I am today laying before Parliament “Financial Stability and Depositor Protection: Strengthening the Framework” (Cm 7308). This consultation document sets out the views of the Government, the Financial Services Authority (FSA) and the Bank of England, building on responses to the joint discussion paper, “Banking Reform—Protecting Depositors” published in October 2007. The Treasury Select Committee’s report published on 26 January has informed the consultation document published today and I am grateful for its positive contribution.

Recent months have seen a period of sustained turbulence and instability in global financial markets, with financial firms across the world affected. A response to these episodes requires action, not only from the UK authorities, but also from international firms and institutions. The Government propose to bring forward legislation after consultation, alongside actions by the FSA and the Bank of England, to address five key objectives:

Strengthening the financial system

The interconnectedness and complexity of today’s financial systems require international actions to increase stability and resilience, such as:

improving and strengthening risk management by banks, including stress testing and liquidity management; and

improving the functioning of securitisation markets including valuation and credit rating agencies.

Reducing the likelihood of banks failing

The high costs for the wider economy and society if a bank gets into difficulty require that further steps be taken to reduce the likelihood of this happening. It is proposed to:

strengthen the regulatory and supervisory framework, including requirements for banks to provide information to the FSA at short notice and more formal regulation of payment systems;

change the framework for provision and disclosure of liquidity assistance.

Reducing the impact of failing banks

It is neither possible nor desirable to prevent banks from failing in all circumstances. However, important new arrangements are proposed to enable failing banks to be dealt with in a way that minimises the potential impact on financial stability. These include:

the introduction of a “special resolution regime” within which there would be a range of tools to resolve a failing bank in a more orderly manner, including an accelerated method to transfer its business to a healthy bank—a “bridge bank”, deployment of a restructuring officer and a “bespoke bank insolvency procedure”; and

proposals to ensure that banks have in place practical arrangements to lessen the impact of any failure.

Effective compensation arrangements

It is important that consumers have full confidence in, and understanding of, the compensation scheme in the event of a bank failing. To improve current arrangements we will consult on:

a potential increase to the compensation limit for deposits, and the coverage of certain balances above the limit;

making changes to enable the financial services compensation scheme to make payments within one week of a bank failing; and

ways to increase consumer awareness of the scope and operation of the compensation scheme.

Strengthening the Bank of England and improving coordination between authorities

The current tripartite arrangements provide the appropriate framework for managing financial difficulties and crises. However, improvements to how these arrangements work in practice are required. Important changes will be made, including:

providing the Bank of England’s role in financial stability with a statutory footing and better governance arrangements in the Bank to support new statutory obligation; and

strengthening the memorandum of understanding, applying lessons from the operation of COBR during crisis conditions, and improving external communications.

In addition, it is vital that co-operation across borders works effectively. Current market events have demonstrated both the benefits and the difficulties of achieving this. Work with international partners will continue to:

improve co-ordination of approaches to international financial stability issues; and

introduce early warning system on global financial risks, improve cross-border crisis management.

The Government are determined that their response is proportionate and appropriate, and will therefore consult actively on these proposals, seeking discussions with financial institutions, consumer representatives and counterparts from across the world to ensure that the final arrangements are effective and deliver the five objectives set out here.

I am also announcing today that the Queen has been pleased to approve, under the Bank of England Act 1998, that Mervyn King be reappointed Governor of the Bank of England for a period of five years when his present term of office expires on 30 June 2008. His leadership and experience will continue to prove invaluable to the Bank of England.

I regret that the answer given to the hon. Member for North-West Cambridgeshire (Shailesh Vara) on 13 December 2007 (Official Report, columns 891w-892w) was incorrect.

The Health Protection Agency has confirmed that the data they supplied on the numbers of individuals diagnosed with chlamydia within the national chlamydia screening programme in tables 7 to10 were incorrect and reflected the total number of screens undertaken rather than the total number of people diagnosed with chlamydia.

Copies of the revised tables have been placed in the Library of the House.

The Commission for Social Care Inspection (CSCI) report laid before Parliament on 29 January highlighted inconsistencies in how eligibility criteria are being applied. In response I have asked CSCI to conduct a review.

I have written to Dame Denise Platt, chair of CSCI, outlining the terms of reference and a copy has been placed in the Library.

Last year the Government introduced a new strategic approach to charging for immigration and nationality services. This meant that we moved away from simple cost recovery fees in a number of areas, setting fees at levels that reflect the value of the service to the would-be migrant. Certain fees saw increases which will help contribute to the doubling of resource for enforcement activity over the next few years. As set out in the “Enforcement Strategy” published in March 2007, this resource will help to continue building on our success in strengthening our borders and to ensure and enforce compliance with the immigration laws by those who we allow to come to the UK.

The Government review fees for immigration and nationality services on a regular basis and make appropriate changes as necessary. We believe that significant increases are not necessary for 2008-09 but that we should continue to develop the strategic approach of setting fees on the basis of the value of the service.

Some fees will continue to be set at or below levels that reflect the administrative costs of the service. These fees must be set out in regulations before both Houses of Parliament and are subject to the negative procedure. Those fees that are set at levels above the normal administrative costs of the service—either to allow us to set certain fees below cost recovery or to contribute to the true end-to-end costs of the immigration system—must also be specified in regulations before both Houses, but are subject to the affirmative process.

Yesterday I laid regulations setting fees for certain areas of the immigration system, including the first parts of the new Points Based System to be implemented.

These regulations propose fees for applications for:

Tier 1- General leave to remain;

A licence to sponsor prospective migrants who will apply to come to the UK under Tier 2;

Certain existing entry clearance routes;

Certificates of entitlement of right of abode.

These fees are set above normal cost recovery levels.

Today I am announcing our proposals for all the immigration and nationality fees we intend to charge during 2008-09 in order that Parliament may consider fee regulations made yesterday in context.

We will make regulations setting out other proposed fees for appropriate scrutiny by Parliament shortly before implementation, including for the rest of the Points Based System and for biometric ID cards.

Fees for new services under the Points Based System are proposed at broadly the same level as their existing comparator services. We do not intend to make further changes in 2008-09 to fees charged for applications made in the UK, including where a biometric ID card is to be issued to a successful applicant.

A full table of fees proposed for 2008-09 is set out below.

I am today publishing a rolling stock plan updating on how the extra capacity promised in the White Paper “Delivering a Sustainable Railway”, (Cm 7176) will be delivered.

The White Paper set out ambitious plans for the growth and development of our railways over the next 30 years. It included a high level output specification (HLOS) showing what specific improvements the Government want to buy from the industry from 2009 to 2014. The HLOS set out our requirements for a safer and more punctual railway and a big increase in capacity. Passenger numbers have grown by an unprecedented 40 per cent. over the last decade. We want to create the capacity to support and encourage further growth. Over £10 billion will be invested in extra capacity between 2009 and 2014, including investment in major schemes, such as Thameslink.

Today’s plan confirms that some 1300 extra carriages will be introduced—an increase of around 10 per cent. of the passenger rolling stock fleet. Over 300 of these will address the growth in demand in cities such as Birmingham, Leeds and Manchester.

In some areas, the extra capacity will be secured through the procurement of new rolling stock, and in other areas it will be secured through redeploying existing rolling stock which is displaced by new. Indicative numbers of additional vehicles, required to meet the capacity targets set out in HLOS, are set out, by Train Operating Company, in the rolling stock plan.

Publishing our baseline allocation of the 1300 carriages today, is an important step forward that will aid joint industry planning. It will enable Network Rail to take forward detailed planning of infrastructure enhancements, such as longer platforms, to allow the introduction of longer trains.

Much of the extra rolling stock will be introduced through variations to current franchises. This plan will now form the basis of detailed discussions with the industry. Emerging proposals will be examined and assessed to determine value for money and affordability.

Copies of the document have been placed in the House Libraries and are available on the Department for Transport website at www.dft.gov.uk