Written Statement of 4 December 2002

DEPUTY PRIME MINISTER

  British-Irish Council Summit
  The Deputy Prime Minister (Mr. John Prescott)
  The British-Irish Council's fourth summit was held in New Lanark on 22 November. My right hon. Friend the Leader of the House led the UK delegation on my behalf, as I was unable to attend due to the current fire dispute. My right hon. Friend the Secretary of State for Northern Ireland and my right hon. Friends the Financial Secretary to the Treasury and the Parliamentary Under-Secretary of State at the Northern Ireland Office were also members of the UK delegation.

  The Council noted with regret the suspension of the Northern Ireland Assembly and Executive and looked forward to the restoration of the devolved institutions in Northern Ireland, established under the Agreement, as soon as possible in advance of the scheduled elections.

  The main issue for discussion was Social Inclusion, with a particular focus on Financial Inclusion, and the Council agreed a programme to take forward joint working in this area. I have placed a copy of the Council's communique in the Libraries of the House.

  COMMUNIQUÉ
  The British-Irish Council established under the Agreement reached in Belfast on Good Friday 1998 held its fourth Summit meeting today in New Lanark, Scotland. The meeting was chaired by the First Minister the Rt Hon Jack McConnell MSP.
  The Irish and British Governments were represented by the Taoiseach, Mr Bertie Ahern TD and the President of the Council and Leader of the House of Commons, the Rt Hon Robin Cook MP respectively
  The Welsh Assembly Government was represented by the Rt Hon Rhodri Morgan AM, First Minister.
  The Isle of Man was represented by the Hon Richard Corkill MHK, Chief Minister of the Isle of Man Government, Guernsey was represented by Deputy Laurie Morgan, President, States of Guernsey Advisory and Finance Committee and Jersey was represented by Senator Pierre Horsfall OBE, President of the States of Jersey Policy & Resources Committee.
  A full list of delegation members is attached.
  The British-Irish Council is a forum for its Members to exchange information, discuss, consult and endeavour to reach agreement on co-operation on matters of mutual interest within the respective competencies.
  The Council noted with regret the suspension of the Northern Ireland Assembly and Executive and looks forward to the restoration of the devolved institutions in Northern Ireland, established under the Agreement, as soon as possible in advance of the scheduled elections.
  Social Inclusion
  The main focus of today's meeting was the issue of Social Inclusion and, in particular, Financial Inclusion, on which the Scottish Executive and the Welsh Assembly Government take the lead within the BIC. The Council recognised that the problems of
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  social and financial exclusion affect communities throughout all BIC Administrations and the meeting highlighted the range of strategies that Members are working on to combat these problems. Members reiterated their commitment to promoting social inclusion across the Member Administrations of the Council.
  In order to address the challenges in this important area, the Council agreed that future work on Financial Inclusion will include promoting best practice by creating opportunities for practitioners and policy makers to share ideas and information on aspects of financial inclusion. This work would include the identification and promotion of practical financial inclusion measures at the community level, including, for example, the use of credit unions. Members agreed that there should be greater exchanges on promoting access to appropriate financial products and encouraging savings.
  In addition, the Council agreed that the promotion of financial literacy is an essential element in tackling financial exclusion. In order to promote best practice, Members agreed to exchange information on the most effective methods of imparting basic skills and budgetary advice. Given the importance of the role played by intermediary organisations across the BIC, including those based in the community, the Council agreed that considerable benefit could be derived from the exchange of experience among members on how such organisations could best be supported.
  The Council also noted that the Scottish Executive and Welsh Assembly Government hosted a conference on Financial Inclusion for practitioners and policy-makers in September of this year in Glasgow as part of preparatory work for this Summit.
  Following the discussion on Social inclusion, the Council was updated on work being undertaken in other British-Irish Council areas by relevant Administrations.
  Drugs
  Ireland is the lead Administration within the Council on the Misuse of Drugs. Since the last Summit in June, a number of events have taken place including a seminar on the UK's Positive Futures initiative, which provides sporting programmes for youngsters at risk, and a conference on drug and alcohol strategies which took place in the Isle of Man. Following the successful conference on the exchange of information on Assets Confiscation in Guernsey in May of this year, a second conference on the issue is to take place in the near future. Scotland and Ireland are scheduled to host a seminar on education, training and employment opportunities for recovering drug misusers later this year. A further Ministerial meeting in Dublin is scheduled to take place in February 2003.
  Environment
  The UK is the lead Administration on the environment. Work has continued on waste management, climate change, Sellafield and radioactive waste. Since the June summit, the Waste Management Working Group has met to discuss a range of issues, share experience, exchange ideas and identify scope for co-operation. The sub-group on Climate Change Impacts and Adaptation met as part of their continuing exchange of information and experience. Technical work on the development of the new climate change scenarios covering all BIC members is underway. A public awareness seminar on the matter is scheduled to take place in November.
  The UK Government will host a further meeting of Environment Ministers in the near future.
  Transport
  Northern Ireland is the lead Administration on Transport. Work on the initial priority areas identified by Ministers in Belfast in December 2000 is continuing. On integrated transport, the group is coordinating work looking at transport links between BIC Administrations, approaches to the development and implementation of environmentally sustainable transport policies and the integration of land use as well as transport policy and practice. The issues of the use of Public Private Partnerships in

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  relation to transport infrastructure; co-operation on road safety issues and regional air links, of particular concern to a number of Members are also under consideration.
  Knowledge Economy
  The issue of the Knowledge Economy, on which Jersey is the lead Administration, was the main item on the agenda at the last BIC Summit in June 2002
  Since then, officials have met to continue the development of the work mandated by the Council, focussing on broadband provision, the switchover to Digital TV and a range of internet access issues, including physical access to equipment and services, encouragement of public use of technology, and the skills and learning issues that might inhibit such practice. As proposed at the Jersey summit, a seminar on research issues, which allowed Members the opportunity to exchange information on matters of mutual interest was held earlier this month
  Health: The Application of Telemedicine
  The Isle of Man is the lead Administration on the application of Telemedicine and e-health. Officials have met on a number of occasions to share information on telemedicine initiatives in each Administration and discuss some of the issues encountered in getting e-health accepted in routine healthcare. There have also been BIC study visits and presentations on telemedicine facilities in Scotland and Wales.
  The focus of the work in this area is on how Telemedicine and e-health projects can be most appropriately implemented, and on identifying successful projects and methodologies which it is hoped would prove of interest within BIC Administrations.
  Tourism
  Guernsey has taken the lead on tourism within the BIC. Officials have met on a number of occasions to discuss how best to take forward work in this area. The group is focusing on exploring issues of common interest and mutual benefit to all Administrations. Work to date has concentrated on methodologies for data collection within BIC Administrations. The environment and tourism, transport access, and staff training and recruitment issues, including the opportunities for exchange schemes, also form part of the work programme for the Group
  Minority and Lesser-Used Languages
  Further to the Council's agreement last BIC Summit meeting in June 2002 that the Welsh Assembly Government should take the lead on Minority and Lesser-Used Languages, a preparatory meeting of officials is due to take place shortly to discuss how to take work forward in this area
  Future Summit Meetings.
  The Council noted that Northern Ireland and Wales are scheduled to host summits in 2003

  British-Irish Council

  22 November 2002

  www.British-IrishCouncil.org

  List of Delegates

  SCOTLAND

  First Minister

  The Rt Hon Jack McConnell MSP

  Minister for Social Justice

  Margaret Curran MSP

  Permanent Secretary, Scottish Executive

  Sir Muir Russell, KCB

  IRISH GOVERNMENT

  Taoiseach

  Bertie Ahern TD

  Minister for Social and Family Affairs

  Mary Coughlan TD

  Minister of State at the Department of Finance with special responsibility for the Office of Public Works

  Tom Parlon TD

  BRITISH GOVERNMENT

  President of the Council and Leader of the House of Commons

  The Rt Hon Robin Cook MP

  Secretary of State for Northern Ireland

  The Rt Hon Paul Murphy MP

  Financial Secretary to the Treasury

  Ruth Kelly MP

  Parliamentary Under Secretary of State at the Northern Ireland Office

  Des Browne MP

  WELSH ASSEMBLY GOVERNMENT

  First Minister

  The Rt. Hon Rhodri Morgan AM

  Deputy First Minister

  Michael German, OBE AM

  Minister for Finance, Local Government & Communities

  Edwina Hart MBE AM

  JERSEY

  President of the Policy and Resources Committee

  Senator Pierre Horsfall OBE

  Chief Executive, Policy and Resources Department

  John Mills

  GUERNSEY

  President, Advisory and Finance Committee

  Deputy Laurie Morgan

  Chief Executive, Advisory and Finance Committee

  Mike Brown

  ISLE OF MAN

  Chief Minister

  Hon Richard Corkill MHK

  Minister for Health and Social Security

  Hon Clare Christian MLC

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Hazardous Waste
  The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)
  As a country we produce a significant amount of hazardous waste each year— some 5 million tonnes in England and Wales alone. Against a background of significant change in the legislation affecting hazardous waste, it is the Government's aim to see that amount reduced, and to ensure that any hazardous waste produced is managed safely.

  To achieve our aims we need to work together with waste producers, the waste management industry, regulators and ensure the views of the public and environmental interests are taken on board.

  I am today announcing, therefore, the proposed membership and draft terms of reference of a new forum to advise on the reduction and safe management of hazardous waste.

  The Forum will have a strategic role of considering the demands on industry of existing and forthcoming legislation, to consider targets for hazardous waste reduction and recovery, and to provide a means for bringing all relevant sectors together to work towards the goals of hazardous waste reduction and managing it safely. It's key objectives will be:

  (A) To advise within 6 months on the way ahead over the next 5 years to achieve hazardous waste reduction and environmentally sound management of such wastes, including advice on key decisions to be made, the timing of those decisions and encompassing consideration of targets for hazardous waste reduction.

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  (B) To identify opportunities to reduce the production of hazardous waste and the recovery of that which is produced.

  (C) To consider the impacts of existing and forthcoming legislation, and advise on the content and dissemination of Government and/or Environment Agency advice and guidance to waste producers and waste managers about that legislation; and

  (d) To provide a better basis for forward planning by providing up to date and reliable data on hazardous waste production and management, and make any relevant recommendations about how data collection and analysis could be improved.

  Membership of the forum is drawn from a wide range of organisations and members are being invited to a first meeting in the next few weeks. Copies of the draft terms of reference of the forum, including a list of the proposed members has been placed in the library of both Houses.

LORD CHANCELLOR'S DEPARTMENT

  Courts Bill
  The Parliamentary Secretary, Lord Chancellor's Department (Yvette Cooper)
  The Courts Bill, which was introduced in the House of Lords last Thursday, includes provisions to enable the government to fulfil the commitment made in the White Paper Justice for All, to establish an executive agency with responsibility for the administration of all the courts in England and Wales, except the House of Lords.

  The Lord Chancellor has today placed in the Libraries of both Houses a statement about the principles which will form the basis of the agency's Framework Document.

TRANSPORT

  London Underground
  The Secretary of State for Transport (Mr. Alistair Darling)
  On 8 May 2002 London Regional Transport signed contracts with the two preferred bidders for the London Underground Public Private Partnerships to modernise the Tube.

  Completion of the contracts was dependent on the satisfaction of various conditions. These included securing approval by the Health & Safety Executive of London Underground's revised Railways Safety Case and the necessary regulatory clearances from the competition authorities.

  With the relevant conditions now satisfied, the two bidding consortia have begun to put in place the necessary finance to enable the contracts to become effective. I expect the Infraco JNP contract (covering the
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  Jubilee, Northern and Piccadilly lines) to come into force at the beginning of next year, and those for Infraco BCV and Infraco SSL (covering the Bakerloo, Central and Victoria lines and the Sub-Surface Lines, respectively) in the Spring.

  One of the pre-conditions for the PPP contracts related to state aid clearance. This was achieved on 2 October when the European Commission adopted a Decision confirming that the notified PPP arrangements did not constitute state aid.

  Commercial agreement between the preferred bidders and London Underground has now been reached.

  The Mayor of London told me shortly after the European Commission announced its Decision that he would not be appealing against it. However, subsequently the Mayor sought and secured authority from the Board of Transport for London to launch an appeal of the Commission's Decision in the European Courts. This latest legal action follows two unsuccessful actions for judicial review in the English courts, the latest of which collapsed during the hearing itself.

  I am not prepared to see this crucial investment delayed while the Mayor of London engages in further legal challenges. I have therefore agreed that London Regional Transport should offer the preferred bidders and their financial backers an indemnity against the material adverse consequences of any legal challenge in relation to the Commission's state aid Decision. I propose in turn to guarantee London Regional Transport's indemnities in accordance with my powers under the London Regional Transport Act 1984.

  I have also agreed against this background that, while the full debt required to fund the bidders 1 obligations will be committed at financial close, London Underground will not require it to be drawn down in the early months of the contract. This will mean bringing forward direct payments by London Underground in the early months of the next financial year. It will not increase the sum of those payments next year, or in any subsequent year.

  The PPP contracts also envisage a statutory Arbiter whose key role is to decide the fair price for work to be undertaken in future years. I can announce today the appointment of Chris Bolt, formerly a Director of Transco pic and of Lattice Group, and a former Rail Regulator, as the PPP Arbiter. He will take up post upon financial close of the JNP contract.

  In the light of recent statements by the Mayor of London which indicate that he may be seeking to challenge the decision of the European Commission that the PPP arrangements do not constitute state aid, it is appropriate for me to set out my intentions regarding the transfer of London Underground to Transport for London under the provisions of the Greater London Authority Act 1999.
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  I do not consider that the transfer of London Underground Limited to Transport for London could take place against the background of threats of further legal challenge by the Mayor of London and/or Transport for London or while such proceedings were in progress.

  When the Mayor withdrew his legal challenge to the PPP arrangements in July this year it was my intention that the transfer of London Underground to Transport for London should take place following the completion of the PPP Agreements. However, I do not think that it would be appropriate for the transfer to take place while the threat of a further legal challenge by the Mayor exists. As I result I do not propose to make any transfer under section 409 of the Greater London Authority Act 1999 of London Underground Limited to Transport for London, nor will I direct London Regional Transport to
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  make any such transfer scheme until after the period for lodging any appeal against the Decision of the European Commission has expired without any such appeal being lodged; and if an appeal is lodged, the appeal having been finally determined.

  The same position applies in relation to any legal challenge in the English Courts.

  The Mayor of London's actions leave me no alternative but to take this course of action. The Tube needs investment— and the PPP means that £6 million a day, £16 billion over 15 years, will go into much needed improvements to the benefit of London.

  In accordance with the guidance set out in Government Accounting, I am today notifying Parliament of the contingent liability arising from my decision to guarantee London Regional Transport's indemnity.