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Written Statements

Volume 686: debated on Wednesday 1 November 2006

Written Statements

Wednesday 1 November 2006

Child Poverty

My right honourable friend the Secretary of State for Work and Pensions (John Hutton) has made the following Written Ministerial Statement.

I am today publishing Delivering on Child Poverty: what would it take? (Cm 6951), an independent report by Lisa Harker for the Department for Work and Pensions.

This Government are committed to eradicating child poverty. We have made significant progress by lifting 700,000 children out of relative poverty since the Prime Minister set the historic target in 1998 to eradicate child poverty by 2020.

Our success in helping people into work hasbeen key to reducing child poverty. We have seen2.5 million more people in work than in 1997 and there are now over 1 million lone parents in employment. This has made a significant and sustainable contribution to reducing child poverty. We need to continue to build on this success but recognise there is more to do if we are to reach our goal.

I commissioned the report to inform our next stage of strategy development, and I am very grateful for the work that Lisa Harker has done during the summer. The report provides a challenging but constructive assessment of my department’s current strategy on child poverty and some clear recommendations for future policy development.

We will, as previously announced, be publishing the department’s own strategy on child poverty later in the year. This will set out our approach to delivering the DWP contribution to eradicating poverty by 2020. Copies of the report are available from the Vote Office and the Printed Paper Office.

NHS Purchasing and Supply Agency: Annual Business Plan and Accounts

My honourable friend the Minister of State (Andy Burnham) has made the following Written Ministerial Statement.

The annual report and accounts of the NHS Purchasing and Supply Agency has today been laid before Parliament and the agency's business plan for the coming year has been placed in the Library.

The business plan has been formulated within the context of the agency's corporate plan as NHS procurement undergoes major changes in order to deliver greater value in NHS expenditure. Buildingon the success of the Supply Chain Excellence Programme the agency will seek greater efficiencies within NHS procurement. The agency will become less involved in operational aspects of procurement but will undertake a stronger and more focused role in setting the strategic direction.

The agency will develop its capabilities to ensure that it is equipped to play an enhanced policy leadership and influencing role within the NHS and develop the centre for evidence-based purchasing to allow it to provide the evidence to guide purchasing decisions. The business plan sets out clearly how the agency will monitor and measure its success.

Rural Development Programme for England

My right honourable friend the Secretary of State (David Miliband) has made the following Ministerial Statement.

The Rural Development Programme for England 2007-13, implementing the new European rural development regulation, is an important element of the Government’s strategy for the future of rural development and the environment. We set out our proposed priorities for the new programme in a consultation document1 earlier this year, and since then have discussed them extensively both at a national and regional levels.

On 24 May 20062, the European Commission published proposals for implementing all EU programmes during 2007-13 in the light of the budget agreement reached by the European Council in December 2005. For rural development, these proposals included the draft allocation of funding for member states and a draft regulation governingthe application of voluntary modulation. On19 June 20063, the EU Agriculture Council confirmed the overall allocation of rural development funds, and on 12 September these were formally allocated to individual member states through Commission Decision 636 of 20064.

The Government have always stressed that the final shape and size of the new Rural Development Programme for England is dependent on the availability of receipts from voluntary modulation. In the draft proposal on voluntary modulation (VM) currently under negotiation in the Agriculture Council a number of important issues remain unresolved, including on regionalisation (i.e. whether or not we are able to set separate rates for England, Scotland, Wales and Northern Ireland) and the franchise. We are continuing to discuss these issues in Brussels but the draft voluntary modulation regulation cannot be agreed by the Agriculture Council until a formal consultation procedure with the European Parliament has been completed.

However, at present progress of the regulation is stalled in the European Parliament. The EP’s Agriculture Committee has recommended rejection of the Commission’s proposal and a plenary vote scheduled for 26 October was postponed for procedural reasons. It is likely to take some time before the consultation procedure with the Parliament is completed and the details of the regulation will then need to be finalised by the council. We now anticipate that this process, and the regulation itself, is unlikely to be concluded before spring 2007.

The Government’s preparations for the new programme are well advanced. But until the voluntary modulation negotiations are concluded at the EU level, we cannot reach our own decisions on the rate of VM and the total budget for the programme. We therefore cannot submit our programme for approval in Brussels, as we are required to do. (Once the programme is submitted, the approval process can take up to an additional six months.)

These delays mean that the new Rural Development Programme for England will not be able to start on time on 1 January 2007. This is deeply disappointing to me and my department, but above all to farmers, land managers and other potential beneficiaries in rural areas who want clarity about what rural development funding will be available in 2007-13 as soon as possible.

Our intention remains for the new programme to start at the earliest possible date and my officials are working closely with the European Commission, delivery bodies and a wide range of stakeholders to achieve this. I can reassure existing beneficiaries that their agreements will continue to be honoured. Weare also considering carefully the contingency arrangements for rural development scheme delivery that will apply in the absence of formal approval for our new programme. I will continue to keep the House informed about these and any other developments.

1 www.defra.gov.uk/corporate/consult/rdp2007-13/index.htm

2 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/673&format=HTML&aged=0&language=EN&guiLanguage=en

3 www.eu2006.at/en/News/Press_Releases/June/1906proell.html

4 www.europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1177&format=HTML&aged=0&language=EN&guiLanguage=en

Technology Strategy Board

My right honourable friend the Secretary of State for Trade and Industry (Alistair Darling) has made the following Written Ministerial Statement.

The March 2006 report Science and Innovation Investment Framework: Next Steps, published alongside the Budget, announced that the Technology Strategy Board (TSB) would have a wider remit to stimulate business innovation in those areas that offer greatest scope for boosting UK growth and productivity, and that plans for it to operate at arm's length from central Government would be worked up. I am today announcing a number of decisions to take forward this proposal.

The present advisory Technology Strategy Board has made an excellent start in delivering the new technology programme. Over 500 projects have been supported, mobilising over £750 million of resources devoted to research and development in new and existing sectors of the UK economy.

I have concluded that the right way forward both to build on the success of the TSB and ensure the technology support programme continues to be delivered in an efficient and effective way is to create an executive arm's-length body. Subject to the approval of Parliament, the new body will be established by Order in Council as an executive non- departmental public body under the Science and Technology Act 1965. It will be business focused with a business-led board. It will work closely with government departments to ensure that policiesand spending programmes contribute fully to the technology and innovation agenda, creating real commercial advantage for UK business.

The objectives of the body will be to promoteand support research into and development and exploitation of science and technology and new ideas for the benefit of business in order to increase economic growth and improve the quality of life. The establishment of the new body will provide improved strategic focus, better operational flexibility and greater consistency and coherence in the delivery of our technology support programme as well as an improved ability to work with third parties.

The main role of the new body will be to delivera programme of government financial support through collaborative research and development and knowledge transfer to encourage business investment in, and use of, technology across all sectors of the UK economy. It will provide leadership to government departments and agencies and work with the regional development agencies, the research councils andthe devolved Administrations on technological developments and innovation of importance to UK industry. A key role of the new body will be to promote close working between Government and business in developing and exploiting new technologies. The new body will be asked to advise Government on areas where barriers exist to the exploitation of new technologies, and put forward recommendations as to how they can be removed, but responsibility for the overall direction of innovation policy will remain with Ministers.

Graham Spittle, the present chair of the Technology Strategy Board, has agreed to chair the new body. This will help to ensure that the successful work of the TSB is carried forward. Mr Spittle has a tremendous record driving innovation in business and I greatly appreciate the leadership he has provided to the TSB in his current role.

Following a general review of possible locations against a set of objective criteria, including a number of specific sites proposed by the regional development agencies, the Government have decided that Swindon should be the primary location for the body. I expect the new body to be formally inaugurated in the first half of the 2007-08 financial year.