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Written Statements

Volume 473: debated on Tuesday 18 March 2008

Written Ministerial Statements

Tuesday 18 March 2008

Treasury

Northern Rock

As I have previously announced, continuing to support Northern Rock will require the approval of the European Commission under state aid rules. On 5 December 2007, the European Commission announced that it had authorised, under state aid rules, the Government’s package of measures to support Northern Rock. Also in line with the rules, the Government were obliged to notify by 17 March 2008 a restructuring plan for Northern Rock.

Accordingly, the Government yesterday formally notified the European Commission of their proposals to continue to provide state aid to Northern Rock to support a restructuring of the company during the period of temporary public ownership.

The Board of Northern Rock is today setting out in general the future direction of the business during the period of temporary public ownership. The company will submit a final business plan to HM Treasury for approval by the end of March. Thereafter, I will report to the House further.

I have placed in the Library of the House a copy of the statement issued today by Northern Rock. This sets out the basis for the removal of Government support through the creation of a smaller, more focused, financially viable mortgage and savings bank, which will be returned to the private sector.

On this basis, the Government’s state aid notification sets out that Northern Rock's future will be based around four strategic priorities:

Contracting to a smaller, sustainable business through a reduction of around half in the asset base by 2011, whilst maintaining a modest level of new loan origination.

Progressive repayment of the Bank of England loan and release of the Government guarantees over the next three to four years, while increasing the level of retail deposits modestly to form a larger share of total funding.

Restructuring the organisation and its operations so that these are aligned to the business objectives. The company’s initial assessment is that this will involve staffing levels falling by around a third by 2011, with the majority of the reduction likely to occur in the first year. The final figure will depend on the business plan ultimately adopted, and the evolution of the business in the light of market and economic developments.

Strengthening risk management in key business areas.

Northern Rock has said that it is committed to doing all it can to communicate openly with staff and provide the best possible support through the changes ahead, including working closely with UNITE and other employee representatives. The bank proposes to provide outplacement services to help affected staff find alternative employment in the region, working closely with local agencies.

The Government are mindful of the impact on the employees of this important regional employer and will support the implementation of the plan. To help those people affected I have asked the chief executive of the Regional Development Agency, ONE NorthEast, to lead the Government’s response. ONE NorthEast have already begun constructive discussions with Northern Rock and will work with local authorities, Jobcentre Plus, Business Link NorthEast, the Learning and Skills Council and Northern Rock’s management to co-ordinate the Government’s support for those involved.

As set out in Budget 2008, the Bank of England financing arrangements for Northern Rock will remain in place for an interim period, and will be replaced by a direct Treasury loan over the course of 2008-09. The Government will set out the arrangements for the repayment of the loan when the business plan is finalised.

The existing Government guarantee arrangements remain in place. Depositors’ money continues to be safe and secure.

I will continue to keep the House informed and will report further when the business plan is completed.

Children, Schools and Families

Youth Taskforce Action Plan

Today I am publishing the action plan for the youth taskforce. The youth taskforce in my Department was created in October 2007 from the respect task force to build on Government’s success in tackling antisocial behaviour. Copies will be placed in the Libraries of the House.

The new taskforce will concentrate on the minority of young people who get into serious trouble, including anti-social behaviour, and cause serious problems in their neighbourhoods. It will work with local partners—children’s services, the police, schools and community safety teams—to ensure that across the country every area has an effective approach for dealing with young people in serious difficulty.

The approach needed to change young people’s behaviour and deal with the problems that concern communities, must combine:

tough enforcement where young people’s behaviour is unacceptable

non-negotiable support to help young people overcome underlying problems where they have arisen

prevention to ensure we are dealing with emerging problems before they become serious and entrenched

Working with the Home Office—which retains responsibility for the overall response to antisocial behaviour—and other Departments across Government as well as local areas, the youth taskforce will help to ensure that young people and their families get the right package of intervention, challenge and support not only to curtail bad behaviour but to change it.

This action plan sets out 18 commitments it will deliver, and a total funding package of up to £218.5 million. Key measures include:

New intensive intervention projects to address the most challenging young people. We will apply the principles used successfully in family intervention projects (FIPs) to the most challenging and antisocial young people. Over 80 per cent. of families involved in a FIP reduced or ceased antisocial behaviour. I will invest £13 million over three years to establish 20 pioneering schemes to turn round the lives of around 1,000 of the most challenging young people each year.

New early intervention “challenge and support” projects. These projects will systematically identify young people involved in or at risk of antisocial behaviour and crime, and intervene early to nip problems in the bud. Help will be offered, but will not be optional—where necessary tools like parenting orders and individual support orders which are court orders will be used to make individuals take the help they need. I will invest £13 million over three years to work with around 15,000 young people involved in or at risk of anti-social behaviour per year.

Continued investment to support local services to tackle antisocial behaviour. Over the next three years, the Government will continue to invest more than £100 million to support action to tackle antisocial behaviour: antisocial behaviour teams in every area; the successful national network of family intervention projects tackling the most anti-social families; and parenting experts working with families of young people behaving badly.

Help every local authority area put in place the targeted youth support reforms by December 2008. The youth taskforce will put additional resources into reforming support services for at risk teenagers in England. This will enable local authorities to identify vulnerable young people early, provide swift support to stop problems from escalating, and ensure young people receive joined-up, effective support and challenge through multi-agency teams. I will invest £5 million to provide expert support from the Training and Development Agency (TDA) to help local areas implement the reforms, with most help to those areas facing the greatest challenges.

Increase young people’s participation in positive activities. I set out in “Aiming High for Young People: A Ten Year Strategy for Positive Activities” the importance of enabling young people to take part in constructive activities in their leisure time. Well-supported activities also increase community cohesion by bridging gaps between young and old, and between different income, ethnic and faith groups. The taskforce will support implementation of “Aiming High” by working with 50 local areas to target activity and invest £22.5 million next year to increase young people’s participation in activities in the most deprived areas, and to make sure facilities are there, and open at the times young people and communities need them—Friday and Saturday nights.

Helping every parent do their best for their child. In the children’s plan I made clear that the state does not bring up children—parents do. But parents are a key influence and I am making extra help available to ensure they meet their responsibilities. I will invest up to £60 million to expand the successful parenting early intervention pathfinders. These projects have improved the support available for parents of children aged 8-13 at risk in 18 areas across the country. They have almost halved the number of parents who considered their children have significant behavioural difficulties. We will expand this programme over the next three years to the majority of local authorities, to reach over 18,000 people each year and ensure that more parents receive the support they need to help with their child’s behaviour.

Communities and Local Government

Building Control System

I am today publishing a consultation document on proposals for the future development of the building control system.

Home owners have the right to expect their homes to be built and renovated to minimum standards set out in building regulations. I want to make life more difficult for the cowboy builders that are out there whilst letting the high quality majority of the industry get on with the job. This should reduce the cost and burden of the process on both the industry and local authorities.

The building control system is critical to our ability to deliver a range of wider aims on housing supply, sustainability and other key health and safety related issues. Following discussion with stakeholders over the last two years it has become apparent that while the system is not broken, there are a number of issues which needed to be addressed to ensure that the system is fit for purpose now and in the future.

This consultation document also ensures we have a customer-focused building control system in which industry is able to plan with certainty and which is fully able to support the delivery of our housing supply and zero carbon housing targets in a way which delivers high levels of compliance at a reduced burden to industry and other stakeholders.

This consultation follows the paper published in March 2007 which set out the key areas for reform that we believed had the potential to address the main weaknesses in the system.

The proposals fall into the following five areas:

developing a vision for building control

establishing a better approach to the way we deliver regulations and guidance

modernising inspection and enforcement

providing alternative routes to compliance

enabling improved performance and capacity

The consultation is accompanied by impact assessments. Copies are available in the Libraries of both Houses, or it can be accessed via the Communities and Local Government website at: www.communities.gov.uk/futurebuildingcontrol

Consultation closes on 10 June 2008.

Environment, Food and Rural Affairs

Agriculture and Fisheries Council

I am representing the United Kingdom at this month's Agriculture and Fisheries Council in Brussels.

The presidency hopes to adopt Council conclusions on the Commission’s communication “Preparing for the ‘Health Check’ of the CAP Reform”. And it is also likely that the Commission’s proposal to increase milk national quotas by 2 per cent. will be adopted.

The following issues will be raised under any other business:

The Agriculture Commissioner will provide an update of the agricultural strand of WTO-DDA negotiations. France will table a memorandum for debate on competition policy in agriculture to address the organisation of the agrifood sectors.

Ireland will express concerns about the future development of the sheep sector. Poland will ask the Commission for a further extension of market support measures to alleviate the difficulties currently being experienced in the pigmeat sector.

Foreign and Commonwealth Office

FCO Services (Performance Targets)

My noble Friend Lord Malloch-Brown has made the following written ministerial statement:

FCO Services will become a trading fund of the Foreign and Commonwealth Office (FCO) on 1 April 2008.1 have set the following performance targets for 2008-09:

An in-year surplus before interest and tax of at least £1.3 million.

A return on capital employed of at least 3.5 per cent. (weighted average).

A wider market revenue growth of 10 per cent. on that achieved in 2007-08, assessed on a normalised baseline.

A customer satisfaction rating derived from an independent, quantitative survey of at least 85 per cent. satisfied or very satisfied.

A utilisation rate of revenue earning staff of at least 65 per cent.

A contribution to the FCO’s comprehensive spending review commitments by delivering £2 million of cash savings, achieved through price stabilisation.

FCO Services will report to Parliament on its success against these targets through its annual report for 2008-09.

General Affairs and External Relations Council

My right hon. Friend the Foreign Secretary, my hon. Friend the Parliamentary Under-Secretary of State for Trade and Consumer Affairs, the Member for Harrow, West (Mr.Thomas), and I represented the UK at the General Affairs and External Relations Council (GAERC) in Brussels on 10 March 2008.

The agenda items covered were as follows:

General Affairs

Preparation of the European Council

The Council discussed preparations for the European Council on 13 and 14 March. The European Council will focus on the launch of a new three-year cycle of the EU’s strategy for growth and jobs; an integrated climate and energy policy; and the stability of financial markets.

My right hon. Friend the Foreign Secretary supported the presidency’s focus on delivering for the EU’s citizens, and agreed with the priorities identified for action, particularly in taking forward the EU’s commitment to delivering on the ambitious climate change goals set last year at the spring European Council and the need for the EU to lead wider international work towards a comprehensive climate change agreement for the post-2012 period.

My right hon. Friend the Foreign Secretary emphasised the need for urgency from the European Council on delivery of the EU’s ambitious climate change goals; in particular, a mechanism to deliver the carbon capture and storage demonstration plants promised by the 2007 spring European Council; and the centrality of ETS to tackling climate change. He also stressed the importance of Europe not retreating into economic protectionism.

External Relations

Doha Development Agenda

Commissioner Mandelson updated the Council on prospects for negotiations on the World Trade Organisation’s Doha Development Agenda (DDA).

The Government agreed Council conclusions that reaffirmed the importance of achieving a comprehensive, ambitious and balanced final outcome in all areas of the DDA, that would meet both the EU’s objectives and the needs and interests of developing countries, in particular the least developed countries (LDCs). My hon. Friend the Parliamentary Under-Secretary of State for Trade and Consumer Affairs supported the Commission’s efforts to move the DDA negotiations forward. The Council agreed that the GAERC should convene a special meeting to coincide with possible WTO ministerial negotiations in Geneva.

Georgia

Ministers had an exchange of views on the EU’s co-operation with Georgia, and discussed the EU’s provision of support for electoral reform, which the Government support, in the run-up to parliamentary elections in May 2008.

Zimbabwe

The Government agreed Council conclusions that underlined the EU’s concerns about the humanitarian, political and economic situation in Zimbabwe and conditions on the ground; urged the Government of Zimbabwe to ensure that the forthcoming elections meet international norms and standards; and welcomed President Mbeki’s mediation efforts on behalf of the Southern African Development Community (SADC).

I intervened to underline that the conditions for forthcoming elections were extremely poor and to regret that the EU had not been invited to send observers.

Iran

Foreign Ministers had an exchange of views following the adoption of UN Security Council Resolution 1803. Ministers agreed that UNSCR 1803 clearly indicated that the international community remained united on the issue of Iran’s nuclear ambitions. My right hon. Friend the Foreign Secretary underlined the importance of the EU maintaining pressure on Iran to comply with its international obligations.

Middle East Peace Process

High Representative Solana briefed Ministers on his visit to the region on 2 to 5 March. The EU expressed concern at the worsening situation, following the recent escalation of violence in Gaza and southern Israel, as well as the six March killings at a Jewish seminary in Jerusalem.

Ministers also expressed concern about the recent approval of settlement activity by the Israeli Government at Givat Ze’ev. The EU continues to make it clear that settlement building anywhere in the occupied Palestinian territories is illegal under international law and presents an obstacle to peace.

Western Balkans

Over lunch, Foreign Ministers discussed recent developments in Kosovo and the Western Balkans.

The Council agreed conclusions on Bosnia and Herzegovina (BiH), welcoming the unanimous decision of the Peace Implementation Council Steering Board to keep that the Office of the High Representative should remain in place until the necessary objectives and conditions are met. The Council also gave full support to BiH’s EU perspective, and urged the authorities to do everything necessary to fulfil the four conditions necessary for signing the Stabilisation and Association Agreement.

The Council also adopted conclusions on the Regional Co-operation Council reaffirming the EU’s commitment to the RCC as a framework for the countries of South Eastern Europe to promote stability, democracy, respect for human rights and economic prosperity.

US Visa Waiver Scheme

The Slovenian presidency briefed Ministers on discussions with the US on the visa waiver programme and an exchange of views followed. The Government support the Commission in its wish to reach an agreement with the US on this issue.

Afghanistan

The Council agreed conclusions reaffirming the EU’s commitment to long-term support for Afghanistan and promotion of Afghan leadership, good governance and the development of a democratic, secure and sustainable Afghan state with respect for human rights and the rule of law. The Council also expressed support for an international conference in Paris in June to review implementation of the Afghanistan compact and welcomed the progress of the EU police mission towards full deployment by the end of March 2008.

Pakistan

The Government agreed Council conclusions on Pakistan’s February elections as an important step in the development of Pakistan’s democracy. The conclusions also commit the EU to supporting Pakistan in strengthening democratic institutions, promoting human rights and fundamental freedoms, as well as combating extremism, while promoting development and economic growth, through trade in particular. The Council agreed the EU’s intention to review its policy towards Pakistan in support of these objectives.

Health

Dissolved NHS Trusts (Public Dividend Capital)

Pursuant to the dissolution of four national health service trusts and one special health authority between 1 April 2007 and 1 October 2007, and their reconfiguration involving the establishment of two new NHS trusts, I propose to create originating capital for the two new NHS trusts created equal to the net assets transferred to them and also to remit the outstanding debt of the dissolved trusts.

These operations involved no overall loss to the Exchequer. Her Majesty’s Treasury has today presented a minute to the House giving particulars and circumstances of the proposed remission which it has approved in principle.

Private and Voluntary Health Care

The Government are currently undertaking a major programme to reform health and adult social care to improve the quality and safety of services. They are committed to make major changes to the current regulatory and system management frameworks covering health and adult social care, and are legislating to that purpose in the current session. This programme of change will put patients and service users at the forefront of driving forward improvements to services through increased choice, improved commissioning, and new regulatory arrangements.

In 2009 we plan, subject to the passage of legislation, to replace the current regulatory bodies covering health and social with a new single regulator—the Care Quality Commission, which will build on the work of the Healthcare Commission, the Commission for Social Care Inspection, and the Mental Health Act Commission. However, certain changes to the current regulatory system for private and voluntary health care are needed earlier to ensure that we can continue to regulate this sector effectively during the run-up to the wider changes to the regulatory and system management frameworks. These changes are designed to:

remove a small number of private and voluntary health care services from regulation by the Healthcare Commission where the risk to the public is small; and

ensure that there is clarity about how certain regulations should apply to private and voluntary health care.

We therefore present proposals to amend the regulations governing private and voluntary health care. We are satisfied that the amendments proposed in this consultation will deliver improved health care outcomes which are consistent with the risk based approach to regulation we envisage in our wider and longer-term system reforms.

The consultation document has been placed in the Library of the House and copies are available to hon. Members from the Vote Office. It is also available on the Department’s website at: http://www.dh.gov.uk/en/Consultations/Liveconsultations/index.htm.

The consultation will end on 10 June 2008. After analysis of the consultation responses, we will make a decision on whether or not to proceed with these proposals, and to lay the new regulations before Parliament.

Home Department

Taser (Police Use)

This statement is to notify the House about the release of the first formal quarterly figures on the use of Taser.

Taser has been available to all authorised firearms officers since September 2004 as a less lethal option for use in situations where a firearms authority has been granted in accordance with criteria laid down in the Association of Chief Police Officers’ manual of guidance on police use of firearms.

On 20 July 2007 I gave my approval for chief officers throughout England and Wales to deploy Taser for use by authorised firearms officers in operations or incidents where the criteria for the authorisation to issue firearms does not apply, but where officers are facing violence or threats of violence of such severity that they would need to use force to protect the public, themselves and or the subject.

I also approved a 12-month trial of the deployment of Taser by specially trained units who are not firearms officers in similar circumstances. The trial commenced on 1 September 2007 involving 10 forces.

Figures on the use of Taser are broken down into three tables:

All uses of Taser in the UK since introduction in April 2004 up to 30 November 2007;

Taser use by authorised firearms officers outside of a firearms authority from 20 July 2007 to 30 November 2007;

Taser use by specially trained units in the first 3 months in the ten trial forces areas from 1 September 2007 to 30 November 2007.

The figures show that Taser has been used by authorised firearms officers 163 times outside of a firearms authority from 20 July 2007 to the end of November 2007, and by specially trained units 16 times in the first quarter of the trial. It should be noted that only six of the 10 forces carrying out the trial, actually started on 1 September, and that this excluded West Yorkshire police service and the Metropolitan police service. Therefore, we expect the next quarter figures for the trial to be higher.

Publication of these figures is in line with the Government’s rigorous and measured approach to extending the use of Taser and to subject the trial to a full and thorough evaluation.

I have placed a copy of the figures in the Library of the House. Figures on laser use will be published regularly on a quarterly basis in May, August and November 2008 on the Home Office scientific development branch (HOSDB) website.

International Development

English Language Skills (Bangladesh)

At the request of the Bangladesh Government, the UK has approved £50 million over nine years for an ambitious programme which will significantly increase English language skills for 27 million people in Bangladesh. This will make a valuable and lasting contribution to economic and social development in that country.

“English in Action” is an innovative and comprehensive programme that will target a number of different ages and groups. In particular, it will make more young Bangladeshis ready for employment. It will provide teachers at primary and secondary level with a firm foundation for teaching English; and it will offer opportunities for using and practising English in a variety of economic and social contexts. The programme will also address a major skills gap in the Bangladesh workforce and will help the country become more competitive in both internal and international labour markets.

Designed to reach approximately 27 million people, “English in Action” will make use of rapidly expanding mobile phone technology in Bangladesh. It will use television and radio to stimulate interest and debate, and to reach the maximum number of people with appropriate learning programmes. The “English in Action” programme will also provide a wide range of supportive printed and audio learning materials which will be available to a wide range of learners.

UK development assistance in Bangladesh promotes good governance, economic growth, trade and access to basic services. The “English in Action” programme will contribute to improving economic growth and to increasing the quality of education provision in Bangladesh.

A recent Bangladesh Government report identified unemployment and growing income inequality as two major constraints which may prevent the country from achieving the millennium development goals. “English in Action” will be an important contribution in assisting Bangladesh to overcome such constraints and to improve the livelihoods of its people.

We will continue to provide significant support for Bangladesh as an emerging economy and confident, stable state into the 21st century.

Leader of the House

MPs' Pay and Pensions Review

I announced in a written ministerial statement, 23 January 2008, Official Report, column 56WS, volume 470, the terms of reference for the Sir John Baker review.

The review team have now published a consultation document to help gather evidence that will inform recommendations. Written submissions have been requested by Friday 11 April 2008.

A copy of the consultation document can be found at: http://baker-review.ome.uk.com/