Written Ministerial Statements
Monday 27 February 2006
Treasury
Tax Avoidance
Legislation to prevent companies making arrangements in order to obtain corporation tax relief in the UK for losses of a company established outside the UK will be introduced in the Finance Bill 2006. The legislation will apply to claims for loss relief by UK resident companies, and UK branches of companies which are not UK resident, and will deny loss relief in the UK where there are arrangements which either result in losses becoming unrelievable outside the UK that were otherwise relievable, or give rise to unrelievable losses which would not have arisen but for the availability of relief in the UK, if the main purpose or one of the main purposes of those arrangements is to obtain UK relief.
The legislation will have effect from 20 February 2006. A press notice issued by HM Revenue and Customs (HMRC) on that date giving the relevant background to, and further detail on, this measure was deposited in the Libraries of both Houses on 20 February 2006 and is also accessible on HMRC's website.
Tax Law Rewrite Project
I am pleased to tell the House that the Government's tax law rewrite project will soon reach another major milestone. Her Majesty's Revenue and Customs will shortly publish a draft of the project's fourth Bill, the Income Tax Bill, which will in practice complete the rewrite of income tax. More specifically, it covers the core provisions of income tax, the mechanics of the tax computation and a variety of reliefs and other provisions. It is planned to introduce the Bill in Parliament by the end of 2006. The project's three previous Bills were enacted as the Capital Allowances Act 2001, the Income Tax (Earnings and Pensions) Act 2003 and the Income Tax (Trading and Other Income) Act 2005.
Earlier versions of the legislation in this new Bill have been revised in the light of comments and suggestions from tax professionals and other interested parties. There has been extensive dialogue on them between the project team and business interests, tax practitioners, the legal profession and HMRC specialists.
ECOFIN: 14 February 2006
At its meeting of 14 February 2006 the Economic and Financial Affairs Council (ECOFIN) adopted opinions on the stability programmes of Belgium, Luxembourg and Austria and on the convergence programmes of Estonia, Latvia and Slovenia.
ECOFIN discussed the Commission's annual progress report on the Lisbon agenda and held a first debate on the ECOFIN key issues paper for the spring European Council.
The Council discussed the role the European Investment Bank can play in promoting jobs and growth.
ECOFIN examined a report from the Economic Policy Committee on the impact of ageing populations on the sustainability of public expenditure and agreed Council Conclusions on the basis of that report.
ECOFIN was de-briefed on a Conference held on 6–7 February to discuss VAT fraud issues.
The Council was briefed on a forthcoming Conference on innovative methods of financing for development.
The Economic Secretary to the Treasury, represented the UK.
Constitutional Affairs
"Hearing the Relatives of Murder and Manslaughter Victims"
My right hon. and noble Friend the Secretary of State and Lord Chancellor (Lord Falconer of Thoroton) has made the following ministerial statement:
"On 1 September 2005 we published a consultation paper 'Hearing the Relatives of Murder and Manslaughter Victims'.
Our consultation paper outlined proposals for piloting ways of providing improved assistance to bereaved relatives of homicide victims by:
improving advice and support to relatives during the criminal justice process, and;
helping bereaved relatives make an oral statement to the court after conviction but before sentencing about the effect of the crime on them.
The consultation closed on the 30 November 2005. In total we received 87 responses. The overall number of returns was sufficient to provide a good cross section of views on the proposals from stakeholders across the legal profession, the criminal justice system, victims' organisations, relatives of victims of murder and manslaughter and members of the public.
The consultation provided firm support for the Government's aim to put the needs of victims at the heart of the criminal justice system. Many respondents supported efforts to improve the information and support given to relatives throughout the criminal justice process. Respondents supported the Government's proposals for the courts to be better informed about the impact of the crime on the relatives of murder and manslaughter victims. Families of victims and victims' groups, as well as many within the criminal; justice system, welcomed proposals to give victims a real voice in court, including allowing them to make an oral statement to the court after conviction but before sentencing. We published a summary of the responses on 23 February 2006.
In the light of the consultation exercise, we have decided to pilot victims' advocates in five Crown Court centres starting in April. The pilots will cover those bereaved by murder and manslaughter within a 12 month period. Pilots will take place at Birmingham, Cardiff, the Central Criminal Court, Manchester Crown Square and Winchester.
Copies of the summary of responses to the consultation paper have been placed in the Libraries of both Houses. Copies are also available on the Department for Constitutional Affairs' and the Criminal Justice System's websites www.dca.gov.uk and www.cjsonline.gov.uk".
Culture, Media and Sport
FA Cup Final
On 21 February 2006, the Football Association (FA) confirmed that the venue of the 2006 FA Cup Final will be the Millennium Stadium in Cardiff rather than, as everyone had hoped, Wembley Stadium.
Although Multiplex, the builders, are working hard to finish Wembley Stadium as quickly as possible, it is the FA's judgment that the risk that it may not be ready to host the Final itself is just too great. I therefore welcome the FA's decision to put in place now a firm arrangement on which fans can plan and avoid any further speculation or uncertainty.
Wembley Stadium is a huge and complex project; it will be the best stadium in the world and a great piece of construction engineering.
Millions of people will enjoy Wembley Stadium and the whole country will take pride in it.
Women and Work Commission
I am pleased to inform the House that today the Prime Minister received the final report of the Women and Work Commission: "Shaping a Fairer Future". The Women and Work Commission was launched on 27 September 2004 as an independent taskforce, chaired by Baroness Prosser, to make recommendations to the Government on tackling the pay and opportunities gap between men and women.
The Commission proposes a wealth of practical ideas on how to close the gender pay and opportunities gap. These are founded on a thorough analysis of all the available evidence. The Commission has described a complex problem which requires progress on a number of fronts. This is an imperative, not least because of the waste of women's skills and potential and the negative impact this has on the UK economy. We must also remove the unfair disadvantages women face, in our quest for social justice. The Government are determined to take action to address all causes of the pay gap highlighted in the report.
Copies of the report have been placed in the Libraries of the House. Further announcements on specific actions will be made in due course.
Foreign and Commonwealth Affairs
Zimbabwe
The General Affairs and External Relations Council decided on 30 January to renew the European Union's sanctions against the Government of Zimbabwe, with effect from 21 February, for a further 12 months. The European Union's sanctions are an arms embargo, and a travel ban and assets freeze on Mr. Mugabe and leading members of his regime. The renewal of these measures sends a powerful message of the European Union's continued concern about the erosion of democracy, respect for human rights and the rule of law in Zimbabwe. The European Union's measures are specifically targeted against the Mugabe regime rather than the economic interests of ordinary Zimbabweans. Indeed, the European Union and its member states continue to provide considerable humanitarian aid to ordinary Zimbabweans. The United Kingdom is one of the three largest cash donors to Zimbabwe, alongside the European Union and the United States, providing £38 million in the 2005–06 financial year on humanitarian assistance and tackling HIV/AIDs.
In the last 12 months the situation has deteriorated, with two flawed elections, further human rights abuses, woeful economic mismanagement, an unchecked food crisis, and country-wide destruction of informal settlements and markets, affecting more than 700,000 people. These developments have created growing international concern, with the United Nations, European Union, African Union and neighbouring states seeking an urgent resolution of the crisis. Sadly, Mr. Mugabe's policies continue to damage his country. In the last few weeks his regime has underlined its contempt for basic human rights and for the welfare of its people. They have launched a sustained programme of intimidation against an independent radio station, Voice of the People, and are preventing journalists, for both foreign media organisations and Zimbabwean newspapers, from legally carrying out their work. There has been a renewed campaign of violent land seizures, including for the first time in urban areas, aimed to benefit Mr. Mugabe's cronies. There have also been attacks on opposition-led local councils. Most recently they have arrested hundreds of women and children taking part in peaceful demonstrations. We are strongly concerned by these developments. A free media is essential to the healthy development of any country, and media repression is the hallmark of regimes attempting to hide their failings. Continued land seizures destroy Zimbabwe's agricultural productivity, and underline Mr. Mugabe's contempt for property rights and the rule of law. Vibrant and independent local government, and the right to freely express views through peaceful demonstrations, are the building blocks of healthy democracy.
We call on the Government of Zimbabwe to respond without delay to the concerns set out by the international community, including the United Nations, European Union and the African Commission on Human and People's Rights. The Government of Zimbabwe needs to demonstrate commitment to the restoration of democracy, respect for human rights and the rule of law, and the pursuit of sustainable economic policies. We will continue our pressure on the Government of Zimbabwe to reform, and will continue to provide support for the long-suffering Zimbabwean people.
Boris Berezovsky
Russian citizen Boris Abramovich Berezovsky was granted asylum in the UK in 2003, as is public knowledge. The grant of asylum to Mr. Berezovsky was made after due assessment by the relevant authorities of his case and of the UK's obligations under the 1951 UN Convention on refugees and domestic law. He did not enter the UK at the invitation of Her Majesty's Government. A grant of asylum does not imply support from the UK Government for an individual's views, activities or statements.
We are aware of the comments made by Mr. Boris Berezovsky in an interview on 24 January. Advocating the violent overthrow of a sovereign state is unacceptable and we condemn these comments unreservedly. The UK Government respects Russia's constitutional arrangements and the territorial integrity of the Russian Federation. We enjoy a close working relationship with Russia, as a valued partner of the UK.
Those granted asylum in the United Kingdom have duties to the UK which require in particular that they conform to its laws and regulations. They are advised that their refugee status can be reviewed at any time where it is considered their presence is not conducive to the public good. As we have made clear on many occasions, the UK Government will take action against those who use the UK as a base from which to foment violent disorder or terrorism in other countries.
Irish Sailors and Soldiers Land Trust
I am today announcing the winding up of the Irish Sailors and Soldiers Land Trust (ISSLT) in accordance with the Irish Sailors and Soldiers Land Trust Act 1987. The ISSLT was founded in 1922 to provide support for Irish First World War veterans and their dependants. In 1997 my predecessor gave direction to commence the final winding up of the Trust. This process has now been completed. The residual assets and liabilities of the ISSLT will now be taken forward by the Milibern Trust which has managed the day to day running of ISSLT holdings since 2001 and will continue to use the assets for the benefit of all Irish ex-service personnel in need and their dependants.
International Development
Gleneagles Implementation Plan for Africa
In my written statement of 12 December, I set out the Government's commitment to ensuring that the pledges on Africa and development made at the G8 Summit at Gleneagles in July are implemented. The Gleneagles implementation plan for Africa consists of the milestones that the Government believe need to be achieved, and I indicated that we would update this plan on a monthly basis. I am placing a copy of the first update in the Libraries. This highlights progress made against the milestones set for December and January, and also incorporates new milestones that have been adopted by the international community.
All the milestones for December and January have been achieved, with the exception of the implementation of the multilateral debt relief initiative by the African Development Bank (AfDB). This is now expected by July and the AfDB will apply debt relief retrospectively to January 2006. As expected the International Monetary Fund (IMF) implemented this initiative in January, and the World Bank will be implementing it in July.
EU Heads of Government agreed a new EU strategic partnership with Africa at the European Council in December. This provides a framework to guide Europe's activities as it increases its support to the continent.
The World Trade Organisation Ministerial in Hong Kong in December did not achieve as much as the Government would have wished. However, it did agree a deadline of 2013 for the elimination of agricultural export subsidies, and that developed countries should provide quota and duty free access to their markets for most products (97 per cent.) from least developed countries by 2008. Substantial new funds were also pledged to build developing countries' capacity to trade, including £100 million a year by 2010 from the UK.
The United Nations Peace Building Commission was established and the UK has been elected as a member. The United Nations Convention Against Corruption entered into force on 14 December, following ratification by 30 countries. The UK has sent its instrument of ratification to the UN on 30 January and ratified it on 9 February. A new Global Plan to Stop Tuberculosis was launched at the World Economic Forum in Davos.
My right hon. Friend, the Chancellor of the Exchequer, who attended the Forum, confirmed the Government's strong support for this Plan.
Two future milestones have been adjusted. The first is the bonds for the International Financing Facility for Immunisation (IFFIm) which are now likely to be launched in April rather than February, due to delays in finalising the legal documents with donors. The second is the Central Emergency Revolving Fund which is now expected to be launched in March, rather than February.
Northern Ireland
Priority Funding Packages
My hon. Friend the Minister of State for Northern Ireland (Lord Rooker) has made the following ministerial statement:
"The Northern Ireland Priorities and Budget 2006–08, launched on 14 December 2005, established three new ring-fenced Priority Funding Packages for: Children and Young People; Skills and Science; and Environment and Renewable Energy. These Funding Packages are worth some £48 million in 2006–07 and £58 million in 2007–08, and underpinned by a further £15 million and £34 million capital investment in those years.
The Priority Funding Packages will direct resources to services that make real differences to people's lives—in children and young people; in promoting long-term economic growth through investment in training and skills; and in protecting the environment by the research and development of new sources of renewable and clean energy. A fundamental aspect of these Funds
will be the integrated delivery of programmes and activities to ensure real and effective joined up thinking and working by the key Departments and Agencies involved.
Children and Young People
For children and young people some £28 million and £33 million will be available to ensure every child has the best start in life. This will include driving forward our policies in areas such as pre-school and extended/out of hours school based activities, childcare and Sure Start, along with measures to foster their health and well being. This will be a distinctive allocation of funding that will be used to make good the shortfall in provision for these key areas of support for families.
Skills and Science
We are already committed to significant investment in skills and training programmes for employment. We recognise the critical importance of ensuring a secure foundation for lifelong learning and employment. It is for this reason that £15 million next year and £20 million the year after will be available to tackle economic inactivity and to promote greater investment in skills and science training leading to employment—alongside investment in research and development.
Environment and Renewable Energy
The quality of life in the future will also depend on our children continuing to enjoy the same clean and healthy environment that we do. That means we need to take action now to support the development and use of renewable forms of energy.
An extra £5 million in each of the next two years will be allocated to encourage the research and development of renewable forms of energy; £10 million and £30 million over the next two years will also be available for capital investment in renewable energy. Capital investment of £5 million in 2006–07 and £4 million in 2007–08 will also be available to ensure the Warm Homes Scheme in Northern Ireland can be extended to match the commitments made for central heating for pensioners in England, as set out in the Chancellor's recent Pre-Budget Report.
On the 21 February I announced details of the Skills and Science Funding Package outlining the objectives and the range of activities which will be taken forward. I have today placed details of this Funding Package in the Library, together with details of the Environment and Renewable Energy Funding Package. I will place details of the Children and Young People's Funding Package in the Library on 7 March".
Work and Pensions
Discretionary Social Fund
The Secretary of State will be making a number of minor changes to the discretionary social fund, with effect from 3 April 2006. The improvements included in this amendment to directions and guidance has been made as a result of recommendations made in the Child Poverty Review.