Written Statement of 20 November 2003

INTERNATIONAL DEVELOPMENT

  Rwanda
  The Secretary of State for International Development (Hilary Benn)
  I am today placing a copy in the Library of DFID's Country Assistance Plan for Rwanda over the next three years.

  Rwanda has made extraordinary progress since the 1994 genocide, which claimed the lives of over 800,000 Rwandans—1 in 10 of the population. The country is at peace, the economy is stable and growing, access to quality education and health services is increasing rapidly, and the incidence of poverty is declining, from around 70 per cent. in 1994 to under 60 per cent. in 2001. But the challenge remains immense. All of Government's actions are driven by the need to reconcile the people and build a new "Rwandan" (rather than ethnic) identity. This will take time. Meanwhile, it must balance the need to open up space for legitimate political debate with the reality of extreme social fragility. The price of failure may be renewed conflict.

  The UK will remain Rwanda's major bilateral development partner. Recognising Rwanda's traumatic past, its continuing severe needs, the potential for instability in the region, and the Government of Rwanda's commitment to poverty reduction and to establishing a democratic and inclusive state, DFID's programme will rise from £37 million in this financial year to £42 million next year and £47 million the year after. Two-thirds of our programme will continue to be delivered as direct budgetary support, to help finance the Government of Rwanda's own strategy. DFID believes that where adequate government structures and systems are in place, such support can have the greatest impact on poverty. We will continue our support for capacity building around Government's strategic planning and budgeting processes, revenue collection and education. We will also develop two major new programmes, aimed at supporting rural livelihoods and at strengthening the capacity of civil society organisations to represent Rwandan citizens and progressively secure their human rights.

  Our engagement with the Government of Rwanda will continue to be based upon the joint commitments set down in the UK/Rwanda Memorandum of Understanding. These commitments include: the promotion of peace and stability within the Great Lakes region, including the promotion of transparency and legality of the exploitation of the region's natural resources; the promotion and protection of all human rights, and; establishing a democratic and inclusive state. We have a substantive and honest dialogue with the Government of Rwanda on progress towards these commitments, supported by an annual independent review. Should we believe that the Government of
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  Rwanda is not honouring the commitments made in the Memorandum of Understanding, and where the consultation process provided for within the Memorandum of Understanding fails to satisfy our concern, then the UK Government reserve the right to amend or suspend our engagement with the Government of Rwanda. Our analysis, and that of the independent review, is that the Government of Rwanda remains committed to progressively securing all human rights for its citizens and to establishing a democratic and inclusive state. Our engagement will help the Government of Rwanda to make good on those commitments.

TRANSPORT

  Streetworks
  The Parliamentary Under-Secretary of State for Transport (Mr. Tony McNulty)
  Regulations under section 74A of the New Road and Street Works Act 1991 allow highway authorities to charge utility companies a daily rate, commonly known as "lane rental", whenever the latter carry out works in the street. The powers have not, as yet, been activated nationally, but are being tested in pilot schemes in the London Borough of Camden and in Middlesbrough.

  The Department for Transport appointed consultants, Halcrow, to monitor the effectiveness of the powers in reducing disruption on the highway. Halcrow have now produced their first annual report, covering the period March 2002 to February 2003. The report consists of two Volumes; Volume 1 is the main report and Volume 2 contains accompanying tables and charts. Copies of each have been placed in the Libraries of both Houses.

FOREIGN AND COMMONWEALTH AFFAIRS

  Iraq
  The Secretary of State for Foreign and Commonwealth Affairs (Mr. Jack Straw)
  On 15 November, Jalal Talabani, President of the Iraqi Governing Council, announced a programme and timetable for a new constitution and elections in Iraq. Under the plan, the Governing Council will draft a Fundamental Law by February 2004, which will be based on the respect of human rights, freedom of speech and religious tolerance. The Fundamental Law will apply for the transitional period until full national elections.

  A Transitional National Assembly will be established by June 2004 through transparent and democratic caucuses at provincial and local level, facilitated by the Governing Council and the Coalition Provisional Authority (CPA). The Assembly will elect an executive and ministers as the Iraqi Transitional Government by July 2004, by then, the progressive handover of executive and legal authority from the CPA will be complete, and the Coalition's legal occupation will come to an end. The Transitional Government will oversee elections to a Constitutional Convention by March 2005, which will promulgate a new permanent

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  constitution for Iraq. A referendum on the new constitution will take place before full elections of a new representative Iraqi government at the end of 2005.

  The programme announced by Mr. Talabani is an important and welcome step forward, and comes in response to the wishes of Iraqis themselves. It should enable the coalition to fulfil the shared goal of ensuring a progressive transfer of executive and legislative authority to the Iraqi people as soon as possible. It responds to the Iraqi people's wish that the body tasked with writing a permanent constitution be elected. The plan will bring an earlier end to the status of the UK and US as occupying powers, and will enable the Iraqis to develop their democratic institutions leading to full direct elections for a new government.

  The plan announced by Mr. Talabani will also meet the requirement under UN Resolution 1511 for the Iraqi Governing Council to report to the Security Council by 15 December with
  "a timetable and a programme for the drafting of a new constitution for Iraq and for the holding of democratic elections under that constitution".
  The Secretary-General of the UN, Kofi Annan, has said he is heartened by the announcement. I have already spoken to him and stressed that we will work with him to ensure the UN plays a vital role as set out in Resolution 1511.

  Alongside this political progress, everyday life for Iraqis on the ground is steadily improving. Over 14,000 reconstruction projects have been launched. Almost all 240 hospitals and more than 1200 clinics are open, as are almost all schools. More than 200 newspapers have appeared. Satellite dishes, which were illegal under Saddam's regime, are now freely available and widely used. Electricity production has surpassed pre-conflict levels.

  This announcement does not mean any reduction of our long-term commitment to Iraq. We stand ready to assist the Transitional Government in the task of rebuilding the country and its civilian institutions. We hope that other countries, international organisations, particularly the UN, and NGOs will continue to support us in this task, as envisaged at the Madrid donors' conference. Our military contribution to the multinational force of over 30 countries in Iraq will also continue, in agreement with the Iraqi Governing Council and Transitional Government, until the Iraqis themselves are able to assume full responsibility for their own security. Already Iraq's own security forces—so far 40,000 police, plus the Iraqi Civil Defence Corps and the New Iraqi Army—are growing in strength. They are working courageously with the support of coalition troops to combat the reactionary forces who want to deny the Iraqi people the security, representative
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  government and prosperity they deserve. They can be confident of our support for as long as they feel it is required.

TREASURY

  Inland Revenue
  The Paymaster General (Dawn Primarolo)
  On 8 September 2003, I announced legislation for Finance Bill 2004 to ensure that, for Inland Revenue taxation matters, the usual six year time limits apply to common law actions for relief from the consequences of a mistake of law as apply for other actions to recover direct tax. The change applies to court actions brought on or after 8 September 2003. The intended effect is to restore balance to the tax system so that broadly similar time limits apply to assessments and repayments. Draft clauses for inclusion in Finance Bill 2004 were published at the time of the announcement.

  Some claimants who had commenced proceedings before 8 September 2003 are seeking to amend their claims to add in years beyond the normal time limits. They are doing so because, under existing law, if the courts allow an amendment of this sort, it is deemed to be a new action started on the date of the original action. So it is arguable that the legislation announced on 8 September would not apply to such an amendment. And, other claimants may also seek to amend their existing claims to add in years beyond the normal time limits.

  This places tax revenues at risk. And whilst the Inland Revenue may well succeed in opposing amendments to existing claims in the courts, I believe that this risk is unacceptable.

  I am therefore announcing today amended draft legislation to ensure that tax revenues are further protected. The amended draft legislation will prevent amendments being made to proceedings for relief from the consequences of a mistake of law, commenced before 8 September, to introduce new periods of claim for years beyond the normal time limits. The change announced today will not, however, affect applications made to the court before today.

  This draft clause is applicable to England, Wales and Northern Ireland. The draft legislation applying to Scotland is unchanged. This is because the new issue that has arisen is not relevant in Scotland.

  Today's Inland Revenue News Release giving the relevant background to this measure and the amended draft clause for inclusion in Finance Bill 2004 have been deposited in the Library of the House and are also accessible on the Inland Revenue's website http://www.inlandrevenue. gov. uk/.