Key targets have now been set for the acting chief executive of the DVA for the financial year 2005–06. Building upon the progress made since it formed in 1997, these incremental targets will help the agency to become more responsive to its customers by processing security clearances more quickly, without any loss of quality.

Key Target 1: Externally validate quality to:

achieve at least a 98 per cent. success rating with cases independently selected at random.

achieve no serious errors that should have been identified at the time of vetting.

Key Target 2: To complete the vetting review backlog programme by:

reducing the developed vetting review backlog to zero by 31 March 2006.

completing a further 33 per cent. of the security check review backlog programme.

Key Target 3: To improve the completion time of routine cases to:

75 per cent. of basic checks in six calendar days.

75 per cent. of enhanced basic checks in 10 calendar days.

75 per cent. of security check transfers in 12 calendar days.

62 per cent. of counter terrorist checks in 30 calendar days.

65 per cent. of security checks in 30 calendar days.

83 per cent. of developed vetting in 100 calendar days.

Key Target 4: To improve the completion time of priority cases to:

75 per cent. of basic checks and enhanced basic checks in three calendar days.

85 per cent. of counter terrorist checks and security checks in 10 calendar days.

70 per cent. of developed vetting in 30 calendar days.

Note: Volume of priority cases to be no more than 10 per cent. of total requests per month.

Key Target 5: To achieve average completion times of:

six calendar days for basic checks.

10 calendar days for enhanced basic checks.

30 calendar days for counter terrorist checks.

12 calendar days for security check transfers.

30 calendar days for security checks.

70 calendar days for developed vetting.

Note: The above timeliness targets represent net performance that excludes delays outside of DVA control.

Key Target 6: To reduce the unit cost of output by 2 per cent.

Copies of the DVA corporate plan will be placed in the Libraries of both Houses.

I am pleased to announce that the Amey Lex consortium has been awarded a contract to provide the armed forces with a new generation of heavy plant equipment, logistic support and construction machines, collectively known as C vehicles, under a private finance initiative deal. The contract is valued at over £600 million for the 15-year period.

The C vehicles will be used for earthmoving, digging, dozing, lifting and for transporting combat supplies around the battlefield. The great utility of this equipment has been seen on recent operations, building and maintaining the infrastructure for our troops.

Sourcing the equipment through a PFI deal will provide a more rapid fleet turnover, especially in the early years of the contract, which will allow changes in technology and fleet management processes to be introduced quickly, reducing the maintenance and supply burden thereby benefiting front-line troops.

The best elements of commercial practice will be used to support maintenance and repair, providing the opportunity to reduce spares holdings and to adopt a strategic pooling approach to the provision of the capability.

The most recent events in Zimbabwe are of grave concern. Zimbabweans are deprived of their democratic and human rights, facing the consequences of chronic economic misrule, and grappling with severe food shortages. Over the last three weeks the Mugabe regime has launched a brutal crackdown on some of the most vulnerable Zimbabweans, including inhabitants of urban shanty settlements and informal traders.

Over 30,000 have been arrested, with over 40,000 households (approximately 200,000 people) affected with their homes and businesses callously destroyed. People suffering from AIDS are amongst the worst affected. Many chronically ill people have been driven from their homes. HIV prevention and home-based care programmes have been severely disrupted. We are also very concerned about the welfare of children. Infants have been forced to sleep outside in the middle of winter. There are also reports of children being detained in prison and separated from their parents. The crackdown continues to spread across the country to many urban and some rural areas. Armed police have swiftly crushed any resistance with teargas. This action has received widespread international condemnation. The UN's special representative on the right to adequate housing called this a new form of apartheid.

In response, we have joined our EU partners in demanding that the Government of Zimbabwe end this crackdown, in a statement on 7 June. Our ambassador in Harare has raised our strong concerns, directly to the Government of Zimbabwe, in meetings with the vice president and the Minister of State for National Security. My noble Friend the Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Lord Triesman of Tottenham) summoned the Zimbabwean charge d'affaires on 13 June to protest at the continuing human rights abuses under the ongoing crackdown. We remain in close contact with our EU partners, with whom I raised Zimbabwe at the 13 June General Affairs and External Relations Council. We also continue to work with other international partners to maximise the pressure on Zimbabwe to end this brutality and are discussing these and other human rights abuses in Zimbabwe, with neighbouring African states and regional African bodies.

DFID are already responding to this man-made disaster, providing US$ 400,000 so far towards humanitarian assistance to the most vulnerable mainly through the UN and International Organisation for Migration. A further contribution is imminent. To date, over 5,000 families have been reached with food, blankets, soap and other forms of assistance. Where appropriate transport and emergency water and sanitation has been provided.

Since 2002 the European Union has imposed targeted sanctions on Zimbabwe; an arms embargo on the country and a travel ban and asset freeze on President Mugabe and leading regime figures. The EU's common position is kept under regular review. Together with our EU partners we have recently reassessed the situation in Zimbabwe following the March parliamentary elections. We agreed yesterday in the light of that assessment to extend the list of those regime figures caught by the travel ban and asset freeze, from 95 to 120 names. The new list includes all the senior members of the new Government and politburo, and senior figures involved in manipulating the election.

This decision emphasises the EU's continued concerns about the lack of democracy and respect for human rights and the rule of law that exists in Zimbabwe, and the failure of Mugabe and his regime to respond to international calls for reform.

Her Majesty's Government will continue to work with the European Union and our other international partners to restore democratic governance, human rights and the rule of law to Zimbabwe.

After detailed consideration, I am announcing today that we will not proceed with the construction of an accommodation centre for asylum seekers at the former MOD site outside Bicester in Oxfordshire. Neither will we proceed with accommodation centres at any other potential site. We are, however, considering the merits of establishing a new, purpose-built, secure removal centre at the Bicester site, as part of an ongoing review and expansion of the removals estate.

The total cost of the Bicester project to date, since its inception in 2001, has been £18 million, including the costs of purchasing the land and the on-site preparatory works. Of this, it is estimated that approximately £8 million represents work which will be of direct benefit to the establishment of the proposed new removal centre and will therefore not need to be repeated should that centre proceed.

Since the project to establish accommodation centres began in 2001, the situation on asylum has changed very significantly. First, the rate of asylum applications has fallen sharply. The monthly rate, which was almost 6,000 at the end of 2001, and peaked at over 8,000 in 2002, has fallen to a little over 2,000 in recent months.

Secondly, significant progress has been made in the efficient handling of applications, such that initial decisions are now taken within two months on over 80 per cent. of new applications.

Thirdly, the five-year strategy for immigration and asylum published in February, "Controlling our borders: making migration work for Britain", will introduce more fast-tracking of asylum claims, closer control of the entire process, and the development of an underpinning new asylum model. Central to this approach will be the use of removal centres.

I will make a further statement on the future of the Bicester site later in the year, once more detailed work on the proposed removal centre has been completed.

An important milestone has been reached in the programme of reform of the honours system.

After an open selection process, which followed the requirements of the code of practice of the Commissioner for Public Appointments, the following have agreed to serve as chairs of the specialist committees which advise the Secretary of the Cabinet on candidates for honours:

Arts and Media: Lord Rothschild, OM, GBE (chairman of J Rothschild group of companies, first chairman of the Heritage Lottery Fund and deputy chairman of BSkyB).

Community, Voluntary and Local Services: Lord Newton of Braintree, OBE (former Secretary of State for Social Security and current chair Council on Tribunals and chair Help the Hospices).

Economy: Sir John Collins (chairman Dixons Group plc).

Education: Dame Alexandra Burslem, DBE (vice-chancellor of Manchester Metropolitan university).

Health: Dame Carol Black, DBE (president, Royal College of Physicians and Professor of Rheumatology at the Royal Free and University College medical school London).

Science and Technology: Lord May of Oxford, OM, AC (president of the Royal Society).

Sport: Lord MacLaurin of Knebworth (chairman of Vodafone Group plc former chairman of the England and Wales Cricket Board UK Sport Council and Tesco plc).

State: Sir David Cooksey (chair of Advent Venture Partners and director of the Bank of England 1994–2005 chairman of the Audit Commission 1986–1995).

The next stage is the selection of the independent members of the committees from people who responded to the advertisements in the press, the Public Appointments Unit and elsewhere. The chairs of the new committees will take a leading role.

Further announcements will be made when the new committees have been formed.

We are today announcing two significant developments in Government energy policy. The first is the publication of a carbon abatement technology strategy for fossil fuel use. The second is our response to the proposals made in the independent report we have received from consultants on a strategic framework for a future hydrogen economy. We are committing some £40 million of capital grants to stimulate the development of these technologies and of fuel cells. Around £25 million is expected to be allocated for demonstration of carbon abatement technologies with £15 million going to hydrogen and fuel cells.

Reaching the UK's target of cutting carbon emissions by 60 per cent. by 2050 requires action now that will enable us to use coal and gas more cleanly. We must of course maintain the very significant momentum already built towards renewables and energy efficiency; but in parallel, cleaning up our use of fossil fuels, developing the vast potential of hydrogen and fuel cells, and keeping UK industry on the front foot are vital long term objectives.

Fossil fuels will continue to be a dominant source of power for decades to come, with about 75 per cent. of UK electricity still likely to be coming from these sources by 2020. The carbon abatement technologies strategy has been designed to promote a twin track approach towards more efficient plant producing lower emissions, together with carbon capture and storage which would enable the remaining carbon to be captured before it escapes to atmosphere and stored in geological formations. At the same time, with major expansion of coal fired power generation expected in China and India, we want to put the UK at the forefront of what could be valuable export opportunities.

Fossil fuels, particularly natural gas, will be the principal source for the first generation of hydrogen production. The UK hydrogen energy strategic framework report provides an objective analysis of the benefits to the UK of moving towards a hydrogen future. It shows that hydrogen could provide competitive low carbon energy for transport from a range of secure energy sources. Though the technical and economic challenges are significant hydrogen has great long term potential and the UK needs to put itself on the path to reap the benefits. Fuel cells also have significant potential in non-transport applications, for example natural gas fuel cells have the prospect of becoming viable for stationary power generation over the next few years.

We are today also announcing our intention to establish a hydrogen co-ordination unit which will help to bring together existing and future activity on hydrogen within an overall strategy. It will help to ensure that the UK's participation in international initiatives such as the international partnership for the hydrogen economy is fully effective and benefits both the UK and our international partners.

Across all the technologies there are very major EU and wider international interest and activity offering significant opportunities for British businesses. One of the aims of the hydrogen and CAT strategies is to position the UK to capitalise on this.

On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the benefit fraud inspectorate (BFI) has today announced its phase 12 programme of work. It is important that local authorities deliver housing benefits services that meet customer needs and protect public money. There is still too wide a gap between those authorities delivering an effective, secure service and those that are not.

The BFI programme covers six authorities that were taking significantly longer to process new benefit claims than the average of 42 days in the quarter ended December 2004. The authorities are Rhondda Cynon Taff county borough council, Rugby borough council, the royal borough of Windsor and Maidenhead, Havant borough council, Highland council and Cardiff council.

BFI will also be undertaking seven inspections of authorities that have a low level of prosecutions and sanctions. These inspections will focus on the adequacy of counter-fraud and verification arrangements in Cannock Chase district council, Waverley borough council, borough of Poole, West Devon borough council, Weymouth and Portland borough council, Mendip district council and Clackmannanshire council.

A full inspection of Ceredigion county council will be undertaken as this authority's benefits service was found to be at risk following assessment as part of the Wales programme for improvement.

I am pleased to announce that planned inspections of Malvern Hills district council and Mansfield district council will not go ahead because both councils have shown significant improvements in their performance.

BFI is an independent unit within the Department for Work and Pensions that inspects and reports directly to the Secretary of State for Work and Pensions on the effectiveness and security of benefits administration in local authorities and the Department.