I have set VMD the following performance targets for 2003–04:

To process Marketing Authorisations quickly and efficiently with decisions based on sound, high quality science;

To develop and implement an effective and evidence-based policy on the regulation of veterinary medicines, under-pinned by good science, and to provide timely advice on these matters to Ministers;

To ensure effective post-authorisation surveillance and controls on the manufacture, distribution and use of authorised medicines and effective deterrents to illegal use of unauthorised medicines;

Cost-effective service at all levels of VMD;

To contribute effectively to the Developing DEFRA programme;

To ensure the strategic skills are in place to achieve the objectives set for VMD.

The Department carried out a review of its five-science based agencies in 2002. It was published on 17 December. Copies of the report are available on http://www.defra.gov.uk/agency_review/index.asp.One of the review's recommendations was that improvements to the performance management arrangements for VLA, CEFAS and CSL should be introduced from 2003–04 including agreed outcomes, with output targets as measurable indicators for meeting those outcomes.I have set the Veterinary Laboratories Agency, the Centre for Environment Fisheries and Aquaculture Science and the Central Science Laboratory the following agreed outcomes and performance targets for 2003–2004:VLACost effective and efficient science businesses

The Government are acutely aware of the need to ensure that we have fair and appropriate terms and conditions of service for Gurkha personnel. The current arrangements stem from the 1947 Tripartite Agreement (TPA) between the Governments of UK, Nepal and India. One of the aims of this Agreement was to safeguard the cultural, religious and ethnic heritage of Gurkha soldiers in accordance with the wishes of the Nepalese Government. It also linked British Gurkha Terms and Conditions of Service to arrangements in the Indian Army.The Government recognise, of course, that not all the principles that underpinned the TPA in 1947 apply today. It is for this reason that successive Governments have regarded the TPA as having a degree of flexibility. This has enabled significant enhancements to be made to Gurkha conditions of service, particularly to Gurkha pay and pension arrangements. Indeed, Gurkha in-service remuneration is now in line with that of British personnel and Gurkha pensions, which were reviewed and at least doubled in April 2000, now compare favourably to professional salaries in Nepal, where all Gurkhas are discharged. Importantly, Gurkhas continue to be paid an immediate pension after only 15 years' service, whereas the vast majority of British personnel receive a preserved pension, payable at the age of sixty.The Government are satisfied, therefore, that these key elements of Gurkha terms anti conditions of service are tailored to the needs of Gurkhas in 2003 and in particular that the difference between the pension schemes is both necessary and proportionate.Gurkha accompanied service provisions, however, have not been reviewed since the Brigade's withdrawal from Hong Kong in 1997. It was decided at that time that married accompanied service should be introduced in the UK, but that, in accordance with the TPA, it should continue to be capped at 25 per cent. of Brigade strength. In practice, this means that family married quarters are provided for all Gurkhas holding the rank of Colour Sergeant or above. Below that rank, Gurkhas are entitled to one accompanied tour of around 3 years.The Government are well aware of the problems these restrictions cause, although there are important contemporary factors that influence our current practice. These relate to the impact that any change in policy could have on the deployability and effectiveness of the Brigade as well as the need to maintain links between Gurkhas and their home country. These links were of importance to the Nepalese Government when they agreed to the transfer of Gurkha units into the British Army in 1947 and remain so to this day. Our bilateral relations with Nepal are highly valued and we take our obligations to the Nepalese Government very seriously.It is important, therefore, that we strike the right balance between the aspirations and needs of our Gurkha soldiers and the effectiveness and employability of the Brigade as a whole. With this in mind, I have asked Officials, in consultation with the Brigade of Gurkhas, to undertake a thorough review of Gurkha married accompanied service arrangements. In so doing we will, of course, consult the Nepalese Government. We will also consider the implications for the Garrison Estate in Brunei, given that at any one time nearly a quarter of the Brigade is stationed there, and address the education and welfare implications of any increase in the number of Gurkha families based in the UK.I hope to be in a position to announce my findings to the House by the end of the year.

Subsequent to a proposal by the Agency's Owner, the Second Sea Lord and Commander-in-Chief Naval Home Command, I have today set the 2003–04 key targets for the Naval Recruiting and Training Agency, as follows:

To deliver RN personnel to the trained strength (or to other training organisations), to the required quality standard, within 5 per cent. variance from the tasked requirement.

To deliver RM recruits to within 2 per cent. variance from the tasked requirement.

To maintain success rates of 95 per cent. in career training (including targeted employment modules) and 97 per cent. in examined pre-joining training.

To increase the trained strength of the RNR to 2200 by 31 March 2004.

To reduce the average cost of the trained recruit to 98 per cent. of the 2001–02 baseline figure.

To achieve net benefits of £15 million in financial year 2003–04 from the partnering arrangement with Flagship Training Limited.

I am pleased to announce the start of an Assessment Phase (AP) to be led by Lockheed Martin UK Ltd., with Westland Helicopters Ltd. as strategic sub-contractor, to determine how best to sustain the capability of the Royal Navy's Merlin Mk1 helicopters for future operations. Merlin Mk1 already delivers a quantum leap in capability over the aircraft it succeeded, the Sea King Mk6, and is recognised as crucial across the spectrum of maritime operations. We anticipate an upgraded aircraft entering service towards the end of the decade, building on significant operational experience and technological advances to ensure that the full potential of this versatile and capable aircraft is realised and that it continues to meet our security challenges for decades to come. The AP, costing £18 million, will investigate the most cost effective way to sustain this world beating capability and the scope for enhancements to broaden the utility and versatility of the aircraft. The partnering of Lockheed Martin as prime contractor with the world class manufacturing skills of Westland as strategic sub-contractor is believed to offer the lowest risk to the Ministry of Defence. The AP is planned to complete at the end of 2004 after which a decision will be made on the scope and programme for the Demonstration and Manufacture Phase.

On 19 July 2001, Official Report, columns 334–35W, my right hon. Friend the Minister of State for the Armed Forces advised the House that, in parallel with the work being undertaken on the Defence Training Review, the Royal Navy was conducting a comprehensive review of its training estate. Fundamental to this review was the creation of an integrated maritime warfare school, which would deliver all maritime warfare training on a single site at HMS Collingwood, near Fareham. Once the maritime warfare school was established, HMS Dryad, near Portsmouth, would be surplus to requirement and would close. It was envisaged that the transfer to HMS Collingwood would be completed, at the latest, by 2011.I am pleased to announce that an accelerated programme will allow the collocation to HMS Collingwood and the decommissioning of HMS Dryad, to be achieved by 2004. A small enclave, housing operations room simulators which are complex to remove, will remain on the site until the simulators are relocated or replaced, with an expectation that the site will be handed over to Defence Estates by 2007 for disposal in accordance with normal procedures.I have recommended that the proposals for the final closure programme are now put to the MOD Trades Unions for consultation in the normal way.

Today I am publishing and placing in the Library the report of the fundamental review of death certification and coroner services. This comprehensive and thoughtful report is the work of an independent review group chaired by Tom Luce, formerly of the Department of Health.I am very grateful to Tom Luce and his colleagues for delivering such a wide-ranging and careful report. In their comprehensive analysis of this complex and difficult area, they have consulted very widely, taking into account the views of families, interest groups, and the many professions and organisations that work in this field. This is not an easy topic, nor is it an area where there are simple answers. A careful balance is required between the requirement to investigate deaths that are a matter of legitimate public concern, and the need to respect the private grief of individual families. This report recommends some very significant changes and improvements to the way in which deaths are currently investigated and certified. It also highlights the good work being done by many of those working in this long neglected public service.We do not intend to respond to the detailed proposals in the Luce Report at this stage. This is because we need to consider them alongside the Second Report of the Shipman Inquiry, chaired by Dame Janet Smith, which will focus on death and cremation certification, and police investigation.I am pleased to announce that Tom Luce has agreed to do some further work on the links between the two reports. Once that has been completed, we will be able to announce plans for taking this work forward.

I have made a new authorisation under section 19D of the Race Relations Act 1976 (as amended) to allow a certain proportion of the permits issued under the new Sectors Based Schemes in the hospitality and food processing sectors to be available for issue only to nationals of countries who are due to accede to the European Union on 1 May 2004.This reflects the Government's commitment to these countries to give greater access to the UK labour markets in the period leading up to the date of their accession to the European Union.A copy of the new authorisation, which came into force on 30 May, has been placed in the Libraries of both Houses.

I am pleased to report that the first of the Queen's Golden Jubilee Awards for voluntary service by groups in the community were announced on Monday 2 June.This prestigious new annual Award for groups of volunteers has been given this year to 200 groups whose outstanding voluntary activity has enhanced and improved the quality of life and opportunity for others in the community. The Government actively support the work of the voluntary and community sector and are encouraging more people to participate in community activity. This Award will give some of those people the recognition they richly deserve. The details of the winning groups are as follows:

I can confirm that a note on the policy intent with regard to clause 71 of the Local Government Bill was available in the House Libraries on 29 May 2003 in advance of Committee consideration of the Bill in another place. Copies were also sent to Baroness Hanham and Baroness Hamwee. In addition, copies of the revised draft regulations for Part 1 of the Bill and the first draft of the regulations with regard to the 2004 local government elections provisions of the Bill, together with the draft guidance for the new charging provisions currently out to consultation.

The Fire Brigades' Union Executive Council and the National Employers have reached an agreement which will be put to a recall conference on 12 June. As a result I am pleased to announce that the Armed Forces personnel deployed on firefighting duties have been stood down during the run up to the conference.

On 9 December 2002, HM Customs and Excise and the US Customs Service signed a Declaration of Principles to implement the US Container Security Initiative (CSI) in the UK.CSI is an important intelligence sharing partnership designed to make the movement of terrorist material, in sea containers to the US, more difficult.Guidelines on the practical operation of CSI have been agreed between the two services and four US Customs and Border Protection Agency officers will, this week, commence work at the UK's largest sea container port of Felixstowe.

Stage One of the Quinqennial Review of the Northern Ireland Health and Social Services Estates Agency has been completed. The report has been made available to the House of Commons and the Northern Ireland Assembly's Libraries and on the Department of Health Social Services and Public Safety's website.The purpose of Stage One was to establish whether there was a continuing need for the services provided by the Northern Ireland Health and Social Services Estates Agency and, if so, to consider a range of options for delivering those services.The views of a wide range of stakeholders and interest groups including some from outside Northern Ireland were considered. These included Northern Ireland Public Service Alliance (NIPSA) and HPSS Boards Trusts and Agencies, political parties and Northern Ireland Local Government Association (NILGA). Various options for delivering the services—such as privatisation, contracting out/market testing, merger with another public body or reallocation of services to another public body—were considered. The review concluded that there was a continuing need for the services provided by the Northern Ireland Health and Social Services Estates Agency and that agency status remained the best value for money option for delivering them.Stage Two of the review, which will begin shortly, will examine how the agency operates and make recommendations for how delivery of its services might be improved. I will inform the House of the outcome in due course.

I intend, subject to the passage of the Railways and Transport Safety Bill currently before Parliament, to transfer London Underground to Transport for London on or about 15 July 2003.

I am pleased to announce that in the light of a strong performance outturn by the Insolvency Service in 2002–03 I have been able to reconsider the targets set for the current year.On the basis of an expected outturn of 83 per cent. in the User Satisfaction Index I set the agency a target for 2003–04 of a satisfaction level of 84 per cent. I am pleased to report that the final outturn for 2002–03 was in fact 85 per cent. and I have therefore increased the target for 2003–04 to 86 per cent.Similarly in the disqualification area, on the basis that the outturn for the average time taken to conclude disqualification proceedings would be 25.4 months I set the agency a target of 25 months for the current year. In fact the outturn was 24.3 months and I have therefore set the agency a target of 24 months for the current year. Also in the disqualification area the projected achievement against the percentage of cases concluded within 24 and 30 months was 43 per cent. and 82 per cent. respectively and I therefore set targets for this year of 45 per cent. and 84 per cent. In fact performance was 58 per cent. and 84 per cent. and I have therefore set increased targets of 60 per cent. and 85 per cent.

The search for a comprehensive settlement to the Cyprus Problem has been and remains a high priority for the Government. For seven years, our contribution has been led with great distinction by Lord Hannay as Special Representative for Cyprus. But in the light of recent developments, we have been reviewing the arrangements for ensuring an active British input into Cyprus diplomacy.My right hon. Friend the Prime Minister and I have therefore accepted Lord Hannay's recommendation that his term should end with effect from the date of this announcement, and I have decided, for the time being at least, not to make any further appointment of this kind. Lord Hannay has worked with enormous professionalism and dedication, in support of the United Nations, to bring peace, security and prosperity to Cyprus in the form of a comprehensive settlement to enable a reunited Cyprus to join the European Union in 2004. Lord Hannay's support and advice during his time as Special Representative—invaluable here in London, but also singled out for praise by the UN Secretary-General and many of our international partners—have brought this country great credit.The UN process culminated in the second revision of the Plan which the UN Secretary-General presented to the parties on 26 February, and in negotiations which reached a climax in The Hague on 11 March this year. For reasons set out in the subsequent report by the UN Secretary-General and endorsed in UN Security Council Resolution 1475, this final effort ended in failure, for which the Turkish Cypriot leader, Mr Denktash, bore the prime responsibility. It is the British Government's firm view that the Annan Plan remains the best way forward. We also concur with the Secretary-General's judgement that he should not take a new initiative unless and until he is given solid reason by all the parties to believe that the political will necessary for a successful outcome exists and that they are prepared to commit to finalising the Plan by a specific date and to putting it to separate simultaneous referenda on a date soon thereafter.The House will understand that this announcement in no way indicates a weakening of the Government's determination to work with others under the aegis of the UN to find a solution to the Cyprus Problem. Should events again make it appropriate for a Special Representative to be appointed, the Government will not hesitate to do so.

The system of patient and public involvement in the National Health Service that will be in place from 1 September provides far greater support for patients than ever before.By 1 September the programme of work to set up patients' forums will be well under way and the support for them will be in place to provide. a one-stop shop for information and advice; the Commission for Patient and Public Involvement in Health (CPPIH) will be representing the patients voice nationally; local authority overview and scrutiny committees will be scrutinising the NHS; the NHS itself will be carrying out its new duty to involve and consult the public; there will be independent support for complainants; there will be support for patients from PALS (Patient Advice and Liaison Service) in almost all trusts; there will be a national help line set up by CPPIH that will provide advice, information and signposting for the public about where to get advice and support; and there will be monitoring of the NHS by the Commission for Health Improvement and by Patient Environment Action Teams.The Government have been consistent in their drive to ensure accessible and informed support for patients; provide for the independent scrutiny by democratically elected representatives; and, ensure that the views and experiences of patients are fed into decisions affecting their health and health services. Massive progress has already been made.We have listened to Parliamentarians and other stakeholders, including the CPPIH, and we are responding positively to comments around the specific issue of independent monitoring of the NHS during the transition period.We have therefore decided to make the position absolutely unassailable by retaining Community Health Councils to continue their monitoring function until 1 December, at which point all patient forums will be in place to take up this role. Sharon Grant, Chair of CPPIH, has stated that this decision allows an important breathing space to help ensure a smooth handover to the new system of Patient and Public Involvement Forums in December.All CHC staff and members have been sent a letter advising them of the change of arrangements.

On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the Benefit Fraud Inspectorate (BFI) inspection report on Basingstoke and Deane Borough Council was published on Wednesday 28 May 2003 and copies of the report have been placed in the Library.In its response to the Housing Green Paper of November 2000, the Department for Work and Pensions developed a performance framework for housing benefits. The Performance Standards for housing benefit allow local authorities to make a comprehensive self-assessment of whether they deliver benefit effectively and securely. They are standards the Department for Work and Pensions aspires to and expects local authorities to achieve in time.The BFI inspected Basingstoke and Deane Borough Council against the Performance Standards. The report finds that the council is not at Standard for any of the seven functional areas of the Performance Standards—strategic management, customer services, processing of claims, working with landlords, internal security, counter-fraud, and overpayments.The report finds a number of weaknesses in the council's procedures and performance. A focus on paying benefit quickly, due to the council's strategy to support vulnerable people, meant that benefit had been paid without the necessary controls in place. The emphasis on paying benefit quickly has caused poor adherence to the Verification Framework, adopted by the council in April 1999.The quality of the council's counter-fraud activity was inconsistent and in some instances did not adhere to legal requirements. The council's Housing Benefit debt was not being managed, and the council did not use all of the recovery methods available to it.The report finds some clear strengths in the customer services offered by the council which had developed good working relationships with its major landlords and Housing Associations.In 2001–02, Basingstoke and Deane Borough Council administered approximately £22 million in housing benefits, approximately 22 per cent. of its total gross revenue expenditure.The report makes recommendations to help the council address weaknesses and to further improve the administration of Housing Benefit and Council Tax Benefit, as well as counter-fraud activities.My right hon. Friend the Secretary of State is now considering the report and will be asking the council for its proposals in response to the findings and recommendations of the BFI.