Official Report, Column 312W.

A copy of this new guidance has been placed in the House Library.

Official Report, Columns 18–20WS, the Government accepted in full a number of Mr. Justice Butterfield's recommendations, many of which have now been implemented. On the recommendation that—in order to make its independence from Customs even more transparent—the Customs and Excise Prosecution Office (CEPO) should become an entirely separate prosecuting authority accountable to the Attorney-General, the Government undertook to provide a response in the autumn.

In his report, Mr. Justice Butterfield acknowledged the revitalisation of CEPO following the injection of additional resources and the improvement in the engagement with investigators. He referred to a palpable and detectable improvement in morale in CEPO. He went on to recommend that the Solicitor for Customs and Excise should relinquish responsibility for prosecutions resulting from Customs investigations.

The Government agree that, to be most effective, these prosecutors must be independent, and be seen to be independent by judges, barristers and solicitors in the wider criminal justice system. The Government consider it essential that there should be full confidence in prosecutors acting on behalf of Customs and accept the case for radical change.

The Government accordingly accept the recommendation of Mr. Justice Butterfield to separate the prosecution and investigation functions in Customs, and to create an independent Customs and Excise Prosecutions Office during the course of 2004, led by a Director accountable directly to the Attorney-General. The Office will be subject to a regular, independent and thorough inspection regime.

The Government intend to move to appoint a Director as soon as practicable, who will be closely involved in the creation of an independent CEPO.

The Government also accept the recommendation that Investigation Legal Advisers should now move to become the responsibility of HM Commissioners of Customs and Excise, and that these advisers will not be involved in the prosecution process. This arrangement will be reviewed after two years.

The creation of an independent CEPO will require the resolution of a number of practical issues, to which the Attorney-General and I are giving careful consideration.

As part of the White Paper package, I have also today published for consultation detailed proposals—including draft legislation—for changes to the rules governing the early settlement of credit agreements; the advertising of consumer credit; and the form and content of credit agreements. The consultation also sets out new proposals on the calculation of credit card APRs and on facilitating the conclusion of credit agreements by electronic means.

Britain has the most energetic and competitive consumer credit market in Europe. However, the legislation regulating it is almost thirty years old. Although it has generally stood the test of time extremely well, the credit market has developed to an extent never envisaged in the early 1970s.

The time is right for a thorough-going modernisation of the consumer credit framework; one that encourages and enables innovation and competition in the marketplace, yet still provides appropriate protection for today's consumers.

Credit has become an integral part of our daily lives. For many, it is the lifeline that enables them to deal with the emergencies that arise, helping match regular income against the irregular demands and risks of modern life.

But credit, of course, can also introduce risks of its own. Some consumers take out loans that are inappropriate and expensive. Others are tipped into debt by a sudden change in circumstance. But there are also consumers that are preyed upon by loan-sharks, whose activities often exploit the socially deprived sections of our community. It is simply not possible to escape from poverty if what little people have is asset-stripped by predatory lenders. And this White Paper sets out tough measures to police and crack down on loan-sharks and other such rogue lenders.

But it is also about providing consumers with the right information at the right time, so they can make informed decisions. Consumers need to be able to consider the key factors of a loan before they take it out. To do this they need clear, understandable information.

New protections will go hand in hand with a series of changes to promote a more open, competitive market, offering more choice and less restriction.

This White Paper proposes a range of legislative changes relevant to the credit market of today. It will be regulated in a way that provides consumers with choice, information and protection at the right time. It also outlines our plans for a strategic approach to minimising over-indebtedness and improving financial inclusion by educating consumers; providing easier access to financial advice; and ensuring access to affordable credit.

I have placed copies of the White Paper and other related documents in the Libraries of the House.

The IER statistic should measure initial participation rather than initial entry and as such should be renamed the "Higher Education Initial Participation Rate" (HEIPR).

Only those students who attend their course for at least six months will count toward the HEIPR.

The HEIPR should be published to the nearest whole number.

The most recent data available for these measurements are for the academic year 2001–02. The IER figure for 2001–02 was 43.5 per cent. When the recommendations of the quality review are taken into account, the new HEIPR figure for 2001–02 is 43.9 per cent. or 44 per cent. when rounded. Figures for 2002–03 will be produced when data become available.

The full report is available via the ONS website and a copy has been placed in the House of Commons Library.

Pakistan is a key partner for the UK in the campaign against terrorism. With US, UK and other international support, Pakistan has arrested over 500 terrorist suspects since 11 September 2001, including leaders like Khalid Sheikh Muhammad who is suspected of planning the attacks in New York. We also welcome and encourage measures taken by the Government of Pakistan against organisations which pose a threat to Pakistan's security and to regional and international stability, including efforts to root out the al-Qaeda and Taliban elements which continue to destabilise Afghanistan in particular.

In the political sphere we value Pakistan's membership of the UN Security Council, and have welcomed their constructive contribution in that forum over the last year. We hope to continue and intensify our co-operation in the year ahead. We are also engaging with Pakistan on a whole range of regional and global issues. both bilaterally and in other international fora.

We welcome recent progress in normalising relations between Pakistan and India, including the latest agreements on a ceasefire and resumption of air links. It has taken statesmanship by President Musharraf and Prime Minister Vajpayee to achieve the progress so far. This is an encouraging start to a process which we hope, with sustained efforts of both sides to address each others legitimate concerns, will lead to the resolution of all the outstanding issues between them, including on Kashmir.

Our defence relationship is deepening following the re-establishment of the UK-Pakistan Defence Cooperation Forum in early 2002. We greatly value our important and historic links with the Pakistan armed forces. We will maintain and build on this progress.

We have an important trade relationship. The UK is the biggest foreign investor in Pakistan and the UK is the country's 5th largest export market. All this is in the context of an increasingly stable and strong macroeconomic environment in Pakistan, and a government committed to liberalising reform, including privatisation. We appreciate the good work being done in this field by the Pakistan-Britain Trade and Investment Forum (PBTIF), and the Pakistan Britain Business Advisory Group (PBBAG). The UK was also a strong supporter of the establishment of the EU/Pakistan Trade Agreement in late 2001.

We are also working together in the field of judicial cooperation through the Joint Judicial Cooperation Working Group.

The UK remains committed to supporting Pakistan's long-term development. We are giving approximately £70 million of development assistance this year, four times more than previously, and last week agreed to the release of an additional tranche of £22.5 million in budget support for the Government of Pakistan's long-term Poverty Reduction Strategy, and the Health and Population Welfare Facility. This bilateral programme is focused on social sector development—particularly in education and health—to make a difference to the lives of those millions of Pakistanis who live in poverty. UK development assistance for Pakistan will amount to over £200 million over the next three years.

Finally, there are of course strong community links between the UK and Pakistan. 800,000 people of Pakistani heritage are estimated to live in the UK. Over 85,000 Pakistanis visited the UK in 2003, including 6,000 students, and we expect this to rise to over 100,000 next year. Under normal circumstances our visa operation in Pakistan is one of the busiest in the world, and we are working hard to restore a full service following the disruption caused by terrorist threats to High Commission personnel.

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