Written Statement of 9 February 2004

DEPUTY PRIME MINISTER

  Greater London Authority
  The Minister for Housing and Planning(Keith Hill)
  The Greater London authority general grant for 2004–05 today been determined at £36,328,000, following consultation with the Mayor of London. This grant is a block grant paid for the purposes of the authority and its functional bodies.

HOME DEPARTMENT

  National Asylum Support Service
  The Minister for Citizenship and Immigration (Beverley Hughes)
  On 15 July 2003, I published the key findings from the report of the independent review of the Operation of the National Asylum Support Service (NASS), and I promised a further statement in due course about the action taken in the light of the review. As I indicated in July, the review has formed the basis of a major programme of reform. Progress against that programme continues to be overseen by a steering group chaired by Bill Jeffrey, Director General of the Immigration and Nationality Directorate reporting directly to me. The Steering Group includes an external perspective provided by Alan Barnish who was a member of the independent review team. I am now in a position to update the House on progress which has been made in—implementing this programme, since the review was completed six months ago.

  The review made it clear that some key issues needed to be addressed. It is still the case that NASS faces significant challenges, due, among other factors, to the complexity and visibility of its role. But in the last six months NASS has both raised its performance in a number of specific areas highlighted by the review, and laid the foundations for sustained medium and longer-term improvements across its business as a whole. The timed action plan I referred to in my July statement is now in place.

  Action in relation to Key Findings:

  KEY FINDINGS (1) AND (2);

  For NASS to perform at its best it needs to:

  be clear what is expected of it and how its success will be judged;

  have the financial and managerial resources to do the job;

  have a thorough understanding of its own strengths and weaknesses;

  have a clear view of what it needs to do to improve its performance;

  understand its impact on the whole end to end asylum process;

  54WS

  sort out some of its key business processes and procedures;

  get better at working with the rest of IND in a fully joined up operation.

  NASS needs to have its purpose, aims and role clarified and re-affirmed by Ministers. It needs to be given a realistic remit and the necessary resources and political support to do that job.

  The principles of good performance identified by the review have been accepted and are being applied. NASS's purpose, aim and role have been clarified and reaffirmed by Ministers. Appendix A shows the statement of NASS's purpose, aims and roles (collectively comprising NASS's strategic intent) which have been developed. Appendix A also shows the nine objectives on which NASS is now concentrating its effort upon support of the overall strategic intent.

  KEY FINDING (3):

  NASS needs urgently to improve its operational performance and standards of customer care. It needs to get better at working with its partners and stakeholders, and much slicker at sorting out basic processing errors especially when these affect individual asylum seekers and damage the reputation of the organisation.

  The communications team within NASS has been strengthened and is developing a strategic framework for NASS's contact with external partners and stakeholders. A new National Asylum Support Forum has been established with partner organisations and has met three times since the statement on 15 July.

  Significant improvements have been made to the performance of IND's Telephone Enquiry Bureau (INEB). As part of that, the average time it takes to get through to INEB's cash support helpline has fallen in the past eight months from over three and a half minutes to under one minute.

  KEY FINDING (4):

  NASS needs to strengthen its management capacity at all levels. Two new senior posts have already been created, but more needs to be done in the middle tier of the organisation which is under-resourced and hence weak.

  A new governance structure has been developed and is now in place. The senior management team (SMT) has been strengthened through the appointment of experienced officials to the two new senior civil service posts. A separate and larger programme group is tasked with driving forward the many additional and cross-cutting strands of project-based work within the organisation. The middle tier of the organisation has been strengthened by the delivery, over the period, of management training to 150 NASS managers.

  KEY FINDING (5):

  NASS needs a realistic three-year budget and flexibility in the way it can be used to respond quickly to changing circumstances and opportunities without going through over elaborate bureaucratic processes.

  An appropriate 3-year budget has been put in place together with arrangements for reviewing it, and therefore achieving flexibility within the context of IND's overall budgetary framework.
  55WS
  KEY FINDINGS (6) AND (7):

  NASS needs support to develop and implement a medium term strategy. This must be produced in the context of an overall strategy for IND which clarifies and strengthens the links between NASS and the other parts of the asylum system.

  A medium term plan needs to address:

  What they should be aiming to get out of the next round of accommodation and other contracts;

  What phase 2 of the regionalisation should look like;

  How to work better as an integrated part of IND and develop meaningful relationships with key stakeholders.

  In parallel with addressing the immediate concerns identified by the review, NASS is developing a medium term strategy to ensure improvements are sustained and built upon.

  An IT steering group has been set up within NASS and a NASS IT strategy is being prepared. This work is fully integrated with ongoing IND-wide developments in the field of IT. The Home Secretary announced on 24 October 2003 that families who sought asylum in the UK more than three years ago would be considered for permission to live and work here. In implementing this announcement, we are piloting web-based software which enables NASS, others in IND, and our partners in central and local government, to have real time access to the live information we need to ensure an efficiently managed process.

  A major stakeholder event was held in Woking in November 2003 to look at the challenges and priorities involved in renewing NASS's contracts with accommodation providers, many of which will expire in 2005. We are currently considering how to put the Woking recommendations into practice.

  The first phase of regionalisation has successfully been rolled out and most of the necessary embedding of functions has been completed. NASS is now managing housing management, outreach and investigation work from its new regional locations. As a result there is much more face to face contact between the organisation and supported asylum seekers. Through the establishment of these closer links and those with its key partners, positive steps have already been taken to improve service delivery and to ensure that wider issues are dealt with more effectively.

  Planning is now underway for the second phase. This will focus on improving the services currently provided centrally by NASS to dispersed asylum seekers through a wholesale review of current arrangements for managing casework. I believe this will be much welcomed by many of the key stakeholders concerned. This is a large and complex area of activity and will require a staged programme of work to ensure an effective transfer of functions.

  KEY FINDINGS (8) AND (9):

  NASS needs a period of stability to enable it to get on top of the job. It also needs confidence that it will not have to cope with any new initiatives and reviews without adequate time and resources to handle and implement them safely.
  56WS
  NASS needs to be allowed to use the breathing space provided by the drop in intake numbers to get on top of the job, not to take on new tasks.

  Especial care is being taken to avoid allocating tasks to NASS which are not fully within its role and for which it is not equipped.

  NASS's strategic intent comprises its purpose, aim and role, as follows:

  Purpose—to provide a system of basic support to eligible asylum seekers;

  Aim—to provide a system that is cost effective and which contributes to cohesive communities and to effective integration for those who are granted asylum;

  Role—to;

  arrange provision of accommodation to asylum seekers for the period they qualify;

  arrange provision of subsistence payments to asylum seekers for the period they qualify;

  work with the rest of IND to deliver an effective end to end asylum process, and to work in partnership with other agencies to deliver the above.

  NASS' s strategic objectives are to:

  improve day to day business performance;

  reduce support costs;

  fully engage and develop our staff;

  improve responsiveness to queries relating to asylum support;

  deliver effective and efficient regionalisation;

  deliver appropriate and cost effective accommodation for asylum seekers;

  deliver our business in a way which supports community cohesion;

  improve linkages with other parts of the asylum process;

  engage better with stakeholders and improve communications.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Bovine Tuberculosis
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs(Mr. Ben Bradshaw)
  At last year's National Farmers Union annual general meeting the Secretary of State announced a review of our bovine tuberculosis strategy. Today I am launching a consultation document that represents the outcome of the first stage of that review. The consultation period will last for 12 weeks and close on Tuesday 4 May 2004.

  Copies of the consultation document are available in the Libraries of both Houses and can also be viewed on the Department's website at www.defra.gov.uk/ animalh/tb/index.htm

INTERNATIONAL DEVELOPMENT

  Spring Supplementary Estimates
  The Secretary of State for International Development (Hilary Benn)
  Subject to Parliamentary approval of the necessary supplementary estimate the Department for International Development DEL for 2003–04 will be
  57WS
  increased by £197,583,000 from £3,756,454,000 to £3,954,037,000 and the administration costs limit has been increased by £2,566,000 from £212,250,000 to

  (£'000)

  Resources

  Capital

  Change

  New DEL

  Of which:voted

  Non-voted

  Change

  New DEL

  Of which:voted

  Non-voted

  170,083

  3,936,037

  3,064,152

  871,885

  27,500

  39,000

  39,000

  —

  The change in the resource element of the DEL arises from

  RfR 1: Eliminating Poverty in Poorer Countries
  A transfer of £15 million from the unallocated subhead to the reducing poverty in the rest of the world subhead
  The take up of DEL end year flexibility for 2002–03 of £102,791,000 resource for programme costs. £41,395,000 has been allocated to the reducing poverty in Africa subhead, £40,896,000 to the improve the effectiveness of multilateral aid;
  A transfer of £1,500,000 resource from the reducing poverty in Asia administration subhead to the reducing poverty in Africa administration subhead;
  A transfer of £1 million resource from the reducing poverty in the rest of the world administration subhead to the reducing poverty in Africa administration subhead;
  A transfer of £1,500,000 resource from the developing innovative approaches to development administration subhead to the programmes contributing to multiple objectives administration subhead;
  A transfer of £6,500,000 resource from the central reserve as a contribution to Iraq reconstruction to the reducing poverty in the rest of the world subhead;
  A transfer of £15 million resource from the improve effectiveness of multilateral aid subhead to capital DEL; £13,240,000 to the reducing poverty in the rest of the world subhead and £1,760,000 to the reducing poverty in Africa subhead;
  A transfer of £1,050,000 resource from the reducing poverty in Africa subhead to capital DEL. £530,000 to the reduce poverty in Africa capital subhead, £270,000 to the reducing poverty in the rest of the world subhead and £250,000 to the central departments subhead;
  A transfer of £1,050,000 resource from the reducing poverty in Asia subhead to capital DEL. £210,000 to the reduce poverty in Asia capital subhead, £40,000 to the reducing poverty in the rest of the world subhead, £120,000 to the developing innovative approaches to development subhead, £170,000 to the programmes contributing to multiple objectives subhead and £510,000 to the central departments subhead;
  A transfer of £950,000 resource from the reducing poverty in the rest of the world subhead to capital DEL, central department subhead; A transfer of £910,000 resource from sub-Saharan Africa conflict prevention non-voted departmental unallocated provision to the Ministry of Defence;
  A transfer of £11 million resource from the Foreign and Commonwealth Office to the global conflict prevention subhead.

  The change in the capital element of the DEL arises from:
  transfers from the resource to the capital budget as listed above;
  to reflect an expected reduction of £8,400,000 appropriation-in-aid in the capital DEL, and a corresponding reduction in the gross capital provision;
  58WS
  £214,816,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  the take up capital DEL end year flexibility for 2001–02 of £8,621,000; £8,400,000 has been allocated to the improve efficiency of multilateral aid subhead and £221,000 to the central departments subhead.

  The increase will be met by inter-departmental transfers or from the DEL Reserve and will not therefore add to the planned total of public expenditure.

TREASURY

  Economic Reform in the EU
  The Chancellor of the Exchequer(Mr. Gordon Brown)
  The Government are today publishing a new report on economic reform in the EU.

  The report evaluates the progress made in reforming Europe's economy since the March 2000 Lisbon European Council, noting both the EU's achievements over the past four years, and the scale of the challenge ahead if Europe is to compete effectively in the global economy and meet its goals of higher productivity, more and better jobs and greater social cohesion. It notes that, while 6 million jobs have been created in Europe since 1999, a further 21 million are needed to meet the Union's target for 2010. Moreover, productivity in the US remains at least 14 per cent. higher than that in the EU.

  The report concludes that further action is needed to improve efficiency and productivity in Europe, with steps to promote increased labour, product and capital market flexibility. It sets out a series of areas for reform ahead of the forthcoming spring European Council, including to improve the regulatory framework in Europe, strengthen the single market, deliver more and better jobs, promote enterprise and innovation, ensure an ambitious outcome to world trade negotiations, strengthen the transatlantic economic relationship, and meet the challenge of sustainable development.

  Copies of the report are available in the Vote Office and the Library of the House.

HOME DEPARTMENT

  Serious Organised Crime Agency
  The Secretary of State for the Home Department(Mr. David Blunkett)
  Since 1997 crime in England and Wales has fallen by a quarter. The chances of being a victim of crime are now at their lowest for over 20 years. At the same time, we continue to face a major challenge from organised crime which costs the country billions of pounds in lost revenue, facilitates 70 per cent. of all illegal immigration to the European Union and can cause local communities huge damage, for example through its link with local drugs markets and all the
  59WS
  problems of addiction and crime that go with them. The UK crack and heroin markets alone are estimated to be worth £3 billion per year.

  Organised criminals are willing to resort to extreme violence, intimidation and corruption to protect their illegal businesses. They often display detailed awareness of law enforcement methods and take sophisticated counter-measures including counter-surveillance techniques and elaborate money laundering arrangements. Through their involvement in people trafficking, organised criminals exploit the vulnerable and deal in human misery as appears to be the case in the tragic events at Morecambe Bay at the end of last week. They use every legal device available to them to evade prosecution when they are arrested.

  Responsibility for tackling organised crime has until now been spread across a range of different agencies. Each of them has been highly effective in their own area of specialism—and I pay tribute to the outstanding work they and their staff have undertaken to date—but each must also work within its own priorities and departmental structures. This can make co-ordination difficult and has led to blurred lines of accountability in some key areas like drugs and fraud and to a lack of critical mass in some important skill areas like those required to tackle financial and other economic crime.

  In response to these issues, the Prime Minister announced last July that the Government would be reviewing the structures of our national law enforcement agencies responsible for investigating serious organised crime.

  Over the past six months we have undertaken detailed consultations with all those involved in fighting organised crime, including the police service and all of the relevant national agencies and regulators. The clear view from almost all we consulted was that the present arrangements were not satisfactory and that there was a strong case for rationalising existing structures.

  I can therefore today announce the next step in this process. Drawing on the lessons from this consultation we intend to bring together in a single national agency—the Serious Organised Crime Agency—which will report to me, the responsibilities which currently fall to the National Criminal Intelligence Service, the National Crime Squad, the Home Office's responsibilities for organised immigration crime and the investigation and intelligence responsibilities of HM Customs and Excise in tackling serious drug trafficking and recovering related criminal assets. The agency will also bring a new focus to bear on dealing with the problem of financial crime.

  The creation of the new agency is a key part of a wider series of changes including new powers available to tackle organised crime. I will set out the detail of all these changes in a statement to the House when I publish a policy paper within the next few weeks.

  The new agency will have as its core objective reducing the harm caused to the UK and its citizens by organised crime including the trafficking of drugs and people. It will have the capabilities to make a real difference through enhanced intelligence, financial investigation skills, economic analysis and better and more sophisticated use of technology. It will develop a comprehensive strategy for reducing the harm caused by organised crime and will be much more than the sum of
  60WS
  its parts, drawing on best practice and skills from all the existing agencies to focus on those criminals and criminal markets causing us the most harm. It will work very closely with the revenue departments which will continue to be responsible for tackling revenue and tax fraud. It will build on the determination, professionalism and success of the existing agencies and their staff and will be approaching 5,000 strong.

  The new agency will work closely with police forces, regulators and others throughout the UK. Its focus will be on crime that crosses national and international frontiers. But, where a request is made, or where it is otherwise agreed, it will also have a key role in supporting individual police forces in tackling crime that crosses police force boundaries. It will provide intelligence from criminal activity to the wider law enforcement community, drawing on the intelligence they themselves provide in developing a firm understanding and strategy.

  The agency will have a UK-wide remit. However, in Scotland and Northern Ireland, the Scottish Drug Enforcement Agency and the police service of Northern Ireland will continue to exercise the functions they currently undertake in partnership with existing UK agencies.

  Specialist prosecutors answerable to the Attorney General will co-operate closely with officers of the new agency and work alongside them wherever this makes good operational sense. They will be available whenever required to provide comprehensive, practical and specialist advice to help shape investigations and develop strong and well-presented cases for prosecution. The specialist prosecutors will stay with each case from the outset of investigations right through to the point of sentence.

  The arrangements for the agency's governance will be crucial. A Home Office-led taskforce, including representatives of those who will form part of the new organisation, will consult stakeholders on this and report back by the end of this month enabling me to give further details to the House in the statement to which I have already referred. The agency will need high powered and dynamic leadership to ensure it becomes a world leader in its field, so I am today appointing an executive search agency to help us recruit a Chairman and Director-General, with a view to having them in place by the early summer.

  Until their appointment, representatives of all the agencies concerned will be driving forward the transition process, under Home Office chairmanship, to enable the agency to get off to a rapid and effective start.

  We shall take the earliest opportunity to seek Parliament's approval for the legislation needed to establish the Serious Organised Crime Agency but will seek as far as possible to anticipate the benefits of these changes through closer joint working and operations, training and secondments so that this transitional phase enhances rather than disrupts this critical work.

  Those who seek to damage our country and undermine our way of life through organised crime will continue to grow in expertise and sophistication. We must more than match them and ensure that the skills and insights we have developed in different areas are shared. These proposals will enable us to respond to these challenges effectively in the years ahead.

DEFENCE

  Veterans
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  I am announcing the launch today of "Heroes Return". This forms a central element of what has now become the "Veterans Reunited" programme, and will enable all generations to join together to remember and commemorate the 60th anniversary of the remarkable events of 1944 and 1945 that led to the end of the Second World War.

  The New Opportunities Fund in collaboration with the Department for Culture Media and Sport and the Ministry of Defence has made available £10 million of National Lottery funding for many thousands of veterans to return to the overseas areas in which they saw active service during the second world war. These visits will generate a rich supply of "living memories" for our schools and museums and young people will have the opportunity to learn from veterans experiences.

  In addition to the crucial role of the New Opportunities Fund and DCMS, the Veterans Agency will provide applicants with advice and support through their free phone helpline on 0800 169 2277, and further information is available on the website at www.veteransagency.mod.uk.

CABINET OFFICE

  Regulation Task Force Report: "Independent Regulators"
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander)
  I am today publishing the Government's response to the Better Regulation Task Force's report "Independent Regulators", which the task force issued on 15 October 2003. I would like to take this opportunity to thank them for the work they have undertaken in producing their report, and to welcome the recommendations they have made, all 14 of which have been accepted by the Government.

  In our response, we have emphasised our support for regulators to adopt the five principles of good regulation, and the code of practice on consultation; and to produce regulatory impact assessments for any new policies or initiatives which they originate. We commend the use of the enforcement concordat by relevant regulators. Government will consider very carefully the scope and scale of existing regulators before establishing a new one, and assess regularly their continuing effectiveness once established. We are to carry out a review of the variety and complexity of public bodies sponsored by central Government Departments, and this will encompass consideration of regulatory bodies.

  The task force has rightly highlighted the point that the subject of the report was 'independent' regulators, so Government's role is to encourage, support and guide the regulators in their tasks, not to enforce rules and procedures. It is also the case that independent regulators are a very disparate band of bodies, so it would be impossible to produce a one size fits all set of very detailed responses. We must also be wary of
  62WS
  increasing the costs of and burdens on the regulatory community, and those whom they regulate, unless we can be satisfied of the value of the outcomes achieved.

  Copies of the report and the Government's response are available in the Libraries of both Houses, and will be available on the Better Regulation Task Force's website at:-http://www.brtf.gov.uk/taskforce/pastreports.htm.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Rights of Way (Crime Prevention)
  The Minister for Rural Affairs and Local Environmental Quality (Alun Michael)
  At a seminar in London later today, I will be announcing the names of those authorities whose nominated areas will included in a second designation order under section 118B of the Highways Act 1980. My Department and the Home Office are jointly sponsoring the seminar, which deals with crime reduction on rights of way. Over 180 delegates from local authorities, the police and crime and disorder reduction partnerships are expected to attend.

  Designation will enable these highway authorities to make orders to close or divert rights of way to prevent crime. The designation order will be subject to the negative resolution procedure and will be laid as quickly as possible so that authorities can begin to use their new powers as soon as possible.

  Two of the authorities concerned—Hillingdon and Leeds—were deferred from the first round of applications to give them the opportunity to provide the required level of evidence that rights of way in those areas are facilitating crime.

  The remainder are all new applications received since last year. These are from Brighton and Hove, Middlesbrough, Nottingham, Oldham, York, Swale and the Wirral. A list of the authorities and the areas is set out below.

  The quality of applications was very good and I am satisfied that in each of these areas there are very real problems with crime associated with the public rights of way, and that other means of crime prevention had been tried and had failed.

  Tackling crime and antisocial behaviour remains one of the Government's top priorities. This announcement today is very good news for the many people living in areas such as these which are blighted by burglary, robbery, drug dealing and general antisocial behaviour.

  I have written to each of the nine authorities to inform them of my decision. I have also written to those Members of Parliament whose constituencies are directly affected to let them know what has been decided.

  It remains my view that, in general rights of way do not cause or facilitate crime, but that we need to act vigorously where there is a connection.

  63WS

  Authority (9 in total)

  Areas (20 areas)

  Brighton and Hove City Council

  Whitehawk Estate

  London Borough of Hillingdon

  Frankie's Alley

  Leeds City Council

  1. Seacroft, Halton Ward

  2. St Alban's Estate, Burmantofts Ward

  3. St Martin's Gardens, Chapel Allerton Ward

  4. University Ward

  5. Wensley Green, Chapel Allerton Ward

  6. Seacroft Ward

  7. Calverley Gardens, Bramley Ward

  Middlesbrough Council

  Keswick Grove

  Nottingham City Council

  Rise Park

  Oldham Metropolitan Borough Council

  1. Werneth/Hollinwood

  2. St Paul's/Alexandra

  3. East Oldham—St Mary's/Waterhead/Lees

  Swale Borough Council

  Marine Town

  York City Council

  1. South Bank

  2. The Groves

  3. Clifton/Bootham

  Wirral Metropolitan Borough Council

  1. Wallasey

  2. Tranmere (Rock Ferry and New Ferry)

FOREIGN AND COMMONWEALTH AFFAIRS

  Liberia
  The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Bill Rammell)
  With the support of Her Majesty's Government, the United Nations Security Council on 22 December 2003 unanimously adopted United Nations Security Council resolution 1521(2003). The resolution revised the determination for the basis of sanctions against Liberia—UNSCR 1343(2001) was based on Liberia's64WS
  (in particular former President Charles Taylor and the former Government of Liberia) threat to Sierra Leone. The new resolution is based on Liberia's instability and the threat of proliferation of arms and armed non-State actors (including mercenaries) and their potential threat to the greater sub-region. The measures against Liberia remain the same: an arms embargo, a travel ban, a timber ban and a diamond embargo. The lift criteria have been revised. The travel ban will be started from scratch and include those who constitute a threat to the peace process in Liberia, or who are engaged in activities aimed at undermining peace and stability in Liberia and the sub-region (including senior members of former President Charles Taylor's Government and their spouses and members of Liberia's former armed forces who retain links to former President Charles Taylor).

  Sudan
  The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Bill Rammell)
  With the support of Her Majesty's Government, the original council decision 94/165/CFSP of 15 March 1994 imposing a EU arms embargo against Sudan was repealed and replaced by common position CFSP/31/2004 on 9 January 2004. A council regulation will follow shortly. The embargo prohibits(a) the delivery or supply of arms and related matériel to Sudan; (b) the provision of technical assistance, brokering services and other services related to military activities and to the provision, manufacture, maintenance and use of arms and related matériel to any person, entity or body in. or for use in, Sudan; and (c) the provision of financing or financial assistance related to military activities to any person, entity or body, in or for use in. Sudan. Exemptions to the embargo are permitted for non-lethal military equipment intended solely for humanitarian or protective use, institution building programmes of the UN, EU and European Community, for matériel intended for EU and UN crisis management, for de-mining equipment and matériel for use in de-mining operations, and for the provision of financing, financial assistance and technical assistance related to such equipment.

  Gibraltar: Constitutional Proposals
  The Minister of State, Foreign and Commonwealth Office (Baroness Symons of Vernham Dean)
  The Chief Minister of Gibraltar wrote to my right honourable friend the Foreign Secretary on 22 December, formally tabling proposals for reform of the 1969 Gibraltar Constitution. He has replied, acknowledging the importance of these proposals to Gibraltar, and saying that they will receive the most careful consideration. He expects to meet the Chief Minister soon for an initial discussion.

  The cornerstone of our policy towards Gibraltar remains the sovereignty commitment, that the UK Government will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes. Whatever the outcome of the present proposals, that position will not change.

  The starting point for consideration of these proposals is the Government's general policy towards the UK's relations with our Overseas Territories, as set out in the 1999 White Paper, Partnership for Progress and Prosperity: Britain and the Overseas Territories (Cm 4264). As my honourable friend, the Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Rammell) said in his Written Statement of 18 December 2003 (Official Report, Commons, cols 151WS–152WS) the security and good governance of the Overseas Territories remains a key foreign policy objective for this Government.

  While the people of Gibraltar wish to remain British, it is essential that there should be an appropriate balance of powers between the UK and Gibraltar. While we recognise the aspiration of the people of Gibraltar to manage more of their own affairs, the UK Government must have sufficient and effective powers to protect their overall responsibility for ensuring good governance, compliance with international obligations and minimisation of contingent liabilities. An assessment of the powers required by the UK Government to deliver a balanced and modern relationship must, in particular, take full account of the fact that the UK is responsible for Gibraltar's compliance with EU law, including ultimately before the European Court of Justice. And, in considering the constitutional relationship between the UK and Gibraltar, Her Majesty's Government will take account of Gibraltar's particular circumstances and the wider international context.
  WS 38
  This Government will therefore study the proposals put forward by the Gibraltar Government, and look forward to discussion of them in due course, with a view to the further development of a modern and appropriate relationship with Gibraltar.

  Liberia: Amendment of UN Sanctions
  Baroness Symons of Vernham Dean
  With the support of Her Majesty's Government, the United Nations Security Council on 22 December 2003 unanimously adopted United Nations Security Council Resolution 1521 (2003). The resolution revised the determination for the basis of sanctions against: Liberia. UNSCR 1343(2001) was based on Liberia's (in particular former President Charles Taylor and the former Government of Liberia) threat to Sierra Leone. The new resolution is based on Liberia's instability and the threat of proliferation of arms and armed non-state actors (including mercenaries) and their potential threat to the greater sub-region. The measures against Liberia remain the same: an arms embargo, a travel ban, a timber ban and a diamond embargo. The lift criteria have been revised. The travel ban will be started from scratch and include those who constitute a threat to the peace process in Liberia, or who are engaged in activities aimed at undermining peace and stability in Liberia and the sub-region (including senior members of former President Charles Taylor's government and their spouses and members of Liberia's former armed forces who retain links to former President Charles Taylor).

  Sudan: Amendment of EU Sanctions
  Baroness Symons of Vernham Dean
  With the support of Her Majesty's Government, the original Council Decision 94/165/CFSP of 15 March 1994 imposing an EU arms embargo against Sudan was repealed and replaced by Common Position CFSP/31/2004 on 9 January 2004. A Council regulation will follow shortly. The embargo prohibits (a) the delivery or supply of arms and related materiel to Sudan; (b) the provision of technical assistance, brokering services and other services related to military activities and to the provision, manufacture, maintenance and use of arms and related materiel to any person, entity or body in, or for use in, Sudan; and (c) the provision of financing or financial assistance related to military activities to any person, entity or body, in or for use in, Sudan. Exemptions to the embargo are permitted for non-lethal military equipment intended solely for humanitarian or protective use, institution building programmes of the UN, EU and European Community, for materiel intended for EU and UN crisis management, for demining equipment and materiel for use in demining operations, and for the provision of financing, financial assistance and technical assistance related to such equipment.

  Organised Crime
  The Minister of State, Home Office (Baroness Scotland of Asthal)
  Since 1997 crime in England and Wales has fallen by a quarter. The chances of being a victim of crime are now at their lowest for over 20 years. At the same time, we continue to face a major challenge from organised crime which costs the country billions of pounds in lost revenue, facilitates 70 per cent of all illegal immigration to the European Union and can cause local communities huge damage, for example through its link with local drugs markets and all the problems of addiction and crime that go with them. The UK crack and heroin markets alone are estimated to be worth £3 billion per year.

  Organised criminals are willing to resort to extreme violence, intimidation and corruption to protect their illegal businesses. They often display detailed awareness of law enforcement methods and take sophisticated counter measures including counter surveillance techniques and elaborate money laundering arrangements. Through their involvement in people trafficking, organised criminals exploit the vulnerable and deal in human misery as appears to be the case in the tragic events at Morecambe Bay at the end of last week. They use every legal device available to them to evade prosecution when they are arrested.

  Responsibility for tackling organised crime has until now been spread across a range of different agencies. Each of them has been highly effective in their own area of specialism—and we pay tribute to the outstanding work they and their staff have undertaken to date—but each must also work within its own priorities and departmental structures. This can make co-ordination difficult and has led to blurred lines of accountability in some key areas like drugs and fraud and to a lack of critical mass in some important skill areas like those required to tackle financial and other economic crime.

  In response to these issues, my right honourable friend the Prime Minister announced last July that the government would be reviewing the structures of our national law enforcement agencies responsible for investigating serious organised crime.

  Over the past six months we have undertaken detailed consultations with all those involved in fighting organised crime, including the police service and all of the relevant national agencies and regulators. The clear view from almost all we consulted was that the present arrangements were not satisfactory and that there was a strong case for rationalising existing structures.

  My right honourable friend the Home Secretary has therefore today announced the next step in this process. Drawing on the lessons from this consultation we intend to bring together in a single national agency—the Serious Organised Crime Agency— which will report to the Home Secretary, the responsibilities which currently fall to the National Criminal Intelligence Service, the National Crime Squad, the Home Office's responsibilities for organised immigration crime and the investigation and intelligence responsibilities of HM Customs and
  WS 40
  Excise in tackling serious drug trafficking and recovering related criminal assets. The agency will also bring a new focus to bear on dealing with the problem of financial crime.

  The creation of the new agency is a key part of a wider series of changes including new powers available to tackle organised crime. We will set out the detail of all these changes in a Statement to the House when we publish a policy paper within the next few weeks.

  The new agency will have as its core objective reducing the harm caused to the UK and its citizens by organised crime including the trafficking of drugs and people. It will have the capabilities to make a real difference through enhanced intelligence, financial investigation skills, economic analysis and better and more sophisticated use of technology. It will develop a comprehensive strategy for reducing the harm caused by organised crime and will be much more than the sum of its parts, drawing on best practice and skills from all the existing agencies to focus on those criminals and criminal markets causing us the most harm. It will work very closely with the revenue departments which will continue to be responsible for tackling revenue and tax fraud.

  It will build on the determination, professionalism and success of the existing agencies and their staff and will be approaching 5,000 strong.

  The new agency will work closely with police forces, regulators and others throughout the UK. Its focus will be on crime that crosses national and international frontiers. But, where a request is made, or where it is otherwise agreed, it will also have a key role in supporting individual police forces in tackling crime that crosses police force boundaries. It will provide intelligence from criminal activity to the wider law enforcement community, drawing on the intelligence they themselves provide in developing a firm understanding and strategy.

  The agency will have a UK-wide remit. However, in Scotland and Northern Ireland, the Scottish Drug Enforcement Agency and the Police Service of Northern Ireland will continue to exercise the functions they currently undertake in partnership with existing UK agencies.

  Specialist prosecutors answerable to my noble friend the Attorney-General will co-operate closely with officers of the new agency and work alongside them wherever this makes good operational sense. They will be available whenever required to provide comprehensive, practical and specialist advice to help to shape investigations and develop strong and well presented cases for prosecution. The specialist prosecutors will stay with each case from the outset of investigations right through to the point of sentence.

  The arrangements for the agency's governance will be crucial. A Home Office-led task force, including representatives of those who will form part of the new organisation, will consult stakeholders on this and

  WS 41
  report back by the end of this month enabling me to give further details to the House in the Statement to which I have already referred. The agency will need high powered and dynamic leadership to ensure that it becomes a world leader in its field, so we are today appointing an executive search agency to help us recruit a chairman and director general, with a view to having them in place by the early summer.

  Until their appointment, representatives of all the agencies concerned will be driving forward the transition process, under Home Office chairmanship, to enable the agency to get off to a rapid and effective start.

  We shall take the earliest opportunity to seek Parliament's approval for the legislation needed to establish the Serious Organised Crime Agency but will seek as far as possible to anticipate the benefits of these changes through closer joint working and operations, training and secondments so that this transitional phase enhances rather than disrupts this critical work.

  Those who seek to damage our country and undermine our way of life through organised crime will continue to grow in expertise and sophistication. We must more than match them and ensure that the skills and insights we have developed in different areas are shared. These proposals will enable us to respond to these challenges effectively in the years ahead.

  Veterans Initiative: Heroes Return Programme
  The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Bach)
  My honourable friend the Parliamentary Under-Secretary of State for Defence (Mr Ivor Caplin) has made the following Written Ministerial Statement.

  We are announcing the launch today of "Heroes Return". This forms a central element of what has now become the "Veterans Reunited" programme, and will enable all generations to join together to remember and commemorate the 60th anniversary of the remarkable events of 1944 and 1945 that led to the end of the Second World War.

  The New Opportunities Fund in collaboration with the Department for Culture Media and Sport and the Ministry of Defence has made available £10 million of national lottery funding for many thousands of veterans to return to the overseas areas in which they saw active service during the Second World War. These visits will generate a rich supply of living memories for our schools and museums and young people will have the opportunity to learn from veterans experiences.

  In addition to the crucial role of the New Opportunities Fund and the DCMS, the Veterans Agency will provide applicants with advice and support through their freephone help line on 0800 169 2277, and further information is available on the website at www.veteransagency.mod.uk.

  European Union: Economic Reform
  The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Mcintosh of Haringey)
  My right honourable friend the Chancellor of the Exchequer has made the following Written Ministerial Statement in the House of Commons.

  The Government are today publishing a new report on economic reform in the EU.

  The report evaluates the progress made in reforming Europe's economy since the March 2000 Lisbon European Council, noting both the EU's achievements over the past four years and the scale of the challenge ahead if Europe is to compete effectively in the global economy and meet its goals of higher productivity, more and better jobs and greater social cohesion. It notes that, while 6 million jobs have been created in Europe since 1999, a further 21 million are needed to meet the Union's target for 2010. Moreover, productivity in the US remains at least 14 per cent higher than that in the EU.

  The report concludes that further action is needed to improve efficiency and productivity in Europe, with steps to promote increased labour, product and capital market flexibility. It sets out a series of areas for reform ahead of the forthcoming spring European Council, including to improve the regulatory framework in Europe, strengthen the single market, deliver more and better jobs, promote enterprise and innovation, ensure an ambitious outcome to world trade negotiations, strengthen the transatlantic economic relationship, and meet the challenge of sustainable development.

  Copies of the report are available in the Printed Paper Office and the Library of the House.

  Independent Regulators: Government Response to Better Regulation Task Force Report
  Lord Bassam of Brighton
  The Minister for the Cabinet Office (Mr Douglas Alexander) has today published the Government's response to the Better Regulation Task Force's report Independent Regulators, which the task force issued on 15 October 2003. Mr Douglas Alexander would like to take this opportunity to thank them for the work they have undertaken in producing their report, and to welcome the recommendations they have made, all 14 of which have been accepted by the Government.

  In our response, we have emphasised our support for regulators to adopt the five principles of good regulation, and the code of practice on consultation; and to produce regulatory impact assessments for any new policies or initiatives which they originate. We commend the use of the enforcement concordat by relevant regulators. The Government will consider very carefully the scope and scale of existing regulators before establishing a new one, and assess regularly their continuing effectiveness once established. We are

  WS 43
  to carry out a review of the variety and complexity of public bodies sponsored by central government departments, and this will encompass consideration of regulatory bodies.

  The task force has rightly highlighted the point that the subject of the report was "independent" regulators, so the Government's role is to encourage, support and guide the regulators in their tasks, not to enforce rules and procedures. It is also the case that independent regulators are a very disparate band of bodies, so it
  WS 44
  would be impossible to produce a one-size-fits-all set of very detailed responses. We must also be wary of increasing the costs of and burdens on the regulatory community, and those whom they regulate, unless we can be satisfied of the value of the outcomes achieved.

  Copies of the report and the Government's response are available in the Libraries of both Houses, and will be available on the Better Regulation Task Force's website at:-

  http://www.brtf.gov.uk/taskforce/Pastreports.htin.