Written Statement of 18 March 2004

TRANSPORT

  Road Haulage Modernisation Fund
  The Parliamentary Under-Secretary of State for Transport (Mr. David Jamieson)
  On Wednesday 17 March my right hon. Friend the Chancellor of the Exchequer announced that the Department for Transport would be allocating resources to allow the more worthwhile road haulage modernisation fund (RHMF) projects to continue.

  I am pleased to announce today that the Department will be allocating a budget of £3 million in 2004–05 so that more of the haulage industry can benefit from projects to help them apply the most up to date and efficient practices. The budget will also allow the completion of some projects started during the current financial year.

  The list of projects includes:

  (a) A further phase of the Driver Training programme to promote Safe and Fuel Efficient Driving (SAFED).

  (b) A further phase of the Fuel Economy Advisor programme to encourage more fuel efficient operations, using regional seminars and site specific advice.

  (c) A further phase of training using the truck driver simulator—more drivers will benefit from simulator training followed by a study to understand better the medium term benefits of simulator training.

  (d) A further phase of the Respect for People project—to consolidate industry take-up of this project, which spreads best employment practice by encouraging the use of key performance indicators so that operators can benchmark their performance against the best companies.

  (e) The development of a careers website—to raise the industry's profile and draw attention to its opportunities.

  In addition, the Department will provide funding to complete the training of 1,200 existing candidates for licence acquisition, with over half of these being funded through to achievement of their Logistics Skills Award. We are also considering proposals made through the Road Haulage Forum to fund some research projects to help understand recruitment and training needs and how they can be met.

  This programme reflects the Government's commitment to help the industry to help itself. I look forward to discussing this programme with industry stakeholders at the next meeting of the Road Haulage Forum.

NORTHERN IRELAND

  Northern Ireland Housing Executive
  The Minister of State, Northern Ireland Office (Mr. John Spellar)
  The accounts of the Northern Ireland Housing Executive (NIA 8/03 1 for the year ended 31 26WS
  March 2003 incorporating the Reports of the Local Government Auditor and the Comptroller and Auditor General thereon will be laid before the NI Assembly on Thursday 18 March 2004.

  Copies of the Northern Ireland Assembly Paper have been placed in the House of Commons Library at Westminster and in the NI Assembly Library at Stormont.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Fisheries
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Ben Bradshaw)
  From 1 January 1999 all British registered fishing vessels over 10m in length and catching more than 2 tonnes of quota stocks have had to demonstrate an economic link with fisheries dependent communities in the United Kingdom. This link can be demonstrated in a number of ways—for example, by vessels landing at least 50 per cent. by weight of their quota catch into the UK or by employing a crew of whom at least 50 per cent. are normally resident in a UK coastal area.

  In 2002, 1,362 vessels caught more than 2 tonnes of quota stocks and in each case achieved a satisfactory economic link, primarily through landings into the UK.

  The arrangements have also resulted in UK registered but foreign-owned vessels continuing to land and incur expenditure at UK ports or making quota available for re-distribution to the inshore fleet. Compared with 1998, benefits have included:
  a 40 per cent. increase in the volume of quota stocks landed into the UK by foreign owned UK registered vessels. This figure is proportionally higher when viewed against cuts in TACs since 1998;
  a significant increase in the number of landings into the UK by Anglo-Spanish vessels, resulting in additional expenditure at our ports of some £3 million; and
  the provision of almost 500 tonnes of quota for redistribution to our inshore fleet, notably nephrops, North Sea sole and North Sea cod.

  A full report by the fisheries departments in the United Kingdom on the operation of the economic link measures in 2002 and their impact has been placed in the Library of the House.

WORK AND PENSIONS

  Pension Protection Fund
  The Minister for Pensions (Malcolm Wicks)
  Improving member protection is a Government priority. As outlined in the Pensions Bill, we intend to introduce the new pension protection fund, which will enhance protection for pension scheme members and improve confidence in pension provision.

  It will protect members of defined benefit and hybrid schemes by paying compensation should their employer become unable to meet their pension obligations following insolvency.

  Our intention, subject to parliamentary approval, is that we protect as many individuals as we can, from as early a date as possible. Therefore, although we have a

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  challenging timetable, our plans are to have the organisation up and running in April 2005. In order to do this we need to carry out essential activities, which will require some expenditure in advance of the legislation achieving Royal Assent.

  Parliamentary approval for additional resources of £450,000 for this new service will be sought in a supplementary estimate for the Department for Work and Pensions. Pending that approval, this urgent expenditure will be met by a repayable cash advance from the contingencies fund.

  Housing Benefit
  The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond)
  On behalf of my right hon. Friend the Secretary of State for Work and Pensions, I am announcing the publication of performance statistics for local authority administration of housing benefit and council tax benefit (HB and CTB) for the third quarter of 2003–04. A copy of the quarterly statistics for all local authorities in Great Britain has been placed in the Library and has been published on the Department for Work and Pensions website at http://www.dwp.gov.uk/asd/asdl/hb_ctb/performance.asp

  Publishing these statistics is part of our strategy for reforming housing benefit and for ensuring that local authorities are accountable for their performance in administration of housing benefit and council tax benefit.

  Housing benefit and council tax benefit performance statistics show that in the third quarter of 2003–04 for those authorities that submitted data:
  155 authorities reported meeting the 36-day standard of processing new claims, compared with 134 authorities in the third quarter of 2002–03;
  the average reported number of days to process new claims reduced from 53 days in the third quarter of 2002–03 to 47 days in the third quarter of 2003–04;
  175 authorities reported the standard of processing changes in circumstances, on average within nine days, compared to 166 in the third quarter of 2002–03.

  The statistics are un-audited and are provided quarterly by local authorities to my Department.
  The audited Best Value performance information for English local authorities for 2002–03 was published by my right hon. Friend the Deputy Prime Minister on 18 December 2003 on the best value performance indicators website at: http://www.bvpi.gov.uk/home.asp.

  A copy is available in the Library.

  The most recent corresponding data for local authorities in Wales are also for 2002–03. These are published on the Audit Commission website at: http://www.lgdu-wales.gov.uldeng/Project.asp?id=SX99A1-A77F4BA8

  A paper copy of the relevant extract from this site is available in the Library.

  The most recent corresponding data for local authorities in Scotland are also for 2002–03 and are in the Accounts Commission publication "Performance Indicators 2002/2003: Benefits, Finance and Corporate Issues" a copy of which is available in the Library.

DEFENCE

  Armed Forces Personnel Administration Agency
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  The key targets have been set for the chief executive of the Armed Forces Personnel Administration Agency (AFPAA) for the financial year 2004–05. The targets build upon progress made by the agency since it formed on 1 April 1997 and reflect the high level of service delivery required for pay, pensions and allowances, and a change programme to deliver new harmonised joint personnel administration for the Armed Forces.To Deliver Pay
  To make 99.9 per cent. of all pay payments by the due date (excluding late payments caused by events determined to be outside the control of the Agency).
  To keep the monthly error rate of accuracy for the volume of payments within 0.1 per cent.

  To Deliver Pension Services
  To make 99 per cent of all pension payments (including new awards) by the due date (excluding late payments caused by events determined to be outside the control of the Agency).
  To keep the monthly error rate of accuracy for the volume of payments within 0.1 per cent.

  To Support the Delivery of Joint Personnel Administration Programme
  Subject to Main Gate approval, Joint Personnel Administration Partnering Agreement to be signed, by 30 September 2004 for the Manufacture, Roll Out and Delivery.
  To commence the Roll Out of Joint Personnel Administration Core System for the Royal Air Force, Royal Navy and Army by October 2005, May 2006 and October 2006 respectively.

  To transform the Agency to Deliver the full Potential of the Joint Personnel Administration Environment
  To deliver Joint Personnel Administration Centre capability through six stages, commencing, June 2004 Stage 1 and March 2005 Stage 2.
  To deliver 100 per cent. of Key critical path milestones in Agency Transition Plan.

  To deliver a cost effective change programme in accordance with departmental priorities
  To deliver 96 per cent. of major change to ensure individual development Projects are delivered to specification and schedule.
  To deliver 96 per cent. of all minor change in accordance with Joint Change Management Team plans agreed by partner and customer.

  To Develop targets for implementation in 2005–06 that will measure the delivery of Pay. Pensions and Personnel Services against Service Level Agreements
  To achieve the agreed service levels of all Performance Assessment Indicators (levels 4 and 5 of current contract Schedule 2) not already included in Key Targets 1 and 2.

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  To meet approved efficiency targets for the delivery of core services
  To reduce the unit cost by 6 per cent. in 2004–05 which will contribute to a 12 per cent. reduction over a 4-year period from 2002–03 for the delivery of core pay and personnel administration.

SOLICITOR-GENERAL

  Crown Prosecutors
  The Solicitor-General (Ms Harriet Harman)
  My right hon. Friend the Attorney-General has made the following ministerial statement."I wish to announce the start of a review of the Code for Crown Prosecutors following the recent developments in prosecutors' powers. Section 10 of the Prosecution of Offences Act 1985 requires the Director of Public Prosecutions to issue a Code for Crown Prosecutors in order to give guidance on the general principles to be applied in prosecutorial decision making. It enables casework decisions to be made fairly, consistently and independently.
  The Code is an important public document, which allows everyone to see and understand the basis upon which prosecution decisions are made. The Code is kept under continual review to ensure that its principles remain appropriate. The current edition of the Code was published in October 2000, which involved an extensive internal, external and public consultation exercise.
  Following the public consultation process last time, every aspect of the Code was reconsidered and the basic principles were acknowledged as being sound. Accordingly, this review will not extend to any reconsideration of the basic two-test principle of prosecuting on the basis of ensuring that the evidence provides a realistic prospect of conviction and that it is in the public interest to prosecute the case.
  This review will therefore be limited in scope to the implications of a number of key recent development, which have the potential to impact on decisions made within the framework of the Code. The most significant of these is the charging initiative under which prosecutors will assume responsibility from the police for determining appropriate charges to bring against alleged offenders, introduced by the Criminal Justice Act 2003. There are also other significant changes to be considered, such as conditional cautioning.
  The Crown Prosecution Service, with appropriate consultation, is therefore to review the Code for Crown Prosecutors to take account of these recent developments. The review team has now been established and will be writing to organisations and individuals with an interest in the Code, asking for comments on the particular areas under consideration."
  I welcome this review and will be taking a close interest in its progress.

HOME DEPARTMENT

  Comprehensive Review of Parole and Lifer Processes
  The Parliamentary Under-Secretary of State for the Home Department (Paul Goggins)
  The right hon. Member for Brent, South, (Mr. Boateng), when Prisons Minister, announced the Comprehensive Review of Parole and Lifer Processes on 11 February 2000. Its remit was to examine the parole and lifer systems, identify the key issues to be faced over the next five years and recommend appropriate changes to improve the efficiency and effectiveness of the relevant procedures. The review also included a "Better Quality Services"30WS
  review and the first quinquennial review of the Parole Board since it became an Executive Non-Departmental Public Body in 1996.

  The review made 118 recommendations relating to a range of process and organisational improvements, which included: reducing the Discretionary Conditional Release (Parole) review timetable; Improving the efficiency of the mandatory lifer review process; Changing lifer oral hearing procedures to improve efficiency and quality of decision-making; Improving dossier content quality and reducing duplication and waste; Clarification of roles and possible efficiencies in decision making; Organisation of the Parole Board; some cross-cutting issues, including information for victims; Improving Secretary of State Directions for the release of determinate sentence prisoners.

  Significant achievements have been made on a number of review recommendations. For example:

  Lifer cases and oral hearings
  A new scheme for the preparation and submission of mandatory lifer dossiers has considerably speeded up the review process. A new key performance target for lifer dossier production, requiring 80 per cent. of dossiers to be sent to the Parole Board on target, is now being achieved. Oral hearings to review the recall of extended sentence prisoners have been successfully introduced.
  The Parole Board has developed a system for appraising judicial members of the Board, who currently chair most of the Board's oral hearings.
  Recalls
  New procedures to ensure timely processing of recall requests made by the Probation Service have been successfully introduced. New arrangements for handling representations against recall have been implemented and which provide for a greater input from the probation service. Furthermore, the Secretary of State has issued new Directions to the Board on considering of recalls and their representations against recall, which has clarified the Board's role and the basis on which it is asked to take decisions and make recommendations. The Directions are also now more in line with the Probation Service National Standards on licence enforcement and reflect that the aim of licence enforcement should be not only to reduce the risk of further offending, but also to make clear that the licence period is an integral part of the sentence and compliance with licence conditions is an important part of licence supervision.
  Deportees
  Improving the operational and working practices between the Prison Service and IND, which has resulted in a sharp increase in the number of parole notifications issued on target.
  Parole Board Organisation
  A Review of corporate governance, resulting in tighter terms of reference for management committees. The Board also achieved IiP status and has recently achieved re-accreditation. Members and staff development has become a greater priority for the Board, with systematic training needs analysis and evaluation mechanisms adopted. The Board is also in the process of developing a whole system approach with the Prison Service to implement change and has improved its focus upon communication, both internal and external.
  The Parole Process
  The Review provided an opportunity to raise the profile of the parole process which was achieved via the 42 area committees of the Criminal Justice Strategy Committees and the National Criminal Justice Consultative Council. A series of Parole Clerk Fora have been introduced to provide for training and topical issues to be discussed. This has given

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  parole clerks a much-needed voice to highlight areas of "best practice" and these suggestions are being taken forward in order to further improve parole performance. The Review has also led to Victim Personal Statements taken by the police at the time of the offence being included, where available, in parole dossiers. Victims are also generally more informed about the parole process.

  Of the 118 recommendations, only 18 remain to be completed. The Review is being project managed by the Early Release and Recall Section of the Sentencing Policy and Penalties Unit of the Home Office, working in conjunction with the Probation Service, Prison Service, Immigration and Nationality Directorate and the Parole Board. Their progress is being monitored by a Programme Board (which is chaired by the Head of the Sentencing Policy and Penalties Unit), in which all the relevant criminal justice agencies are represented. I have decided that the time is right formally to draw the review to a close, although the work on the outstanding recommendations will continue and I will receive regular reports on its progress.

  As a part of the Review, the Secretary of State's Directions to the Parole Board concerning the release of determinate sentence prisoners have been reviewed and a revised copy of these Directions has been served upon the Parole Board today. The purpose of the Directions is to structure the Board's discretion and require it to have regard to risk. The balance of the Directions is between public protection and the rehabilitative benefits of early release.

  In reviewing the existing Directions, a number of considerations were taken into account.

  We were concerned that the voice of the victim, when considering whether or not a determinate sentence prisoner is suitable for early release on parole, needed to be heard. The Victim's Charter and Victim Personal Statements have been in use for some time now, with the latter being a useful vehicle for victims to state how they have been affected by the offence. We were keen to build on this by requiring the Board to consider the impact of the offence upon the victim or the victim's family when assessing suitability for early release on parole.

  The existing Directions make no reference to previous record (save in the case of violent and sexual offenders and then only to previous offences of three similar nature). Previous offending (and previous custodial penalties) is the most reliable predictor of future offending, and we were concerned that the new Directions should recognise this.

  The existing Directions rightly draw attention to the relevance of previous breaches of trust. However, they fail to include the prisoner's likely compliance with the conditions of his licence, taking into account where there have been breaches of trust in the past and during the course of his present sentence. This omission has been rectified.

  The new Directions require the Parole Board to take account of an actuarial risk predictor tool, where such a tool is available.

  In conclusion, the new Directions provide a sharper focus on risk assessment and, for the first time, formally recognises the role of victims in the parole process. They will come into force on 1 May 2004.

  Copies of the Directions are available in the House Library.

TRADE AND INDUSTRY

  Equal Pay
  The Minister for Industry and the Regions (Jacqui Smith)
  I have today published a consultation document on proposals to streamline equal value tribunal cases. Equal pay cases can be notoriously slow and complex, particularly the large-scale cases concerning questions of whether jobs are of equal value. Our proposals to speed up and simplify these cases form part of a package of measures to improve the way in which the Equal Pay Act 1970 works in practice. For example, last year we introduced the Equal Pay Questionnaire and lengthened the time limits for bringing cases and for making arrears payments.

  The overall aim of our new proposals is to make the tribunal process work as effectively as possible and to tackle the lengthy delays that can occur in the more complex cases. Key features include: providing the Employment Tribunal Presidents of England and Wales, and of Scotland with the power to appoint tribunals with a specialist knowledge of equal value cases; promoting firmer case management, for example, through providing standard directions to ensure early exchange of information; streamlining complex rules of procedure; and ensuring more effective use of independent experts. The new provisions dovetail with the proposed new Employment Tribunal Regulations and Rules of Procedure. The intention is that, subject to Parliamentary approval, these measures should come into effect on 1 October 2004.

  The consultation document will be placed on the DTI and Women and Equality Unit websites so that it is available to the wider public. The consultation period will run for 12 weeks, with a closing date for comments of 10 June 2004. Copies of the consultation document have been placed in the Libraries of both Houses.

  Taxis/Private Hire Vehicles
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  We welcomed the Office of Fair Trading (OFT) report that was published on 11 November. It provides a useful analysis of the market impact of taxi regulations. The OFT made a number of recommendations to Government, aimed at improving services for consumers. The Government is committed to delivering better transport services and has carefully considered OFT's contribution to the debate. Taxis and private hire vehicles (PHVs) have an important role to play in the provision of public transport, especially when buses or trains are not available. As well as providing the connecting first or last trips of a journey, making it easier to use public transport, they can provide people in the lowest income groups with access to vital services and enhanced quality of life.

  We strongly support the OFT's role in conducting analyses of this kind. They are useful in considering the economic effects of Government regulations.

  That is why we have empowered the OFT and other economic regulators under the Enterprise Act 2002 to advise where laws and regulations may create barriers to entry and competition or channel markets in a particular direction, thereby holding back innovation and progress. The Government broadly accepted the conclusions of similar OFT and Competition

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  Commission investigations in to the markets for pharmacies, private dentistry and prescription-only veterinary medicines.

  In considering OFT's recommendations on taxis, the Government have consulted stakeholders and taken into account the many representations received. The Government has also taken into account the reports of the Transport Select Committee.

  I attach below the Government's action plan responding to OFT's recommendations. This action plan relates to England and Wales. Legislation regarding the taxi market is devolved in Scotland and Northern Ireland and they have responded separately.

  Restrictions on the numbers of taxis

  In England and Wales outside London, local authorities (district/borough councils or unitary authorities) have been able to restrict the number of taxi licences that they issue since at least 1847. In practice, some 45 per cent. of authorities do so at present, but the legislation allows them to control numbers only if they are satisfied that there is no significant unmet demand.

  Local authorities with quantity restrictions must be able to justify their policy in the event of an appeal by a taxi licence applicant who has had his application refused on the grounds of quantity controls. The usual method of ascertaining the level of demand is by means of a survey. The legislation does not stipulate any specific frequency for the surveys, but any licensing authority that controlled taxi numbers would want to ensure that its policy was based on up-to-date and sound information.

  The OFT recommended that local authorities should not retain this power because they considered that such restrictions can:

  reduce the availability of taxis

  increase waiting times for consumers

  reduce choice and safety for consumers

  restrict those wanting to set up a taxi business.

  The Government agree that consumers should enjoy the benefits of competition in the taxi market and considers that it is detrimental to those seeking entry to a market if it is restricted. The Government are therefore strongly encouraging all those local authorities who still maintain quantity restrictions to remove restrictions as soon as possible. Restrictions should be retained only if there is a strong justification that removal of the restrictions would lead to significant consumer detriment as a result of local conditions.

  However, the Government received a significant number of representations expressing the view that ultimately local authorities remain best placed to determine local transport needs and to make the decisions about them in the light of local circumstances. The Government believe that local authorities should be given the opportunity to assess their own needs, in the light of the OFT findings, rather than moving to a legislative solution.

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  Nevertheless the Government believe that local authorities should publish and justify their reasons for restricting the number of taxi licences issued. The Government will therefore write shortly to each district/ borough council or unitary authority maintaining quantity restrictions and ask them to review by 31 March 2005 the local case for such restrictions, and at least every three years thereafter, and make their conclusions available to the public.

  The Government intend that the letter will include guidelines on quantity restrictions, including a review of the level of service available to consumers and consumer choice. The guidelines will cover:

  effective surveys to measure demand, including latent demand, for taxi services;

  consultation with:

  all those working in the market;

  consumer and passenger (including disabled) groups; groups which represent those passengers with special needs; the police;

  a wide range of transport stakeholders e.g. rail/bus/coach providers and traffic managers.

  publication of conclusions. This will include an explanation of the particular local circumstances that justify restrictions, what benefits they deliver to consumers and how decisions on numbers have been reached. Authorities will be encouraged to make all the evidence gathered to support the decision-making process available for public scrutiny.

  This is to ensure that decisions to impose restrictions are based upon strong up-to-date evidence of benefits to consumers locally for their retention, and that the decision-making process is transparent and consultative. The Government consider that this would help local authorities with quantity restrictions to justify their policy if they were challenged about refusing to issue a taxi licence in the courts. If restrictions are not shown to be delivering clear benefits to consumers, it is the view of Government that local authorities should remove them.

  The Government will review in association with the OFT the extent of quantity controls in three years' time to monitor progress towards the lifting of controls. If necessary, the Government will then explore further options through the RRO or legislative process if insufficient progress has been made.

  The Local Transport Plan process requires local transport authorities to look holistically at how the transport provision for their area contributes to wider objectives such as economic growth, accessibility and the environment. Taxis and private hire vehicles are an integral part of local transport provision and should be properly taken into account in this process. The Government intends that the next five-year Local Transport Plans, due to be submitted by authorities in 2005, will include justification of any quantity restrictions in the wider local transport context1.
  1Those few authorities that will not be required to produce a Local Transport Plan will still be expected to justify their quantity restriction policy if any of the districts in their area have such restrictions.

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  The Government will also include guidelines on quantity restrictions in its best practice guidance on taxi licensing.

  Maintaining quality in service provision

  The OFT states that there is a strong case for regulating quality and safety both for taxis and PHVs as:
  consumers cannot judge certain standards when getting into a taxi or PHV; and
  taxi services can have a role to play in broader social welfare policy.

  The OFT concludes that quality and safety standards should be maintained and supported by effective enforcement. The Government agree.

  The OFT recognises that local authorities should be able to apply quality and safety regulations to suit their needs. In doing this, local authorities should ensure that any quality and safety specifications set do not go beyond what is required to achieve their policy aim. To help them, OFT recommended that the Department for Transport promote and disseminate local best practice in applying quality and safety regulations.

  The Government agree with OFT that quality standards have an important role to play in securing the safety of the travelling public and ensuring that they are provided with a high level of service. The Government also agree that these decisions should continue to be made by local authorities, but considers that there is scope for more sharing of best practice, particularly in ensuring proportionality.

  The Government will therefore consult local authorities and other stakeholders in order to develop and publish best practice guidance as OFT recommend. The Government intend that this will comprehensively cover licensing issues, including suitable criteria for licensed vehicles, drivers and PHV operators; driver training; safety; security and other topical issues. The draft guidance will also include sections on quantity controls; fares (see below); enforcement; taxi zones; flexible transport services; and a model taxi/PHV policy for the Local Transport Plan process.

  The aim would be to consult on draft guidance later this year, with a view to publication by the end of the year.

  Fares

  The OFT recommends that local authorities should not set fixed or minimum fares. They should only set taxi fare tariffs which represent the maximum that can be charged:

  to protect vulnerable consumers;

  to address a lack of price competition; and

  to allow consumers to negotiate lower fares in certain situations.

  The Government agree that where taxi fares are set by local authorities they should be a maximum. As the OFT notes, this is already the case in England and Wales
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  outside London. The Government agree that the situation in London should be clarified and is therefore grateful that the licensing authority for London has agreed to make clear through secondary measures that fares set in London are a maximum rather than mandatory as soon as it is feasible to do so.

  The Government also note OFT's advice that consumers should be encouraged to negotiate for lower fares, particularly when booking taxi services over the telephone. In promoting more competition in the market, the Government will ask the OFT to advise on guidance as part of the Government's best practice guidance for local authorities (which will also encompass best practice on quality and quantity controls including unmet demand surveys as outlined above). The guidance will make clear that initiatives to promote greater competition should not jeopardise the safety of consumers or drivers, or create enforcement issues. There is scope to encourage some firms to differentiate their services thereby providing a greater range of choice for consumers (for example by providing a "happy hour" of lower cost journeys for, say, pensioners).

  Further issues

  The OFT also commented on several further issues that concern taxi and PHV licensing but which are outside the remit of the report:

  Regulatory Reform Action Plan

  The Government's Regulatory Reform Action Plan published in 2002 contained a number of proposals to use the streamlined order-making procedure in the Regulatory Reform Act 2001 to amend burdensome primary legislation. The plan included four proposals for taxi and PHV legislation in England and Wales outside London, which were subject to Ministerial decision. These were:
  removing the requirement for Secretary of State approval of local authority resolutions to amalgamate taxi zones;
  standardising driver and operator licence duration;
  removing local authority powers to restrict taxi licence numbers in their area; and
  clarifying/simplifying the position on PHV cross border hirings across the borders of different licensing authorities.

  The OFT considered that these proposals represented areas of concern and recommended that they should be addressed. The issue of restrictions of taxi licences is covered earlier in this action plan. The Government are taking forward the repeal of the need for the Secretary of State to approve taxi zone amalgamation resolutions in the regulatory reform order that will repeal various local authority consent regimes. The Government will include the issues of driver and operator licence duration and cross border hirings of PHVs (and taxis) for consultation in the draft best practice guidance.

  Taxi Licensing Zones

  The OFT considers that where taxi licensing areas are divided into more than one zone, greater clarity would be brought to the market if local authorities removed the zones and established a single licensing area. The Government agree and will include a statement to this effect in the draft best practice guidance.

  Cottam Power Station
  The Minister for Energy, E-Commerce and Postal Services (Mr. Stephen Timms)
  I have today granted consent under Section 36 of the Electricity Act 1989 to EDF Energy (Cottam Power) Limited for the construction of flue gas desulphurisation plant at the 2,000 MW coal-fired power station at Cottam in Nottinghamshire. Planning permission for the plant has also been deemed to be granted, subject to 54 planning conditions agreed with the Nottinghamshire County Council and the Bassetlaw District Council.

  The consent is for the final two units with the first two already obtaining consent in August 2002 and which are currently under construction.

EDUCATION AND SKILLS

  Budget Statement
  The Secretary of State for Education and Skills (Mr.Charles Clarke)
  In his Budget statement yesterday, my right hon. Friend the Chancellor of the Exchequer set out measures to ensure stability for education, children's services and skills and the continued progress across the Department's agenda that is crucial to the economic and social well-being of the country.

  Education expenditure in England will grow by an average of 4.4 per cent. across the Spending Review period: that is by 6.0 per cent. in 2005–06; 3.6 per cent. in 2006–07 and 3.5 per cent. in 2007–08. The tables below show the plans for the Department's Expenditure Limit and local authority provision for education and children's social services; and plans for total education spending in England over the Spending Review period.

  £million

  2005–06

  2006–07

  2007–08

  Departmental Expenditure Limit

  31,105

  32,905

  35,153

  Local Authority Formula Spending Share Education

  27,963

  29,863

  31,663

  Children's FSS

  4,016

  4,316

  4,516

  £million

  2005–06

  2006–07

  2007–08

  Total Education Spending (England)

  56,529

  60,122

  63,910

  As a result of this settlement, education spending in the UK will be 5.6 per cent. of GDP in 2007–08, up from 5.4 per cent. in 2004–05.

  In every area, investment will be accompanied by reform.

  Children

  Over 1.6 million children have benefited from free part time nursery education for three and four year olds; and 400,000 children and their families in deprived area have been helped by 524 Sure Start centres.

  As a result of this settlement, the number of children's centres will rise to 1,700 by 2008, covering all 20 per cent. of the country's most disadvantaged wards. We will also announce in due course an expansion of childcare places, family support services, and an
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  expansion of extended schools, which bring together education, health, children's social services and childcare.

  This settlement will provide the funding necessary to address the agenda set out in the "Every Child Matters: The Next Steps", including the establishment of Children's Trusts to develop in each locality integrated services for children and families and improved care and life chances for children in care.

  Schools
  As a result of the Government's class size pledge, 350,000 five, six and seven year olds are no longer in classes of 31 or more. There are around 25,000 more teachers and 80,000 more support staff than in 1997. In 1997, half of all 11 year olds went to secondary school unable to read, write and count well. Now it is a quarter. And the international PIRLS study in March 2003 showed that our 10 year olds are the third best readers in the world. This settlement will enable primary schools and teachers to continue to raise standards of literacy and numeracy supported by workforce reform and the recruitment of more teaching assistants.

  In 1997, just 45.1 per cent. of pupils got five good grades at GCSE. Last year it was 52.9 per cent. And it is rising fastest in our toughest area—pupils in Excellence in Cities areas are improving at more than twice the rate of pupil everywhere else.

  Half of all secondary pupils are now taught in specialist schools—there were just 257 specialist schools in 1997. And they are getting better results—56.7 per cent. of pupils in specialist schools get five good grades at GCSE. This settlement will continue the drive to achieve excellence and to narrow the gaps in attainment between schools and between pupils within individual schools. It will make a reality of our commitment that every school that meets the standard will have the opportunity to gain specialist status; and will allow a continued expansion in the number of academies.

  The resources will also enable us to respond to the recommendations of the Tomlinson report, including ensuring that education equips young people for the world of work.

  Over the spending review period total Departmental capital spending will rise from £3.85 billion in 2004–05 to £6.78 billion in 2007–08. This will ensure that, through our Building Schools for the Future programme, by 2015 every secondary school can be refurbished or rebuilt with world class technology in every school and the best state of the art learning in every classroom.

  Accompanying this new investment, we will develop a new relationship with schools to help deliver personalised learning tailored to the talents and needs of every pupil, underpinned by a strengthened accountability framework, a simplified school improvement process and improved information and data management.

  Higher Education
  Publicly planned funding for higher education has risen dramatically under this government. Expenditure on science and research will have increased in 2005–06 by £1.25 billion a year compared to 2002–03—around 30 per cent. in real terms.

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  The settlement will allow investment in the sector to continue to grow in real terms. It will enable the Government to advance progress towards its target for 50 per cent. participation in higher education and at the same time maintain real terms student funding per head. It will provide the resources needed to deliver the reforms set out in our White Paper "The Future of Higher Education": improving and rewarding excellent teaching; increasing investment in science and research; enabling more people to enter higher education; and supporting those from disadvantaged backgrounds by restoring a grant worth up to £2,700 in 2006, and abolishing up-front tuition fees for all students.

  Lifelong learning

  In December 2003, 255,000 young people were studying Modern Apprenticeships, compared with just 75,800 in 1997. The number of working age people in England with no qualifications in 1985 was 10.5 million. In 2003 it was 4.6 million. Between 2001 and 2002 over 300,000 adults were helped to raise their numeracy and literacy skills.

  The settlement will provide for new measures—through the New Deal for Skills—to tackle the UK's large number of adults with low skills in the workforce. It will offer, in job centres, for the employed and well as unemployed, a one-stop skills service with access to personal skills advisers and training. By 2007 1.5 million adults will have improved their basic skills as part of our longer term aim of ensuring that by 2010 that the
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  number of adults in the workforce who lack NVQ2 or equivalent qualifications is reduced by at least 40 per cent.

  We will take forward the measures set out in our Skills Strategy to meet the needs of employers, employees and individual learners; including a key role for the new Sector Skills Councils.

  Efficiency
  The front-line will al so see resources freed up and cost pressures reduced through efficiency gains worth at least 2.5 per cent. each year over the Spending Review period. These will be delivered through reducing administration costs, reforming procurement and unlocking productivity gains from technology and workforce improvements. For example:
  There will be a 31 per cent. reduction in Department for Education and Skills headquarters staff by 2008–1,460 fewer staff.
  On procurement, we will take a more pro-active role to help schools and colleges achieve savings through collaboration and wider agreements—the recent agreement with Microsoft which reduces the cost of software to schools by £46 million over three years shows what is possible.
  We will work with our partners in children's services, education and training to ensure that resources—people and money—can be used as effectively as possible, for example through reduced bureaucracy and workforce reform.
  The Government's aim is to achieve excellence in standards of education and levels of skills, and to give everyone the opportunity to develop their learning. This settlement provides the necessary resources to support and deliver these objectives.

  Northern Ireland Housing Executive: Accounts 2002–03
  The Lord President of the Council (Baroness Amos)
  My right honourable friend the Minister of State for Northern Ireland has made the following Ministerial Statement.

  The accounts of the Northern Ireland Housing Executive (NIA 8/03) for the year ended 31 March 2003 incorporating the reports of the Local Government Auditor and the Comptroller and Auditor General thereon will be laid before the Northern Ireland Assembly on Thursday 18 March 2004.

  Copies of the Northern Ireland Assembly paper have been placed in the House of Commons Library at Westminster and in the Northern Ireland Assembly Library at Stormont.

  Code for Crown Prosecutors
  The Attorney-General (Lord Goldsmith)
  I wish to announce the start of a review of the code for Crown prosecutors following the recent developments in prosecutors' powers. Section 10 of the Prosecution of Offences Act 1985 requires the Director of Public Prosecutions to issue a code for Crown prosecutors in order to give guidance on the general principles to be applied in prosecutorial decision making. It enables casework decisions to be made fairly, consistently and independently.

  The code is an important public document, which allows everyone to see and understand the basis upon which prosecution decisions are made. The code is kept under continual review to ensure that its principles remain appropriate. The current edition of the code was published in October 2000, which involved an extensive internal, external and public consultation exercise.

  Following the public consultation process last time, every aspect of the code was reconsidered and the basic principles were acknowledged as being sound. Accordingly, this review will not extend to any reconsideration of the basic two-test principle of prosecuting on the basis of ensuring that the evidence provides a realistic prospect of conviction and that it is in the public interest to prosecute the case.

  This review will therefore be limited in scope to the implications of a number of key recent developments, which have the potential to impact on decisions made within the framework of the code. The most significant of these is the charging initiative under which prosecutors will assume responsibility from the police for determining appropriate charges to bring against alleged offenders, introduced by the Criminal Justice Act 2003. There are also other significant changes to be considered, such as conditional cautioning.
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  The Crown Prosecution Service, with appropriate consultation, is therefore to review the code for Crown prosecutors to take account of these recent developments. The review team has now been established and will be writing to organisations and individuals with an interest in the code, asking for comments on the particular areas under consideration.

  I welcome this review and will be taking a close interest in its progress.

  Service Personnel Process Review
  The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Bach)
  My honourable friend the Parliamentary Under-Secretary of State for Defence (Mr Ivor Caplin) has made the following Written Ministerial Statement.

  With effect from 1 April 2004 the three single Service personnel agencies will cease to have agency status. This decision came about from the Service personnel process review conducted last year and referred to by my right honourable friend for Member for East Kilhride on 17 July 2002 (Official Report, col. 277–78W).

  The review also identified that the career management and manpower planning work of the three Service manning agencies did not wholly suit agency status, because they were primarily support and enabling functions rather than concerned with the provision of a clear and discreet deliverable service. I therefore concluded that agency status for the agencies (Naval Manning, Army Personnel and. RAF Personnel Management Agency) should cease.

  I am pleased to tell the House that a considerable amount of work continues in many other areas. These include further reviews of tri-service recruiting and welfare and many of the review recommendations have been swept into a service personnel plan, parallel with and linked to the equipment programme and within the framework of the defence White Paper published last December.

  I intend to report on further progress to the House later in the year.

  Cottam Flue Gas Desulphurisation Plant
  The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)
  My honourable friend the Minister for Energy, E-commerce and Postal Services (Stephen Timms) has made the following Written Ministerial Statement.

  I have today granted consent under Section 36 of the Electricity Act 1989 to EDF Energy (Cottam Power) Limited for the construction of flue gas desulphurisation plant at the 2,000 MW coal-fired power station at Cottam in Nottinghamshire. Planning permission for the plant has also been deemed to be granted, subject to 54 planning conditions agreed with the Nottinghamshire County Council and Bassetlaw District Council.
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  The consent is for the final two units with the first two having already obtained consent in August 2002 and being currently under construction.

  Equal Pay
  Lord Sainsbury of Turville
  My honourable friend the Deputy Minister for Women and Equality (Jacqui Smith) has made the following Written Ministerial Statement.

  I have today published a consultation document on proposals to streamline equal value tribunal cases. Equal pay cases can be notoriously slow and complex, particularly the large-scale cases concerning questions of whether jobs are of equal value. Our proposals to speed up and simplify these cases form part of a package of measures to improve the way the Equal Pay Act 1970 works in practice. For example, last year we introduced the equal pay questionnaire and lengthened the time limits for bringing cases and for making arrears payments.
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  The overall aim of our new proposals is to make the tribunal process work as effectively as possible and to tackle the lengthy delays that can occur in the more complex cases. Key features include: providing the Employment Tribunal presidents of England and Wales, and of Scotland, with the power to appoint tribunals with a specialist knowledge of equal value cases; promoting firmer case management, for example, through providing standard directions to ensure early exchange of information; streamlining complex rules of procedure; and ensuring more effective use of independent experts. The new provisions dovetail with the proposed new Employment Tribunal Regulations and rules of procedure. The intention is that, subject to parliamentary approval, these measures should come into effect on 1 October 2004.

  The consultation document will be placed on the DTI and Women and Equality Unit websites so that it is available to the wider public. The consultation period will run for 12 weeks, with a closing date for comments of 10 June 2004. Copies of the consultation document have been placed in the Libraries of both Houses.