Written Statement of 17 December 2002

TREASURY

  Departmental Investment Strategy White Paper
  The Chief Secretary to the Treasury (Mr. Paul Boateng)
  I am today publishing a White Paper, Departmental Investment Strategies: A Summary, which sets out the Government's investment strategy over the next three years.

  As announced in the 2002 Spending Review, the Government will raise public sector investment by £12 billion over that period, including:
  £3 billion for improved buildings and equipment for our schools;
  £2.5 billion for the NHS to modernise our hospitals and health care facilities;
  £2 billion to invest in transport infrastructure; and
  £1 billion to improve our housing stock.

  The White Paper complements individual departmental investment strategies, to be published shortly by departments themselves, which set out more detailed plans. The purpose of the strategies is to set out:
  the public service outcomes that will be achieved with the new funding committed in the 2002 Spending Review;
  the progress that has been achieved since the last strategies were published in 2000;
  the improvements that departments have put in place to improve the management of the assets they own; and
  the reforms of procedures and systems put in place to get best value for money from the extra spending.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Departmental Scientific and Regulatory Agencies
  The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)
  I announced a review of the three science laboratories, the Veterinary Laboratories Agency (VLA), the Central Science Laboratory (CSL) and the Centre for Environment, Fisheries and Aquaculture Science (CEFAS), and the two regulatory agencies, the Pesticides Safety Directorate (PSD) and the Veterinary Medicines Directorate (VMD) on 26 March 2002,Official Report, column 839W The Review has concluded that overall, the five agencies have performed well and that at present, there is no case for changes to their ownership or structure. The Review makes a number of recommendations with the aim of strengthening the relationship between Defra and the agencies by:
  giving them greater strategic direction for planning and investment, and the systems and freedoms to run their businesses more effectively;
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  linking their work more closely and overtly with Defra's new agenda as a science evidence based department delivering a sustainable development agenda; and
  establishing clearly Defra's corporate ownership role.

  I am making copies of the Report available in the Libraries of both Houses.

  Biological Diversity
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Elliot Morley)
  Section 74 (2) of the Countryside and Rights of Way Act 2000 placed a duty on the Secretary of State to list those habitats and species of principal importance for the conservation of biological diversity in England, in accordance with the United Nations Convention on Biological Diversity 1992.

  I have sought advice from English Nature, our statutory nature conservation advisers on the lists as required by the Act. On the basis of this advice I have today published a list of the habitats and species which the Government considers to be of principal importance for the conservation of biological diversity in England. Copies of the list are available in the Library of the House. Action Plans under the UK Biodiversity Action Plan are already in place or under preparation for all the listed habitats and species.

  'Working with the Grain of NatureߞA biodiversity strategy for England' published on 24 October and also available in the Library of the House, sets out the means by which the Government will comply with its duty under Section 74 to take or promote the taking by others, of steps to further the conservation of the listed habitats and species, including through the continued implementation of the Action Plans.

  The list will be kept under review and a report on any necessary revisions will be made as part of the first report on progress on the Biodiversity Strategy for England in 2006.

  Environment Agency
  The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)
  I have today published the revised statutory Guidance to the Environment Agency under Section 4 of the Environment Act 1995. The Guidance covers the Agency's activities in England. It sets out the statutory objectives which the Agency should pursue over the next few years, advises on its role in contributing to the achievement of sustainable development, and lays down the principles it should follow in deciding its priorities. The Welsh Assembly Government is responsible for issuing guidance to the Agency covering its activities in Wales.

DEPUTY PRIME MINISTER

  New Millennium Experience Company
  The Parliamentary Under-Secretary of State, Office of the Deputy Prime Minister (Mr. Tony McNulty)
  Further to the Prime Minister's response to the Member
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  for South Suffolk on 8 July, Official Report column 749W, Lord Rooker has full responsibility as Minister for the New Millennium Experience Company. The Member for Harrow East (Tony McNulty) will provide support in this House, although without any executive responsibility.

  The shareholding remains with Lord Falconer of Thoroton for the time being, while outstanding litigation is being resolved. It is the intention that the shareholding will transfer to Lord Rooker as soon as the litigation has been resolved. In the meantime, Lord Rooker has been granted power of attorney and any decisions in relation to the Company are being taken by him. Lord Falconer no longer has any Ministerial responsibility for the New Millennium Experience Company.

FOREIGN AND COMMONWEALTH

  Lockerbie
  The Secretary of State for Foreign and Commonwealth Affairs (Mr. Jack Straw)
  I explained to the House on 11 July that I did not see a case for a public inquiry into the Lockerbie disaster, but that I was going to look into whether other arrangements for scrutiny could be established.

  In considering what options might be available to us, we have taken the view that, to be of value, any scrutiny should be able to deliver new and useful conclusions despite the passage of time and the investigations that have already taken place.

  Those previous investigations have been extensive. They include a Fatal Accident Enquiry, the US President's Commission on Aviation Security and Terrorism, a Transport Select Committee Enquiry, various internal Department of Transport reviews of aviation security, and the trial, conviction and unsuccessful appeal of al Megrahi.

  We have concluded that, given the absence of any significant new information, the fact that the key issues have already been extensively explored, and action taken, including substantial changes to airport procedures, it is most unlikely that any further form of enquiry would unearth further lessons to be learned, 14 years after the event, which had not already been identified by earlier investigations.

  The Government have therefore decided not to initiate any further form of review on Lockerbie.

  I explained this decision to the Lockerbie relatives at a meeting in the Foreign and Commonwealth Office on 17 December.

  Ian Stillman
  The Secretary of State for Foreign and Commonwealth Affairs (Mr. Jack Straw)
  Ian Stillman was arrested in 42WS
  India on 28 August 2000 and charged with possessing approximately 20 kgs of drugs. He was convicted on 2 June 2001 and sentenced to 10 years imprisonment. The Indian government offered Mr Stillman clemency and he was released on compassionate and health grounds on 7 December 2002. A condition of his early release was that he leaves India. It is a matter for the Indian government whether he is allowed to return.

  We have been extremely active on Mr Stillman's case and raised it with the Indian government at every available opportunity. Over the last year I have discussed his case with the Indian Ministers on at least six occasions. Recently I raised it with the Indian Deputy Prime Minister, L K Advani on 21 August 2002 and the Indian Foreign Minister on 31 October 2002. Mr Advani said that if Mr Stillman submitted a clemency plea he would consider it sympathetically. I met members of Mr Stillman's family to discuss next steps in the case on 19 November 2002.

  The Prime Minister, Deputy Prime Minister and Mike O'Brien (FCO Minister responsible for India) have also raised Mr Stillman's case with the Indian government. Recently the Prime Minister discussed Mr Stillman's case with Prime Minister Vajpayee on 12 October 2002 and subsequently wrote to him expressing the hope that Mr Stillman be released soon.

  Our consular staff in New Delhi and London have done all they can to help Mr Stillman and his family. We have been in close contact with the latter both in the UK and from time to time in India. Baroness Amos (FCO Minister responsible for consular matters) has taken a close interest in the case and met members of Mr Stillman's family twice this year.

  We took all proper measures to ensure that the Indian authorities were meeting Mr Stillman's welfare requirements during his imprisonment. Consular staff monitored his welfare closely through consular visits (generally every three months) and by keeping in regular touch with his family. We were instrumental in ensuring improvements to many aspects of his detention. These included helping him to be transferred to a prison with better conditions and facilities, ensuring that he was provided with a wheelchair and had better lighting in his cell. Consular staff arranged for a Board of Medical Consultants to examine him at a hospital in May 2002 and also helped secure permission from the prison authorities for medical and prosthetic specialists to visit him in prison. Recently they helped arrange for a diabetic specialist to visit Mr Stillman on 4 November.

  I am very glad that Mr Stillman's case has been resolved. I hope his early release will result in a significant improvement in his health. When I met the Indian Foreign Minister, Yashwant Sinha, in London on 11 December, I expressed my thanks to him and his colleagues in the Government of India for the compassionate action they had taken in securing Mr Stillman's release.

  Recent Changes to Sanctions Regimes
  Angola (UNITA)
  With the support of Her Majesty's Government, the UN Security Council on 18 October 2002 unanimously adopted UN Security Council resolution 1439(2002). The resolution lifted the travel ban on members of UNITA and their immediate families listed in paragraphs 4a and 4b of UN Security Council resolution 1127(1997) from 14 November 2002. The travel ban had been suspended since May, pursuant to UN Security Council resolutions 1412(2002) and 1432(2002).
  Resolution 1439 (2002) also committed the Security Council to review all remaining measures imposed on UNITA by 19 November 2002. Following the review with the support of Her Majesty's Government, the Security Council voted unanimously to adopt United Nations Resolution 1448(2002) on 9 December 2002. This resolution lifted all remaining sanctions measures on Angola (UNITA). This is in recognition of the considerable progress made in Angola since the formal cessation of hostilities on 4 April 2002, and the broad fulfilment of the tenets of the Lusaka Peace Protocol by UNITA.
  Sierra Leone
  With the support of Her Majesty's Government, the Security Council voted unanimously to adopt resolution 1446(2002) on 4 December 2002. The resolution extended the embargo on the export of rough diamonds without a Certificate of Origin, controlled by the Government of Sierra Leone. This extension will allow the Government of Sierra Leone to extend and consolidate their authority over the diamond-mining fields in the country.
  Democratic Republic of Congo
  With the support of Her Majesty's Government, the General Affairs and External Relations Council of 22 October agreed Council Common Position 2002/829. The European Union introduced an embargo on the export of arms to Zaire (now the Democratic Republic of Congo) in 1993 pursuant to an EU declaration of 7 April 1993. The Common Position (2002/829) amends the scope of that arms embargo by providing that the arms embargo does not apply to temporary exports for personal use of United Nations personnel; and does not prohibit the export of non-lethal military equipment with a legitimate humanitarian use to representatives of the media and humanitarian and associated personnel, or equipment to be used for the clearance and destruction of anti-personnel landmines.
  Burma
  With the support of Her Majesty's Government, the General Affairs and External Relations Council of 22 October agreed Council Common Position 2002/831. The Common Position extends EU sanctions against Burma for a further six months. The Common Position and the accompanying Council Regulation also update
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  the list of individuals subject to EU sanctions to take account of recent changes to the Burmese military regime.

TRADE AND INDUSTRY

  Nuclear Legacy
  The Minister for Energy and Construction (Mr. Brian Wilson)
  A summary of the responses has been published in line with the White Paper commitment to openness and transparency. Copies are available in the Library and on the DTI website at www.dti.gov.uk/ energy/nuclear/index.shtml. The responses show strong support for the approach set out in the White Paper and, in particular for the Government's commitment to driving forward work on legacy clean up. As announced in the Queen's Speech, draft implementing legislation will be published in the Spring.

  Small Business Support
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  The Small Business Service (SBS) is today publishing a new policy framework for small business entitled 'Small Business and Governmentߞthe Way Forward'. I am placing copies in the Libraries of both Houses.

  The framework represents a focusing of the Government's small firms policy on seven core themes: building an enterprise culture; encouraging a more dynamic start-up market; building the capability for small business growth; improving access to finance for small businesses; encouraging more enterprise in disadvantaged communities and under represented groups; improving small businesses experience of Government services; and developing better regulation and policy. These will be built into seven national strategies to make a reality of the Government's vision for the small business sector. The Government wants more people to have the ambition of starting their own business, and for all those who take that step to have every chance of succeeding. Our aims are:
  Many more people, regardless of their background, having the desire, skills and opportunity to start a successful business;
  Everyone with the ambition to grow their business being helped and supported;
  A supportive business environment with all small businesses finding it easy to respond to Government and access its services.

  The framework is designed to ensure a coherent engagement between the whole of Government and the small business sector. It stresses that small businesses are the responsibility of all of Government and not just one Department. All parts of Government will have contributions to make to the seven strategies.

  The framework envisages a strong role for the SBS as a centre of expertise on small business issues based on its experience of delivering services to this particular community and its extensive research base and network of contacts. This expertise will be used by the whole of Government in developing policies and services which affect small businesses.
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  The policy framework follows on from the joint Treasury and SBS paper, 'Enterprise Britain: a modern approach to meeting the Enterprise Challenge' published in November 2002.

  ECGD Trading Fund
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  I informed the House on 22 July 2002, Official Report columns 779–780W, that Ministers had decided that ECGD should proceed to Trading Fund status. I also reported that I had asked ECGD to improve its customer care for new customers and make it easier for them to access its support.

  I am pleased to be able to announce that work is well underway between ECGD and HM Treasury to agree the policy and objectives, financial and regulatory frameworks and operational details of a Trading Fund, with a view to an effective operational structure being put in place as soon as possible.

  The aim is to complete this work by the summer recess, which will enable a consultation paper to be launched in September 2003 to ensure that the views of ECGD's customers and other stakeholders are fully taken into account. A pilot Trading Fund will also be launched in September, or as shortly thereafter as practicable, which will provide valuable operational experience which, together with responses to the consultation, will inform the final decisions on a statutory Trading Fund framework.

  Subject to these decisions, it is planned to effect the formal establishment of the statutory Trading Fund by no later than April 2005.

  ECGD established a dedicated New Customer Service Team in November. This is already providing a valuable point of contact between ECGD and exporters who had never previously used its services by helping them through the export finance process.

  ECGD is committed to providing a first class service to UK exporters and investors. I want it to offer a service that puts it amongst the best export credit agencies in terms of innovation, flexibility and product quality. Proceeding to Trading Fund status should provide a robust platform for ECGD to achieve both its business and financial objectives and secure its future as an important provider of support for UK exporters and investors.

  British Electricity Trading and Transmission Arrangements
  The Minister for Energy and Construction (Mr. Brian Wilson)
  Licensing of the GB system operator cannot take place until the necessary legislation has received Royal Assent. I am minded to accept the recommendation of the GB system operator Selection Panel, that The National Grid Company plc's application for the role of GB system operator should be accepted.

DEFENCE

  Missile Defence
  The Secretary of State for Defence (Mr. Geoffrey Hoon)
  I have today received a letter from United States Secretary of Defense, Donald Rumsfeld, requesting UK agreement to upgrade the Early Warning Radar at RAF Fylingdales for missile defence purposes.

  As set out in the discussion paper published on 9 December, the Government believes that the developing ballistic missile threat is one that we must take very seriously. We assess that at present there is no immediate significant threat to the territory of the UK from ballistic missiles. However, intentions can change quickly, and the proliferation and development of weapons of mass destruction and ballistic missiles is continuing. We could not wait until a specific threat became clear before determining how to defend against it.

  The US is looking to work closely with friends and allies in developing defences which enhance global security in the face of this potential threat. As well as improving US defence, an upgraded Fylingdales radar would be a key building block in the extension of missile defence to Europe, should we and other European Allies so desire. In this context, Mr Rumsfeld's letter contains the undertaking that, if Fylingdales were to be upgraded, and should we desire it, then the US would be prepared to extend missile defence coverage and make missile defence capabilities available to the UK as the evolution of the US system permits, subject to agreement on appropriate political and financial arrangements.

  RAF Fylingdales has operated since 1963 as one of several sites which provide early warning of ballistic missile launches against this country, Western Europe or the United States. The station is under UK operational command, and the data it produces is shared between the UK and US military authorities. The upgrade requested would enable the system to track ballistic missiles more accurately, so that they could be engaged by interceptors, in addition to the radar's existing role. I understand that a parallel request has been made to the Danish Government for upgrade of the radar at Thule, Greenland.

  The US propose no change to existing arrangements for data-sharing and operational command at Fylingdales, maintaining the long-established principle of joint decision-making relating to the use of US strategic assets based in the UK. It is expected that the work would involve installation of new computers and software, and an additional communications link. No material environmental impact would be expected, but this will need to be confirmed in further discussions with the US and local planning authorities. The US would hope to start work later next year, and will accordingly make contingency provision in their defence budget.

  Mr Rumsfeld's letter also proposes the early conclusion of a new bilateral Research, Development, Test and Evaluation Memorandum of Understanding, to ensure that the UK, both government and industry, have the fullest possible insight into, and opportunity for involvement in, the missile defence programme. I

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  believe this represents an important industrial and technological opportunity for the UK regardless of our response to the US request.

  The decision on Fylingdales upgrade will be an important one, and the Government is keen for it to be informed by public and Parliamentary discussion. We shall ensure that this House has appropriate opportunities to discuss the issues in the New Year.

  The Government will now consider the US request very seriously, agreeing to it only if we are satisfied that it will ultimately enhance the security of the UK and the NATO Alliance. I will make a further statement in due course.

  Depleted Uranium Pilot Study
  The Parliamentary Under-Secretary of State for Defence (Dr. Lewis Moonie)
  I announced on I May 2002 (Official Report, column 792W) to my hon Friend the Member for Broxtowe (Dr Palmer) that contracts had been placed with five independent laboratories to carry out a pilot study to examine different methods of determining the Depleted Uranium content in urine. This study, which was to be carried out under the auspices of the independent Depleted Uranium Oversight Board (DUOB), would examine a number of different methods and establish whether a suitably, accurate, precise and sensitive test was available. Subject to its outcome, I hoped that a test could be made available to serving personnel and veterans in October 2002.

  The pilot study is now complete, and has unfortunately produced inconclusive results. This is likely to be as the result of inadvertent contamination of the spiked urine samples used in the study. The DUOB has decided that a second stage of the pilot study is therefore required. This will involve the three laboratories whose results in the first phase were most consistent.

  A detailed protocol for the creation of the spiked samples has been produced by the technical experts of the DUOB in consultation with these three laboratories, designed as far as possible to avoid contamination in the second stage.

  We expect to place contracts for the second stage in January 2003, with the results of the study expected in April. Subject to satisfactory results from the pilot exercise, we expect to be able to make the test available towards the end
  of the first half of 2003

LORD CHANCELLOR

  Data Protection
  The Parliamentary Secretary, Lord Chancellor's Department (Yvette Cooper)
  The Data Protection (Processing of Sensitive Personal Data) (Elected Representatives) Order 2002 comes into force today. The Order allows Members of this House and other elected representatives to deal with constituency cases involving individuals' sensitive personal data without having to seek the individuals' explicit consent. The Order does not otherwise remove the duty to comply 48WS
  with the requirements of the Data Protection Act 1998. The Order applies to information about individuals' racial or ethnic origin, political opinions, religious beliefs, trade union activity, health, sex life and criminal activity. I understand that officials of the House are preparing guidance on the Order.

HOME DEPARTMENT

  Race Equality (Scotland)
  The Minister for Citizenship and Immigration (Beverley Hughes)
  An Order under Section 71C of the Race Relations Act 1976 (as amended) has today been laid before Parliament. The Order brings into effect, the Code of Practice on the duty to promote race equality in Scotland. It offers practical guidance to Scottish public authorities on how to meet their duty to have due regard to the need to eliminate unlawful racial discrimination and promote race equality and related duties.

  The Statutory Code of practice on the duty to promote race equality in Scotland will come into effect on 19 December 2002.

  Women's Royal Voluntary Service Office Premises Ltd.
  The Secretary of State for the Home Department (Mr. David Blunkett)
  WRVS (Women's Royal Voluntary Service) Office Premises Ltd currently owns 147 properties (valued by WRVS at £2,904,089) and other assets derived from the proceeds of the sale of properties and other assets (£6,222,436) (mainly the proceeds of the earlier sales of properties) on trust for the Home Secretary.

  An independent review of WRVS in 1997 identified that WRVS' financial dependence on Government and restrictions on its property holdings were major barriers to its goals of modernisation and independence.

  I gave Parliament 14 days notice on 4 November 2002 by means of a Departmental minute that to help WRVS achieve these goals I will give the reversionary interest in the properties and other assets held on trust to WRVS Office Premises Ltd absolutely (total value £9,126,525) and subject to annual Parliamentary approval gradually reduce the grant-in-aid received by WRVS in 2002ߝ3 of £4.2 million to £1 million a year by 2007ߝ08.

TRANSPORT

  London Underground
  The Secretary of State for Transport (Mr. Alistair Darling)
  This statement is in response to Early Day Motion 285 which expressed concerns about the contingent liability in respect of the London Underground PPP notified by my Minute of 4 December.

  The contingent liability would crystallise only in the event that the Mayor of London proceeds with his legal challenge to the plans, and in the event that any successful challenge has a material adverse effect on an Infrastructure Company. Significant risk is transferred

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  to the private sector under the London Underground PPP. Should the contingent liability materialise, the amounts payable will in large part be attributable to
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  paying for the investment that has already been undertaken under the PPP contracts and has gone into the Tube.