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Written Answers

Volume 654: debated on Wednesday 29 October 2003

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Written Answers

Wednesday, 29th October 2003.

Northern Ireland: Nomenclature

asked Her Majesty's Government:Why invitations and supporting letters from the North/South Ministerial Council Joint Secretariat to board members of the Ulster-Scots Agency referred to Northern Ireland as "the North": what is their policy regarding the naming of Northern Ireland in this way; and whether the North/South Ministerial Council Joint Secretariat in Armagh is aware of that policy. [HL4628]

By accepted usage, the two jurisdictions in which the North/South Ministerial Council exercises its functions are sometimes referred to by their legal titles, and at other times by reference to less formal nomenclature. On this occasion the use of less formal terminology was felt to be appropriate.

North/South Ministerial Council: Corporate Governance Seminars

asked Her Majesty's Government:Whether they will arrange a corporate governance seminar for the staff of the North/South Ministerial Council Joint Secretariat. [HL4629]

Staff from the North/South Ministerial Council Joint Secretariat attended corporate governance seminars held on 1 April and 6 October 2003.

Northern Ireland: Knockmore To Belfast Railway Service

asked Her Majesty's Government:Whether the passenger service from Knockmore railway station to Belfast is to be reinstated. [HL4631]

:Translink has advised that there are no plans to reinstate passenger services from Knockmore to Belfast.

Iran: Nuclear Programme

asked Her Majesty's Government:What was the purpose of the Foreign Secretary's visit to Iran on 21 October. [HL5143]

The Minister of State, Foreign and Commonwealth Office
(Baroness Symons of Vernham Dean)

Together with his French and German colleagues, my right honourable friend the Foreign Secretary visited Tehran on 21 October for discussions on Iran's nuclear programme. They met President Khatami, Foreign Minister Kharrazi and the Secretary of the Supreme National Security Committee Hassan Rouhani. The discussions were aimed at underlining to the Iranian authorities the concerns of the international community regarding Iran's nuclear ambitions, and the necessity for Iran to comply fully with the requirements of the International Atomic Energy Agency (IAEA) board of governors' resolution adopted on 12 September.By the end of the visit, they were able to agree a joint statement which committed Iran to comply with the three key elements of the IAEA board resolution:to engage in full co-operation with the IAEA to address and resolve, through full transparency, all requirements and outstanding issues of the agency, and clarify and correct any possible failures and deficiencies within the IAEA;to sign the IAEA additional protocol, and commence ratification procedures. As a confirmation of their good intentions, the Iranian Government state that they will continue to co-operate with the agency in accordance with the protocol in advance of its ratification;to suspend all uranium enrichment and reprocessing activities, as defined by the IAEA.The full text of the joint statement has been placed in the Library of the House.This joint statement represents a good start to the process of resolving international concerns over Iran's nuclear programme and is welcomed as such. But it was also made clear to the Iranian interlocutors that the real test will be full and early implementation of the commitments they have offered. They know that the international community will be looking closely at the evidence in the next report of the IAEA director-general, which is due to be presented to the board of governors in early November.The joint statement makes clear that, while implementation of the steps outlined should enable the IAEA board to resolve the immediate problem with Iran, there is also a longer-term issue. Britain, France and Germany remain ready to address that issue through dialogue with Iran on a basis for longer-term co-operation, which would provide all parties with satisfactory assurances about Iran's nuclear power generation programme. It was made clear that it is only once international concerns are fully resolved that Iran could expect easier access to modern technology and supplies.The visit has demonstrated the value of a united approach between Britain, France and Germany, working to uphold the decisions of the IAEA and its board of governors, and consistent with the common approach to Iran agreed by several European Councils.

Property Sales: First-Time Buyers

asked Her Majesty's Government:Why they consider the percentage of property sales accounted for by first-time buyers to be at its lowest level ever. [HL5011]

The average property price paid by first-time buyers has increased by 133.6 per cent, from an average of £46,489 in 1995 to £108,591 in the second quarter of 2003. Over the same period, average first-time buyer incomes have increased by only 70.3 per cent, from £18,697 in 1995 to £31,841 in Q2 203.Average deposits needed to buy a first house have also risen, from 16.8 per cent of the property price (£7,810) in 1995 to 23.1 per cent (£25,084) in Q2 2003.In response to these changes, we have set out a range of measures in the Sustainable Communities Plan and the 2003 Budget that will, over time, improve the affordability of housing.

Bae Systems: Sale Of Hawk Jet Trainers

asked Her Majesty's Government:Whether they have any evidence that Bae Systems has used bribes to promote sales of Hawk jet trainers and attack aircraft at various times since 1996 to India, South Africa and Qatar; if so, what offences they consider may have been committed; and what action they intend to take. [HL4622]

The Parliamentary Under-Secretary of State, Department of Trade and Industry
(Lord Sainsbury of Turville)

The Defence Export Services Organisation of the Ministry of Defence has responsibility for the promotion of defence export sales of jet trainers.The Department of Trade and Industry has no evidence that Bae Systems has used bribes to promote the sale of Hawk jet trainers and attack aircraft to overseas markets.

Mobile Telephone Numbers: Comprehensive Directory

asked Her Majesty's Government:When they expect a "comprehensive directory" of all mobile telephone numbers to be available as specified in paragraph 2 of the Electronic Communications (Universal Service) Order 2003 (S.I. 2003/1904). [HL4692]

This is a matter for the Director General of Telecommunications at Oftel. I have asked him to write to the noble Lord.

European Union: Draft Directive On Articles Of Precious Metal

asked Her Majesty's Government:What progress they are making in persuading other European Union member states to share their view that any harmonised trade in articles of precious metal should have a high level of consumer protection secured by reliable independent third- party verification; and [HL4889]What importance they attach, during the current European Union presidency working party discussions on the draft Directive on Articles of Precious Metal, to the need for harmonised trade in such articles to have a high level of consumer protection secured by reliable third-party verification; and whether this objective is shared by other member states. [HL4890]

Her Majesty's Government attach great importance to high consumer protection in this area, which we believe can best be achieved through a system of independent third-party checks. We have been liaising closely with a number of other member states who share our concerns in order to oppose this measure.

Price Marking (Food And Drink Services) Order 2003

asked Her Majesty's Government:Whether they will take steps to clarify the table in paragraph 5(1) of the Price Marking (Food and Drink Services) Order 2003 (S.I. 2003/2253) for the benefit, in particular, of small businesses. [HL4937]

The tabular format was adopted in order to bring together in a simpler and clearer form the existing rules about the number of prices required to be displayed for food and wine with the new ones about soft drinks.We shall be publishing general guidance on the order before it enters into force.

Wireless Telegraphy (Limitation Of Number Of Licences) Order 2003

asked Her Majesty's Government:Why no criteria are given in Schedules 2, 9 and 10 to the Wireless Telegraphy (Limitation of Number of Licences) Order 2030 (S.I. 2003/1902). [HL4938]

The Wireless Telegraphy (Limitation of Number of Licences) Order 2003 was made under powers conferred by Section 164 of the Communications Act 2003. The order and the Act came into force on 25 July.

Section 164 of the Act permits the order to specify the frequencies and uses for which Ofcom will grant or make only a limited number of licences. The order must set out the criteria which Ofcom will apply in determining the limit and the persons to whom licences will be granted. (The order was made by the Secretary of State rather than Ofcom for the reasons given in the Explanatory Note to the order.)

The order does not set out a maximum number of licences available for frequencies and uses. This was not a requirement of Section 164. Further, the Secretary of State does not limit the availability of licences in that way. What happens is that factors such as technical frequency assignment criteria and criteria relating to persons who may be awarded licences operate to determine the limit on the number of licences granted and the persons to whom they are granted.

Schedule 2 to the order concerns the class of licences for broadband fixed wireless access at 28 GHz. Licences are only awarded to persons by a competition (as indicated in part 2 of the schedule). The fact that licences are awarded in this way is a factor which inevitably limits the number of licences which are available at any given time and the persons to whom they are awarded. The ability of applicants to meet the terms of licences will also be a factor limiting the numbers of licences (as described in Article 4(c) of the order). There are no further specific criteria limiting numbers so "none" was inserted in part 3 of the Schedule.

Schedule 9 concerns the class of licence for amateur radio at a range of frequencies. Part 2 of the schedule sets out the criteria relating to persons to whom licences are awarded. Those criteria, together with the ability of applicants to meet the terms of licences, are the only factors limiting the numbers of licences. Amateurs who fulfil the criteria specified in part 2 of the schedule may all share use of the same spectrum. There were no further specific criteria limiting numbers so "none" was inserted in part 3 of the schedule.

Schedule 10 concerns the class of technology development radio licences, which may be at any frequency approved case by case where no undue interference results to other authorised services. Criteria for this class were in fact specified in both parts 2 and 3 of schedule 10.

Fuel And Power Imports

asked Her Majesty's Government:What were the fuel and power imports into the United Kingdom during 2001 and 2002; from which countries they were imported; and whether they will break down the type of fuel or power imported from each country. [HL5061]

Detailed information on fuel and power imported into and exported from the United Kingdom in 2001 and 2002 are published on the DTI website at the following address: http:// www.dti.gov.uk/energy/inform/energy_stats/foreign_ trade/index.shtml. It is also contained in Annex G of the Digest of United Kingdom Energy Statistics 2003 Internet Booklet (which is a printed version of tables that are otherwise available only on the DTI website). A copy of this booklet is available in the House Library.In summary, 91.1 million tonnes of oil equivalent of fuel was imported during 2002, down from 94.7 million tonnes of oil equivalent during 2001. 73 per cent of crude oil imported during 2002 came from Norway and a further 9 per cent from Russia. Two-thirds of the coal imported came from South Africa, Australia, and Russia.

Public Sector Contracts: Small Businesses

asked Her Majesty's Government:What steps they will take to make it easier for small businesses to bid for and win public sector contracts. [HL5101]

This month the Government responded positively to the recent report Government: Supporter and Customer by the Better Regulation Task Force/Small Business Council (BRTF/SBC). This report made 11 recommendations in the area of public sector procurement with the aim of creating a level playing field for SMEs to compete against large companies for contracts.The BRTF/SBC recommendations are being piloted through two SME procurement schemes—one in the West Midlands area and a second in the London Borough of Haringey. In the West Midlands, the Office of Government Commerce is working closely with the RDA (Advantage West Midlands), the Government Office for the Region, the Small Business Service and other government and regional partners. In Haringey, the pilot is being led by the Small Business Service, working with Trade Local, an award winning initiative of the borough council and its partners to promote a more open commercial relationship between local government and local businesses. It is intended that these pilots will implement, in a controlled way, many of the recommendations of the BRTF/SBC report and inform government of the most effective ways of assisting small businesses in this area.The Small Business Service also co-ordinates the small business research initiative (SBRI). This initiative has the aims of stimulating demand for research and development from SMEs along with the creation of new market research. The government departments involved with the SBRI have an aim to buy at least 2.5 per cent of their R&D requirements from SMEs during the project.

Employment Service Estate

asked Her Majesty's Government:In respect of the former Employment Service Estate which is to be outsourced by the Department for Work and Pensions to Land Securities Trillium (LST), (a) how many organisations were invited to bid for this agreement, and how many did so; (b) if there was no competitive bidding process, how is value for taxpayers' money assured; and (c) whether there were any provisions for exclusive or preferential access to future agreements in the original PRIME agreement between the department and LST; and [HL4896]In respect of the former Employment Service Estate which is to be outsourced by the Department for Work and Pensions to Land Securities Trillium, what is the amount of the agreed freehold valuation; and [HL4897]In respect of the former Employment Service Estate which is to be outsourced by the Department for Work and Pensions to Land Securities Trillium, what independent valuations have been carried out on these properties; when they were carried out; by whom; and on what basis; and [HL4898]In respect of the former Employment Service Estate which is to be outsourced by the Department for Work and Pensions to Land Securities Trillium, what are the total number, total area and total estimated rental value of the freehold properties in the estate; and [HL4899] In respect of the former Employment Service Estate which is to be outsourced by the Department for Work and Pensions to Land Securities Trillium, what is the current estimated valuation of the freehold properties in the estate on a vacant possession basis; and [HL4900]In respect of the former Employment Service Estate which is to be outsourced by the Department for Work and Pensions to Land Securities Trillium (LST), what are the estimated total payments for each year up to 2018 to LST under the proposed agreement (a) if no properties are vacated and (b) if all options to vacate properties are exercised as soon as possible; and [HL4901]In respect of the former Employment Service Estate which is to be outsourced by the Department for Work and Pensions to Land Securities Trillium (LST), how much space out of the total of 834,000 square metres the department will be able to vacate with no further financial liability in each year up to 2018. [HL4917]

The Parliamentary Under-Secretary of State, Department for Work and Pensions
(Baroness Hollis of Heigham)

Following a full option appraisal review, the Department for Work and Pensions took the decision that the best way to deliver an optimum value for money solution for the management of its estate was to expand the existing PRIME contract, through negotiation, to include the former Employment Service buildings. On this basis only Land Securities Trillium, as the incumbent service provider for PRIME, was invited to submit a formal proposal. The original PRIME contract did not have any specific exclusivity or preferential provisions.Ensuring the key objective of obtaining value for money necessitated transparent and demonstrable calculations. Financial comparators have been used against all aspects of the bid, and the final negotiated package is deemed to offer DWP an overall price that compares very favourably with external benchmarks as well as delivering an improved and consistent level of service. The process has been subject to ongoing independent scrutiny to ensure the robustness of the outcome.DWP commissioned the Valuation Office to value those properties being transferred as part of the expanded contract. This work was undertaken during the summer of 2003. The agreed valuation of the freehold properties being transferred to Land Securities Trillium, which was carried out on a vacant possession basis, is £128.4 million.The expected number of freehold properties to be transferred is 336. These properties total 223,000 m² (net internal area) and have an estimated rental value of£15.7 million.Under the agreed terms of the expanded PRIME contract and in line with DWP's departmental plan, in addition to existing surplus space, the department can vacate up to 228,000 m² of space during the course of the contract.Under the two different vacation scenarios cited, DWP would make the following estimated payments to Land Securities Trillium during the period up to 2018:

  • (a) a total of £2,962 million if no properties are vacated; and
  • (b) around £2,200 million if all options to vacate properties are exercised as soon as possible.
  • Schlumbergersema

    asked Her Majesty's Government:Whether there have been any demonstrable savings in income support and disability benefits since the Benefits Agency Medical Services were contracted out to SchlumbergerSema. [HL4967]

    Processing times have improved on sickness and disability benefits since the contracting out of medical services to SchlumbergerSema. The National Audit Office in its recent report Progress in improving the medical assessment of Incapacity and Disability benefits (HC1141) estimates that this has resulted in a one-off saving to the taxpayer of some £29 million and an annual saving of some £21 million.

    asked Her Majesty's Government:Whether there are any conflicts of interest between SchlumbergerSema and any of its subsidiary companies with particular regard to decisions made in industrial injury benefit and disability benefit cases. [HL4968]

    The role of the medical services doctor is to provide an independent, impartial opinion on the medical aspects of benefit claims. The evidence they provide forms just one part of the evidence used by decision-makers in determining benefit entitlement.In addition our contract with SchlumbergerSema contains a specific clause requiring them to use all reasonable endeavours to avoid any actual or perceived conflicts of interest.

    asked Her Majesty's Government:What services SchlumbergerSema provides for the Department for Constitutional Affairs. [HL4911]

    The Parliamentary Under-Secretary of State, Department for Constitutional Affairs
    (Lord Filkin)

    The Department for Constitutional Affairs also replies on behalf of its associated offices and the Court Service.Since 2001–02, SchlumbergerSema has provided occupational health services, project and programme management and consultancy services to the department.

    asked Her Majesty's Government:Whether doctors employed as medical examiners by SchlumbergerSema are accountable to the General Medical Council. [HL4966]

    It is for SchlumbergerSema to decide if the medical examiners they employ should be medically qualified and registered with the General Medical Council (GMC). The GMC provides guidance on the duties of a doctor registered with them, and makes it clear that serious or persistent failure to meet these standards may put their registration at risk.

    Schools And Prisons: Cost Of Providing Meals

    asked Her Majesty's Government:What is the average cost of providing a lunch meal in (a) school; and (b) prison. [HL4951]

    The Parliamentary Under-Secretary of State, Department for Education and Skills
    (Baroness Ashton of Upholland)

    The Department for Education and Skills and the Home Office do not collect information on the average cost of a lunch provided by a school or prison.

    Education: Specialist Science Teachers

    asked Her Majesty's Government:What steps they will take to remedy the shortage of teachers who specialise in science. [HL5010]

    In September 2000, the Government introduced £6,000 training bursaries for postgraduate trainee teachers and £4,000 golden hellos for those who go on to teach priority subjects, including science, in a maintained school. Since September 2002, these incentives have been reinforced by the repayment of teachers' loans pilot scheme for new teachers of priority subjects. Recruitment to courses of initial teacher training in science accordingly rose by 15 per cent between 1999–2000 and 2002–03. Figures published by the Graduate Teacher Training Registry on 1 October showed that 10 per cent more graduates had been offered and accepted teacher training places in science for 2003–04 than last year. Partly as a result of these increases, the number of unfilled vacancies for science teachers has fallen by 23 per cent in only two years.The Government will build on these achievements over the coming years. The Teacher Training Agency is currently developing a number of new initiatives to bring more science specialists into the classroom. These include enhancement courses designed to allow prospective teachers of chemistry and physics to bring their subject knowledge up to the required level for entry on to a postgraduate teacher training course.

    Income Contingent Student Loan Scheme

    asked Her Majesty's Government:What estimates are included in the public accounts in relation to the annual cost of servicing the debt outstanding on the income contingent student loan scheme; and how those costs are calculated. [HL5073]

    Accounting for the cost of servicing the student loan debt was prescribed by the Financial Reporting Advisory Board in its paper Resource Accounting Treatment of Student Loans—FRAB 30(3). The cost of servicing the debt is made up of three elements. The formulas for calculating each of these costs are as follows:COST OF CAPITAL: Average outstanding balance of loans multiplied by the HMT cost of capital rate.INFLATION ADJUSTMENT: (Opening loans balance plus provisions opening balance) multiplied by (headline line rate of inflation minus cost of capital).UNWINDING THE DISCOUNT: Opening balance on provisions multiplied by the headline rate of inflation.

    The costs relating to income contingent loans included in the resource accounts are as follows:

    Financial Year

    Cost of Capital £000

    Inflation Adjustment £000

    Unwinding the Discount £000

    Total £000

    1998–999,1149,114
    1999–200041,5024,3628,87054,735
    2000–01101,87323,21139,669164,753
    2001–02182,69955,13288,097325,929
    Total335,18882,705136,636554,529

    Key Workers: Housing Grants

    asked Her Majesty's Government:Whether a teacher who receives a grant of up to £100,000 towards the purchase of the home is obliged by contract to continue working in London for a minimum period following receipt of the grant; and what are the terms of such a contract in the event that the recipient should leave London or give up teaching before the minimum period is reached. [HL5053]

    The package of assistance announced by the Secretary of State on 21 October is designed to help retain good teachers within London with the potential to rise to leadership positions within the profession, by enabling them to purchase the types of homes that suit their needs but which may have been beyond their means until now. In order to be eligible for the scheme teachers will also need to demonstrate an ongoing commitment to teaching in London. In the event that a teacher chooses to leave London, or leaves teaching in the maintained sector (including academies) for more than two years, we would normally expect the loan to be repaid. This two-year period is to allow eligible teachers the ability to undertake sabbaticals, periods of secondment or career breaks, without any penalty.

    Individual Pension Funds

    asked Her Majesty's Government:Why it is necessary to have a lifetime cap on the total value of individual pension funds. [HL4873]

    The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport
    (Lord McIntosh of Haringey)

    I refer the noble Lord to Simplifying the taxation of pensions: increasing choice and flexibility for all published by HM Treasury and the Inland Revenue in December 2002.

    School Minibuses

    asked Her Majesty's Government:Whether teachers may drive school minibuses as "volunteers" without having gained a Dl entitlement on their licence, by passing an appropriate test and reaching the required medical standards. [HL4985]

    There are two separate circumstances in which a driver is able to drive a minibus without needing to pass a specific test for the category of vehicle, or to meet the higher medical standards required of drivers of passenger-carrying vehicles (PCVs). Drivers who obtained full category B (car) entitlement before 1 January 1997 were also granted Dl (not for hire or reward) minibus entitlement. Volunteers driving a minibus for a non-commercial organisation and not for hire or reward are exempted from the requirements, provided that specific criteria are met.Although both the above exemptions are conditional on the vehicle being used "not for hire or reward", there is no definition in domestic legislation of "hire or reward". It is not for my department to judge whether a teacher's contract of employment and the circumstances surrounding the use of the vehicle constitute hire or reward. Each individual case would need to be considered according to the intended use of the vehicle and the contractual arrangements that are in place between the employer and employee. Ultimately, only a court of law could provide a definitive view of a particular case.

    Channel Tunnel Rail Link

    asked Her Majesty's Government:Whether they will ensure that the Channel Tunnel Rail Link infrastructure will be used for domestic train services. [HL5056]

    The Strategic Rail Authority published a consultation document on Channel Tunnel Rail Link (CTRL) domestic services on 20 October. The SRA and Ministers will consider, in the light of the responses, whether a package of services has been identified which offers value for money and is affordable.

    "Jambo": Recovery Of Zinc Sulphide Cargo

    asked Her Majesty's Government:What percentage of the estimated 3,300 tonnes of the zinc sulphide cargo carried by the "Jambo", which sank at the entrance to Loch Broom earlier this year, has been removed by salvors; and whether all of the cargo will be removed. [HL5080]

    More than half the cargo, an estimated 1,900 tonnes of zinc sulphide, has been recovered.The advice from the Scottish Environment Group is that the cargo poses a low or negligible environmental risk. A monitoring programme has been put in place to study the local environmental impact, if any, that is caused by the residual cargo remaining on the seabed over the coming months. We will consider any revised advice from the Scottish Environment Group if there is any change in the circumstances.

    The Minch: Rights Of Passage

    asked Her Majesty's Government:Whether, in light of the difficulties experienced in the removal of cargo from the "Jambo", a review of policy will be undertaken in relation to the passage of vessels carrying hazardous cargoes through the waters of the Minch. [HL5081]

    There is a continuing right of passage through the Minch and this has to be maintained under international law.

    In August 2002, the department began undertaking a programme of vessel traffic surveys at sites around the UK that are environmentally sensitive and which may be at risk from shipping. The department proposes to undertake a comprehensive radar survey of vessels using the Minch early next year. This will allow a full assessment of existing traffic patterns and allow a review of the risks associated with shipping in the Minch.

    In the longer term, amendments to the Safety of Life at Sea (SOLAS) Convention agreed by the International Maritime Organization in 2002 will make it a requirement, with effect from 31 December 2004, for ships over 500 gross tonnes to carry automated identification systems. Coastal states wishing to install shore-based equipment will be able to monitor shipping around their coasts. For example, this will enable the UK to continuously monitor and record ship movements in the Minch and elsewhere.

    In partnership with the General Lighthouse Authority, the Government are participating in a test programme for transmitting navigational information for display on the electronic charts now used by many ships. The Northern Lighthouse Board has installed appropriate shore-based equipment in the Minch as part of this test programme.