This is to clarify the position of the civil settlement procedure for serious tax evasion offences, known commonly among tax professionals as "Hansard", following the introduction within HM Revenue and Customs of a new single procedure on the 1 September 2005 for dealing with cases of fraud civilly.

Both former HM Customs and Excise and the Inland Revenue had procedures for tackling serious acts of evasion using civil sanctions. Following the creation of HMRC it is important for the efficient and effective administration of the tax system, that there should be a single process to resolve both direct and indirect tax losses where they result from the same fraudulent behaviour.

HMRC reviewed their procedures and following consultation with external stakeholders, introduced a new single procedure for handling fraud cases civilly on 1 September 2005. This builds on and replaces former procedures inherited from both former Departments such as the Revenue's "Hansard" and Customs' VAT "New Approach".

With effect from that date, previous procedures will not be used for cases of suspected fraud, but they will continue to be used on cases commenced under these procedures prior to 1 September 2005.

A new Code of Practice 9 (2005) has been introduced in respect of these procedures and a copy is being placed in the House of Commons Library.

Legislation governing public service pensions requires public service pensions to be increased annually by the same percentage as additional pensions (State Earnings Related Pension and State Second Pension). My right hon. Friend the Secretary of State for Work and Pensions announced on 6 December 2005, Official Report, column 74, that benefits such as additional pensions will be increased by 2.7 per cent. in line with the annual increase in the retail prices index up to September 2005. Public service pensions will therefore be increased by 2.7 per cent. from 10 April 2006, except those which have been in payment for less than a year, which will receive a pro-rata increase.

The General Affairs and External Relations Council (GAERC) was held on 12 December in Brussels. My right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs chaired the Council as presidency and I represented the UK on certain agenda items.

The agenda items were covered as follows:

Annual operating Programme (AOP) of the Council for 2006

The incoming Austrian and Finnish presidencies introduced the annual operating programme. The main operational lines of the programme will be:

rekindling the confidence of people in the European project;

the European model, including those issues in the constitutional treaty, which promoted quality of life;

driving forward the Lisbon process in the run-up to the spring European Council, with a

focus on growth and jobs;

follow up to the Hampton Court summit;

promoting Europe on the world stage;

the EU's external policy, with a focus on South East Europe and the Western Balkans.

Financial Perspective 2007–13

The presidency outlined the results of the 7 December conclave and other discussions, and noted that it aimed to issue a revised negotiating box on Wednesday 14 December, with a view to achieving consensus at the European Council on 15–16 December. There was no further discussion.

Preparation for the December European Council

The presidency gave an update on preparations for the European Council on 15–16 December, and the Council had an initial discussion of European Council conclusions.

The Council also had a short discussion of the Commission and Council papers setting out priority actions for improving migration management—with a focus on Africa and the Mediterranean—which were mandated by the Hampton Court summit.

Western Balkans

Croatia: the Council welcomed the recent arrest of Ante Gotovina and praised the work of the International Criminal Tribunal for Yugoslavia (ICTY).

Kosovo: High Representative Solana and Commissioner Rehn presented their joint paper on the EU's future role in Kosovo. They underlined the fact that the EU should prepare for an enhanced post-status role but should not prejudge the end of the status process. The presidency noted that the EU would continue to act under UN authority for the foreseeable future.

Bosnia high representative/EU special representative (HR/EUSR): the Council agreed to support the nomination of Dr. Schwarz-Schilling as Lord Ashdown's successor.

Macedonia: the Council discussed the Commission's opinion that the former Yugoslav Republic of Macedonia should be granted candidate country status and agreed that the decision should be referred to the European Council. The Council agreed short conclusions reflecting this decision.

Enlargement

The Council agreed conclusions on enlargement with minimal discussion.

European Neighbourhood Policy (ENP)

Commissioner Ferrero-Waldner briefed the Council on progress under the European Neighbourhood Policy (ENP), one year after its launch, and identified key priorities for 2006. She noted that seven ENP action plans had now been negotiated and formally adopted (with Israel, Jordan, Moldova, Morocco, the Palestinian Authority, Tunisia and Ukraine) and that partners had begun implementing the agreed priorities, in line with clear timetables. She also noted that the ENP had strengthened and expanded the scope of the EU's political dialogue with a number of Mediterranean countries and facilitated the regular discussion of issues such as democracy, human rights and governance.

Ferrero-Waldner identified the completion of the next five ENP action plans (with Egypt, Lebanon, Armenia, Azerbaijan and Georgia), preparation of an ENP Country Report on Algeria and the smooth transition between the existing neighbourhood programmes (2005–06) and the new cross-border co-operation programmes (2007–13) as priorities for 2006. The Council supported Ferrero-Waldner's assessment and also highlighted the importance of reviewing the implementation of existing action plans.

EU/Africa

The Council discussed the EU-Africa strategy. The Council agreed that the strategy would play a crucial role in directing clear and substantive EU engagement with Africa in coming years. The Council agreed the strategy and submitted it to the European Council.

Ethiopia/Eritrea

The Council discussed the deterioration of the situation in Ethiopia-Eritrea over the last few months and the recent Eritrean request that European and North American members of the UN Mission in Ethiopia and Eritrea (UNMEE) should be withdrawn. The presidency noted that an EU mission, led by my noble Friend the Minister for Africa (Lord Triesman of Tottenham), would visit the region on 17 December. Council conclusions were agreed, calling for co-operation with UNMEE and early progress on border demarcation.

Middle East Declaration

The Council directed officials to continue working on the draft of a Middle East declaration in advance of the Foreign Ministers' dinner on 15 December.

AOB—EU/ASEM/Burma

Some member states raised the issue of Burmese representation at EU/Asia-Europe meetings.

We have received the Annual Report and Accounts of the Medicines and Healthcare Products Regulatory Agency for 2004–05 which has been laid before Parliament today in accordance with the requirements of sections 5(2) and 5(3) of the Exchequer and Audit Departments Act 1921. Copies have also been placed in the Library.

The Home Office autumn performance report 2005 has been published today by Command of Her Majesty. Copies of the report are available in the Vote Office and in the Library. The report is also available on the Home Office website.

The report sets out the progress we have made towards achieving our public service agreement targets.

The report shows that we have made significant progress against our targets. Overall crime is down by 12 per cent., and the fear of crime has fallen. In the year to September 2005 we have brought 1.194 million offences to justice, exceeding our target for 2005–06. Police performance has improved, but there is still much to do in reforming the police services, to meet operational requirements and the public's expectations. Our drugs strategy continues to deliver real benefits to communities across the country with record numbers of drug misusing offenders entering drug treatment through the Criminal Justice System, and falling drug related crime. Asylum remains under control, with sustained falls in those not only claiming asylum but also those whose claims are unfounded.

I am today announcing the results of our recent consultation exercise on the immigration provisions for religious workers from abroad.

It has long been the case that we have recognised that religious communities in the UK can face difficulties in recruiting sufficient numbers or suitably trained personnel from within the resident labour market. Therefore there are longstanding provisions in the immigration rules which enable faith communities to recruit religious personnel from overseas.

However, it is important that these provisions balance the needs of faith communities with the twin aims of maintaining community cohesion and maintaining an effective immigration control and we have been working with faith communities over the last couple of years to ensure these aims are met.

Since the White Paper "Secure Borders, Safe Haven" was published in February 2002 we have held two separate consultation exercises with faith communities about our immigration provisions. As a result of the first consultation, since August last year all those applying for leave as a Minister of Religion have had to demonstrate that they speak English so that they can speak to and for their communities. At the moment this is to a basic level (level four of IELTS), but we announced at the time that this will be raised to the standard of a competent user of English (level six IELTS) in August 2006. Also as a result of the first consultation, some migrants already in the UK have been able to change the basis of their stay to be recognised as a Minister of Religion.

We recently completed a second stage of consultation on the skills needed to practise ministry in a diverse and cohesive society. The consultation ran from March to July this year, and asked faith communities for their views on pre-entry qualifications for those entering the UK for religious employment and on civic knowledge tests for those who have been in the UK for at least a year. Due to some concerns raised, we also asked for views on the impact of the English language requirement on religious workers in non-pastoral roles.

The Under-Secretary of State for the Home Department, my hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins), the Minister with responsibility for faith issues, and I have now fully considered both the written responses to this consultation and would like to announce the following measures:

Firstly, we will be introducing a pre-entry qualification requirement for religious workers from abroad. This will mean that any overseas national seeking to enter the UK to perform religious duties will have to demonstrate that their community considers that they are suitably qualified to perform these duties.

The faith communities themselves support this approach. We recognise that different faith groups have very diverse standards to assess who is qualified to work in their community, and we will be working with them on the best way of introducing such a requirement. For this reason, the pre-entry qualification will not be introduced now, but as part of the implementation of the new points based system for managed migration.

Secondly, I will introduce a new category within the Immigration Rules for religious workers in non-pastoral roles. This category, which is being laid before Parliament today and will come into effect on 9 January 2006, will enable religious communities in the UK to recruit the personnel they need from abroad. Many faiths require a range of personnel to perform religious rites in their community but who do not have a pastoral role. This new category caters for such workers. The requirements of the new category reflect the roles that these people will fill. For example, Ministers of Religion preach to their congregation and therefore are required to speak English, but those coming to the UK under the new category will have a non-pastoral role and will not be required to speak English. Following discussions with the faith communities, they will not be eligible to stay in the UK for more than two years.

I have also taken this opportunity to clarify the provisions for certain religious workers who have previously been able to come to the UK for short periods as visitors by including them within this new category.

The recent consultation also proposed a post-entry civic knowledge test for Ministers of Religion from Abroad, which would apply at the point at which the individual applied for an extension of their stay, normally after one year. However, since then we have introduced an equivalent test for all those applying for British citizenship. We have also published proposals for changes to the requirements for settlement, to include a civic knowledge test, as part of our five-year strategy for asylum and immigration. Therefore we are not proposing introducing a civic knowledge test for Ministers of Religion from Abroad at this stage, but will consider the issue again in the context of these subsequent changes.

Both changes I announce today recognise the needs of the faith communities and their concerns about ensuring that overseas nationals have the skills needed to practice their ministry in the UK's diverse society. They also balance this with the aims of community cohesion and a robust and effective immigration control. We will continue to work with the faith communities on these issues.

I have today published a consultation paper setting out the Government's proposals for streamlining and modernising the licensing system for operators of heavy goods vehicles and public service vehicles. Copies have been placed in the Library of the House.

The proposals take forward our commitment in the White Paper "The Future of Transport" to provide better regulation of the road haulage and passenger transport industries.

The three key changes proposed in the consultation are:

New arrangements for holders of more than one licence,

A revised fee structure,

The abolition of vehicle discs and margin concession for goods vehicles.

These will simplify procedures, reduce administrative burdens but maintain safety standards. They will also build on administrative improvements already made by the Vehicle and Operator Service Agency (VOSA).

The consultation closes on 31 March 2006. If the proposals are supported by the various stakeholders implementation would take place during 2006–07.

Further information is available from the Departmental website at www.dft.gov.uk