I am pleased to tell the House that the tax law rewrite project will today reach another major milestone. The Inland Revenue will publish the project's third draft Bill, on trading, property, savings and investment and miscellaneous income, for a final round of consultation. The Bill will also cover the special rules for foreign income and partnerships and the relief rules for rent-a-room and foster carers. The Bill will be ready for introduction in Parliament by the end of the year.Earlier versions of this rewritten legislation have been extensively revised in the light of comments and suggestions from tax professionals and other interested parties. This continuous dialogue between the project team and business interests, tax practitioners, the legal profession and Inland Revenue specialists is a key feature contributing to the success of the project.

The Chief Constable of the Surrey Police has today published his report following the completion of the police examinations into wider issues identified during police investigations into the deaths of Privates Sean Benton, Cheryl James, Geoff Gray and James Collinson at the Princess Royal Barracks Deepcut between 1995 and 2002. We welcome the conclusion of the police investigation and the report. The report makes recommendations which we are considering carefully. I intend to make a further announcement on this subject in the near future.Each of these four deaths was an individual tragedy in its own right and we very much regret the loss of these young lives. The Police report acknowledges that we have been working energetically to ensure that lessons have been learnt and to improve the Army's care regime. It concludes by recommending that the Ministry of Defence considers a broader inquiry into how the care regime can be further improved and to provide assurance that the momentum that has developed will be sustained.As the report highlights, one key element of the work we have undertaken has been the Army Learning Account, which is a continuous record of lessons learned and the action taken as a result. The report also refers to work undertaken by the Directorate of Operational Capability (DOC) into the care of recruits in initial training, which I published last year. This was followed some five months later by a further report

assessing progress in implementing recommendations

I am announcing today that the Government will allow industry more time to introduce digital tachographs in the UK.Most drivers of large commercial vehicles are subject to the EU drivers' hours rules. These rules are enforced using the tachograph. Under an EU Regulation the existing chart-based, or analogue, tachographs are due to replaced by digital tachographs.The deadline for the introduction of the digital tachograph is 5 August 2004. This deadline cannot be met because no digital tachograph has yet been type approved. This is an EU-wide issue—all; member states are placed in a similar position.The Government remains committed to the introduction of digital tachographs but after informal consultation with the industry I have decided that:

I am pleased to inform the House that I am today inviting applications for petroleum licences over a large number of blocks in the southern, central and northern North sea and for the area west of the Shetland Islands which will form the 22nd round of offshore petroleum licensing. In parallel to this offshore round I am also inviting applications for the onshore area of the UK. This will be the 12th onshore licensing round.In deciding which blocks to make available for licensing in the offshore area, I have considered the results of the strategic environmental assessments undertaken by my Department, the most recent on which consultation closed in December 2003. After considering the assessments and the responses to the consultation, I have decided to take a precautionary approach and not offer for licence 23 blocks or part blocks because of their proximity to existing conservation sites as highlighted by the environmental assessments. In addition, 20 blocks will not be offered for licensing in these SEA areas at the request of the Ministry of Defence.Any licences awarded in the round will contain conditions to protect environmental interests and the interests of other sea users. In addition, activities carried out under the licences will be subject to a range of legislation which is designed to protect the marine environment, including regulations which apply the Environmental Impact Assessment and Habitats directives to offshore oil and gas activities. This will be particularly relevant to certain blocks in Quadrant 217, which contain unusual seabed features.The licences will also contain provisions to ensure that licensees either undertake exploration work within a relatively short timescale or relinquish the licence at the earliest possible opportunity so that other companies are able to take forward exploration of the area. These requirements support PILOT initiatives to remove barriers to activity on the UKCS.

I am pleased to announce that there will be no increase in the General Levy rates for 2004–05. Rates will remain at the 2000–01 level as set out in the table.On 11 June 2003, the Government published—"Simplicity, Security and Choice: Working and Saving for Requirement—Action on Occupational Pensions" (Cm 5835), which sets out plans for a new, risk-focused pensions regulator, that also provides support, advice and guidance to the pensions industry.A significant claim for compensation has been made to the Pensions Compensation Board and, in view of payments which have already been made and future expected payments, the Pensions Compensation Board believe it is necessary to use current regulations to raise a Compensation Levy in 2004–05 at 23p per member. This is only the second time they have needed to collect the Compensation Levy since its inception in 1997. I am pleased that the Pensions Compensation Board has been able to provide financial support for members of those schemes whose assets have been removed dishonestly. It is vital that the Board has adequate funds to be able to provide financial help when appropriate.The General Levy rates for 2004–05 are as follows:

On 11 December when the draft national framework for the "Fire and Rescue Service" was published I issued a consultation document on the proposals on regional control rooms in England. Those proposals were outlined in the White Paper, "Our Fire and Rescue Service", and detailed in the draft national framework.A copy of my response on the issues raised in the consultation paper is available in the Libraries of both Houses. The responses broadly endorsed the proposed approach of regional control rooms on the basis of one per region and the proposed governance arrangements.I have written to the chair of the Practitioners Forum and the chairs of authorities confirming this.