Monday, 23 February 2004

• an increase from 1 April 2004 of 2 per cent to the pay ranges for each of the senior Civil Service pay bands below Permanent Secretary;
• a range of base pay awards from 0 to 9 per cent depending on performance;
• a minimum unconsolidated bonus payment of 3 per cent or £2,500, whichever is the higher, for those making the greatest contribution; and
• an uplift to the pay range for Permanent Secretaries resulting in a new range of£121,100 to £256,550; the uplift is broadly equivalent to the increase proposed to the pay ranges for the senior Civil Service pay bands below Permanent Secretary.

The main recommendation of the review body for the senior military is an increase from 1 April 2004 of 2.8 per cent in the value of all points on the incremental pay scales for senior military officers.

The main recommendation of the review body for the judiciary is an increase from 1 April 2004 of 2.5 per cent in judicial salaries.

The Government have decided to accept these recommendations. Their cost will be met within existing departmental expenditure limits.

The review body has also recommended that broad salary linkage between its remit groups should be achieved from now on by maintaining general equivalence in salary levels at the top of the structures only. The Government will be considering this.

Pay increases for Members of Parliament and Ministers are linked automatically to the increase in pay bands for the senior Civil Service. Their pay entitlement will therefore increase by 2 per cent from 1 April 2004.

I have placed in the Libraries of both Houses a copy of DfID's Interim Country Assistance Plan for Iraq. It sets out how DfID aims to contribute to the reconstruction of Iraq in the period up to March 2006. I have also decided to make an initial contribution of £65 million (120 million US dollars) to the International Reconstruction Fund Facility for Iraq, managed by the World Bank and United Nations, out of the resources pledged by the United Kingdom for the reconstruction of Iraq at the Madrid donors conference in October 2003 (see my Written Statement of 14 October 2003: Cols. 9–10WS).

Saddam Hussein's tyranny led to a significant increase in poverty and Iraq was isolated from the rest of the world, including its own region, for much of his rule. In many respects Iraq's social and economic indicators now resemble those of a low-income country rather than a major oil producer. But Iraq's abundant human and natural resources offer the potential for a rapid return to relative prosperity, if the right conditions are created in the short and medium term.

Against this background, DfID's objectives for the next two years are to support: rapid, sustainable and equitable economic growth; effective and accountable governance; and social and political cohesion and stability.

To work towards these goals DfID will focus on three levels:

Internationally: by supporting the United Nations and World Bank International Reconstruction Fund Facility for Iraq (IRFFI), assisting the Ministry of Planning and Development Co-operation, and continuing dialogue with other donors on the coordination and effectiveness of assistance to Iraq.

Nationally: by funding projects which benefit the poor, promote an inclusive political process and economic reform, and strengthen public administration. Examples include: helping the growth of small and medium-sized businesses; setting up a fund to support the participation of citizens, parties and interest groups in the political process; and technical assistance to Iraq's public administration system.

In southern Iraq: by funding projects to reduce poverty and helping to restore the area's administrative and political links with Baghdad so that it can benefit from Iraq's national development efforts.

At the Madrid donors conference, the United Kingdom pledged a total of £544 million for the period from April 2003 to March 2006, a significant proportion of which would be channelled through the International Reconstruction Fund Facility for Iraq (IRFFI). The allocation of our initial contribution between the UN and the World Bank Trust Funds will be decided shortly. Any further DfID contributions to the funds will be considered in the light of the effectiveness of their operations and their need for additional funding.

A total of over 32 billion dollars was pledged to Iraq at the Madrid conference. These pledges, together with a substantial reduction in Iraq's debt which should be negotiated this year, will provide a sound basis for the country's initial reconstruction. If the right steps are taken now, and the political situation in the country is stabilised, much of Iraq's longer-term investment needs should be met by commercial loans, foreign direct investment and its own resources. Iraq's human capital, and its oil reserves of about 2,500 billion dollars at current prices, should enable it to meet its future needs without significant external grant assistance.

The country assistance plan is also available on the DfID website: www.dfid.gov.uk.

¹ Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The change in the resource element of the DEL arises from:

• The transfer of £116,550,000 from capital to resource DEL
• An increase in RfR2 of £231,000,000 resource DEL for military operations.
• A transfer of £5,000,000 resource DEL from FCO in respect of the Global Conflict Prevention Pool.
• A transfer of £910,000 from DfID in respect of the Conflict Prevention Pool for programmes in sub-Saharan Africa.
• A transfer of £11,200,000 resource DEL to the DTI in support of dual-use aero-engine technology programmes.
• A transfer of £305,000 resource DEL from the DWP to the Veterans Agency relating to a change in allowances.
• A transfer of £120,000 resource DEL to the Single Intelligence Account relating to electricity for a shared site.
• A transfer of £55,000 resource DEL from the Home Office in respect of the Voluntary Opportunities Matched Funding project.
• An increase in the non-budget items of £147,541,000 arising from changes in provision values related to the change in the Treasury discount rate.
• An increase in resource appropriations in aid of £157,579,000.

The change in the capital element of the DEL arises from:

• A transfer of £116,550,000 from capital DEL to resource DEL as a result of budgetary rebalancing.
• An increase in RfR2 of £78,000,000 capital DEL for military operations.
• A transfer of £5,500,000 capital DEL from the Home Office to MoD as payment for part of the former RAF Newton site.
• A reduction in capital DEL of £2,655,000 as a result of repaying the funding provided from the reserve in financial year 2001–02 which was brought forward from 2003–04 for Operation Veritas urgent operational requirements.
• An increase in non-operating appropriations in aid of £134,613,000.
• A profit of £17,674,000 on the disposal of fixed assets.

The consultation paper Courts Boards: constitution and procedures sought views on how appointments should be made to courts boards and the procedures by which they should operate. The consultation period ran from 25 September 2003 to 5 January 2004 and 141 responses were received.

A post-consultation report for the paper Courts Boards: constitution and procedures will be published on 26 February. The report will set out the Government's decisions on how courts boards will be set up, in the light of the responses received to consultation. It will also inform regulations which will be laid before Parliament on that day.

I am keen for courts boards to be set up in shadow form during this year so that the boards may then consider the draft business plans for the first year of the new unified courts agency.

I would like to update the House on the progress made on implementing the recommendations contained in the Government's statement on the historic environment, A Force for Our Future, since March 2003.

The statement, published in December 2001, articulates the Government's vision for the historic environment at the heart of national life and sets an agenda for unlocking its full potential. This programme of action emphasises the value of the historic environment as an educational resource, its relevance to all members of the community and how it can work as an economic and regenerative asset in urban and rural settings.

The Government will continue to take this agenda forward in a number of ways, in particular through the review of heritage protection, English Heritage's annual state of the historic environment reports, the DCMS/DfES Joint Committee on Built Environment Education and English Heritage's funding agreement, which is co-sponsored by the DCMS, Defra and the ODPM.

Since March 2003 the following has been achieved:

June 2003

The Government Historic Estate Unit published Protocol for the Care of the Government Estate 2003 recommending its adoption by government departments who own and manage historic estate and providing a model of good practice for all publicly funded bodies.

The Historic Houses Association launched www.historichousevenues.com, an online resource listing privately owned historic houses and gardens throughout Britain which offer exclusive facilities for pre-booked groups and individual visits, special events, catering and accommodation. The aim is to increase public access and develop commercial activity.

July 2003

English Heritage published Streamlining Listed Building Consent: Lessons from the Use of Management Agreements, a report on the effectiveness of listed building consent management guidelines and their potential to streamline the listed building consent regime.

The Architectural Heritage Fund, with support from English Heritage and Cadw, launched an online directory of sources of funding available for rescuing and restoring historic buildings at www.ffhb.org.uk.

English Heritage published Managing Local Authority Heritage Assets—some guiding principles for decision-makers, promoting best practice in the management of council-owned heritage assets and high quality design in new work related to them, including public spaces.

I launched Protecting Our Historic Environment: Making the System Work Better, a consultation document aiming to improve and refocus the way in which England's historic environment receives statutory protection.

The Government published their consultation Historic Environment Records: Benchmarks for Good Practice, inviting views on how best to ensure that the rich resources currently held in sites and monuments records across the country can be developed and made available to professionals, schools and colleges as well as the wider public.

English Heritage convened a series of meetings to develop and share best practice on access for people with disabilities to historic properties and sites.

August 2003

English Heritage published its consultation document Local Authority Performance Indicators for Historic Environment Services, seeking views on developing a performance assessment framework for local authorities managing the historic environment.

The Secretary of State for Culture, Media and Sport launched the DCMS/DfES Joint Advisory Committee on Built Environment Education, which will focus on how best to promote the built environment as an educational resource.

September 2003

Six new commissioners were appointed to the English Heritage Commission, including for the first time a commissioner responsible for access and outreach issues.

Ministers in the DCMS, the ODPM and Defra signed an innovative joint funding agreement for English Heritage. This recognises for the first time the contribution English Heritage makes to the delivery of all three departments' targets.

Heritage Open Days 2003, organised by the Civic Trust with support from English Heritage, attracted over 800,000 visitors to 2,512 properties and activities. There was a significant increase in the number of participating properties and activities, local organisers and volunteers.

The Historic Houses Association and English Heritage, with support from the Heritage Lottery Fund, launched a pilot scheme to assist private owners of historic houses to develop education programmes.

October 2003

Royal Assent was given to the Dealing in Cultural Objects (Offences) Bill.

The UK signed a co-operation agreement with UNESCO, which will enable developing countries to benefit from UK heritage and conservation expertise. UK experts will assist developing countries with identifying world heritage sites and preparing management plans and conservation strategies for both cultural and natural world heritage sites.

I launched the National Heritage Training Group's business plan Building on the Past: Training for the Future. It sets out the group's plans to tackle the skills deficit in traditional building crafts, including a traditional building crafts training plan.

November 2003

Heritage Counts, the second state of the historic environment report, was launched. Key themes covered were: historic environment assets; the economic value of the historic environment; outreach, knowledge and access; indicators, including a consultation on a framework for historic environment indicators. The report published MORI research commissioned by English Heritage, with funds from the DCMS and the Heritage Lottery Fund, to establish who is not engaging with the historic environment and why. It also published research produced by Heritage Link into the contribution made by volunteers to the historic environment.

English Heritage published Easy Access to Historic Properties for consultation. The publication gives

guidance to those responsible for the historic environment on the provision of access for people with disabilities. The updated version takes into account the implementation of Part III of the Disability Discrimination Act 1995 and the updated Part M of the Building Regulations.

December 2003

The 2003 Pre-Budget Report confirmed that funding for the Listed Places of Worship Grant Scheme would continue until the end of March 2006.

The Disability Rights Commission, in association with English Heritage, held a consultative conference on making historic buildings accessible to people with disabilities.

The Dealing in Cultural Objects (Offences) Act came into effect.