Written Answers of 19 November 1993

ENVIRONMENT

  Housing Revenue Account Subsidy
  Mrs. Lait
  To ask the Secretary of State for the Environment what are his proposals for housing revenue account subsidy guideline rents and management and maintenance allowance for 1994–95.

  Sir George Young
  I have today placed in the Library copies of my right hon. Friend's proposals for housing revenue account subsidy rent guidelines and management and maintenance allowances for 1994–95.

  I propose to increase the national allowance for management and maintenance by 4 per cent.—£132 million—taking the total to £3·4 billion, and that the increase should go to the 183 authorities whose allowances are below the Government's estimate of their relative need to spend. This will guarantee all authorities 95 per cent. of that estimate.

  On guideline rents, I propose an average increase in next year's local authority guideline rents of £2·20 a week which would take the average guideline rent from £29·40 to £31·60 with increases at the individual authority level ranging from £1·50 in low-value areas to £2·90 a week in high-value areas.

EDUCATION

  Student Loans Company
  Mr. David Martin
  To ask the Secretary of State for Education when the Student Loans Company will publish its annual report; and if he will make a statement.

  Mr. Boswell
  The Student Loans Company has published today its annual report for the academic year 1992–93, which includes the company's accounts for the financial year 1992–93. I have placed a copy in the Library.

  The report attests to a highly successful year for the company and is a tribute to its board and staff.

HOME DEPARTMENT

  Police National Network
  Sir Ivan Lawrence
  To ask the Secretary of State for the Home Department whether he has yet chosen a supplier for the police national network; and if he will make a statement.

  Mr. Howard
  I have decided to award the contract for the supply of the police national network to Mercury Communications plc. This should reduce by about 40 per cent. the costs of those telephone calls which will be handled by the new network.

  Welsh Constituencies
  Sir Ivan Lawrence
  To ask the Secretary of State for the Home Department whether the Boundary Commission for Wales has decided when to start the next general review of constituencies in Wales.

  Mr. Howard
  The commission has given notice of its intention to commence, forthwith, a general review of constituencies in Wales. It is required to report before 31 December 1994.

AGRICULTURE, FISHERIES AND FOOD

  Agriculture Council
  Sir John Hannam
  To ask the Minister of Agriculture, Fisheries and Food what was the outcome of the Agriculture Council held in Brussels on 16 and 17 November; and if she will make a statement.

  Mrs. Gillian Shephard
  This meeting of the Council, at which I represented the United Kingdom, continued its discussion of proposals from the Commission for changes in the arrangements for arable area payments, including set-aside; for adjustments to the agri-monetary system; and for implementing the agreement on oilseeds concluded between the Community and the United States. No decisions were reached.

  On arable area payments, I pressed for changes in the existing system going beyond those proposed by the Commission. In particular, I want to ensure that farmers who entered arable land into the old set-aside scheme, which started in 1988, have a continuing incentive not to return it to production when their obligations under that scheme come to an end.

  I made it clear that I could accept the modest change in the agri-monetary system proposed by the Commission but not the more far-reaching, and expensive, change urged by Germany. I argued that the suspension of the automatic adjustment of green rates, which the Commission has imposed under its own powers since September, should not be further extended.

  The Council discussed the present state of play in the Uruguay round negotiations. It also had an initial discussion of a Commission proposal which would extend the existing sugar arrangements for a year, while at the same time introducing quota controls on production of inulin syrup, a sugar substitute.

WALES

  NHS Trusts
  Mr. Richards
  To ask the Secretary of State for Wales if he will make a statement about the development of the NHS trusts in Wales.

  Mr. Gwilym Jones
  There are currently 14 operational NHS trusts in Wales. I have received 12 applications from hospitals, community units and the ambulance service to become NHS trusts from April 1994. Public consultation on 10 of the applications ended on 20 September.

  In the light of the representations received, and taking account the individual merits of each application, I have decided to establish a further eight NHS trusts to become operational from next April. The details are:
  3
  Gwynedd Health Authority

  Gwynedd Acute Unit (Ysbyty Gwynedd, Bangor)

  Gwynedd Community Unit

  Gwent Health Authority

  North Gwent Unit (Nevill Hall Hospital, Abergavenny)

  Mid Glamorgan Health Authority

  Rhondda Health Unit (Llwynypia Hospital)

  South Glamorgan Health Authority

  Velindre Hospital

  East Dyfed Health Authority

  Mental Health Unit (St. David's Hospital, Carmarthen)

  Ambulance Service

  North Wales Ambulance Service (Clwyd and Gwynedd)

  Mid Glamorgan Ambulance Service

  The orders giving effect to my decisions have been signed today. The trusts will be formally established on 1 December, with an operational date of 1 April 1994. I will announce shortly the details on the chairmen and non-executive directors of the new NHS trusts.

  I have deferred a decision on the joint proposal from the East Dyfed and West Glamorgan ambulance services, pending a revised submission next year for trust status from April 1995. In the meantime, the host health authorities have been invited to integrate the two services. This further year should enable the merged service to demonstrate more clearly how the main criteria for trust status will be met.

  The application from the Rhymney valley unit, Mid Glamorgan, has been rejected. I am not convinced that the proposals fully meet the criteria and, in particular, that patients would benefit from the move to trust status. In the light of my decision, it will be for the unit, in conjunction with the health authority, to consider how best to meet the health needs of local communities in the Rhymney valley.

  Morriston hospital north unit in West Glamorgan and Taff Ely unit, Mid Glamorgan, have also applied for NHS trust status from April 1994. Both applications are currently subject to three months' public consultation. I expect to announce the outcome early in 1994.

  This announcement today means that, from April 1994, some 85 per cent. of acute services and 80 per cent. of community services in Wales will be delivered by NHS trusts.

  Elsewhere in Wales, I have invited the University hospital of Wales, the dental hospital and the community services unit, all from South Glamorgan, to prepare formal applications to become NHS trusts from April 1995. However, the invitations are without prejudice to decisions which I may be called upon to take on the authority's strategic plan on the future pattern of health services in South Glamorgan. The plan remains the subject of separate consultation by the authority at this stage.

  The community services unit will focus on the Greater Cardiff area and the Llandough hospital NHS trust will be encouraged to extend its current range of patient care to include community and mental health services in the vale of Glamorgan.

  Applications for 1995 trust status will need to be submitted in the early summer of 1994. No decisions will be reached until the consultative process has been completed. An invitation to prepare an application carries no commitment that an application will be approved and the decision whether to apply is entirely a matter for the hospital, community unit or ambulance service concerned.

EMPLOYMENT

  Remploy
  Mr. Richards
  To ask the Secretary of State for Employment what targets Remploy has been set in its 1993–94 annual performance agreement.

  Mr. Michael Forsyth
  On behalf of my right hon. Friend the Secretary of State, my noble Friend Lord Henley has written to the chairman of Remploy approving the 1993–94 annual performance agreement between the Department and the company. This agreement covers the year from 1 April 1993. It has been negotiated by the chief executive of the Employment Service, on behalf of my right hon. Friend.

  On behalf of my right hon. Friend the Secretary of State, my noble Friend Lord Henley has agreed targets which are realistic but stretching. These are:
  the average number of disabled people employed by Remploy Ltd. will be at least 8,550;
  of which no more than 7,700, on average must be employed in factories;
  at least 115 disabled employees will move from Remploy factories to opportunities under the Interwork scheme or to open employment, or from Interwork to open employment; the unit cost of Interwork should be no more than the sheltered employment voluntary body deficiency grant £4,310;
  Remploy Ltd. will keep within an operating deficit of £83·2 million—including £0·5 million reorganisation costs —which on average numbers of 8,550 will give a cost per disabled worker of £9,731;
  Remploy Ltd. will prepare and agree a charter for its employees by March 1994.

  I have today arranged for the text of the annual performance agreement to be placed in the Library.

NATIONAL FINANCE

  Budget Council
  Mr. Burns
  To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the recent meeting of European Ministers at the Budget Council.

  Sir John Cope
  The Budget Council met in Brussels on 15 November. I represented the United Kingdom.

  The Council considered the European Parliament's proposed changes to the draft budget which the Council established in July, Official Report, 26 July 1993, columns 596-97, and established a second reading draft budget for 1994. The Council reduced the total for commitments proposed by the European Parliament by 337 million ecu. As a result, the Council's second reading draft budget totals 73,112 million ecu—£56,089 million—in commitment appropriations. The own resources which would be required to finance the draft budget amount to 1·19 per cent. of Community GNP, compared with the own resources ceiling for 1994 of 1·20 per cent.

  The Council also formally agreed the revised expenditure ceilings for 1994 which had been determined in the context of the new inter-institutional agreement—Official Report, 2 November 1993, column 113. The second reading draft budget is 374 million ecu in commitments, and 626 million ecu in payments, below the overall financial perspective ceilings. The following table summarises the second reading draft budget, with reference to the financial perspective:
  5

  Financial Perspective

  Draft Budget1

  mecu

  £ million2

  mecu

  £ million

  Commitment appropriations

  1. Common Agricultural Policy

  36,465

  27,975

  36,465

  27,975

  2. Structural operations

  23,176

  17,780

  23,176

  17,780

  3. Internal policies

  4,370

  3,353

  4,193

  3,217

  4. External action

  4,311

  3,307

  4,139

  3,175

  5. Administrative expenditure

  3,634

  2,788

  3,610

  2,769

  6. Reserves

  1,530

  1,174

  1,530

  1,174

  Total commitments

  73,486

  56,376

  73,112

  56,089

  Total payment appropriations

  70,352

  53,972

  69,727

  53,492

  1Council's second reading draft budget established on 15 November.

  2 Throughout this reply the rate of £1=1.3035 ecu has been used—the rate notified in the Official Journal as prevailing on the last working day of last month, 29 October.

  The European Parliament will consider the draft budget for 1994 at its plenary session in December. The 1994 Community budget is expected to be adopted by the Parliament on 16 December, to take effect from 1 January.

  The Council did not take a formal vote on the draft budget, the presidency concluding that there was the necessary majority to establish the second reading draft budget for 1994.
  6
  The Budget Council also established a letter of amendment to its draft supplementary and amending budget for 1993. The main elements of the letter of amendment were a reduction in the total of customs duties in the 1993 budget, in keeping with the Commission's latest estimates; and a corresponding increase in member states' GNP contributions, so as to maintain the overall level of revenue.