Written Statement of 27 May 2004

HOME DEPARTMENT

  Assets Recovery Agency
  The Parliamentary Under-Secretary of State for the Home Department (Caroline Flint)
  I am pleased to announce that the Assets Recovery Agency's annual report 2003–04 has been laid before Parliament today.

  The Report covers the Agency's first full year of operation in the financial year 2003–04. The agency became operational on 24 February 2003. The report covers an assessment of the Agency's performance against its business plan 2003–04.

  The agency is already making an impact. In its first year of operation it had 62 cases under investigation, with freezing orders, interim receiving orders and tax assessments made at a total value of £14.8 million. Where it has assisted law enforcement agencies in conducting confiscation investigations it has obtained restraint orders with a total value of over £4 million. The agency has also delivered an extensive training programme for financial investigators and successfully implemented a communications strategy to raise awareness of the Proceeds of Crime Act 2002.

  I am also pleased to announce the agency's business plan 2004–05, which is annexed to the annual report. The plan has been prepared by the director of the agency and has been approved by my right hon. Friend the Home Secretary after consultation with my right hon. Friend the Secretary of State for Northern Ireland. The plan focuses on the agency's aims, priorities and targets for the year ahead and sets out how the director intends to exercise her functions in Northern Ireland.

  The establishment of the agency, with extensive powers to investigate and recover criminal assets, demonstrates the Government's commitment to taking the profit out of crime and to ensuring that crime does not pay.

  Offender Management
  The Parliamentary Under-Secretary of State for the Home Department (Paul Goggins)
  The 2004–05 targets for offender management—including agreed key performance indicators for the Prison Service (covering public prisons), targets for contracted prisons and service delivery agreement targets for the Probation Service—have been published together today in the leaflet "Targets for Offender Management, 2004–05". Copies have been placed in the Library.

  Public Charitable Collections
  The Parliamentary Under-Secretary of State for the Home Department (Fiona Mactaggart)
  The Government's consultation paper on proposals for a new local authority licensing scheme, "Public Collections for Charitable,84WS
  Philanthropic and Benevolent Purposes", was published on 9 September 2003, with a closing date for responses of 2 December 2003. Over 250 responses were received. In addition, officials from my Department hosted a series of 12 consultation events across the English Regions and in Wales. I am extremely grateful to all those who contributed. A summary of the responses received has been placed in the Library and will also be available on the Home Office website at: www.homeoffice.gov.uk/comrace/active/charitylaw/index.html.

  The consultation exposed a wide range of views on the issues involved. Although there was a clear consensus on some of these issues, on others key stakeholders held different and sometimes opposing views. The Government do not wish to impose solutions and the proposals I am announcing today are accordingly intended as a basis for further discussion. Provisions giving effect to these proposals will be included in the draft Charities Bill which was announced in the Queen's Speech, and the Government will take account of comments on the draft Bill as well as any recommendations of the joint Committee before taking a final decision on the provisions to be included in the Bill when it is formally introduced.

  Against this background the Government make the following proposals.

  First, we propose that the scope of the licensing scheme should be extended to cover face-to-face as well as other forms of public collection: 222 respondents commented on this proposal and a clear majority (92 per cent.) agreed that face-to-face fundraising should be brought within the scope of the new scheme.

  Secondly, we propose to extend the definition of a public place within which public charitable collections must be authorised to cover areas such as station concourses and supermarket forecourts. This proposal was also widely supported. As explained in the consultation document, part III of the 1992 Act would have covered collections in stations, airports, shopping precincts and other similar property, and we accordingly propose to implement the relevant provisions as part of the new scheme. There will be a new provision to ensure that organisations like the National Trust are able to organise public collections on their own land without needing to seek permission from the local authority.

  Thirdly, we propose that the granting of a permit to collect would be subject to a two stage test. The first stage would require the organisation which wishes to collect to satisfy the appropriate local authority that they are fit to collect. Fitness would focus on whether the applicant had been convicted of a relevant offence; whether the person promoting the collection was duly authorised to do so; whether the applicant had taken steps to be satisfied that collectors were fit and proper persons; and whether appropriate steps had been taken to safeguard badges and other certificates of authority. The ratio of the costs of undertaking the collection to the total funds raised would not be a matter for the local authority to take into consideration. If satisfied, the authority would issue a certificate of fitness which would be valid for up to five years. In the case of a house to house collection, an organisation would have to obtain only a certificate of fitness and not satisfy the second

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  stage of the test. The organisation would, however, be under an obligation to notify the local authority of their intention to collect in the area. The reason for distinguishing between house to house and street collections in this way is that it is believed that house to house collections present fewer capacity problems (i.e. that the collection would inconvenience members of the public or that other collections had already been organised to take place in the same locations or at the same times. The second stage of the test would be to determine whether there was capacity in the area. If there was such capacity, the local authority would issue a permit to collect. No charge would be made for the issue of either the certificate or the permit.

  Fourthly, we propose to discontinue exemption orders which are issued by the Home Office to large organisations conducting house to house collections in a significant area of England and Wales. Instead a "lead authority" concept would be introduced which would apply to both street and house to house collections. Organisations which propose to collect cash or direct debits in more than one local authority area would be required to apply to a lead authority for a certificate of fitness. In order to prevent organisations from making multiple applications for such a certificate to more than one authority, an organisation would be required to apply for a certificate to a designated local authority. In the case of a registered charity, it would be the authority in whose area the charity's address is. The address would be the one which appears on the Charity Commission's register. For all other organisations the application should be made to the authority within whose boundaries the promoter's principal address is. The holder of a certificate of fitness would still have to apply to each local authority for permission to undertake a street collection, but the local authority would be able to refuse permission only on grounds of capacity. In the case of house to house collections, organisations which have a certificate of fitness would be obliged to notify the relevant local authorities of their intention to collect. Although the lead authority proposals in the consultation paper were not widely supported, there is support for the principle that decisions on fitness should be separated from those on capacity, and we believe that the consultation paper proposals have been modified to meet most of the objections raised.

  Fifthly, we propose that all collections, in a public place and by means of visits door to door, which are local and short-term in nature should not come within the licensing scheme, as is already the case for house to house collections of that nature under the legislation now in force. The organisers of any local, short-term collections would continue to be required to give advance notification, but the notification would be given to the local authority rather than, as is required at present, to the police.

  Sixthly, in a significant measure of deregulation we propose that house to house collections of goods should also be completely removed from the scope of the licensing scheme; 84 per cent. of the 189 respondents who commented thought it was sensible to make separate arrangements for the collection of goods. Respondents argued that the collection of goods from house to house does not raise any significant issues of capacity or inconvenience to householders, and that the risk in terms of fraud and loss is significantly smaller
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  than for cash collections. Organisers of house to house goods collections would accordingly be under an obligation only to notify the local authority of their intention to collect.

  Seventhly, we propose that responsibility for authorising public charitable collections in London should pass from the Metropolitan Police to the London boroughs, except in the City of London where responsibility already rests with the Common Council. The 129 respondents who commented were almost evenly split on this: 47 per cent. thought that responsibility should be transferred to the boroughs, as Parliament agreed in 1992, and 48 per cent. thought it should stay with the police. London is the only place in England and Wales where responsibility for licensing public charitable collections rests with the police. The Government does not believe this is an appropriate function for the police service to take on, but we will discuss further with key stakeholders in London whether any arrangements are needed over and above the lead authority proposals described above for collections which take place in more than one London borough (including the City).

  Eighthly, the right of appeal against a local authority decision to refuse either a certificate of fitness or a permit to collect will be to the magistrates' courts as proposed in 1992 rather than under the legislation now in force to my right hon. Friend the Home Secretary. It is not appropriate for decisions of this kind to be taken by central Government.

  Finally, we propose to set up a group to include the local government associations, the police service, charities, charity sector umbrella organisations and the Charity Commission to oversee the preparation of regulations and guidance and ensure effective implementation and delivery of the proposed arrangements.

  These proposals constitute, we believe, a balanced package which seeks to minimise the burdens on local authorities and charities whilst ensuring effective regulation. The overall impact in public expenditure terms is expected to be neutral. However, in the case of the London local authorities, funding would be made available to cover the new duties which would fall to them under these proposals. Similarly, the transfer of the responsibility for hearing appeals to the magistrates' court would call for a transfer of funding to the Department for Constitutional Affairs. A detailed regulatory impact assessment based on information provided through the consultation period has also been prepared. The regulatory impact assessment forms part of Command Paper Cm 6199—Draft Charities Bill. A copy has been placed in the Library and will be available on the Home Office website at www.homeoffice.gov.uk/comrace/active/charitylaw/index.html.

  The Government's underlying aim is to increase public confidence in charities and the charity sector by putting in place an up to date and effective regulatory framework. With these changes, the Government believe it should be possible to give effect to the provisions already passed by parliament into law as part III of the Charities Act 1992. The draft Bill will

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  accordingly proceed by way of amendment to the 1992 Act rather than the pre-war legislation still in force which the 1992 Act would have repealed.

  Charities Bill
  The Parliamentary Under-Secretary of State for the Home Department (Fiona Mactaggart)
  The Charities Bill has today been published in draft for pre-legislative scrutiny by a specially constituted joint Committee of both Houses. The remit of the Committee is to consider the draft Bill, and to report to both Houses by the end of September 2004.

  Charities are active in every area of national endeavour, helping to transform people's lives and to build strong communities. They are a strong force for good in society. The Government believe that a vibrant and diverse charitable sector, independent of Government, is essential for the health of our democracy. The Government support the charitable sector in many different ways. One of the most important things we can do for the sector is to create a legal framework which will enable established and new charities to thrive and to achieve their full potential and which will sustain high levels of public confidence in charities through effective regulation.

  The draft Charities Bill will deliver significant benefits both to the public and to the charitable sector itself. For the first time there will be a clear definition of charity containing all the purposes that are, or ought to be, recognised as charitable, with the requirement of public benefit. It introduces a range of law reforms designed to enable charities to be administered more efficiently and to be more effective in their work. It provides for better regulation of public collections by charities. It will put in the public domain an improved range and quality of information about charities and it will introduce improvements to the Charity Commission's objectives, functions and accountability to enable it to be an even more effective regulator.

  Copies of the draft Bill have been placed in the Library and are available from the Stationery Office and from the Home Office website at: www.homeoffice.gov.uk/comrace/active/charitylaw/index.html/

WORK AND PENSIONS

  Pension Service
  The Secretary of State for Work and Pensions (Andrew Smith)
  I am today able to announce the 2004–05 annual performance standards for The Pension Service, an executive agency of the Department for Work and Pensions. The standards I have agreed are set out below.

  Further information on The Pension Service's plans for 2004–05 is contained in the annual business plan that has been published today. Copies have been placed in the Library.
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  The Pension Service in-year standards for 2004–05 are:
  Ensure that 90 per cent. of telephone calls to The Pension Service Centres are answered by Customer Agents and that no more than 1 per cent. of attempted telephone calls receive the engaged tone or message;
  Clear 95 per cent. of State Pension claims in 60 days;
  Achieve a State Pension claims accuracy rate of 98 per cent.
  Achieve a Pension Credit accuracy rate of 94 per cent;
  Issue Winter Fuel Payments for 2004–05 (all automatic payments, and successful claims received before 25 September 2004) by Christmas 2004;
  Deal with State Pension Forecast requests in an average of 20 days;
  Reduce the losses as a result of fraud and error to no more than 4 per cent. of benefit paid;
  85 per cent. of customers to have their entitlements made by Direct Payments;
  Reduce sick absence rates to 8.5 days per capita.

TRADE AND INDUSTRY

  Nuclear Decommissioning Authority
  The Secretary of State for Trade and Industry (Patricia Hewitt)
  The Energy Bill currently before this House will enable radical changes to current arrangements for nuclear clean-up funded by the taxpayer. The Bill provides for the establishment of the Nuclear Decommissioning Authority—the NDA—to deal with the nuclear "legacy" represented by the 20 nuclear sites currently operated by BNFL and the UKAEA and which were developed in the 1940s, 50s and 60s to support Government nuclear research programmes. The aim of the NDA will be to ensure those sites are cleaned-up and decommissioned more safely, securely, and cost-effectively, and in an environmentally-friendly manner. The NDA is to be fully operational from 1 April 2005. The total cost of the programme is some £50 billion over the next century and initially some £2 billion a year. US experience has shown that effective programmes can save of the order of 20 per cent. The Government want to make savings of a similar magnitude through the introduction of competitive practices in the nuclear clean up industry and by better management of nuclear sites. The NDA's headquarters will be in West Cumbria.

  In order to establish the NDA on schedule, my Department proposes to undertake necessary preparatory work. Treasury approval has been given to this. This work relates principally to recruiting—subject to Royal Assent—the NDA Board and other personnel, to activities relating to IT and finance systems, to property searches, and to a definitive salary and benefits survey. My Department considers that making this expenditure prior to Royal Assent will provide a net benefit to the taxpayer, through savings to the public purse to be achieved by the early establishment of the NDA.

  Parliamentary approval for additional resources for this new service will be sought in a Supplementary Estimate for the DTI. Pending that approval urgent expenditure estimated at £500,000 will be met by repayable cash advances from the Contingencies Fund.

DEFENCE

  D-Day (60th Anniversary)
  The Parliamentary Under-Secretary of State for Defence and Minister for Veterans (Mr. Ivor Caplin)
  I am pleased to update the House on the events planned, both in France and in the United Kingdom, to commemorate the 60th Anniversary of D-Day.

  The main events in Normandy on 5 June are the Normandy Veterans Association Parade and Homage to Field Marshal-Montgomery in Colleville-Montgomery; a Service held by the 3rd Parachute Brigade at Bavent-le-Mesnil; a Tree-Planting Ceremony at the Royal Naval and Royal Marine Memorial in Ouistreham organised by the RN/RM Landing Craft Association; the inauguration by HRH the Prince of Wales at the Pegasus Museum of a HORSA Replica Glider; a Parachute Drop by soldiers of 1st Battalion The Parachute Regiment; the inauguration of the British Garden of Remembrance at Caen; a Poppy Drop to The Royal British Legion's chartered vessel the MV Van Gogh; and a symbolic crossing of ships from Portsmouth to Ouistreham. Also travelling with veterans will be the winning school from our nationwide competition who will be collecting experiences from veterans before and after the events.

  On 6 June, there will be a Service at Bayeux Cathedral organised by the Calvados Branch of The Royal British Legion; a Bi-National Ceremony at the Commonwealth War Graves Commission Cemetery in Bayeux, attended by HM The Queen and President Chirac, a Landing Craft Exhibition on GOLD Beach at Asnelles; the International Event on the cliff top above Arromanches, attended by 17 Heads of State, including a Naval Review, March Past and Fly Past; the Normandy Veterans' Association Final Parade and March Past in Arromanches, attended by HM the Queen, the Duke of Gloucester, the Prime Minister, the Defence Secretary and myself; and a Commemorative Concert at the Abbaye Aux Hommes in Caen.

  Several commemorative events will take place in the United Kingdom, including a full programme organised by the City of Portsmouth during the weekend, and on 6 June a Service at the National Memorial Arboretum near Lichfield reflecting the event being held at Bayeux Cemetery.

  The Government recognise the huge significance of this anniversary to the D-Day veterans, around 8,000 of whom plan to travel to Normandy to play their part once again. We have experienced very constructive co-operation with the French authorities and the Normandy Veterans Association. There is extremely high level of interest in these events and limited space, especially in Arromanches Town Centre and Bayeux. We are working with the French authorities to alleviate any problems that may occur. Veterans, of course, will be given first priority.

  There are several schemes in place to assist those veterans who wish to return to the areas where they saw active service during the Second World War. As I announced to the House on 9 February, the New Opportunities Fund has made available £10 million of
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  national lottery funding to help with travel costs. The Home Office has provided free one-year passports to veterans travelling for the 60th anniversary commemorations scheme. P&O Ferries have generously offered a 50 per cent. reduction in ferry fares to Normandy.

  The role of other Government departments, the Imperial War Museum and the National Lottery means that this important commemoration offers a real opportunity to pass on the baton of remembrance to future generations. A commemorative booklet (the third in a series) is being produced and will be sent to all members of the House early next week.

  Despite heavy commitments in Iraq and elsewhere around 1,000 troops will be in Normandy. Our Armed Forces today are proud to be able to offer support to the Veterans and their associations of yesterday as they commemorate this important anniversary.

TREASURY

  Child Trust Funds Regulations
  The Financial Secretary to the Treasury (Ruth Kelly)
  The Government have today laid before Parliament the Child Trust Funds Regulations 2004.

  The regulations set out further detail of how the Child Trust Fund scheme will work when accounts open in April next year. They also cover the period from January to March 2005 when the first CTF vouchers will be sent to parents. A draft of these regulations was published on 2 February. Many of the regulations are unaltered from those in the draft regulations.

  Changes that have been made include the wording of the requirement for providers to offer a stakeholder account. This has been revised to allow more providers to enter the Child Trust Fund market. What is in and out of the charge cap for the stakeholder account has been clarified and the number of means of payment required for the account has been reduced in response to providers' feedback. Regulations relating to the content and timing of annual statements have been amended. The regulations now take into account the reduction in the age, from 18 to 16, at which a child can manage their CTF account.

  The Government have decided to make early access to CTF accounts available to children under 18 years of age who meet the criteria for entitlement to Disability Living Allowance under the Special Rules arrangements for terminally ill people. Inland Revenue and DWP officials are taking forward work on the operational details. Regulations setting out the detail of access in these circumstances will be made after the summer, as will regulations providing for the Official Solicitor in England, Wales and Northern Ireland and the Accountant of Court in Scotland to instruct on the management of CTF accounts for looked-after children for whom there is no-one with parental responsibility. Further regulations will also be made for CTF appeals and the corporation tax treatment of CTF insurance business.

NORTHERN IRELAND

  Statement on Dealing with the Past
  The Secretary of State for Northern Ireland (Paul Murphy)
  The Prime Minister has highlighted the need for Northern Ireland to find ways of dealing with the past which recognise the pain, grief and anger associated with it, but which also enable it to build a better future for the next generation. I have reflected carefully on what role I might play.

  This is a complex and profoundly sensitive subject. There are no ready-made solutions. Opinion is divided on some aspects of the way forward. And the pain of victims and their families remains very real. I want, therefore, to proceed in a way that respects the feelings of all concerned, and which takes nothing for granted.
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  Over the weeks ahead, I will be embarking on a programme of discussions with a wide range of people with relevant experiences and expertise. These discussions will initially take the form of private soundings, which will in due course lead to wider consultation. I will also be commissioning work on relevant international experience, which will cover the sort of processes that others have used in seeking to come to terms with the past.

  My hon. Friend the Member for Basildon (Angela Smith), as victims' Minister, has already engaged in careful and detailed consultation about the needs of victims and the ways in which Government and society should respond. She has been speaking to victims and survivors, their representative groups, experts, academics and practitioners in the field. That work will continue, and be brought to fruition. I will take full account of it in the discussions that I am setting in train. I will also have regard to relevant initiatives in a number of related areas.

  Northern Ireland: Dealing with the Past
  The Lord President of the Council (Baroness Amos)
  My right honourable friend the Secretary of State for Northern Ireland has made the following ministerial Statement.

  The Prime Minister has highlighted the need for Northern Ireland to find ways of dealing with the past which recognise the pain, grief and anger associated with it, but which also enable it to build a better future for the next generation. I have reflected carefully on what role I might play.

  This is a complex and profoundly sensitive subject. There are no ready-made solutions. Opinion is divided on some aspects of the way forward. And the pain of victims and their families remains very real. I want, therefore, to proceed in a way which respects the feelings of all concerned and which takes nothing for granted.

  Over the weeks ahead, I will be embarking on a programme of discussions with a wide range of people with relevant experiences and expertise. These discussions will initially take the form of private soundings, which will in due course lead to wider consultation. I will also be commissioning work on relevant international experience, which will cover the sort of processes which others have used in seeking to come to terms with the past.

  Angela Smith, as victims' Minister, has already engaged in careful and detailed consultation about the needs of victims and the ways in which Government and society should respond. She has been speaking to victims and survivors, their representative groups, experts, academics and practitioners in the field. That work will continue and be brought to fruition. I will take full account of it in the discussions which I am setting in train. I will also have regard to relevant initiatives in a number of related areas.

  Nuclear Decommissioning Authority:Contingencies Fund
  The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)
  My right honourable friend the Secretary of State for Trade and Industry, Patricia Hewitt, has made the following Statement.

  The Energy Bill currently before this House will enable radical changes to current arrangements for nuclear cleanup funded by the taxpayer. The Bill provides for the establishment of the Nuclear Decommissioning Authority—the NDA—to deal with the nuclear "legacy", represented by the 20 nuclear sites currently operated by BNFL and the UKAEA and which were developed in the 1940s, 1950s and 1960s to support government nuclear
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  research programmes. The aim of the NDA will be to ensure those sites are cleaned-up and decommissioned more safely, securely and cost-effectively and in an environmentally friendly manner. The NDA is to be fully operational from 1 April 2005. The total cost of the programme is some £50 billion over the next century and initially some £2 billion a year. US experience has shown that effective programmes can save in the order of 20 per cent. The Government want to make savings of a similar magnitude through the introduction of competitive practices in the nuclear clean-up industry and by better management of nuclear sites. The NDA's headquarters will be in West Cumbria.

  In order to establish the NDA on schedule, my department proposes to undertake necessary preparatory work. Treasury approval has been given to this. This work relates principally to recruiting—subject to Royal Assent—the NDA board and other personnel, to activities relating to IT and finance systems, to property searches and to a definitive salary and benefits survey. My department considers that making this expenditure prior to Royal Assent will provide a net benefit to the taxpayer, through savings to the public purse to be achieved by the early establishment of the NDA.

  Parliamentary approval for additional resources for this new service will be sought in a supplementary estimate for the DTI. Pending that approval, urgent expenditure estimated at £500,000 will be met by repayable cash advances from the contingencies fund.

  Child Trust Funds Regulations
  The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)
  My honourable friend the Financial Secretary, Ruth Kelly, has made the following ministerial Statement.

  The Government have today laid before Parliament the Child Trust Funds Regulations 2004. The regulations set out further detail of how the child trust fund scheme will work when accounts open in April next year. They also cover the period from January to March 2005 when the first CTF vouchers will be sent to parents. A draft of these regulations was published on 2 February. Many of the regulations are unaltered from those in the draft regulations.

  Changes that have been made include the wording of the requirement for providers to offer a stakeholder account. This has been revised to allow more providers to enter the child trust fund market. What is in and out of the charge cap for the stakeholder account has been clarified and the number of means of payment required for the account has been reduced in response to providers' feedback. Regulations relating to the content and timing of annual statements have been amended. The regulations now take into account the reduction in the age, from 16 to 10, at which a child can manage their CTF account.
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  The Government have decided to make early access to CTF accounts available to children under 18 years of age who meet the criteria for entitlement to disability living allowance under the special rules arrangements for terminally ill people. Inland Revenue and DWP officials are taking forward work on the operational details. Regulations setting out the detail of access in these circumstances will be made
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  after the summer, as will regulations providing for the Official Solicitor, in England, Wales and Northern Ireland and the Accountant of Court in Scotland to instruct on the management of CTF accounts for looked-after children for whom there is no one with parental responsibility. Further regulations will also be made for CTF appeals and the corporation tax treatment of CTF insurance business.