Today my right honourable friend the Parliamentary Secretary for the Cabinet Office is laying before Parliament, under the provisions of the Superannuation Act 1972, two amendment schemes. The Civil Service unions have been involved throughout and confirm their agreement to the scheme amendments. The first of these amends the rules of the Principal Civil Service Pension Scheme (PCSPS) and introduces new provisions for those joining the pension scheme on or after 30 July 2007. The second amendment scheme makes consequential changes to the Civil Service Compensation Scheme.

These amendments are the first step in implementing a major package of reform that builds on earlier changes modernising the Civil Service pension arrangements and announced in July 2002 by the then Chancellor of the Duchy of Lancaster, Douglas Alexander, in Hansard on 22 July 2002, col. 728W. I will bring forward further amendments in due course to complete the implementation of these reforms.

The package of reform that I am announcing today is in line with the agreement reached between the Government and the public sector unions in the Public Services Forum (PSF) in October 2005. The Government’s aim is to continue to provide their staff, both existing and new, with good-quality, defined-benefit, index-linked pension provision, delivered in a sustainable way. The Government seek to achieve that by delivering a range of measures intended to reduce Civil Service pension costs by £2.1 billion over 50 years, on the basis of the assumptions made at the time of the PSF, and to control unplanned cost growth.

New entrants

Pension terms for new entrants from 30 July 2007 will undergo radical change, with pensions calculated by reference to pensionable earnings throughout the career rather than “final salary”. We believe that that change will produce a fairer outcome for the workforce generally, particularly those who have relatively short or broken Civil Service careers and those who wish to move to less demanding employment as part of their transition from work to retirement. This new whole-career option will be known as the nuvos scheme, and, in common with the existing premium scheme, will have a member contribution rate of 3.5 per cent of pensionable pay.

Members will be able to retire and draw benefits at any age from 55 to 75, with benefits drawn before age 65 reduced for early payment and those drawn after 65 increased for late payment. Members will have access to options to help them to tailor the scheme to meet their personal requirements. These include the ability for members to purchase added pension for self or for self plus dependants, to give up pension in exchange for a lump sum and to give up pension in exchange for additional benefits for dependants. The nuvos scheme will also offer a range of other benefits, including ill-health retirement pensions and benefits for dependants following the member’s death.

To facilitate mobility among the public services, the PCSPS belongs to the Public Sector Transfer Club. The future service of staff transferring in from public service schemes continuing to operate final-salary pension schemes will be pensioned on the whole-career basis, but the service transferred will continue to provide benefits on a final-salary basis. A similar approach will apply to the frozen final-salary benefits of civil servants returning after resigning to broaden their careers.

New entrants who prefer a stakeholder pension with an employer contribution will continue to have the option of a partnership pension account.

Current staff

The Government recognise the importance that current staff place on retaining their existing pension scheme. Current staff, including many of those who resign and return to work after a break of no more than five years, will therefore continue to have pensions calculated on a final-salary basis and will be able to draw an unreduced pension on retirement at or after age 60. These terms will continue broadly as now, subject to the following changes:

an option for staff leaving from 1 October 2007 to give up pension for a larger lump sum on retirement;

relaxation of service limits from 40 to 45 years, to be phased in from 1 March 2008;

replacement of the “added years” facility for topping up pension by a new “added pension” arrangement, from 1 October 2007 for staff over 60 and from 1 March 2008 generally; and

introduction, from 1 March 2008, of “flexible retirement” arrangements, which will permit staff who reduce their hours or job weight to access their pension before full retirement.

Sustainability

Although unfunded, the PCSPS publishes an annual resource account, including its estimated liabilities, and undergoes regular actuarial valuations. The state of the scheme at 31 March 2007 is currently being assessed, and I will place the results of the valuation in the Library when the report is agreed. The valuation is used to set the level of employer contributions to apply in future years; by convention, a range of employer contribution levels apply, with higher percentage rates of contribution being paid for higher-paid staff. The average employer contribution is currently 19.4 per cent of pensionable pay, and this is taken into account in setting the overall level of Civil Service reward packages.

The PSF agreement recognised the importance of ongoing scheme sustainability. This requires members to accept a degree of responsibility for future cost pressures, rather than seeing them as an issue for the employer—and taxpayer—alone. We will establish a scheme governance group, with employer and union representation, to take forward work on this area. The Government will ensure that cost pressures identified at scheme valuations from 2010, which will be implemented with effect from April 2012, are shared on a 50:50 basis between employers and staff.

To the extent that such cost increases or reductions arise as a consequence of changes to the Treasury-mandated financial assumptions or from some fundamental changes to the actuarial valuation methodology, the consequent impact on costs should continue to be absorbed by the employer through an adjustment in accruing superannuation liability (ASLC) rates. The Government will also ensure that the average employer contribution is capped at 20 per cent of pay, assuming no changes to the valuation approach. This approach is intended to deliver long-term sustainability through the reduction of taxpayer exposure to risks, principally those associated with improvements in longevity over and above the improvements already anticipated.

As and when cost-sharing takes effect, it is by no means axiomatic that member contributions will rise. Although this approach would of course be one option, we would look to the scheme governance group to suggest approaches designed to secure widespread acceptance by staff, to maintain scheme membership and to have particular regard to the impact on low-paid staff. We will consult the unions in the near future on the detail of how this process should work, before amending the scheme rules to reflect the outcome of that process.

Statements received between Tuesday 31 July and Friday 7 September 2007

The Exchequer Secretary to the Treasury (Angela Eagle) has made the following Written Ministerial Statement.

On 30 April 2007, during the Committee of the Whole House debate on Clause 7 of the Finance Bill, my honourable friend, the then Financial Secretary to the Treasury, John Healey made a statement concerning the taxation of bingo. He said:

“The policy of applying VAT and duty to bingo participation fees is entirely consistent with our treatment of other player-to-player games in licensed premises, such as poker played in casinos.”

Similar statements have also been made in response to numerous letters and Parliamentary Questions from honourable Members.

I regret to inform the House that these statements were based on an incorrect understanding of the effect of the legislation relating to gaming duty as set out in the Finance Act 1997. In fact the Finance Act 1997 does not apply gaming duty to participation fees for poker played in casinos, so participation fees for poker played in casinos are liable only to VAT.

I apologise to the House for this misunderstanding.

I can, however, assure the House that HMRC has, nevertheless, been applying the law correctly and casinos have not been required to account for gaming duty on participation fees for poker.

In the light of the effect of the current legislation relating to gaming duty, I will be looking again at the tax treatment of participation fees for player-to-player gaming in casinos.

My right honourable friend the Secretary of State for Health (Alan Johnson) has made the following Written Ministerial Statement.

On 30 August 2007, my department published the first NHS quarterly performance report for 2007-08, which highlights the progress made by the NHS across a range of indicators at the end of the first quarter of this financial year.

The report highlights how local NHS organisations are performing against key promises such as achieving maximum 18-week waiting times and reducing hospital-acquired infections.

The report also shows that the NHS continues to make improvements on financial performance, forecasting a net surplus of £983 million at the year end, compared with a £510 million unaudited surplus at the end of 2006-07. This overall net surplus delivers the necessary stability in the service that will help to ensure that local NHS organisations have the flexibility to continue to improve services for patients.

The report has been placed in the Library and copies are available to honourable Members in the Vote Office. It is also available on the department's website at http://www.dh.gov.uk/en/publicationsandstatistics/ publications/dh_078045

My honourable friend the Parliamentary Under-Secretary of State (Parmjit Dhanda) has made the following Written Ministerial Statement.

My right honourable friend the Secretary of State for Communities and Local Government is today publishing proposed changes to the regional spatial strategy (RSS) for the West Midlands. They follow the public examination held in January 2007 and the panel report published in March.

The panel report largely welcomed the changes submitted by the West Midlands Regional Assembly (WMRA) and considered that the draft revision was broadly compatible with the previously agreed principles of the West Midlands RSS.

The Secretary of State is pleased to support most of the changes recommended by the panel. These include:

new policies to define broad areas for regeneration and growth in the Black Country,

a new policy which replaces Dudley with Brierley Hill/Merry Hill as a strategic centre,

a new policy to emphasise the importance of transforming the environment, and

revisions to the transport priorities to reflect the current status of transport proposals in the Black Country.

In addition, an appropriate assessment of the proposed changes has been completed and the recommendations incorporated.

I have today written to the WMRA with the proposed changes indicating areas where views are particularly sought from any interested parties. There will now be a public consultation period on the proposed changes, which will end on 9 November.

Copies of the relevant document are available in the Libraries of the House and have been provided for all of the region’s MPs, MEPs and local authorities.

The more extensive phase 2 revision to the West Midlands RSS is also under way. The WMRA is considering revisions to housing and employment policies as part of this revision.

My honourable friend the Parliamentary Under-Secretary of State for Transport (Tom Harris) has made the following Ministerial Statement.

The Department for Transport announced to the London Stock Exchange on 14 August 2007 the award of the InterCity East Coast rail franchise to NXEC Trains Ltd, a subsidiary of National Express Group. The franchise will commence on 9 December 2007, and will continue until 31 March 2015 with the last 17 months conditional on set performance levels being reached. NXEC Trains Ltd has undertaken to pay the Department for Transport a premium of £1,414 million net present value over the life of the franchise that will be reinvested in the railways.

The franchise offers value for money to passengers and taxpayers, and provides for more capacity, performance improvements and investment at stations and in on-board services.

Bidders were required to reflect the emerging recommendations of the East Coast Route Utilisation Strategy, a draft consultation document published by Network Rail in June 2007. The contract with NXEC Trains Ltd makes provision from December 2010 for up to 25 extra train services - around 14,000 seats - each weekday and up to 40 more carriages to deliver increased capacity. Until then, the current timetable will continue to be operated in the new franchise, including Leeds half-hourly service improvements introduced in May 2007.

The additional capacity from 2010 would enable a new London to Lincoln service to operate at two-hourly intervals, and an additional London to York service to operate at two-hourly intervals. Faster journeys will also be possible between London and Leeds, York and Edinburgh. NXEC Trains Ltd will reduce delays for which it is responsible by 29 per cent by March 2015. It will work closely with Network Rail to raise the public performance measure to over 90 per cent by January 2010.

NXEC will invest £7.4 million to upgrade station facilities. Up to 2,000 more car parking spaces will be provided by the end of the franchise with half of these expected within the first two years.

Environmental improvements have also been secured. Fuel consumption per passenger-kilometre will be reduced by 28 per cent and four stations will be designated as “green stations”. Pre-series Inter City Express Trains, which will replace the current fleet of high-speed trains, will be trialled on the East Coast Main Line from summer 2012.

On-board improvements include CCTV on all trains and free wi-fi for all passengers. A full restaurant service on 87 weekday services will be offered. A hot food at seat service will be available to standard class passengers.

The Government will continue to limit annual rises of regulated fares—which include season tickets and saver fares—in line with national policy, which is currently RPI+1 per cent. Unregulated fares will be, as with all franchises, the responsibility of the operator.

NXEC has indicated that it may wish to raise unregulated fares by an average of 2.1 per cent above inflation each year over the course of the franchise. Overall, regulated and unregulated fares together are likely to rise by RPI + 1.6 per cent each year throughout the course of the franchise. Annual rises in regulated fares will continue to be capped at RPI+1 per cent.

An improved website will be introduced that will highlight the cheapest tickets available and the expected seat availability on each train. Smartcards will be introduced by 2010.

My right honourable friend the Financial Secretary to the Treasury (Jane Kennedy) has made the following Written Ministerial Statement.

This is to announce a new procedure for dealing with suspected dishonest conduct for indirect taxes, where neither criminal investigation nor the civil investigation of fraud procedure outlined in Code of Practice 9(2005) is appropriate.

Code of Practice 9(2005) covers HMRC investigations of suspected serious fraud against the Exchequer where, for policy or operational reasons, it is considered inappropriate to launch a criminal investigation. Where cases are not suitable for Code of Practice 9(2005) or criminal investigation, for direct taxes, it is already possible for income tax self-assessment and corporation tax self-assessment inquiries to lead to penalties being imposed for either negligent or fraudulent conduct. However until the new penalty provisions in Clause 96 and Schedule 24 of Finance Bill 2007 take effect, there is no equivalent procedure for dealing with lower-level fraud in relation to indirect taxes, with the exception of civil evasion penalties issued at the ports for customs duties and import VAT.

This Statement announces a new procedure which will enable HMRC to tackle cases where dishonesty is suspected in relation to indirect taxes. It also introduces a new Public Notice 160 outlining that procedure. This will bring current practices more closely in line across direct and indirect taxes and help to enable a smoother transition to the new penalty regime put forward in Clause 96 and Schedule 24 of the Finance Bill 2007.

The procedure complements HMRC's policy of providing a level playing field for all businesses by supporting those who wish to comply but dealing more severely with those who seek an unfair advantage through non-compliance. It will be used in appropriate cases after 1 September 2007.

A copy of the new notice, PN160, is being placed in the House of Commons Library.

Statements received between Monday 10 September and Friday 14 September 2007

My right honourable friend the Minister of State for the Armed Forces (Bob Ainsworth) has made the following Written Ministerial Statement.

On 24 July 2006 (Official Report, cols. 71-72WS), my predecessor announced the establishment of a project team to examine in detail opportunities for further rationalisation of our basing arrangements in Germany, through the exploitation of UK defence estate opportunities, including the possible relocation to the UK of Headquarters Allied Rapid Reaction Corps (HQ ARRC), 102 Logistic Brigade (102 Log Bde) and 1 Signal Brigade (1 Sig Bde) over the period 2008-12. This followed on from the earlier announcement by the then Secretary of State for Defence, (John Reid) of the move of 4 Mechanised Brigade (4 Mech Bde) to the UK from Germany and our intention to take the opportunity to make further adjustments to our forces in Germany, where it made sense to do so. My predecessor also announced a series of minor moves which, in addition to the move of 4 Mech Bde, will enable the closure of Osnabrück Station (one of two stations that comprise Osnabrück Garrison). He explained that the project team would examine the feasibility of further moves which would enable the closure of Münster Station - the other element of Osnabrück Garrison - and thereby Osnabrück Garrison as a whole. The relocation of HQ ARRC, 102 Log Bde and 1 Sig Bde would also enable us to close Rhine Garrison in the period 2010-14, concentrating our Germany-based forces in Bergen-Hohne, Paderborn and Gütersloh Garrisons.

Today I am announcing that, having examined the findings of the project team's initial review, I have decided that Headquarters Allied Rapid Reaction Corps (HQ ARRC), 102 Logistic Brigade (102 Log Bde) and 1 Signal Brigade (1 Sig Bde) should move to the UK over the period 2009-14. This initial decision will need to be confirmed following scrutiny of the detailed plans for the moves. The site currently occupied by the RAF at Innsworth in Gloucestershire has been selected as the most suitable for HQ ARRC and its supporting elements, and RAF Cosford in Shropshire is the project team's recommended site for 1 Sig Bde and 102 Log Bde. We will continue to assess other sites for the two brigades until such a time as Cosford's future defence use has been decided. Securing the final approval for this work will also mean that a series of other moves will take place within Germany, which would lead to the closure of Rhine Garrison and Münster Station, the latter completing the closure of Osnabrück Garrison, by 2014.

The project team's work will now focus on drawing up detailed plans for all the moves, including additional infrastructure requirements at the selected UK sites and a clear timetable. This work will start with the proposed move of HQ ARRC. The team will consult all interested parties including local county councils, health and education providers and trade unions. In Germany, we will continue to engage with the relevant authorities and employee representatives at national and local levels.

Our NATO allies have been notified of this decision, including the German Government as host nation.

Although we may make further modest adjustments to our force levels in Germany, our plan remains to base UK forces there in the form of HQ 1 (UK) Armoured Division and the majority of its formations and supporting units, some 15,000 service personnel, for many years to come. These moves and the work of the project team in no way signal a change in either our commitment to the NATO alliance or our overall defence policy, nor do they in any way devalue the continued close bilateral defence relationship between the UK and Germany.

My honourable friend the Parliamentary Under-Secretary of State, Maria Eagle, has made the following Written Ministerial Statement.

I would like to inform the House that Mr Mark Emerton, Mr Michael Allen and Mr John Weeden CB have been reappointed as Commissioners to the Criminal Cases Review Commission. Copies of the press release relating to these reappointments have been placed in the Libraries of both Houses.

My right honourable friend the Secretary of State for Defence (Mr Des Browne) has made the following Written Ministerial Statement.

I am today announcing the results of a review of the defence attache network, which was notified to the House by the then Minister of State for the Armed Forces on 7 February 2007, (Official Report, cols. 924-926W). The review was commissioned to ensure that our resources were deployed in the most cost-effective way, in support of the defence contribution to HMG strategic international priorities.

The role of defence attaches is to promote the Government's policies in the area of international security co-operation. The principal components of this policy are to strengthen international peace and stability by preventing conflicts, by contributing to the transformation of the security structures of vulnerable states, by assisting and building partnerships with those who may contribute to peace support operations and by reducing the risk of terrorism through greater co-operation and communication. In line with this policy, we will be strengthening our representation both in Afghanistan, where we will have a defence attache from April 2008; and in Pakistan, where we will have an additional attache from April 2008.

As part of our rebalancing of resources, defence sections will be closing over the coming year in Albania, Croatia, Guatemala, Ireland, Macedonia, Slovakia and Thailand. We intend to provide non-resident attache cover for these countries (except for Guatemala) from nearby states and, in the case of Ireland, through alternative arrangements. Defence sections in Argentina, Egypt, France, Greece, the Republic of Korea, Malaysia, Poland, the Russian Federation, Spain and Ukraine will retain cover but will reduce their attache numbers by one. There will also be reductions in military support staff and more of their tasks will be undertaken, where appropriate, by civilian personnel. The rank of certain military posts will also be reduced at the next rotation to a level commensurate with their role.

The review of the defence attache network has given an opportunity for us to provide greater emphasis and focus to the MoD's programme of international engagement, and we have confirmed the importance of the role of the attache network in contributing to both defence and broader government strategic priorities in the 21st century. We shall continue to review our attache network, as we have done regularly in the past, to ensure that our investment is effective and relevant to our international interests.

My honourable friend the Parliamentary Under-Secretary for State for International Development (Gareth Thomas) has made the following Statement.

I shall be representing the UK at the EU Development Ministers' Informal Meeting in Madeira on 21-22 September 2007.

The agenda items are as follows:

Friday 21 September

Fragile States

Development Ministers will discuss an issues paper on fragile states with the objective of developing a more coherent approach for the EU to respond to fragile situations and difficult environments. This will include clarifying the comparative advantage of the Commission in fragile situations and developing guidelines for a more coherent and systematic approach to analysing the causes of fragility and consequent interventions.

Development and Security

Following on from the discussion on fragile states, over lunch Ministers will respond to a number of questions on development and security. This is one of the Portuguese presidency's priorities and the Portuguese Defence Minister will also be present.

Humanitarian Consensus

It is the objective to agree a European Consensus on Humanitarian Aid by the end of the year which will help to strengthen the collective efforts of member states and ECHO both to influence global humanitarian policy and to ensure timely and effective assistance on the ground. Discussion will focus on the initial draft consensus.

Economic Partnership Agreements (EPAs)

European Development Ministers are expected to discuss the current state of play of the economic partnership agreements. The deadline for concluding these agreements is fast approaching and there needs to be a focus on encouraging the ACP to put forward their own market access offers. The Government will be urging other member states to ensure that the EU market access offer is not diluted.

Development Ministers are expected to discuss development co-operation within the EPAs. The Government will be urging other member states to continue to give reassurance to the ACP on financial assistance.

My honourable friend the Minister for Local Government (John Healey) has made the following Written Ministerial Statement.

Further to the Statement that my right honourable friend the Secretary of State for Environment, Food and Rural Affairs laid before the house on 26 July, I am today providing a progress report on recovery from the summer floods.

I wish to express the Government's continuing sympathy for those still working to recover from the devastation of the recent floods. The flood waters have gone but the difficulties faced by some households, businesses and communities remain and I pay tribute to the efforts that the emergency services, local authorities and agencies, local voluntary groups, the private sector and individuals have put into dealing with the immediate aftermath and with recovery.

Further to the commitments given by my right honourable friend the Leader of the House, that Ministers will keep Members whose constituencies have been affected updated on a regular basis, I have written three times to update all Members and both I and ministerial colleagues have hosted regular telephone conferences with honourable Members to ensure that local issues and concerns are being picked up. The Inter-Ministerial Group is meeting regularly and the inter-departmental officials group continues to meet weekly. Throughout the recess, government work to support the efforts of those leading local recovery programmes has continued. Ministers are continuing to visit flood-affected areas, and officials both in Government Offices and government departments are in close contact with local authorities and agencies in the affected areas.

Communities and Local Government (CLG)

I announced on 24 August the final payments of the flood recovery grant to local authorities in the area affected by the July floods. A total of £7.4 million was paid to 36 local authorities. This was in addition to the £10 million that was paid in July. This means almost £18 million of funding has now been released from the £20 million that I and my right honourable friend the Secretary of State for Environment, Food and Rural Affairs have previously announced for help to those hardest hit by this summer's floods.

The funding has been provided to local authorities without conditions on use, to allow them to decide how best it should be distributed according to local needs. Many local authorities have used the grants to make payments—either automatic or on application—to households affected by the flooding. Some local authorities have provided a mixed approach of payments and replacement of white goods, again based on locally agreed criteria.

Many local authorities are also utilising established council tax flexibilities to provide discounts to those whose properties are or have been uninhabitable. Some of these discounts are being funded from the grant, others from alternative means.

This is not the only funding available to local authorities. Financial assistance is also available retrospectively through the Communities and Local Government Bellwin Scheme. We have made Bellwin more generous in the exceptional circumstances of both the flooding in July and the June floods. Fifty local authorities have made applications under the June scheme and 52 under the July scheme, 20 of which had already registered for June.

Transport

In addition the Department for Transport (DfT) has been working closely with the most seriously affected LAs and has made £3 million available to support longer run infrastructure costs in flood- affected areas and has appointed consultants to assist local authorities with their applications for claiming emergency capital maintenance funding from the Department for Transport.

Department for Work and Pensions

Community care grants are non-repayable grants to help to support vulnerable people living in the community. An applicant must be in receipt of income support, income-based jobseeker’s allowance or pension credit.

Jobcentre Plus put in place a range of special measures locally to ensure that these grants were easily accessible to people in need who were affected by the flooding.

So far the Department for Work and Pensions has paid community care grants totalling £653,000 to people on qualifying benefits to meet the cost of replacing essential household items.

Schools

The Department for Children, Schools and Families (DCSF) has made available £14 million for flood-affected schools and children's services. Officials, with colleagues from Government Offices, are holding detailed discussions on a case by case basis to determine how best to provide interim and long-term solutions.

Schools play an important role in all communities, both in providing education and as a focus for an increasing range of other activities. It has therefore been vital to get schools back open to pupils as quickly as possible, and I can report that 97 per cent of flood-hit schools reopened on time at the start of term, with the others all open early the following week; some are in temporary premises, but all are providing education to all their pupils. The Government would like to thank all those in schools and their local communities for their efforts to achieve this.

DCSF will be continuing to work with the affected areas to ensure that pupils' education does not suffer as a result of the floods

European Union Solidarity Fund

I am able to confirm that an application was submitted to the European Union Solidarity Fund (EUSF) on 20 August. A provisional assessment of damage caused by the June and July floods is estimated at more than €4 billion—significantly above the €3 billion threshold required for a member state to make an application. We are currently working to refine the detailed estimates. The calculations used to assess whether the EU threshold for applications is met includes insurable costs. The aim of the EUSF, however, is to help member states meet some of the uninsurable costs of dealing with natural disasters, for example, supporting the costs of emergency services, cleaning up and restoring infrastructure to working order.

Work to firm up the details of the application and to respond to initial questions from the Commission continues, and decisions by the Commission on fund applications may take some months.

If the application is successful, the Commission would provide only a proportion of the eligible costs incurred.

Business

Regional Development Agencies (RDAs) have committed more than £11 million to flood recovery packages. They continue to assess the needs of business in the regions and have adapted or expanded their support to meet demands. RDAs report that the principal business issues still being dealt with through the grants are: loss of earnings and trade, property damage, and damage to uninsured stock and machinery.

In total some £1.4 million has so far been approved to support small and medium-sized enterprises, including farmers, across the flood-affected regions of Yorkshire and Humberside, East Midlands, West Midlands, south-west and south-east.

Ministers from the Department for Business, Enterprise and Regulatory Reform (BERR) have hosted two flood summits in early September. These were hosted in Yorkshire and West Midlands. These are aimed at ensuring Government are doing all possible to help business get back on its feet quickly. A further summit will follow in the south-west and other regions as necessary. All will be followed by a commitment to hold regular regional business forums, beginning in the autumn.

Tourism

On 14 August the Department for Culture, Media and Sport announced a £1 million cash injection to promote tourism, rural destinations and visitor attractions. This will fund a targeted marketing campaign for the flood-affected regions of England and businesses such as B&Bs, caravan parks and attractions.

Insurance

I know that insurance remains an issue of concern to some households and businesses. Government continue to have constructive relations with the Association of British Insurers, which provides regular updates on progress with claims. A task group of officials and the insurance industry have been meeting weekly during the recess to address issues relating to the insurance industry's role in the flood recovery process and Ministers from CLG, Defra, HMT and BERR are set to meet industry leaders again later this month. The ABI has reported that all claimants should now have been visited or contacted by their loss adjuster if necessary and that 20 per cent of claims have now been settled.

Flooding Lessons Learned Review

Finally, on 8 August my right honourable friend, the Secretary of State for Environment, Food and Rural Affairs, announced that the Flooding Lessons Learned Review will be led by Sir Michael Pitt, Chair of the South West Strategic Health Authority. An interim report will be submitted by the end of the year with a final report in the spring/summer of 2008.

As previously reported to the House, the review is seeking views from those who suffered from the impact of the flooding, including affected residents, businesses and public organisations, such as schools and hospitals, as well as those involved in the emergency response. Locally conducted reviews will obviously be important for local planning decisions and provide a useful source of evidence for the national review.

Comments to the review can be submitted to Flooding Lessons Learned Review, Cabinet Office, 10 Great George Street, London, SW1P 3AE, email: 2007floodreview@cabinet-office.x.gsi.gov.uk

My honourable friend, the Parliamentary Under-Secretary of State, Bridget Prentice, has made the following Written Ministerial Statement.

In response to a recommendation from the Civil Justice Council, I am establishing an ad hoc Advisory Committee on Civil Costs to provide independent advice on costs in civil claims. Advice provided will be based on evidence and economic analysis, and the committee will be chaired by Professor Stephen Nickell, with whom I look forward to working. I will make a further announcement on the membership of the committee and its programme of work in due course.

My right honourable friend the Lord Chancellor and Secretary of State for Justice has made the following Written Ministerial Statement.

On 1 October 2007, I will launch the Office of the Public Guardian. The new agency will be created by the transition of the current Public Guardianship Office into the new Office of the Public Guardian (OPG). The OPG will support the Public Guardian to regulate all decision-makers who are appointed to make the whole range of finance, health and welfare decisions for people who lack capacity and those who live and work with them. The OPG will also provide support for decision-makers appointed by the Court of Protection to ensure that they have the necessary skills and information to effectively manage the affairs of someone who is not capable of doing so.

I have set the following key performance indicators for the Office of the Public Guardian for 2007-8:

KPI 1: Lasting Power of Attorney/Enduring Power of Attorney

(a) The OPG will register and return 98 per cent of correctly lodged LPAs/EPAs, where there are no objections, within five working days of the statutory waiting period.¹

(b) The OPG will inform the applicant where an application has not been made properly with details of the error within five working days in 80 per cent of cases.

KPI 2: Supervision of Deputies

All deputyship cases will require a supervision regime based on a risk assessment. Risk criteria include: whether a deputy has been refused credit or is an undischarged bankrupt; whether the deputy has any financial interests which conflict with those of the client; the value of the client's estate; the relationship of the deputy to the client and any objections which were made to the appointment to the deputy.

(a) 90 per cent of deputyship cases will be assessed and a supervision level set within 30 days of the court order being served on the Public Guardian.

(b) 100 per cent of ongoing deputyships with active supervision will be reviewed within 13 months of the court order being issued.

(c) The OPG will audit 10 per cent of type II supervision cases per year.

KPI 3: Customer Contact

(a) The OPG will respond to 95 per cent of correspondence (including letters, faxes and emails) within 15 working days.

(b) 85 per cent of telephone calls to the Customer Contact Centre will be answered within 60 seconds.

(c) During the first six months of operation the OPG will monitor the use of the Customer Contact Centre and by April 2008 will have developed any further appropriate performance measures required.

KPI 4: Investigations

The OPG will carry out investigations where required.

(a) The OPG will put in place an approved action plan in 100 per cent of investigations cases within 14 days of receipt.

(b) 75 per cent of investigations will be completed within three months.

KPI 5: Customer Satisfaction

Based on inherited experience the OPG will investigate, develop and agree a baseline for future customer satisfaction. It will carry out at least one full customer satisfaction survey.

The OPG will set an agreed process for surveying customer satisfaction by April 2008.

KPI 6: Finance

Based on the statutory instrument for fees approved by Parliament the OPG will aim to achieve the following targets for full cost recovery.

(a) OPG 100 per cent full cost recovery.

(b) Court of Protection 63 per cent full cost recovery.

Full cost excludes the cost of remissions as the Court of Protection has discretion to waive a fee if the client or their dependants would experience hardship by paying and it is therefore considered a social subsidy not recovered as detailed in the OPG's publicised remissions and exemptions policy.

Copies of the Office of the Public Guardian Framework Document and Business Plan will be available in the Printed Paper Office, the Vote Office and in the Libraries of both Houses from 17 September 2007 and from the website of the OPG (www.publicguardian.gov.uk) from 1 October 2007.

¹ The statutory waiting period is 42 days from the latest date on which notices of intention to register the LPA were sent or given and 35 days for EPAs.

My honourable friend the Minister of State for Security, Counter Terrorism, Crime and Policing (Mr. Tony McNulty) has today made the following Written Ministerial Statement.

I can today announce that the Independent Police Complaints Commission (IPCC) Report on Police Road Traffic Incidents has been laid before Parliament and will be published tomorrow, Tuesday 18 September 2007.

This is the first report from the IPCC on this subject. The report provides findings from a study of cases involving serious and fatal injuries resulting from road traffic incidents involving the police between April 2004 and September 2006. It includes recommendations for police forces and the Association of Chief Police Officers for better management of police pursuits and improvements will be made to the Association of Chief Police Officers' Guidelines for the Management of Police Pursuits.

My honourable friend the Minister of State for Security, Counter Terrorism, Crime and Policing (Mr. Tony McNulty) has today made the following Written Ministerial Statement.

Section 14(1) of the Prevention of Terrorism Act 2005 (the 2005 Act) requires the Secretary of State to report to Parliament as soon as reasonably practicable after the end of every relevant three-month period on the exercise of the control order powers during that period.

The level of information provided will always be subject to slight variations based on operational advice.

Control orders continue to be an essential tool to protect the public from terrorism, particularly where it is not possible to prosecute individuals for terrorist-related activity and, in the case of foreign nationals, where they cannot be removed from the UK.

During the period 11 June 2007 to 10 September 2007, two new control orders were made with the permission of the court under Section 3(l)(a) of the 2005 Act and, on 25 June and 4 July 2007, served on two British citizens.

Control orders can be made and renewed only if they meet the test set out in the Prevention of Terrorism Act in that:

(a) there are reasonable grounds for suspecting the individual is or has been involved in terrorism-related activity; and

(b) it is necessary, for purposes connected with protecting members of the public from a risk of terrorism, to make / renew a control order imposing obligations on him.

Obligations are tailored to the individual concerned and are based on the risk that individual poses. Each control order is kept under review to ensure that the obligations remain necessary and proportionate. Specifically, as Lord Carlile recommended in his February 2006 report on the operation of the control order system, the Home Office has established a Control Order Review Group (CORG), with representation from law enforcement and intelligence agencies, to keep the obligations in every control order under regular (quarterly), formal and audited review and to facilitate a review of appropriate exit strategies. During this reporting period, four review groups were held in relation to the orders currently in force. In addition, further meetings were held on an ad-hoc basis as specific issues arose.

As a result, during this reporting period, five control orders were renewed in accordance with Section 2(6) of the 2005 Act. Four control orders have expired and one has been revoked since the last report.

In total, therefore, there are 14 control orders currently in force, eight of which are in respect of British citizens. Four of the individuals live in the Metropolitan Police Service area; the rest fall within other police force areas.

Three of the 14 individuals currently subject to a control order have absconded—one in January 2007 and two in May 2007. One further individual absconded during this reporting period—in June 2007. His control order expired on 31 July 2007. Details in relation to this abscond were given in a Written Statement on 21 June 2007. Parliament has also previously been informed of a further individual who absconded in May 2007. This individual is currently on remand and therefore when his control order expired during this reporting period no further control order was made against him.

The anonymity order for the individual who absconded in September 2006 was lifted by the High Court on 25 May 2007. The anonymity orders for the two individuals who absconded in May 2007 were lifted by the High Court on 23 May 2007. For police operational and legal reasons, the Government are not currently seeking to lift the anonymity orders of the other two individuals who absconded (one in January 2007 and the other in June 2007). Finding individuals who have absconded is an operational matter for the police and investigations are ongoing.

During this reporting period, 25 modifications of control order obligations were made and 23 requests to modify a control order obligation were refused. A right of appeal exists in Sections 10(1) and (3) of the 2005 Act against decisions by the Secretary of State relating to the modification of obligations imposed by non-derogating control orders. Appeals have been made in respect of 10 modification requests that were refused and one modification which was made by the Secretary of State.

There have been no prosecutions for breaches completed during this reporting period.

During this reporting period, three court judgments relating to control orders were handed down from the High Court. In the control order review hearing in Secretary of State for the Home Department v AL [2007] EWHC 1970 (Admin) the High Court accepted that the Secretary of State had reasonable grounds for suspecting that the individual was involved in terrorism-related activity and that the control order and obligations were necessary to protect the public. The control order modification hearing in Secretary of State for the Home Department v AF [2007] EWHC 2001 (Admin) was heard between 23 and 25 July 2007. AF had appealed the Secretary of State's decision to refuse 10 modification requests. The High Court upheld the Secretary of State's refusal to make eight of the requested modifications, but directed that the Secretary of State slightly modify two of AF's obligations.

The control order modification hearing in Secretary of State for the Home Department v Mahmoud Abu Rideh [2007] was heard on 29 August 2007. On 7 September, the High Court dismissed Mr Abu Rideh's appeal.

The House of Lords heard the cases of JJ and others, MB, AF and E in July and considered issues relating to Articles 5 (Right to Liberty) and 6 (Right to a Fair Trial) of the European Convention on Human Rights. In relation to E, the Lords also considered the extent, if any, of duties on the Secretary of State under Section 8 of the 2005 Act and the duty to consult the family about the impact on them of the control order. We await the outcome.