Written Statement of 1 December 2003

NORTHERN IRELAND

  Fisheries Conservancy Board for Northern Ireland (Annual Report and Accounts)
  The Parliamentary Under-Secretary of State for Northern Ireland (Angela Smith)
  Copies of the Fisheries Conservancy Board for Northern Ireland's annual report and accounts for the year ended 31 December 2002 have been placed in the Libraries of both Houses.

  This document provides details of the Board's fisheries conservation and protection activities, its performance, and its expenditure for that year.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Departmental Expenditure Limit
  The Minister for Rural Affairs and Local Environmental Quality (Alun Michael)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Environment Food and Rural Affairs DEL will be increased by £230,638,000 from £2,805,184,000 to £3,035,822,000 and the administration costs limits will be increased by £7,560,000 from £532,910,000 to £540,470,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  £000s

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  164,459

  2,303,085

  505,563

  2,808,548

  Capital

  66,179

  332,745

  75,745

  408,490

  Depreciation*

  -

  -83,495

  -97,721

  -181,216

  Total

  230,638

  2,552,335

  483,487

  3,035,822

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from:
  (i) a take up of end-year flexibility of £82,043,000 programme resources and £1,453,000 administration resources as set out in the Public Expenditure 2002–2003 Provisional Outturn Paper (Cm5884); (ii) a transfer to ODPM of £1,600,000 programme resources (which includes £85,000 non-Voted resources) for Ordinance Survey; (iii) a switch of £6,780,000 capital resources to administration resources as agreed by HMT; (iv) a transfer of £2,315,000 administration resources to ODPM for Government Offices' running costs; (v) a transfer of £1,000,000 programme resources to DFID for environmental projects; (vi) a take-up of £524,000 programme resources from DTI for the Red Meat Industry Forum; (vii) a transfer of £67,000 programme resources to FCO for UNCLOS; (viii) a transfer of £4,000,000 programme resources to HMC&E for illegal imports; (ix) a transfer of £1,500,000 programme resources to FSA for illegal imports; (x) a take up of £1,500,000 administration
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  resources and £82,500,000 programme resources for Waste Implementation as agreed by HM Treasury; (xi) a take up of £60,000 administration resources from ODPM for Local Government PSAs; (xii) the increase in Administration resources and appropriations-in-aid by £300,000 for milk quota lease recoveries; (xiii) the increase in programme resources and appropriations-in-aid by £2,983,000 for OTMS Tallow recoveries; (xiv) a take up £5,000 administration resources front ONS for Neighbourhood Statistics programme; (xv) a take up of ޣ7,000 administration resources from HMC&E or Receipt Verification work.

  Our total end-year flexibility claim for resources of £83,496,000 includes £52,593,000 former capital grants (now classified as resource under Stage 2 Resource Accounting rules), as agreed with Treasury.

  The change in the capital element of the DEL arises from:
  (i) a take up of end-year flexibility of £72,959,000 capital resources as set out in the Public Expenditure 2002–2003 Provisional Outturn Paper (Cm5884); (ii) the switch of £6,780,000 capital resources to administration resources as agreed by HM Treasury.

  Our total end-year flexibility claim for capital of £72,959,000 excludes £52,593,000 former capital grants (now classified as resource under Stage 2 Resource Accounting rules), as agreed with Treasury.

INTERNATIONAL DEVELOPMENT

  Humanitarian Situation in Southern Africa
  The Secretary of State for International Development (Hilary Benn)
  The humanitarian crisis that has affected six countries in Southern Africa (Lesotho, Malawi, Mozambique, Swaziland, Zambia and Zimbabwe) since September 2001 has eased in recent months. Emergency operations have largely ended in Malawi and Zambia and are working on a reduced scale in Swaziland. The position in Zimbabwe remains very serious and, while there are also significant needs in Lesotho and Mozambique, these too are now on a much smaller scale.

  Efforts to support recovery operations are either underway or being planned in all six countries and DFID is examining, with partners, what further actions we can take to reduce hunger and vulnerability in the region in the long term. These efforts will need to take careful account of the widespread impact of HIV/AIDS in Southern Africa.

  Humanitarian needs are greatest in Zimbabwe, largely caused by the Zimbabwe Government's disastrous policies. Foreign exchange shortages have meant that the Government of Zimbabwe has been unable to import significant volumes of food and seeds for planting, and the Government continues to prevent the private sector from importing or marketing grain. Rampant inflation and increasing unemployment has meant that few people are able to purchase the limited food available in the market. Though the needs of displaced former commercial farm workers and their families have yet to be assessed accurately, it is estimated up to half a million of them are in need of assistance. The economic collapse means that urban areas are also badly affected and vulnerability levels in the major centres have been rising steadily. A further assessment of needs

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  in urban areas will be published shortly. In total, half the population of Zimbabwe—around five and a half million people—are likely to need food aid over the coming months.

  There has long been concern about possible interference by the Zimbabwe Government with international food aid programmes. It is the agreed policy of the World Food Programme and other donor agencies working in Zimbabwe that relevant operations will be suspended in the event of such political interference. There have, however, been no significant incidents of this kind in recent months and no suspensions have therefore been needed. Minor incidents have occurred periodically but all of these have been investigated and resolved with local authorities using agreed procedures. By contrast, food distribution controlled by the Zimbabwe Government through the state Grain Marketing Board is not subject to the same monitoring procedures and there is evidence that it is distorted for political reasons.

  In Mozambique, while harvests in the North remained good, there has been near total crop failure in many Southern and Central districts as a result of poor rainfall last year. This has affected about 650,000 people who are in need of food and other assistance.

  In Lesotho, crop failure has also affected a significant part of the population with up to 700,000 people estimated to be affected following the failure of the winter harvest. There are considerable problems of access to many of the most vulnerable populations, many of whom comprise growing numbers of orphans and child-headed households.

  To address these needs DFID will be spending over £40 million this year on immediate humanitarian assistance in the Southern African region. This builds on the £125 million that the Government has already spent since September 2001. The vast majority of the new funds this year (£35 million) will be for humanitarian assistance operations in Zimbabwe. We have also provided £3.5 million to fund emergency operations in Mozambique and Lesotho and are continuing to monitor the position in those countries closely. Resources are being channelled through the main UN agencies, notably the World Food Programme, as well as through a range of NGOs to support emergency feeding and nutrition programmes. We have also provided £500,000 for enhanced monitoring of food aid deliveries and beneficiary selection procedures in Zimbabwe. In Mozambique, DFID will also be supporting efforts led by the Ministry of Agriculture to better target humanitarian assistance in addition to providing immediate food aid and nutritional support. We are also providing £1.5 million to the UN's regional co-ordination and support office in Johannesburg to help the UN's regional planning and improve its country programmes in affected countries. The World Food Programme has responded to the concerns of DFID and other donors, as well as partner governments by stepping up efforts to increase the amount of food that it purchases in local markets. They and others are working to address remaining barriers, including import restrictions between countries in the region.
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  Pockets of vulnerability remain in Malawi and Zambia, but we have seen important improvements in the food security situation in both countries over the past few months. Strategic grain reserves have recovered and these will need to be carefully managed. In Malawi, our support for subsidised inputs programmes continues to provide affordable seeds and fertilisers for poorer households, enhancing household food security and allowing them to grow maize that can offer an alternative to imported commodities. In Zambia, maize is both available and accessible.

  Food security will continue to be a concern throughout the region for the foreseeable future, especially given indications that vulnerability is increasing, partly due to the high rates of HIV/AIDS in Southern Africa. DFID is developing a regional hunger and vulnerability strategy for working with national Governments and regional institutions to promote food security in the future in ways that both protect and promote livelihoods for the most vulnerable communities.

  UK Call for Action on HIV/AIDS
  The Parliamentary Under-Secretary of State for International Development (Mr. Gareth Thomas)
  The Government is publishing today "World AIDS Day, the UK's Call for Action on HIV/AIDS". A copy is being placed in the Library of the House.

  The call for action is the first step in increasing the UK Government's effort to tackle HIV/AIDS and global poverty eradication. It signals our intention to work for a deeper, more sustained and better coordinated international response involving high-level political leadership, pressing for more resources to be made available, and working together more effectively with other donors. We will make HIV/AIDS—with Africa—a centrepiece for our Presidencies of the G8 in 2005 and of the EU in the second half of 2005.

  We are calling on the international community to work better together to achieve real progress towards the international targets for HIV/AIDS, in particular:
  Twenty five per cent fewer young people to be infected with HIV/AIDS by 2005;
  Three million people—2 million in Africa—to be receiving treatment by the end of 2005; and
  One national strategy, one national AIDS commission and one way to monitor and report progress in every country affected by HIV (the "Three ones").

  This is a challenge we must all rise to, both here and internationally; governments, parliaments, NGOs, the private sector and the public. We are inviting comments from interested bodies and individuals on the Call for Action and these can be sent to: AIDS@dfid.gov.uk.

SOLICITOR-GENERAL

  CPS Autumn Performance Report
  The Solicitor-General (Ms Harriet Harman)
  The Crown Prosecution Service (CPS) autumn performance report has today been published and laid before Parliament.

  Copies have been placed in the Libraries of both Houses.

WORK AND PENSIONS

  Social Fund Commissioner
  The Secretary of State for Work and Pensions (Mr. Andrew Smith)
  I am pleased to announce that Sir Richard Tilt has agreed to serve as Social Fund Commissioner for Great Britain and Northern Ireland for a further period of three years from 1 December 2003.

  Housing Benefit Subsidy Reform
  The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond)
  I am pleased to report to the House the outcome of our review of how we fund local authorities for the cost of paying housing benefit and council tax benefit. This forms part of our overall programme of housing benefit reform.

  My right hon. Friend the Minister for Local Government, Regional Governance and Fire, reported to the House on 19 November, Official Report, columns 787–89, that we had agreed with local government that it would be sensible to rationalise the funding of housing and council tax benefit subsidy. He went on to say that in implementing that transfer of responsibility we had ensured that all properly made claims will be fully funded.

  The outcome of the subsidy review, and the associated transfers of funding, is that the Department for Work and Pensions will from April 2004 be responsible for funding local authorities for the payments of housing benefit and council tax benefit they make, replacing a complex set of arrangements whereby funding came from various different sources.

  The Local Government Act 2003 provides for the funding of rent rebates to be taken out of the housing revenue account. As a result, we will transfer responsibility for payment of rent rebate subsidy from the Office of the Deputy Prime Minister and National Assembly for Wales to the Department for Work and Pensions from 2004–05. This Department is already responsible for rent rebate subsidy in Scotland.

  The Department will also take responsibility from April 2004 for those residual elements of rent allowance and council tax benefit subsidy currently paid to local authorities by the Office of the Deputy Prime Minister, the Welsh Assembly and the Scottish Executive.

  Bringing all these disparate funding streams together has provided the opportunity for a full review of the subsidy system. The aims of the review were to achieve greater simplification and rationalisation, reduce burdens on local authorities, achieve fairer incentives for performance, and achieve a cost-neutral streamlined system.

  As a result, I am pleased to report to the House that, for all payments of housing benefit and council tax benefit across Great Britain,100 per cent. subsidy will be paid for all correctly paid benefit, and the subsidy rate for properly backdated claims will increase from 50 per cent. to 100 per cent.
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  In addition, we will introduce a new performance-related way of funding local authorities for specified overpayments, linked to an authority's achievements against thresholds set by DWP. Local authorities will also be paid a contribution towards the cost of discretionary local schemes in respect of war pensions disregards.

  A transitional protection scheme will also apply, designed to cushion the impact on local authorities of implementing the subsidy reform package.

  Finally, we are planning to produce a new subsidy claim form combining all subsidy claims.

  We are confident that these reforms will bring welcome rationalisation of the highly complex arrangements inherited by this Government.

TRADE AND INDUSTRY

  British Energy
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  On 18 September 2003,Official Report, column 62WS, I informed the House that British Energy had made a further drawing on the credit facility following its repayment of all outstanding amounts in March. On 14 October 2003, Official Report, column 11WS, I informed the House that the company had formally agreed with creditors the terms of its proposed restructuring.

  British Energy has subsequently asked for the maximum amount available under the facility to be increased from £200 million to £275 million. I am advised by the company that the principal reasons for this request are the costs of unplanned outages at Sizewell B and Heysham 1 and the impact of current volatility in wholesale electricity prices (increasing both the required levels of trading collateral and the cost of the unplanned outages) which have had an adverse impact on the company's liquidity.

  We and our advisers have considered British Energy's request carefully. This is the first opportunity I have had to inform the House that, in the light of that consideration, I have confirmed to the company that I will increase the maximum amount available under the facility to the amount requested, subject to the condition that the increase will be limited to the period prior to the expected receipt of the proceeds from the sale of the company's interest in Amergen, or 22 February 2004, if earlier, whereafter it will be reduced to £200 million.

  The increase in the facility is within the rescue aid ceiling approved by the European Commission last year, although as a matter of courtesy my officials are informing the Commission. The stringent controls governing drawings on the facility by British Energy remain in place, and the company's obligations under the credit facility agreement continue to be secured by charges over the British Energy Group's assets. We continue to expect any drawings on the facility to be repaid in full, including interest, as soon as the company is in a position to do so.
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  As I have previously informed the House, if the Government are not satisfied that British Energy will be viable in all reasonable foreseeable conditions, or if there is a material adverse change in British Energy's position, the Government have reserved the right to withdraw its support for the restructuring. The Government remain ready for administration if any of the restructuring conditions are not met.

CONSTITUTIONAL AFFAIRS

  Departmental Report 2003
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. Christopher Leslie)
  The Department for Constitutional Affairs published its Autumn Performance Report for 2003 today. Copies of the Report have been placed in the Libraries of both Houses.

CABINET OFFICE

  Sickness Absence (Civil Service)
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander)
  The report "Analysis of Sickness Absence in the Civil Service 2002" prepared for the Cabinet Office by Aon Ltd. shows that the headline figure for the average level of sickness absence across the civil service in 2002 was 9.8 days per staff year. The report contains a comprehensive analysis of the 2002 figures by department/agency.

  Departments have established Service Delivery Agreements, which contain their individual targets for reducing sickness absence. Overall, the Civil Service has a target to reduce sickness absence by 30 per cent. by 2003 against the 1998 baseline. The Cabinet Office is continuing to work with other departments and agencies as they take forward their plans to reduce sickness absence and meet their individual targets.

  I have placed copies of the Aon report in the Libraries of both Houses.

HOME DEPARTMENT

  Criminal Records Bureau
  The Minister for Crime Reduction, Policing, and Community Safety (Ms Hazel Blears)
  I have today placed in the Library of the House a copy of a consultation paper on draft regulations to be made under part 5 of the Police Act 1997 aimed at strengthening the role of Registered Bodies in the Disclosure process. Responses to the consultation are invited by 23 February 2004.

  The draft regulations will be made under new powers conferred by the Criminal Justice Act 2003. These implement key recommendations of the Independent Review Team appointed, in September 2002, by my right hon. Friend the Home Secretary to take a fundamental look at the operations of the Criminal Records Bureau. In particular, the Review Team
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  recommended that the critical role of Registered Bodies in the Disclosure process should be upgraded by making them unambiguously responsible for validating the identity of Disclosure applicants and for ensuring that application forms are fully and accurately completed. The draft regulations achieve these objectives by attaching conditions to registration; were such conditions are breached the provisions in the Criminal Justice Act will enable a Registered Body's registration to be suspended or revoked.

  The Criminal Records Bureau will put in place a Registered Body assurance team to improve the level of training and support to Registered Bodies to help them meet the standards expected of them. To meet the cost of managing and supporting the Registered Body network, the draft regulations provide for Registered Bodies to pay an annual fee of £300. The consultation paper invites views on alternative means of funding the Registered Body assurance team.

  By raising the professionalism of Registered Bodies in this way we can further improve the efficiency and effectiveness of the Disclosure process. The performance of the CRB has improved considerably over the past year. It now has the capacity to process over 50,000 Disclosure applications per week, double the number of summer 2002, and is consistently meeting its service standards of issuing 90 per cent of Standard and Enhanced Disclosures within 2 and 4 weeks respectively. Moreover, the CRB has now taken on the processing of some one quarter of a million applications from staff working in the care sector.

  The Government has previously made clear that the CRB must be self-financing from 2005–06. As the CRB moves towards full cost recovery, it is necessary to reduce (from £18.8 million in 2003–04 to £8.1 million in 2004–05) the substantial subsidy the Bureau currently receives from the general taxpayer and make a compensating increase in the Disclosure fee. From 1 April 2004 the fee for an Enhanced Disclosure will be £33 and for a Standard Disclosure £28. The fee payable by a Registered Body for registering an additional counter-signatory will be increased to £33. Disclosures will continue to be issued free to volunteers, saving the voluntary sector some £12 million in 2004–05.

FOREIGN AND COMMONWEALTH AFFAIRS

  Entry Clearance
  The Secretary of State for Foreign and Commonwealth Affairs (Mr. Jack Straw)
  I am pleased to announce the appointment of Ms Fiona Lindsley as the new Independent Monitor for Entry Clearance Refusals without the Right of Appeal. Her appointment is for two years. Ms Lindsley brings a wealth of experience in the immigration field. The Under-Secretary of State, my hon. Friend the Member for Sunderland, South (Mr. Mullin). and I look forward to working closely with her to ensure that we are offering a fair service to our visa clients.

  I should also like to take the opportunity to acknowledge the excellent work undertaken by Rabinder Singh QC, the previous Independent Monitor.
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  I should also inform the House that the Independent Monitor's report for 2003 (which covers decisions taken in 2002) has been delayed because of the lengthy recruitment process. Ms Lindsley has agreed to
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  complete it by 3 May 2004 and I shall of course present it as usual to the House. The timetable for the 2004 report remains the same, and will be available by 30 November 2004.