Wednesday 16 June 2004

Official Report, vol 413, cols. 39–40WS) that the Ministry of Defence would not seek leave to appeal to the House of Lords the Court of Appeal judgment in the case of Mrs Hulme and the Pensions Ombudsman v the MoD. I also announced that, as appropriate, the department would review previous decisions on entitlement to pensions where death in service or injury that resulted in invaliding was due to service and where Armed Forces Pension Scheme administrators have previously not accepted War Pension Scheme decisions on attributability; that awards would be backdated; and that the department would consider compensation to reflect the effect of inflation on the value of pensions over the period of non-payment.

I can now advise the House that those pensioners, widows, widowers or their estates who will receive backdated pension benefits as a result of this judgment will also receive interest on those payments. Where the error occurred within the last six years, the interest will be based on the scheme's usual formula of simple interest. Where the error occurred beyond six years, interest will be based on a formula using the rate of RPI plus 2 per cent compounded. This is consistent with the formula used in compensating those who were affected by the Armed Forces Pension Scheme tax and related pension errors, which I announced to the House on 15 December 2003.

Work has begun on identifying the cases involved and we hope that back payments and interest will be paid within one year to those who were affected.

Ensuring that at least 70 per cent of MoD sites of special scientific interest in the UK meet the criteria for satisfactory condition.

Key Target 2: To provide an estate of the right size, by increasing the number of personnel on core sites by 4 per cent by 31 March 2005, producing business cases to support the MoD estate rationalisation plan by December 2004, and by achieving accrued estates disposal receipts of £661 million from 1 April 2003 to 31 March 2008, including £126 million from 1 April 2004 to 31 March 2005.

Key Target 3: To improve customer satisfaction and service delivery, by decreasing customer dissatisfaction with service families' accommodation by a percentage point by 31 March 2005, compared to the outcome as at 31 March 2004.

Key Target 4: To implement key 2004–05 milestones for MoD estates change initiatives by achieving the contract award for the housing prime contract by 31 July 2004 and the regional prime contract (southeast) by 30 November 2004.

Key Target 5: To produce the necessary strategies and to establish target baselines in support of the Defra sustainable development in government requirements.

Key Target 6: To integrate baseline information to inform the methodology for demonstrating value for money efficiencies from prime contracting, and to reduce the management margin of vacant housing to 10.7 per cent by 31 March 2005.

I am placing a copy of the new Defence Estates corporate plan in the Library of the House.

To reflect the established strategy of investment and growth, the Met Office has adopted a new target relating to growth. A new target has also been included to ensure that the Met Office is prepared for the implementation of the Freedom of Information Act 2000 on 1 January 2005.

Previously the Met Office has had a target set against commercial contribution. This has become less relevant given that there is no longer a clear distinction between commercial work and public sector work. This target has therefore been discontinued.

Key Target 1: To achieve an increase in value for the numerical weather prediction index (measuring forecasting skill) of at least 1.4 by 31 March 2005, from the level achieved at 31 March 2004.

Key target 2: To deliver an operating profit before strategic investments of at least £15.5 million in the financial year 2004–05, while making strategic investments of between £5.8 million and £6.8 million.

Key target 3: To achieve a return on capital employed of at least 3.5 per cent in the financial year 2004–05.

Key target 4: To achieve direct services growth in both government and non-government revenue of at least 4.1 per cent in the financial year 2004–05 from the 2003–04 baseline, while maintaining direct services operating profit.

Key target 5: To have in place, by 31 December 2004, basic procedures to answer requests for information under the Freedom of Information Act 2000 and to review by 31 March 2005 the initial operation of the procedures to ensure that they are fit for purpose.

Key target 6: To develop, by March 2005, an efficiency measure which demonstrates the continuous improvement in value for money of the National Met Service (including the Public Met Service and relevant parts of the National Met Programme).