As part of a review being conducted by Sir Gus O'Donnell, the Cabinet Secretary, into the role and functions of the Cabinet Office, the central operation and support functions for Directgov, and the 17 civil service posts providing them, will move to the Central Office of Information (COI) with effect from 1 April 2006.

COI already provides valuable support to Directgov and this transfer will provide a better longer-term location for this work including a wider pool of professional skills on which to draw. Nevertheless, Directgov remains key to Transformational Government, so strategic leadership will stay in the Cabinet Office.

It has been drawn to my attention that there was an inadvertent error in Budget Resolution 61. This resolution should have read as follows:

"That.

(1) Part 4 of the Finance Act 2003 shall be amended as follows.

(2) Section 64A shall be omitted.

(3) In section 101—

(a) in subsection (1) for "provisions" there shall be substituted "provision",

and

(b) in subsection (7) the words from "section 53" to "companies, or" shall be omitted.

(4) This resolution shall have effect in relation to any land transaction of which the effective date is, or after, 22 March 2006 (but see paragraphs (5) and (6)).

(5) This resolution shall not have effect in relation to—

(a) any land transaction which is effected in pursuance of a contract entered into and substantially performed before 2 pm on 22 March 2006 ("the relevant time"), or

(b) any other land transaction which is effected in pursuance of a contract entered into before the relevant time and which is not an excluded transaction.

(6) For this purpose, a land transaction effected in pursuance of a contract is an excluded transaction if—

(a) any provision of the contract has effect by reference to a unit trust scheme and the scheme is not established before the relevant time,

(b) at or after the relevant time the contract is varied in a way that significantly affects the land transaction (see paragraph 7),

(c) the subject matter of the land transaction is not identified in the contract in a way that would have enabled its acquisition before the relevant time,

(d) rights under the contract are assigned at or after the relevant time,

(e) the land transaction is effected in consequence of the exercise, at or after the relevant time, of any option, right of pre-emption or similar right, or

(f) at or after the relevant time there is an assignment, subsale or other transaction (relating to the whole or part of the contract's subject-matter) as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance to him.

(7) For the purposes of paragraph (6)(b) the contract is varied in a way that significantly affects the land transaction if (and only if)—

(a) it is varied so as to substitute a different purchaser in relation to the land transaction,

(b) it is varied so as to alter the subject-matter of the land transaction, or

(c) it is varied so as to alter the consideration for the land transaction.

(8) Expressions which are used in part 4 of the Finance Act 2003 and in this resolution have the same meaning in this resolution as in that part.

And it is hereby declared that it is expedient in the public interest that this resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968".

The corrected text will appear in today's Order Paper.

I would like to inform the House that we will disband 655 Squadron Army Air Corps (AAC), the Northern Ireland (NI) based Lynx light utility helicopter squadron, by April 2007. There are no military or civilian redundancies anticipated as a result of the disbandment.

This decision has been taken for two reasons. First, we need to reduce the size of the Lynx fleet (which will leave service in 2012). This will facilitate better focus of resources on sustaining and improving the remaining fleet until the arrival of its replacement in the form of the battlefield reconnaissance helicopter, which will be delivered as part of the future rotorcraft capability programme.

Secondly, the ongoing normalisation process in NI and the increasing ability of the Police Service of Northern Ireland to operate without military assistance means that the requirement for light utility helicopter support, currently provided by 655 Squadron AAC, is reducing and is expected to end completely by August 2007. The anticipated levels of aviation support required after April 2007 do not warrant the retention of a dedicated Lynx Squadron in NI beyond that date. Any residual requirement for helicopter support between April and August 2007 will be provided by other aircraft remaining in NI and mainland-based Lynx.

This decision means that we can reduce the size of the Lynx fleet, better focus our resources and still sustain the current six deployable squadrons of Lynx to support expeditionary operations.

I have today laid before the House a White Paper "Further Education: Raising Skills—Improving Life Chances" which sets out the Government's plans for the reform of further education.

There is much to be proud of in our further education system. We have many excellent colleges and training providers. Participation in education and training has risen significantly since 1997. Success rates are rising. Our 14–19 and skills strategies have set the country on the road towards a coherent, accessible, high-quality system of lifelong learning which meets the needs both of employers and of individuals.

But we cannot stand still. Major challenges remain if we are to ensure a high level skills base which matches and exceeds that of other high-performing economies. The FE sector is central to delivering the skills which are essential for economic success and which give individuals of all backgrounds and aspirations the basis for productive, sustainable employment and prosperity.

The White Paper sets out a comprehensive programme of change which will transform our FE system into a powerhouse of economic prosperity and social mobility. In developing our proposals, we have listened to the sector and the needs of its users, through Sir Andrew Foster's excellent review of the role of colleges and through widespread consultation with employers, providers and other key stakeholders. We have accepted, and are building on, the vast majority of Sir Andrew's recommendations.

Our plans will ensure:

A new economic mission for FE: the heart of the sector's role should be equipping young people and adults with the skills for employability which underpin both economic success and social mobility.

World class specialised vocational learning, driven by the needs of employers, including the strengthening of Centres of Vocational Excellence and the development of vocational sector networks.

Responsiveness to employers and learners: giving learners and employers greater say in the provision of education and training, more choices, and the tools to make the most of these opportunities. That includes expansion of work-based training to meet employer needs, and trialling a new accounts programme for adults.

New entitlements: introducing a new entitlement to free tuition and support to help 19–25 year-olds gain technician, associate professional and skilled trades qualifications at level 3, and over time and as resources allow we intend to extend this entitlement so that it can include programmes within the foundation learning tier that support progression through to level 2 and beyond.

New freedoms for high performing colleges, coupled with tougher, faster intervention to combat poor performance. Quality will be improved through new styles of delivery, including federations, collaborative partnerships, and trusts.

There will be a new quality improvement strategy offering an integrated approach to quality development and improvement across the sector.

Reduced bureaucracy and less regulation, and a new relationship with colleges which releases their energy, initiative and dynamism, whilst ensuring that they are accountable for their performance.

Opportunities both for new high quality providers to enter the system, and for existing providers with a strong track record to expand.

A funding system which is driven by the choices and needs of learners and employers. Within local authorities' strategic leadership role for children's services overall, local authorities and the LSC will work closely together to drive progress through a shared strategy for delivering the 14–19 entitlement in every area.

A fairer playing field for capital funding available to schools and colleges, and a capital strategy that delivers the 14–19 reforms and supports the plans set out in the White Paper.

New investment announced in this White Paper and by my right hon. Friend the Chancellor of the Exchequer last week will target the Government's priorities for FE including:

£25 million from 2007–08 to fund a 19–25 entitlement to first full level 3.

£11 million from 2007–08 to allow the full national rollout of the adult learning grant to be brought forward to 2007–08.

£11 million from 2007–08 for new programmes to recruit and train excellent staff for the FE sector.

£20 million to address the skills and training obstacles faced by women, as identified by the Women and Work Commission. That will extend support for women in training at level 3, expand the availability of skills coaches to support women in entering employment, and develop new recruitment routes into industries where women are under-represented.

These reforms will build a further education system fit to meet the challenges of economic and social change, and to achieve its full potential as the powerhouse of a productive, competitive economy and a just, inclusive society.

I wish to make a statement to the House informing members about the Gibraltar constitutional negotiations, which concluded successfully in London on Friday 17 March.

A joint statement by the UK and Gibraltar was made earlier today, which sets out the main provisions of the new constitution. The full text of the new constitution will be published in the coming weeks, and put to the people of Gibraltar in a referendum. If it is approved by them, it will then be given effect by Order in Council.

As I set out in my statement of 6 February 2004, the starting point for the work to modernise Gibraltar's 1969 constitution was the invitation in the 1999 White Paper "Partnership for Progress and Prosperity: Britain and the Overseas Territories" to OT Governments to submit proposals for constitutional reform. In July 1999, the Gibraltar House of Assembly constituted a Select Committee to report on constitutional reform. The Committee published its proposals in January 2002. We formally received them in December 2003. These proposals were subsequently discussed between delegations from the UK and Gibraltar in November/December 2004, September 2005 and March 2006.

The new constitution provides for a modern and mature relationship between Gibraltar and the UK. As I will make clear in the Despatch that I will send to the Governor at the time that the Order in Council is passed, it does not in any way diminish British sovereignty of Gibraltar. The UK will retain its full international responsibility for Gibraltar, including for Gibraltar's external relations and defence, and as the member state responsible for Gibraltar in the European Union. Gibraltar will remain listed as a British Overseas Territory in the British Nationality Act of 1981, as amended by the British Overseas Territory Act 2002.

The preamble to the new constitution will also make clear that the UK stands by its long-standing commitment that Gibraltar will remain part of Her Majesty's dominions unless and until an Act of Parliament otherwise provides, and furthermore that Her Majesty's Government will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes.

The new constitution confirms that the people of Gibraltar have the right of self-determination and that the realisation of this right must be promoted and respected in conformity with the provisions of the UN Charter and any other applicable international treaties. In the Despatch, I will note that, in the view of Her Majesty's Government, Gibraltar's right of self determination is not constrained by the Treaty of Utrecht except in so far as Article X gives Spain the right of refusal should Britain ever renounce sovereignty. Thus independence would be an option only with Spanish consent.

The remainder of the constitutional text introduces substantial reform and modernisation. The main elements include limiting the responsibilities of the Governor to the areas of external affairs, defence, internal security and the public service, thereby reversing the previous practice and giving Gibraltar much greater control over its internal affairs. The House of Assembly will be restyled the Gibraltar Parliament, and may determine its own size. The Governor's powers to withhold assent on laws passed by Gibraltar are streamlined and my power to disallow them is removed (although the power to make Orders in Council is retained). New commissions will be created to handle appointments in the judiciary and public service. The creation of a new Police Authority for Gibraltar will give Gibraltar a greater input into policing matters. Finally, the Human Rights chapter has been updated to bring it into line with the ECHR.

I have written to Miguel Angel Moratinos, the Spanish Foreign Minister, to clarify those matters of importance to Spain relating to this constitution.

I warmly welcome the text of the new constitution. I believe that it is a clear demonstration of our enduring commitment to the people of Gibraltar and that it represents the development of a modern, mature and appropriate relationship with the people of Gibraltar. I believe that the whole House will wish to commend it wholeheartedly to the people of Gibraltar.

I am placing copies of my letter to Spanish Foreign Minister Miguel Angel Moratinos and the UK/Gibraltar joint statement on the constitutional talks in the Library of the House.

My right hon. Friend the Foreign Secretary , Sir John Grant (UK permanent representative to the EU) and I represented the UK at the General Affairs and External Relations Council (GAERC) in Brussels on 20 March 2006.

The agenda items were covered as follows:

European Council, 23/24 March 2006

The presidency invited the Council to comment on the draft European Council conclusions. The European Council will focus on its annual review of the strategy for growth and jobs agreed at Lisbon in March 2000 and re-launched last spring.

The presidency agreed to issue revised conclusions in light of the Council discussion.

World Trade Organisation/Doha Development Agenda

Commisioner Mandelson briefed the Council on progress in the WTO Round following the G6 ministerial in London 10–12 March. The Commission would now look to increase contact with key partners and Mandelson called for member states' assistance in contacts with third countries.

Western Balkans

The Council adopted draft conclusions welcoming discussion at the EU-Western Balkans Informal Foreign Ministers' meeting in the margins of the Gymnich (EU Foreign Ministers' informal meeting) and renewing calls for Serbia and Montenegro to co-operate fully with the International Criminal Tribunal for the former Yugoslavia (ICTY).

Draft conclusions on Bosnia and Herzegovina reflected the need for her to fulfil Stabilisation and Association Agreement conditions (legislative and administrative capacity, police and public broadcasting reform and ICTY) as well as the need for progress on constitutional reform.

Iraq

The Council welcomed the inaugural session of the Council of Representatives on 16 March, noting efforts to form a Government of national unity.

The Council adopted a mandate authorising the Commission to begin to negotiate a Trade and Co-operation Agreement with Iraq as soon as a Government was in place.

Iran

The presidency noted that the UN Security Council was considering appropriate steps to strengthen the authority of the International Atomic Energy Agency (IAEA). High Representative Solana informed the Council that the Secretariat was working on a paper for the April Council on EU-Iran relations.

The Council adopted conclusions expressing concern at Iran's continuing failure to co-operate fully with IAEA while also underlining other areas of long-standing concern such as terrorism, Iran's approach to the Middle East Peace Process and respect for human rights. The conclusions also welcomed the recent release of Akbar Ganji, condemned his detention and treatment while in prison and called on the Iranian authorities to release all other prisoners of conscience immediately and unconditionally.

Middle East Peace Process

The presidency updated the Council on recent meetings with Egyptian President Mubarak and Palestinian President Abbas in Vienna.

High Representative Solana also briefed the Council on his assessment of the situation.

The Foreign Secretary briefed the Council on the withdrawal of UK and US monitors from the Jericho Monitoring Mission.

Sudan

High Representative Solana set out the case for continuing and strengthening EU engagement on Sudan/Darfur.

The Council adopted conclusions reiterating its deep concern about the deteriorating humanitarian and security situation in Darfur; welcoming the decision to extend the mandate of the African Union Mission in Sudan (AMIS) until 30 September 2006 and set a framework for a transition from AMIS to a UN operation in Darfur. On Abuja, the Council agreed the need for increased pressure on the parties to make more rapid progress.

Lebanon

Lebanese Prime Minister Fouad Siniora briefed the Council on the current situation in Lebanon, including the achievements of the national dialogue.

The Foreign Secretary and French Foreign Minister reiterated the EU's support for Prime Minister Siniora and his Government, in particular in implementing political, economic and security reforms.

The Council adopted conclusions reaffirming its full support for the Government of Lebanon, encouraging it to implement economic and political reforms and implement fully UN Security Council resolution 1559.

AOB—Belarus

The Council discussed the presidential election in Belarus on 19 March.

The Council agreed with the assessment of the OSCE/ODIHR Election Observation Mission that the election was severely flawed; agreed to begin urgent consideration of restrictive measures against those responsible; and urged the Belarusian authorities to allow the people of Belarus to exercise their right of assembly and freedom of expression.

AOB—Democratic Republic of Congo (DRC)

The Council discussed a response to the UN request for EU support to the UN Mission in DRC (MONUC) during the forthcoming electoral period. High Representative Solana briefed the Council on his recent meeting with President Kabila where the latter accepted, in principle, the deployment of a small EU force.

There was general agreement among partners to respond positively to the UN request. The presidency agreed to take planning forward on this basis.

In April 2004 my predecessor required the Independent Police Complaints Commission (IPCC), under section 79(1) of the Police Act 1996, to undertake a review of the circumstances surrounding the death of Mr. Christopher Alder. This was in response to continuing concerns from Mr. Alder's family. Hon. Members will recall his tragic death in police custody at Queen's Gardens police station in Hull during the early hours of 1 April 1998 with his last moments of life captured on CCTV.

I am today laying the report of the IPCC review before Parliament as I am required to do under section 79(5) of the Act. I would like to thank Nick Hardwick, Chair of the IPCC, and his team for his thorough review, and for his findings and recommendations. The IPCC sought the assistance of the Health Care Commission in assessing the standards of medical care which Mr. Alder received and a summary of the HCC conclusions is provided at annex 8 to the IPCC report. I understand that separate arrangements are being made to publish their report today.

There are criticisms of individual officers for their handling of Mr. Alder when they arrived at the scene of his assault, at the hospital to which he was taken and at the police station. They are criticised for some of the accounts of their actions which the IPCC, having reviewed the evidence, does not accept. They are criticised as public servants for not cooperating with the review, although I acknowledge that this was their right.

The IPCC find that unwitting racism was a factor in Mr. Alder's treatment measured against the standards subsequently established by the Macpherson report and the guidance issued by the former Police Complaints Authority (PCA). They acknowledge that Humberside police have made progress on racial awareness since. I return to this.

The former Deputy Chief Constable of Humberside police is criticised for his decision that there should be no legal representation available to the parties at the disciplinary tribunal which was set up to hear the charges against the five police officers, which had the effect of reducing the disciplinary sanctions available to the tribunal. In the absence of legal support the current Chief Constable of Cleveland, who approached his responsibilities properly, mistakenly accepted a submission that there was no case to answer.

The West Yorkshire investigation into Mr. Alder's death, which was supervised by the PCA, is criticised as being inadequately resourced and directed.

Additionally, there is criticism of Humberside police for not having apologised to the family of Christopher Alder for his treatment.

The IPCC find that support for the family was mishandled. There is criticism of the police and, to a degree, of the PCA for the level of support provided to the family (though it is acknowledged that things would be better handled these days). Lancashire Constabulary, one of whose officers passed on incorrect information to Mr. Alder's sister, gets passing criticism.

On the other hand, the review found no reason to believe that the police assaulted Mr. Alder, used CS spray against him or that his sister was subsequently harassed by Humberside police. It finds no evidence that Humberside deliberately mishandled their investigation, nor reason to criticise the handling of the failed prosecution of the police officers. It dismisses the suggestion of police cover up of evidence of racist banter. Any failings in the West Yorkshire investigation were not deliberate or malicious.

The IPCC is satisfied on the basis of its review that there is no need for a further inquiry.

The IPCC makes a number of recommendations. At this stage I wish to focus on three areas:

The police service response to racism following the Macpherson report;

efforts to improve the standards of care for those coming in to police custody; and,

plans to improve the police disciplinary process.

I found particularly disturbing the conclusion Mr. Hardwick reaches regarding the officers' "unwitting racism" in their treatment of Mr. Alder. However, I am confident that since Sir William Macpherson's inquiry into the tragic death of Stephen Lawrence in 1999, all police forces have taken steps to eradicate racism within the police service. However, we must not lose sight of the continuing need to ensure that those in the public service who serve their communities do so to the highest professional standards

The Home Office, the Association of Chief Police Officers, the Association of Police Authorities and Centrex published "A Strategy for Improving Performance in Race and Diversity 2004–09" in November 2004. Also in November 2004 the Association of Police Authorities issued guidance on Involving Communities in Police Learning and Development.

The strategy is the product of extensive consultation and sets out a five year strategy for the Police Race and Diversity Learning and Development Programme. The strategy builds upon recommendations made in Her Majesty's Inspectorate of Constabulary's (HMIC's) report "Diversity Matters" and responds to two independent reports commissioned to quality assure, and examine the effectiveness of, community and race relations (CRR) training. The strategy is fundamentally different from the previous approach to CRR training. Race necessarily remains the primary focus but the strategy expands the area of work to include other aspects of diversity: gender, sexual orientation, disability, age and religion and belief. It extends to police staff and to the wider police family, including special constables and police community support officers (PCSOs).

The strategy is not just restricted to training and is linked to other police learning and development programmes, including the initial Police Learning and Development Programme, the Core Leadership Development Programme and the Senior Leadership Development Programme.

Much hard work has been put into improving the care and custody of people in police detention since this tragedy, and eight years on a number of important changes have been made

The safer detention guidance, published on 8 February 2006, requires that before accepting a detainee to return to custody, the escorting officers should request that the doctor immediately in charge of the detainee or the A&E manager provide clear written advice to inform the detainee's care plan. The custody officer must consider any requirement for a healthcare professional to see them in person on return from hospital. The healthcare professional must be called for certain aspects of illness which are set out in the guidance. The police healthcare project, a joint project being developed by the Home Office and the Prison Service, will look to develop national agreements for local implementation.

Improved police disciplinary arrangements are being considered in the context of work being taken forward in response to the Taylor report; a code of professional standards and an improved discipline procedure are being formulated. A proposed draft code and guidance have already been drawn up and are currently open to public consultation. It is our commitment to provide the Police Advisory Board for England and Wales with draft policy proposals in July.

I am confident in the ability of the police service and of the Chief Constable of Humberside police to respond positively to the IPCC findings.

There have been calls for a public inquiry into Mr. Alder's death which have been resisted. There has been an investigation, an inquest, criminal trial, internal disciplinary hearings and now this independent review. I agree with Mr. Hardwick when he says that a further investigation would not add anything of substance. This review contains a detailed account of all of the circumstances surrounding the death of Christopher Alder. I hope that the findings go some way to answering their questions and concerns and can bring them some closure to this tragic case. Our thoughts are with them today.