Written Statement of 17 July 2003

DEPUTY PRIME MINISTER

  Housing (Planning)
  The Minister for Housing and Planning(Keith Hill)
  The Communities Plan sets out this Government's vision for sustainable communities where everyone has the opportunity to be decently housed, in a prosperous community, with a good quality of life. This Statement concerns the planning system's role in providing sufficient, and better designed, homes to meet the variety of housing needs in England, and clarifies aspects of the Government's policy for planning new housing set out in Planning Policy Guidance Note 3 (PPG3). Together with the measures in Budget 2003 which it complements, it is an important part of the process to enhance the flexibility of our housing market and planning system, and thereby help secure the changes which are required to meet the tests for membership of the Euro-zone. The intention is to remove barriers to delivering the housing needed in our communities and ensure the planning system is not a brake on an adequate and continuing supply of sites for housing in sustainable locations.

  Local authorities should:
  enable the provision of sufficient new homes in the right place at the right time and avoid arbitrarily phasing new housing development;
  provide for at least ten years potential supply of housing;
  put unneeded employment sites back into use through actively considering residential development;
  promote sustainable residential environments; be flexible on car parking requirements;
  improve the contribution development makes to securing affordable homes and ensure the size and type of housing better matches the need;
  take responsibility locally for delivery.

  Housing (Planning)

    ENABLING THE PROVISION OF SUFFICIENT NEW HOMES IN THE RIGHT PLACE AT THE RIGHT TIME
    Research published today by the Office of the Deputy Prime Minister shows the policy in PPG3 has generally been well-integrated into forward planning and development control processes. But there is evidence that necessary housing development has been delayed in some areas.
    The planning system must enable the provision of new homes in the right place and at the right time, whether through new development or the conversion of existing buildings. This is important not only to ensure that everyone has the opportunity of a decent home but also to avoid constraining economic growth and the delivery of quality public services.
    Achieving a better balance between housing availability and the demand for housing is a key priority for this Government. Regional planning bodies should
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    maintain an up-to-date understanding of the likely housing requirements of their areas, and have regard to Government policy to reduce volatility in the housing market and promote macro-economic stability as part of delivering sustainable development. Regional planning bodies should prepare regional planning guidance, and local planning authorities prepare plans, with the aim of providing sufficient housing opportunities to meet the likely housing requirements of their areas. And in doing so, there should be a choice of sites which are both suitable and available for housebuilding.

    REMOVING BARRIERS: PLANNING FOR AT LEAST TEN YEARS POTENTIAL SUPPLY OF HOUSING
    Paragraph 28 of PPG3 requires local and unitary development plans to identify sites for housing and buildings for conversion and re-use sufficient to meet housing requirements, after making an allowance for windfalls, and manage the release of land over the plan period. The duration of a plan should be for a period of 10 years from the plan's forecast adoption date. This means plans should make provision for at least ten years' potential supply of housing.
    Paragraph 34 of PPG3 requires sufficient sites to be shown on the plan's proposal map to accommodate at least the first five years (or the first two phases) of housing development proposed in the plan. This does not mean plans should only have a 5-year time horizon nor is it guidance directed at the determination of planning applications. The purpose is to safeguard against unrealistic windfall allowances. Identifying sites on the proposals map allows allocations to be drawn on expeditiously if the monitoring required by PPG3 demonstrates that windfalls are not being realised as anticipated. If windfalls are being realised as anticipated not all of the sites allocated on the proposals map (which in aggregate provide sufficient capacity to accommodate the first five years or so of housing development) will be needed during the plan's first five years. Managing their release through phasing allows the timely release of sites in support of sustainable development. The aim is to avoid disruption to housing supply, without undermining a plan-led approach to implementing the site search and allocation sequence set out in PPG3.

    REMOVING BARRIERS: STOPPING THE ARBITRARY USE OF PHASING
    The managed release of housing sites should support the planning strategy set out in regional planning guidance and development plans. Phasing should not be arbitrary. It should secure the timely delivery of the agreed housing numbers set out in up-to-date regional planning guidance and:
    reflect the policy objectives set out in PPG3;
    reflect any strategic principles that have been established;
    be based on realistic assumptions;
    be deliverable and cost-effective;
    be transparent, based on clear policies set out in the local plan and not an arbitrary process;
    be dynamic, and capable of regular monitoring and review.

    REMOVING BARRIERS: PUTTING UNNEEDED EMPLOYMENT SITES BACK INTO USE
    PPG3 encourages local planning authorities when reviewing their development plan to consider whether land currently allocated for employment, and other uses, might be better used for housing or mixed-use developments. The Government's experience is that despite this encouragement many authorities continue to reserve an excess supply when it would make sense to consider this for housing. Through the forthcoming revision of planning guidance on commercial development and industry (currently PPG4), local planning authorities will be required to undertake a review of all land currently allocated for industrial or commercial use. Practice guidance will be provided to help establish realistic assessments of likely take-up.
    The Government also propose to add new policy to PPG3 to require the reuse of industrial and commercial land for housing unless a convincing case for retention can be made. This proposal is the subject of consultation which is published today. Local planning authorities are reminded that the policy is as stated in PPG3 but that emerging Government policy, in the form of draft policy guidance, can be regarded as a material consideration, depending on the context.

    REMOVING BARRIERS: TACKLING OBSTACLES TO SUSTAINABLE RESIDENTIAL ENVIRONMENTS
    The Government are concerned about obstructions to delivering sustainable residential environments. The Office of the Deputy Prime Minister is today publishing research on the difficulties faced by housebuilders in their efforts to integrate well-designed higher density housing with local highway requirements. The Government will look very carefully at the recommendations in the report. Local highway considerations should not without good justification stifle innovative design.

    REMOVING BARRIERS: FLEXIBILITY ON CAR PARKING
    With the right parking policies it is possible to increase densities, reduce pressures on the countryside and produce more sustainable developments. PPG3 advises that car parking standards that result, on average, in development with more than 1.5 off-street car parking spaces per dwelling are unlikely to reflect the Government's emphasis on securing sustainable residential environments. This does not mean the Government expects all dwellings in all new developments to have 1.5 parking spaces. The policy envisages an average over a local authority's area.
    The Government accept that parking needs vary. There will be locations and housing types where significantly lower levels of off-street parking can be sought. But for family housing, and in rural locations where there is heavier reliance on the private car, higher levels of car parking may be appropriate. This is why PPG3 advises that parking polices should be framed with good design in mind, and recognise that car ownership varies with income, age, household type, and the type of housing and its location. To help the development of appropriate standards, the Government
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    will carry out research to consider how varying levels of car parking can be achieved in ways consistent with their policy on sustainable residential environments.

    PLANNING FOR ALL IN THE COMMUNITY
    The Government believe that it is important to help create mixed and inclusive communities, which offer a choice of housing and lifestyle. The planning system has an important role in creating communities with a better mix of housing, in terms of size, type and affordability. Planning for housing policies in regional planning guidance and local planning authorities' plans should be based on an up-to-date understanding of the housing required in communities and aim to widen the range of housing opportunity. The housing requirements of the whole community should be addressed, including those in need of affordable housing.
    PLANNING FOR ALL IN THE COMMUNITY: DELIVERING MORE AFFORDABLE HOUSING
    My right hon. Friend the Deputy Prime Minister announced earlier this year that the existing guidance on planning for affordable housing would be updated and supported with practical advice about what works well and where. In particular, he said the Government would consult on allowing local authorities to seek affordable housing on smaller sites where this is justified. The Office of the Deputy Prime Minister is publishing today for consultation proposed changes to planning policy for affordable housing. The aim is a policy framework that will secure more affordable housing without affecting the overall supply of housing.
    PLANNING FOR ALL IN THE COMMUNITY: MATCHING SUPPLY WITH NEED
    The Sustainable Communities Plan also highlighted the Government's concern that the houses built do not always adequately reflect a community's needs. The Government are working with local authorities, house-builders and other housing providers to ensure that the size and type of housing better matches need, especially by providing more homes for the increasing number of smaller households. The draft update places more emphasis, than currently in PPG3, on producing a better match between the housing planned and the needs of the community.

    TAKING RESPONSIBILITY LOCALLY
    In conclusion, the Government look to local authorities actively to facilitate the delivery of the housing needed in their communities in the form of well-designed, higher density residential developments. They are consulting on improvements to the policy framework, and copies are available in both Libraries of the House. Additionally, at a future date, my right hon. Friend the Deputy Prime Minister will set out how the Government will take forward the commitment in the Budget report to
    "improve the performance of planning authorities that are not delivering an adequate supply of new housing—including incentives, support, and engagement—followed, where necessary, by intervention".

  Housing Revenue Account Subsidies
  The Minister for Housing and Planning (Keith Hill)
  Following public consultation, the Office of the Deputy Prime Minister is about to write to Chief Finance Officers of local housing authorities in England to inform them about changes to the way in which Housing Revenue Account (HRA) subsidy is delivered for Private Finance Initiative (PFI) schemes.

  The changes reform the HRA subsidy arrangements and will mean that local housing authorities receive a fixed level of annual subsidy, a "PFI allowance" for the duration of the scheme. There will be retrospective arrangements for authorities already receiving HRA PFI subsidy.

  The letter, guidance on the new arrangements and the consultation paper may be found on Office of the Deputy Prime Minister's website at http://www.odpm.gov.uk.

  The Minister for Housing and Planning (Keith Hill)
  I am today issuing for consultation proposals that are designed to improve the distribution between authorities in England of housing revenue account (HRA) subsidy management and maintenance (M&M) allowances. Copies of the consultation paper and accompanying technical annex are available on the ODPM website and paper copies will be available in the Libraries of the House shortly.

  HRA subsidy provides support to local authorities to manage and maintain their council stock. M&M allowances are a key component of subsidy, and currently total some £3 billion annually. This is shared between authorities on the basis of a formulaic approach that has changed little since it was introduced more than ten years ago. It no longer adequately reflects the circumstances and challenges facing housing authorities, including the drive for decent homes, and the problems of deprivation, anti-social behaviour, and low demand. As part of the move to a modern, fairer and more efficient housing finance system, with rent restructuring bringing coherence to local authority rents, we have made clear the need to look again at the way all resources are allocated. This consultation paper is part of that process.

  Comments on the proposals in the consultation paper have been invited by 15 October.

  Local Planning Authorities
  The Minister for Housing and Planning (Keith Hill)
  The Office of the Deputy Prime Minister's public service agreement 6 (PSA6) requires all local planning authorities to complete local development frameworks by 2006 and to perform at or above best value targets for development control by 2006 with interim milestones to be agreed in the service delivery agreement. Our approach to achieving this target is based on putting in place a programme of planning reforms which will deliver a step change in the way planning is carried out, and in the performance of the planning system to deliver sustainable development in the right place at the right time. This will be delivered through primary and secondary legislation, through progress in pursuing best value in local authority services, and through a culture change for all stakeholders in planning. The importance 58WS
  of delivering against PSA6 is recognised by both local and central Government. This statement sets out the approach we intend to take and the measures we have put in place to ensure that we can work together with local Government to deliver this.

  At the individual local authority level, we are supporting those who are seeking to improve planning performance by giving additional resources through the planning delivery grant and by providing advice, guidance and help, including through a proposed new planning advisory service. The planning delivery grant is providing £350 million to authorities and regional planning bodies over three years between 2003–04 and 2005–06 and is being distributed to those that demonstrate improvement in their planning services. The Office of the Deputy Prime Minister, together with other stakeholders including the Planning Officers Society, the Local Government Association and the Improvement and Development Agency, already offer a range of good practice guidance and advice. We shall be reviewing and, where necessary, updating that guidance and advice. The planning advisory service is to be piloted later in 2003.

  Our engagement with councils will be in accordance with the protocol agreed with local government and will be responsive to the outcome of comprehensive performance assessment (CPA) and performance against our best value targets for planning. In particular we will seek to work with councils in the context of their improvement planning to raise the quality of planning services. In line with the expectation that all authorities will meet PSA6, our work will be with any authority.

  For each financial year, we will identify, in consultation with the Government offices for the regions, poorly performing development control authorities. Such judgments will be based on the level of performance the authority has achieved in relation to meeting the PSA6 targets, and the rate or direction of change in the authority's performance. Where necessary, we will set authorities best value performance standards for a financial year. We are already engaged with a number of authorities that have been or are now failing to make adequate progress towards the PSA6 targets and will continue such action with any further authorities in 2003–04 and 2004–05. In relation to the preparation of local development frameworks, subject to the enactment of the Planning and Compulsory Purchase Bill, we will have regard to the progress against the local development scheme as set out in the annual monitoring report.

  By 2005–06, any authority that is not close to achieving the development control targets or is not making timely progress against its local development scheme or both will be regarded as poorly performing in planning services. The objective is to work with authorities to drive their performance up to meet the PSA6 targets. During the year in which they are subject to standards or when an annual monitoring report shows failure of an authority to adhere to its local development scheme, we will investigate the action authorities are taking to improve their performance and assess the likelihood that they will meet the PSA6 targets.
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  Where we judge that any authority lacks the commitment or capacity to improve its planning performance, we will consider whether and how to support performance improvement. In arriving at such judgments we will be looking, in the light of the results the authority is achieving, at the adequacy of the processes and managerial systems; the level of professional competence; the level of resource and other inputs to the planning service; and at the political and managerial leadership.

  We will identify mechanisms that will enable us, as far as possible, to work with councils to focus action and support within the authority's regular cycle of improvement planning. Each year, every authority must publish its priorities in its best value performance plan. Those authorities that have been through CPA will also be required to undertake recovery or improvement planning. Where we engage directly with authorities, we will discuss with them what specific areas we will expect them to address in such plans. Among the issues that we will want to explore with authorities in following up improvement planning will be close monitoring of performance and change management; the recruitment and retention of staff and development of skills for members and officers; the adequacy of resourcing and the systems and processes in place; and outsourced delivery. We will work with councils through the Audit Commission relationship manager, where relevant, the Office of the Deputy Prime Minister appointed Lead Official, and the Government offices in the Regions,

  Where, in our view, the actions that an authority is taking to improve performance are not adequate to put them on a course to meet the PSA6 targets by 2006–07, we will consider intervention under the powers available to us. We will not seek to intervene until an authority has had an adequate opportunity to put right its own failings and any intervention would be proportionate to the failure. However, where intervention is necessary, we will carry it through with determination and vigour. Powers under the Local Government Act 1999 include the power to direct, which might include directing inspection of or inquiries into planning services, and the tendering or outsourcing of services. Those under the Planning and Compulsory Purchase Bill enable the Secretary of State to direct on aspects of the plan making process, including the local development scheme.

  The use of intervention powers in respect of development control performance would be a last resort, and decisions taken on them would be made in the context of CPA and the protocol. Its objective and content would reflect the need to achieve the PSA6 targets and therefore any authority at risk of not meeting the targets would be liable to intervention. Having regard to the wider context of CPA, the Government will take a different approach in relation to high performing authorities than to poorer performing ones. We will expect excellent authorities to improve their planning performance without support from Government. In weaker authorities we will offer a more intensive model of support and intervention.

  Through our planning reform programme and, where necessary, engagement and intervention, our objective is to work with authorities to develop a culture of
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  continuous improvement in the delivery of an excellent planning service which produces timely, high quality and sustainable outcomes.

  Local Government Ombudsman
  The Parliamentary Under-Secretary of State, Office of the Deputy Prime Minister (Phil Hope)
  I have today placed in the Library of the House the Local Government Ombudsman's Annual Report for 2002–03.

  The Report was published on 3 July. As required by Section 23 of the Local Government Act 1974 copies have been sent to the Local Government Association, as the designated representatives of Local Government, and to the Deputy Prime Minister.

  The Report includes individual reports by the three Local Government Ombudsmen in England and includes information about complaints received during 2002–03, a review of the legislation governing the work of the Ombudsman, and details of the way in which the Ombudsman is working to improve delivery of public services by local authorities.

  The full text of the Report is available on the Commission's website: www.lgo.org.uk.

NORTHERN IRELAND

  Maghaberry Prison
  The Secretary of State for Northern Ireland (Mr. Paul Murphy)
  I wish to announce that with effect from 31 July 2003, in accordance with the powers conferred on me by Rule 5(1) of the Prisons and Young Offenders Centre Rules (Northern Ireland) 1995, that part of Maghaberry Prison site is removed from within the boundaries of Maghaberry Prison. The area to be removed is indicated on the site map, which I have today placed in the Libraries of both Houses, by the words"area to be removed from the site of Maghaberry Prison".

  North/South Implementation Bodies and Tourism Ireland Limited
  The Secretary of State for Northern Ireland (Mr. Paul Murphy)
  I have today placed in the Library papers relating to decisions that have been taken during the period 1 May 2003 to 30 June 2003 which relate to the North/South Implementation Bodies and Tourism Ireland Limited under the terms of the exchange of notes of 19 November 2002 (Cmnd 5708).

  Prison Service
  The Minister of State, Northern Ireland Office (Jane Kennedy)
  I have placed copies of the Northern Ireland Prison Service's Corporate and Business Plan for 2003–06 and the Annual Report and Accounts for 2002–03 in the Libraries of both Houses.
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  The Corporate and Business Plan contains Key Performance Targets I have set for the Service for 2003–04. These are:

  1. 100 per cent. security for top and high risk prisoners.

  2. 99.7 per cent. security for medium and low risk prisoners.

  3. The number of staff assaulted by prisoners is less than a ratio of 5 per 100 prisoners.

  4. The number of prisoners assaulted by prisoners is less than a ratio of 7.5 per 100 prisoners.

  5. An average of at least 20 hours constructive activity per week for each sentenced prisoner.

  6. An average of at least 12 hours constructive activity per week for each remand prisoner.

  7. To ensure 82.5 per cent. of prisoners serving six months or more are working to a resettlement plan and that 95 per cent. of all lifers work to a resettlement plan, including preparation of the plan in the first six months from sentence.

  8. Deliver at least 85 per cent. of the planned training days associated with the agreed corporate training priorities.

  9. Reduce the average staff sickness days per head over the year to no more than 19 representing approximately a 30 per cent. reduction in sick absence over the year and an end of year figure equivalent to 14 days per annum per member of staff.

  10. Ensure expenditure is within the budget allocated.

  11. Lay the Annual Report and Audited Accounts before Parliament prior to the summer recess.

  The Annual Report details that the Service met 8 out of its 11 key targets and 10 of their 16 development objectives with significant progress made against the other six.

HOME DEPARTMENT

  Assets Recovery Agency
  The Parliamentary Under-Secretary of State for the Home Department (Caroline Flint)
  I am pleased to announce that the first annual report of the Assets Recovery Agency will be laid before Parliament on 8 September 2003.

  The report is the first by the agency and covers the financial year 2002–03. The agency became operational on 24 February 2003, and the report covers the setting up of the agency and the first few weeks of its work. The next report will include an assessment of how the agency has carried out its first business plan, which was published on 9 July.

  The agency is already making use of its powers, and has obtained several orders to freeze suspected criminal assets.

  The establishment of the agency, with extensive powers to investigate and recover criminal assets, shows the Government's commitment to taking the profit out of crime.

  Forensic Science Service
  The Secretary of State for the Home Department (Mr. David Blunkett)
  An independent review of the Forensic Science Service was announced on 23 July 2002 by the Minister of State for Policing and Crime 62WS
  Reduction. The review has been overseen by a steering group which all key stakeholders were invited to join. The review team reported at the beginning of July this year.

  The main thrust of the report focuses on the emergence of a more competitive market for forensic science services and the ability of the FSS to compete effectively in the face of a significantly changing environment. The report makes a number of helpful observations and recommendations aimed at improving FSS performance, but the most fundamental is that it should be transformed from a trading fund into a Government-owned company as a precursor to development into a private sector classified Public Private Partnership (PPP).

  The main risk if the FSS remains as a trading fund is that there would be a sustained and accelerating loss of business. Indeed, some forces are already outsourcing their forensic requirements to alternative suppliers. A cumulative loss of market share could reach a point at which poor trading forced cut-backs in investment, research and development and staffing. I see radical change as the only realistic option to ensure that FSS remains competitive and able to make best use of rapidly advancing science and technology to reduce crime and deliver safer communities.

  The report identifies the inherent risks, but makes a clear case for accepting that PPP offers the best means of protecting the public interest and delivering major benefits to the Criminal Justice System (CJS) by enabling FSS to compete effectively. I endorse this approach and the steering group's overall view that the FSS would prosper in a private sector environment, as it clearly reflects the realities of the situation. At a time when demand for forensic analysis in crime investigation is increasing significantly, FSS performance has been mixed. There have been some notable successes, but we need to take steps to improve the service to the wider CJS in terms of timeliness and cost effectiveness. The emergence of a small but effective and dynamic private sector has resulted in an increasingly competitive market in forensic science services, the level and intensity of which is likely to gather pace.

  I am confident that the proposed change will stimulate and broaden the market, encouraging CJS customers to make even greater use of forensic science in the fight against crime, and generating momentum through improved investment to enable the increasingly effective use of forensic capabilities. This, in turn, will result in forensic science making a substantially greater contribution to crime reduction. A number of significant logistical issues inevitably need to be addressed, but I believe that all of these challenges can be dealt with successfully in a transitional period as a Government-owned company.

  As the report contains commercially sensitive information, a copy of the executive summary has been placed in the Library.

  UK Passport Service
  The Minister for Citizenship and Immigration (Beverley Hughes)
  The UK Passport Service Annual Report and Accounts 2002–03 has been published today and copies have been placed in the Library of the House.

  Asylum Support Adjudicators
  The Minister for Citizenship and Immigration (Beverley Hughes)
  Following a request, in 2002, from the Chief Asylum Support Adjudicator for an increase in the Asylum Support Adjudicators' (ASA) salary scale, we undertook a review in partnership with PricewaterhouseCoopers. The review found there to be a justifiable linkage between the ASAs' salaries and Group 7 of the judicial scale, which the Senior Salaries Review Body (SSRB) accepts. Therefore, with effect from April 2003, the Home Secretary will consider ASA salaries in the light of that linkage and the annual recommendations of the SSRB.

  Voluntary and Community Sector
  The Parliamentary Under-Secretary of State for the Home Department (Fiona Mactaggart)
  I am today placing in the Libraries of both Houses of Parliament copies of the Report of the Fourth Annual Meeting to review the Compact on relations between Government and the voluntary and community sector on 28 April 2003.

  The meeting witnessed the momentum achieved in driving the Compact as the framework guiding the relationship between Government and the voluntary and community sector. There was record attendance at this year's meeting. Local Government were represented for the first time, reflecting the need to focus on implementing the Compact at local level. We need to work together with the voluntary and community sector to achieve real change in the way the sector contributes to the delivery of better public services.

  Animal Experiments
  The Parliamentary Under-Secretary of State for the Home Department (Caroline Flint)
  I wish to announce that the 2002 statistics of scientific procedures on living animals in Great Britain will be published as a Command Paper on 18 July. Copies will be placed in the House Library in the usual way.

  The number of scientific procedures licensed under the Animals (Scientific Procedures) Act 1986 and started in 2002 was just over 2.73 million, a rise of about 110,000 (4.2 per cent.) on 2001. This increase is not seen as beyond the bounds of normal year-on-year fluctuations, and the Government have no anxieties or concerns arising from the detail of the statistics.

  A familiar pattern is evident. Mice, rats and other rodents were used in the majority of procedures—84 per cent. of the total. Most of the remainder used birds (5 per cent. of all procedures), and fish (7 per cent.). Dogs,
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  cats, horses and non-human primates, afforded special protection by the Act, were collectively used in fewer than 1 per cent. of the procedures.

  There was a slight decrease in the proportion of procedures using genetically normal animals (65 per cent. as against 67 per cent. in 2001), and a small increase in 'the proportion of procedures using those which had been genetically modified (26 per cent. as against 24 per cent. in 2001). This continues a trend apparent in recent years, though the variations are on this occasion minimal. It is worth recording that only one in three of all the recorded procedures involving genetically modified animals were for purposes other than breeding.

  Non-toxicological procedures accounted for about 82 per cent. of those carried out in 2002, with the main areas of use being for immunological studies and pharmaceutical research and development. Of the procedures for toxicological purposes, 61 per cent. were for pharmacological safety and efficacy studies, and most were performed to conform with regulatory requirements.

  About 40 per cent. of all procedures used some form of anaesthesia to alleviate the severity of the interventions. For many of the remaining procedures the use of anaesthesia would have increased the animal welfare cost of the procedure. Over 99 per cent. of procedures carried out on animals listed in Schedule 2 of the 1986 Act involved use of animals acquired from designated sources in the United Kingdom.

  I should point out in relation to the statistics that the Home Office, as regulatory authority under the 1986 Act, has no control over the overall amount of animal research and testing which takes place. We do nevertheless ensure, in carrying out our licensing function, that the provisions of the Act are rigorously applied in each programme of work. In particular we always insist in every case upon full application of the 3Rs—replacement of animals where possible, and where they must be used, reduction to a minimum of their numbers and refinement of the procedures to minimise suffering. To that end, all licence applications are carefully assessed by the professional Animals (Scientific Procedures) Inspectorate, who then closely monitor work in progress to ensure compliance with licence authorities, and with the related codes of practice concerning standards of care and accommodation for the animals.

WORK AND PENSIONS

  Advisory Group to the Employer Task Force on Pensions
  The Secretary of State for Work and Pensions (Mr. Andrew Smith)
  I am pleased to announce membership for the advisory group to the Employer Task Force on Pensions today, as set out below. The
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  role of the advisory group is to provide the Employer Task Force with access to experience and expertise from key organisations with an interest in pensions.

  Member

  Organisation

  Sir Peter Davis Chairman of Employer Task Force and Advisory Body

  Employer Task Force Chairman Chief Executive J Sainsburys plc

  Duncan Brown Assistant Director General

  Chartered Institute of Personnel Development

  Kay Carberry Assistant General Secretary

  Trade Union Congress

  George Cox Director General

  Institute of Directors

  John Cridland Deputy Director General

  CBI

  Donald Duval President

  The Society of Pensions Consultants

  Carl Emmerson Programme Director

  Institute of Fiscal Studies

  Christine Famish Chief Executive

  National Association of Pension Funds

  Mick Folger Director, Conduct of Business Standards

  Financial Services Authority

  Mary Francis Director General

  Association of British Insurers

  Tony Hobman Chief Executive

  OPRA

  Ed Mayo Chief Executive

  National Consumer Council

  David Pollard Chairman

  Association of Pension Lawyers

  Gordon Pollock Chairman

  Association of Consulting Actuaries

  Richard Saunders Chief Executive

  Investment Management Association

  Footnote: Additional Members may be invited to join theadvisory group, if appropriate.

  Disabled People
  The Secretary of State for Work and Pensions (Mr. Andrew Smith)
  The New Deal for Disabled People will be extended for a further two years to 31 March 2006. All existing Job Brokers will have the opportunity to participate in this extended programme, but they will be required to meet the new standards of performance and conform to a revised service design that builds on best practice under the existing programme and emerging lessons from the evaluation and experience under other similar programmes including Employment Zones.
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  Job Brokers will be expected to develop rigorous and appropriate back to work plans to support individual in return for an initial £300 payment for the registration of new customers. We will also be bringing the sustained outcome payments into line with other programmes by making payments after individual have been in work for 13 weeks and not 26 weeks as currently. Job Brokers will still be expected, however to provide ongoing support over at least the first 6 months of employment and we will review the effectiveness of their arrangements through our contract management system and through the evaluation of the programme.

  To participate in this extension Job Brokers will need to demonstrate that they can meet challenging performance targets, in particular in moving people into work. Those Brokers who can demonstrate an ability to meet high levels of performance will have the opportunity to expand their services; and at the same time we will be offering limited, geographically focused opportunities for new providers to enter the programme. Further details about the terms on which extended contracts will be let and upon which no, providers might be able to deliver services will b published in the autumn.

DEFENCE

  Training Group Defence Agency
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  The Commander-in-Chief, Royal Air Force Personnel and Training Command has set the Chief Executive of the Training Group Defence Agency the following targets for Financial Year 2003–04:

  KEY TARGET 1a:

  Training Output—Quantity of Output (Ab Initio Flying Training)

  To train the required number of aircrew of the three Services to standards for entry to Royal Air Force an Royal Navy operational conversion unit training, th Defence Helicopter Flying School and other specialist; flying training courses.

  Fast-Jet Pilots

  67

  Multi-Engine Pilots

  62

  Rotary Wing Pilots

  37

  Fast-Jet Weapons

  Systems Operators

  28

  Multi-Engine Weapons

  Systems Operators

  9

  Rotary Wing Weapons

  Systems Operators

  5

  Non-Commissioned

  Aircrew

  103

  Total

  311

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  KEY TARGET 1b:

  Training Output—Quantity of Output (Ab Initio Ground Training)

  To train the detailed number of military personnel to the standards required to undertake ground appointments.

  Officer Initial Specialist Training

  339

  Airman Initial Specialist Training

  2,504

  Total

  2,843

  KEY TARGET 2a:

  Training Output—Quantity of Output—Training Places (Flying)

  To train aircrew of the three Services to standards for entry to the Royal Air Force and Royal Navy operational conversion unit training, the Defence Helicopter Flying School and other specialist flying training courses, as well as providing training places for international students.

  Flying Training Courses—RN

  202

  Flying Training Courses—Army

  374

  RAF Flying Instructor Courses

  150

  RAF Refresher & Orientation Courses

  170

  RAF Specialist & Operation Courses

  240

  Flying Training (International)

  92

  Total1

  1,228

  KEY TARGET 2b:

  Training Output—Quantity of Output—Training Places (Ground)

  To train military personnel to the standards required to undertake ground
  appointments.

  Pre-Employment Training

  16,029

  Career Development Training

  6,562

  Total

  22,591

  KEY TARGET 3:

  Quality of Output

  To underpin the military effectiveness of the Royal Air Force by the timely provision of military personnel trained to the standards agreed with the Agency's customers.

  KEY TARGET 4:

  Cost Management
  To ensure that the necessary systems are in place to manage the business on an output-cost basis.
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  KEY TARGET 5:

  Efficiency

  To reduce the average per capita cost of initial training measured as a cumulative improvement on 2000–02 costs.

  Low Flying
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  The ability to fly fast and low continues to be an essential skill in our armoury of tactics. Training for aircrew to achieve and maintain these skills is vital.

  The amount of low flying training carried out in the United Kingdom Low Flying System (UKLFS) during the training year April 2002 to March 2003 was the minimum necessary for aircrew to reach and maintain these skills. Hours booked for low flying training in the UKLFS (excluding the Rotary Wing Dedicated User Areas, where different booking arrangements apply) during this period amounted to an overall increase of 2.6 per cent. compared to the previous training year. The increase may be linked to preparations for operations, and an increase in the flying of Apache aircraft in preparation for their introduction into service. Since detailed records of hours booked began in 1995, the annual total has reduced by some 29 per cent.

  The distribution of low-flying training across the UK has not changed significantly over previous years. It is spread as widely as practicable, but for a variety of reasons including population distribution, and geographic and climatic considerations, it is inevitable that some parts of the country will see more low flying than others.

  I have today placed in the Library of the House a report giving a detailed account of low flying training in the UK Low Flying System for the period April 2002 to March 2003.

  Further copies of the report can be obtained from the Vote office or it can be viewed on the MOD's web site: www.mod.uk/issues/lowflying

  Service Children's Education
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  The Chief Executive of Service Children's Education has been set the following Key Targets for 2003–04:

  To meet the following percentage of pupils achieving Level 2 or above at the end of Key Stage 1 in:

  Reading

  91 per cent.

  Writing

  93 per cent.

  Mathematics

  95 per cent.

  To meet the following percentage of pupils achieving Level 4 or above at the end of Key Stage 2 in:

  Reading

  85 per cent.

  Writing

  69 per cent.

  English

  80 per cent.

  Mathematics

  81 per cent

  Science

  91 per cent.

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  To meet the following percentage of pupils achieving Level 5 or above at the end of Key Stage 3 in:

  English

  79 per cent.

  Mathematics

  79 per cent.

  Science

  78 per cent.

  ICT

  68 per cent.

  For Year 11 pupils in SCE to meet the following Key Stage 4 (GCSE) targets:

  Pupils achieving 5 or more GCSE

  96 per cent.

  passes at Grades A*-G

  Pupils achieving 5 or more

  57 per cent.

  GCSE passes at Grades A*-C

  To maintain the following three-year rolling average percentage of achieving 5 or more higher (A*-C) in GCSE of 54 per cent.

  For pupils in SCE to meet the following Key Stage 5 (CA5 Level) targets:

  Subject entries achieving

  100 per cent.

  passes at grades A-E

  Subject entries achieving

  65 per cent.

  passes at grades A-C

  To maintain the following three-year rolling average of subject entries achieving passes at grades A-C at 'A' Level of 65 per cent.

  OfSTED UK LEA performance—to meet the following standards in OfSTED reports of inspections of SCE schools:

  Quality, School Climate, Management & Efficiency—Grade 3 or above.

  100 per cent.

  Standards—Grade 3 or above

  96 per cent.

  School climate—Grade 2 or above

  96 per cent.

  Standards—Grade 2 or above

  65 per cent.

  Quality, Management & Efficiency—Grade 2 or above

  85 per cent.

  To respond in full to customers seeking education advice from SCE (UK) within the following timescales:
  93 per cent. within 10 working days of receipt.
  Remainder within 20 working days of receipt.

  The Key Stage 1 to Key Stage 2 value added score for SCE will show an index of at least 100.

  Customer Satisfaction:
  To demonstrate customer satisfaction with SCE schools through a result of 69 per cent. or greater satisfaction from the Army Continuous Attitude Surveys.
  To develop customer performance criteria on the efficiency and effectiveness of SCE Headquarters for incorporation as a Key Target for 2004 and beyond.

  Army Training and Recruitment Agency
  The Minister of State, Ministry of Defence (Mr. Adam Ingram)
  The Chief Executive of the Army Training and Recruitment Agency has been set the following Key Targets for 2003–04.

  1. To meet the Army's requirement from the ATRA for 600 trained mainstream officers available to take up their first appointment within a permissible variance of 2 per cent. The 2002–03 performance was an output of 604.

  2. To meet the Army's requirement from the ATRA for 9,400 soldiers available to take up their first appointment within a permissible variance of + 1 to -2 per cent. The 2002–03 performance was an output of 9,264.

  3. To achieve a 98 per cent. first time pass rate to externally endorsed training standards and within course duration for all officers who undergo career or professional development training after meeting entry standards. The 2002–03 performance was a first time pass rate of 93.6 per cent.

  4. To achieve a 96 per cent. first time pass rate to externally endorsed training standards and within course duration for all soldiers who undergo career or professional development training after meeting entry standards. The 2002–03 performance was a first time pass rate of 94.8 per cent.

  5. Subject to realism caveats to reduce the per capita cost of training a successful military recruit to £52.2k by Apr 2006. The 2002–03 performance discounted for the effect of the estate revaluation, was £53.4k against a target of £54k.

  Army Personnel Centre
  The Minister of State, Ministry of Defence (Mr. Adam Ingram)
  The Chief Executive of the Army Personnel Centre has been set the following Key Targets for 2003–04.To maintain at 94 per cent. the percentage of posts which are manned (excluding posts gapped for less than 28 days and all posts for private soldiers and subaltern officers). The 2002–03 performance was the maintenance of 94 per cent. of posts manned.
  To maintain at 98 per cent. the proportion of personnel posted in-year by the APC whose rank and Service qualifications meet the specifications of the post. The 2002–03 performance was 97.5 per cent. of personnel posted in-year who met the specifications of the post.
  To maintain at 65 per cent. the percentage of in-year postings authorised by the APC where personnel are given at least four months notification. The 2002–03 output was 64.8 per cent. of personnel were given at least four months notification.
  To remain within 0 per cent. to - 1 per cent. of the annual resource allocation whilst achieving targets. The 2002–03 performance was within minus 0.99 per cent. of the annual resource allocation.

  Disposals Process (Review)
  The Minister of State, Ministry of Defence (Mr. Adam Ingram)
  A business review of the disposals process is to be carried out by the Ministry of Defence. The Review will commence shortly and complete in the autumn.

  The aim of the review is to examine the function, operation, funding and organisation of the disposals process, to identify the key objectives, and to determine whether the current arrangements are most appropriate for future needs.
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  The review team will consult with a range of stakeholders during the course of the review including MOD and Single Service sponsors, TUs, other Government Departments and other relevant bodies. The Ministry of Defence is interested to hear the views of other organisations or individuals who would like to make a contribution to the review. Those wishing to do so should send their contributions by 31 July 2003 to:

  The Disposals Process Business Review Team

  Ministry of Defence

  2nd Floor

  St Giles Court

  1–13 St Giles High Street

  London WC2H 8LD

  Or by email to:

  dgmo-dmcs2@defence.mod.uk

  Armoured Vehicles
  The Minister of State, Ministry of Defence (Mr. Adam Ingram)
  We regularly re-visit existing plans for capability enhancements to ensure they remain tailored to the security environment in which we need to operate. As such, we judge that the Multi-Role Armoured Vehicle (MRAV) is not ideally suited to the type of operations envisaged under the Strategic Defence Review New Chapter and other developing policy work. This, coupled with recent operational experience in the Balkans, Sierra Leone, East Timor, Afghanistan and latterly Iraq, has demonstrated the need for rapid deployability in expeditionary operations. MRAV is not considered able to meet this capability requirement which will be pursued through the Future Rapid Effect System (FRES). FRES will be a very significant component of the long-term transformation of the land battle through its contribution to network-enabled capability. We have written to the German and Dutch Governments to inform them of our decision to withdraw from the MRAV collaborative project.

  In parallel with our decision to withdraw from the MRAV programme, we are pleased to announce the results of the competition for the Future Command and Liaison Vehicle (FCLV). The Alvis Vickers Limited Multirole Light Vehicle has been selected to deliver the solution to the Army's requirement for enhanced speed, reliability, flexibility and protection for a wide range of users in combat or peacekeeping operations: FCLV will also provide support for the RAF Regiment. It will play a key role in the Joint Rapid Reaction Forces by providing versatile, airtransportable vehicles, which will be among the first deployed in a crisis and will spearhead the way for troops in combat or peacekeeping operations. FCLV will replace a mixed fleet of ageing vehicles which were acquired as a stopgap following the withdrawal of the Ferret Scout Car. This contract is worth over £200 million and is a good result for the United Kingdom AFV industry.

  Iraq Commemoration
  The Secretary of State for Defence (Mr. Geoffrey Hoon)
  As the House is aware, we have been considering the precise form in which we should commemorate and mark the operations undertaken in Iraq this year.
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  I can announce that we have decided that there will be a national service of remembrance and thanksgiving for the campaign in Iraq. This will be held in St Paul's Cathedral on 10 October 2003. The Dean of St Paul's will lead the service and the Archbishop of Canterbury will give the sermon. The service will give thanks for the role UK forces played in ending tyranny in Iraq. It will also give thanks to those personnel, including those that lost their lives, who took part—recognising their professionalism and their achievements.

  Members of the Royal Family, the Prime Minister and members of the Government will attend along with Service Chiefs. Representatives of our coalition allies and members of the Opposition will also be invited to the ceremony, along with, importantly, the families of those who so tragically lost their lives over the course of the operation. The majority of the congregation will, though, be personnel who took part in the campaign.

  We have given careful thought to the calls made for a parade to mark this event. In accordance with the wishes of the armed forces, we have decided that the most appropriate form of commemoration at the national level would be a service of thanksgiving, but without a parade. At the regional and local level, there will be opportunities for local communities to arrange events for their local units to mark their involvement in, and return from, the operation.

HEALTH

  Commission for Health Improvement
  The Minister of State, Department of Health (Mr. John Hutton)
  The Commission for Health Improvement's 2002–03 annual report, entitled "Delivering Improvement", has been published today. Copies have been placed in the Library.

  Patient Advocacy Services
  The Minister of State, Department of Health (Ms Rosie Winterton)
  Section 12 of the Health and Social Care Act (2001) places a legal duty on the Secretary of State to make arrangements to provide independent advocacy services to assist individuals making complaints against the National Health Service. We intend to commence this section on 1 September 2003.

  Our intention is to deliver arrangements for a national independent complaints advocacy service (ICAS). These intentions were set out in written answers given to the hon. Member for Eltham (Clive Efford) on 19 March 2003, Official Report, columns 849–51W. The new service will be provided by four contractors who will deliver ICAS across England from the 1 September 2003 on a one year contract. These contractors are The Carers Federation Ltd, POhWER, South East Advocacy Projects and the Citizens Advice.

  Delivering ICAS through these contracts will allow primary care trust patients' forums, who will in due course have delegated power to commission or provide ICAS under the NHS Reform and Healthcare Professions Act 2002, time to establish their networks and capacity.
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  Learning from the experience of community health councils and ICAS pilot projects this will be a completely new service that will provide consistent support to patients with complaints about the NHS across England. ICAS will be provided to standards piloted across the country. The commission for patient and public involvement in health (CPPIH) will, as indicated in its functions in the NHS Reform and Healthcare Professions Act 2002, monitor ICAS services against the standards.

  We have worked with the CPPIH to set in place arrangements for them to act as the Department's agents to manage these interim contracts on our behalf. We intend shortly to lay amendments to the CPPIH regulations to reflect this additional function.

  The new ICAS providers will begin recruiting staff and preparing publicity for patients, and others, during July and August for the commencement of the service on 1 September 2003. We will be notifying our partners in the NHS about the new arrangements so that they can offer the contractors full co-operation before, and during, the contracts and help direct patients to the new service.

  Retail Pharmacy Services
  The Minister of State, Department of Health (Ms Rosie Winterton)
  The Government's response to the Fifth Report of the House of Commons Select Committee on Health, on the control of entry regulations and retail pharmacy services in the UK, Cm 5896, has been published today. Copies have been placed in the Library.

  NHS Pensions Agency
  The Minister of State, Department of Health (Mr. John Hutton)
  The 2002–03 report and accounts of the National Health Service Pensions Agency have today been laid before the House of Commons pursuant to section 7 of the Government Resources and Accounts Act 2000. Copies have been placed in the Library.

  The Minister of State, Department of Health (Mr. John Hutton)
  I am today publishing the executive summary of the Quinquennial Review of the NHS Pensions Agency.

  I have accepted all of its recommendations including a change of status for the Agency. From 1 April 2004, the NHS Pensions Agency will become a special health authority.

CONSTITUTIONAL AFFAIRS

  Magistrates Courts
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. Christopher Leslie)
  I am pleased to be able to announce that today I have placed in the Libraries of both Houses copies of the annual report relating to the 2002–03 business returns provided by magistrates' courts in England and Wales. This is the first time that this report has been published and it heralds a new era in the development of the 42 separate Magistrates' Courts Committee (MCC) areas towards 74WS
  the planned unification with each other and with the Court Service Agency. One key matter in the report relates to the enforcement of fines that have been in the full control of magistrates' courts since April 2001. I addressed the matter of the poor collection rates in a written ministerial statement that I made on 25 June 2003, Official Report, column 40WS and I set out the seven point action plan that I am pursuing vigorously in order to improve upon the current performance that has been achieved by magistrates' courts and their agents.

  In other areas the magistrates courts have maintained a high level of service during a demanding year. They have supported and participated in a number of criminal justice initiatives, including the street crime initiative in the largest ten areas, extended court sitting hours pilots in London and Manchester and full involvement in the development of the local criminal justice boards. This was during a period when there were considerable additional demands on them. These included the rollout of new computer hardware, new data demands from across the Government service and the MCCs' full involvement in the work being undertaken to facilitate the new planned agency. The latter will bring together the 42 currently independent Magistrates' Courts Committee areas and the Court Service agency into one unified courts administration and considerable work is being done by all involved to ensure a successful outcome.

  Particular successes have been in supporting the achievement of the persistent young offender timeliness target of 71 days, reducing it from 142 days and achieving a national average for 2002–03 of 69 days. The active use of courts has also increased from 62.6 per cent. to 67.3 per cent. in 2002–03, which in part reflects the continuing cross-agency approach which means that magistrates courts are being used by other agencies such as the Crown Court and tribunals.

  In particular, the Department is leading an initiative, the Case Preparation Project, which involves the other agencies in the Criminal Justice System and which is part of the work looking at what can be done to reduce the number of ineffective trials and improve the service to victims and witnesses.

  Overall, there have been a number of successes, but the work that has been announced in relation to the enforcement of fines is particularly important to ensure that there is confidence in the criminal justice system and proper implementation of judicial decisions.

  Children and Family Court Advisory and Support Service
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. David Lammy)
  The Children and Family Court Advisory and Support Service (CAFCASS) has laid before Parliament its Annual Report and Accounts for 2002–03. Copies of the Annual Report and Accounts for 2002–03 have been placed in the Libraries of both Houses.

SOLICITOR-GENERAL

  Crown Prosecution Service
  The Solicitor-General (Ms Harriet Harman)
  The Crown Prosecution Service annual report 2002–2003 has today been published and laid before Parliament.

  Copies have been placed in the Libraries of both Houses.

  Junior Counsel to the Crown
  The Solicitor-General (Ms Harriet Harman)
  The Attorney-General's Report of the Review of current Panels of Junior Counsel to the Crown has been published today. Copies have been placed in the Libraries of both Houses. A copy has also been placed on the website of the Legal Secretariat to the Law Officers, which can be found at www.lslo.gov.uk.

  The Attorney-General (Lord Goldsmith) maintains (by means of an open advertisement and application process) four panels of junior Counsel to undertake civil and EC work for all Government Departments. He has three London panels (an A panel for senior juniors, a B panel for middle juniors and a C panel for junior juniors) and a provincial panel.

  The current Panel system for Junior Counsel to the Crown was introduced in 1999, following approval by the then Attorney-General (John Morris QC) of the recommendations arising from a review undertaken by a working party chaired by the then Solicitor-General (Lord Falconer QC) in 1998.

  In March 2002, Lord Goldsmith established the Panel Counsel Review Group to review the operation of the current system. The membership consisted of lawyers from within the Government Legal Service and Counsel from the independent Bar. The Review recommends a number of measures to improve the current working of the Panel System. Lord Goldsmith accepts the recommendations, with the following two additional points:
  The issue of dual membership in London and the Provinces ought to be revisited and considered in a separate small working group, as suggested in recommendation 14 of the Report; and
  With regard to recommendation 10, Lord Goldsmith will review whether an appointment of an external Chair in future selection boards is feasible.
  Lord Goldsmith believes that this will satisfy his objective of choosing Counsel of the highest quality to advise and represent Government in a fair, open and transparent way and ensure a fair allocation of this important work across suitable candidates.

  Lord Goldsmith is grateful to all those on the Panel Counsel Review Group for their time and expertise in contributing to this review.

CULTURE, MEDIA AND SPORT

  European Capital of Culture
  The Secretary of State for Culture, Media and Sport (Tessa Jowell)
  Further to the Prime Minister's response to the Member for Cardiff, North (Julie Morgan) on 476WS
  June, my Ministerial colleagues and I have now visited or met all the cities that were shortlisted in the bidding process for the title of European Capital of Culture 2008 and discussed their plans with them. I want to build on the momentum generated by the capital of culture process and it is clear there is considerable interest in the cities in doing so. Yesterday, I discussed ideas with representatives of all twelve cities that took part in the bidding. I had hoped to make a Ministerial statement on detailed proposals before the summer recess but the cities indicated that they would like more time and I will now make the statement in the autumn.

TREASURY

  UK Debt Management Office
  The Economic Secretary to the Treasury (John Healey)
  The UK Debt Management Office's annual report and administrative accounts for 2002–03, the Debt Management Account report and accounts for 2002–03 and the National Investment and Loan Office's resource accounts are being laid before the House of Commons and published today.

  Office for National Statistics
  The Economic Secretary to the Treasury (John Healey)
  The annual report and accounts for 2002–03 of the Office for National Statistics are being laid before Parliament today. They contain an assessment of how the Office for National Statistics performed against its key targets in 2002–03. Copies are available in the Libraries of the House and electronic copies are freely available on the National Statistics website.

TRADE AND INDUSTRY

  Community Pharmacies
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  On 17 January 2003 the OFT published its report"The control of entry regulations and retail pharmacy services in the UK". On 20 March I told the House that we welcomed the OFT report which is a useful analysis of the market impact of the current control of entry rules on pharmacy provision on consumers and competition. I strongly support the OFT's role in conducting analyses of this kind, which are useful in considering the economic effects of government regulations.

  We empowered the OFT and other economic regulators under the Enterprise Act 2002 to advise where laws and regulations may create barriers to entry and competition or channel markets in a particular direction, thereby holding back innovation and progress. Recently we accepted the broad conclusions of similar OFT and Competition Commission investigations into the markets for private dentistry and prescription-only veterinary medicines.

  In responding to this report for pharmacy provision in England, the Government must take into account wider NHS policy objectives, and the impact of changes

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  in regulations on NHS services and patients. That was not part of the OFT's remit but its recommendation must be seen within that broader picture.

  Community pharmacies play a vital role, particularly in rural and poorer areas. Pharmacists are trained clinicians and not simply shopkeepers. Eighty per cent. of their income comes from NHS prescriptions whose price is fixed by government. As well as increased competition and choice we want to improve the services provided, and patient access to those services, as part of our wider programme of improvements to the NHS.

  Today my right hon. Friend the Secretary of State for Health is publishing a new vision for NHS pharmacy—"A Vision for Pharmacy in the New NHS"— which builds upon the foundations laid in "Pharmacy in the Future—Implementing the NHS Plan".

  We want to maintain and improve access to pharmacists in all our communities while continuing to raise standards. We want to encourage innovation and excellence in pharmacy provision and to reward pharmacists that provide the fullest possible range of services, including to our most vulnerable communities.

  We do not believe that simple deregulation is the best way to achieve our aims. The OFT made a strong case that the current control of entry rules impede competition and reduce benefits for consumers. But given the current shortage of pharmacists, which will persist for some years until measures which we as a government are taking increase supply, and the Government's desire to see pharmacies given a new and strong role in the modern NHS, the Government does not believe that this is the time to move to a fully deregulated system. It therefore intends to move cautiously in the direction recommended by the OFT.

  My right hon. Friend the Secretary of State for Health is today publishing a statement reporting progress on the proposed new national contractual framework for community pharmacy. The current contract is based on an agreement put in place in 1987 and needs updating. The proposed framework will provide a better basis to promote and reward high quality services for consumers. The aim is to introduce the new framework from April 2004.

  In addition we will ensure that when considering applications from new pharmacies, or pharmacies wishing to extend service provision, Primary Care Trusts will seek to promote consumer choice and harness the benefits of increased competition. This can be achieved through secondary legislation by incorporating these new criteria for a "necessary or desirable" pharmacy. A potential entrant to the market will, as now, be able to appeal against a Primary Care Trust's decision and the procedures for doing so will be simplified.

  We want pharmaceutical services to improve further their accessibility and convenience to consumers. So we will also make it easier for pharmacies to locate in areas where consumers already go, namely large shopping developments. But in doing so we must not undermine the market available to smaller community pharmacies. So only pharmacies wishing to locate in shopping developments over 15,000 square metres in size will be exempt from the control of entry requirements. And, in
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  order to prevent cherry picking of the most profitable areas of pharmacy business, an exemption will only be available to pharmacies providing a full and prescribed range of services, appropriate to local needs determined by the Primary Care Trust. We will consult on our proposal.

  Similar arrangements and conditions will apply to pharmacies that intend to open for more than 100 hours a week, and to those that are part of a consortium to establish one of the new one-stop primary care centres proposed by my right hon. Friend the Secretary of State for Health.

  Some patients prefer to get their medication through internet or mail-order based pharmacy services. For that reason we will now implement the provisions of the Health and Social Care Act 2001, subject to the range of services we want such companies to provide being agreed within the proposed new national contractual framework.

  Our aim in all of these cases is to put the needs of patients first.

  We will also reform and modernise the control of entry regulations to make them more business-friendly, to provide more certainty and reliability for companies who depend upon them and to make the process less time-consuming. This will include ensuring that decisions on applications are taken quickly by the Primary Care Trusts and that there is ready access to a sound appeals mechanism. Consistent with our approach to devolution within the NHS we will as soon as possible—assuming the pilots continue to demonstrate effectiveness—simplify the Local Pharmaceutical Services scheme by removing the need for Primary Care Trusts to obtain approval from the Department of Health.

  We expect this package—including the new contractual framework—to improve the already high quality of pharmacy provision in England.

  However, should problems of access or convenience arise in particular areas, the Essential Small Pharmacy Scheme will continue to be available, to ensure patients can access the pharmacy services they need.

  We will consult on how these changes will be implemented, and expect to publish our consultation document at the end of August, giving a full 12-week consultation period for comment.

  We will also form an Advisory Group, drawing on expertise from the pharmacy and medical world, the NHS, patient, consumer and competition interests, as well as those with a track record on regulatory reform, to advise on the details of implementation.

  We will review progress in mid-2006, involving the OFT in this review, and publish our findings.

  Taken together, we believe the measures that we propose today comprise a balanced package that will continue to raise standards for patients, will support the needs of small businesses, and will do so without jeopardising the vital role played by community pharmacies, particularly in poorer and rural areas.

  Fur Trade (Domestic Animals)
  The Minister for Trade and Investment (Mr. Mike O'Brien)
  The Government promised to report back to both Houses before the end of the Parliamentary session on investigations into the alleged import of domestic cat and dog fur into the UK.

  The Government understand the ethical abhorrence felt about this issue. Our first concern was to try to establish the facts about the extent of this trade and the level of imports of these furs entering the UK. Unfortunately, UK import statistics do not give a clear indication of whether any of these furs are being imported into the UK.

  We have faced repeated denials that these furs are entering the UK, whilst evidence that imports have come in has so far failed to show that this is happening on any significant scale, if at all. Clearly, there is a trade in such furs in some other countries. We need better evidence that it is a problem in the UK. We have been examining the options for reliable scientific tests for any products alleged to contain such furs, to ascertain reliably what animal the fur used in a particular product has come from. Such a test will be crucial in enabling Trading Standards officers to address any allegations of mislabelling that may arise under the existing Trade Descriptions Act, where manufacturers choose to label products containing fur. A reliable test of fur, to establish whether it is domestic cat or dog, would also enable the Government to determine more accurately the extent to which these products are entering the UK market.

  We have asked scientific experts at the former Laboratory of the Government Chemist, LGC Ltd., to determine what testing methods are available. We have confirmed that DNA testing is subject to a number of uncertainties that make it unreliable as a testing method for these purposes (a paper has been made available in the Library of the House detailing these uncertainties). However, we have now identified a testing method based on "mass spectrometry" that we are more optimistic can be relied upon. LGC Ltd. is working on behalf of the Government to confirm the reliability of this method. We anticipate this work ought to be complete in the Autumn of 2003.

  The Government has met interested parties to learn more about the facts of and concerns surrounding this trade. We have met Respect for Animals and the Humane Society of the United States to hear the details of their investigations into this trade. They have provided us with some anecdotal evidence of the situation regarding this trade, and have impressed on us their concern that action is taken to protect consumers, preferably at EU level. At this stage, our view is that we need more evidence of the extent of the problem, and we anticipate that these groups will shortly seek to provide that.

  We have also met the British Fur Trade Association (BFTA), the Giftware Association, the British Apparel and Textiles Association and the British Retail Confederation to explore with them what their members know about this trade. All have said that their members are not knowingly importing or selling products containing domestic cat and dog fur at this time.
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  The British Fur Trade Association have also provided us with details of a voluntary labelling scheme that they will be introducing from 1 September 2003, in parallel with their counterpart organisations in the 14 other members of the EU and in Norway and Switzerland. The scheme will be available not only to BFTA members, who are importers of a comprehensive range of fur pelts, but also to companies that are not members. BFTA has written to all known companies selling fur garments and garments with fur trim in the UK with details of the fur labelling scheme and will actively promote its introduction. While I welcome this development, I recognise that because this scheme is voluntary in nature, it may not fully address public concerns on the specific issue of imports of domestic eat and dog fur.

  The UK has also spoken to officials in several other countries where the possible trade in domestic cat and dog fur is a cause of concern. We have learnt from the US Government about the process that led to their introduction of a ban on these furs in 2000, and their experience in enforcing this ban. We have also discussed this issue with the Italian, Swedish and Danish Governments, and with the European Commission to learn from their approaches and to share the information we have gathered on this subject. Our inquiries show that hard evidence about the extent of the trade is difficult to come by.

  Nonetheless we have a better picture of the issues surrounding this problem and the level of public concern it provokes, and the Government are prepared to take practical and proportionate action. Given the Single Market, any action on this issue will be most effective if taken at EU level. The European Commission has stated that Member States can take action at the national level.

  I am therefore asking interested parties to try in the next six months to produce hard evidence of the extent of this problem in the UK and I am prepared, if such evidence can be produced, to support a ban on the import of domestic cat and dog furs. If, after six months, interested parties have not been able to produce hard evidence of the extent of this problem, the Government will say that it will not legislate until such evidence is forthcoming. In the meantime the Government will work to develop a test to enable enforcement of the Trade Descriptions Act where manufacturers choose to label a fur product and for use if we are able to legislate further.

  Nuclear Materials
  The Parliamentary Under-Secretary of State for Trade and Industry (Nigel Griffiths)
  The Department will be placing the figures for the United Kingdom's stocks of civil plutonium and uranium as at 31 December 2002 in the Library of the House. In accordance with our commitment under the "Guidelines for the Management of Plutonium", we will also be sending the figures to the Director General of the International Atomic Energy Agency (IAEA), who will circulate them to member states in due course. The figures will be available on the Department's and the IAEA's websites.
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  The figures show that stocks of unirradiated plutonium in the UK totalled 90.8 tonnes at the end of 2002. Major changes from the corresponding figures for 2001 are a consequence of continuing reactor and reprocessing operations (e.g. as reflected in the increased quantity of "unirradiated separated plutonium in product stores at reprocessing plants". Other, smaller, changes are because of the return of MOX fuel from Japan and a review of reporting categories for some of the plutonium inventories concerned. The latter has resulted in plutonium present as "work in progress" at reprocessing plants being split so that separated material in the plutonium finishing lines is reported in the category "unirradiated separated plutonium held elsewhere" along with small quantities of plutonium in material forms for which current plans envisage re-cycle via reprocessing but which is not in the form of spent fuel.

  International Accounting Standards
  The Minister for Industry and the Regions (Jacqui Smith)
  On 26 November 2002 the consultation period on the possible extension of the European Regulation on the application of International Accounting Standards ("the Regulation") ended. The Regulation requires EU companies whose securities are admitted to trading on EU regulated markets to prepare their consolidated accounts on the basis of International Accounting Standards (as adopted by the European Commission) from 2005. The Regulation includes Member State options to extend its application to any other class or classes of company, and to the individual accounts of publicly traded companies, on either a permissive or a mandatory basis.

  Having considered the responses to the consultation, I am announcing today that the Regulation will be extended by permitting publicly traded companies to use adopted International Accounting Standards in their annual accounts. All other companies will also be permitted to use adopted International Accounting Standards, in both their annual and consolidated accounts. Limited Liability Partnerships will be treated in the same way.

  This approach is consistent with the UK's long held support of the idea of common, internationally accepted standards. Companies will be able to switch to International Accounting Standards based on their own circumstances, when the benefits outweigh the costs. No additional burden will be imposed; burdens on publicly traded groups may be reduced, as they will be able to use the same standards in both their consolidated and subsidiary accounts.

  I have decided against mandatory extension for the time being, mainly because it would impose burdens. In particular, International Accounting Standards do not as yet offer a simplified regime for smaller companies comparable to that provided by the UK system. Also, International Accounting Standards are in a state of transition and their impact on companies' profits (and tax liabilities) is therefore uncertain at present.

  None-the-less, it is clearly preferable that all UK companies use the same standards in due course. I therefore propose to review the impact of the Regulation around 2008 and decide if the time is right
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  to move to mandatory use of International Accounting Standards. Time is needed for International Accounting Standards to become settled and established, for the development of a regime for smaller companies, and for companies and auditors to become more familiar with these standards.

  My Department will consult by early next year on draft regulations to make necessary amendments to the Companies Act 1985.

  Regional Development Agencies
  The Minister for Industry and the Regions (Jacqui Smith)
  The Annual Reports and Accounts for 2002–03 for the eight RDAs outside London have been published today. Copies have been placed in the Library. These cover the period immediately following the introduction of the single Budget in April 2002. The Government welcome the achievements of the RDAs during the year.

  Council of Science and Technology
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  The Office of Science and Technology undertook a quinquennial review of the Council for Science and Technology in 2002. I received the final report of the review in December 2002.

  The Government broadly accept the recommendations of the review. Further work was however needed to decide how it should be followed up. That work is now complete. Copies of the final report of the review, together with details of the Government's plans for CST's future have today been laid in the Library of the House and published on OST's website www. ost.gov. uk.

  Amongst other things, the Government have revised CST's terms of reference to make clearer the broad, cross-cutting nature of its remit. CST's new terms of reference are:
  To advise the Prime Minister1 on the strategic policies and framework for:
  sustaining and developing science, engineering and technology (SET) in the UK, and promoting international co-operation in SET;
  fostering the practice and perception of science, engineering and technology as an integral part of the culture of the UK;
  promoting excellence in SET education;
  making more effective use of research and scientific advice in the development and delivery of policy and public services across Government; and
  promoting SET-based innovation in business and the public services to promote the sustainable development of the UK economy, the health and quality of life of UK citizens, and global sustainable development.
  The Council will work on cross-cutting issues of strategic importance. taking a medium to longer term approach. In developing its advice it will take into account the cultural, economic, environmental, ethical and social context of developments in SET.
  1And possibly the First Ministers of the Devolved Administrations, depending on the outcome of discussions with those Administrations.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Sustainable Development (Government Estate)
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Ben Bradshaw)
  The Government intend to publish, the fourth part of the Framework for Sustainable Development on the Government Estate on Biodiversity at the end of July or early August. This will be available from the Sustainable Development in Government website. Copies of the website, on CD-Rom, will be paced in the Libraries of both Houses.

  The Biodiversity section of the Framework breaks new ground as this is the first time that cross-Government targets have been set covering issues such as the condition of Government owned SSSIs, and a requirement for new building and refurbishment contracts to take account of biodiversity.

  Our ongoing work on the Framework defines a set of cross-Government targets for Sustainable development, and outlines the mechanisms by which Departments will be expected to achieve them. These challenging targets give a clear indication of the Government's continued determination to take a lead in the practical implementation and achievement of Sustainable development.

  The Framework for Sustainable Development on the Government Estate can be viewed at www.sustainabledevelopment.gov.uk/sdig/improving/index.htm

LEADER OF THE HOUSE

  Select Committee Chairmen (Pay)
  The Leader of the House of Commons (Mr. Peter Hain)
  Following the debate in the House on 14 May 2002 on the First Report of the Select Committee on Modernisation of the House of Commons, HC 224-I, Session 2001–02, relating to Select Committees, the House resolved"That, in the opinion of this House, the Review Body on Senior Salaries should be invited to consider what additional remuneration is appropriate for Chairmen of Select Committees".
  The Review Body have now reported and I have today laid before the House a copy of their report entitled Pay for Select Committee Chairmen in the House of Commons (Cm 5673). Copies are available in the Vote Office and in the Libraries of the House.

  I would like to put on record my thanks to the SSRB's Chairman (John Baker CBE) and its members for its analysis on the matter.

  The SSRB has recommended an extra payment of £12,500 per annum to the Chairmen of departmental and externally focused "cross-departmental" select committees, stating that the final decision on which committees to include should be determined by the House itself.
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  The SSRB has also recommended that payment should not be implemented until the House has decided its approach to the issue of Chairmen's outside interests. I have asked the Chairman of the Committee on Standards and Privileges whether his Committee would look into the matter and report its findings to the House in the autumn.

  Members will now have the summer recess to consider the report's recommendations. I intend to discuss the matter widely and reflect on Members' views before deciding on the terms of the motion to be put before the House in the autumn.

WALES

  Student Support and Higher Education Funding
  The Secretary of State for Wales (Mr. Peter Hain)
  Following a request from the Welsh Assembly Government, the Government propose, subject to Parliamentary approval, to transfer to the National Assembly for Wales the remaining elements of higher education funding in Wales, namely:responsibility for student funding for higher and further education students domiciled in Wales, which is currently the responsibility of the Department for Education and Skills on an England-and-Wales basis; and
  full responsibility for the tuition fee regime, including powers over new policy as regards variable fees.
  This means that the National Assembly for Wales will take on responsibility for providing financial support to students domiciled in Wales, regardless of where in the UK they undertake their higher or further education. In addition, the National Assembly will take on responsibility for determining the level of fees to be charged in Welsh institutions.

  This will have the effect of ending the anomaly whereby the National Assembly for Wales has responsibility for higher education institutions but not higher education students. As we move to a situation where students increasingly contribute to the funding of institutions, this will become even more anomalous.

  Powers to collect repayments of student loans from graduates through the tax system will continue to remain a UK Government responsibility, in common with the devolution system for Scotland and Northern Ireland.

  Most functions affecting higher education in Wales, including the funding of Welsh institutions, are already the responsibility of the National Assembly for Wales. One exception is the student support system for higher education students, which is currently administered by the Department for Education and Skills both for England and Wales. Transferring these remaining functions in respect of Wales will therefore rationalise the existing split of responsibilities for higher education in Wales.

  Student support is already devolved responsibility in both Scotland and Northern Ireland. Once the transfer of functions takes effect, Wales, like Northern Ireland

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  and Scotland, will have policy responsibility for determining the level of fees and their own student support packages.

  I have been in detailed discussions with my right hon. Friend, the Secretary of State for Education and Skills and the Assembly Minister for Education and Lifelong Learning on the principles underpinning this transfer and on the means for achieving it. The Government has already announced its intention to bring forward legislation to implement a number of the proposals in the recent White Papers, The Future of Higher Education and Widening Participation in Higher Education. The intention is to bring forward legislation which will provide the National Assembly with new powers over the fees charged for higher education and over the support provided in higher education.

  We have already announced our intention, subject to Parliamentary approval, for the relevant proposals in the Higher Education White Paper such as allowing Universities to set their own fees for individual courses and removing the barrier of students having to pay fees up front—to take effect from the 2006–07 academic year. We would envisage that the National Assembly for Wales should receive the necessary powers over the tuition fee regime in time for this. We also believe that September 2006 would also be the earliest admissions round for which it would be practical to transfer the student support system to Wales.

  Our officials will continue to work on taking forward the detail of these proposals and reporting back when further details are available.

INTERNATIONAL DEVELOPMENT

  Volcanic Activity (Montserrat)
  The Minister of State, Department for International Development (Hilary Benn)
  Major volcanic activity took place on Montserrat between 12 and 14 July. This included a substantial collapse of the volcano dome, with associated pyroclastic flows and a number of explosions. Most of the volcanic flows have been to the evacuated eastern part of the island and out to sea. However, there has been heavy ash fall, and fall of rock fragments over all the inhabited parts of Montserrat. There are no reports of casualties or injuries. However, the ash fall has resulted in some damage to infrastructure plus substantial damage to crops and Montserrat's ecology. The ash has also affected other nearby islands and there has been some disruption to air traffic. The scientists monitoring the volcano advise that further activity, e.g. small explosions, can be expected in the next few days.

  DFID is continuing to work closely with the Montserrat authorities. The Government of Montserrat is managing and co-ordinating a major ash cleaning programme. We will be assisting this, and are liaising with the Government and regional donor partners to assess immediate needs and provide appropriate responses. We will continue to keep the situation under close review.

  DFID has prov ded substantial emergency and development assistance for Montserrat— over £180 million—since the start of the volcanic crisis in 1995, with a further £45.6 million between 2003–04 and 2005–06. We will continue to work with the Government of Montserrat to help achieve its ultimate goal of returning to self-sufficiency.