Written Statement of 25 February 2003

HOME DEPARTMENT

  Juvenile Reconviction Rates
  The Parliamentary Under-Secretary of State for the Home Department (Hilary Benn)
  The Home Office is today publishing its second annual report on juvenile reconvictions. The report, prepared by Research, Development and Statistics Directorate, covers the reconvictions within one year of juvenile offenders dealt with between January and March 2001. The proportion reconvicted has been cut by 22.5 per cent. compared with 1997, and this exceeds the Public Service Agreement (PSA) target of a 5 per cent. reduction by 2004. I would like to congratulate the Youth Justice Board and the other services involved in youth justice for this excellent result. I am placing a copy of the report in the Library.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Duty of Care Regulations
  The Minister for the Environment (Mr. Michael Meacher)
  The Duty of Care Regulations 1991 have been amended to give waste collection authorities (WCAs) the power to serve notices on businesses, requiring them to furnish the WCA with their duty of care records. This will help WCA officers to check whether businesses are transferring their waste in accordance with the law. Businesses that do not have such arrangements could be prosecuted.

  This measure should help to reduce the level of commercial and industrial waste that is fly tipped. It will also assist waste collection authorities in pursuing fly tipping offences as, in some circumstances, it will be possible for the fly tipped waste to be traced back to the originator of the waste.

  The Environmental Protection (Duty of Care) (England) (Amendment) Regulations 2003 came into force on 20 February.

  Vulnerable Groups Consultation Paper
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Elliot Morley)
  I have today issued a consultation paper "Reductions for vulnerable groups", which invites views from individuals and organisations on the Government's proposals for amending the protection offered to vulnerable metered water customers under the Water Industry (Charges) (vulnerable Groups) Regulations 1999.

  The current regulations offer assistance, in the form of a capped bill, to certain low-income households with water meters who need to use a great deal of water for essential household purposes. To qualify, a household
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  must be in receipt of an income-related benefit, and contain either a large family, or a person who has special water needs because of a medical condition. The current definition of a large family is three or more children under the age of 16 years, while a medical condition is defined in the regulations. The cost of this tariff is borne by other customers.

  The consultation paper discusses a range of options for amending the regulations to improve the protection of vulnerable households. The main recommendations are to extend assistance to include children up to the age of 18, instead of 16 as at present, and to extend the list of qualifying medical conditions.

  The consultation will run for twelve weeks and will end on Friday 9 May. Following this we shall consider all the responses and will publish the Government's response to consultation along with a regulatory impact assessment. Any changes made to the regulations as a result of the consultation will come into effect on 1 April 2004.

  Animal Movements
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Elliot Morley)
  The Government are publishing today the emerging findings from the risk assessment and cost benefit analysis of animal movement standstills. The studies were commissioned in response to the recommendations made in July 2002 by the Lessons Learned and Royal Society Inquiries and have been carried out for Defra by Risk Solutions and the Veterinary Epidemiology and Economics Research Unit (VEERU) at the University of Reading.

  On 23 January 2003, Official Report, columns 20–24WS, the Government announced the intention to reduce the standstill for cattle, sheep and goats to six days with effect from 4 March. A supporting document explaining that decision, and referring to the emerging findings from the Risk Solutions and VEERU studies, has already been placed in the Library and posted on the Defra website.

TREASURY

  Cash Ratio Deposits Review
  The Paymaster General (Dawn Primarolo)
  Cash Ratio Deposits (CRDs) are non-interest bearing assets deposited with the Bank of England by banks and building societies. They are used by the Bank to finance its unremunerated activities, in particular its efforts to secure price stability and the stability of the financial system in general, from which these institutions are key beneficiaries.

  The CRD scheme was extended to include building societies, and was placed on a statutory basis, when the Bank of England Act became law in 1998. At the time the Government, in the Treasury's response to consultation (published on 20 April 1998) made a commitment to review the new scheme within five years of its application. The Treasury, working closely with the Bank, will begin that review today.
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  The review will include an assessment of the detailed arrangements of the scheme as well as the continuing suitability of the scheme itself compared to alternative sources of funding. It will also address the impact of the scheme on the eligible institutions. The review will conclude in May, and we will publish the broad conclusions in a statement to the House shortly afterwards.

  Inheritance Tax
  The Paymaster General (Dawn Primarolo)
  The Inland Revenue's Extra Statutory Concession F7 allows exemption from inheritance tax for works of art when they are only chargeable under strict law because they have been brought temporarily to the United Kingdom for cleaning or restoration, or for loan to an exhibition. That reflects a longstanding judgement that the public interest would not be served if foreign owners of works of art were unwilling to send them to the United Kingdom for these purposes for fear of a potential inheritance tax charge.

  Similar disincentives can arise, outside the terms of the existing Concession, when foreign-owned works of art are kept in the United Kingdom for these reasons when they would otherwise have been taken elsewhere. That could occur, for example, where a work is already in the United Kingdom when it is first acquired by a foreign buyer, and the new owner allows a period of loan to a public collection here before taking it to a permanent home abroad.

  I have therefore agreed that the Concession should be extended to cover such circumstances.

  The revised concession (added words in bold) is as follows: "Where a work of art normally kept overseas becomes liable to inheritance tax on the owner's death solely because it is physically situated in the United Kingdom at the relevant date, the liability will—by concession—be waived if the work was brought into the United Kingdom solely for public exhibition, cleaning or restoration. The liability will similarly be waived if a work of art which would otherwise have left the United Kingdom to be kept overseas is retained in the United Kingdom solely for those purposes. If the work of art is held by a discretionary trust (or is otherwise comprised in settled property in which there is no interest in possession), the charge to tax arising under Section 64 IHTA 1984 will, similarly, be waived."

  Financial System (Major Operational Disruption)
  The Financial Secretary to the Treasury (Ruth Kelly)
  I am today publishing a Green Paper, The Financial System and Major Operational Disruption. Copies are available in the Vote Office and in the libraries of both Houses. The document is available online at the Treasury website:www.hm-treasury.gov.uk/. The 11 September attacks on the United States caused terrible loss of life and physical damage. They also showed the problems that physical disruption on such a scale brings for the financial system—as exemplified by the four-day closure of the New York Stock Exchange.
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  Financial services play a vital role in the UK economy. This makes it particularly important to be sure that we have good arrangements to maintain the financial system's resilience during major operational disruption. While the main responsibility lies with the financial sector itself, HM Treasury, the Bank of England and the Financial Services Authority are working together, and with the private sector, to help strengthen resilience.

  This consultation asks if new statutory powers should be sought to assist in promoting order in the financial system in extreme circumstances of operational disruption. The Government are seeking views on whether such legislation would be justified by the nature and scale of the threat. The consultation also requests comments about additional ways in which the financil authorities could usefully assist the private sector's work in making financial markets more resilient.

  The consultation closes on 25 April. If the Government considers it appropriate to seek legislation, further consultation would follow.

  Self-Assessment Returns
  The Paymaster General (Dawn Primarolo)
  I can today publish figures for the number of Self-Assessment returns filed by the 2003 January deadline.

  The Inland Revenue has met its SDA target of 90.5 per cent. of SA taxpayers filing their 2001/02 tax return on time. The Department achieved 90.54 per cent.:
  8.371,251—returns were received, out of 9,246,131 issued The number of returns filed electronically rose significantly. At 31st January 2003, around 700,000 had been received electronically. 325,000 of these were received from Internet filers, compared with around 75,000 in the same period last year. The remainder were received from agents using the Electronic Lodgement Service (ELS).
  Activities that helped the department to meet the target were:
  an extensive media campaign, involving TV, radio and newspaper ads front-line staff reminding people about the deadline in day-to-day contact with customers phoning a quarter of a million (mainly new-to-SA) customers to remind them about the deadline, and offer help.a News Release in the run-up to the deadline, emphasising the message about late filing penalties, and interest and tax surcharges for late payment publicity on the Internet, promoting the Department's electronic services sending two mailshots to 1.4 million self employed customers on the back of an existing national insurance letter raising awareness amongst agents with publicity in the Department's Tax Bulletin publication using the Department's network of Local Radio Broadcasters to publicise the deadline message

DEPUTY PRIME MINISTER

  Business Rates
  The Minister for Local Government and the Regions (Mr. Nick Raynsford)
  I have today laid in Parliament new clauses by way of an amendment to the Local Government Bill which will provide for local authorities to retain some or all of growth in business rate revenues.

  These proposals will allow us to introduce a scheme, along the lines the Chancellor announced in his 2002 Pre-Budget Report. The scheme will increase the incentives for business and local authorities to work in partnership to maximise local economic growth and regeneration while at the same time generating additional resources to address local priorities.

  Any scheme introduced will generate additional revenues from increases in the tax base generated by local authorities successfully encouraging growth, and not from increasing the tax on existing business. The money raised would be genuinely additional to local authorities and they will be free to decide how to spend it.

  The scheme will only allow local authorities to keep revenues associated with any growth in the business rate tax base and will not replace the current business rate pooling system. The business rate pool acts to reduce the unfairness of business rates and ensure that revenues are distributed in a more equitable way.

  It is not the Government's intention that the new scheme should only serve to reward authorities that are already doing well at the expense of declining areas. We are looking at a range of options to get the best distributional fit, with each local authority receiving an incentive that is relevant to them, whilst keeping the scheme as simple as practical.

  We have also been clear that local authorities will not bear the downside risk of a declining business rate tax base. We are considering options that will allow local authorities to benefit from the scheme, even though they are in a situation of economic decline, should they manage to slow the pace of decline.

  We will be consulting on the options, including the distributional consequences, in the summer

FOREIGN AND COMMONWEALTH AFFAIRS

  Cyprus
  The Secretary of State for Foreign and Commonwealth Affairs (Mr. Jack Straw)
  The Government's aim remains a comprehensive settlement in time for a reunited Cyprus to accede to the European Union on 16 April. For this to happen, the UN has set 28 February as the deadline for a decision on the Secretary-General's proposals. On Sunday 23 February Kofi Annan put forward ideas to the two sides on how he might revise his 10 December proposals, and is consulting the governments in Ankara and Athens before his historic visit to Nicosia tomorrow. President-elect, Mr. Tassos Papadopoulos, has made clear that the change of government underway in Cyprus will not impede the UN timetable. The UK has supported the UN 14WS
  throughout this process, and has welcomed the balanced and comprehensive settlement proposals tabled by the Secretary-General. We urge both sides now to secure a settlement.

  During the intensive negotiations which followed the Copenhagen European Council, it became clear that the issue of territorial readjustment was a key one, needing to be resolved if there was to be a settlement. In particular, it became clear that both sides attached great importance to adjustments which represented a relatively small percentage of the area of Cyprus. The Government therefore gave urgent consideration to whether it could in some way help to bridge the remaining gap. A decision was reached to inform the UN Secretary-General that Britain would be prepared to cede part of the UK's Sovereign Base Areas and this offer has now been included in the UN Secretary-General's ideas of 23 February.

  The offer consists of 45 square miles just under half of the total area of the SBAs. This makes up 1.2 per cent. of the area of the new state of affairs in Cyprus. The areas involved would bring a number of Cypriots living near Limassol, and in the Dhekelia Sovereign Base Area, within the administration of their respective constituent state. It will also open up areas of coastline for possible development. The areas involved do not contain military infrastructure, and this offer will not have any adverse impact on the functioning of the SBAs. The offer would only become valid if there were agreement by both sides to the UN's proposals. And, of course, legislation would be introduced to bring the transfer of territory into operation. In the event that either side in Cyprus rejects the proposals, or the proposals are rejected in a referendum by either side, the offer, along with the rest of the UN proposals, will become null and void.

  We urge both sides not to let this historic opportunity to heal the division of Cyprus slip away; and to go the last mile to conclude negotiations and secure the settlement.

HEALTH

  Medical Careers
  The Minister of State, Department of Health (Mr. John Hutton)
  I have today placed in the Library copies of "Modernising Medical Careers" the response of the four UK Health Ministers to the consultation on "Unfinished Business: Proposals for Reform of the Senior House Officer grade"

  The document sets out the results of our consultation which began last summer on the reform of training for senior house officers, who are doctors in the early stages of their specialist training. We received over 250 responses to our consultation and our proposals were broadly welcomed. The document we are publishing today sets the way ahead based on the results of the consultation and work which has been done since with the key stakeholders.

  Plans for reform will also extend to general practice training and will embrace the existing non-consultant career grades with easier routes back into training.
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  Partnerships will work to test these out in a variety of NHS environments. Pilot projects will start later on this year and with major implementation following in 2004.

TRANSPORT

  Railway Safety
  The Minister of State, Department of Transport (Mr. John Spellar)
  I am pleased to announce that today the Government has published its report on the management of the accidental obstruction of the railway by road vehicles. The report has been produced in response to the 19 separate recommendations made by the Health and Safety Commission1 and Highways Agency2 reports published in February last year.

  The report sets out the work of representatives of the highway authorities, railway infrastructure authorities and other organisations to identify the steps we consider should be taken jointly by railway infrastructure authorities and highway authorities to manage the risk of the accidental incursion of road vehicles onto the railway. It includes a protocol for apportioning responsibility and costs of mitigation measures. Also, following the adoption of an initial risk prioritisation framework a second stage assessment process has been produced for sites where the risk of a road vehicle accidentally getting onto the railway is not clear cut. Good practice guidance measures have been identified to help mitigate risk at specific sites. British Transport Police have agreed to collect the data about such incidents on a common basis. In order to update the standards for safety barriers on major roads in a clear and open procedure, the Highways Agency has let a contract and set up a technical project board to steer the update of standards for safety barriers on major roads in a clear and open procedure.

  Copies of the report will be sent to all local highway authorities and railway infrastructure authorities. Copies will be placed in the Library of the House. Details will be made available on the Department for Transport's website at http://www.roads.dft.gov.uk/ roadnetwork/bridgesites/index.htm
  1"Obstruction of the railway by road vehicles" ISBN 07176 2294 0 available from HSE books price £5.00 or to download at http://www.hse.gov.uk/railway/obstruct.pdf2"To review the standards for the provision of nearside safety fences on major roads" available to download at http://www. highways. gov.uk/

CULTURE, MEDIA AND SPORT

  Historic Environment
  The Secretary of State for Culture, Media and Sport (Tessa Jowell)
  I would like to update the House on the progress made on implementing the recommendations 16WS
  contained in the Government's statement on the historic environment: A Force for Our Future during the past six months.

  Since August 2002 the following has been achieved:

  August

  English Heritage completed its programme of establishing a Historic Environment Forum in each of the Regions.

  October

  HM Treasury confirmed that the Listed Places of Worship grant scheme would continue until the review of the European Union VAT regime had been completed.The Government formally acceded to the 1970 UNESCO Convention on the Means of Prohibiting and Preventing the Illicit Import and Transfer of Ownership of Cultural Property.

  November

  English Heritage launched the first State of the Historic Environment Report, which set out a framework for establishing indicators to measure the contribution the historic environment makes to the economy, education and communities.

  I announced a review of current heritage protection legislation. This will also cover the ecclesiastical exemption and consider a range of options for enhancing Sites and Monuments Records.

  The Historic Houses Association (HHA) and the Black Environment Network (BEN) announced a joint scheme to identify new audiences for the historic environment by encouraging ethnic communities to become more involved with nearby historic attractions. Local community leaders will be invited to work with selected properties to extend involvement and enjoyment of these attractions within ethnic communities. Five pilot projects will be in place by Spring 2003. They will be closely monitored and evaluated with a view to extending the programme in 2004.

  December

  The Dealing in Cultural Objects (Offences) Bill was introduced into Parliament. The Bill will make it a criminal offence to trade in illegally removed cultural goods.

  The Planning and Compulsory Purchase Bill was introduced into Parliament. It will take forward a number of commitments arising from the Planning Statement Sustainable Communities: Delivering through planning.

  Heritage Link was officially launched. It will be co-funded by English

  Heritage and The National Trust. Priority areas for action in 2003 are: the needs and potential of the voluntary sector; funding; inclusion:, and land-use planning.

  National Archaeology Days 2002, organised by the Council for British

  Archaeology, achieved a 5 per cent. increase in participating venues to 62, and a 66 per cent. increase in estimated visitors to 90,000.
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  January 2003

  The National Trust launched "Untold Story", a pilot project involving National Trust properties in England, Wales and Northern Ireland. It will involve people in exploring and interpreting the significance of local properties through the medium of the performing arts. The National Trust began work with Creative Partnerships in Cornwall to develop a number of projects involving artists, poets and writers workingwith local schoolchildren to develop ideas and activities inspired by National Trust properties in Cornwall.
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  February

  Responsibility for underwater archaeology will be transferred to English Heritage shortly.Management Plans are now in place for all but five of the World Heritage Sites in England.

  Management Plans for the Tower of London and the City of Bath are scheduled for completion by February and October 2003 respectively. Work on the Plans for Blenheim Palace and Westminster Palace and Abbey is ongoing, whilst work on Durham Cathedral and Castle will begin shortly.