Written Statement of 22 July 2004

INTERNATIONAL DEVELOPMENT

  Southern Africa (Food Crisis)
  The Secretary of State for International Development (Hilary Benn)
  There continue to be significant humanitarian needs in Southern Africa, but the widespread humanitarian crisis that began in 2001 has eased. The countries with the most acute needs are Lesotho, Swaziland and Zimbabwe. Since 2001, my Department has provided humanitarian assistance totalling over $136 million for the six countries covered by the UN consolidated appeals for Southern Africa—Zimbabwe, Zambia, Malawi, Mozambique, Lesotho and Swaziland.

  Total availability of the cereals harvest in the region, including South Africa, is forecast to be around 22.7 million metric tonnes this year. This is around the same level as the past five year average for the region. Late rains and increased plantings have helped to increase production levels in Mozambique and Zambia in particular, while output in South Africa is slightly down on last year. Zambia has overtaken South Africa as the biggest regional source of grains for WFP programmes in Southern Africa this year. However, production in Malawi, Lesotho and Swaziland has declined compared to last year; and throughout the region, many poor people are unable to secure enough food regardless of the national or regional production level.

  The UN has recently released the latest crop and food supply assessments for Angola, Lesotho, Malawi, Mozambique and Swaziland. The biggest shortfall is again expected to be in Zimbabwe. The Government of Zimbabwe's refusal to allow the UN to complete its assessment in the country makes it difficult to quantify food aid needs, but the Government's forecasts of a bumper harvest are not taken seriously by the main agencies working there. The cereal shortfall after domestic production in Zimbabwe is likely to be in the region of around 600,000 to 1 million metric tonnes. Despite claims to the contrary, the Zimbabwe Government is expected to import cereals to cover this shortfall although it is difficult to say how much of the gap they will be able to cover. Pockets of extreme vulnerability are likely to remain beyond the period of the UN Consolidated Appeal (which ends in December), particularly among socially marginalised groups.

  DFID is discussing humanitarian needs with the UN in order to prepare for periods of greater need over the next 10 months. We will respond to further funding appeals in close co-ordination with the Vulnerability Assessment Committees operating in the region.
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  Zimbabwe

  DFID has spent £67 million in humanitarian assistance to Zimbabwe since September 2001. DFID's support for humanitarian relief will be funded through a protracted relief programme worth £18 million over the next two years. This will work with NGOs to provide support to approximately 1.5 million of the poorest households in the country, particularly those affected by HIV/AIDS. The programme will provide targeted food aid, low-cost agricultural inputs and rehabilitation of water points support to stop people falling into acute distress.

  Zambia

  Although Zambia is expecting a good cereal harvest this year, Zambians remain vulnerable due to risks associated with access to food, HIV/AIDS and adverse economic conditions—factors that are common throughout the region. DFID recently began a £10 million programme supporting CARE International to help some of the most destitute and poorest groups in Zambia manage these risks more effectively and are supporting the Government's efforts to establish a vulnerability monitoring system in the country.

  Mozambique

  In Mozambique, DFID's poverty reduction budget support programme has allowed the Government of Mozambique steadily to improve its disaster management capacity and end the previous pattern of annual emergencies. We continue to support targeted food aid and nutritional supplementation programmes as well as seed and input fairs in Mozambique, a method that gives farmers their choice of appropriate agriculture inputs while supporting the private sector and local economies.

  Malawi

  In Malawi, we are working with the UN to support school feeding programmes to feed over 100,000 pupils in five districts. In addition, through the Malawi Social Action Fund, DFID will provide £4.95 million to vulnerable people through a "cash-for-work" programme from which 100,000 households are expected to benefit.

  Swaziland and Lesotho

  In Swaziland and Lesotho, we continue to support targeted food aid programmes through the World Food Programme and supplemented by support for seed fairs with FAO. We are also supporting nutritional monitoring work in Lesotho. We are spending £2 million in Lesotho to support the Government's food security priorities as part of the Poverty Reduction Strategy process. This will include the establishment of a national food security policy, which will be aimed at sustaining and promoting livelihoods.

  Longer-Term Response

  In response to the International Development Select Committee's report of March 2003, DFID is working with Governments, the UN and the NGO community to improve our understanding and response to the problem of food insecurity in Southern Africa. We have produced a regional hunger and vulnerability strategy which outlines the regional dimensions of food security in the region and forms the basis of a regional programme of support, which is currently being designed.
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  We are also working with the regional UN office in Johannesburg to encourage better joint programming among UN Agencies and NGO partners in the region. And we are supporting the vulnerability assessment committees in Lesotho, Malawi, Mozambique, Swaziland, Zambia and Zimbabwe so that they can better track vulnerability trends and allow countries and the international community to respond more effectively.

  Ghana
  The Secretary of State for International Development (Hilary Benn)
  Ghana successfully reached completion point under the heavily indebted poor countries initiative (HIPC) on 13 July 2004, becoming the 14th country to do so.

  Under the arrangements agreed when Ghana applied for HIPC status, Ghana will have its debt reduced in net present value terms by $2.2 billion. In addition, many bilateral creditors have indicated their intention to provide additional relief beyond the enhanced HIPC initiative (estimated to total about US$500 million in NPV terms). Between 2004 and 2013, Ghana could save approximately US$230 million annually in debt service costs.

  Debt relief, together with bilateral assistance beyond HIPC relief, will lower Ghana's debt-to-export ratio to 84 per cent. and its debt-to-government revenue ratio to 130 per cent. in 2004. It is estimated that Ghana's debt will remain sustainable (by HIPC definitions) for a wide range of scenarios covering the next 20 years.

  Ghana applied for HIPC status in 2001 with the strong encouragement of the UK, and in particular of my right hon. Friend the Member for Birmingham, Ladywood (Clare Short) then Secretary of State for International Development. Since then the Government of Ghana has begun to implement its poverty reduction strategy, maintained sound macro-economic management, and undertaken some important structural reforms as agreed at decision point.

  Completion point is good news for Ghana, and an opportunity to move further and faster with its poverty reduction programmes.

DEFENCE

  Reserve Forces
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  I am publishing today, a consultation document setting out proposals to update the financial assistance arrangements for reservists who are called out for permanent service and their employers.

  The current arrangements are set out in statutory instrument 1997, Number 309. The Government fully recognise that it is important that reservists are financially secure when called out. We are equally aware of the need to avoid placing a reservist's employer at a financial disadvantage during that period. Therefore, as announced in the Defence White Paper of 2003 and which I restated to the House on 13 May, these arrangements are being reviewed in the light of our experiences in military operations.
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  The consultation document will be given a wide circulation, which will include the reserve forces' and cadets' associations, various bodies representing employers, the Trades Union Congress, the British Medical Association, the British Dental Association and other interested parties. The closing date for responses is 15 October 2004.

  Copies of the consultation document will be in the Library of the House and will also be available on the Ministry of Defence website, at: http://www.mod.uk/consultation/reservists.htm

  Armoured Vehicle Training Service
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  I am pleased to announce that the landmark training consortium has been chosen as the intended preferred bidder for the Ministry of Defence's armoured vehicles training (AVTS).

  The AVTS project aims to deliver live and synthetic armoured fighting vehicles training for Britain's armed forces through a private finance initiative (PFI). The service is planned to last for 30 years and covers training in the UK and Germany, as well as refresher training for troops deployed on operations.

  In line with the Ministry of Defence's announcement yesterday, AVTS forms part of the policy to modernise defence outlined in the recent defence White Paper. The service will exploit new technologies and invest in a flexible and modern training service that will help our Armed Forces maintain the battle-winning professionalism they displayed recently in Iraq.

  PFI offers the opportunity for enhanced training capability faster and cheaper than could be achieved through a conventional procurement. The MOD will now engage with landmark training to assess if a satisfactory, affordable, value for money deal is achievable. Final decisions will not take place until the negotiations have been satisfactorily concluded.

HOME DEPARTMENT

  Managed Migration Review
  The Secretary of State for the Home Department (Mr. David Blunkett)
  As part of the top to bottom review of immigration, the Government have already announced a number of measures to address abuses of the managed migration routes. This statement provides details of additional measures that we intend to bring forward. There will be further announcements in due course.

  As part of this package, my right hon. Friend the Secretary of State for Education and Skills recently announced plans to establish a register of genuine education providers, by the end of the year. In the meantime we have continued our programme of visits to suspect colleges. To date we have visited 672: 178 (26 per cent.) were genuine; 195 (29 per cent.) were not; and 299 (45 per cent.) will require further investigation. All applications in respect of institutions found not to be genuine are now being refused.
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  Further detailed work on student applications and routes of potential abuse have raised concerns about the large numbers of overseas nationals switching in-country to the student category, often for lower level courses.

  I have therefore decided to prohibit switching into the student category for anything other than degree level courses. Visa nationals are already prohibited from switching: this will place non-visa nationals in a similar position.

  Genuine students wishing to study on courses below degree level will therefore need to seek entry clearance overseas. Those who intend to study but have not finalised their arrangements may use the prospective student category.

  A related problem has been identified with overseas students who take a succession of short courses at a low level and demonstrate no clear plan of study. I have therefore decided to reduce the overall time that may be spent on such short courses below degree level to a maximum of two years.

  Arrangements are in hand to bring these changes in to effect from September.

  I am also announcing changes that will restrict further the circumstances in which those admitted to the United Kingdom in a temporary category will be allowed to switch into employment routes.

  My hon. Friend the Minister for Citizenship and Immigration announced on 19 May that those admitted under the sectors based scheme (SBS) and seasonal agricultural workers scheme (SAWS) would no longer be allowed to switch into work permit employment. I am now also making further changes to the immigration rules which will mean that only those who are present in the United Kingdom as work permit holders, graduated students, working holidaymakers, postgraduate doctors, dentists and trainee general practitioners may switch into the high skilled migrant programme (HSMP) and innovator categories. Switching from most temporary categories into work permit employment, HSMP and the innovator category will therefore only be allowed in exceptional circumstances. The changes will come into effect on 1 October 2004.

  These measures will help to ensure that the separation of temporary and permanent migration routes, which is necessary to an effective immigration control, is preserved. It is also desirable that switching policy should be clear and transparent.

  These measures will not prevent UK employers from recruiting overseas workers with skills that they need. It will simply mean that those currently in the UK in a temporary category will normally need to return to their country of residence and seek entry clearance to come to the U K for employment.

  The Government is determined to ensure that the benefits of managed migration should be realised, as well as limiting the scope for abuse of the system.

  Sir Gareth Roberts' review— "The Supply of People with Science, Technology, Engineering and Mathematics Skills"— highlighted the fact that the UK was suffering from a severe shortage of physical science, engineering and mathematics students at university and skilled workers in the labour market. He said that the shortage could do serious damage to the UK's future
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  growth. In response, the Government have decided that students at UK universities graduating from specific physical science, engineering and mathematics courses should be permitted to stay in the UK for one year following their graduation to take up employment.

  I am now announcing the detail of how the new science and engineering graduate scheme will work. The new scheme will be open to undergraduates (at 2:2 level and above), Masters and Doctors who have successfully completed a shortage physical science, engineering or mathematics course, as defined by the Secretary of State for Education and Skills. The eligible courses will be reviewed by the Department for Education and Skills on an annual basis. The list of eligible courses for the first year of this scheme is annexed to this statement.

  We want to attract individuals with skills in these shortage areas to the UK. We expect that individuals who do not initially find employment in their chosen field will successfully find work in their sector within the one-year period of the scheme. If an individual can not meet the requirements for work permit employment, or can not meet the requirements to switch into another of our managed migration schemes, they will be required to leave the United Kingdom once their one year on the science and engineering graduate scheme is over.

  We will be making the changes required to the Immigration Rules to implement this scheme in October. It will be open to this year's graduates.

  Further to my statement on 17 June about Ken Sutton's report on the operation of the European Association Agreements in Romania and Bulgaria, work has been in hand in the UK and at posts overseas to implement the recommendations in Mr Button's report about the procedures and guidance which need to be in place to manage applications under the agreements, and the additional safeguards which need to be in place.

  It is now our intention to resume consideration of initial applications, that is for entry clearance and in-country switching (which will be limited under Mr Sutton's recommendations) from 1 September and to resume a service on further leave to remain and indefinite leave to remain later in the year.

  I am also today announcing changes to the current arrangements for Ministers of Religion. The Government is concerned that those who come to the United Kingdom to serve as ministers or religion should understand and respect the community in which they teach and work. I am therefore making changes that take account of consultations which were carried out in 2002 after publication of the White Paper (secure borders, safe haven) and discussions held during June and July this year with faith representatives. Under the changes we will be bringing into force, those seeking entry as a Minister of Religion will be required to demonstrate that they have a basic command of spoken English by providing an International English Language Testing System (IELTS) certificate at the "limited user" level (Level 4). We intend to raise the requirement to level 6 spoken and written English (competent user) after an interim period of two years. Missionaries, Members of Religious Orders (i.e. monks and nuns) and preachers visiting the UK on a religious tour will not be expected to undertake an English language test before entering the UK.
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  I will shortly be laying before Parliament the proposed changes to the immigration rules that will allow the English language requirement to be introduced. I envisage the new requirement will come into force at the end of August.

  For people with existing English skills—for example, those educated in an English speaking nation—discretion will be applied to allow entry where evidence is provided that an individual speaks competent English. These requirements will be set out in the immigration rules for all those seeking to enter the United Kingdom as a Minister of Religion as well as those switching in-country.

  We are also amending the immigration rules formally to permit in-country switching to Minister of Religion status, with certain limitations. These include that the applicant is legally entitled to be in the United Kingdom as a student or through any other managed migration route; that they have been here not less than one year; and that appropriate evidence is provided of their suitability for the post. This provision will not apply to visitors or asylum-seekers. This was also in the White Paper, which specifically proposed allowing qualified people from overseas to switch their status in-country to fill local vacancies as Ministers of Religion.

  During the second half of this year we will be launching a further round of consultations and meetings with faith communities about what further measures might be taken by the Government in collaboration with faith communities to ensure that the pastoral and religious needs of British congregations in a diverse and cohesive society are met. In particular, we will be consulting on whether there would be merit in introducing religious qualification requirements for those seeking admission as a Minister of Religion. Work will be undertaken with United Kingdom faith communities to identify what skills and qualifications a successful minister needs, with a view to developing standards or accredited qualifications that applicants for the Minister of Religion category must meet. We will look to faith communities to tell us what the requirements should be. In addition the Government is proposing to invite views on the proposal that at the point at which a Minister of Religion from abroad applies for an extension of stay, usually after their first year in this country, they should be asked to undergo an assessment of their civic knowledge and the level of their community engagement. We will therefore be consulting faith communities about the elements of such an assessment and arrangements for making training or tuition available.

  Further announcements will be made in due course.

  First Degree Graduates Course List

  Principle Subject Heading

  HESA Code

  # Pre clinical medicine

  A1

  # Pre clinical dentistry

  A2

  # Biology

  C1

  # Botany

  C2

  # Biochemistry

  C7

  # Food Science

  D4

  # Other Agricultural Subjects

  D9

  # Chemistry

  F1

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  # Materials Science

  F2

  # Physics

  F3

  # Geology

  F6

  #Environmental Science and other physical sciences

  F9

  # Statistics

  G4

  # Other Mathematical Sciences

  G9

  # Balanced combinations with Mathematical sciences excluding

  GZ

  # Computer science

  # General Engineering

  HI

  # Civil Engineering

  H2

  # Production Engineering

  H7

  # Chemical Engineering

  H8

  # Balanced Combination with Engineering and Technology

  HZ

  # Minerals Technology

  J1

  # Metallurgy

  J2

  # Polymers and Textiles

  J4

  # Other Materials Technology

  J5

  # Maritime Technology

  J6

  # Biotechnology

  J8

  # Other Technologies

  J9

  # Building

  K2

  # Environmental Technologies

  K3

  # Other Architectural Studies

  K9

  ** Mathematics code G1 is not included in this list or the Post Graduate or PhD list as figure show that the number of graduated from this pure branch of mathematics are now increasing. However other variations of mathematics are declining such as statistics and other mathematical sciences and these principle subjects are therefore included on the course list**

  Post Graduate Course List

  Principal Subject Heading

  HESA Code

  # Botany

  C2

  # Zoology

  C3

  # Genetics

  C4

  # Agricultural Sciences

  D8

  # Other Agricultural Subjects

  D9

  # Physics

  F3

  # Astronomy

  F5

  # Balances Combination with Physical Sciences

  FZ

  # Other Mathematical Sciences

  G9

  # Balanced Combination with mathematical sciences

  GZ

  Excluding Computer Science

  # General Engineering

  HI

  # Electrical Engineering

  H5

  # Production Engineering

  H7

  # Other Engineering

  H9

  # Balanced Combination with Engineering and Technology

  HZ

  # Minerals Technology

  J1

  # Polymers and Textiles

  J4

  # Other Materials Technology

  J5

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  # Maritime Technology

  J6

  # Environmental Technologies

  K3

  PhD Course List

  Principal Subject Heading

  HESA Code

  Pre Clinical medicine

  A1

  Nutrition

  B4

  Ophthalmics

  B5

  Audiology

  B6

  Botany

  C2

  Zoology

  C3

  Biochemistry

  C7

  Agricultural Sciences

  D8

  Chemistry

  F1

  Materials Science

  F2

  Balanced Combination with mathematical sciences

  GZ

  Excluding Computer Science

  # General Engineering

  HI

  # Mechanical Engineering

  H3

  # Aeronautical Engineering

  H4

  # Electrical Engineering

  H5

  # Electronic Engineering

  H6

  # Chemical Engineering

  H8

  # Balanced Combination with Engineering and Technology

  HZ

  # Metallurgy

  J2

  # Maritime Technology

  J6

  # Environmental Technologies

  K3

  Charity Commission
  The Parliamentary Under-Secretary of State for the Home Department (Fiona Mactaggart)
  I am today announcing that the Charity Commission will be publishing their Department report for 2004 on 23 July. Copies of the report will be available in the Library.

  Parole
  The Parliamentary Under-Secretary of State for the Home Department (Paul Goggins)
  The Criminal Justice Act 2003 introduced important changes in relation to the release of certain life sentence prisoners and extended sentence prisoners. In particular, the authority for determining the release of tariff-expired mandatory life sentence prisoners transferred from the Secretary of State to the Parole Board in December 2003. This followed the earlier decision by the European Court of Human Rights in the case of Dennis Stafford that a court-like body should determine the release of such prisoners. As a result of these changes, the Parole Board rules 1997 have been amended, as have certain related directions to the Parole Board made under the Criminal Justice Act 1991 which have also been extended to cover all types of life sentence prisoners.

  Parole Board Rules

  The new Rules will address:
  the arrangements under which Parole Board panels are appointed to consider the cases of tariff expired life sentence prisoners and extended sentence prisoners;
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  the procedural arrangements for panel consideration of such cases both on the papers and at oral hearings;
  the information and reports to be provided by the Secretary of State and the evidence to be supplied by the prisoner, and
  the arrangements for witnesses and observers to attend the hearing.

  The rules will apply for the first time to Parole Board reviews for tariff-expired mandatory life sentence prisoners as well as to all other existing lifers to whom the previous rules applied. What this means in practice is that the new arrangements will provide for all tariff expired lifers to have their cases considered initially "on the papers", and, if not satisfied with the outcome of that paper panel decision, at a further oral hearing on request. The Government are persuaded that these new arrangements will be just as fair to all parties involved as the previous arrangements, and will have the added advantage of enabling the Board to deal with cases more efficiently and effectively.

  The rules also provide for similar arrangements to apply to the review of the continued detention of recalled extended sentence prisoners.

  The other major change to the rules is that they will now empower the Parole Board panels to call witnesses to oral hearings in their own right. Previously, panels have tended to rely on either party to call witnesses. This is in line with a recommendation of the comprehensive review of parole and lifer processes on which I have reported to the House previously.

  Directions

  Amendments have also been made to the Secretary of State's directions to the Parole Board on the release and recall of mandatory life sentence prisoners and their transfer from closed to open conditions. The amended Directions will, for the first time, apply to all lifers, not just mandatory lifers. They have been designed to reinforce the importance of risk assessment and they will set out more clearly, the factors that panels are expected to take into account in reaching decisions on a lifer's risk to the public.

  The Parole Board have been extensively consulted on the content of the rules and directions and the rules have also been discussed with prisoners' legal representatives.

  The new rules and directions come into force on 1 August 2004. Copies of the rules and directions have been placed in the House of Commons Library.

  Immigration and Nationality Protectorate
  The Minister for Citizenship and Immigration (Mr. Desmond Browne)
  I am today placing in the Libraries of both Houses a copy of the annual report by Mary Coussey, the race monitor appointed in respect of the Home Office's Immigration and Nationality Directorate under the terms of the Race Relations (Amendment) Act 2002. We will be studying the report carefully and I will publish my reply in due course.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Single Farm Payment
  The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)
  I am announcing today further measures concerning the implementation
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  of the decoupled single payment in England. These include measures to promote more environment-friendly and sustainable farming, to go alongside the reduction in red tape and boost to farm incomes that CAP reform will deliver.

  The CAP reforms agreed last year were a major advance which will encourage an improvement in the economic and environmental performance of English agriculture. The reform adopts a new deregulatory approach to farm support, by decoupling agricultural subsidy from production and simplifying the application process for farmers. Ten major CAP payment schemes will be replaced by one new single payment—considerably reducing the administrative burden for farmers. And the greater freedom to farm provided by the reform will offer opportunities for the industry to enhance incomes.

  We have consulted widely on the key aspects of today's announcement. I believe the measures I have decided upon represent the best balance of interests, taking account of the all the representations I have received. Further decisions will be announced over the coming months.

  As part of the reform, farmers in England sharing some £1.7 billion of payments under the CAP will have to meet new cross-compliance standards designed to protect the environment, animal health and welfare, public health and plant health. Following public consultation and discussions with the range of stakeholders, I have decided upon a series of practical cross-compliance measures that will set a new baseline standard for environmental performance for agriculture. These are a relatively light requirement, representing a mixture of common-sense farming practice and support for existing legislation, which should help drive an improvement in overall performance and deliver public benefit. They will help contribute to a number of the Government's objectives set out in the strategy for sustainable farming and food by protecting soils, wildlife habitats and the landscape. A description of these measures (which are distinct from those included in agri-environment schemes) may be found on the DEFRA website and my Department will be sending a communication to all farmers shortly.

  The possible cross-compliance measure which has most divided opinion was whether farmers should be required to leave uncultivated two metre field margins alongside hedges and ditches, as an alternative to payment for these measures through the new entry level stewardship (ELS). After careful reflection I have decided that the way forward is to use both cross-compliance and ELS in a complementary way. For cross-compliance purposes farmers will be required to protect hedges and ditches by not cultivating, fertilising and spraying within two metres of the centre line (or a minimum of one metre from the top of the bank in the case of ditches). In addition, farmers will be able to receive payment under ELS for positive management of their hedges, as well as for establishing and managing a range of buffer strip options next to the cross-compliance protection zone around hedges and ditches. Since one of the qualifying conditions for the hedgerow management options in ELS will be that farmers leave a minimum uncultivated strip, those farmers entering hedges into ELS will largely be meeting their cross-compliance requirements in this respect. I am aware
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  there are particular issues about how we accommodate those farmers who have retained small fields and those who want to plant new hedges. We will discuss with the industry and key stakeholders the practical details, so that we can announce the specific arrangements in the early autumn. Finally, I intend to implement this particular cross-compliance measure from the start of the main cropping cycle in July 2005, recognising that farmers have already made plans for the coming season.

  Cross-compliance measures will be enforced in a cost-effective and proportionate way that avoids placing unnecessary burdens on farmers. Full use will be made of existing inspections where possible, with the Rural Payments Agency working in close partnership with the specialist agencies to ensure a fully co-ordinated approach. This will be developed in line with other departmental initiatives such as the whole farm approach, which is designed to streamline farmers' interactions with Government.

  Close partnership working in order to join up public services at the point of delivery to our customers—whether to farm businesses or other customers—is a key element of the reforms I announced yesterday as part of our Rural Strategy 2004. The new Integrated Agency will be a future partner of the Rural Payments Agency, both in these arrangements for delivering cross-compliance, and in providing environmental grants through the agri-environment schemes.

  The cross-compliance measures which have been selected will be complemented by those available through agri-environment schemes in England, which are designed to deliver environmental enhancement and positive management for the public good. A new scheme, environmental stewardship, is being introduced in 2005 and this includes the new entry level stewardship (ELS). The ELS will be open to applications from all farmers, and will provide payments to enable farmers to deliver what society increasingly demands: the sustainable management of our countryside as a whole. This expansion will be funded partly through a deduction (known as "modulation") from the new overall CAP single payment pot. Modulation takes two forms a compulsory element levied at a uniform rate in all member states and the possibility of an additional national rate, at the discretion of the member state. I have decided to take advantage of the option for additional national modulation in England, subject to detailed EU rules being formally adopted early in the autumn. Modulation will be levied at a rate of 5 per cent. in 2005 and 10 per cent. in 2006, when we expect take-up of ELS to be considerably higher. These amounts include both the compulsory EU element and the additional national element. The combined modulation rate to apply in 2005 will therefore be very similar to the modulation rate of 4.5 per cent. previously scheduled to apply in that year. The funds raised through modulation in these years will be matched by funds from the Exchequer, doubling the amount of money returned to the rural economy.

  No decisions have yet been taken as to the rates of modulation and of Exchequer match funding that will apply in England from 2007. These will depend on a number of factors, including future EU financing

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  arrangements for rural development measures and take-up of the ELS. But, based on current estimates, the overall rate of modulation may rise further in future years.

  On 22 April I made a written statement concerning the determination of the regional boundaries in England for the purposes of the single payment. I can now confirm that farmers will be able to make representations against the location of the Moorland Line on their holdings. The arrangements will be operated by officials in the Rural Payments Agency (RPA) and Rural Development Service (RDS), and farmers unhappy with the results of their representations will be able to make an appeal through a formal appeals procedure. The process will begin during August, when application forms and guidance notes will be available in an information pack from the RPA. Farmers will be able to ask for a pack by ringing an RPA helpline. Under the flat rate payment system we have adopted in England, set aside rates must be calculated using a method set out in European legislation concerning the single payment. I can now announce that the percentage of land to be set aside in the coming year in each of the English regions is as follows:
  8.0 per cent. outside the upland severely disadvantaged area (SDA)
  1.3 per cent. within the non moorland SDA

  There will be no requirement to set aside land in the moorland SDA. These rates are lower than have applied in the past, but a greater area of land will attract a set aside obligation from 2005, thus approximately maintaining the area of land under set aside overall.

  Information concerning the management conditions that will apply on set aside land will be made available shortly and a communication will be sent to all farmers.

  The National Reserve is the mechanism by which certain defined categories of applicant may apply for subsidy entitlements for which they would not qualify through the normal process. A range of decisions relating to the reserve are required to be taken at UK level and some others have UK wide implications. As the Northern Ireland consultation process has only just finished and full consideration of the results has not been completed, it is not possible to make an announcement at this stage. We will be discussing the issues further throughout the summer and hope to be in a position to make an announcement shortly after the recess.

  Another issue that will be given further attention over the coming weeks is how to apply the new scheme in respect of common land. My officials will shortly discuss a potential solution with stakeholders.

  Further decisions concerning implementation of CAP reform will be announced in due course. The RPA is currently in the process of contacting those farmers with historic subsidy records to inform them of the crop area and livestock numbers that will be used to calculate the historic entitlement and resolve any queries. If a farmer is unhappy with the outcome of a representation against a decision concerning this data, he or she will be able to make an appeal through a formal appeals procedure. Also during the summer the RPA will provide an opportunity for farmers who have not yet registered their land on the rural land register to do so. This exercise is intended to benefit farmers who consider that
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  they may be entitled to the flat-rate element of the single payment, and/or would like to apply for environmental stewardship. In Spring 2005 the RPA will despatch application forms to farmers for the single payment. The deadline for completed application forms to be returned to the RPA will be 15th May 2005. In the summer of 2005, when the aggregate area of land applied upon is known, we will advise applicants of entitlement amounts. The window for making single payments to farmers runs from 1 December 2005 to 30 June 2006.

  Fisheries
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Ben Bradshaw)
  We have been concerned for a number of years about levels of bycatch of common dolphins in the bass pelagic pair trawl fishery prosecuted off the south and south west coasts of England. I am also aware of the keen public interest in this issue which has been the subject of an EFRA Select Committee Report. We have been committed to making progress on reducing this bycatch and have carried out considerable research to identify the fisheries concerned and to seek mitigating measures which would allow fisheries to continue while at the same time protecting dolphins.

  We have reluctantly concluded, in the light of findings from our most recent research, that current levels of bycatch in this fishery may constitute a threat to the common dolphin population and that Community action to address this problem is needed urgently. Our research this season observed 169 dolphin casualties. Across the UK fleet as a whole, and including the larger French element of the fishery, this constitutes a serious problem. It has also become clear from our research that mitigation methods are not currently sufficiently developed to reduce bycatch to more acceptable levels. Until such a time as a proven means of reducing bycatch has been identified, we believe that other more radical options to reduce bycatch in this fishery are now needed.

  There is a clear need for action on a community level. This is because the fishery is prosecuted by a significantly larger number of vessels from other member states. This is why the UK has for many years, in the light of our research findings, pressed for meaningful action at an EU level. I was pleased that an EU regulation to reduce the incidental bycatch of small cetaceans was adopted recently, but this will not provide an early solution to the problem we now face in the light of research we now have available.

  I therefore intend to request the European Commission to take action under Article 7 of Council Regulation 2371/2002. This provides for the introduction of emergency measures which could run for six months and be renewed for a further 6 months, allowing 12 months for more permanent protection to be put in place. We will be asking the European Commission to take action to close the fishery for the forthcoming season whilst permanent measures are considered. I look forward to the Commission's response to our case for emergency action. If it is not accepted then I will consider other options including restricting the number of vessels allowed into the fishery and seeking a ban on pair trawling within 12 miles of the UK.

  Revised Large Combustion Plants Directive
  The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett)
  The Government have listened to and take seriously the concerns that have been expressed by the various industrial sectors affected about the possible impact of the LCPD on jobs and security of energy supply. In view of this, Defra jointly with DTI have been carrying out extensive further analysis of all the possibilities that the Directive might offer in order to seek an optimal solution within the framework of sustainable development, in a way that will work for industry without compromising the environmental goals set by the directive.

  Our further analysis has shown that a modified approach, drawing on work already done on the National Emissions Reduction Plan (NERP) and Emissions Limit Value (ELV) approaches would deliver the desired environmental outcomes in a way that is more cost-effective for business. The Government intend to explore this approach with the European Commission. We will also be holding further discussions with the Commission about the legal definition of a combustion plant which is unclear in the directive.

  The LCPD does not come into force until 2008 for pre-1987 plants. Nevertheless, we are very conscious of the need for certainty about the application of EU environmental directives so that industry can plan future investments. Final decisions on the UK implementation approach will be made as soon as possible. We will keep stakeholders informed of developments in the meantime.

HEALTH

  Reducing Bureaucracy
  The Secretary of State for Health (Dr. John Reid)
  On 20 May 2004,Official Report, column 61WS, I announced the completion of the initial stage of the review of my Department's arm's length bodies (ALBs). I made it clear then that there is considerable scope to improve efficiency and reduce bureaucracy in the ALB sector and I laid down the following parameters for the review:
  a 50 per cent. reduction in the number of ALBs;
  a saving in expenditure by ALBs of £0.5 billion by 2007–08; and
  a reduction in posts of 25 per cent. in the same period.

  The next stage of the review has now been completed and decisions have been taken on a reconfiguration of the ALB sector and its functions. Some of these functions provide reassurance to patients about standards in an increasingly devolved health and social care system. Others provide functions that can literally be life saving. The reconfiguration will enhance these essential functions while eliminating overlaps and devolving functions where possible. It will not put the safety and welfare of patients in jeopardy. The changes are summarised below and explained in a report, "Reconfiguring the Department of Health's Arm's Length Bodies", copies of which have been placed in the Library.
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  I want now to move to detailed discussions with all interested parties about how to implement these changes. Some changes will require primary or secondary legislation and the parliamentary scrutiny that goes with that. Some statutory consultation will be required on specific changes.

  Last week, my right hon. Friend the Chancellor of the Exchequer announced the Government's overall plans for releasing resources to the front-line. The ALB review contributes to those plans. It will also lift the burden that the central overhead can place on frontline staff. The way in which we achieve the ALB reductions will be linked to the analysis undertaken for the Gershon efficiency review. The changes I will be making reflect the Prime Minister's wider civil service reform agenda and will also deliver the expectations of the Lyons review on public sector relocation.

  The ALB review covered the work of stand-alone national organisations sponsored by the Department to undertake executive functions. Some 38 of these existed in the baseline year of 2003–04, although the review also looked at four prospective ALBs. A list of the bodies can he found in the report. The decisions I have taken so far will reduce the number of ALBs by almost half to 20, in the following four main categories.

  Regulation

  ALBs in this category regulate, inspect and hold specific parts of the system to account. They often have their own primary powers and extra independence from direction by the Secretary of State.

  The Healthcare Commission (whose statutory name is the Commission for Healthcare Audit and Inspection), the Independent Regulator of National Health Service Foundation Trusts and the Commission for Social Care Inspection, will continue to regulate providers and their services. The Healthcare Commission will take on the main role of the Mental Health Act Commission, which will be abolished.

  A new Regulatory Authority for Fertility and Tissue will be created to encompass the work of the Human Fertilisation and Embryology Authority and The Human Tissue Authority.

  The Council for the Regulation of Health Care Professionals will continue to oversee the statutory health professional self-regulatory bodies and the General Social Care Council will continue to regulate social care workers. The Postgraduate Medical Education and Training Board will take on the role of the Dental Vocational Training Authority, which will be abolished.

  The Medicines and Healthcare Products Regulatory Agency will continue to regulate medicines and healthcare products.

  Standards

  ALBs in this category establish national standards and best practice.

  The National Institute for Clinical Excellence (NICE) will take on the work of the Health Development Agency (HDA) in order to link standards work on both the prevention and treatment of ill health. The HDA will be abolished.
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  Public welfare

  ALBs in this category are focused primarily on the safety, protection, well-being and involvement of patients and public.

  The National Clinical Assessment Authority (NCAA) will be brought into the National Patient Safety Agency (NPSA) which will also support high quality, independent ethical review of all research that could affect patients. The NPSA will take on the lead national perspective on hospital food, cleanliness and safe hospital design. NPSA will also take over responsibility for the national confidential enquiries from NICE.

  The Health Protection Agency (HPA) has taken on functions from the Public Health Laboratory Service and will take on the role of the National Radiological Protection Board under the Health Protection Agency Act 2004. The PHLS and the NRPB are to be abolished. The National Biological Standards Board will also be abolished and its functions taken on by others, primarily the HPA.

  The regional functions and staff of the National Treatment Agency for Substance Misuse will be transferred to existing mainstream structures as soon as possible. A further announcement on this will be made shortly. Centrally the NTA will continue in existence until we are confident that a detailed programme of mainstreaming drug treatment within the NHS is successfully in place. A review of progress will take place in 2006 to agree any further action needed to ensure drug treatment is fully mainstreamed into the NHS including agreeing the future of the NTA's national functions.

  The Commission for Patient and Public Involvement in Health will be abolished. Patients' forums will remain the cornerstone of the arrangements we have put in place to create opportunities for patients and the public to influence health services. Stronger, more efficient arrangements to provide administrative support and advice to forums will be put in place after consultation. The NHS Appointments Commission will appoint forum members. A clearer quality framework for forum activities in monitoring and reviewing health services will be established and communicated to forums as quickly as possible.

  Central services to the NHS

  These ALBs provide services involving economies of scale and focused expertise.

  A new Blood and Transplant Authority will be created to encompass the services provided by the National Blood Authority and UK Transplant, which will be abolished.

  The NHS Litigation Authority (NHSLA) will be reconstituted to oversee the proposed NHS redress scheme and manage the financial compensation element at national level. Further details on how the scheme will operate will be published later this year, and implementation will require primary legislation. The NHSLA will also take on the functions of the Family Health Services Appeal Authority (Special Health Authority) which will be abolished.
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  The NHS Appointments Commission will be reconstituted as an executive non-departmental public body with wider powers to make public appointments. It will also make appointments to patients' forums and to research ethics committees.

  The NHSU is subject to a more detailed study, within the overall ALB Review process, which will be completed shortly. The NHS Modernisation Agency will have most of its budget and staff devolved to the NHS, with a smaller core remaining within the Department for the present.

  A new Health and Social Care Information Centre will be created to reduce burdens on the front-line by coordinating information requirements across a wide range of bodies. The new centre will retain some of the information-related functions of the current NHS Information Authority and will take on the statistics and information management functions of the Department. The NHSIA will be abolished. To build on the progress and momentum achieved to date, and reflect its sheer scale, the National Programme for Information Technology will become a time-limited executive agency for three to five years and will incorporate the IT functions of the NHSIA.

  A new NHS Business Services Authority will be created to replace the NHS Pensions Agency, the Dental Practice Board, the Prescription Pricing Authority and the NHS Counter Fraud and Security Management Authority, all of which will be abolished.

  The NHS Purchasing and Supply Agency will be reformed. The role of the NHS Logistics Authority will be market-tested. It is anticipated that the function will be contracted out and that the NHS Logistics Authority will be abolished.

  A Dental Special Health Authority will no longer be created.

  NHS Direct and NHS Professionals will retain their ALB status for two to three years. In the meantime, we will work with both organisations to consider how they may prepare to transfer to independent status as bodies established on foundation principles to operate in the public interest.

  A small core estates team will be brought into the Department and NHS Estates abolished.

  Releasing resources to the frontline

  In 2003–04, ALBs spent a total of £4.8 billion, including operating costs of £1.8 billion, and employed around 25,000 staff.

  The principles outlined in Sir Peter Gershon's efficiency review will be applied to the ALB sector to generate more than £200 million in cash-releasing savings for the front-line, for example by sharing back office services and by carrying out activities more efficiently. No ALB will be exempt from the need to improve efficiency. In addition, £150 to £200 million will be released to frontline control by devolving functions from ALBs. The scope for achieving full cost recovery for regulation will be investigated and taken forward.

  The Department's commercial directorate is scrutinising the business processes and procurement activities of many of the central services ALBs to establish the full scope of the efficiencies to be made, especially in relation to the money (about £3 billion) that is spent by ALBs on behalf of frontline

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  organisations on NHS supplies, temporary staff and litigation services. The commercial directorate's work on the NHS supply chain is already well advanced, suggesting savings of approximately £150 to 200 million in the period to the end of 2007–08.

  We are confident that expenditure on ALBs can be reduced by at least £0.5 billion by 2007–08. Savings of this magnitude will be associated with a reduction in the number of posts in the ALB sector of about 25 per cent.

  The ALB Review will now move to implementation. Over the next three to four months my officials will work closely with the devolved Administrations, ALBs, staff interests and other stakeholders to draw up implementation plans and to resolve outstanding issues on allocation of functions. These plans will include decision points on new ALB functions and processes, staffing levels, budgets, location and time scales for transfer. A small team in the Department will oversee this process. These arrangements will ensure delivery of the saving of £0.5 billion by 2007–08 and the reduction of posts within ALBs.

  Blood Donations
  The Secretary of State for Health (Dr. John Reid)
  My statement on 17 December 2003 informed the House of the first case of possible transmission of vCJD via blood transfusion and the actions taken as a result of this case to protect future blood supplies. I promised then to provide updates on any major changes.

  My statement of 16 March 2004 indicated that the committee on the microbiological safety of blood and tissue for transplantation (MSBT) had met at my request to consider whether further measures were needed. The recommendations were to exclude from donating blood anyone who had previously received transfusions of whole blood components since January 1980. These measures were introduced with effect from 5 April 2004.

  MSBT met again on 29 June to review experience of these measures. The committee recommended tightening the exclusion criteria for two groups who have similarly received transfusions of whole blood components since January 1980:
  previously transfused apheresis donors; and,
  donors who were unsure if they had previously had a blood transfusion

  Apheresis donors are a small pool of committed donors who make frequent attendances to donate blood, where machine processing removes only certain blood components and the rest is returned to the donor.

  When actions were taken in April 2004 to exclude certain donors, neither of these groups were excluded until any potential impact on the blood supply became clearer.

  In the light of experience since the exclusions came into effect, MSBT has now advised that these groups can be excluded without adverse impact on the blood supply. These new exclusions will take effect from 2 August.

  In a separate development, a second case of possible vCJD prion transmission via blood transfusion has now been confirmed. A patient in the UK received a transfusion of blood in 1999 from a donor who subsequently developed vCJD. Though the patient died
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  of causes unrelated to vCJD, abnormal prion protein has been found in spleen tissue. This patient had a genetic type that differs from that so far found in patients who have developed vCJD.

  I understand that a detailed account of the case will be appearing soon in the medical journal The Lancet. This new finding was referred to the spongiform encephalopathy advisory committee (SEAC) and MSBT for expert advice. SEAC agreed that this second patient with apparent vCJD infection added to the evidence that the vCJD agent can be transmitted by blood. MSBT concurred with this view, and has advised that no additional public health measures are required to protect the blood supply. This confirms the precautionary approach set out in my statement of 17 December.

  Counter Fraud and Security Management Service Accounts 2003–04
  The Minister of State, Department of Health (Mr. John Hutton)
  For the Counter Fraud and Security Management Service, their annual accounts and any accompanying Comptroller and Auditor General report have today been laid before the House of Commons pursuant to section 98(1 C) of the National Health Service Act 1977. Copies have been placed in the Library.

  Primary Care Dental Workforce Review
  The Minister of State, Department of Health (Ms Rosie Winterton)
  The Secretary of State's written ministerial statement on 16 July set out the Government's plans for rebuilding national health service dentistry, ensuring better access to NHS dental care and improving oral health in England. The plans included a significant increase in funding and a substantial programme of action to increase dental workforce capacity. These improvements will be made against the background of the move to local commissioning in October 2005.

  The views of a wide range of organisations were helpful to us in drawing up our proposals. For example, the British Dental Association and representatives from the NHS and higher education were among those who contributed to the report of the primary care dental workforce review that was completed in 2002. Although time has moved on, the report is important contextual information about the perceived needs as seen in 2002. The report assisted our thinking as we developed the comprehensive plans announced last week. We are therefore publishing the report today. It is available on the Department's website at www.dh.gov.uk/ publications. Copies of the report have been placed in the Library.

  David Bennett Inquiry
  The Minister of State, Department of Health (Ms Rosie Winterton)
  This statement follows publication of the independent inquiry into the death of David (Rocky) Bennett, and my written statement on 12 February,Official Report, column 77WS, which set out the action being taken to deliver race equality in mental health services, and respond to the recommendations of the inquiry.
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  I wish to inform the House that, further to the reply given to the hon. Member for Gloucester (Mr Dhanda) by my right hon. Friend the Secretary of State for Health on 8 June at column 138, our response to the inquiry will not be available in July, but will be provided later this year.

  I want to reassure the House that this delay is because we want to ensure that our response to the inquiry report recommendations can be set alongside our wider programme of action to improve mental health care for black and minority ethnic communities. This will be published in the autumn, following our consultation on the framework in the report "Delivering Race Equality". We need more time to consider the significant issues raised during our consultation on this document. We also want to ensure that we properly address the recommendations of the inquiry report.

  In the meantime we must ensure that NHS staff have the skills they need to provide services, without discrimination, for people from black and minority ethnic communities. I am pleased to inform the House that the NHSU will be giving priority to develop and deliver this training for NHS staff, starting with staff in mental health settings.

  Further information about progress on the national work we have started and to which I referred in my statement of 12 February is now available. This includes information about the programme of work led by the National Institute for Mental Health to support the development of effective services for people with mental health problems from black and ethnic minority communities; and guidance on best practice to support the safe and therapeutic management of aggression and violence in mental health inpatient settings.

  I would like to draw particular attention to the publication yesterday of our Health and Social Care Standards and Planning Framework. It sets out the local action needed to commission services for the public to take forward the NHS Improvement Plan through effective partnership working. It sets out the national framework for PCTs and their partner organisations to take account of different needs and inequalities in their local populations. It commits us to providing national data year on year on the experience of service users from black and minority ethnic communities. It sets out how PCTs should support access to assessment, treatment and care for all those at risk, paying particular attention to the needs of those from black and minority ethnic communities and other groups that may be hard to reach.

  I would also like to take this opportunity to reiterate my view that there is no place for racism or discrimination in the NHS. Discrimination, both direct and indirect does exist. It is unacceptable; it contradicts the basic value of equity that is the cornerstone of the health service. We are committed to rooting out racism, tackling the inequalities that exist, and ensuring that the experience of people from black and minority ethnic communities is improved.

  1 Details of the NIMH(E) programme, including key publications, can be found at:http://www.nimhe.org.uk/ priori ties/black. asp. NIMHE's guidance "Developing Positive Practice to Support the Safe and Therapeutic Management of Aggression and Violence in Mental Health Inpatient Settings: Mental Health Policy Implementation Guide" has been developed to support mental health service
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  providers and enable them to review their current policies and procedures relating to education, training and practice in the safe and therapeutic management of aggression and violence. It can be found at http://www.nimhe.org.uk/whatshapp/item display_publications.asp?id=441

PRIME MINISTER

  Interception of Communications Commissioner and the Intelligence Services Commissioner (Annual Reports)
  The Prime Minister (Mr. Tony Blair)
  I have today laid before both Houses the annual reports for 2003 of the Interception of Communications Commissioner, the right hon. Sir Swinton Thomas and the Intelligence Services Commissioner, the right hon. Lord Justice Simon Brown. Some sensitive information has been excluded from the reports of the Interception of Communications Commissioner and the Intelligence Services Commissioner in accordance with Section 58(7) and 60(5) of the Regulation of Investigatory Powers Act.

  I am grateful to the Commissioners for their reports and the work that has gone into preparing them.

FOREIGN AND COMMONWEALTH AFFAIRS

  Berezovsky and Zakayev
  The Secretary of State for Foreign and Commonwealth Affairs (Mr. Jack Straw)
  Russian citizens Boris Abramovich Berezovsky and Akhmed Iliasovich Zakayev were granted asylum in the UK last year, as is public knowledge.

  The grant of asylum to these two persons was made after due assessment by the relevant authorities of their cases and of the UK's obligations under the 1951 UN Convention on refugees and domestic law. They did not enter the UK at the invitation of Her Majesty's Government. A grant of asylum does not imply support from the UK Government for an individual's views, activities or statements.

  We take very seriously the requirement for any person granted asylum in the UK to comply with the conditions of the UN convention under which refugees are recognised, and with the provisions of UK law. Recipients of asylum receive cautions not to take part in criminal activities, or activities such as support for or encouragement of terrorist organisations, or activities endangering national security or public order. Where individuals granted asylum breach these conditions we would not hesitate to take action against them and have strengthened the law to enable us to do so more effectively.

  Iraq: Export Licence Applications
  The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Bill Rammell)
  Following consultation with the Foreign and Commonwealth Office and the Ministry of Defence, the Department of Trade and Industry recently approved a further licence to export military list goods to Iraq. The arms embargo against Iraq remains in place under United Nations Security Council resolutions 1483 (22 May 2003) and 1546 (8 June 2004). UNSCR 1483 (2003)
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  includes an exception for "arms and related materiel required by the (Coalition Provisional) Authority to serve the purposes of this and other related resolutions".

  Accordingly, prior to the hand over of power on 28 June and the Coalition Provisional Authority ceasing to exist, Her Majesty's Government considered it appropriate to grant exemptions for the export of military listed goods for use by Iraqi police forces, Ministry of Justice personnel, Ministry of Oil security personnel and Iraqi security forces. The licence is consistent with the consolidated EU and national arms export licensing criteria. Future applications will continue to be assessed on a case-by-case basis against the UN embargo and consolidated criteria, taking into account the circumstances prevailing at the time.

  Her Majesty's Government also considers it appropriate to grant a licence for the export of assault rifles and semi-automatic pistols for use by a private security company, contracted to provide support for personnel working under contract with the Iraqi Board of Supreme Audit. The coalition provisional authority (CPA) certified the requirement for these weapons prior to the CPA ceasing to exist on 28 June. The licence is consistent with the consolidated EU and national arms export licensing criteria. Future applications will continue to be assessed on a case-by-case basis against the UN embargo and consolidated criteria, taking into account the circumstances prevailing at the time.

  British Council Trustees
  The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Chris Mullin)
  Copies on the British Council Trustees' report and accounts for the financial year ended 31 March 2004 have been placed in the Library of the House. During the period the council received £165.5 million grant in aid from the Foreign and Commonwealth Office.

  Export Licensing
  The Secretary of State for Foreign and Commonwealth Affairs (Mr. Jack Straw)
  Enhanced statistical information on strategic export licensing will, from July 2004, be released on a quarterly basis, instead of once a year through the annual report on strategic export controls, as at present. The first quarterly report on strategic export controls will be published on the Department of Trade and Industry and Foreign and Commonwealth Office websites:www.dti.gov.uk and www.fco.gov.uk on 28 July. This report will contain information on export licensing decisions taken from January to March 2004.

  From now on, statistical data will be published on the FCO and DTI websites three months after the last decision in any given quarter. Until now, decisions taken in one calendar year have been reported in the annual report on strategic export controls in the middle of the following year. Information on the earliest licensing decisions reported in the annual report was not therefore made available until some 18 months later.

  From 2004, the annual report, which the Government have a statutory obligation to produce, will summarise information already provided in quarterly reports, as well as describing export control policy developments. It will be produced in hard and electronic copy. The hard copy will include a CD-ROM containing all of the
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  licensing data published in the quarterly reports for that year. The Government intend to publish the next quarterly report, relating to decisions taken between April and June 2004, in October.

  The introduction of quarterly reports reflects the Government's commitment to further improve the openness of its strategic export licensing system, which is already acknowledged to be amongst the most transparent in the world.

  The Government's most recent strategic export controls annual report was published on 7 June.

CULTURE MEDIA AND SPORT

  Independent Review of S4C
  The Secretary of State for Culture, Media and Sport (Tessa Jowell)
  On 3 March this year, I announced the appointment of Roger Laughton, Head of Bournemouth University Media School, assisted by Meurig Royles as Welsh language assessor, to carry out an independent review of S4C.

  I am today publishing Mr Laughton's report of his review and copies have been deposited in the Libraries of both Houses. I welcome this very thorough analysis of S4C's current position and the challenges facing the authority in the digital age. The report's conclusions and recommendations raise a number of issues relating to the Government's Digital Action Plan, BBC Charter review and Ofcom's review of public service broadcasting, which will need to be addressed in the context of those initiatives. My Department will liaise with the authority and with other interested organisations to consider Mr Laughton's recommendations in detail and I will notify the House of the resulting conclusions in due course.

  Digital Television
  The Secretary of State for Culture, Media and Sport (Tessa Jowell)
  In my statement of 19 May I said that I would report further stages in establishing the plan for switchover. I am pleased to say that much progress has been made in the discussions between the Government, Ofcom, and the public service broadcasters.

  While the broadcasters have not reached a full consensus on the optimum timetable, some—including the BBC—have suggested that 2012 may be the most appropriate date for the completion of switchover. This could mean beginning the switching sequence as early as 2007. This would be subject to agreement on a detailed plan, including resolution of the remaining issues raised in the discussions, Ofcom plans to include reference to this timetable in the draft digital licences for Channels 3, 4, 5 and Teletext which they expect to publish for consultation later this summer.

  We continue to believe that an ordered process leading to the earliest practicable switchover remains desirable given the advantages to consumers, the broadcasting industry and future growth of innovative new services. We believe that switchover should be broadcaster-led but that the final decision on timetable should balance these benefits against the need to ensure that the interests of the most vulnerable consumers are protected. I have therefore asked Ofcom's independent

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  consumer panel to consider what measures might be necessary to ensure this protection and to report to me later this year with their advice. We will also take advice from leading charities. The Government's final endorsement of a timetable will be subject to being satisfied that adequate measures are in place to meet this objective.

  The BBC, in their 29 June publication "Building Public Value", proposed that 2012 should be the target date for switchover. The BBC made clear its willingness to be a "leader and coordinator across the industry" and to "take a special responsibility for bringing the final cohorts into the digital television universe". I have asked the BBC how they propose to take this forward.

  The Government remains committed to ensuring that switchover is planned and implemented in a way which is platform and broadcaster neutral. Consumers must have clear, unbiased information about what is available on each platform and from each provider so that they can make an informed choice. In particular, people who buy television equipment now should know that switchover will take place during the expected lifetime of television sets bought today. We are therefore engaged with retailers and manufacturers—who also need to plan ahead—to see that good clear information is given to consumers currently planning to buy a television or an item of recording equipment. We expect this information to spread through retail outlets from September, identified by the switchover logo.

  As an early step towards switchover, we are proceeding with a technical trial in two villages—Ferryside and Llansteffan—in South Wales. The residents have responded overwhelmingly in favour of taking part in this trial. If, as we expect, this switchover trial is successful, this community will be the first in the UK to go fully digital next spring.

  We expect further progress on these matters in the coming months and I will report to the House on material developments as they occur.

CONSTITUTIONAL AFFAIRS

  Civil Legal Aid
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. David Lammy)
  With the agreement of the Secretary of State for Constitutional Affairs, the Legal Services Commission (LSC) has today published a consultation paper entitled "A New Focus for Civil Legal Aid—Encouraging Early Resolution; Discouraging Unnecessary Litigation".

  The main theme of the paper is to re-focus the civil legal aid scheme from contested litigation and to encourage early resolution of disputes. With a limited budget, we need to ensure that legal aid funding is targeted on the most needy cases and in the priority areas. The proposed changes are also required to update the LSC's funding code in the light of new initiatives—for example, changes in handling clinical negligence cases and the new Independent Police Complaints Commission. The changes to family legal aid complement the proposals announced in our Green Paper entitled "Parental Separation: Childrens' Needs and Parents' Responsibilities".

  The main proposals are as follows:
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  to restructure the levels of service for private law family cases to encourage the early and amicable resolution of family disputes wherever possible. A new level of service called family help will replace the existing three services, and will build upon the work already done through the FAInS (Family Advice and Information Service). This proposal will be piloted through FAInS providers before full implementation;
  to introduce wider powers to refuse funding for divorce (ancillary relief) cases on the grounds that private funding mechanisms may be available, for example, using the value of the assets in dispute;
  to introduce stricter controls over multiple and repeat applications in private law family cases and to limit funding to one certificate per client at any time;
  to remove from scope low priority categories of case, such as legal help for drafting divorce and judicial separation petitions and changes of name;
  to revise the financial eligibility limits to achieve uniform income limits across all levels of service. The upper limit for qualifying for legal representation in court would be reduced, to the (lower) level for legal help, as adjusted for inflation. However, there should be appropriate safeguards and exemptions in place to ensure the most vulnerable applicants are protected;
  to remove the current rule which disregards £100k of equity in an applicant's home in assessing financial eligibility for legal aid. Again, there will be exemptions for the most vulnerable clients;
  in clinical negligence cases and complaints against the police, a requirement that redress is initially pursued through the appropriate complaints procedure before funding for litigation can be considered.

  Copies of the consultation paper have been placed in the Library of both Houses. It is available on the LSC's website: www.legalservices.gov.uk

  Court Service
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. Christopher Leslie)
  The Court Service annual report and accounts for 2003–04 has been laid before Parliament today. This document gives full details of the agency's performance and expenditure for that year. Copies of the report have been placed in the Libraries of both Houses.

  The Magistrates' Courts business returns annual report 2003–04 has been laid before Parliament today. Copies of the report have been placed in the Libraries of both Houses.

  International Human Rights Instruments
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. David Lammy)
  My right hon and noble Friend the Secretary of State for Constitutional Affairs has made the following written ministerial statement."The Interdepartmental review of international human rights instruments announced on 7 March 2002 by my right hon. and noble Friend the Lord Irvine of Lairg has been concluded.
  In the course of the review, the Government has ratified the optional protocol to the United Nations Convention against torture; has signed and ratified Protocol 13 to the European Convention on Human Rights; ratified the Optional Protocol to the Convention on the Rights of the Child, relating to Children in Armed Conflict; and extended the European Convention on Human Rights to the Cyprus sovereign base area. We have decided to accept the Optional Protocol to the Convention on the Elimination of all forms of discrimination against women, which will help us to assess the effects of individual petition to the UN generally. By accepting the Protocol we are also confirming the United Kingdom's commitment to women and equality issues, spearheaded by the Minister for Women, Patricia Hewitt. We will also sign Protocol 7 to the European Convention on Human Rights; ratify chapters A and B of the Convention on Participation of Foreigners in Public Life; withdraw the general reservation relating to immigration entered under the Convention on the Elimination of all forms of discrimination Against women; and modify the reservation relating to the Throne and the armed forces entered under the Convention on the Elimination of all forms of discrimination against women. Finally we will dispense with a group of reservations now obsolete".

DEPUTY PRIME MINISTER

  Planning
  The Minister for Housing and Planning (Keith Hill)
  The Office of the Deputy Prime Minister expects to publish in August new planning policy statements on both sustainable development in rural areas and renewable energy in England. These will be the first in a new series of planning policy statements that are being introduced as part of the Government's programme of reform to the planning system. The new planning policy statement 7 (PPS7) will replace existing planning policy guidance note 7 (PPG7), "The Countryside—Environmental Quality and Economic and Social Development", published in February 1997. The new planning policy statement 22 (PPS22) will replace existing planning policy guidance note 22 (PPG22): "Renewable Energy" published in February 1993.

  A draft of PPS7 was issued for public consultation in September 2003. The key policy aims of PPS7 are to plan for and facilitate good quality, sustainable development to support thriving rural communities and businesses, while protecting the beauty and character of the countryside.

  A draft of PPS22 was issued for consultation in November 2003. The final document will be an important step towards facilitating the delivery of more renewable energy developments and thereby meeting this Government's commitments in respect of global warming and climate change.

  Local planning authorities will need to have regard to the policies in PPS7 and PPS22 in preparing their local development documents, as should regional planning
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  bodies in the preparation of regional spatial strategies. The policies may also be material to decisions on individual planning applications.

  Copies of both PPS7 and PPS22 will be made available in the Libraries of both Houses following publication. They will also be made available on the website of the Office of the Deputy Prime Minister. Copies of the responses to the consultation exercises will be made available for inspection through the Office of the Deputy Prime Minister's library and lists of those responses will also be placed in the Libraries of both Houses.

  Planning Policy Statements 11 and 12
  The Minister for Housing and Planning (Keith Hill)
  The Office of the Deputy Prime Minister intends to publish in August Planning Policy Statements detailing the process by which Parts 1 and 2 of the Planning and Compulsory Purchase Act (2004) are to be implemented. Planning Policy Statement 11 (PPS11) sets out the implementation process of Part 1—Regional Functions and replaces Planning Policy Guidance 11—Regional Planning, published in October 2000. Planning Policy Statement 12 (PPS12) sets out the implementation process of Part 2—Local Development and replaces Planning Policy Guidance 12—Development Plans published in December 1999. These Planning Policy Statements are integral to the Governments programme of reforming the planning system.

  A draft of PPS 11 was issued for public consultation in October 2003. PPS11 provides Government guidance on the new arrangements for regional planning. The new procedural arrangements will better deliver policy at the regional level by giving more weight to what is currently Regional Planning Guidance by replacing it with a statutory Regional Spatial Strategy (RSS). The new local development documents will have to be in general conformity with this RSS, and the RSS will be made part of the development plan.

  A draft of PPS12 was issued for public consultation in October 2003. PPS12 provides Government guidance on the new arrangements for the preparation of local development documents, which will comprise the local development framework. The local development framework is largely a "portfolio" of local development documents that collectively deliver the spatial planning strategy for the local planning authority's area. Local development frameworks are intended to streamline the local planning process and promote a proactive and positive approach to managing development.

  Copies of both PPS11 and PPS12 will be made available in the Libraries of the House following publication. They will also be made available on the web site of the Office of the Deputy Prime Minister. Copies of the responses to the consultation exercises will be made available for inspection through the Office of the Deputy Prime Minister's library and lists of those responses will also be placed in the libraries of the House.

CABINET OFFICE

  Central Office of Information
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander)
  Copies of the Central Office of Information's annual report and accounts have today been laid before Parliament and copies have been placed in the Library.

  Regulatory Impact Assessment Process
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander)
  An updated measurement of the level of compliance with the regulatory impact assessment process is today being placed on the website of the Cabinet Office Regulatory Impact Unit. An exercise in June 2004 to establish a snapshot of the level of compliance, based on consultations carried out in the twelve weeks to 16 June 2004, showed a compliance rate of 96 per cent. We will continue to keep this under regular review and will report back to Parliament as appropriate.

  Parliamentary Commissioner for Administration
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander)
  In response to a request from the Parliamentary Commissioner for Administration (The Ombudsman), I have agreed to extend her jurisdiction to include the role of the Government Actuary's Department in relation to the prudential regulation of insurers prior to this function being transferred to the Financial Services Authority in April 2001. This will enable the Ombudsman to conduct a full investigation into Equitable Life. The amendment to the legislation to make this change will be made as soon as possible.

TRADE AND INDUSTRY

  Estate Agents (OFT Report)
  The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Gerry Sutcliffe)
  On 23 March, the Government welcomed the publication of the Office of Fair Trading's (OFT's) comprehensive analysis of the estate agency market in England and Wales and the effectiveness of the Estate Agents Act 1979. The Government now propose a package of measures building on and strengthening the OFT's proposals. We plan to give enforcers the regulatory tools they need to tackle rogue agents without unnecessarily driving up costs to house sellers, and to provide a cost-effective means by which consumers may win any justified compensation from estate agents through a free independent redress mechanism such as an Ombudsman scheme.

  The Government intend to use the Housing Bill presently before Parliament to provide for such a redress mechanism.

  Estate agents have a key role in the housing market. For most people buying a house is the most expensive purchase they ever make. It is vital that this market works well and that consumers are adequately protected against unfair practices. Our proposals will mean that consumers have better information, that enforcement
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  activity is directed on those agents who deliberately flout the law and that industry schemes to provide redress are available within a competitive environment.

  The key elements of the Government's proposals are:
  A consultation document later this year on how the OFT's proposals could be brought into effect and what more could be done to strengthen the regulation of estate agents.
  Taking a power in the Housing Bill to require estate agents to belong to any industry redress scheme approved for the purpose by the Secretary of State. The power would be linked with marketing homes with Home Information Packs (HIPs) and its exercise would be subject to detailed evaluation and consultation once Government and industry have drawn up detailed proposals.
  Working with stakeholders to develop methods to evaluate trends in consumer detriment in this market and the case for an industry qualification and national quality standards for estate agents.

  In their report, the OFT concluded that the estate agency market works well in many respects and the market structure is competitive, with businesses able to enter and exit the market with ease. But consumers could make average savings of around £300 on each house sale if they did more to shop around and negotiate fees.

  However, the report highlighted significant consumer dissatisfaction with estate agents' services, ranging from serious uncorrected abuses that the Estate Agents Act should deter (for example, failure to pass on offers or declare a personal interest) to, more commonly, quality of service issues (for example, delays and inadequate communication). Much of estate agency business is conducted orally with relatively little documentation so the process is not transparent and it is consequently difficult for enforcers to detect and substantiate that abuse has occurred in order that it might be dealt with.

  The OFT's broad approach to the problems they have found in the market is
  to ensure a baseline of protection for consumers by making the present regulatory regime more enforceable. The OFT recommend that estate agents should be required to maintain written records of offers, that these should have to be copied to those making the offer as well as sellers, and that the enforcement agencies are given enhanced powers to access these when there are reasonable grounds to suspect that the Act has been breached. Breach of statutory undertakings given under the Enterprise Act 2002 should become "trigger" events enabling enforcement action, and the OFT should be able to ban a person who has committed certain offences, not just when he has been convicted of them (as is currently the case).
  to promote quality of service and redress beyond minimum standards by creating incentives for members of the industry to sign up to recognised Codes of Practice with free systems of redress. The Consumer Code of Practice of the Ombudsman for Estate Agents Company Ltd (OEA) has now completed Stage One of the OFT approval process (the code is meeting the OFT's core criteria on paper) and is seeking to complete Stage Two of the process (it will need to show the code is functioning effectively in practice) in order to obtain OFT approval. However, at present it only covers around 40 per cent. of agents. Whilst the OFT hope their promotion of the Scheme—should it be approved—will boost its membership and profile, the OFT recommend that powers should be obtained to establish a statutory redress mechanism in the event that voluntary methods do not realise the anticipated improvements.
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  The OFT's recommendations also cover such matters as making the statutory terms used in estate agency contracts clearer, extending the definition of an estate agent's personal interest in a deal and bringing the definition of estate agency in the Act up to date.

  There have been calls for the introduction of a positive licensing system as a way of improving standards and increasing protection in this market. The OFT specifically addressed the question of whether positive licensing, which could include a fitness test and training or competence requirements, would improve regulation in this market. They reject it for a number of reasons:
  A requirement for estate agents to obtain licences before they engage in business would not deal with the main identified causes of serious problems in this market. These tend to concern the way existing agents conduct their business and are consequently unlikely to be detected by a screening test in advance of granting a licence.
  Estate agents clearly need to understand their obligations under the legislation but their role is primarily that of salesmen and intermediaries. Evidence from cases where estate agents have been banned suggests that misconduct results from a lack of integrity rather than deficiencies in their knowledge or expertise.
  Positive licensing would adversely affect the benefits consumers receive in terms of downward pressure on prices that results from the ease with which new businesses can enter the market and increase competition. It would also be costly to administer and these costs would ultimately be passed on to consumers in the form of higher fees.

  The OFT's conclusion is that positive licensing would raise costs and inhibit competition without delivering enough improvements to justify this. In their view, a more effectively enforced negative licensing system combined with the OFT's new powers under the Enterprise Act will be effective in dealing with malpractice.

  In considering our response to the OFT's report, the Government have consulted stakeholders and taken into account the representations we have received. We will continue to consult fully as we take this work forward.

  In large measure, the Government agree with the OFT's analysis which identifies a number of clear problems and the case for action to deal with these. We believe that their recommendations potentially offer an effective and proportionate basis for tackling the problems they have identified in this sector.

  However, we believe that it may be necessary to go beyond the OFT's proposals in tackling consumer detriment in this market. In particular we wish to take further views on the question of enforcement and to see what can be done to build on the OFT's initial analysis. It is clear that amendments to the legislation are necessary to improve protection in this area. The Government are therefore proposing to consult later this year on a package of measures that will bring about real improvements in this sector. Our proposals will cover:
  Making estate agents dealings with consumers more transparent by requiring them to copy to buyers the written offers they have passed on to sellers and to keep clear and comprehensive records of each property transaction. This will give consumers more confidence that they are being treated fairly.
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  Giving the OFT and local Trading Standards Departments the comprehensive armoury of regulatory tools they need to investigate consumer complaints properly, address unfair practices and drive the rogues out of the market. We will look at whether they should have powers to demand the on-site production of administration records, files and copies of correspondence when they have reasonable grounds to suspect estate agents have not complied with the provisions of the Estate Agents Act.
  Allowing enforcement action to be taken where specified offences have been committed, regardless of whether or not the offenders have been successfully prosecuted.
  Widening the range of circumstances in which the OFT can consider the fitness of agents and the range of sanctions available to them.
  Widening the circumstances in which estate agents have to disclose their personal interest in property transactions.
  Modernising the Estate Agents Act so it is relevant to developments in estate agency practices, such as internet enterprises, and making it clear that consumers are protected.
  Making estate agency contracts more transparent so consumers have a better understanding of their liabilities and are not ambushed by clauses in small print or unclear language.
  Making it easier for the OFT and Trading Standards Officers to addressing flyboarding abuses by requiring agents to identify specific properties on "for sale" boards.
  Encouraging estate agents to improve quality of service by subscribing to and developing codes of practice that will meet the standards required to obtain OFT approval.

  In addition, an OFT consumer information campaign will alert consumers to how they can get best value for their money by shopping around, negotiating fees and checking whether agents subscribe to consumer codes of practice, such as the OEA's Code of Practice.

  In the Consultation Document, we will also raise whether there are other ways going beyond the OFT's recommendations in which enforcement could be improved e.g. whether some of the OFT's powers could be delegated to local authorities, whether the OFT's internal procedures for dealing with cases involving estate agents can be streamlined, and what could be done to improve communications between the OEA, the OFT and other relevant bodies to facilitate enforcement action being taken when there are serious complaints about estate agents. And we will work with the OFT and Trading Standards to ensure that the best use is made of their new enforcement powers. Updating the regulatory system on its own will not be sufficient to tackle unscrupulous behaviour unless it is effectively and speedily enforced and problems in this sector are prioritized and the necessary resources allocated to them. We are confident that the OFT and local Trading Standards Offices will rise to this challenge but we will want to work with them so that consumers benefit from real improvements in behaviour in this sector.

  The Government have noted calls for positive licensing of estate agents but we agree with the OFT's analysis that this is not justified. We believe that stakeholders have underestimated the potential impact of the OFT's recommendations as an overall package for addressing mischief in this sector. These recommendations can address the most serious problems without imposing unnecessary costs on businesses or inhibiting competition (both of which would result in higher fees). But we are also committed

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  to going beyond the OFT's proposals, for example in making it possible to require estate agents to belong to an industry redress system.

  The Government agree that access to free, independent redress is important in the estate agency sector and offers a proportionate means of dealing with consumer complaints about quality of service issues. The OEA is currently seeking approval for its Consumer Code of Practice from the OFT which would enable member agencies to demonstrate a clear commitment to higher standards.

  The Government are concerned, however, that by itself this would leave many consumers unable to obtain redress without resort to the courts. Housing markets are local so a seller may not have the option of engaging an estate agent who subscribes to a redress scheme. A buyer who wants a particular property may also have no choice as he will have to deal with the estate agent or agents selected by the seller.

  The Government are also conscious that with the introduction from 2007 of HIPs as provided in the Housing Bill estate agents may well play an increasingly pivotal role in housing transactions. On the other hand, the Government are concerned that any redress scheme should not impose an unnecessary burden on the industry or significantly increase barriers to entry, neither of which would be in consumers' interests. Proposals for a redress scheme need to be reconciled with the fact that there are no positive licensing arrangements for estate agents.

  The Government also accept that there are advantages in redress arrangements being run by the industry rather than the state. The Government believe that a way of reconciling these different considerations is for Parliament to provide a power to require estate agents to belong to any redress scheme approved for that purpose by the Secretary of State. Under the proposed arrangements, enforcement would fall under the present statutory arrangements in the Estate Agents Act: that is, that Act would apply to breach of the duty to belong to the scheme as it currently applies to a person who has engaged in an undesirable practice under the Act, so that enforcement action, including prohibition from acting as an estate agent, could be taken against any estate agent who failed to comply with the duty. The Government consider that the Housing Bill represents an opportunity to deal with this matter and propose to bring forward amendments to the Bill during the Committee stage in another place to provide for such arrangements. In recognition of the fact that this is a new proposal on which the Government have yet to consult, we would not propose to exercise the power until it was clear what industry scheme or schemes would seek recognition, what arrangements they would have for providing redress including the fees they would charge estate agents, consultation had been carried out on the detailed arrangements and a full Regulatory Impact Assessment had been done. Subject to those considerations, the Government hope that the arrangements will be brought into effect before the introduction of HIPs in 2007.

  We encourage those in the industry who wish to do so to subscribe to more wide-ranging codes of practice and to seek approval under the OFT's Consumer Codes Approval Scheme.
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  Turning to other steps the Government intend to take in respect of this market, we want to improve the evidence base so as to gain a better picture of just how much consumer detriment there is in this market and how much our proposals improve it. We plan to invite the main stakeholders to join us in trying to devise a methodology for this. Such a better evidence base might establish the need to take further steps in future.

  We also plan to work with stakeholders on the scope for devising and promoting a recognised qualification for estate agents. We see benefit in this as something that, if properly done, could provide a career incentive to raise standards.

  We also note that the British Standards Institute, the UK National Standards Body, is considering developing a service quality Standard and associated Kitemark for the provision of residential estate agency services and we shall follow with interest progress on this.

  Consumers deserve a better deal from estate agents than, as the OFT's report shows, in many cases they have got. The Government's proposals will go a long way to providing consumers in this vital market with a much better deal.

  Regional Development Agencies 2003–04
  The Minister for Industry and the Regions (Jacqui Smith)
  I have today laid before Parliament the annual reports and accounts for 2003–04 for the eight Regional Development Agencies (RDAs) outside of London. Copies have been placed in the Library of the House. The Government welcomes the contribution that the RDAs have made during this year to driving forward economic development in their respective regions.

  Also published today are the RDAs' reported Tier 3 outputs for 2003–04. These results are evidence that the RDAs continue to play a valuable role in improving the economic performance of the English regions and, through working with their partners, the RDAs are making a real difference to the individual regional economies concerned. The figures cover the creation and safeguarding of jobs, the amount of brownfield land brought back into use, the number of businesses added to the regional economies, the number of learning opportunities created and the amount of private sector investment attracted benefiting deprived areas, all as a result of RDA activity.

  Press releases on the Tier 3 outputs have been issued in each region. Copies of the output results have been placed in the Library of the House, and are also available on the DTI website at www.dti.gov.uk/rda/info.

TRANSPORT

  Street Works
  The Parliamentary Under-Secretary of State for Transport (Mr. Tony McNulty)
  Regulations under section 74 of the New Roads and Street Works Act 1991 came into force in April 2001. These allow highway authorities to charge utility companies for works in the street that overrun an agreed deadline.
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  Separate regulations under section 74A of the 1991 Act 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 74A powers have not, as yet, been activated nationally, but have been tested in pilot schemes in the London Borough of Camden and in Middlesbrough, which ended on 31 March 2004.

  The Department appointed consultants, Halcrow, to monitor the effectiveness of both sets of powers in reducing disruption on the highway. Halcrow have produced two final reports covering the section 74 and 74A powers respectively. Copies of each report will be placed in the Libraries of both Houses shortly.

WORK AND PENSIONS

  Child Support Agency
  The Secretary of State for Work and Pensions (Mr. Andrew Smith)
  I am pleased to announce that the Department for Work and Pensions has today published the 2003–04 annual report and accounts for the Child Support Agency (HC 782).

  Copies have been placed in the Library.

  New Child Support Scheme (Progress Report)
  The Secretary of State for Work and Pensions (Mr. Andrew Smith)
  The new arrangements for child support came into operation for new cases and some linked old scheme cases from 3 March 2003. Progress has been slower than anticipated, chiefly due to problems with the new computer and telephony systems that are being progressively remedied by EDS, the service provider. Recovery has now proceeded to the stage at which the agency has sufficient confidence in the system's ability to handle new applications to permit it to undertake its own recovery programme to improve compliance and increase its clearance rate. The Department will continue to withhold substantial payments from EDS until more satisfactory system performance has been achieved.

  1 Qualifying Child

  2 Qualifying Children

  3 Qualifying Children

  Average Weekly Payment

  £33.25

  £47.95

  £53.49

  Summary of Agency performance to June 2004

  Agency Performance

  Quarter 1 Mar-Jun 2003

  Quarter 2 Jul-Sep 2003

  Quarter 3 Oct-Dec 2003

  Quarter 4 Jan-Mar 2004

  Quarter 5 Apr-Jun 2004

  Scheme to June 2004

  Applications received

  73,582

  78,982

  85,306

  83,652

  83,094

  404,616

  Applications Cleared

  12,648

  38,583

  49,453

  51,8761

  45,0971

  197,6571

  of which:

  6,671

  23,857

  29,672

  31,2291

  25,6571

  117,0861

  Maintenance Calculations

  Closures2

  5,977

  14,726

  19,781

  20,6471

  19,4401

  80,5711

  First Payments made through the Agency

  461

  5,164

  11,473

  14,017

  14,974

  46,089

  First Child Maintenance Premium payments made

  77

  3,314

  6,173

  7,484

  8,070

  25,118

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  The number of cases cleared was 45,000, taking the total number of clearances (calculations and closures) to over 197,000. The total number of cases cleared continues to rise but, clearly, we need to do much more and the agency has instigated a programme designed to drive performance improvement and build on the progress made during 2003–04, with further emphasis on achieving positive outcomes for families.

  The poorest families are starting to gain significantly in real terms from the new system with the introduction of the child maintenance premium. This last quarter saw a further rise—the highest quarterly rise to date—with over 8,000 first child maintenance payments being made and bringing the total number of beneficiaries to over 25,000.

  Whereas under the old system, most cases were closed before calculations were made, the reverse is now true. The ratio between those cases reaching calculation compared with those that closed remained consistent with previous quarters at around 6:4, comparing favourably with the ratio of 4:6 under the old scheme.

  Technical issues precluded the reporting of reliable figures on compliance and throughput during 2003–04 and this, in turn, has impacted the agency's ability to manage performance improvements. We still do not have complete, fully accurate or timely information on compliance. The best information now available suggests that, in March 2004, just over half of those non-resident parents due to make payments did so.

  The agency is in the process of validating the compliance information it has for this quarter with the aim of providing this in future quarterly reports. We expect performance to improve progressively over the next year or so as the new arrangements move into steady state and better information is made available to support performance improvements.

  A special exercise was undertaken to test accuracy at the end of 2003–04. At the end of the first year of the new scheme, 82 per cent. of decisions checked were accurate to the nearest penny (against a target of 90 per cent.).

  Average weekly child support maintenance payments to parents with care are shown in the table. Figures are for June 2004 only and are calculated as the total amount received and allocated divided by the number of cases.
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  Agency Performance (April 2004 to June 2004)

  Apr-04

  May-04

  Jun-04

  Total in Quarter

  Applications Received

  28,530

  27,933

  26,631

  83,094

  Applications Cleared

  14,729

  14,809

  15,559

  45,097

  of which:

  Maintenance Calculations

  8,515

  8,428

  8,714

  25,657

  Closures2

  6,214

  6,381

  6,845

  19,440

  First Payments Made Through the Agency

  5,164

  4,745

  5,065

  14,974

  First Child Maintenance Premium Payments Made

  2,813

  2,546

  2,711

  8,070

  Notes:

  1. Quarter 4 2003–04 totals, Quarter 1 2004–05 totals and Scheme to Date figures include clerical cases (new scheme cases unable to be progressed on the new system).

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  Figures for these are as follows:

  Scheme to March 2004

  Scheme to June 2004

  Applications cleared

  824

  1,345

  Maintenance Calculations

  715

  1,134

  Closures

  109

  211

  2. Closures: Applications close for a variety of reasons. The main reasons are that the parent with care withdraws the application, perhaps due to reconciliation, or having agreed private arrangements with the non-resident parent.

  3. A proportion of cases that have a maintenance calculation in place may already be receiving payment directly, but will not be reflected in the figures shown above.

  4. Figures for child maintenance premium payments include an estimate of the number of parents who receive the premium by way of a disregard to their income support/income-based jobseekers allowance.

  Southern Africa: Food Crisis
  The Lord President of the Council (Baroness Amos)
  My right honourable friend the Secretary of State for International Development (Mr Hilary Benn) has made the following Written Ministerial Statement.

  There continue to be significant humanitarian needs in southern Africa, but the widespread humanitarian crisis that began in 2001 has eased. The countries with the most acute needs are Lesotho, Swaziland and Zimbabwe. Since 2001, my department has provided humanitarian assistance totalling over 136 million dollars for the six countries covered by the UN consolidated appeals for southern Africa—Zimbabwe, Zambia, Malawi, Mozambique, Lesotho and Swaziland.

  Total availability of the cereals harvest in the region, including South Africa, is forecast to be around 22.7 million metric tonnes this year. This is around the same level as the past five-year average for the region. Late rains and increased plantings have helped to increase production levels in Mozambique and Zambia in particular, while output in South Africa is slightly down on last year. Zambia has overtaken South Africa as the biggest regional source of grains for WFP programmes in southern Africa this year. However, production in Malawi, Lesotho and Swaziland has declined compared to last year. And throughout the region, many poor people are unable to secure enough food regardless of the national or regional production level.

  The UN has recently released the latest crop and food supply assessments for Angola, Lesotho, Malawi, Mozambique and Swaziland. The biggest shortfall is again expected to be in Zimbabwe. The Government of Zimbabwe's refusal to allow the UN to complete its assessment in the country makes it difficult to quantify food aid needs, but the Government's forecasts of a bumper harvest are not taken seriously by the main agencies working there. The cereal shortfall after domestic production in Zimbabwe is likely to be in the region of around 600,000 to 1 million metric tonnes. Despite claims to the contrary, the Zimbabwe Government are expected to import cereals to cover this shortfall although it is difficult to say how much of the gap they will be able to cover. Pockets of extreme vulnerability are likely to remain beyond the period of the UN consolidated appeal (which ends in December), particularly among socially marginalized groups.

  DfID is discussing humanitarian needs with the UN in order to prepare for periods of greater need over the next 10 months. We will respond to further funding appeals in close co-ordination with the vulnerability assessment committees operating in the region.
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  Zimbabwe

  DfID has spent £67 million on humanitarian assistance to Zimbabwe since September 2001. DfID's support for humanitarian relief will be funded through a protracted relief programme worth £18 million over the next two years. This will work with NGOs to provide support to approximately 1.5 million of the poorest households in the country, particularly those affected by HIV/AIDS. The programme will provide targeted food aid, low-cost agricultural inputs and rehabilitation of water points support to stop people falling into acute distress.

  Zambia

  Although Zambia is expecting a good cereal harvest this year, Zambians remain vulnerable due to risks associated with access to food, HIV/AIDS and adverse economic conditions, factors that are common throughout the region. DfID recently began a £10 million programme supporting CARE International to help some of the most destitute and poorest groups in Zambia to manage these risks more effectively and is supporting the Government's efforts to establish a vulnerability monitoring system in the country.

  Mozambique

  In Mozambique, DfID's poverty reduction budget support programme has allowed the Government of Mozambique to steadily improve their disaster management capacity and end the previous pattern of annual emergencies. We continue to support targeted food aid and nutritional supplementation programmes as well as seed and input fairs in Mozambique, a method that gives farmers their choice of appropriate agriculture inputs while supporting the private sector and local economies.

  Malawi

  In Malawi, we are working with the UN to support school feeding programmes to feed over 100,000 pupils in five districts. In addition, through the Malawi Social Action Fund, DfID will provide £4.95 million to vulnerable people through a cash-for-work programme from which 100,000 households are expected to benefit.

  Swaziland and Lesotho

  In Swaziland and Lesotho, we continue to support targeted food aid programmes through the World Food Programme and supplemented by support for seed fairs with FAO. We are also supporting nutritional monitoring work in Lesotho. We are spending £2 million in Lesotho to support the Government's food security priorities as part of the poverty reduction strategy process. This will include the establishment of a national food security policy, which will be aimed at sustaining and promoting livelihoods.

  Longer-Term Response

  In response to the International Development Select Committee's report of March 2003, DfID is working with governments, the UN and the NGO community to improve our of understanding and response to the problem of food insecurity in southern Africa. We have produced a regional hunger and vulnerability strategy which outlines the regional dimensions of food security in

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  the region and forms the basis of a regional programme of support, which is currently being designed.

  We are also working with the regional UN office in Johannesburg to encourage better joint programming among UN agencies and NGO partners in the region. And we are supporting the vulnerability assessment committees in Lesotho, Malawi, Mozambique, Swaziland, Zambia and Zimbabwe so that they can better track vulnerability trends and allow countries and the international community to respond more effectively.

  Ghana
  Baroness Amos
  My right honourable friend the Secretary of State for International Development (Mr Hilary Benn) has made the following Written Ministerial Statement.

  Ghana successfully reached completion point under the heavily indebted poor countries initiative (HIPC) on 13 July 2004, becoming the 14th country to do so.

  Under the arrangements agreed when Ghana applied for HIPC status, Ghana will have its debt reduced in net present value terms by 2.2 billion dollars. In addition, many bilateral creditors have indicated their intention to provide additional relief beyond the enhanced HIPC initiative (estimated to total about 500 million dollars in NPV terms). Between 2004 and 2013, Ghana could save approximately 230 million dollars annually in debt service costs.

  Debt relief, together with bilateral assistance beyond HIPC relief, will lower Ghana's debt-to-export ratio to 84 per cent, and its debt-to-government revenue ratio to 130 per cent in 2004. It is estimated that Ghana's debt will remain sustainable (by HIPC definitions) for a wide range of scenarios covering the next 20 years.

  Ghana applied for HIPC status in 2001 with the strong encouragement of the UK, and in particular of my right honourable friend the Member for Ladywood, then Secretary of State for International Development. Since then the Government of Ghana have begun to implement their poverty reduction strategy, maintained sound macroeconomic management, and undertaken some important structural reforms as agreed at decision point.

  Completion point is good news for Ghana and an opportunity to move further and faster with its poverty reduction programmes.

  Ministerial Gifts
  Baroness Amos
  The Prime Minister has today published a list of gifts received by Ministers. The list provides details of gifts received by Ministers valued at more than £140 for the period 1 April 2003 to 31 March 2004. Copies of the list have been placed in the Libraries of the House.

  Ministerial Travel
  Baroness Amos
  Expenditure on ministerial overseas visits for 1996–97 to 2003–04 is estimated as follows:

  Year

  Expenditure £million

  1996–97

  7.9

  1997–981

  6.4

  1998–99

  4.9

  1999–2000

  4.6

  2000–01

  4.7

  2001–02

  5.6

  2002–03

  5.7

  2003–042

  5.2

  1May 1997 to 31 March 1998

  2The figure for 2003–04 reflects payments made so far for travel undertaken in the period; a few bills have yet to be submitted to departments for payment.

  A list of all visits overseas undertaken by Cabinet Ministers costing £500 or more during the period 1 April 2003 to 31 March 2004 has been placed in the Libraries of the House. The list provides details of the date, destination, purpose and costs of individual visits made by the Cabinet Ministers.

  Advisory Committee on Business Appointments: Annual Report
  Baroness Amos
  The Advisory Committee on Business Appointments has submitted its sixth report to the Prime Minister. The report provides an account of the work of the committee in advising the Prime Minister on business appointment applications from Crown servants on the acceptance of outside appointments after leaving government. The report covers the period 1 April 2002 to 31 March 2004. Copies of the report have been placed in the Libraries of the House.

  The Prime Minister is very grateful to all the committee members for giving their time so freely to it.

  In addition, the Prime Minister has asked Sir Patrick Brown to undertake a review of the business appointment rules taking account of the work already done by the committee and referred to in its report. The rules were last reviewed in 1996. Since then there has been a greater emphasis on interchange with the private and other sectors. The review will have the following terms of reference:

  To review the business appointment rules to ensure that they are compatible with a public service that is keen to encourage greater interchange with the private and other sectors, which is essential for effective delivery in today's public service. The review will consider the operation of the system, taking account of practice overseas. It will also consider the current machinery for dealing with applications and the necessary resources.

  Interception of Communications Commissioner and Intelligence Services Commissioner: Annual Reports 2003–04
  Baroness Amos
  My right honourable friend the Prime Minister has made the following Written Ministerial Statement.

  I have today laid before both Houses the annual reports for 2003 of the Interception of Communications Commissioner, the right honourable Sir Swinton Thomas and the Intelligence Services Commissioner, the right honourable Lord Justice Simon Brown. Some sensitive information has been excluded from the reports of the Interception of Communications Commissioner and the Intelligence Services Commissioner in accordance with Sections 58(7) and 60(5) of the Regulation of Investigatory Powers Act.

  Advisers in post:

  Appointing Minister

  Special Adviser in post

  Expertise

  The Prime Minister1

  Jonathan Powell

  Chief of State

  Sally Morgan

  Government relations

  Policy Directorate

  Andrew Adonis

  Education

  Arnab Banerjee

  Economics

  Patrick Diamond

  Education and cross-cutting policy issues

  Matthew Elson

  Transport

  Julian Le Grand

  Health

  Roger Liddle

  Europe

  Alasdair McGowan

  Devolution, local and regional government

  John McTernan

  Social exclusion

  Geoffrey Norris

  Industry and business

  Carey Oppenheim

  Children and families

  Nicholas Rowley

  Environment

  Justin Russell

  Home and Legal Affairs

  Matthew Taylor

  Acting Head of the Policy Directorate

  Communications

  David Hill

  Hilary Coffman

  Darren Murphy

  Diary Management

  Katie Kay

  Events and visits

  Jo Gibbons

  Angela Goodchild (p/t)

  Implementation Group

  Kate Garvey

  Sarah Hunter

  Liz Lloyd

  Media Monitoring Unit

  Chris McShane

  Research and Information Unit

  Joanna Nadin

  Catherine Rimmer

  Strategic Communications Unit

  David Bradshaw

  Deputy Prime Minister and First Secretary of State

  Joan Hammell

  Ian McKenzie

  Paul Hacket (p/t)

  Chief Whip (Commons)

  Sue Jackson

  Fiona Gordon

  Chief Whip (Lords)

  Margaret Ounsley

  Secretary of State for Culture, Media and Sport

  Bill Bush

  Nick Bent

  Secretary of State for Defence

  Michael Dugher

  James Connal

  WS 40
  I am grateful to the commissioners for their reports and the work that has gone into preparing them.

  Special Advisers
  Baroness Amos
  Listed below are the names of special advisers in post at 19 July 2004, the special advisers' pay ranges for 2004–05, the number of special advisers in each pay band by department and the total cost of special advisers for 2003–04.

  All special advisers are appointed under terms and conditions set out in the Model Contract for Special Advisers providing advice on the full range of their appointing Minister's departmental responsibilities. Where a special adviser has a specific expertise this is indicated.
  WS 41

  Appointing Minister

  Special Adviser in post

  Expertise

  Secretary of State for Education and Skills

  Robert Hill

  Lisa Tremble

  Secretary of State for Environment, Food and Rural Affairs

  Nicci Collins

  Stephen Hale

  Hazel Phillips

  Secretary of State for Foreign and Commonwealth Affairs

  Ed Owen

  Communications and the EU

  Michael Williams

  UN; human rights; Asia, Africa and the Balkans

  Secretary of State for Health

  Richard Olszewski

  Steve Bates

  Paul Corrigan

  Secretary of State for the Home Department

  Matt Cavanagh

  Katharine Raymond

  Huw Evans

  Sophie Linden (p/t)

  Leader of the House of Lords, and the Lord

  Matthew Seward2

  President of the Council

  Mark Davies

  Communications

  Joe Dancey (p/t)

  Secretary of State for Constitutional Affairs and Lord Chancellor

  Garry Hart

  Philip Bassett

  Secretary of State for International Development

  Alex Evans

  Beatrice Stern

  Communications

  Secretary of State for Northern Ireland

  Owen Smith

  Adam Higgett

  Leader of the House of Commons, Lord

  Greg Power

  Parliamentary procedure

  Privy Seal and Secretary of State for Wales

  Phil Taylor

  Parliamentary procedure

  Andrew Bold

  Welsh affairs

  Secretary of State for Trade and Industry

  Jim Godfrey

  Communications

  Roger Sharp

  Deborah Lincoln

  Women and equality

  Emily Thomas (unpaid)

  Secretary of State for Transport and Secretary of State for Scotland

  Andrew Maugham

  Sam White

  Iain Gray

  Scottish affairs

  Chancellor of the Exchequer3,4

  Ian Austin

  Communications

  Spencer Livermore

  Chief Secretary

  Nicola Murphy

  Jonathan Ashworth

  Secretary of State for Work and Pensions

  Chris Norton

  Tom Clark

  Minister without Portfolio

  Martin O'Donovan

  Blair McDougall

  Pay bands for 2004–05

  The pay bands and pay ranges for special advisers for 2004–05 are as follows:

  Scheme Maximum

  £133,628

  Pay Band 4

  £80,178 to £96,213

  Pay Band 3 and Premium

  £59,867 to £93,005

  Departments

  Pay Band

  0

  1

  2

  3

  4

  No105

  1

  5

  5

  13

  2

  Office of the Deputy Prime Minister

  —

  —

  2

  1

  —

  Chief Whips' Offices (Commons and Lords)

  —

  1

  2

  —

  —

  Constitutional Affairs

  —

  —

  —

  —

  2

  Culture, Media and Sport

  —

  —

  1

  1

  —

  Defence

  —

  1

  1

  —

  —

  Education and Skills

  —

  —

  1

  1

  —

  Environment, Food and Rural Affairs

  —

  2

  1

  —

  —

  Foreign and Commonwealth Office

  —

  —

  —

  2

  —

  Health

  —

  —

  2

  1

  —

  Home Office

  —

  —

  4

  —

  —

  WS 42

  Pay Band 2

  £47,038 to £61,785

  Pay Band 1

  £36,348 to £48,456

  Pay Band 0

  Up to £36,347

  Advisers by Pay Band

  At 19 July 2004, the number of special advisers in each pay band by department is as follows:
  WS 43

  Departments

  Pay Band

  0

  1

  2

  3

  4

  International Development

  —

  2

  —

  —

  —

  Lord President of the Council and Leader of the House of Lords

  —

  3

  —

  —

  —

  Lord Privy Seal, Leader of the House of Commons and Secretary of State for Wales

  —

  2

  1

  —

  —

  Northern Ireland Office

  —

  1

  1

  —

  —

  Trade and Industry6

  —

  1

  1

  1

  —

  HM Treasury7

  —

  2

  —

  2

  —

  Secretary of State for Scotland and Secretary of State for Transport

  —

  1

  2

  —

  —

  Work and Pensions

  —

  —

  2

  —

  —

  Minister without Portfolio

  —

  2

  —

  —

  —

  Total

  1

  23

  26

  22

  4

  Paybill costs

  The cost of special advisers in 2003–04 is £5.3 million8.

  1Plus Lord Birt, who is appointed as the Prime Minister's unpaid strategy adviser.

  2In addition, Matthew Seward also works part-time for the Home Secretary.

  3In addition, the Chancellor of the Exchequer has appointed Ed Miliband (Chairman), Paul Gregg, Shriti Vadera, Michael Jacobs and Stewart Wood to the Council of Economic Advisers on special adviser terms.

  4Plus Sue Nye appointed as an unpaid adviser.

  5Plus two special advisers who are paid beyond pay band 4, but within the scheme maximum.

  6Plus one adviser who is unpaid.

  7Plus the five members of the Council of Economic Advisers who are employed on special adviser terms (one in band 4, three in band 3 and one in band 1). One of the members of the council works part-time.

  8This figure includes salary, severance pay and an estimate of pensions cost.

  Human Rights: International Instruments
  The Secretary of State for Constitutional Affairs and Lord Chancellor (Lord Falconer of Thoroton)
  The interdepartmental review of international human rights instruments announced on 7 March 2002 by my noble and learned friend Lord Irvine of Lairg has been concluded.

  In the course of the review, the Government have ratified the optional protocol to the United Nations Convention Against Torture; signed and ratified Protocol 13 to the European Convention on Human Rights; ratified the optional protocol to the Convention on the Rights of the Child, relating to children in armed conflict; and extended the European Convention on Human Rights to the Cyprus Sovereign Base Area. We have decided to accept the optional protocol to the Convention on the Elimination of all forms of Discrimination Against Women, which will help us to assess the effects of individual petition to the UN generally. By accepting the protocol we are also confirming the United Kingdom's commitment to women and equality issues, spearheaded by the Minister for Women, Patricia Hewitt. We will also sign Protocol 7 to the European Convention on Human Rights; ratify Chapters A and B of the Convention on Participation of Foreigners in Public Life; withdraw the general reservation relating to immigration entered under the Convention on the Elimination of all forms of Discrimination Against Women; and modify the reservation relating to the Throne and the Armed Forces entered under the Convention on the Elimination of all forms of Discrimination Against Women. Finally we will dispense with a group of reservations now obsolete.
  WS 44
  I have placed in the Library a fuller report of the review.

  Infant Death Convictions
  The Attorney-General (Lord Goldsmith)
  I announced in January a review of cases of parents and carers convicted of killing an infant under the age of two in the past 10 years.

  This followed the Court of Appeal's decision to quash the conviction of Angela Cannings. The court's judgment questioned the safety of convictions depending exclusively, or almost exclusively, on a serious disagreement between distinguished and reputable experts.

  In May, I announced that my office had notified the legal representatives of five defendants that it may be appropriate for the safety of their clients' convictions to be considered further by the Court of Appeal or, if appropriate, the Criminal Cases Review Commission. Since that time, as part of the process of ongoing review, my office has written in similar terms to the legal representatives of 19 further defendants.

  The fact that a case has been referred to legal representatives of the convicted person does not amount to a positive determination that their conviction is unsafe. Should any appeals result from this review, it will be for the Crown Prosecution Service to independently decide whether to contest the appeal.

  I aim to complete the review in September, when I will report fully to the House. The review is continuing to be accorded the highest priority, to bring to an end this period of uncertainty for all those involved.

  Strategic Export Control Decisions
  The Minister of State, Foreign and Commonwealth Office (Baroness Symons of Vernham Dean)
  Enhanced statistical information on strategic export licensing will, from July 2004, be released on a quarterly basis, instead of once a year through the annual report on strategic export controls, as at present. The first quarterly report on strategic export controls will be published on the Department of Trade and Industry and Foreign and Commonwealth Office websites (www.dti.gov.uk and www.fco.gov.uk) on 28 July. This report will contain information on export licensing decisions taken from January to March 2004.

  From now on, statistical data will be published on the FCO and DTI websites three months after the last decision in any given quarter. Until now, decisions taken in one calendar year have been reported in the annual report on strategic export controls in the middle of the following year. Information on the earliest licensing decisions reported in the annual report was not therefore made available until some 18 months later.

  From 2004, the annual report, which the Government have a statutory obligation to produce, will summarise information already provided in quarterly reports, as well as describing export control policy developments. It will be produced in hard and electronic copy. The hard copy will include a CD-ROM containing all of the licensing data published in the quarterly reports for that year. The Government intend to publish the next quarterly report, relating to decisions taken between April and June 2004, in October.

  The introduction of quarterly reports reflects the Government's commitment to further improve the openness of their strategic export licensing system, which is already acknowledged to be among the most transparent in the world.

  The Government's most recent strategic export controls annual report was published on 7 June.

  Iraq: Export Licence Applications
  Baroness Symons of Vernham Dean
  Following consultation with the Foreign and Commonwealth Office and the Ministry of Defence, the Department of Trade and Industry recently approved a further licence to export military list goods to Iraq. The arms embargo against Iraq remains in place under United Nations Security Council Resolutions 1483 (22 May 2003) and 1546 (8 June 2004). UNSCR 1483 (2003) includes an exception for "arms and related materiel required by the [Coalition Provisional] Authority to serve the purposes of this and other related resolutions".

  Accordingly, prior to the handover of power on 28 June and the Coalition Provisional Authority ceasing to exist, Her Majesty's Government considered it appropriate to grant exemptions for the export of military listed goods for use by Iraqi police forces, Ministry of Justice personnel, Ministry of Oil security
  WS 46
  personnel and Iraqi security forces. The licence is consistent with the consolidated EU and national arms export licensing criteria. Future applications will continue to be assessed on a case by case basis against the UN embargo and consolidated criteria, taking into account the circumstances prevailing at the time.

  Baroness Symons of Vernham Dean
  Following consultation with the Foreign and Commonwealth Office and the Ministry of Defence, the Department of Trade and Industry recently approved a licence to export military list goods to Iraq. The arms embargo against Iraq remains in place under United Nations Security Council Resolutions 1483 (22 May 2003) and 1546 (8 June 2004). UNSCR 1483 (2003) includes an exception for "arms and related materiel required by the [Coalition Provisional] Authority to serve the purposes of this and other related resolutions".

  Accordingly, Her Majesty's Government consider it appropriate to grant a licence for the export of assault rifles and semi-automatic pistols for use by a private security company, contracted to provide support for personnel working under contract with the Iraqi Board of Supreme Audit. The Coalition Provisional Authority (CPA) certified the requirement for these weapons prior to the CPA ceasing to exist on 28 June. The licence is consistent with the consolidated EU and national arms export licensing criteria. Future applications will continue to be assessed on a case by case basis against the UN embargo and consolidated criteria, taking into account the circumstances prevailing at the time.

  Berezovsky and Zakayev
  Baroness Symons of Vernham Dean
  Russian citizens Boris Abramovich Berezovsky and Akhmed Iliasovich Zakayev were granted asylum in the UK last year, as is public knowledge.

  The grant of asylum to these two persons was made after due assessment by the relevant authorities of their cases and of the UK's obligations under the 1951 UN Convention on Refugees and domestic law. They did not enter the UK at the invitation of Her Majesty's Government. A grant of asylum does not imply support from the UK Government for an individual's views, activities or statements.

  We take very seriously the requirement for any person granted asylum in the UK to comply with the conditions of the UN convention under which refugees are recognised, and with the provisions of UK law. Recipients of asylum receive cautions not to take part in criminal activities, or activities such as support for or encouragement of terrorist organisations, or activities endangering national security or public order. Where individuals granted asylum breach these conditions we would not hesitate to take action against them and have strengthened the law to enable us to do so more effectively.

  British Council Trustees: Annual Report and Accounts 2003–04
  Baroness Symons of Vernham Dean
  Copies of the British Council Trustees' annual report and accounts for the financial year ended 31 March 2004 have been placed in the Library of the House. During the period the Council received £165.5 million grant in aid from the Foreign and Commonwealth Office.

  Pre-trial Cross-examination: Visual Recordings
  The Minister of State, Home Office (Baroness Scotland of Asthal)
  The Youth Justice and Criminal Evidence Act 1999 (the 1999 Act) contained, among other provisions, eight special measures for vulnerable or intimidated witnesses. They are essentially different ways of giving evidence in criminal trials which were designed either to improve the quality of evidence given by witnesses through reducing their levels of stress or to make it possible for witnesses who find difficulty in giving their evidence to have access to justice.

  This Government have already implemented, or are piloting, seven of the eight measures. The eighth measure—visually recorded pre-trial cross-examination— was always going to be the most complicated of the measures to implement. It was also always likely to be applied to the smallest number of cases.

  A number of stakeholders have expressed their concerns to us about the detail of its implementation. We therefore commissioned Professor Diane Birch, a leading academic in the field, to review and provide advice on the workability of visually recorded pre-trial cross-examination. A copy of Professor Birch's report has been laid in the Library today.

  The report concludes that one of the two main reasons for undertaking visually recorded pre-trial cross-examination—that of capturing all the witness's evidence early in the pre-trial process—is no longer valid. That is because of new rules on disclosure which effectively mean that by the time both counsel are in a position to undertake visually recorded pre-trial cross-examination, they will be ready to go ahead with the trial itself.

  The second reason—keeping the witness out of court altogether—is still valid. However the report concludes that rather than introduce the cumbersome mechanism of visually recorded pre-trial cross-examination many months after having visually recorded evidence in chief, it would be far more sensible to return to the original recommendation in the report of the advisory group on video evidence (1989) chaired by his Honour Judge Thomas Pigot QC. This was that the child should appear at an informal hearing, at which both the child's evidence in chief (supplemented, where there was one, by an earlier video recorded interview) and the cross-examination would be recorded on video for subsequent transmission to the court.
  WS 48
  The report recommends that Section 28 of the 1999 Act, which provides for visually recorded pre-trial cross-examination, should be revisited. It recommends also that the operation of Section 21 of the same Act should be reviewed. Section 21 provides that under-17 year-olds who are witnesses in cases of sex or violence are given no choice in having certain special measures—such as visually recorded evidence in chief or live TV links—applied to them, whether they wish for them or not. So a 16½ year-old who has witnessed any sort of violent crime, even where he was not himself involved, would be forced to give evidence in this way.

  The Government are disappointed not to be implementing one of the eight special measures for vulnerable or intimidated witnesses which we provided for in good faith five years ago. But we believe it is better to take the advice of one of the leading experts in the field and many senior practitioners, and revisit this complex issue. Our aim is to achieve genuine improvements to the way in which vulnerable and intimidated witnesses give their evidence, and this will not be achieved by ploughing on doggedly with implementation of provisions which informed advice suggests will not be practicable or yield the benefits originally envisaged.

  We have therefore decided that in the autumn we shall embark upon a wider review of how child evidence is taken and presented in the criminal courts, particularly in cases involving sex or violence, with the aim of delivering the greater flexibility recommended in Professor Birch's report. This will assist in our aim of enabling measures to be more tailored to the individual witness's needs.

  We are also ensuring that everything which can be done to improve the experience of those witnesses who might have benefited from the implementation of Section 28 is being done. The No Witness No Justice project will ensure that children's needs are assessed and met, so that, for example, pre-trial court visits are arranged; access to a range of emotional support and guidance through appropriate groups is offered; where possible home visits take place; and parents are provided with a single point of contact to access information and advice throughout the case. We will continue to improve court buildings so that encounters between the defendant and the child witness are minimised, for example though providing more TV live links. We will also continue to work with the judiciary and the Bar to ensure that children's needs and wishes are recognised by the courts.

  Charity Commission: Departmental Report 2004
  Baroness Scotland of Asthal
  I am today announcing that the Charity Commission will be publishing its departmental report for 2004 on 23 July. Copies of that report will be available in the Library.

  Planning Policy Statements
  The Minister of State, Office of the Deputy Prime Minister (Lord Rooker)
  My right honourable friend the Minister for Housing and Planning has made the following Written Ministerial Statement.

  The Office of the Deputy Prime Minister expects to publish in August new planning policy statements on both sustainable development in rural areas and renewable energy in England. These will be the first in a new series of planning policy statements that are being introduced as part of the Government's programme of reform to the planning system. The new planning policy statement 7 (PPS7) will replace existing planning policy guidance note 7 (PPG7), The Countryside—Environmental Quality and Economic and Social Development, published in February 1997. The new planning policy statement 22 (PPS22) will replace existing planning policy guidance note 22 (PPG22): Renewable Energy, published in February 1993.

  A draft of PPS7 was issued for public consultation in September 2003. The key policy aims of PPS7 are to plan for and facilitate good quality, sustainable development to support thriving rural communities and businesses, while protecting the beauty and character of the countryside.

  A draft of PPS22 was issued for consultation in November 2003. The final document will be an important step towards facilitating the delivery of more renewable energy developments and thereby meeting this Government's commitments in respect of global warming and climate change.

  Local planning authorities will need to have regard to the policies in PPS7 and PPS22 in preparing their local development documents, as should regional planning bodies in the preparation of regional spatial strategies. The policies may also be material to decisions on individual planning applications.

  Copies of both PPS7 and PPS22 will be made available in the Libraries of the House following publication. They will also be made available on the website of the Office of the Deputy Prime Minister. Copies of the responses to the consultation exercises will be made available for inspection through the Office of the Deputy Prime Minister's library and lists of those responses will also be placed in the Libraries of the House.

  Lord Rooker
  My right honourable friend the Minister for Housing and Planning has made the following Written Ministerial Statement.

  The Office of the Deputy Prime Minister intends to publish in August planning policy statements detailing the process by which Parts 1 and 2 of the Planning and Compulsory Purchase Act 2004 are to be implemented. Planning policy statement 11 (PPS 11) sets out the implementation process of Part 1—Regional Functions—and replaces planning policy guidance 11—Regional Planning—published in October 2000. Planning policy statement 12 (PPS 12) sets out the implementation process of Part 2, Local Development, and replaces planning policy guidance 12, Development Plans, published in December 1999. These planning policy
  WS 50
  statements are integral to the Government's programme of reforming the planning system.

  A draft of PPS 11 was issued for public consultation in October 2003. PPS 11 provides government guidance on the new arrangements for regional planning. The new procedural arrangements will better deliver policy at the regional level by giving more weight to what is currently regional planning guidance by replacing it with a statutory regional spatial strategy (RSS). The new local development documents will have to be in general conformity with this RSS, and the RSS will be made part of the development plan.

  A draft of PPS 12 was issued for public consultation in October 2003. PPS 12 provides government guidance on the new arrangements for the preparation of local development documents, which will comprise the local development framework. The local development framework is largely a portfolio of local development documents which collectively deliver the spatial planning strategy for the local planning authority's area. Local development frameworks are intended to streamline the local planning process and promote a proactive and positive approach to managing development.

  Copies of both PPS 11 and PPS 12 will be made available in the Libraries of the House following publication. They will also be made available on the website of the Office of the Deputy Prime Minister. Copies of the responses to the consultation exercises will be made available for inspection through the Office of the Deputy Prime Minister's library and lists of those responses will also be placed in the Libraries of the House.

  Primary Care Dental Workforce Review
  The Parliamentary Under-Secretary of State, Department of Health (Lord Warner)
  My honourable friend the Minister of State, Department of Health has made the following Written Ministerial Statement today.

  The Secretary of State's Written Ministerial Statement on 16 July set out the Government's plans for rebuilding National Health Service dentistry, ensuring better access to NHS dental care and improving oral health in England. The plans included a significant increase in funding and a substantial programme of action to increase dental workforce capacity. These improvements will be made against the background of the move to local commissioning in October 2005.

  The views of a wide range of organisations were helpful to us in drawing up our proposals. For example the British Dental Association and representatives from the NHS and higher education were among those who contributed to the report of the primary care dental workforce review which was completed in 2002. Although time has moved on, the report is important contextual information about the perceived needs as seen in 2002. The report assisted our thinking as we developed the comprehensive plans announced last week. We are therefore publishing the report today. It is available on the department's website at www.dh.gov.uk/publications. Copies of the report have been placed in the Library.

  Bennett Inquiry
  Lord Warner
  My honourable friend the Minister of State, Department of Health has made the following Written Ministerial Statement today.

  This Statement follows publication of the independent inquiry into the death of David (Rocky) Bennett, and my Written Statement on 12 February at col. 77WS, which set out the action being taken to deliver race equality in mental health services, and respond to the recommendations of the inquiry.

  I wish to inform the House that, further to the reply given to the honourable Member for Gloucester (Mr Dhanda) by my right honourable friend the Secretary of State for Health (Dr John Reid) on 8 June at col. 138, our response to the inquiry will not be available in July, but will be provided later this year.

  I want to reassure the House that this delay is because we want to ensure that our response to the inquiry report recommendations can be set alongside our wider programme of action to improve mental health care for black and minority ethnic communities. This will be published in the autumn, following our consultation on the framework in the report, Delivering Race Equality. We need more time to consider the significant issues raised during our consultation on this document. We also want to ensure that we properly address the recommendations of the inquiry report.

  In the mean time we must ensure that NHS staff have the skills they need to provide services, without discrimination, for people from black and minority ethnic communities. I am pleased to inform the House that the NHSU will be giving priority to developing and delivering this training for NHS staff, starting with staff in mental health settings.

  Further information about progress on the national work we have started and to which I referred in my Statement of 12 February is now availablel. This includes information about the programme of work led by the National Institute for Mental Health to support the development of effective services for people with mental health problems from black and ethnic minority communities; and guidance on best practice to support the safe and therapeutic management of aggression and violence in mental health inpatient settings.

  1Details of the NIMH(E) programme, including key publications, can be found at: http://www.nimhe.org.uk/priorities/black.asp. NIMHE's guidance Developing Positive Practice to Support the Safe and Therapeutic Management of Aggression and Violence in Mental Health Inpatient Settings: Mental Health Policy Implementation Guide has been developed to support mental health service providers and enable them to review their current policies and procedures relating to education, training and practice in the safe and therapeutic management of aggression and violence. It can be found at: http://www.nimhe.ore.uk/whatshapp/item display publications.asp?id = 441
  WS 52
  I would like to draw particular attention to the publication yesterday of our health and social care standards and planning framework. It sets out the local action needed to commission services for the public to take forward the NHS Improvement Plan through effective partnership working. It sets out the national framework for PCTs and their partner organisations to take account of different needs and inequalities in their local populations. It commits us to providing national data year on year on the experience of service users from black and minority ethnic communities. It sets out how PCTs should support access to assessment, treatment and care for all those at risk, paying particular attention to the needs of those from black and minority ethnic communities and other groups that may be hard to reach.

  I would also like to take this opportunity to reiterate my view that there is no place for racism or discrimination in the NHS. Discrimination, both direct and indirect, does exist. It is unacceptable; it contradicts the basic value of equity that is the cornerstone of the health service. We are committed to rooting out racism, tackling the inequalities that exist, and ensuring that the experience of people from black and minority ethnic communities is improved.

  NHS Counter Fraud and Security Management Service: Annual Report and Accounts
  Lord Warner
  My right honourable friend the Minister of State for Health has made the following Written Ministerial Statement today.

  The annual report and accounts and any accompanying Comptroller and Auditor General report for the Counter Fraud and Security Management Service have today been laid before the House of Commons pursuant to Section 98(1C) of the National Health Service Act 1977. Copies have been placed in the Library.

  Blood Donation and vCJD
  Lord Warner
  My right honourable friend the Secretary of State for Health has made the following Written Ministerial Statement today.

  My Statement on 17 December 2003 informed the House of the first case of possible transmission of vCJD via blood transfusion and the actions taken as a result of this case to protect future blood supplies. I promised then to provide updates on any major changes.

  My Statement of 16 March 2004 indicated that the Committee on the Microbiological Safety of Blood and Tissue for Transplantation (MSBT) had met at my request to consider whether further measures were needed. The recommendations were to exclude from donating blood anyone who had previously received transfusions of whole blood components since January 1980. These measures were introduced with effect from 5 April 2004.

  MSBT met again on 29 June to review experience of these measures. The committee recommended tightening the exclusion criteria for two groups who have similarly received transfusions of whole blood components since

  WS 53
  January 1980: previously transfused apheresis donors; and donors who were unsure if they had previously had a blood transfusion.

  Apheresis donors are a small pool of committed donors who make frequent attendances to donate blood, where machine processing removes only certain blood components and the rest is returned to the donor.

  When actions were taken in April 2004 to exclude certain donors, neither of these groups was excluded until any potential impact on the blood supply became clearer.

  In the light of experience since the exclusions came into effect, MSBT has now advised that these groups can be excluded without adverse impact on the blood supply. These new exclusions will take effect from 2 August.

  In a separate development, a second case of possible vCJD prion transmission via blood transfusion has now been confirmed. A patient in the UK received a transfusion of blood in 1999 from a donor who subsequently developed vCJD. Though the patient died of causes unrelated to vCJD, abnormal prion protein has been found in spleen tissue. This patient had a genetic type that differs from that so far found in patients who have developed vCJD.

  I understand that a detailed account of the case will be appearing soon in the medical journal the Lancet. This new finding was referred to the Spongiform Encephalopathy Advisory Committee (SEAC) and MSBT for expert advice. SEAC agreed that this second patient with apparent vCJD infection added to the evidence that the vCJD agent can be transmitted by blood. MSBT concurred with this view, and has advised that no additional public health measures are required to protect the blood supply. This confirms the precautionary approach set out in my Statement of 17 December.

  NHS: Reducing Bureaucracy
  Lord Warner
  My right honourable friend the Secretary of State for Health has made the following Written Ministerial Statement today.

  On 20 May at col. 61 WS, I announced the completion of the initial stage of the review of my department's arm's length bodies (ALBs). I made it clear then that there is considerable scope to improve efficiency and reduce bureaucracy in the ALB sector and I laid down the following parameters for the review:

  a 50 per cent reduction in the number of ALBs;

  a saving in expenditure by ALBs of £0.5 billion by 2007–08; and

  a reduction in posts of 25 per cent in the same period.

  The next stage of the review has now been completed and decisions taken on a reconfiguration of the ALB sector and its functions. Some of these functions provide reassurance to patients about standards in an increasingly devolved health and social care system. Others provide functions that can literally be life
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  saving. The reconfiguration will enhance these essential functions while eliminating overlaps and devolving functions where possible. It will not put the safety and welfare of patients in jeopardy. The changes are summarised below and explained in a report, Reconfiguring the Department of Health's Arm's Length Bodies, copies of which have been placed in the Library.

  I want now to move to detailed discussions with all interested parties about how to implement these changes. Some changes will require primary or secondary legislation and the parliamentary scrutiny that goes with that. Some statutory consultation will be required on specific changes.

  Last week, my right honourable friend the Chancellor of the Exchequer announced the Government's overall plans for releasing resources to the front line. The ALB review contributes to those plans. It will also lift the burden that the central overhead can place on frontline staff. The way in which we achieve the ALB reductions will be linked to the analysis undertaken for the Gershon efficiency review. The changes I will be making reflect the Prime Minister's wider Civil Service reform agenda and will also deliver the expectations of the Lyons review on public sector relocation.

  The ALB review covered the work of standalone national organisations sponsored by the department to undertake executive functions. Thirty eight of these existed in the baseline year of 2003–04, although the review also looked at four prospective ALBs. A list of the bodies can be found in the report. The decisions I have taken so far will reduce the number of ALBs by almost half to 20, in the following four main categories.

  Regulation

  ALBs in this category regulate, inspect and hold specific parts of the system to account. They often have their own primary powers and extra independence from direction by the Secretary of State.

  The Healthcare Commission (whose statutory name is the Commission for Healthcare Audit and Inspection), the Independent Regulator of National Health Service Foundation Trusts and the Commission for Social Care Inspection will continue to regulate providers and their services. The Healthcare Commission will take on the main role of the Mental Health Act Commission, which will be abolished.

  A new Regulatory Authority for Fertility and Tissue will be created to encompass the work of the Human Fertilisation and Embryology Authority and the Human Tissue Authority.

  The Council for the Regulation of Health Care Professionals will continue to oversee the statutory health professional self-regulatory bodies and the General Social Care Council will continue to regulate social care workers. The Postgraduate Medical Education and Training Board will take on the role of the Dental Vocational Training Authority, which will be abolished.

  The Medicines and Healthcare products Regulatory Agency will continue to regulate medicines and healthcare products.
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  Standards

  ALBs in this category establish national standards and best practice.

  The National Institute for Clinical Excellence (NICE) will take on the work of the Health Development Agency (HDA) in order to link standards work on both the prevention and treatment of ill health. The HDA will be abolished.

  Public welfare

  ALBs in this category are focused primarily on the safety, protection, well-being and involvement of patients and public.

  The National Clinical Assessment Authority (NCAA) will be brought into the National Patient Safety Agency (NPSA) which will also support high-quality, independent ethical review of all research that could affect patients. The NPSA will take on the lead national perspective on hospital food, cleanliness and safe hospital design. NPSA will also take over responsibility for the national confidential inquiries from NICE.

  The Health Protection Agency (HPA) has taken on functions from the Public Health Laboratory Service and will take on the role of the National Radiological Protection Board under the Health Protection Agency Act 2004. The PHLS and the NRPB are to be abolished. The National Biological Standards Board will also be abolished and its functions taken on by others, primarily the HPA.

  The regional functions and staff of the National Treatment Agency for Substance Misuse will be transferred to existing mainstream structures as soon as possible. A further announcement on this will be made shortly. Centrally the NTA will continue in existence until we are confident that a detailed programme of mainstreaming drug treatment within the NHS is successfully in place. A review of progress will take place in 2006 to agree any further action needed to ensure drug treatment is fully mainstreamed into the NHS including agreeing the future of the NTA's national functions.

  The Commission for Patient and Public Involvement in Health will be abolished. Patients forums will remain the cornerstone of the arrangements we have put in place to create opportunities for patients and the public to influence health services. Stronger, more efficient arrangements to provide administrative support and advice to forums will be put in place after consultation. The NHS Appointments Commission will appoint forum members. A clearer quality framework for forum activities in monitoring and reviewing health services will be established and communicated to forums as quickly as possible.

  Central services to the NHS

  These ALBs provide services involving economies of scale and focused expertise.

  A new Blood and Transplant Authority will be created to encompass the services provided by the National Blood Authority and UK Transplant, which will be abolished.
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  The NHS Litigation Authority (NHSLA) will be reconstituted to oversee the proposed NHS redress scheme and manage the financial compensation element at national level. Further details on how the scheme will operate will be published later this year, and implementation will require primary legislation. The NHSLA will also take on the functions of the Family Health Services Appeal Authority (Special Health Authority) which will be abolished.

  The NHS Appointments Commission will be reconstituted as an executive non-departmental public body with wider powers to make public appointments. It will also make appointments to patients forums and to research ethics committees.

  The NHSU is subject to a more detailed study, within the overall ALB review process, which will be completed shortly. The NHS Modernisation Agency will have most of its budget and staff devolved to the NHS, with a smaller core remaining within the department for the present.

  A new Health and Social Care Information Centre will be created to reduce burdens on the front line by co-ordinating information requirements across a wide range of bodies. The new centre will retain some of the information-related functions of the current NHS Information Authority and will take on the statistics and information management functions of the department. The NHSIA will be abolished. To build on the progress and momentum achieved to date, and reflect its sheer scale, the national programme for information technology will become a time-limited executive agency for three to five years and will incorporate the IT functions of the NHSIA.

  A new NHS Business Services Authority will be created to replace the NHS Pensions Agency, the Dental Practice Board, the Prescription Pricing Authority and the NHS Counter Fraud and Security Management Authority, all of which will be abolished.

  The NHS Purchasing and Supply Agency will be reformed. The role of the NHS Logistics Authority will be market-tested. It is anticipated that the function will be contracted out and that the NHS Logistics Authority will be abolished.

  A dental special health authority will no longer be created.

  NHS Direct and NHS Professionals will retain their ALB status for two to three years. In the mean time, we will work with both organisations to consider how they may prepare to transfer to independent status as bodies established on foundation principles to operate in the public interest.

  A small core estates team will be brought into the department and NHS Estates abolished.

  Releasing resources to the front line

  In 2003–04, ALBs spent a total of £4.8 billion, including operating costs of £1.8 billion, and employed around 25,000 staff.

  The principles outlined in Sir Peter Gershon's efficiency review will be applied to the ALB sector to generate more than £200 million in cash-releasing savings for the front line, for example by sharing back

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  office services and by carrying out activities more efficiently. No ALB will be exempt from the need to improve efficiency. In addition, £150 million to £200 million will be released to front-line control by devolving functions from ALBs. The scope for achieving full cost recovery for regulation will be investigated and taken forward.

  The department's commercial directorate is scrutinising the business processes and procurement activities of many of the central services ALBs to establish the full scope of the efficiencies to be made, especially in relation to the money (about £3 billion) that is spent by ALBs on behalf of front-line organisations on NHS supplies, temporary staff and litigation services. The commercial directorate's work on the NHS supply chain is already well advanced, suggesting savings of approximately £150 million to £200 million in the period to the end of 2007–08.

  We are confident that expenditure on ALBs can be reduced by at least £0.5 billion by 2007–08. Savings of this magnitude will be associated with a reduction in the number of posts in the ALB sector of about 25 per cent.

  The ALB review will now move to implementation. Over the next three to four months my officials will work closely with the devolved administrations, ALBs, staff interests and other stakeholders to draw up implementation plans and to resolve outstanding issues on allocation of functions. These plans will include decision points on new ALB functions and processes, staffing levels, budgets, location and time scales for transfer. A small team in the department will oversee this process. These arrangements will ensure delivery of the saving of £0.5 billion by 2007–08 and the reduction of posts within ALBs.

  S4C: Independent Review
  The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)
  My right honourable friend the Secretary of State for Culture, Media and Sport (Tessa Jowell) has made the following Statement.

  On 3 March this year, I announced the appointment of Roger Laughton, Head of Bournemouth University Media School, assisted by Meurig Royles as Welsh language assessor, to carry out an independent review of S4C.

  I am today publishing Mr Laughton's report of his review and copies have been deposited in the House Libraries. I welcome this very thorough analysis of S4C's current position and the challenges facing the authority in the digital age. The report's conclusions and recommendations raise a number of issues relating to the Government's digital action plan, BBC Charter review and Ofcom's review of public service broadcasting, which will need to be addressed in the context of those initiatives. My department will liaise with the authority and with other interested organisations to consider Mr Laughton's recommendations in detail and I will notify the House of the resulting conclusions in due course.

  Digital Switchover
  Lord McIntosh of Haringey
  My right honourable friend, the Secretary of State for Culture, Media and Sport (Tessa Jowell) has today made the following Written Ministerial Statement.

  In my statement of 19 May I said that I would report further stages in establishing the plan for switchover. I am pleased to say that much progress has been made in the discussions between the Government, Ofcom and the public service broadcasters.

  While the broadcasters have not reached a full consensus on the optimum timetable, some—including the BBC—have suggested that 2012 may be the most appropriate date for the completion of switchover. This could mean beginning the switching sequence as early as 2007. This would be subject to agreement on a detailed plan, including resolution of the remaining issues raised in the discussions. Ofcom plans to include reference to this timetable in the draft digital licences for Channels 3, 4, 5 and Teletext which they expect to publish for consultation later this summer.

  We continue to believe that an ordered process leading to the earliest practicable switchover remains desirable given the advantages to consumers, the broadcasting industry and future growth of innovative new services. We believe that switchover should be broadcaster-led but that the final decision on timetable should balance these benefits against the need to ensure that the interests of the most vulnerable consumers are protected. I have therefore asked Ofcom's independent consumer panel to consider what measures might be necessary to ensure this protection and to report to me later this year with their advice. We will also take advice from leading charities. The Government's final endorsement of a timetable will be subject to being satisfied that adequate measures are in place to meet this objective.

  The BBC, in its 29 June publication Building Public Value, proposed that 2012 should be the target date for switchover. The BBC made clear its willingness to be a "leader and co-ordinator across the industry" and to "take a special responsibility for bringing the final cohorts into the digital television universe". I have asked the BBC how it proposes to take this forward.

  The Government remain committed to ensuring that switchover is planned and implemented in a way which is platform and broadcaster neutral. Consumers must have clear, unbiased information about what is available on each platform and from each provider so that they can make an informed choice. In particular, people who buy television equipment now should know that switchover will take place during the expected lifetime of television sets bought today. We are therefore engaged with retailers and manufacturers—who also need to plan ahead—to see that good clear information is given to consumers currently planning to buy a television or an item of recording equipment. We expect this information to spread through retail outlets from September, identified by the switchover logo.
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  As an early step towards switchover, we are proceeding with a technical trial in two villages—Ferryside and Llansteffan—in south Wales. The residents have responded overwhelmingly in favour of taking part in this trial. If, as we expect, this switchover trial is successful, this community will be the first in the UK to go fully digital next spring.

  We expect further progress on these matters in the coming months and I will report to the House on material developments as they occur.

  Civil Legal Aid
  The Parliamentary Under-Secretary of State, Department for Constitutional Affairs (Lord Filkin)
  My honourable friend David Lammy, the Parliamentary Under-Secretary of State has made the following Written Ministerial Statement in the other place today.

  With the agreement of the Secretary of State for Constitutional Affairs, the Legal Services Commission (LSC) has today published a consultation paper entitled A new focus for civil legal aid—encouraging early resolution; discouraging unnecessary litigation.

  The main theme of the paper is to refocus the civil legal aid scheme away from contested litigation and to encourage early resolution of disputes. With a limited budget, we need to ensure that legal aid funding is targeted on the most needy cases and in the priority areas. The proposed changes are also required to update the LSC's funding code in the light of new initiatives, for example, changes in handling clinical negligence cases and the new Independent Police Complaints Commission. The changes to family legal aid complement the proposals announced in our Green Paper entitled Parental Separation: Children's Needs and Parents' Responsibilities.

  The main proposals are as follows:

  to restructure the levels of service for private law family cases to encourage the early and amicable resolution of family disputes wherever possible. A new level of service called Family Help will replace the existing three services, and will build upon the work already done through the FAInS (Family Advice and Information Service). This proposal will be piloted through FAInS providers before full implementation;

  to introduce wider powers to refuse funding for divorce (ancillary relief) cases on the grounds that private funding mechanisms may be available, for example, using the value of the assets in dispute;

  to introduce stricter controls over multiple and repeat applications in private law family cases and to limit funding to one certificate per client at any time;

  to remove from scope low priority categories of case, such as legal help for drafting divorce and judicial separation petitions and changes of name;
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  to revise the financial eligibility limits to achieve uniform income limits across all levels of service. The upper limit for qualifying for legal representation in court would be reduced, to the (lower) level for legal help, as adjusted for inflation. However, there should be appropriate safeguards and exemptions in place to ensure the most vulnerable applicants are protected;

  to remove the current rule which disregards £100,000 of equity in an applicant's home in assessing financial eligibility for legal aid. Again, there will be exemptions for the most vulnerable clients;

  in clinical negligence cases and complaints against the police, a requirement that redress is initially pursued through the appropriate complaints procedure before funding for litigation can be considered.

  Copies of the consultation paper have been placed in the Library of both Houses. It is available on the LSC's website: www.legalservices.gov.uk.

  MCSI Inspection of Courts Services: Annual Report 2003–04
  Lord Filkin
  The MCSI Inspection of Courts Services Annual Report for 2003–04 has been laid before Parliament yesterday. This document gives full details of the MCSI's performance for that year. Copies of the report have been placed in the Libraries of both Houses.

  Court Service and Magistrates' Court Service: Annual Reports 2003–04
  Lord Filkin
  The Court Service annual report and accounts for 2003–04 has been laid before Parliament today. This document gives full details of the agency's performance and expenditure for that year. Copies of the report have been placed in the Libraries of both Houses.

  The magistrates' courts' business returns annual report 2003–04 has been laid before Parliament today. Copies of the report have been placed in the Libraries of both Houses.

  Estate Agents
  The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)
  My honourable friend the Parliamentary Under-Secretary of State for Trade and Industry (Gerry Sutcliffe) has made the following Written Ministerial Statement.

  On 23 March, the Government welcomed the publication of the Office of Fair Trading's (OFT's) comprehensive analysis of the estate agency market in England and Wales and the effectiveness of the Estate Agents Act 1979. The Government now propose a package of measures building on and strengthening OFT's proposals. We plan to give enforcers the

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  regulatory tools they need to tackle rogue agents without unnecessarily driving up costs to house sellers, and to provide a cost-effective means by which consumers may win any justified compensation from estate agents through a free independent redress mechanism such as an ombudsman scheme.

  The Government intend to use the Housing Bill presently before Parliament to provide for such a redress mechanism.

  Estate agents have a key role in the housing market. For most people buying a house is the most expensive purchase they ever make. It is vital that this market works well and that consumers are adequately protected against unfair practices. Our proposals will mean that consumers have better information, that enforcement activity is directed on those agents who deliberately flout the law and that industry schemes to provide redress are available within a competitive environment.

  The key elements of the Government's proposals are:

  A consultation document later this year on how the OFT's proposals could be brought into effect and what more could be done to strengthen the regulation of estate agents.

  Taking a power in the Housing Bill to require estate agents to belong to any industry redress scheme approved for the purpose by the Secretary of State. The power would be linked with marketing homes with home information packs (HIPs) and its exercise would be subject to detailed evaluation and consultation once government and industry have drawn up detailed proposals.

  Working with stakeholders to develop methods to evaluate trends in consumer detriment in this market and the case for an industry qualification and national quality standards for estate agents.

  In its report, the OFT concluded that the estate agency market works well in many respects and the market structure is competitive, with businesses able to enter and exit the market with ease. But consumers could make average savings of around £300 on each house sale if they did more to shop around and negotiate fees.

  However, the report highlighted significant consumer dissatisfaction with estate agents' services, ranging from serious uncorrected abuses which the Estate Agents Act should deter (for example, failure to pass on offers or declare a personal interest) to, more commonly, quality of service issues (for example, delays and inadequate communication). Much of estate agency business is conducted orally with relatively little documentation so the process is not transparent and it is consequently difficult for enforcers to detect and substantiate that abuse has occurred in order that it might be dealt with.

  The OFT's broad approach to the problems it has found in the market is:

  to ensure a baseline of protection for consumers by making the present regulatory regime more enforceable. The OFT recommends that estate agents should be required to maintain written
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  records of offers, that these should have to be copied to those making the offer as well as sellers, and that the enforcement agencies are given enhanced powers to access these when there are reasonable grounds to suspect that the Act has been breached. Breach of statutory undertakings given under the Enterprise Act 2002 should become trigger events enabling enforcement action, and the OFT should be able to ban a person who has committed certain offences, not just when he has been convicted of them (as is currently the case);

  to promote quality of service and redress beyond minimum standards by creating incentives for members of the industry to sign up to recognised codes of practice with free systems of redress. The Consumer Code of Practice of the Ombudsman for Estate Agents Company Ltd (OEA) has now completed stage one of the OFT approval process (the code is meeting the OFT's core criteria on paper) and is seeking to complete stage two of the process (it will need to show the code is functioning effectively in practice) in order to obtain OFT approval. However, at present it only covers around 40 per cent of agents. While the OFT hopes that its promotion of the scheme—should it be approved—will boost its membership and profile, the OFT recommends that powers should be obtained to establish a statutory redress mechanism in the event that voluntary methods do not realise the anticipated improvements.

  The OFT's recommendations also cover such matters as making the statutory terms used in estate agency contracts clearer, extending the definition or an estate agent's personal interest in a deal and bringing the definition of estate agency in the Act up to date.

  There have been calls for the introduction of a positive licensing system as a way of improving standards and increasing protection in this market. The OFT specifically addressed the question of whether positive licensing, which could include a fitness test and training or competence requirements, would improve regulation in this market. It rejects it for a number of reasons:

  A requirement for estate agents to obtain licences before they engage in business would not deal with the main identified causes of serious problems in this market. These tend to concern the way existing agents conduct their business and are consequently unlikely to be detected by a screening test in advance of granting a licence.

  Estate agents clearly need to understand their obligations under the legislation but their role is primarily that of salesmen and intermediaries. Evidence from cases where estate agents have been banned suggests that misconduct results from a lack of integrity rather than deficiencies in their knowledge or expertise.

  Positive licensing would adversely affect the benefits consumers receive in terms of downward pressure on prices which results from the ease with which new businesses can enter the market and increase competition. It would also be costly

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  to administer and these costs would ultimately be passed on to consumers in the form of higher fees.

  The OFT's conclusion is that positive licensing would raise costs and inhibit competition without delivering enough improvements to justify this. In its view, a more effectively enforced negative licensing system combined with the OFT's new powers under the Enterprise Act will be effective in dealing with malpractice.

  In considering our response to the OFT's report, the Government have consulted stakeholders and taken into account the representations we have received. We will continue to consult fully as we take this work forward.

  In large measure, the Government agree with the OFT's analysis which identifies a number of clear problems and the case for action to deal with these. We believe that the recommendations potentially offer an effective and proportionate basis for tackling the problems identified in this sector.

  However, we believe that it may be necessary to go beyond the OFT's proposals in tackling consumer detriment in this market. In particular we wish to take further views on the question of enforcement and to see what can be done to build on the OFT's initial analysis. It is clear that amendments to the legislation are necessary to improve protection in this area. The Government are therefore proposing to consult later this year on a package of measures which will bring about real improvements in this sector. Our proposals will cover:

  Making estate agents' dealings with consumers more transparent by requiring them to copy to buyers the written offers they have passed on to sellers and to keep clear and comprehensive records of each property transaction. This will give consumers more confidence that they are being treated fairly.

  Giving the OFT and local trading standards departments the comprehensive armoury of regulatory tools they need to investigate consumer complaints properly, address unfair practices and drive the rogues out of the market. We will look at whether they should have powers to demand the on-site production of administration records, files and copies of correspondence when they have reasonable grounds to suspect estate agents have not complied with the provisions of the Estate Agents Act.

  Allowing enforcement action to be taken where specified offences have been committed, regardless of whether the offenders have been successfully prosecuted.

  Widening the range of circumstances in which OFT can consider the fitness of agents and the range of sanctions available to them.

  Widening the circumstances in which estate agents have to disclose their personal interest in property transactions.
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  Modernising the Estate Agents Act so it is relevant to developments in estate agency practices, such as Internet enterprises, and making it clear that consumers are protected.

  Making estate agency contracts more transparent so consumers have a better understanding of their liabilities and are not ambushed by clauses in small print or unclear language.

  Making it easier for the OFT and trading standards officers to addressing flyboarding abuses by requiring agents to identify specific properties on "for sale" boards.

  Encouraging estate agents to improve quality of service by subscribing to and developing codes of practice that will meet the standards required to obtain OFT approval.

  In addition, an OFT consumer information campaign will alert consumers to how they can get best value for their money by shopping around, negotiating fees and checking whether agents subscribe to consumer codes of practice, such as the OEA's code of practice.

  In the consultation document, we will also raise whether there are other ways going beyond the OFT's recommendations in which enforcement could be improved, for example whether some of the OFT's powers could be delegated to local authorities, whether the OFT's internal procedures for dealing with cases involving estate agents can be streamlined, and what could be done to improve communications between the OEA, the OFT and other relevant bodies to facilitate enforcement action being taken when there are serious complaints about estate agents. And we will work with the OFT and trading standards to ensure that the best use is made of their new enforcement powers. Updating the regulatory system on its own will not be sufficient to tackle unscrupulous behaviour unless it is effectively and speedily enforced and problems in this sector are prioritized and the necessary resources allocated to them. We are confident that the OFT and local trading standards offices will rise to this challenge but we will want to work with them so that consumers benefit from real improvements in behaviour in this sector.

  The Government have noted calls for positive licensing of estate agents but we agree with OFT's analysis that this is not justified. We believe that stakeholders have underestimated the potential impact of the OFT's recommendations as an overall package for addressing mischief in this sector. These recommendations can address the most serious problems without imposing unnecessary costs on businesses or inhibiting competition (both of which would result in higher fees). But we are also committed to going beyond the OFT's proposals, for example in making it possible to require estate agents to belong to an industry redress system.

  The Government agree that access to free, independent redress is important in the estate agency sector and offers a proportionate means of dealing with consumer complaints about quality of service issues. The OEA is currently seeking approval for its

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  consumer code of practice from the OFT which would enable member agencies to demonstrate a clear commitment to higher standards.

  The Government are concerned, however, that by itself this would leave many consumers unable to obtain redress without resort to the courts. Housing markets are local so a seller may not have the option of engaging an estate agent who subscribes to a redress scheme. A buyer who wants a particular property may also have no choice as he will have to deal with the estate agent or agents selected by the seller.

  The Government are also conscious that with the introduction from 2007 of HIPs as provided in the Housing Bill estate agents may well play an increasingly pivotal role in housing transactions. On the other hand, the Government are concerned that any redress scheme should not impose an unnecessary burden on the industry or significantly increase barriers to entry, neither of which would be in consumers' interests. Proposals for a redress scheme need to be reconciled with the fact that there are no positive licensing arrangements for estate agents.

  The Government also accept that there are advantages in redress arrangements being run by the industry rather than the state. The Government believe that a way of reconciling these different considerations is for Parliament to provide a power to require estate agents to belong to any redress scheme approved for that purpose by the Secretary of State. Under the proposed arrangements, enforcement would fall under the present statutory arrangements in the Estate Agents Act: that is, that Act would apply to breach of the duty to belong to the scheme as it currently applies to a person who has engaged in an undesirable practice under the Act, so that enforcement action, including prohibition from acting as an estate agent, could be taken against any estate agent who failed to comply with the duty. The Government consider that the Housing Bill represents an opportunity to deal with this matter and propose to bring forward amendments to the Bill in Committee in another place to provide for such arrangements. In recognition of the fact that this is a new proposal on which the Government have yet to consult, we would not propose to exercise the power until it was clear what industry scheme or schemes would seek recognition, what arrangements they would have for providing redress including the fees they would charge estate agents, consultation had been carried out on the detailed arrangements and a full regulatory impact assessment had been done. Subject to those considerations, the Government hope that the arrangements will be brought into effect before the introduction of HIPs in 2007.

  We encourage those in the industry who wish to do so to subscribe to more wide-ranging codes of practice and to seek approval under the OFT's consumer codes approval scheme.

  Turning to other steps the Government intend to take in respect of this market, we want to improve the evidence base so as to gain a better picture of just how much consumer detriment there is in this market and
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  how much our proposals improve it. We plan to invite the main stakeholders to join us in trying to devise a methodology for this. Such a better evidence base might establish the need to take further steps in future.

  We also plan to work with stakeholders on the scope for devising and promoting a recognised qualification for estate agents. We see benefit in this as something that, if properly done, could provide a career incentive to raise standards. We also note that the British Standards Institute, the UK national standards body, is considering developing a service quality standard and associated Kitemark for the provision of residential estate agency services and we shall follow with interest progress on this.

  Consumers deserve a better deal from estate agents than, as the OFT's report shows, in many cases they have got. The Government's proposals will go a long way to providing consumers in this vital market with a much better deal.

  Regional Development Agencies: Annual Reports and Accounts 2003–04
  Lord Sainsbury of Turville
  My honourable friend the Minister for the Industry and the Regions (Jacqui Smith) has made the following Written Ministerial Statement.

  I have today laid before Parliament the annual reports and accounts for 2003–04 for the eight regional development agencies (RDAs) outside London. Copies have been placed in the House Library. The Government welcome the contribution that the RDAs have made during this year to driving forward economic development in their respective regions.

  Also published today are the RDAs' reported tier 3 outputs for 2003–04. These results are evidence that the RDAs continue to play a valuable role in improving the economic performance of the English regions and, through working with their partners, the RDAs are making a real difference to the individual regional economies concerned. The figures cover the creation and safeguarding of jobs, the amount of brownfield land brought back into use, the number of businesses added to the regional economies, the number of learning opportunities created and the amount of private sector investment attracted benefiting deprived areas, all as a result of RDA activity.

  Press releases on the tier 3 outputs have been issued in each region. Copies of the output results have been placed in the House Library, and are available on the DTI website at www.dti.gov.uk/rda/info.

  Regulatory Impact Assessments
  Lord Bassam of Brighton
  An updated measurement of the level of compliance with the regulatory impact assessment process is today being placed on the website of the Cabinet Office Regulatory Impact Unit.
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  An exercise in June 2004 to establish a snapshot of the level of compliance, based on consultations carried out in the 12 weeks to 16 June 2004, showed a compliance rate of 96 per cent. We will continue to keep this under regular review and will report back to Parliament as appropriate.

  Central Office of Information: Annual Report and Accounts 2003–04
  Lord Bassam of Brighton
  Copies of the Central Office of Information's 2003–04 annual report and accounts have today been laid before Parliament, and copies have placed in the Library.

  Parliamentary Commissioner for Administration
  Lord Bassam of Brighton
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster has today announced in response to a request from the Parliamentary Commissioner for Administration (the Ombudsman) that he has agreed to extend her jurisdiction to include the role of the Government Actuary's Department in relation to the prudential regulation of insurers prior to this function being transferred to the Financial Services Authority in April 2001. This will enable the Ombudsman to conduct a full investigation into Equitable Life. The amendment to the legislation to make this change will be made as soon as possible.