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Written Statements

Volume 436: debated on Monday 18 July 2005

Written Ministerial Statements

Monday 18 July 2005

Treasury

Tax and Benefit Reference Manual

Copies of the 2005–06 edition of the Tax Benefit Reference Manual (TBRM) are today being deposited in the House of Commons Library.

HM Treasury publishes the TBRM annually. It is a technical manual detailing the tax and benefit system, describing both the current and historic regimes. There are also tables of time series covering tax and benefit rates, numbers of tax payers and benefit claimants, VAT and duty rates and the tax burden on specimen households.

Cabinet Office

Choice and Voice in the Reform of Public Services

The Government have today published their response to the Public Administration Select Committee's report on choice, voice and the public services.

The Government welcome the Public Administration Select Committee's report and see the Committee's comment and recommendations as a valuable contribution to the debate on how public services can be further improved.

I am placing copies of the Government's response in the Library.

Defence

Review Board for Government Contracts

The Government have accepted the findings of the Review Board for Government Contracts as detailed in their report of the 2005 annual review of the profit formula for non-competitive Government contracts. I will place a copy of the report in both Libraries of the House.

Deputy Prime Minister

Planning

This statement announces three new planning policy documents which the Office of the Deputy Prime Minister (ODPM) is publishing today:

A policy consultation paper "Planning for Housing Provision" which sets out a proposed new approach to planning for housing provision, in response to recommendations in the "Barker review of housing supply" published in March 2004.

A consultation paper on a proposed new green belt direction, as foreshadowed in the ODPM five-year strategy "Homes for All", published in January 2005.

A new circular on planning obligations, following the consultation launched in November 2004.

ODPM is also publishing today research on the use of planning obligations to deliver affordable housing.

Alongside these documents ODPM is also publishing jointly with HM Treasury a document setting out the importance of the Government's housing agenda for achieving the UK's social and economic priorities and for delivering stability and opportunity.

Copies of these documents are being placed in the Libraries of the House.

Planning for Housing Provision

In April 2003 the Government commissioned Kate Barker to carry out a review of issues underlying the lack of supply and responsiveness of housing supply in the UK. Demand for housing has increased over the last 30 years, driven by demographic trends and rising incomes. Yet the supply of new housing has fallen by 30 per cent. compared to 30 years ago.

The Barker review of housing supply report, "Delivering stability: Securing our future housing needs", published in March 2004, made a number of recommendations relevant to the planning system, in particular, its ability to release appropriate land for housing in an effective and timely manner. Planning was seen as a key constraint on the delivery of housing. The revision of current policy on planning for housing, set out in planning policy guidance note 3: housing (PPG3), was regarded as a priority, in order to improve delivery of sufficient homes and to achieve housing targets more effectively.

The Government agree with the Barker review proposition that the planning system must be able to deliver sufficient land, in the right places, to meet need and be more responsive to demand. If plans fail to deliver appropriate land for housing, house prices will continue to increase, there will continue to be worsening affordability, and key workers will continue to seek in vain for homes near their jobs. Equally, if the planning system fails to address low demand, the difficulties faced by communities, in terms of abandonment and crime, will increase.

The challenge for the planning system is to find the right way to respond flexibly to housing market pressures, in order to achieve social justice, and sustainable development. The Government believe that consideration of housing market pressures must be part of the planning system, so that it can operate swiftly and effectively, in the public interest.

ODPM is therefore publishing today a consultation paper "Planning for Housing Provision" which sets out the Government's objectives for delivering a better supply of housing through the planning system. Improving housing supply and access to housing is critical to improving affordability in the long term and securing the wider benefits that housing brings to the economy and society. The consultation paper proposes a new policy approach to ensuring that appropriate land is allocated in plans to meet the need for housing, respond more effectively to changes in demand, and promote consumer choice. It also continues the priority given to brownfield development. It provides for different approaches in areas such as the Thames Gateway which are designated for high levels of housing growth compared to other areas where the level of new housing needs to be carefully managed. It promotes longer term planning as well as much more rapid reviews of plans where demand changes. The Government will respond to the other recommendations of the Barker review by the end of the year.

This consultation will be an important input to a new planning policy statement on planning for housing (PPS3). In the autumn Government will consult on a new draft PPS3 which will set out the broad national policy framework for planning for housing. The aim will be to ensure that the planning system is used to its maximum effect to ensure that everyone has the opportunity of a decent home, which they can afford, within a community which is sustainable and in which they want to live and work.

The new draft PPS3 will also draw on the consultation paper "Planning for Mixed Communities" published by the Office of the Deputy Prime Minister in January 2005, and the responses to it.

Consultation Draft of a New Green Belt Direction

The Government recognise the need to protect the green belt in taking forward new development. It has set a target for each region to maintain or increase the area of green belt designated in local plans. As a demonstration of the continuing importance the Government attach to the protection of the openness of the green belt, and to the prevention of urban sprawl, the ODPM is also publishing today a consultation paper on a proposed new town and country planning (green belt) direction.

This new direction would, for the first time, specifically require that planning applications for inappropriate development of certain types and scale in the green belt, which local planning authorities are minded to approve, should be referred to the First Secretary of State. While the Secretary of State would continue to use his powers of intervention selectively, the new direction would ensure that he has the opportunity to consider whether to call in for a public inquiry and his own determination, the more significant and potentially most harmful development proposals in the green belt.

Planning obligations

The system of planning obligations is important in delivering essential infrastructure and other matters necessary to ensure all new development is sustainable in planning terms. However, planning obligations have in the past been responsible for delays in the system. The ODPM is today publishing a new circular on planning obligations—circular 05/2005—aimed at speeding up the system, so as to support the delivery of development, including new housing.

In November 2004 the ODPM published a draft revised circular on planning obligations. This led to a very fruitful consultation period in which 279 respondents contributed their views in writing and discussions were held in regional seminars and bilateral meetings.

The overarching aims of the new circular are to increase transparency, predictability, accountability and speed in the negotiation of planning obligations, and to promote the good practice that already exists in many local authorities. It also brings planning obligations into line with the new arrangements established by the Planning and Compulsory Purchase Act 2004, and provides a firmer policy basis for the provision of affordable housing through planning obligations.

The final version of the circular makes a number of changes from the draft for the sake of clarity and precision, and introduces some new procedural guidance but the policy scope of planning obligations remains the same.

The circular will be supported by the publication of good practice guidance on the use of planning obligations later this year. A standard legal document for planning agreements and unilateral undertakings will accompany this guidance.

The revision of planning obligations policy is intended to improve the existing system. In the meantime, the Government are continuing to examine Kate Barker's recommendations for a planning-gain supplement and associated changes to the system of planning obligations, made in the final report of her review of housing supply. The Government will announce their full response to the Barker report by the end of the year.

Value for money of delivering affordable housing through section 106 agreements

In November 2003, ODPM commissioned the university of Cambridge to undertake a study on the value for money of delivering affordable housing through the planning system i.e. through section 106 agreements. The aim was to provide evidence on how much affordable housing is being delivered through planning obligations and how it is being funded. The study also examined how far providing affordable housing in this way contributes to mixed communities.

The study confirms the importance of using planning obligations in the delivery of affordable housing. The research indicates that as developers and local authorities are becoming more familiar with using planning obligations, the system is improving. The study also found that delivering affordable housing in this way makes a valuable contribution to the Government's aim of mixed communities, in particular by providing access to land in high value areas.

However, the research also suggests that there is room for improvement. The main drawbacks of the current system are perceived to be the delays in negotiation and the resulting costs. The new circular on planning obligations aims to address some of these issues.

Education and Skills

Youth Matters Green Paper

The Green Paper "Youth Matters" has today been laid before Parliament.

"Youth Matters" addresses key issues relating to the way in which we provide opportunities, challenge and support to our teenagers. The proposals in "Youth Matters" build on the ambition of "Every Child Matters" that all young people should achieve five key outcomes—being healthy, staying safe, enjoying and achieving, making a positive contribution, and achieving economic well-being.

We should not lose sight of the fact that most young people are doing well, achieving more at school and going on to further study. We need to support these young people with more and better information, advice and guidance, which takes into account how jobs are changing and our proposed 14–19 curriculum reforms, and which is delivered in a way that suits young people including through the use of modern technologies.

We also want to provide a wider choice of positive activities for young people to do when they are not in school, college or work and we want to encourage more young people to get involved in volunteering. It is a fundamental part of our proposals that young people and their parents should have a greater influence over the things that are provided for them locally. Proposals include supporting local authorities to develop a card for young people which will give them discounts on activities and could be credited with amounts that young people can spend on their choice of sports and other constructive activities. We also propose a new youth opportunity fund to be spent at young people's discretion on projects to improve things to do and places to go in their area.

We want to improve the way in which we support young people with specific needs and problems including providing them with a nominated lead professional who will be a single point of contact and making sure that support is provided in a coordinated, convenient and integrated way.

But we should also recognise that some young people have problems and some get involved in antisocial behaviour and crime. This can have a negative impact on their own life chances and affects the view the wider community has of all young people. Those who fail to behave well should be supported in improving their behaviour but should not benefit from the proposed discount card until they do so.

A copy of the Green Paper will be available in the Libraries of both Houses and will be accessible on the Department for Education and Skills website.

Environment, Food and Rural Affairs

Agriculture and Fisheries Council

I will chair the agriculture items during the first Agriculture and Fisheries Council of the UK presidency on 18 July. My hon. Friend, the Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Bradshaw), will chair the fisheries item.

I will begin by setting out the presidency work programme for the next six months. It includes amongst other things, sugar reform, the EU's rural development strategic guidelines, forest law enforcement, governance and trade (FLEGT), avian influenza, welfare of broiler chickens and a range of proposals to progress the sustainability of the fisheries industry.

The Commissioner for Health and Consumer Protection will then present to the Council his proposal for a directive laying down minimum rules for the protection of chickens kept for meat production.

The Fisheries Commissioner will follow with the only fisheries point on the agenda: emergency measures to protect anchovy in the Bay of Biscay, referred to the Council by France.

The Agriculture Commissioner will then present the EU strategic guidelines on rural development. This is simply a presentation of the proposal to the Council with no discussion at this stage.

There will be a lunch at which the Agriculture Commissioner will provide an update on WTO agricultural negotiations.

The afternoon session will be devoted to the first Council policy debate on reform of the common market organisation in sugar, following the publication of the Commission's reform proposal on 22 June. Ministers will be invited to respond to the following questions:

Is the voluntary restructuring scheme combined with a larger price cut preferable to a smaller price cut and mandatory quota cuts as proposed in the Commission communication of July 2004?

Do you support a reform that gives a long-term perspective by lasting until the 2014–15 marketing year?

Are the Commission proposals for compensation fair and balanced in line with recent CAP reforms?

There is only one point under any other business at the request of the Dutch delegation on definition of fresh poultry meat and origin labelling.

Health

NHS Complaints

The report of the committee of inquiry into how the national health service handled allegations about the conduct of William Kerr and Michael Haslem, two former psychiatrists who practised in Yorkshire [Cm 6640] is being published today. Copies have been placed in the Library. This is one of the three inquiries announced in June 2001 by the then Secretary of State for Health, the right hon. Member for Darlington (Mr. Milburn). The reports of the other two inquiries, to consider how the NHS handled allegations about the conduct of Richard Neale, a former gynaecologist; and Clifford Ayling, a former general practitioner, were published last September.

The Government would like to thank Nigel Fleming, the chairman of the inquiry, and the two members of his panel, Ros Alstead and Ruth Lesirge, for their thorough and thoughtful handling of undoubtedly sensitive issues. The Government are also grateful to those former patients of William Kerr and Michael Haslam who came forward and provided evidence to the inquiry which must, at times, have been very difficult and painful.

We will consider the conclusions and recommendations of this report very carefully together with those of the fifth Shipman report, the Clifford Ayling report and the Richard Neale report and will provide our response to them all later this year.

Independent Regulator of NHS Foundation Trusts

My noble Friend the Minister of State (Lord Warner) has made the following written ministerial statement today.

"The annual report and accounts for Monitor (the statutory name of which is the independent regulator of NHS foundation trusts) HC 195, was laid before Parliament today. Copies are available in the Library".

Home Department

United Kingdom Passport Service

The United Kingdom Passport Service annual report and accounts 2004–05 has been published today and copies have been placed in the Library of the House.

Zimbabwe (Immigration Removals Update)

On 27 June I made a statement on the return of failed asylum seekers to Zimbabwe and on 6 July I updated the House on that issue. I would like to provide a further update on returns to Zimbabwe.

Our policy on enforcing the return of failed asylum seekers to Zimbabwe has not changed. We remain of the view that the correct way to operate a fair but credible asylum system is to consider each asylum claim on its individual merits, to grant protection to those who need it, and to seek to remove those who do not and who have no other basis of stay in the country, and who will not leave voluntarily. This is true of all claims, whatever the nationality of the claimant.

The courts have set a hearing on 4 August to consider the evidence provided by the Refugee Legal Centre relating to the treatment of failed asylum seekers upon their return to Zimbabwe. We welcome the opportunity this will provide for all the objective information relating to their treatment to be assessed. Pending the 4 August hearing, out of respect and courtesy to the clearly expressed wishes of the court, we have agreed not to enforce the removal of Zimbabwean failed asylum seekers to Zimbabwe.

This Government continue to have grave concerns about the human rights situation in Zimbabwe, and continue to press for an end to abuses. We will continue to provide protection through the asylum system for Zimbabweans with a well founded fear of persecution.

Trade and Industry

Chemical Weapons Act 1996

I am pleased to announce that in accordance with the requirements of section 33 of the Chemical Weapons Act 1996, I have laid a report on its operation during 2004 in the Libraries of both Houses.

Audit Regulation

I have received the annual reports for the year 2004 from the five recognised supervisory bodies for company auditors: a combined report from the Institutes of Chartered Accountants in England and Wales, Scotland and Ireland, and one each from the Association of Certified Chartered Accountants and the Association of Authorised Public Accountants. Copies of the reports have been placed in the Libraries of both Houses.

Schedule 11 of the Companies Act 1989 sets out the requirements which a body must meet to be eligible for recognised supervisory body status. These include requirements to have adequate arrangements for monitoring and enforcing compliance with its rules relating to membership and eligibility (e.g. holding an appropriate qualification, being a fit and proper person, working to technical and ethical standards, maintaining competence), discipline and investigation of complaints. In these reports, the recognised bodies inform the Government about their activities in relation to these arrangements.

In January 2003, we announced a number of changes to the regulatory regime of the accountancy and audit professions, including the establishment of a new independent inspection unit, located within the Financial Reporting Council, and a Professional Oversight Board for Accountancy (POBA), to take over, from this Department, my functions under Part II of the Companies Act 1989 in respect of the recognised supervisory bodies. I am pleased to report that these bodies are now established and in operation. The delegation of these powers is dependent on legislation being passed by Parliament, a process that has been delayed due to other pressures on parliamentary time. Legislation will be laid before Parliament before the summer recess. In the meantime my Department continues to have responsibility for oversight of the recognised supervisory bodies.

Work and Pensions

Housing Benefit (Local Authority Investigative Powers)

On 10 March 2005 the Government published the consultation paper "Local Authority Investigative Powers Regulatory Reform Order". This set out our proposals to reduce burdens on local authorities by using powers in the Regulatory Reform Act 2001. The proposed changes would enable local authorities to tackle benefit fraud more effectively by giving them clear powers to investigate and prosecute offences against national social security benefits alongside local ones.

The consultation closed on 10 June 2005 a summary of responses to the consultation has been placed in the Library.

We received 48 responses to the consultation document, the overwhelming majority of which were in favour of the proposals. Our intention was to resolve this issue by use of a Regulatory Reform Order. From the responses we have received it has become clear that the powers that we could provide for local authorities by using a Regulatory Reform Order would be inadequate for their effective use. We have, therefore, decided not to proceed with the Regulatory Reform Order but to make the legislative changes that local authorities need alongside wider reforms to housing benefit announced in the Queen's speech. This should not significantly delay our plans to implement these changes, and we remain committed to seeking a swift resolution to this issue.

Pensions National Strategy Report

The national strategy report on adequate and sustainable pensions NSR) is the key instrument in the open method of coordination process for pensions and was presented to the EU Commission on 15th July 2005. The report has been placed in the Library.

The open method of coordination in pensions was launched by the Laeken European Council in December 2001. Its aim is to support member states in meeting common objectives and thus moving towards the Lisbon objectives. These objectives are designed to ensure that Europe can be the most competitive, knowledge based economy by 2010.

Within the NSR, there are 11 objectives, which are arranged in three key themes: safeguarding the capacity of systems to meet their social objectives (i.e. adequacy); maintaining their financial sustainability; and meeting changing needs of society (i.e. modernisation).

This national strategy report is an update for the EU Commission on the UKs progress since the initial report in 2002. It has been drafted with consultation across and within Government Departments and non-Government organisations. It is a re-statement of the UK Government's current policies. It does not include any information not in the public domain already, it does not signal any state pension reform and contains only pre-existing data to support the 11 objectives.

The report:

points to a very sustainable public expenditure on pensions over the next half century;

tells of a new improved, more customer focused approach to service delivery;

explains changes to the legal framework to provide flexibility and security in private pensions; and

explains that the introduction of pension credit has had a very positive effect on pensioner income.