its clear purpose is to give small business a voice in the Commission, especially before the Commission frames legislation. He criticised the funding arrangement for the office, which he said meant that the taxpayer would have an open-ended commitment—would sign a blank cheque—and that businesses that benefited from it would not be expected to contribute. I am afraid that we shall have to disagree on that, but we are at least two years away from business being asked to contribute to that service. The Government believe that it is vital that small businesses are represented in Europe, and that is why the Small Business Service SME liaison office is being run from Brussels.
  Other issues put to me included inspections. An example was given of a premises that was inspected nine times. I agree that that is too often, and I have had discussions on how to cut the number of visits. There is a trend, especially with the creation of unified authorities, towards closer co-operation between inspectors.
  There is no reason why an inspector should not play the role of both cop and coach. If the fire extinguisher is close to its deadline for renewal, there is no reason why the fire inspector should not say, "Look, get this replaced. Ring me when you have done so, but if you don't, we will be back to carry out an inspection. By the way, here
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  are the telephone numbers of the places where you can get it replaced." Where one visit can serve a multiple purpose, that should be done. I know that we will have the support of the House if we achieve that.
  There were a number of less than supportive comments about the SBS. However, I think the House acknowledged that its chief executive, David Irwin, who has direct access to the Cabinet Office and, indeed, to No. 10, has had a great effect in ensuring that the supplementary business rate was not introduced and in helping tens of thousands of small businesses with their programmes and business plans. Businesses are being helped to secure finance and with other matters. As the service is only just over a year old, that is a creditable record of achievement and I am confident that it will go on to achieve much more.
  The hon. Member for North Thanet (Mr. Gale) raised issues in connection with residential care homes. He acknowledged in his speech that the provisions of the Care Standards Act 2000 will benefit users and providers of care by ensuring that regulations are consistent and coherent. Of course, regulations and standards are the subject of a regulatory impact assessment, which will be produced for consultation. I anticipate that he will ensure that the groups that he mentioned make representations.
  Several of the contributions to the debate have been of considerable merit. The latter stages of the debate obviously drew Members to the Chamber—the quality of the speeches was doubtless circulating as Members sent their notes to Hansard. It is always a pleasure to respond to a debate that includes contributions by Members from both sides of the House who really care about the subject—in this case, small businesses in their constituencies.
  Mr. Tony McNulty: I beg to ask leave to withdraw the motion.
  Motion, by leave, withdrawn.

  Retailing
  Motion made, and Question proposed, That this House do now adjourn.—[Mr. McNulty.]
  1.12 pm
  Mr. David Heath: It is a great privilege to be able to address the House on this important issue although I confess that some of the subject matter may resemble that of the previous debate, as I shall concentrate on some of the smaller businesses in the retail sector. I hope that that does not mean that we shall have too much of a good thing. There is rather more time available for the debate than I had anticipated, but I do not expect to over-stay my welcome and hope that we shall finish at a reasonable time.
  It is impossible to overstate the importance of the retailing sector in the British economy. Hon. Members know the details. The sector represented 23 per cent. of the gross domestic product last year. It employs 3 million people. Indeed, it employs almost 9 per cent. of the work force in my constituency. We are dealing with an important sector.
  I have a little experience in the sector, having run a high street business—albeit not a standard retailing operation—in my former profession as an optician. I am extremely aware of the importance placed on a thriving retail sector not only by business people in my constituency but also by ordinary constituents. They want shops in their towns and villages. They want the convenience of obtaining products locally without necessarily having to travel to what are nowadays rather quaintly described as sub-regional or regional shopping centres. Such places can seem a long way away from people in rural Somerset.
  Because of the importance of the local retail sector, I want to concentrate not so much on the larger retailers and supermarkets, or the high street multiple stores, which are found across most of the country. as on something that we talk about rather less—the independent retailer and the smaller shops that are trying to survive in our villages, smaller towns and market towns, as well as on the periphery of urban centres.
  Too often, we concentrate on the retailing centres in the middle of towns and completely ignore the fact that many people and many shops are trying to subsist on housing estates, on the edge of town and in some of the old shopping plazas, which seem redolent of the 1930s and have often not improved a great deal since then. It is time to pay more attention to those retailers.
  Most people who are trying to run small independent shops would identify three main enemies, the first of which is the monopolies or oligopolies, or the would-be monopolies or oligopolies, that threaten them, either by competition or through their direct dealings with them. The second enemy is the activities of criminals. That is becoming an ever-increasing problem for many people who run retail businesses. The third enemy—I use the term advisedly—are the Government, although I wish it were otherwise. Local and central Government can place impositions on retailers' business.
  Added to those three principal groups of enemies is the vulnerability of so many small businesses, whether in the manufacturing or the retail sector, to events that are entirely beyond their control. The classic example, which
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  is very current in my constituency, is foot and mouth disease and its aftermath—a very serious issue. If a company is big enough, it probably has the reserves, capability and ability to weather the storm, but those trying to run a one or two-person business probably do not, and they will go under unless adequate support is provided.
  I shall deal with each of those sectors in turn, beginning with the monopolies or large businesses. Competition is a good thing; it is a motor of retail business. We should not be afraid of competition or of saying that consumers vote with their feet. It is very easy to say that the big supermarket chains, for example, are always the enemies of the piece, without realising that most people in most towns clamour to have one of the large supermarkets in their towns. At the moment, many people want Asda to relocate to Frome, and they are looking forward to that happening. It is absolutely right that the local community considers planning and other issues.
  People should consider whether large retailers should move into the town centre to reinvigorate it, or whether they should be allowed to build on a greenfield site on the edge of the town, so destroying the town centre. The argument about such things has gone on for many years now, and it is a key part of public policy. While recognising the effectiveness and efficiency of large retailers, we should also recognise that they sometimes have advantages that are not entirely fair over smaller independent retailers. Some of those advantages are to do with the management of the supply chains.
  Large retailers obviously have enormous buying power, which squeezes out competition and has an effect on their relationship with primary producers. As a representative of a constituency that is still largely agricultural, I notice that effect in the dairy sector, in which there is a very unequal balance of power between the retailers, and even the processors, and the primary producers. The Government should examine the relationships in the food chain.
  Before the election, the Minister of Agriculture promised me that he would study the milk chain. From an answer to a question that I asked about a week ago, I now understand that the new Department for Environment, Food and Rural Affairs is not considering such a study. I do not know whether that means that the matter has been hived off to the Department of Trade and Industry, which deals with competition policy, but I would be grateful if the Minister could tell me whether a study of vertical relationships in supply chains will go ahead, and if so, when we can expect results. I hope that the study will be more adequate than the report by the Competition Commission, which asked the wrong questions of the supermarkets and therefore came up with the wrong answers.
  Advantages for large retailers are built into the regulatory framework, and the biggest of them is the uniform business rate. I make no apologies for returning to this key subject, which was mentioned in the earlier debate, because many small retailers simply cannot understand why they are penalised in the proportion of their turnover that they have to devote to paying that unavoidable overhead compared with large retailers, with huge floor space, on the edge of town. I have repeatedly pointed out that the uniform business rate needs fundamental reform to make it fair.

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  If we cannot have such reform, let us at least make an arrangement to mitigate the effects of the uniform business rate on small firms. My hon. Friend the Member for Weston-super-Mare (Brian Cotter) has already outlined a mechanism, using the equivalent of the personal tax allowance, that would allow a given amount of a small firm's turnover to escape the business rate. That would benefit many small retailers, freeing them from an overhead that they cannot afford. Some arrangements for exemptions from the uniform business rate were introduced before the foot and mouth outbreak, and others were made in response to foot and mouth. They are all welcome, but they are complicated, and they are strangled by unrealistic turnover thresholds and definitions of qualifying businesses. A wider system of exemption or mitigation would be much more beneficial.
  Finally, on monopolies, I want to deal with retailers' relationships with the banks. The banks, too, virtually have a monopoly. There is competition in the sector, but all the banks operate in a similar way. There is an urgent need to implement some of the recommendations in the Cruickshank report, particularly to establish a payments regulator. That could be an additional function of the Office of Fair Trading. Will the Minister tell the House whether that proposal will be included in the enterprise Bill to be introduced later in this Session?
  Criminality is a problem for small retailers throughout the country. Town centres are increasingly lawless, and small retailers are experiencing more and more problems in maintaining the security of their premises and stock. The Government need to address that more adequately. They must deal with town centre crime and support retail crime-fighting partnerships, where they exist, but they must go further.
  We want to see a police presence in our town centres, but many police forces are unable to maintain that presence. There is a need for town centre premises, or cop shops, for patrolling constables, instead of police stations on the outskirts of towns which were built for a previous era and have very few officers who are visible to retailers or customers. The Government could usefully provide tax relief for the security measures that businesses increasingly have to apply and local government planning authorities should be more tolerant of the measures that are necessary to make premises secure.
  No one wins from shop crime. Costs are passed on to the consumer and insurance premiums increase sometimes to the point that a business in a town centre is not insurable. We need to tackle that problem.
  The smuggling of products that carry excise duty makes a significant difference to the small businesses that sell them legitimately. More attention needs to be given to that problem.
  We should also pay more attention to the impositions placed on small businesses as a result of policing the present system. Small business representatives often point to the proof of age regulations. Depending on the purpose of the item bought, the age of a consumer—be he 12, 15, 16 or 18—has to be established. However, there is no formalised system for the identification of minors and shopkeepers must bear the brunt of the consequences of that.
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  As I have said, the changes that the Government could make to the uniform business rate are crucial. Regulation, however, is another problem. Businesses are overregulated and it is a truism or a platitude to say so. We are all against greater regulation, but we produce more and more of them. I therefore make a heartfelt plea to Ministers to curb that practice.
  This place produces regulations as if they were coming out of sausage factory and we sometimes gold plate European regulations. 'That is a ridiculous habit of the British civil service even though the European authorities should not produce many of those regulations in the first place. I am a great believer in subsidiarity and one of the arguments for it is that regulations should not be produced to ensure compliance and uniformity when variety and diversity benefit the consumers and the businesses involved. 'That point should be taken seriously.
  The Government can reduce the regulations and the impositions that they put on business people. Small businesses often say that they spend so long working for the Government—I do not just mean producing the money to pay taxes, but literally working for the Government by engaging in self-assessment and dealing with inspection and requests for inforrnation—that they have little time left to devote to running the business effectively. We must bear down on that crucial problem.
  One suggestion is to have a single inspectorate—I call it an inspectorate because it has an inspectorate's role but I prefer to think of it as assisting compliance—that can form a relationship with small businesses. It should tell them everything that they should do but should place a burden on them only when they do not comply with those requirements. That would be a much more healthy relationship. We could also introduce automatic sunset clauses into regulations so that they do not continue to apply when they no longer have a function.
  There is much positive action that we could take to support small businesses, particularly those in market towns, because many of those towns are dying on their feet. There are still too many boarded-up premises and too many businesses that cannot survive in the market-town environment. The regional centres are thriving, and there must be a better balance between the two. Not everyone can drive 50 miles to buy basic clothes. We need to revitalise our smaller towns. Convenience stores must receive our support. 'Their advantage is that they are convenient, so we should not put obstacles in the way of people using them.
  Niche businesses also need our support. They are often the motors for trade. We cannot have a town that is entirely full of people selling ceramics, but a few shops in the niche markets will bring people in who will do other shopping. Mechanisms should be in place to encourage the establishment of such shops. In that context, what has happened to policy action team 13, which was mentioned last week in the Evening Standard? It seems to have died a death, but perhaps the Minister will disabuse us of that by confirming that it is involved in many good schemes.
  Finally, foot and mouth has had an almost incalculable effect on businesses in my constituency. Although we have had no cases, many different businesses have been affected by the disease, which has had extraordinary ramifications. The support that the Government have stated and advertised is not reaching businesses,

  1103
  which are struggling to survive. Once the epidemic ends among livestock, it will continue as an epidemic among businesses. It will take us a decade to recover from the unacceptable series of business casualties that will occur in rural areas this autumn and winter unless action is taken now. It is in everyone's interest that that action is taken. If it is difficult for a firm to get through a fallow period in the winter and there are cashflow problems, we need to ensure that it survives to make a profit next year. We cannot allow it to go under because that puts people out of work and creates holes in the economy that are difficult to fill.
  I am not sure whether the taskforce that was established in the dying days of the last Parliament understood the scale or complexity of the problem, or the fact that Ministers' good intentions were not being translated into activity on the ground. Many more shops will be lost unless aid is supported with cash, and we need to get that to businesses now. We cannot allow it to end up in a quango's sinking fund. We must get it to the people who can make it work so that they maintain their businesses.
  I am grateful for the opportunity to raise such important issues of support for small businesses. I am not prejudging what the Minister will say, but the subject seems to breed platitudes: we all support small businesses; we are all against regulation; and we all want those businesses to get a new deal. However, year after year, under successive Governments, it becomes more difficult to maintain, create and develop a retailing business in this country. It is important that the sector thrives, and I hope the Minister will tell us what he intends to do to make that a reality.
  1.34 pm
  The Minister for E-Commerce and Competitiveness (Mr. Douglas Alexander): First, may I pay tribute to the hon. Member for Somerton and Home (Mr. Heath) for securing the debate? He spoke forcefully—indeed, movingly—and from the bas s of a real knowledge of his constituents' concerns about the importance of small retailers. He raised several matters that I hope to address.
  I assure the hon. Gentleman that the Government fully understand the vital role that retailing plays in the United Kingdom's economy. It contributes more than 5 per cent. to the nation's gross domestic product and employs nearly 2.5 million people, which is 11 per cent. of the work force. Some 58,400 new jobs were created in the sector last year, providing flexible job opportunities for women, part-timers, young people and returners to work among others.
  More than any other sector, retailing affects our daily lives, as the hon. Gentleman, made clear. Not only does every household spend £144 a week on average in retail outlets, but the availability of suitable shopping facilities influences where people choose to live, the value of their houses and their environment.
  At one end of the scale, the vibrancy and diversity of retailing in Britain attracts huge revenues from tourists, while at the other, access to the local shop is far more than just a convenience. It is an essential local amenity, and one that can help in the regeneration of our high streets and market towns, to which the hon. Gentleman referred, and in the rejuvenation of urban and rural communities in general.
  Just as shops are an important part of any community, so is the local post office, a subject on which I had the pleasure of reading some of the hon. Gentleman's
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  contributions to debates in this House. The local post office is more than just a retail outlet, especially in many rural areas. It represents vital human contact for many of its customers. This Government are committed to ensuring that the network is a viable business and that running a sub-post office is and remains an attractive business proposition. We are therefore introducing a range of measures to help post offices. One, which I had the opportunity to put before a Committee this week, is the establishment of a £2 million fund to make available subsidies in respect of the costs of establishing a sub-post office in settlements of fewer than 10,000 inhabitants.
  The Government are also committed to assisting shops in rural areas such as the hon. Gentleman's constituency. The White Paper "Our Countryside: the future, a fair deal for rural England", published in November, announced a range of new measures to help rural services, including village shops.
  Those measures include a £15 million community services grants scheme, administered by the Countryside Agency, which awards grants of between £500 and £25,000 to locally identified, innovative projects to improve access to services that may be declining or under threat; increased funding for market-town regeneration, which is expected to entail a £100 million programme for 100 towns to strengthen their role as service providers and growth points and to create a national beacon towns best-practice network; and new legislation providing 50 per cent. rate relief to all village food shops and new non-agricultural enterprises on farms.
  I noted the hon. Gentleman's comments on uniform business rates. It was one of the pleasures of preparing for today's debate to read his speech in the debate on 30 April on that very subject. In last year's Green Paper, "Modernising Local Government Finance", the Government proposed a scheme to provide mandatory rate relief of up to 50 per cent. for all small businesses. We are currently considering the details of that scheme, in consultation with representatives of business, including small business bodies. We shall publish a White Paper on the next steps later this year. As the hon. Gentleman acknowledged, we have already implemented the Green Paper proposals to provide additional help to small retailers in isolated rural communities. Mandatory rate relief of 50 per cent. was extended to certain pubs and petrol stations in designated rural villages with effect from 5 April.
  I turn next to retail crime, which the hon. Gentleman raised. The Government are particularly concerned about the level of crime, as described in the policy action team or PAT 13 report to which he referred, that small retailers are suffering in deprived areas. Indeed, the Home Office is working closely with the retail sector through a ministerial advisory group on retail crime and the retail crime action team to develop initiatives to combat such crime. That has led to the development of active retail crime partnerships, the best of which are delivering some impressive results in reducing crime and antisocial behaviour in city and town centres. My right hon. Friend the Home Secretary announced on 27 June a £15 million investment to improve the immediate environment of shops and enhance their security.
  On the specific issue raised by the hon. Gentleman of proof of age, the Government do not believe that there is a case for introducing a national card. There are

  1105
  already some good voluntary schemes—notably Prove It, CitizenCard and Validate—which have the Government's support.
  The hon. Gentleman spoke forcefully about the regulatory burden on our retailing sector. In creating a dynamic and competitive economy including the retail sector, it is of course important that we pursue the objective of light-touch and proportionate regulation—regulation only where it is justified and to the extent that it is justified.
  One of the primary functions of my Department's Small Business Service is to find ways of reducing regulatory and administrative burdens on small businesses. The SBS will work to ensure that the "think small first" philosophy is applied across Whitehall in respect of new regulations. It will seek to reduce the impact of regulations by eliminating them where possible, by simplifying forms and procedures and by encouraging higher standards of enforcement. The SBS also encourages Departments to make information on regulations comprehensive and accessible, including through the SBS information and advice service.
  Following a request from my right hon. Friend the Secretary of State for Trade and Industry to Lord Haskins, the better regulation task force agreed to report on the regulatory burden faced by small and medium-sized enterprises, including small retailers as a case study. The report has recently been published and my Department is now considering the recommendations and how to implement them.
  On the specific issue of supermarkets, concerns have been voiced that the Competition Commission inquiry into supermarkets might not have gone far enough and that small shops are at a disadvantage. However, the success of the supermarkets cannot be attributed solely to the prices that they charge: consumer buying patterns and habits are changing and we are witnessing the growth of the desire for one-stop shopping, as the hon. Member for Somerton and Frome recognises.
  In completing its report, the commission considered carefully the impact of supermarkets on rural shops. It identified a number of practices engaged in by the larger supermarkets that it felt were against the public interest because they adversely affected the competitiveness of some of their suppliers and other smaller retailers. The commission's report recommended that the most effective way of addressing those adverse effects was a code of practice. My right hon. Friend the Secretary of State for Trade and Industry has recently received advice on the code from the Director General of Fair Trading; that advice is now being considered.
  Another major concern was that supermarkets might be involved in the practice of below-cost selling, which could have an adverse impact on small retailers. The Competition Commission examined the practice of below-cost selling in detail. It found that persistent below-cost selling took place only in relation to a small number of products, most commonly economy lines and a few other high-profile items. It was impossible directly to isolate and quantify any adverse impacts.
  The commission accepted that persistent selling below cost could be damaging, but considered that there were good grounds for not taking action against it: for example,
  1106
  there were difficulties identifying legitimate exceptions to a prohibition, and there was a possibility that supermarkets would circumvent a prohibition by forcing down supplier prices to allow them to set lower retail prices. A prohibition might also lead to higher prices for consumers. The former Secretary of State for Trade and Industry, my right hon. Friend the Member for Tyneside, North (Mr. Byers), therefore accepted the commission's recommendation that no action should be taken in respect of persistent below-cost selling.
  The location of large out-of-town supermarkets is the result of commercial decisions by retailers, albeit operating within the constraints of local planning regulations that are designed to encourage new growth within towns. The Government are committed to sustainable development that ensures the viability of town centres, and planning proposals are scrutinised against guidelines that strongly promote town centres as the focus for future retail development.
  When drawing up their development plans and determining planning applications, and after giving consideration to the need for new development, we expect local planning authorities to adopt a sequential approach to the selection of a site: first preference should be given to town-centre sites, followed by edge-of-centre sites, and only then to out-of-town sites. The onus is on developers opting for out-of-town sites to demonstrate that all potential town-centre and edge-of-centre options have been thoroughly assessed.
  I shall write to the hon. Gentleman on issues relating to the supply chain and the Cruickshank report. He specifically directed many of his remarks to the issue of small retailers. It is clear that retail delivers tangible economic benefits not only to the country as a whole, but to individual communities. The broader welfare advantages that it can bring were recognised by PAT 13, which confirmed that good neighbourhood retailing plays a vital role in improving community self-esteem, community engagement, skills development and training and social life. The maintenance of local retailing is vital to the lifeblood of a community, so I am extremely pleased to be undertaking that work in the Government. I acknowledge the progress already made in departmental implementation of PAT 13's recommendations.
  For example, at our request, the better regulation task force examined the impact of the regulatory burden on small shops. Its report has been published and we shall give careful consideration to its recommendations on how to advance the issues. The SBS, through its franchises, is supporting initiatives to provide direct help to small retailers. For example, pilot projects are being supported in Surrey, where 800 small retailers are utilising e-commerce to achieve supply chain efficiencies, and in Birmingham, where inner-city retailers are receiving help in improving store standards and performance through advice on merchandising, training, customer service, health and hygiene, promotional projects and group purchasing. If successful, we hope that those projects and similar ones can be rolled out across the country.
  Funding is available through the SBS Phoenix development fund, which is designed to encourage innovative ideas to promote and support enterprises in disadvantaged areas among groups of people currently under-represented in business ownership. Its purpose is to encourage experimentation, the evaluation of new ideas and the identification and spread of best practice in an

  1107
  area where there is currently too little knowledge. The second round, which has just closed, specifically identified retailing as a sector in which applications would be considered.
  The report also stressed the need for locally developed strategies, with the local community playing a full part in the process and working together with local retailers. Through the establishment of the PAT 13 movers' group, consisting of people who are actively involved with promoting the sustainability of retailing in local communities, we are identifying examples of best practice. They will be disseminated in a conference in January next year with the aim of encouraging local people to set up or sustain retail businesses in difficult areas by highlighting support mechanisms that are available. A signposting guide to both local and national support mechanisms will be launched at the conference, and will be available via a DTI-supported website. I hope that the hon. Gentleman agrees that measures such as those sequential approaches help to provide small retailers with a more level playing field.
  I turn to foot and mouth, which the hon. Gentleman raised in his conclusion. The Government continue their work in that area. We are already helping badly affected non-farming businesses to cope by deferring tax, VAT and national insurance contribution payments; we are providing extra funding for hardship rate relief payments; and are establishing a new regional development agency business recovery fund to provide grants to help businesses adjust and cope with the crisis. Already, more than 11,000 businesses have had tax, VAT and national
  1108
  insurance payments deferred without interest charges worth £71 million. However, I concede that work must go on across Departments to continue to cope with a serious crisis that has affected a large number of constituencies the length and breadth of the country.
  I thank the hon. Gentleman for raising the issue, and I assure him that we recognise the difficulties that small retailers currently face in adapting to changing patterns of competition and consumers' buying habits. Our goal is the sustainability of a vibrant and diverse retail sector, both physical and virtual, which can serve the needs of all social groups in all parts of the country. It is not, however, our role artificially to keep businesses afloat through subsidies, but to help them become more sustainable through innovation and the adoption of new technologies and best practice. Much excellent work is being developed and undertaken in communities across Britain; we want to encapsulate that and encourage a wider spread of take-up across the country. I therefore warmly welcome the opportunity to demonstrate our commitment as a Government to the retail sector, to working closely with it in future, and to any initiatives aimed at promoting social inclusion and enhanced sustainability of social enterprises, in both of which retailing has played an important part. In conclusion, I pay tribute to the hon. Gentleman's success in initiating this debate in the House.
  Question put and agreed to.
  Adjourned accordingly at eleven minutes to Two o'clock.

INTERNATIONAL DEVE LOPMENT

  Southern Sudan
  Dr. Tonge
  To ask the Secretary of State for International Development what plans she has to visit southern Sudan; and if she will make a statement. [2284]

  Clare Short
  I continue to keep under review the possibility of a visit to north and south Sudan. Our priority for Sudan is to encourage a just peace. We continue to provide relief to alleviate the suffering caused by the war.

  Digital Divide
  Mr. Nigel Jones
  To ask the Secretary of State for International Development what polices she is pursuing to tackle the problem of the digital divide in developing countries; and if she will make a statement. [1808]

  Clare Short
  Our recent White Paper outlines the threat the digital divide provides to the prospects of poor countries. Our policy is to maximise the benefits to the poor by integrating the use of information and communication technologies (ICT) into our existing development activities aimed at achieving the international development targets. For example effective use of ICT can help improve governance and accountability, improve access to services such as education and health, and boost economic growth.

  Belize
  Matthew Taylor
  To ask the Secretary of State for International Development, pursuant to her answer of 2 July 2001,Official Report, column 41W, on Belize, if KPMG passed to her Department copies of the three letters from Carlisle Holdings during its study to review the regulation of offshore financial services in Belize and the effect of tax exemptions on pro-poor programmes. [3372]

  Clare Short
  Yes.

  Matthew Taylor
  To ask the Secretary of State for International Development, pursuant to her answer of 2 July 2001,Official Report, column 42W, on Belize, on what date her Department was informed that KPMG were the external auditors of the Belize b ink. [3373]

  Clare Short
  On 25 August 2000.

  Matthew Taylor
  To ask the Secretary of State for International Development on what dates KPMG received letters from the Public Investment Company, Sonisa, during its study to review the regulation of offshore financial services in Belize and the effect of tax exemptions on pro-poor programmes; if she will place copies of these letters in the Library and if she will make a statement. [3374]

  Clare Short
  My Department is not aware of any such correspondence.
  654W
  Matthew Taylor
  To ask the Secretary of State for International Development what assessment has been made of the amount of tax not paid since 1990 by the two public investment companies with regard to the study commissioned by her Department to review the regulation of offshore financial services in Belize and the effect of tax exemptions on pro-poor programmes; if she will place a copy of these calculations in the Library; and if she will make a statement. [3375]

  Clare Short
  I refer the hon. Member to the answer I gave on 11 July 2001,Official Report, column 531W, concerning the confidentiality of the KPMG report.

  Matthew Taylor
  To ask the Secretary of State for International Development if her Department asked(a) KPMG and (b) the Belize Government to calculate the amount of tax not paid since 1990 by the two public investment companies during its study commissioned by her Department to review the regulation of offshore financial services in Belize and the effect of tax exemptions on pro-poor programmes; and if she will make a statement. [3378]

  Clare Short
  KPMG was asked to estimate the scale of the possible loss of tax revenue as a result of PICs (Public Investment Companies). I refer the hon. Member to my answer to question uin3375.

  Matthew Taylor
  To ask the Secretary of State for International Development how much debt owed by Belize has been written off by the British Government under the Commonwealth Debt Initiative in each year since 1997; how much debt owed by Belize is planned to be written off by the Government over the next decade; and if she will make a statement. [3377]

  Clare Short
  £1.146 million in debt relief was granted to Belize in 1998 covering repayments due on past UK aid loans from April to October 1998. Bilateral aid amounting to £1.771 million for poverty-focused projects was agreed in 1999—equivalent to the repayments due between December 1998 and March 2000. This was provided so that the newly elected Government did not lose out on the value of the debt relief but was given time to decide whether it wished to qualify for the benefits of the Commonwealth Debt Initiative. The remaining outstanding debt on past UK aid loans to Belize amounts to £10.470 million, covering a repayment period which lasts until 2008.

  Matthew Taylor
  To ask the Secretary of State for International Development on what dates KPMG visited Belize while conducting the study commissioned by her Department to review the regulation of offshore financial services in Belize and the effect of tax exemptions on pro-poor programmes. [3379]

  Clare Short
  18 July to 1 August 2000.

TRANSPORT, LOCAL GOVERNMENT AND THE REGIONS

  Millennium Dome
  Mr. Peter Ainsworth
  To ask the Secretary of State for Transport, Local Government and the Regions what the basis was for commencing a hard strip of the Dome. [3101]
  655W
  Ms Keeble
  [holding answer 9 July 2001]: The hard strip was suspended while market testing of future Dome use options was begun. Independent professional advice has since been received that completing the hard strip offers maximum flexibility for any future use and does not prejudice the chances of the Dome being used for any particular use. Carrying out the hard strip enhances the prospects of finding a long term sustainable use, and therefore the work is proceeding.

  Mr. Wilkinson
  To ask the Secretary of State for Transport, Local Government and the Regions how much public money has been spent from 1 January to 30 June on the care and maintenance of the Millennium Dome; and what his estimate is of the total figure for 2001. [2347]

  Ms Keeble
  Between 1 January and 30 June 2001 expenditure by the New Millennium Experience Company in relation to care and maintenance of the Millennium Dome was:

  January—£600,000

  February—£646,000

  March—627,000

  April—£609,000

  May—£632,000

  June—£224,000.

  The company received a rates rebate in June of £838,000 for the same six-month period, thereby reducing the care and maintenance cost by that amount. The figures listed do not include expenditure incurred on decommissioning, or any costs relevant to the company's on-going wind-down and liquidation activities.

  London Transport
  Harry Cohen
  To ask the Secretary of State for Transport, Local Government and the Regions if he will publish the actual figures for the amounts the private sector is investing in London Transport under existing contracts. [2729]

  Mr. Jamieson
  The following table shows estimates of the value of investment in London Transport through the existing London Underground Private Finance Initiative contracts.

  £

  Contract name/Investment coverage

  Investment Value1

  British Transport Police

  New HQ and BTP police station at Tottenham Court Road and a new BTP station at West Ham

  10

  Connect

  New stations and trains radio systems and communications infrastructure

  350

  Northern Line Trains

  Provision of new Northern Line train fleet

  400

  Power

  Network of substations and power distribution cables

  100

  Prestige

  Ticketing service infrastructure

  150

  Total investment value (£ billion)

  1.01

  1 The investment value is not the actual amount the private sector is investing in London Transport. Instead it is London Transport's estimate of what investment in PEI projects would have cost had they done the investment themselves.

  Cycling
  Mr. Ben Chapman
  To ask the Secretary of State for Transport, Local Government and the Regions (1) if he will set out the key components of cycling strategies; and what plans he has to monitor their implementation; [3199]

  (2) if he will make a statement regarding local authorities which have failed to produce a cycling strategy. [3198]

  Mr. Spellar
  Our guidance to local authorities on full local transport plans (LTPs), published in March 2000, set out both the minimum requirements of a cycling strategy and the characteristics expected in a good LTP as follows:

  Minimum requirements
  A discrete strategy for encouraging cycling, which establishes a clear target that contributes to the national targets for increasing cycle use
  Evidence that cyclists have been given a high priority
  Evidence that encouraging cycling is part of all transport policies, including road safety strategies
  Evidence of interaction with local planning authority to ensure that land use and development planning allows and encourages people to cycle
  Evidence that there has been a review of the road network, to establish where improvements to assist cyclists are needed
  Assessment of the quality of existing cycle networks, to identify where improvements ire necessary
  Programme of measures to improve safety of cyclists and reduce conflicts with other traffic, including pedestrians

  Characteristic of a Good LTP
  Adopts a formal order in which planners consider the needs of different user types, placing cyclists near the top
  Partnerships for action with health, education, commercial and voluntary bodies
  Plans for improvement of physical provision to be based on methodical application of cycle review guidelines (published by IHT)
  Cycle audit all road and traffic schemes
  Aims to improve interchanges, and increase opportunities for combined cycle and public transport journeys
  Encourages cycling through Travelwise, Green Commuter Plans, Local Agenda 21 and School Transport Plans
  Minimises conflict between pedestrians and cyclists.
  Progress on the outcomes and targets established in LTPs, including those in the cycling strategies, will be monitored through a system of annual progress reports (APRs). Guidance to authorities on the production of APRs was published in March 2001. Copies were placed in the Library of the House. Authorities are required to submit their first APR by 31 August 2001.

  In notifying authorities of their capital allocations for 2001–02 in December 2000, our decision letters provided detailed feedback on the degree to which the LTPs had fulfilled the criteria for each element of the plan, including those set out for cycling strategies. We also identified, where appropriate, any specific areas in which authorities needed to improve their LTP. Our guidance on APRs makes clear that the annual reports should summarise actions taken to address these identified areas and to provide evidence of Improvement.
  657W

  Housing
  Mr. Coleman
  To ask the Secretary of State for Transport, Local Government and the Regions what percentage of(a) local authority and (b) registered social landlord rents in Hammersmith and Fulham he estimates will be in excess of £100 per week in (i) 2002, (ii) 2005 and (iii) 2010. [2987]

  Ms Keeble
  Estimates will be available only when the landlords have completed their rent plans, which are due by April 2002. However, later this summer the results will be available from the case study research into the practical issues arising from the rent reforms in west London. These will include initial estimates of the effects of the reforms on the rents of properties owned by London borough of Hammersmith and Fulham and Notting Hill Housing Trust.

  Mr. Coleman
  To ask the Secretary of State for Transport, Local Government and the Regions (1) what consultation his Department has carried out to date over his policy on rent restructuring with(a) local authority tenants, (b) registered social landlord tenants, (c) local authorities and (d) registered social landlords; [3002]

  (2) what plans his Department has to consult the representatives of local authority and registered social landlord tenants over his plans for rent restructuring; and if he will make a statement. [3000]

  Ms Keeble
  My Department's approach to bring a fairer and more coherent structure to social rents is set out in the December 2000 policy statement "Quality and Choice: A decent home for all—the way forward for housing". This drew on response to the April 2000 Green Paper "Quality and Choice: a decent home for all" which almost universally agreed on the need to bring more coherence into the structure of social rents. The Green Paper was sent to all local authorities, registered social landlords and national tenant groups.

  We are now in the implementation stage. The Housing Corporation is considering the results to its March 2000 consultation paper on its proposals for implementing the rent restructuring framework among registered social landlords and will shortly be publishing interim guidance. It plans to issue final guidance in the autumn.

  In the local authority sector, a consultation paper is being published on changes to the housing revenue account subsidy system to support rent restructuring.

  Mr. Coleman
  To ask the Secretary of State for Transport, Local Government and the Regions what his Department's most recent estimate is of the average increase of housing association tenants' rents in the next 10 years in real terms(a) in total and (b) in Hammersmith and Fulham. [3003]

  Ms Keeble
  The December 2000 policy statement "Quality and Choice: A decent home for all—the way forward for housing" stated that from 2002–03 the rents of registered social landlords (RSLs) should, on average, rise by 0.5 per cent. above inflation (RPI + 0.5 per cent.) per annum. Over a 10-year period this will result in average RSL rents rising by around 6 per cent. in real terms. Estimates for housing association tenants' rents in the London borough of Hammersmith and Fulham will only be available once their landlords have completed their rent plans. However, later this summer the results 658W
  will be available from the case study research into the practical issues arising from the rent reforms in west London.

  Mr. Coleman
  To ask the Secretary of State for Transport, Local Government and the Regions what discretion in percentage terms his Department intends to give to local authorities in respect of the overall level of rents. [2986]

  Ms Keeble
  Local authorities will continue to be free to set rents at whatever level they consider appropriate. However the approach to social rent reforms set out in the December 2000 policy statement "Quality and Choice: A decent home for all—the way forward for housing" encourages social landlords to set rents on individual properties which are normally within a band of up to 5 per cent. higher or lower those indicated by the new rents formula.

  Mr. Coleman
  To ask the Secretary of State for Transport, Local Government and the Regions when his Department expects to publish the consultation document on restructuring the housing revenue account subsidy system; and if he will make a statement. [3067]

  Ms Keeble
  We published this consultation paper on 13 July. I have arranged for a copy to be placed in the Library of the House. The closing date for comments on our proposals is 8 October.

  We have announced a policy for achieving fair and affordable rents in the social rented sector. As part of this we have set out a common basis on which all rents in the social sector should be set and announced a 10-year transitional period in which the changes should as far as possible be made.

  The housing revenue account (HRA) subsidy system needs to be changed so that it supports rent restructuring. At the same time the opportunity can be taken to relieve stresses in the system that have become apparent as a result of the way in which rent rebate subsidy limitation was introduced in 1996–97.

  Trans-Pennine Rail Franchise
  Helen Jackson
  To ask the Secretary of State for Transport, Local Government and the Regions when he expects to make a decision on the Trans-Pennine rail franchise; and if the franchise will be determined on the basis of the guidelines to be issued on 16 July. [3014]

  Mr. Jamieson
  [holding answer 10 July 2001]: A decision on whether to make a direction under section 26 of the Railways Act 1993—that would allow the Strategic Rail Authority to proceed to the next stage of the franchising process for its proposed Trans-Pennine franchise—will be made in due course.

  We will make clear the scope and application of the franchising policy statement when it is published, shortly. It will not apply to replacement franchises for which the SRA has already invited best and final offers. This consultative statement will complement our draft directions and guidance to the authority and will also set out the Secretary of State's policy with regard to his powers under section 26.
  659W

  Air Traffic Control
  John McDonnell
  To ask the Secretary of State for Transport, Local Government and the Regions what his latest estimate is of the income to be generated by the sale of a 46 per cent. stake in NATS to the Airline Consortium. [3693]

  Mr. Jamieson
  Completion of this Public Private Partnership is subject to the satisfaction of a number of conditions. In finalising these, the Government will ensure that the deal continues to deliver real value to the Government and to taxpayers.

  John McDonnell
  To ask the Secretary of State for Transport, Local Government and the Regions if he will make a statement on his progress in appointing Government nominees as directors of the company formed to provide air traffic control services following the sale of NATS to the Airline Consortium. [3694]

  Mr. Jamieson
  I hope to be able to make an announcement about the Government directors shortly.

  John McDonnell
  To ask the Secretary of State for Transport, Local Government and the Regions when the sale of National Air Traffic Services to the Airline Consortium will be completed. [3695]

  Mr. Jamieson
  Completion of the Public Private Partnership for National Air Traffic Services is subject to the satisfaction of certain conditions. We are working with the Airline Group to ensure that these conditions are satisfied at the earliest opportunity.

  John McDonnell
  To ask the Secretary of State for Transport, Local Government and the Regions what his estimate is of the opening date for the air traffic control centre at Swanwick, Hampshire. [3692]

  Mr. Jamieson
  NATS have advised the Government that the new En Route Air Traffic Control Centre (NERC) at Swanwick is still on course to come into operation on 27 January 2002.

  John McDonnell
  To ask the Secretary of State for Transport, Local Government and the Regions what guarantees have been sought by the Airline Consortium purchasing National Air Traffic Services with regard to the opening of the new air traffic control centre at Swanwick, Hampshire. [3697]

  Mr. Jamieson
  No guarantees have been given to the Airline Group in connection with the Swanwick centre. However, the Airline Group will be under a contractual obligation to complete and operate the new centre.

  Channel Tunnel Rail Link
  Mr. Syms
  To ask the Secretary of State for Transport, Local Government and the Regions if he will make a statement on the timetable for the introduction of the Channel Tunnel Rail Link. [3554]

  Mr. Jamieson
  I am pleased to report that CTRL Section 1 (Channel Tunnel to Fawkham Junction in north Kent) is on schedule and on budget for completion 660W
  in October 2003. Construction of CTRL Section 2 (Southfleet to St. Pancras) started on 2 July 2001, and is expected to be completed by the end of 2006.

DEFENCE

  Live Ammunition
  Mr. Caton
  To ask the Secretary of State for Defence if he will place in the Library information about the percentage of all ammunition fired by the British Army in training that does not detonate. [2782]

  Mr. Ingram
  The document that contains statistical data on performance failures is classified and therefore withheld in accordance with Exemption 1 of the Code of Practice on Access to Government Information.

  Altcar Training Camp
  Mrs. Curtis-Thomas
  To ask the Secretary of State for Defence if he will make a statement on his future plans for the Altcar training camp. [3249]

  Mr. Ingram
  The facilities at the Altcar training camp play an important role in meeting the training needs of the Regular forces, reserves, and cadets from all three services. The Ministry of Defence is considering proposals for the modernisation of the facilities at the camp, specifically the upgrading of targetry and associated range control features.

  Multi-engine Aircraft Pilots
  Mr. Jack
  To ask the Secretary of State for Defence what multi-engine pilot shortfalls were predicted at the 22 November 2000 meeting of the multi-engine aircrew Training Steering Committee. [2696]

  Mr. Ingram
  [holding answer 10 July 2001]: An unspecified pilot shortfall was predicted to cover within the next two to three years.

  Mr. Jack
  To ask the Secretary of State for Defence what target the Training Group Defence Agency set for into productive service multi-engine pilots for 2001; and how many went into service in 2000–01. [2698]

  Mr. Ingram
  [holding answer 10 July 2001]: Against an Into Productive Service target of 55 for multi-engine pilots in the RAF, a total of 57 entered service in 2000–01.

  Mr. Jack
  To ask the Secretary of State for Defence what effect the lack of RAF flying personnel staying on past the 38/16 point will have on the supply of pilots for multi-engine aircraft in each year up to 2012. [2700]

  Mr. Ingram
  [holding answer 10 July 2001]: The number of pilots trained to fly multi-engine aircraft who leave the RAF at the age 38/16 years of service point is small. Last year 16 pilots (1.9 per cent. of trained strength on 1 April 2000) left the service at that point and although a small increase is forecast over the next five to six years, the rate is expected to return to current levels by 2007–08.

  Mr. Jack
  To ask the Secretary of State for Defence what assessment he last made of the likelihood of a shortage of junior (officer multi-engine aircraft pilots in the RAF from the end of 2001. [2699]
  661W
  Mr. Ingram
  [holding answer 10 July 2001]: The current assessment is as follows:

  RAF multi-engine aircraft—junior officer pilot forecast shortfall

  Requirement

  Forecast strength

  Forecast surplus/shortfall

  2001–02

  568

  586

  +18

  2002–03

  571

  580

  +9

  2003–04

  580

  575

  -5

  2004–05

  593

  563

  -30

  2005–06

  603

  552

  -51

  2006–07

  600

  543

  -57

  2007–08

  608

  538

  -70

  2008–09

  586

  539

  -47

  2009–10

  585

  542

  -43

  2010–11

  574

  549

  -25

  2011–12

  571

  555

  -16

  Addressing pilot shortfalls is a key priority for the Government and RAF and a number of initiatives are being undertaken to address this problem. These include the introduction of an in-service degree scheme to attract aircrew at a younger age, fully manning the RAF training systems, and the introduction of targeted financial incentives and the Linkup scheme to help improve retention. A comprehensive review of aircrew retention measures across the armed forces is also being undertaken and will report later this year, hopefully in time to influence the Armed Forces Pay Review Body's deliberations for their 2002 report.

  STANOC Centre
  Mr. Key
  To ask the Secretary of State for Defence to which military unit the STANOC Centre is attached; for what reason it was transferred from HQ Director Royal Artillery; what the annual cost or saving resulting from the move is; and how many personnel were employed in the centre in(a) 2000 and (b) 2001. [3016]

  Mr. Ingram
  [holding answer 10 July 2001]: The Surveillance, Target Acquisition. Night Observation and Counter-surveillance (STANOC) centre is currently part of the Royal Artillery Trials and Development Unit, which is an element of Headquarters Director Royal Artillery based at Larkhill in Wiltshire. As a result of the General Staff Review and a further study into Army Trials and Development Units, it has been decided that the STANOC centre's outputs would most effectively be provided in the future by disaggregating its prime responsibilities to the Land Warfare Training Centre (LWTC) and Infantry Trials and Development Unit (ITDU), both of which are based at Warminster. The current annual cost of the STANOC centre is £242,878. The provision of new infrastructure at Warminster is currently estimated at £65,000. Six military personnel were employed at the STANOC centre in 2000, and from 1 September 2001 three of these posts will be transferred to the LWTC and ITDU at Warminster and the remaining three posts will be redeployed elsewhere in the Field Army. Therefore, there will be no overall saving to the defence budget.

  Tritium
  Paul Flynn
  To ask the Secretary of State for Defence what assessment he has made of the availability of tritium for Britain's military defence programme following the accident at the Chapelcross reactor Number 3 this month. [3721]

  Mr. Hoon
  The incident at Chapelcross had no impact upon the availability of tritium for Britain's military defence programme.

  National Missile Defence
  Lynne Jones
  To ask the Secretary of State for Defence what contribution he is making to President Bush's deliberations over the sort of missile defence system the United States will deploy. [3706]

  Mr. Hoon
  We continue to discuss missile defence and related issues regularly with the United States. We have consistently made it clear that we share US concerns about the proliferation of weapons of mass destruction and their means of delivery, and that we will continue to work together to tackle the potential threat with a comprehensive strategy. And we welcome the fact that they are consulting with Allies, Russia and others on this important issue. But it is ultimately a matter for the US Administration to decide what sort of missile defences they will seek to deploy. They have not yet done so, and nor have they made any request for the use of facilities in the UK for missile defence purposes.

  Porton Down
  Matthew Taylor
  To ask the Secretary of State for Defence if he will place in the Library copies of communications from the Medical Research Council to his Department outlining the reasons why they believed an epidemiological study of the Porton Down volunteers is feasible. [3408]

  Dr. Moonie
  There are no such communications. The feasibility of an epidemiological study was discussed formally at a meeting on 5 April 2001. Notes of that meeting are contained in the briefing pack for research teams wishing to undertake the study. A copy of the pack has been placed in the Library of the House.

  Matthew Taylor
  To ask the Secretary of State for Defence if he will place in the Library (1) a copy of the information pack which is being sent to academic researchers who submit an expression of interest in carrying out an epidemiological study of service volunteers who took part in experiments at the Chemical Defence Establishment, Porton Down; [3410]

  (2) a copy of the protocol drawn up by the Chemical Defence Establishment, Porton Down, to carry out the experiment in 1983 in which service personnel were exposed to sarin nerve gas and involved the technique of single fibre electromyography. [3399]

  Dr. Moonie
  Yes.

  Liquidated Damages
  Dr. Vis
  To ask the Secretary of State for Defence (1) if his Department invites bidders to offer liquidated damages as a standard percentage of their tendered price with a standard time limit on their application; and how he
  663W
  ensures that contractors do not include the value of potential liquidated damages payments in their tendered prices; [3881]

  (2) what role liquidated damages indemnities play in securing the FASTER element of his Department's smart procurement initiative; [3716]

  (3) what procedures his Department follows to establish the level of likely damage on which to base liquidated damages indemnities; and to establish an upper limit of liquidated damages in each case. [3880]

  Dr. Moonie
  I will write to my hon. Friend and a copy of my letter will be placed in the Library of the House.

  Japanese Internees
  Mrs. Lait
  To ask the Secretary of State for Defence what definition of British nationality is used to establish the entitlement of Japanese internees to compensation. [4276]

  Dr. Moonie
  I refer the hon. Member to the answer I gave the hon. Member for Macclesfield (Mr. Winterton) on 11 January 2001,Official Report, column 517W.

TREASURY

  EU Funding
  Mr. Dodds
  To ask the Chancellor of the Exchequer what proportion of the United Kingdom's contribution to the EU was calculated to come from Northern Ireland in each of the last three years. [3397]

  Ruth Kelly
  Contributions are made for the United Kingdom as a whole and no such estimates are therefore available.

  Hidden Economy
  Dr. Kumar
  To ask the Chancellor of the Exchequer if he will estimate the loss in tax revenue to his Department in the last year from people operating in the hidden economy for each of the regions in the United Kingdom. [3715]

  Mr. Andrew Smith
  No such estimates have been made.

  Equitable Life
  Mr. Russell Brown
  To ask the Chancellor of the Exchequer when the review of the events leading up to Equitable Life's decision to close to new business and the role of the Financial Services Authority will be published; and if he will make a statement. [4584]

  Ruth Kelly
  I understand from the Financial Services Authority that the review team is not yet in a position to complete its report. I can confirm that it remains our intention to publish the report as soon as it is practicable.

HEALTH

  NHS (West Sussex)
  Mr. Soames
  To ask the Secretary of State for Health if he will make a statement on NHS structures in west Sussex. [2095]
  664W
  Ms Blears
  West Sussex health authority is committed to working in an integrated way with the whole of the national health service, stakeholders and local social services. The introduction of primary care trusts will further enable the health authority to work towards improved quality of services along with better value for money. Any substantive changes to NHS structures in west Sussex will be subject to full statutory consultation.

  "Information for Health"
  Mr. Todd
  To ask the Secretary of State for Health what assessment he has made of the cost of implementing "Information for Health"; from which budgets that cost will be funded; and if he will make a statement. [1968]

  Mr. Hutton
  "Information for Health" is an ambitious and far-reaching strategy for information technology investment in the national health service and investment in IT for the national health service is expected to grow by around £1.6 billion over the lifetime of the strategy up to 31 March 2004.

  This figure reflects national estimates of the sum of investment needed to deliver "Information for Health" and the IT components of the NHS plan. The majority of this investment will be made available to local health communities through health authority allocations. The allocations are intended as a guide for local health communities in ensuring that their own plans will meet the targets and milestones for implementing the NHS plan.

  Hospices
  Tony Worthington
  To ask the Secretary of State for Health (1) how many beds in hospices are available to the national health service; and what the figures were for each of the last 10 years; [1057]

  (2) what level of financial support is given per bed to hospices; and what estimate he has made of the cost to the national health service per bed of providing the same level of service itself; [1058]

  (3) what proportion of the costs of running hospices is met by (a) grants from the national health service and (b) charitable giving; and what the figures were in each of the past 10 years;[1059]

  (4) what guidelines he gives to NHS funding bodies about the level of support that should be given to hospices; [1060]

  (5) what plans he has to review policy on the relationship between the NHS and the hospice movement. [1061]

  Yvette Cooper
  [holding answer 2 July 2001]: The total number of beds separated into national health service specialist palliative care units and voluntary hospices for each of the past 10 years for the United Kingdom is shown in the table. All hospice beds are available to NHS patients.
  665W

  Date

  NHS units

  Beds

  Voluntary hospices

  Beds

  Total units

  Beds

  January 1991

  41

  525

  110

  2,037

  151

  2,562

  January 1992

  43

  522

  127

  2,236

  170

  2,758

  January 1993

  50

  573

  134

  2,286

  184

  2,859

  January 1994

  50

  573

  143

  2,399

  193

  2,972

  January 1995

  46

  533

  149

  2,485

  195

  3,018

  January 1996

  50

  557

  150

  2,468

  200

  3,025

  January 1997

  56

  595

  147

  2,458

  203

  3,053

  January 1998

  59

  605

  146

  2,474

  205

  3,079

  January 1999

  61

  622

  145

  2,445

  206

  3,067

  January 2000

  56

  600

  146

  2,469

  202

  3,069

  January 20W

  57

  607

  152

  2,480

  209

  3,087

  Source:

  Hospice Information Service

  In addition, the NHS collects information on the number of beds also provided by NHS trusts in wards classified as being for patients who are terminally ill or in need of palliative care in the annual publication 'Bed availability and occupancy—England', copies of which are available in the Library.

  It is for the NHS locally to make arrangements for financial support for hospices, given the extent of local diversity both of the services provided and of alternative sources of local support. Accordingly we have issued no guidance specifying a set percentage of revenue costs that individual health authorities and primary care organisations should meet. Successive guidance to health authorities has made clear their responsibilities for developing palliative care strategies based on the assessed health needs of the resident population.

  The National Council for Hospices and Specialist Palliative Care Services has estimated that total expenditure on hospice and specialist palliative care for adults is £300 million. Of this, £170 million is provided by the voluntary sector and £130 million through the NHS. Information on the NHS contribution to hospices over the past 10 years is not available.

  The NHS cancer plan set out our commitment to increase NHS investment in specialist palliative care by £50 million by 2004. This will mean that for the first time ever NHS investment in specialist palliative care services will match that of the voluntary sector. Health authority allocations in 2001–02 included a total of £255 million to support the first year of local implementation of the NHS cancer plan. Priorities for this year include the development of costed strategic plans for palliative care.

  Cancer networks are currently developing detailed service delivery plans, which will identify current position and set out action plans for further development across all services including palliative care. These will be completed by the autumn.

  Electricity Pylons and Telecommunications Masts
  Mr. Laurence Robertson
  To ask the Secretary of State for Health what recent research his Department has(a) commissioned and (b) evaluated into the possible health effects on people who live near (i) electricity pylons and (ii) telecommunications masts; and if he will make a statement. [1858]
  666W
  Yvette Cooper
  [holding answer 3 July 2001]: The Department obtains advice on potential health effects risks associated with electromagnetic fields (EMF), such as those from power lines or mobile phone masts, from the National Radiological Protection Board (NRPB).

  Power line EMF has been reviewed in a report published on 6 March by the NRPB' s Advisory Group on non-ionising radiation and provides an assessment of the potential risks of cancer. (Documents of the NRPB Vol. 12, No 1, 2001). Copies have been placed in the Library. The board of the NRPB also published a response statement which can be found on the NRPB website www.nrpb.org.uk. The report states that any possible risk of childhood leukaemia relates to those exposed at relatively high levels of domestic magnetic field exposure but that these are not necessarily associated with proximity to pylons or overhead power transmission lines. The conclusions indicate that the question of whether exposure to electromagnetic fields can influence the development of cancer cannot at present be completely resolved.

  Mobile phone base stations (transmission masts) emit radio waves at very different frequencies to those fields generated by power lines. They are therefore being dealt with as a separate issue. The possible public health implications of mobile phone technology has been investigated by the Independent Expert Group on Mobile Phones (the Stewart group). Its report, published in May 2000 concluded that:
  "the balance of evidence indicates that there is no general risk to the health of people living near to base stations on the basis that exposures are expected to be small fractions of guidelines."
  It also included a recommendation for a substantial research programme to be set up to investigate the possible effects of mobile phone technology more generally. A three year programme, jointly funded by Government and industry, has now been launched and has invited proposals relating to all aspects of mobile phone technology including telecommunications masts and handsets. The research is being undertaken under the direction of an independent programme management committee. Details can be found on the Department website www.doh.gov.uk/mobilephones.

  The Department is also continuing to provide financial support for the World Health Organisation International Electromagnetic Fields (EMF) Project which is comprehensively reviewing EMF effects, including those of power frequency fields and radio waves.
  667W

  Preston, Chorley and South Ribble Hospital Trust
  Mr. Hoyle
  To ask the Secretary of State for Health (1) what salary the new chief executive of Preston, Chorley and South Ribble Hospital Trust will receive; [2476]

  (2) who has been appointed chief executive of Preston, Chorley and South Ribble Hospital Trust; and if the post of Chief Executive was advertised; [2774]

  (3) how many meetings of the appointment panel took place before the decision was made to appoint a new chief executive of Preston, Chorley and South Ribble Hospital Trust. [2475]

  Mr. Hutton
  At their next public meetings in late July, the boards of Chorley, South Ribble and Preston Acute Hospitals National Health Service Trusts are expected to consider seeking ministerial approval to consult on a possible merger. There has been no formal approach to Ministers, or the Department. A paper, to be taken in public session, will also include a proposed job description for the proposed new joint chief executive.

  NHS Dentistry
  Mr. Kidney
  To ask the Secretary of State for Health what estimate he has made of the level of access to NHS dentistry by September. [2539]

  May 2001

  June 1997

  Health authority

  Number of over 12 month waiters

  Percentage of over 12 month waiters

  Number of over 12 month waiters

  Percentage of over 12 month waiters

  Hillingdon

  250

  6.0

  313

  5.9

  Kensington, Chelsea and Westminster

  99

  2.2

  134

  2.6

  Redbridge and Waltham Forest

  811

  8.0

  1,288

  9.1

  Bedfordshire

  725

  7.0

  293

  2.6

  Berkshire

  516

  3.6

  542

  3.7

  Buckinghamshire

  777

  5.7

  701

  4.9

  Croydon

  606

  8.8

  292

  3.4

  East Kent

  1,122

  6.8

  41

  0.3

  West Kent

  1,551

  6.6

  799

  3.1

  Kingston and Richmond

  448

  6.2

  442

  5.4

  Lambeth, Southwark and Lewisham

  1,603

  9.9

  2,301

  11.4

  Merton, Sutton and Wandsworth

  594

  5.9

  503

  4.1

  East Surrey

  754

  8.6

  417

  4.1

  West Surrey

  1,522

  10.5

  1,452

  8.9

  East Sussex, Brighton and Hove

  1,160

  6.1

  650

  3.2

  West Sussex

  1,816

  9.7

  1,672

  7.8

  Barking and Havering

  521

  5.1

  460

  4.0

  Brent and Harrow

  439

  5.3

  717

  6.3

  Camden and Islington

  263

  4.4

  221

  2.5

  Ealing, Hammersmith and Hounslow

  726

  5.3

  1,549

  9.9

  East London and the City

  536

  4.5

  691

  4.9

  North Essex

  1,331

  6.4

  1,010

  4.1

  South Essex

  493

  2.9

  202

  1.1

  South Lancashire

  258

  3.2

  432

  4.4

  Liverpool

  504

  4.7

  683

  5.3

  Manchester

  697

  6.1

  891

  7.2

  Morecambe Bay

  183

  2.7

  101

  1.4

  St. Helens and Knowsley

  319

  3.4

  345

  3.5

  Salford and Trafford

  849

  6.7

  763

  5.6

  Sefton

  287

  3.9

  521

  5.7

  Stockport

  248

  3.5

  264

  3.6

  West Pennine

  285

  2.3

  235

  1.7

  Northamptonshire

  623

  4.5

  460

  3.1

  Oxfordshire

  487

  4.5

  842

  7.3

  Suffolk

  617

  4.0

  618

  3.7

  Barnsley

  18

  0.4

  104

  2.1

  668W
  Ms Blears
  In September 1999 my right hon. Friend the Prime Minister promised that within two years everyone will be able to access national health service dentistry if and when they want it via NHS Direct. All health authorities now have in place dentistry action plans to ensure that everyone in the local area can access NHS dentistry if they want it within a reasonable time and distance.

  Waiting Lists
  Virginia Bottomley
  To ask the Secretary of State for Health how many and what percentage of patients waiting for in-patient treatment have been waiting for more than one year(a) at the latest date available and (b) in May 1997 in each health authority. [2834]

  Mr. Hutton
  The information requested is shown in the table. Waiting time information was not collected on a monthly basis in 1997 and so we have provided figures for the nearest date for which we have data.

  In 1997 we promised to reduce waiting lists by 100,000. We have done this and today there are 125,000 fewer patients waiting for in-patient treatment than when we came into power. We are going to build on this. As part of our NHS Plan the National Health Service is working to reduce the maximum waiting time for admission to hospital from 18 months today to six months by the end of 2005. By the same date the maximum waiting time for an out-patient appointment will be reduced from over six months today to three months.
  669W

  May 2001

  June 1997

  Health authority

  Number of over 12 month waiters

  Percentage of over 12 month waiters

  Number of over 12 month waiters

  Percentage of over 12 month waiters

  North Derbyshire

  55

  0.7

  1,204

  11.0

  Southern Derbyshire

  212

  1.7

  663

  5.3

  Doncaster

  9

  0.2

  47

  0.8

  Leicestershire

  364

  2.3

  371

  2.2

  Lincolnshire

  561

  3.6

  1,767

  8.7

  North Nottinghamshire

  60

  0.8

  269

  2.9

  Nottingham

  195

  1.8

  1,122

  8.1

  Rotherham

  8

  0.2

  119

  2.4

  Sheffield

  60

  0.6

  724

  6.1

  Bury and Rochdale

  258

  2.8

  162

  1.6

  North Cheshire

  717

  8.2

  269

  2.9

  South Cheshire

  622

  4.4

  978

  5.6

  East Lancashire

  154

  1.2

  109

  0.8

  North West Lancashire

  171

  1.5

  262

  2.0

  North and Mid Hampshire

  530

  5.0

  402

  3.7

  Southampton and South West Hampshire

  1,011

  7.3

  1,252

  7.7

  Somerset

  357

  3.1

  91

  0.8

  South and West Devon

  783

  5.8

  101

  0.7

  Wiltshire

  745

  6.0

  779

  5.5

  Avon

  1,436

  6.8

  1,689

  7.1

  Birmingham

  238

  1.6

  55

  0.3

  Wigan and Bolton

  484

  3.6

  378

  2.3

  Wirral

  128

  2.5

  89

  1.5

  Bradford

  88

  0.8

  564

  5.0

  County Durham and Darlington

  94

  0.8

  66

  0.5

  East Riding and Hull

  321

  2.8

  475

  3.7

  Gateshead and South Tyneside

  43

  0.6

  138

  1.5

  Leeds

  367

  2.6

  249

  1.7

  Newcastle and North Tyneside

  112

  1.5

  207

  2.2

  North Cumbria

  188

  2.6

  312

  3.5

  South Humber

  37

  0.5

  893

  9.1

  Northumberland

  56

  1.1

  65

  1.1

  Sunderland

  38

  0.6

  29

  0.4

  Tees

  104

  1.0

  17

  0.1

  Wakefield

  173

  2.5

  220

  2.7

  North Yorkshire

  168

  1.3

  170

  1.1

  Calderdale and Kirklees

  148

  1.3

  142

  1.2

  Cornwall and Isles of Scilly

  685

  5.4

  200

  1.6

  Dorset

  12

  0.1

  4

  0.0

  North and East Devon

  689

  6.2

  425

  3.5

  Gloucestershire

  131

  1.6

  45

  0.5

  Coventry

  77

  1.6

  10

  0.2

  Dudley

  80

  1.6

  16

  0.3

  Herefordshire

  107

  3.8

  85

  2.7

  Sandwell

  28

  0.6

  3

  0.1

  Shropshire

  280

  3.8

  19

  0.3

  Solihull

  21

  0.6

  8

  0.3

  North Staffordshire

  225

  4.0

  200

  2.9

  South Staffordshire

  721

  5.8

  64

  0.5

  Walsall

  27

  1.0

  7

  0.2

  Warwickshire

  73

  0.7

  21

  0.2

  Wolverhampton

  43

  1.2

  92

  1.8

  Worcestershire

  414

  4.3

  111

  1.2

  Cambridgeshire

  603

  4.2

  1—

  1—

  Norfolk

  994

  5.3

  1—

  1—

  Isle of Wight, Portsmouth and South East Hampshire

  1,040

  7.0

  1—

  1—

  Barnet, Enfield and Haringey

  1.040

  6.7

  1—

  1—

  Hertfordshire

  1,353

  6.5

  1—

  1—

  Bexley, Bromley and Greenwich

  839

  6.2

  1—

  1—

  1 These health authorities did not exist in 1997

  Source:

  QF01 quarterly returns

  Hip and Knee Replacements
  Paul Flynn
  To ask the Secretary of State for Health how many(a) hip replacement and (b) knee replacement operations required revision operations in each of the past 10 years. [2375]
  670W
  Mr. Hutton
  [holding answer 9 July 2001]: The table shows the data for in-patient episodes for hip and knee revisions in national health service hospitals in England, from 1989–90 to 1999–2000, the latest year for which figures are available.
  671W

  Year

  All hip

  Hip revision

  Percentage revision

  All knee

  Knee revision

  Percentage revision

  1990–91

  49,659

  5,336

  10.7

  14,150

  701

  5.0

  1991–92

  55,396

  5,602

  10.1

  17,348

  780

  4.5

  1992–93

  57,377

  5,628

  9.8

  19,999

  971

  4.9

  1993–94

  58,643

  5,256

  9.0

  22,669

  988

  4.4

  1994–95

  62,511

  5,662

  9.1

  25,342

  1,202

  4.7

  1995–96

  65,636

  6,436

  9.8

  29,550

  1,298

  4.4

  1996–97

  63,527

  6,416

  10.1

  26,877

  1,390

  5.2

  1997–98

  62,394

  6,273

  10.1

  27,410

  1,439

  5.2

  1998–99

  68,025

  6,853

  10.1

  31,919

  1,573

  4.9

  1999–2000

  68,920

  6,350

  9.2

  33,007

  1.557

  4.7

  Tinnitus
  Dr. Gibson
  To ask the Secretary of State for Health what resources have been allocated to research into the(a) causes, (b) symptoms, (c) detection and (d) treatments of tinnitus in each of the last five years. [2864]

  Mr. Hutton
  The Department funds research to support policy and the delivery of effective practice in the national health service. The Department also provides NHS support funding for research commissioned by the Medical Research Council and charities that takes place in the NHS. The Department has provided or is providing such funding for five ongoing projects relating to tinnitus and 21 completed projects. Details of these projects can be found on the National Research Register which is available in the Library on CD Rom, or via the internet at www.doh.gov.uk/research/nrr/htm.

  The main Government agency for research into the causes of and treatments for diseases is the MRC which receives its funding via the Department of Trade and Industry. The MRC spent £755,000 specifically on tinnitus research in 1996–97 and £875,000 in 1997–98. In 1998–99 the MRC spent £3.49 million on hearing research in general and £3.34 million in 1999–2000, some of which would be relevant to tinnitus.

  Correspondence
  Mr. Kaufman
  To ask the Secretary of State for Health, consequent on his letter dated 6 June to the right hon. Member for Manchester, Gorton (1) with regard to Mr. Stephen Holden, if he will now obtain for the right hon. Member the promised reply from the chairman of the Central Manchester and Manchester Children's University Hospitals NHS Trust; [3152]

  (2) with regard to Mr. Robert McDonald, if he will obtain for the right hon. Member the promised response from the chairman of the Central Manchester and Manchester Children's University Hospitals NHS Trust. [3153]

  Ms Blears
  I understand that Mr. Peter Mount, chairman of the Central Manchester and Manchester Children's University Hospitals National Health Service Trust wrote to my right hon. Friend on 21 June and 6 July in respect of his constituents Mr. Stephen Holden and Mr. Robert McDonald.

  Mr. Burns
  To ask the Secretary of State for Health when the hon. Member for West Chelmsford can expect a reply to his letter of 9 April relating to his constituent Mr. P. Arnill of Lavender House, Dragon road, Great Leighs; and if he will make a statement on the factors underlying the delay in replying. [3571]
  672W
  Ms Blears
  The Department has not received a copy of the hon. Member's letter of the 9 April relating to his constituent Mr. P. Arnill.

  Core Targets
  Mr. Lidington
  To ask the Secretary of State for Health when he intends to notify NHS trusts of the traffic light indicators for core targets against which their performance will be judged in the financial year 2001–02. [3221]

  Mr. Hutton
  National health service trusts will be advised of the specific targets that will be used to traffic light 2001–02 performance later this year.

  Ritalin
  Mrs. May
  To ask the Secretary of State for Health what studies his Department has(a) undertaken and (b) commissioned on the impact of Ritalin on the long-term health of children. [3018]

  Yvette Cooper
  [holding answer 10 July 2001]: The Department funded a research project entitled "Working memory in children with Attention Deficit Hyperactivity Disorder (ADHD): the impact of methylphenidate (Ritalin)", by Dr. Kim Cornish of the Department of Child and Adolescent Psychiatry at the University of Nottingham, at a cost of £26,585. The final report was received by the Department in April 2001 and has been submitted by Dr. Cornish to journals for publication.

  The Department funds research to support policy development in health and social care, and to support effective practice in the national health service. The Department also provides NHS support funding for research commissioned by the Medical Research Council (MRC) and by charities where this takes place in the NHS. The Department has provided or is providing such funding for six other recently completed projects and five other ongoing projects relating to Ritalin. Details of these projects can be found on the National Research Register which is available in the Library on CD Rom, and on the internet via http:\\www/doh.gov.uk/research.

  As with all medicines, the safety of Ritalin is continually monitored by the Medicines Control Agency and by the Committee on Safety of Medicines, an independent expert advisory body.

  The MRC is the main agency through which we fund research on the causes and treatment of disease. The MRC receives most of its income via grant-in-aid from my right hon. Friend the Secretary of State for Trade and Industry, via the Office of Science and Technology. The MRC funds projects on ADHD but is not funding currently any

  673W
  research specifically into Ritalin. The MRC always welcomes high quality applications for research into any aspect of human health and these are judged in competition with other demands for funding. Awards are made according to the scientific quality and importance to health of the applications.

  Cancer Drugs
  Sandra Gidley
  To ask the Secretary of State for Health what assessment he has made of the clinical implication of a delay in Herceptin treatment of women with breast cancer who over express the HER 2 marker. [3266]

  Dr. Evan Harris
  To ask the Secretary of State for Health (1) what assessment he has made of the clinical implication of a delay in the use of Irinotecan, Oxaliplatin and Raltitrexed in the treatment of advanced colorectal cancer, at(a) first-line and (b) second-line; [3286]

  (2) what assessment he has made of the clinical implication of a delay in the use of Rituximab for the treatment of follicular lymphoma. [3276]

  Yvette Cooper
  [holding answer 11 July 2001]: The National Institute of Clinical Excellence (NICE) has been asked to evaluate each of these drugs, and to assess their clinical and cost-effectiveness in the treatment of advanced breast cancer, advanced colorectal cancer and follicular lymphoma.

  NICE will base its recommendations on the evidence of clinical benefits—including the impact on the quality of life as well as the likely effects on mortality, and estimates of the associated costs.

  It will consider which, if any, of those patients diagnosed with these particular cancers will benefit from these new drugs. The publication dates for guidance on all of these drugs are to be confirmed. If NICE makes a positive recommendation all health authorities will be expected to fund these treatments from the additional £255 million available to them for cancer services in 2001–02.

  Dr. Evan Harris
  To ask the Secretary of State for Health what estimate he has made of the number of people with follicular lymphoma that are being denied Rituximab for the treatment of their disease. [3278]

  Yvette Cooper
  [holding answer 11 July 2001]: Follicular lymphoma is one of a diverse group of cancers known as non-Hodgkins lymphomas (NHLs). NHLs account for about 2 per cent. of all cancers. There are about 9,000 people diagnosed with NHLs in the United Kingdom each year.

  The National Institute for Clinical Excellence is evaluating and assessing the clinical and cost-effectiveness of Rituximab in the treatment of follicular lymphoma. If they recommend its use the guidance will make clear which of those patients diagnosed with follicular lymphoma should benefit from it.

  Nurses
  Mr. Frank Field
  To ask the Secretary of State for Health how many nurses employed in the NHS for the first time in each of the past 12 months have(a) had a contract with an employment agency and (b) been other nurses. [3849]
  674W
  Mr. Hutton
  Figures from the Department for the expenditure on agency nurses in 1999–2000 are available in the Library. Information on the number of nurses employed in the national health service for the first time are not held centrally but may be available from individual NHS employers.

TRADE AND INDUSTRY

  Gas
  Mr. Chaytor
  To ask the Secretary of State for Trade and Industry what assessment he has made of the potential increase in the market for gas arising from the expansion of the gas network. [2299]

  Mr. Wilson
  Approximately 20 per cent. of households do not have access to gas. The Government, Ofgem and the industry are currently working to facilitate the extension of the network. It is not yet clear how many households will be able to benefit from this work. However the Government hope that as many as possible will have access to the gas network.

  Energy Policy Review
  Dr. Cable
  To ask the Secretary of State for Trade and Industry if she will publish the detailed terms of reference of the Government's review of energy policy. [2352]

  Mr. Wilson
  The Performance and Innovation Unit has posted a note of the scope of the project on its website, which can be found at www.cabinet-office.gov.uk/ innovation.

  Dr. Cable
  To ask the Secretary of State for Trade and Industry how she proposes to evaluate and measure the benefits of security of supply in the Government's energy review. [2354]

  Mr. Wilson
  Security of supply is a key element of the energy review currently being undertaken by the Performance and Innovation Unit (PIU). The PIU has published a note of the scope of the review on its website and will be publishing further papers as its work develops.

  Dr. Cable
  To ask the Secretary of State for Trade and Industry if the assessment of nuclear power in the Government's energy review will incorporate the full life cycle costs of decommissioning and waste disposal. [2353]

  Mr. Wilson
  The review of energy policy will be considering what role, if any, the nuclear industry should play in meeting longer term environmental and security of supply objectives. As with other energy sources, the review will take into account all costs which are relevant to these longer-term questions.

  Industrial Diseases
  Mr. Cummings
  To ask the Secretary of State for Trade and Industry how many interim payments were offered in respect of claims for chronic bronchitis and emphysema by area and by month since 1999. [2778]

  Mr. Wilson
  The number of interim payments made to chronic bronchitis and emphysema claimants since 1 January 1999, broken down by area, are as follows.
  675W

  Date

  England

  Wales

  Scotland

  Total

  Pre-December 1998

  6,739

  2,809

  972

  10,520

  1999

  January

  483

  87

  65

  635

  February

  170

  53

  31

  254

  March

  556

  102

  31

  689

  April

  360

  95

  15

  470

  May

  396

  76

  33

  505

  June

  320

  76

  13

  409

  July

  312

  94

  44

  450

  August

  254

  68

  7

  329

  September

  257

  143

  0

  400

  October

  293

  146

  6

  445

  November

  260

  139

  11

  410

  December

  379

  119

  2

  500

  2000

  January

  404

  166

  8

  578

  February

  411

  216

  40

  667

  March

  526

  172

  20

  718

  April

  418

  103

  44

  565

  May

  425

  71

  61

  557

  June

  361

  158

  60

  579

  July

  541

  150

  49

  740

  August

  461

  137

  42

  640

  September

  486

  111

  44

  641

  October

  434

  156

  90

  680

  November

  406

  177

  64

  647

  December

  762

  337

  77

  1,176

  2001

  January

  568

  263

  92

  923

  February

  593

  236

  155

  984

  March

  762

  290

  124

  1,176

  April

  718

  247

  149

  1,114

  May

  1,600

  562

  174

  2,336

  June

  2,271

  800

  145

  3,216

  Total

  22,926

  8,359

  2,668

  33,953

  Mr. Cummings
  To ask the Secretary of State for Trade and Industry how many widows' claims are outstanding in respect of their late husbands' claims for chronic bronchitis and emphysema, broken down by area and month since 1999. [2773]

  Mr. Wilson
  I regret that IRISC, the Department's handler, is unable to provide figures as to the number of widow's claims outstanding by region and by month since 1999 in the time given.

  However, I can confirm the IRISC has registered 54,938 claims in respect of miners' widows and families, to date. Of these, so far the Department has paid almost 6,000 bereavement and loss of society awards.

  In May 2001, an initiative was agreed to make an interim payment of £2,000 to widows who have received a bereavement award, subject to certain conditions. The Department has, to date, made 1,932 of these awards.

  In total, 13,600 interims and final settlements have been paid to miners' families, amounting to £65.8 million.

  Mr. Cummings
  To ask the Secretary of State for Trade and Industry what is his estimate of the time which will be taken to settle all claims for(a) chronic bronchitis and emphysema and (b) vibration white finger. [2776]
  676W
  Mr. Wilson
  It is difficult to say when all compensation claims for both respiratory disease and vibration white finger, VWF will be settled, not least because new claims are still being received.

  With regard to respiratory disease, there are currently 153,200 claims registered and 900 new claims continue to be initiated each week. To date, almost 124,000 claims for VWF have been registered, with an approximate weekly increase of 330 claims per week. While the number of claims continue to increase, the Department is unable to provide, with accuracy, an estimate of the time taken to settle claims.

  Mr. Cummings
  To ask the Secretary of State for Trade and Industry what was the average length of time taken from an interim payment in respect of a claim for chronic bronchitis and emphysema being offered to payment being received, broken down by area in each of the last three years. [2779]

  Mr. Wilson
  Under the respiratory disease handling agreement signed between the Department and the claimants' solicitors, the Department makes the following interim payment:

  1. an interim payment of £2,000 is made upon provision by a claimant to IRISC of verification of receipt of the Industrial Injuries Benefit, PD D12, subject to confirmation of the number of years of underground work as set out in the handling agreement;

  2. a bereavement award is payable to the widow upon production of a death certificate for their husband citing one of eight descriptors;

  3. when a claimant has attended an appointment to undergo the medical assessment process, MAP, and the report has shown that the claimant is exhibiting symptoms of injuries British Coal is liable for the IRISC, the Department's claims handler, is unable to make an offer in full and final settlement, an interim will be made;

  4. interim payments arc made upon completion of screening spirometry with a tariff agreed with the claimants' solicitors in accordance with the criteria set out in the handling agreement.

  The majority of these are made directly by issuing a cheque rather than making an offer and waiting for acceptance. The only interim where there is a prior offer stage is the one in respect of an initiative agreed in May 2001 to make a £2,000 interim to widows in receipt of a bereavement award. The payment of this award is dependent on a response from the claimant and subject to certain criteria. The payment of this interim is also dependent on IRISC, the Department's claims handler, being in receipt from the claimants' solicitors of the requisite documents to ensure that payment is made to the right individual, as determined by the grant of probate. I regret that the Department is unable to provide figures for the turnaround time of these interims broken down by area. This depends, among other things, on the time of responses from the claimant. However, I can confirm that once IRISC is in receipt of the necessary documents, the average length of time taken to making a payment is 1.5 weeks.

  Mr. Cummings
  To ask the Secretary of State for Trade and Industry what steps he is taking to improve the
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  process for claimants suffering from chronic bronchitis and emphysema and who have made a claim for compensation in the north-east area. [2777]

  Mr. Wilson
  The key to speeding up the compensation process in the north-east lies in the recruitment of more respiratory specialists.

  Healthcall, the company contracted to deliver the medical assessment, will move resources to areas where the rate of MAP assessments is unsatisfactory, such as the north-east. Recently, a specialist has been employed in a full time capacity in the north-east and a further specialist has been identified who is prepared to travel from Scotland to work in the Newcastle and Durham area.

  Healthcall are also installing extra long function testing equipment at the centre in Durham to increase the rate of assessments still further. The use of one or both of the mobile testing centres in the area is also being investigated.

  Nuclear Power Stations
  Mr. Paul Marsden
  To ask the Secretary of State for Trade and Industry if he will make a statement on phasing out nuclear power stations. [2788]

  Mr. Wilson
  As with other electricity generation options, decisions on station lifetimes are a commercial matter for the generating companies subject to the necessary authorisation by NII. It is expected that existing nuclear stations will continue to contribute to the country's energy requirements and to the reduction of CO2 emissions for as long as the companies consider it economic for them to do so and provided they meet the high safety and environmental standards required.

  Solar Power
  Mr. Kidney
  To ask the Secretary of State for Trade and Industry what assessment she has made of the contribution that solar power can make to meeting the United Kingdom's energy needs. [2538]

  Mr. Wilson
  Solar power is a technology with significant longer-term potential in helping to meet the UK's energy needs.

  With a view to bringing forward this technology's potential, we are supporting a range of initiatives such as domestic and large-scale commercial field trials plus the first phase of a major PV roofs programme aimed, in time, at matching those in Germany and Japan.

  Weights and Measures Act
  Ian Lucas
  To ask the Secretary of State for Trade and Industry when she proposes to introduce the changes outlined in the public consultation paper on proposed legislative changes under the Weights and Measures Act 1985 issued in December 2000. [2822]

  Miss Melanie Johnson
  [holding answer 11 July 2001]: The responses to the consultation document are under consideration.
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FOREIGN AND COMMONWEALTH AFFAIRS

  Lord Ashcroft
  Matthew Taylor
  To ask the Secretary of State for Foreign and Commonwealth Affairs on what date his Department received a request for documents under the Data Protection Act 1998 from Lord Ashcroft; and on what date his Department replied to the request. [1000]

  Mr. MacShane
  Under the non-disclosure provisions of the Data Protection Act 1998 it is not appropriate to disclose personal data except to the data subject concerned.

  Zimbabwe
  Mrs. Gillan
  To ask the Secretary of State for Foreign and Commonwealth Affairs what representations he has made regarding the decision by the Zimbabwean authorities not to extend the work permit of the reporter David Blair. [2716]

  Mr. Bradshaw
  In his statement of 27 June, the Foreign Secretary expressed concern at the Zimbabwe Government's decision not to renew David Blair's work permit and expressed his hope that the Government of Zimbabwe would reconsider their decision.

  Turkey
  Mr. Dismore
  To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the effect of Turkey's ban of the Virtue Party on Turkey's prospects of joining the EU; and if he will make a statement. [2982]

  Peter Hain
  We are concerned at the Turkish Constitutional Court's decision to order the closure of Fazilet. The decision has worrying implications for democratic pluralism and freedom of expression in Turkey. The EU statement of 25 June (available on the internet at http://ue.eu.int/newsroorn/main.cfm?LANG=1) expressed this concern. Turkey (like all other candidates) must meet the Copenhagen political criteria before beginning negotiations to join the European Union.

  Diplomatic Missions
  Mrs. Humble
  To ask the Secretary of State for Foreign and Commonwealth Affairs if he will list the names of diplomatic missions in the United Kingdom that owed more than £10,000 at 4 April in respect of national non-domestic rates for office premises. [4525]

  Mr. Straw
  Most diplomatic missions in the United Kingdom meet their obligations and pay the national non-domestic rates requested from them. However, as at 4 April 2001 the following missions owed over £10,000 in respect of national non-domestic rates (NNDR):

  Country

  £

  Nigeria

  339,925.44

  Iran

  105,827.16

  Sierra Leone

  66,246.88

  Yugoslavia

  46,638.87

  Algeria

  39,844.82

  Ivory Coast

  33,303.54

  Mozambique

  30,564.99

  Jordan

  29,048.13

  679W

  Country

  £

  Cameroon

  24,583.30

  Egypt

  23,925.02

  Uganda

  21,985.39

  Libya

  21,358.92

  Bangladesh

  16,131.99

  Democratic Republic of Congo

  15,765.48

  Senegal

  12,253.02

  Total

  827,402.95

  Eight additional diplomatic missions who owe £10,000 more in respect of national non-domestic rates have made arrangements with the Valuation Office Agency to clear their outstanding debts and have not been included in this list. The total amount outstanding from all missions, including these additional diplomatic missions, is approximately £1,480,218.62.

  Mrs. Humble
  To ask the Secretary of State for Foreign and Commonwealth Affairs how many outstanding parking and other minor traffic violation fines were incurred by diplomatic missions and international organisations in the United Kingdom during the year ending 31 December 2000. [4526]

  Mr. Straw
  At the end of 2000, unpaid fines in respect of parking and other minor traffic violations incurred by diplomatic missions and international organisations in the United Kingdom totalled 5,889. In May this year the Foreign and Commonwealth Office wrote to all diplomatic missions and international organisations in the United Kingdom giving them the opportunity to either pay their outstanding fines or appeal against them if they considered that they had been issued incorrectly. As a result payments totalling £81,120.00 were received, leaving a total of 3,936 unpaid fines for 2000. The table details those diplomatic missions and international organisations that have more than 10 fines outstanding.

  Unpaid parking and minor traffic violation fines—2000—diplomatic vehicles

  Position/diplomatic mission/international organization

  Number of fines outstanding

  1. Nigeria

  1,084

  2. United Arab Emirates

  272

  3. Egypt

  148

  4. Qatar

  145

  5. Iran

  114

  6. Ghana

  104

  7. Turkey

  96

  8. Saudi Arabia

  82

  9. Ethiopia

  74

  10. France

  69

  10. Oman

  69

  10. Ukraine

  69

  11. Greece

  68

  12. Algeria

  59

  13. China

  57

  14. Cyprus

  55

  14. Jordan

  55

  14. Mongolia

  55

  14. Morocco

  55

  15. Hungary

  48

  15. Malaysia

  48

  16. Mozambique

  47

  17. Georgia

  45

  18. Russia

  44

  18. United States of America

  44

  19. Poland

  41

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  Unpaid parking and minor traffic violation fines—2000–diplomatic vehicles

  Position/diplomatic mission/international organisation

  Number of fines outstanding

  20. Kenya

  40

  21. Cuba

  38

  22. Kazakhstan

  34

  23. Tunisia

  33

  24. Brunei

  32

  25. Uganda

  29

  26. Indonesia

  26

  26. Zambia

  26

  26. Zimbabwe

  26

  27. Romania

  25

  28. Albania

  24

  28. Yemen

  24

  29. Pakistan

  23

  29. Commonwealth Secretariat

  23

  30. Bangladesh

  22

  30. Philippines

  22

  31. Afghanistan

  21

  31. Namibia

  21

  32. Lithuania

  18

  33. Cote D'Ivoire

  16

  34. Peru

  15

  34. Sudan

  15

  35. Cameroon

  14

  35. Italy

  14

  36. Portugal

  13

  36. Uzbekistan

  13

  37. Bahrain

  12

  37. Germany

  12

  3,678

  Libya (Export Licence)
  Mr. Ronnie Campbell
  To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the issuing of an export licence in September 2000 for a military-listed chemical to Libya. [4585]

  Mr. Bradshaw
  In September 2000 the Government inadvertently issued a licence for a small quantity of military listed chemical to Libya. This was technically in breach of the UK interpretation of the EU arms embargo on Libya. The chemical was for use in the laboratory analysis of water and sewage samples. The goods have now been exported and the licence has been returned as exhausted. As a result of the error we have revised assessment procedures of export licence applications to embargoed destinations. The Government continue to support the EU arms embargo on Libya.

  Malaysia
  Richard Ottaway
  To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the arrest under the Internal Security Act of the President of the Student Council, University of Malaysia, Mohamad Fuad Mohd Ikhwan. [3746]

  Mr. Bradshaw
  Mohamad Fuad Mohd Ikhwan was detained under the Internal Security Act (ISA) on 6 July. We are concerned at the recent use of this Act, which provides for detention without trial. We hope that all those detained under the ISA will be either charged or released. We and our EU partners continue to monitor the developments closely and take up the issue with the Malaysian authorities on suitable occasions.
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PRESIDENT OF THE COUNCIL

  Members' Salaries
  Mr. Andrew Turner
  To ask the President of the Council which grades of staff receive a salary broadly equivalent to that of an hon. Member in(a) the medical profession in hospitals, (b) general practice, (c) teaching, (d) local government, (e) civil service and (f) the armed forces. [3743]

  Mr. Robin Cook
  Details of salary comparisons with other public sector groups are illustrated in Volume 2 of the Senior Salaries Review Body's report on parliamentary pay and allowances (Cm 4997). Copies of the Report are available in both the House of Commons Library and Vote Office.

  The salary recommendation of the review body sought to ensure a broad equivalence to salaries for a major director in a district general hospital, a head of a large secondary school, a director in a district council or assistant director in a large unitary or county council, lower graded members of the Senior Civil Service and battalion commanders.

EDUCATION AND SKILLS

  Connexions
  Mrs. May
  To ask the Secretary of State for Education and Skills (1) if the Connexions Service will offer a personal adviser to young people with learning disabilities, and what arrangements will be in place to ensure that the Connexions Service provides support to young people with mental and physical disabilities; [3126]

  (2) what the upper age limit is at which a young person can be in receipt of the services of a personal adviser under the Connexions Service; and if this limit will also apply to young people with learning disabilities. [3127]

  Mr. Ivan Lewis
  [holding answer 9 July 2001]: The Connexions Service will provide access to a personal adviser to all young people aged 13–19, including those with learning difficulties and/or disabilities. The personal adviser will provide advice, guidance, support and personal development opportunities based on each individual young person's needs, drawing on specialist services as necessary.

  The Connexions Service will be required to arrange assessments for those with statements of special educational needs in the last year of compulsory schooling who intend to leave school, but continue in learning. The service will also have the power to arrange for assessments in other circumstances where they feel it would be beneficial, eg for young people with SEN, but without statements. These responsibilities are designed to ensure more effective transitions for young people with SEN on leaving school and moving through post-16 learning.
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  To build on this, the Connexions Service will, in partnership with local agencies, continue to support young people with learning difficulties and/or disabilities up to their 25th birthday if they are not ready to access the adult services provided locally.

  Asset Management Plans
  Mr. Willis
  To ask the Secretary of State for Education and Skills when the results of the asset management plans will be published. [3361]

  Mr. Timms
  The Department has been validating local education authorities' asset management plan information and intends to publish analyses of the data in the autumn. This will include information on authorities' repair and maintenance needs.

  Further Education
  Mr. Boswell
  To ask the Secretary of State for Education and Skills when he last met representatives of further education colleges to discuss their funding and staffing situation; and if he will make a statement. [3190]

  John Healey
  [holding answer 11 July 2001]: The Secretary of State has not met representatives of further education colleges as yet but my hon. Friend the Minister for Lifelong Learning met with Mr. David Gibson from the Association of Colleges on 25 June, and I met Mr. Gibson on 12 July.

  Swimming
  Mr. Greenway
  To ask the Secretary of State for Education and Skills if she will make it her policy to ensure that all school children have access to a swimming pool on a weekly basis. [3485]

  Mr. Timms
  [holding answer 12 July 2001]: Swimming is a compulsory part of the National Curriculum for Physical Education at Key Stage 2, unless pupils have met the full Key Stage 2 requirements during Key Stage 1. After Key Stage 2 it remains one of six areas of physical activity. The Ofsted report on swimming at Key Stage 2, published in November 2000, showed that well over four out of five schools inspected provided adequate time for swimming and four out of five children are able to swim 25m at the end of Key Stage 2. We acknowledge, however, that we need to work more with schools to make even more opportunities available for more children to be able to swim 25m by the time they reach secondary school.

  Swimming and water safety are important life skills. We are investing heavily in school sport and swimming will benefit. The Government's commitment includes £581 million in England (out of a total of £750 million in the UK) from the New Opportunities Fund for school sport facilities.

  We have established a Swimming Advisory Group, involving, as well as my Department, representatives of the swimming associations, Ofsted, the Qualifications and Curriculum Authority and the Department for Culture, Media and Sport, to discuss what more can be done to create even more opportunities for children to swim and announce proposals by the end of the year.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Foot and Mouth
  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs if she will publish the foot and mouth contingency plan which was deposited with the EU and OIE. [789]

  Mr. Morley
  The contingency plan for Great Britain was submitted to the EU for approval in 1991 and approved in 1993. An updated version was sent to the EU in July 2000. This plan is very much an outline strategy which in turn is supported by detailed veterinary instructions and regional contingency plans.

  A copy of the July 2000 version of the GB contingency plan was placed in the Libraries of the House on 14 May 2001 and it will also shortly be available on the DEFRA foot and mouth disease website http://www.defra.gov.uk/,omitting names and personal telephone numbers on the grounds of confidentiality.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs how many farms in Cumbria have had sheep slaughtered in the voluntary cull; and how many sheep were slaughtered. [795]

  Mr. Morley
  Livestock in Cumbria were culled only where, in the opinion of the Chief Veterinary Officer, the animals had been exposed to the foot and mouth virus. Computer records show that in the cull of animals within 3 km of infected premises in Cumbria, 503,545 sheep were slaughtered on 1,732 farms.

  Mr. Evans
  To ask the Secretary of State for Environment, Food and Rural Affairs how many animals on infected and contiguous premises have been culled in the Ribble Valley as a result of the foot and mouth outbreak. [1078]

  Mr. Morley
  The information is not available in the format requested. The Settle associated cluster includes the Ribble Valley and an additional area to the east currently extending as far as Ilkley. To subdivide the area as requested would incur disproportionate cost.

  £million

  Cost to date

  Estimated total cost

  Temporary Veterinary Inspectors and Local Veterinary Inspectors (ie not full time employees of the Department)

  4.8

  22.0

  Disposal/haulage (incl. rendering and pyres)

  104.6

  172.6

  Carcase disposal sites

  4.2

  8.5

  Travel and subsistence (incl. accommodation and mileage)

  8.4

  9.0

  Slaughtermen

  9.7

  10.7

  Reinstatement and cleansing and disinfection (incl. contractors)

  57.9

  863.0

  Protective clothing and other consumables

  7.5

  8.0

  197.1

  1,093.8

  Note:

  Taken from FMD estimated costs, 9 July 2001

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs what biosecurity measures were implemented during farm to farm milk tanker collections affected by foot and mouth restrictions. [2173]
  684W
  The table shows the number of animals slaughtered on infected and contiguous premises in the Settle associated cluster.

  Numbers of animals slaughtered in the Settle associated cluster (as at 9 July)

  Infected premises

  Contiguous premises

  Total

  Cattle

  12,664

  24,727

  37,391

  Pigs

  56

  89

  145

  Sheep

  54,020

  154,213

  208,233

  Goats

  8

  61

  69

  Total

  66,748

  179.090

  245,838

  Mr. Gordon Prentice
  To ask the Secretary of State for Environment, Food and Rural Affairs what criterion she uses to determine the areas of infection covered by the declaratory order; for foot and mouth. [1488]

  Mr. Morley
  [holding answer 2 July 2001]: When a case of foot and mouth disease is confirmed, an infected area with boundaries which are at least 10 km from the infected place has to be designated by a declaratory order. The boundaries may extend beyond the statutory minimum for disease control purposes and because, in order to simplify identification, they are determined by clear geographical features, such as roads or railway lines. Declaratory orders for England and Wales are made by my Department and a map depicting the infected area may be inspected in the DEFRA office at 1A Page street, London between 9 am and 5 pm, Monday to Friday. The maps are also reproduced on the DEFRA website.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs how much it cost to dispose of slaughtered animals in the eradication of foot and mouth disease, broken down by(a) veterinary bills, (b) transport, (c) accommodation, (d) fuel and materials for pyres, (e) land access for burial, (f) contractors and slaughtermen, (g) machinery hire, (h) wagon transport, (i) consumables and (j) rendering. [2193]

  Mr. Morley
  The information is not available in the form requested. The table shows costs to date and estimated costs (as at 9 July) for the categories that most closely correspond to those about which the right hon. Member has asked.

  Mr. Morley
  The Code of Practice for Hauliers and Buyers of Milk (drawn up under the Foot and Mouth Disease Order 1983 and revised in March 2001) lays down the measures that must be followed by milk hauliers and dairy personnel who are involved in the collection and
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  transport of untreated milk originating from dairy farms in a foot and mouth disease infected area or from other farms known to be at risk of foot and mouth disease infection.

  The Code can be found on the DEFRA website at: http://defraweb/footandmouth/disease/restrictions/nonanimal/milks.asp.

  Mr. Laurence Robertson
  To ask the Secretary of State for Environment, Food and Rural Affairs what precautions have been in place during the foot and mouth crisis to help prevent the disease being carried across the English channel by ferry and channel tunnel passengers; and if she will make a statement. [1857]

  Mr. Morley
  [holding answer 3 July 2001]: Details of precautionary measures are available from the DEFRA website at http://defraweb/footandntouth/about/index.htm. This includes guidance on taking vehicles abroad, imports and exports and trade issues.

  Anyone who intends to import or export products of animal origin should check that they comply fully with the appropriate legal requirements which are in place to prevent the spread of diseases such as foot and mouth.

  Mr. Drew
  To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on slurry lagoons on farms affected by the foot and mouth outbreak. [1669]

  Mr. Morley
  [holding answer 3 July 2001]: Slurry and liquid manure are normally treated by adding chemicals to raise or lower the pH so as to inactivate any foot and mouth disease virus that may be present. However, on many large farms the volume of slurry involved may make pH adjustment practically difficult and inordinately expensive. Moreover, the ground state may now allow the application of treated slurry. In such circumstances slurry and liquid manure may well be kept in lagoons or holding tanks until it can be applied to the land.

  Environment Agency authorisation is always sought about the construction and location of lagoons. Local animal health offices have cleansing and disinfecting teams who can give advice on handling large amounts of slurry and liquid manure. This advice will include the ease with which particular amounts might be treated and the preferred disposal methods taking into account the local ground conditions and the relevant environmental considerations.

  Mr. Laws
  To ask the Secretary of State for Environment, Food and Rural Affairs what her estimate is of the total cost of the recent foot and mouth crisis to date to the Exchequer; and if she will make a statement. [1500]

  Mr. Morley
  [holding answer 4 July 2001]: Our current estimate (as at 9 July) of the direct cost of the outbreak to the Exchequer is around £2.2 billion. Among other things, this includes the cost of disinfection and cleansing as well as compensation for compulsory slaughter of affected livestock.

  Mr. Steen
  To ask the Secretary of State for Environment, Food and Rural Affairs which of those recommendations contained in the 1969 Committee of Inquiry report into the 1967 foot and mouth outbreak were acted upon during the Government's handling of the 2001 epidemic; and if she will make a statement. [1792]
  686W
  Mr. Morley
  [holding answer 4 July 2001]: The recommendations in "The Report of the Committee of Inquiry on Foot-and-Mouth Disease", parts 1 and 2, published 7 March 1969 and 3 November 1969 (the Northumberland report), form the basis of the Government's policy for keeping the disease out of the country, and of our contingency plans for fighting an outbreak of foot and mouth. Other reports also contributed to the lessons learned from the 1967–68 epidemic, such as the "Origins of the 1967–68 Foot-and-Mouth Disease Epidemic", by John Reid (Chief Veterinary Officer), 7 February 1968; and the internal Ministry of Defence report on the foot and mouth outbreak 1967–68 in Western Command.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs when she will publish the details of every foot and mouth disease pyre and burial site in Cumbria. [2752]

  Mr. Morley
  Information on pyre and burial sites in Cumbria is being collected as part of a wider exercise relating to the whole of Great Britain. The location of all of these sites will be published once the information has been collated, cross-checked and validated.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs what representations the Government have received regarding the efficacy of vaccination in efforts to eradicate foot and mouth disease. [2580]

  Mr. Morley
  The Government and the Department have received representations from a broad cross-section of interested parties, both for and against vaccination, all of which have been carefully considered. The Government have made clear that they consider vaccination to be an option to keep under review as the outbreak develops.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs how many foot and mouth blood samples are awaiting processing at Pirbright; and what is the time from submission from the farm to confirmed result. [2738]

  Mr. Morley
  As of Friday 6 July 2001 there were approximately 30,000 sera awaiting test. The time between the receipt of samples at the Pirbright laboratory and the submission of confirmed results to DEFRA depends upon the initial result and whether secondary testing is required. Over 40 per cent. of samples were being reported within seven days of receipt.

  Testing is also taking place at the Centre for Applied Microbiological Research at Porton Down and the VLA laboratory at Penrith.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs what assessment the Government have made of ring vaccination as an eradication policy for foot and mouth disease. [2575]

  Mr. Morley
  Vaccination against foot and mouth disease remains an option that is kept under continuous review. Ring vaccination is one possible approach, which aims to control the spread of infection within and outside an infected area. It reduces the amount of virus circulating in the area, as the vaccinated animals will be less infectious.

  687W
  We did not ring vaccinate at the start of the outbreak because it was apparent that the virus had potentially been spread across a wide area, due to the large number of movements that had taken place before the first case of foot and mouth disease was identified. This made ring vaccination an impractical option.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs how many premises that were confirmed as being infected with foot and mouth have subsequently received negative results from blood tests. [2568]

  Mr. Morley
  As at 8 July, 382 infected premises in Great Britain gave a negative result when tested for foot and mouth disease in the laboratory. A negative test result does not necessarily mean that the premises was free from the disease. For instance, if the disease is old the virus may not be present in the sample collected, and blood tests from newly infected animals may not give a positive reaction to the laboratory test as antibodies may not yet be present.

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs on how many farms in(a) England and (b) Cumbria livestock have been slaughtered as a result of classification as (i) infected premises (ii) dangerous contacts, (iii) slaughter on suspicion and (iv) contiguous. [2565]

  Mr. Morley
  As at 5 July the numbers of premises where livestock had been slaughtered are detailed in the table.

  Premises status

  England (inc. Cumbria)

  Cumbria

  Infected Premises

  1,527

  772

  Dangerous Contact—Contiguous Premises

  2,209

  415

  Dangerous Contact—Non Contiguous Premises

  1,898

  11,005

  Slaughter on Suspicion

  169

  30

  Total

  5,803

  2,222

  1 Includes premises slaughtered out as part of the 3 km cull

  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs how many infected premises in each county of(a) England and (b) Scotland tested negative in the laboratory. [2803]

  Mr. Morley
  The table shows the number of infected premises (IPs) in each county of England and Scotland which gave negative laboratory test results.

  County

  Total

  Avon

  4

  Cheshire

  9

  Cleveland

  1

  Cornwall

  1

  Cumbria

  76

  Derbyshire

  1

  Devonshire

  44

  Dumfriesshire

  39

  Durham

  20

  Essex

  1

  Gloucestershire

  33

  Hereford and Worcester

  34

  Kent

  3

  Kircudbright

  7

  Lancashire

  7

  688W

  County

  Total

  Leicestershire

  2

  North Yorkshire

  7

  Northumberland

  14

  Roxburgh

  2

  Shropshire

  3

  Somerset

  2

  Staffordshire

  19

  Tyne and Wear

  1

  Wigtown

  11

  Wiltshire

  1

  Grand Total

  342

  A negative test result does not necessarily mean that the premises was free from disease. For instance, if the disease is old the virus may not be present in the sample collected, and blood tests from newly infected animals may not give a positive reaction to the laboratory test as antibodies may not yet be present.

  Brian Cotter
  To ask the Secretary of State for Environment, Food and Rural Affairs if she will make it her policy to allow vaccination, rather than slaughter, where farmers and stockholders request it for those animals suspected of suffering from foot and mouth disease. [3082]

  Mr. Morley
  Our priority is to eradicate the disease and so policy decisions will be based on the expert veterinary and scientific advice on the best way to achieve this. Vaccination protects animals from infection, and so would not be used for animals that are already infected with foot and mouth disease. The policy remains to slaughter animals which are infected, suspected of being infected or which have been exposed to infection.

  Any steps to vaccinate need to be undertaken with full consideration of all the implications for the disease, the handling and control of vaccinated animals and products, and wide implications for the EU's 'foot and mouth disease-free, without vaccination' status. A decision to vaccinate against foot and mouth disease must, therefore, be taken at national level and take into account the views and wishes of all interested parties that would be affected by a vaccination programme.

  Brian Cotter
  To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the advantages and disadvantages of the use of ring vaccination for animals suspected of suffering from foot and mouth disease. [3075]

  Mr. Morley
  We would not vaccinate an animal against foot and mouth disease if it were suspected to be already carrying the virus.

  Ring vaccination is best deployed where one is confident that the size of an infected area is relatively small and the virus has not already spread beyond it, since the aim of ring vaccination is to control the spread of infection within and outside the infected area. We did not ring vaccinate at the start of the outbreak because it was apparent that the virus had potentially been spread across a wide area, due to the large number of movements that had taken place before the first case of foot and mouth disease was identified. This made ring vaccination an impractical option.

  689W
  Vaccination remains an option, and is being continuously reassessed against changing circumstances and knowledge about the current outbreak.

  Throckmorton Airfield
  Mr. Luff
  To ask the Secretary of State for Environment, Food and Rural Affairs if she will publish the risk assessment made prior to the establishment of a mass burial site at Throckmorton airfield in Worcestershire; and what amendments have since been made to that assessment. [2002]

  Mr. Morley
  [holding answer 4 July 2001]: The Environment Agency conducted a preliminary desktop study of Throckmorton airfield in order to assess its suitability as a burial site for animal carcases. The study included a risk assessment of the geological, hydrogeological and hydrological conditions at the airfield. This assessment was followed up by a full quantitative risk assessment by the agency using site specific data gained from the site construction phase. The site was shown to be acceptable using the approved methodology.

  The contractors, Halcrows, are currently doing additional site investigation and monitoring, and they will further update the risk assessment following this work. Both the qualitative desktop study and quantitative risk assessment are held on the public register at the district Environment Agency office in Riversmeet, Tewkesbury, together with a note referring to the additional work.

  Hall Burn
  David Maclean
  To ask the Secretary of State for Environment, Food and Rural Affairs what is the purpose of the building being erected at the Hall Burn site at Longtown, Cumbria. [2754]

  Mr. Morley
  No permanent buildings are being erected at the Hall Burn site although a number of temporary modular buildings (i.e. portacabins) were erected on the site before May. These are used for office accommodation, crew rooms, toilets, and showers.

  Green Ministers
  Malcolm Bruce
  To ask the Secretary of State for Environment, Food and Rural Affairs what plans she has to monitor(a) the role of Green Ministers and (b) integration of the environment and sustainable development; and if she will make a statement. [4003]

  Mr. Meacher
  As chair of the Cabinet Sub-Committee of Green Ministers, I will monitor the role of Green Ministers and integration of the environment and sustainable development. The Committee will report to ENV as necessary. The Secretary of State for Environment, Food and Rural Affairs is a member of ENV.

  Malcolm Bruce
  To ask the Secretary of State for Environment, Food and Rural Affairs where responsibility lies for co-ordination of the role of Green Ministers; and if she will make a statement. [4002]

  Mr. Meacher
  As a Cabinet Sub-Committee the terms of reference for ENV(G) are set by the Prime Minister and it is for me to co-ordinate the role including a work programme.
  690W
  Malcolm Bruce
  To ask the Secretary of State for Environment, Food and Rural Affairs on what date a Green Minister was first appointed in her Department; when subsequent appointments were made; and if she will make a statement. [3974]

  Mr. Meacher
  I have been asked to answer this question on behalf of the Government. The Green Ministers Committee has undergone three phases since its inception. A Green Minister in every Government Department was first appointed following the 'This Common Inheritance' White Paper in 1990.

  Following the recent establishment of the Green Ministers Committee as a Cabinet Sub-Committee, ENV(G), its membership is as follows:

  Minister of State (Environment) Department for Environment, Food and Rural Affairs (Chair)

  Solicitor-General

  Financial Secretary, Treasury

  Minister of State, Foreign and Commonwealth Affairs

  Minister of State (Rural Affairs), Department for Environment, Food and Rural Affairs

  Minister of State, Scotland Office

  Minister of State, Department of Trade and Industry

  Minister of State, Department for Culture, Media and Sport

  Parliamentary Secretary, Cabinet Office

  Parliamentary Secretary, Lord Chancellor's Department

  Parliamentary Under-Secretary of State, Home Office

  Parliamentary Under-Secretary of State, Department for International Development

  Parliamentary Under-Secretary of State, Department for Work and Pensions

  Parliamentary Under-Secretary of State, Department for Transport, Local Government and the Regions

  Parliamentary Under-Secretary of State, Department of Health

  Parliamentary Under-Secretary of State, Northern Ireland Office

  Parliamentary Under-Secretary of State, Wales Office

  Parliamentary Under-Secretary of State, Ministry of Defence

  Parliamentary Under-Secretary of State, Department for Education and Skills.

  Malcolm Bruce
  To ask the Secretary of State for Environment, Food and Rural Affairs if she will set out the terms of reference for the role of the Green Minister in(a) her own Department and (b) in other Departments; and if she will make a statement. [3985]

  Mr. Meacher
  In this Parliament the Green Ministers Committee has been reconstituted as the Cabinet Sub-Committee of Green Ministers, ENV(G). It is for the Prime Minister to set the terms of reference for Cabinet Committees. ENV(G)'s terms of reference are:
  "to consider the impact on sustainable development of government policies; to improve the performance of Departments in contributing to sustainable development; and to report as necessary to ENV Committee".

WORK AND PENSIONS

  Invalid Care Allowance
  Mr. Webb
  To ask the Secretary of State for Work and Pensions if he will estimate the cost to the Exchequer, net
  691W
  of savings on means-tested benefits, of increasing the rate of Invalid Care Allowance to the level of the basic State Pension. [1460]

  Maria Eagle
  The estimated additional cost of this change would be £650 million in 2001–02 (cost net of savings on Income Support, Housing Benefit and Council Tax Benefit would be £340 million). However, this change would only benefit carers not in receipt of Income Support (IS) or where the increase is greater than the current value of their IS. 230,000 people would see an increase in their net income.

  In April 2001 the Carer Premium paid through Income Related Benefits was increased by an extra £10 per week and the Invalid Care Allowance (ICA) Earnings Limit was increased by £22 per week. We intend to legislate to extend ICA to people aged 65 or over and to enable ICA to continue for up to eight weeks after the death of the person being cared for. These changes will help an estimated 300,000 carers at a cost of more than £500 million over three years.

  Notes:

  1. Estimate is rounded to the nearest £10 million

  2. The gross ICA cost is based on the forecast ICA caseload for 2001–02.

  3. The income-related benefit offsets have been calculated from data taken from the November 2000 5 per cent. scan of the Income Support computer system, and the May 1999 1 per cent. sample of HB/CTB claims. These offsets have been applied to the 2001–02 ICA forecast to obtain the savings in the income-related benefits.

  4. The estimate assumes that the basic rate of ICA will be increased to the level of the category A Retirement Pension, and that there would be no changes made to the dependency increases in ICA.

  5. The costing allows for the £5 increase in Retirement Pension in 2001–02.

  BASIS staff employed in each area for the past 12 months

  2001

  2001

  Teams

  May

  June

  July

  August

  September

  October

  November

  December

  January

  February

  March

  April

  May

  Hinchley Wood

  60

  60

  58

  58

  58

  55

  55

  53

  52

  53

  53

  53

  56

  Canons Park

  44

  45

  46

  47

  47

  49

  48

  48

  50

  50

  50

  46

  45

  Birmingham

  19

  21

  20

  19

  20

  20

  19

  19

  22

  19

  20

  20

  20

  Nottingham

  17

  17

  17

  17

  17

  17

  17

  17

  18

  18

  18

  18

  18

  Leeds

  19

  19

  19

  18

  18

  20

  20

  21

  21

  21

  21

  21

  22

  Manchester

  18

  18

  18

  17

  21

  19

  19

  20

  20

  20

  20

  21

  21

  Cardiff

  15

  15

  16

  15

  15

  15

  16

  17

  17

  18

  17

  15

  15

  Liverpool

  17

  17

  18

  18

  18

  18

  19

  19

  20

  20

  20

  20

  20

  Newcastle

  17

  17

  17

  19

  19

  19

  19

  19

  19

  21

  21

  22

  21

  Glasgow

  21

  21

  18

  18

  18

  21

  19

  19

  19

  19

  19

  18

  18

  Total

  247

  250

  247

  246

  251

  253

  251

  252

  258

  259

  259

  254

  256

  Complement of BASIS staff at each office and vacant posts

  BASIS teams

  Complement of Staff

  Vacancies declared

  Hinchley Wood

  69

  13

  Canons Park

  69

  24

  Birmingham

  21

  1

  Nottingham

  21

  3

  Leeds

  21

  0

  Manchester

  21

  0

  Cardiff

  21

  6

  Liverpool

  21

  1

  Newcastle

  21

  0

  Glasgow

  21

  3

  Winter Fuel Payment
  Mr. Willetts
  To ask the Secretary of State for Work and Pensions when the last Winter Fuel Payment for winter 2000 was paid. [2265]

  Mr. McCartney
  This is a matter for Alexis Cleveland, the chief executive of the Benefits Agency. She will write to the hon. Member.

  Letter from Alexis Cleveland to Mr. David Willetts, dated 11 July 2001:
  The Secretary of State for Work and Pensions has asked me to reply to your recent Parliamentary Question asking when the last winter fuel payment for Winter 2000 was paid.
  Our records show that the vast majority of Winter 2000 payments were paid automatically before Christmas 2000. However, to allow for payments to be made to customers claiming up to 31 March 2001, the last main tranche of payments for Winter 2000 was processed between 15 and 23 June. These customers should have received their payment within two weeks of processing.
  Winter fuel payments for Winter 2000 continue to be processed for late claims, appeals and cases with other outstanding issues. Payments will be ongoing until these claims are cleared.

  BASIS
  Mr. Willetts
  To ask the Secretary of State for Work and Pensions how many staff the Benefits Agency Security Investigations Service has employed in each area for each of the past 12 months; what is the full complement of staff at each BASIS office; how many of these posts are vacant; and how many staff at each area office have been with BASIS for 12 months or more. [2260]

  Malcolm Wicks
  The information is in the tables.

  The Counter Fraud Investigation Branch is committed to bringing staffing up to full strength in the next quarter and is currently recruiting.

  Number of staff employed within BASIS for 12 months or more

  BASIS teams

  Number of staff

  Hinchley Wood

  42

  Canons Park

  34

  Birmingham

  14

  Nottingham

  18

  Leeds

  18

  Manchester

  14

  Cardiff

  12

  Liverpool

  14

  Newcastle

  12

  Glasgow

  14

  Notes:

  1. These figures include both administrative and investigative staff employed by BASIS.

  2. Figures above as of May 2001.

  New Deal
  Ross Cranston
  To ask the Secretary of State for Work and Pensions how many people in Dudley, North are in the New Deal programme; and how many had been placed in employment under the new deal up to the end of June. [2564]

  Mr. Nicholas Brown
  The information is in the table.

  Numbers currently on new deals as at April 2001

  Jobs gained to April 2001

  New Deal for Young People

  197

  547

  New Deal for Long Term Unemployed aged 25+

  275

  148

  New Deal for Lone Parents

  119

  153

  New Deal 50+: Employment Credit

  31

  85

  Notes

  1. Figures related to Dudley, North parliamentary constituency.

  2. Latest figures relate to the period ending April 2001 which were reported in the June Statistical Release for New Deal for Young People/25+ and July Statistical Release for New Deal for Lone Parents.

  3. New Deal 50+ figures related to clients claiming for employment credit only. Figures relating to the numbers on the New Deal 50+ case load are not available.

  4. Jobs gained includes those who gain a job while accessing new deal or as an immediate destination on leaving the programme.

  5. Detailed constituency figures for the New Deal for Young People are available monthly from the Library.

  Source

  New Deal Evaluation Database

  Mr. Randall
  To ask the Secretary of State for Work and Pensions how many people in the Uxbridge constituency are in the New Deal programme; and how many had been placed in employment by the end of March. [2825]

  Mr. Nicholas Brown
  The information is in the table.

  Numbers currrently on new deals as at end April 2001

  Jobs gained to April 2001

  New Deal for Young People

  35

  170

  New Deal for Long Term Unemployed aged 25+

  36

  46

  New Deal for Lone Parents

  95

  104

  New Deal 50+: Employment Credit

  10

  12

  Notes

  1. Figures relate to Uxbridge parliamentary constituency.

  2. Latest figures relate to the period ending April 2001 which were reported in the June Statistical Release for New Deal for Young People/25+ and July Statistical Release for New Deal for Lone Parents.

  3. New Deal 50+ figures relate to clients claiming for employment credit only. Figures relating to the numbers on the New Deal 50+ case load are not available.

  4. Jobs gained includes those who gain a job while accessing new deal or as an immediate destination on leaving the programme.

  5. Detailed constituency figures for the New Deal for Young People are available monthly from the Library.

  Source

  New Deal Evaluation Database
  694W

  Pension Credit
  Mr. Cousins
  To ask the Secretary of State for Work and Pensions (1) if he will estimate, on the basis of the proposals and assumptions in the pension credit consultation paper, how many claimants of pension credit there will be in each region and nation; what proportion of the total number of pensioners the beneficiaries are likely to be; and how many are likely to be claimants of housing benefit and/or council tax benefit; [3625]

  (2) to which other benefits the proposed pension credit will be a passport [3626]

  Mr. McCartney
  The pension credit forms a key part of the Government's overall strategy for tackling pensioner poverty.

  We are completing the design of the pension credit and will publish details of our proposals when the Bill is introduced.

  Household Incomes
  Mr. Kevin Hughes
  To ask the Secretary of State for Work and Pensions when he expects the latest figures on Households Below Average Incomes to be published; and if he will make a statement. [4583]

  Mr. Darling
  Today I have published Households Below Average Income for 1994–95 to 1999–2000. Copies have been placed in the Library.

  The report shows the position during the financial year 1999–2000. Consequently, it does not reflect the full impact of all policies or the changes introduced since—for instance the significant increases made to Working Families Tax Credit and Income Support child rates in Budget 2000, the Children's Tax Credit or enhancements to the Minimum Income Guarantee.

  However the report shows encouraging signs that Government anti-poverty measures are beginning to work. There is a real downward trend in child poverty with 300,000 fewer children living in income poverty in 1999–2000 compared with 1996–97 and there are encouraging signs of improvement in pensioner incomes with the figures suggesting 100,000 fewer in poverty.

  It shows that all groups have shared a significant growth in income, there has been a large fall in the numbers below absolute low-income thresholds and the tide has been turned in the long-term trend of rising relative income poverty for children.

CULTURE, MEDIA AND SPORT

  Tourism (Foot and Mouth)
  Miss McIntosh
  To ask the Secretary of State for Culture, Media and Sport what representations she has received and what measures she has taken to ensure that the tourist coach industry is compensated following the effects of foot and mouth disease on the tourist industry; and if she will make a statement. [29]

  Dr. Howells
  My right hon. Friend the Minister for the Environment has received representations from the chairman of the Coach Tourism Council and a managing director of a north-east of England coach company. It is
  695W
  the long-standing policy of successive Governments not to offer compensation for consequential losses associated with animal disease outbreaks. However, my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs is closely monitoring the effectiveness of the financial assistance measures made available by Government to rural businesses, which is worth over £250 million. This package includes £50 million allocated to the Rural Business Recovery Fund, substantial hardship rate relief and £120 million available in loans under the Small Firms Loan Guarantee Scheme. Customs and Excise and the Inland Revenue will also agree to the deferral of tax or national insurance contributions where a business is in serious financial difficulty. The Department for Culture, Media and Sport has provided an additional £3.8 million to the English Tourism Council to get the message across that there is plenty for the public to do in the countryside, and £14.2 million to the British Tourist Authority to rebuild confidence in Britain as a tourism destination in our key overseas markets.

  Mr. Peter Ainsworth
  To ask the Secretary of State for Culture, Media and Sport what assessment she has made of the economic impact of foot and mouth disease on the tourist industry in each of the Regional Tourist Board areas. [2096]

  Tessa Jowell
  Our best estimate to date is that the loss of revenue in 2001–02 by the English tourist industry is likely to be around £120 million per week averaged over the eight-month tourism season. We are currently updating the assessment on which this is based in the light of the latest available data, including regional estimates made by individual regional tourist boards (these are not prepared on a consistent basis and so cannot simply be aggregated). We have not attempted to apportion the overall estimates to the individual regional tourist board areas, since the available data do not enable this to be done with a sufficient degree of reliability.

  The National Lottery
  Mr. Peter Ainsworth
  To ask the Secretary of State for Culture, Media and Sport if she will list the administrative costs as a percentage of National Lottery income for each of the National Lottery distributing bodies in the most recent year for which figures are available. [88]

  Tessa Jowell
  [holding answer 25 June 2001]: The following table shows administration costs as a percentage of income for the lottery distributing bodies in 1999–2000, the most recent year for which published accounts are available.

  Distributing body

  Administration costs as a percentage of income

  Arts Council of England

  11.43

  Scottish Arts Council

  8.07

  Arts Council of Wales

  10.17

  Arts Council of Northern Ireland

  7.43

  Sport England

  7.40

  Sportscotland

  8.09

  Sports Council for Wales

  5.56

  Sports Council for Northern Ireland

  8.98

  UK Sport

  4.39

  Heritage Lottery Fund

  4.84

  Community Fund

  9.46

  Millennium Commission

  3.92

  New Opportunities Fund

  4.53

  696W

  British Archaeology
  Tim Loughton
  To ask the Secretary of State for Culture, Media and Sport if she will make a statement on the implications of article 3 of the Treaty of Valetta for British archaeology, following the UK becoming a signatory to the treaty. [2221]

  Dr. Howells
  [holding answer 3 July 2001]: It is for each Government to apply the European Convention on the Protection of the Archaeological Heritage (known as the Valetta Convention) in ways that fit in with national practice and legislation. In broad terms, current measures in place in the UK already meet the convention's requirements. The Government do not believe that additional legislation, requiring a licensing system, is necessary to fulfil article 3. Much archaeological work is already controlled through existing mechanisms. There may be scope for developing a voluntary code of conduct for those who wish to undertake archaeological work outside the existing systems of control.

  Football World Cup
  Mr. Greenway
  To ask the Secretary of State for Culture, Media and Sport what action she is taking to ensure that every match in the football World Cup finals in 2002 is available for live free to-air transmission. [3633]

  Dr. Howells
  [holding answer 12 July 2001]: The whole of the World Cup finals tournament is a listed event under part IV of the Broadcasting Act 1996. Under that legislation, the Independent Television Commission will ensure that a non-free-to-air broadcaster—or a free-to-air broadcaster which covers less than 95 per cent. of the population—can show any part of the tournament live only if a free-to-air broadcaster with at least 95 per cent. coverage has either acquired similar rights, or been given the opportunity to dc so on fair and reasonable terms.

  Mr. Greenway
  To ask the Secretary of State for Culture, Media and sport what discussions she plans to hold with her counterparts in the Council of Ministers about the Kirsch 2002 football World Cup contract. [3634]

  Dr. Howells
  [holding answer 12 July 2001]: My right hon. Friend the Secretary of State has no current plans to discuss this matter with her counterparts in the Council of Ministers.

  Digital Radio (BBC)
  Mr. Whittingdale
  To ask the Secretary of State for Culture, Media and Sport if she will make it her policy to refuse applications for new BBC digital radio channels unless they are based on formats clearly distinct from existing digital radio channels. [3568]

  Dr. Howells
  [holding answer 12 July 2001]: My right hon. Friend the Secretary of State will assess all the proposed new BBC digital radio services against the criteria set out in the public service approvals guidelines. These include the distinctiveness (in programming and content) of the proposed BBC service from those provided by other broadcasters.

  Mr. Whittingdale
  To ask the Secretary of State for Culture, Media and Sport what assessment she has made of the extent to which the BBC's application for a digital radio channel Network Z is based on a format clearly distinct from the existing channel, Oneword. [3570]
  697W
  Dr. Howells
  [holding answer 12 July 2001]: My right hon. Friend the Secretary of State is currently assessing the BBC's application against the published public service approval guidelines. In reaching a decision she will take into account all the comments she has received during the consultation period, including those from Oneword.

  Mrs. Brinton
  To ask the Secretary of State for Culture, Media and Sport what assessment she will make of(a) the intended target audience of and (b) the distinctiveness of programmes proposed by Network Z in reaching a decision on it. [3762]

  Dr. Howells
  The criteria against which the Secretary of State will make her decision on the BBC proposals for new digital services, including Network Z, are set out in the published public service approvals guidelines. In reaching a decision, she will consider all the comments made to her during the consultation period.

  Indemnities (Art Collections)
  Judy Mallaber
  To ask the Secretary of State for Culture, Media and Sport how many indemnity undertakings were given under section 16 of the National Heritage Act 1980 for the six-month period ended 31 March; and what the value was of(a) any contingent liabilities in respect of such undertakings given at any time under that section which remain outstanding as at 31 March, (b) non-statutory Government indemnities in respect of loans handled by the Government Art Collection which remain outstanding as at 31 March and (c) non-statutory undertakings to Her Majesty in respect of loans from the Royal Collection which remain outstanding at 31 March. [4527]

  Tessa Jowell
  The provision for the Government Indemnity Scheme is made by the National Heritage Act 1980. The scheme facilitates public access to loans of works of art and other objects for public display made to museums, galleries and other such institutions by private owners and non-national institutions. It does this by indemnifying lenders against loss or damage to their loan. Loans covered by the scheme must be for public benefit. The scheme also covers loans of such objects for study purposes within borrowing institutions where this would contribute materially to the public's understanding or appreciation of the loan. Examples of this are enhancing interpretation or explanation to the public of objects or bringing into the public domain, the conclusions of any study.

  In the six-month period ended 31 March 2001, the following undertakings to indemnify were given under section 16 by the relevant Departments for objects on loan to national and non-national institutions:

  Number

  Department for Culture, Media and Sport

  647

  Scottish Executive Education Department

  178

  The National Assembly for Wales

  72

  The value of contingent liabilities in respect of undertakings given at any time under section 16 and which remained outstanding as at 31 March is:

  £

  Department for Culture, Media and Sport

  2,041,341,918

  Scottish Executive Education Department

  444,818,689

  The National Assembly for Wales

  74,198,187

  698W
  The value of non-statutory Government indemnities to cover loans handled by the Government Art Collection and which remained outstanding as at 31 March is:
  Value: £6,475,000.
  The value of non-statutory undertakings given to Her Majesty in respect of loans from the Royal Collection and which remained outstanding as at 31 March is:
  Value: £180,225,170.

HOME DEPARTMENT

  Police Performance Indicators
  Mr. George Howarth
  To ask the Secretary of State for the Home Department what proposals he has for reviewing key performance indicators for policing following Merseyside police's reorganisation of neighbourhood policing; and if he will make a statement. [2116]

  Mr. Denham
  We are currently considering the views of the Association of Chief Police Officers of England, Wales and Northern Ireland and the Association of Police Authorities on possible changes to police best value performance indicators. The Department for Transport, Local Government and the Regions will then publish a consultation document on all best value performance indicators and the performance indicators for 2002–03 will be set on the basis of that exercise. The suite of performance indicators for policing will be kept under review to ensure that it is consistent with the outcome of the police reform programme.

  Prison Overcrowding
  Miss Widdecombe
  To ask the Secretary of State for the Home Department what percentage of prisoners were held in overcrowded accommodation in(a) 1996–97, (b) 1999–2000 and (c) 2000–01; and if he will make a statement. [2467]

  Beverley Hughes
  The number of prisoners held in overcrowded accommodation expressed as a percentage of the average population during 1999–2000 and 2000–01 is given in the table. There is no comparable overcrowding data for 1996–97.

  Year

  Percentage of overcrowding

  1999–2000

  20.0

  2000–01

  17.5

  Simon Hughes
  To ask the Secretary of State for the Home Department what plans he has to reduce overcrowding in prisons; by what date he expects overcrowding to end; and if he will make a statement. [1512]

  Beverley Hughes
  [holding answer 9 July 2001]: The prison population on 29 June 2001 was 66,736. This was 4,305 below the total certified operational capacity of 71,041 for the same day. The Government set no target for the prison population as it is for the courts to determine who is sent to prison. The Government will provide the places necessary to accommodate safely and securely those sentenced by the courts. New prison capacity is opening this year. Rye Hill, a 600 place prison near Rugby, opened in January 2001 and Dovegate, an

  699W
  800 place prison in Staffordshire, will open on 9 July 2001. The 2000 spending review also provides funding to increase capacity by a further 2,660 by 2004.

  London Underground
  Bob Russell
  To ask the Secretary of State for the Home Department when he last travelled on the London Underground in the course of his official duties. [3676]

  Mr. Blunkett
  I have not yet travelled on the London Underground for official duties in the five weeks that I have held the post of Home Secretary.

  Drug Use
  Paul Flynn
  To ask the Secretary of State for the Home Department what his most recent estimate is of the progress made in achieving the illegal drugs use reduction targets in the Government's 10-year strategy. [2385]

  Mr. Denham
  [holding answer 9 July 2001]: The Anti-Drugs Co-ordinator's annual report for 1999–2000 shows that we are making progress towards achieving the challenging targets we have set as part of our 10-year anti-drugs strategy. Most of our annual targets were met in full. We are on track to deliver published targets for 2002. We recognise the particular importance of tackling the problem at the local level and that there is more to do.

  Imutran Limited
  Jim Dobbin
  To ask the Secretary of State for the Home Department what progress has been made with the review by the Chief Inspector of the Animals (Scientific 700W
  Procedures) Inspectorate of Compliance by Imutran Limited with the authorities granted under the Animals (Scientific Procedures) Act 1986 for its xenotransplantation research; and if he will make a statement. [4420]

  Angela Eagle
  I have today published a report on the routine review of compliance with the authorities issued to Imutran Ltd. prepared by the Chief Inspector of the Animals (Scientific Procedures) Inspectorate and placed copies in the Library.

  The Chief Inspector's findings confirm that the level of compliance was generally good. He has, however, also identified five instances of non-compliance. Three of these were already known to the Home Office and were dealt with in 1997.

  One of the newly identified infringements was essentially technical and no unnecessary animal suffering resulted. In the other case there is evidence that animals experienced unnecessary suffering because of delay in implementing the agreed humane end-point for the procedure applied to them. In mitigation, the clinicians' decisions were based upon clinical judgment rather than undisputed or unambiguous facts and the Chief Inspector's view is that the decisions taken by those concerned do not indicate any fundamental disregard for the welfare of the animals. Both infringements will be dealt by means of letters of admonishment to those responsible, none of whom is currently resident or working in the Unites Kingdom.

  The Imutran licences were revoked in July 2000 following a decision by its parent company to close Imutran Ltd. and transfer its technology to a new company in North America.