Monday Volume 530 4 July 2011 No. 181

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Monday 4 July 2011

£5·00 © Parliamentary Copyright House of Commons 2011 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 1205 4 JULY 2011 1206

Dr Fox: The new operating model incentivises delivery House of Commons by accountable senior leaders. We understand entirely the need for the transformation process to be rigorous and for the reforms to be pushed through. I assure my Monday 4 July 2011 hon. Friend that we will give all the energy required to ensure that that happens. The House met at half-past Two o’clock Mr Frank Roy (Motherwell and Wishaw) (Lab): How many people will be made redundant as a consequence PRAYERS of the Levene report?

Dr Fox: The original numbers for a reduction of [MR SPEAKER in the Chair] 25,000 in the civil service took into account what we estimated would be some of the reductions under the Levene proposals.

Oral Answers to Questions Mr James Arbuthnot (North East Hampshire) (Con): When will the Ministry of Defence’s three-month review of procurement projects report? Will it, as the name implies, take three months? If so, when did it begin? DEFENCE Dr Fox: We are approaching the end point of that The Secretary of State was asked— review, and it will certainly be in the next few weeks. There are a number of complex issues to sort out, as my right hon. Friend understands, not least how to go Defence Reform about setting a long-term budget that allows the MOD to plan with certainty. When we have finished those 1. Matthew Hancock (West Suffolk) (Con): What deliberations, we will make them known. progress his Department is making in implementing the recommendations of Lord Levene’s report on defence Angus Robertson (Moray) (SNP): The Secretary of reform. [63132] State is aware that the decision on military basing is imminent and that an all-party submission has called The Secretary of State for Defence (Dr Liam Fox): for the retention of RAF Lossiemouth as an air base on Before I answer my hon. Friend’s question, I confirm to defence and security grounds. He is also aware of the the House that a British serviceman is missing in unique economic threat to the economy of Moray and Afghanistan and that an extensive operation to locate the north of Scotland of a double base closure. Will he him is under way. The individual was based in central take this opportunity to say when he will make a Helmand and was reported missing in the early hours of statement to the House on the military basing review? this morning. His next of kin have been informed and will be updated as the operation continues, so no other Dr Fox: I fully understand all the hon. Gentleman’s family need be concerned. I recognise that there will be arguments. As I have always said, we regard the military many questions, but speculation on an issue of this elements as having paramount importance, but we nature is unhelpful. I urge restraint from colleagues and understand the other elements. Having taken a number the media, and assure the House that the United Kingdom of the key decisions over the weekend, I hope that we and the international security assistance force are taking will make progress very shortly. all necessary and appropriate action. In answer to my hon. Friend, all parts of the Ministry Nicholas Soames (Mid Sussex) (Con): I warmly commend of Defence, civilian and military, are committed to my right hon. Friend for the determination he is bringing making the reforms happen, and some have already to bear to push through the Levene reforms. Does he been put in place. I have chaired the first meeting of agree that one of the most important issues affecting the new Defence Board; we have introduced the new the three services is the need for “purple” command and infrastructure organisation and corporate service models; control and for decisions to be taken on a tri-service and the new Defence Business Services organisation basis, and that that should be pushed through? stands up today. We will put all the other elements in place as quickly as possible. Lord Levene’s recommendations Dr Fox: That is the natural way in which defence is will mean the biggest change to the MOD in a generation. developing in this country, as in others. We wanted to It will take time to do it all and get it right. set up the joint force command to carry that process forward in a constructive and transparent way. It will Matthew Hancock: As a member of the Public Accounts also, as I said in my statement to the House, allow Committee, I know that our reports have frequently career progression right up to four-star level for those shown that attempts to reform the MOD have failed who might not get preferment through the traditional through lack of consistency and leadership, and that as single-service structure. It is therefore not only good for a result the Secretary of State is having to deal with the defence but is a thoroughly meritocratic reform. shambles that he inherited. Will he assure me that he will not make the same mistakes as the previous Mr Jim Murphy (East Renfrewshire) (Lab): I associate Government, and instead see through the radical reform the Opposition with the Secretary of State’s comments that is needed? about our missing soldier in Afghanistan, and I appreciate 1207 Oral Answers4 JULY 2011 Oral Answers 1208 the fact that he took the time to brief me personally it is too early for planning. The situation in Libya could earlier this afternoon. We all know that our forces are go on for some time yet, but equally the forces of the both brave and brilliant, and this is a reminder of the uprising could be in Tripoli at any time. Is he seriously daily danger they face. The Opposition, the entire House suggesting that we still have to wait to plan for the and, more importantly, everyone in the country, regardless conflict’s aftermath? I do not think it is going to be like of their view on the conflict in Afghanistan, will wish what happened in Tunisia—it will be a lot more difficult the Government and our forces well in rescuing this than that, and somebody will have to provide some individual soldier. support. Will the Secretary of State assure us that not a penny piece that is currently planned for supporting the operation Dr Fox: A great deal of planning, looking at a range in Afghanistan will be affected by the implementation of scenarios, is being undertaken by the National Security of the recommendations of the Levene report? Council and across Whitehall Departments, and a range of important discussions are being held with our allies, Dr Fox: Yes, I can give the right hon. Gentleman that not least at the large gathering of military leaders in assurance. We have ensured that nothing in our military London last week. We could well see the collapse of the planning, nothing that we are doing in Libya and nothing Libyan regime over a short period, but it could take that is happening financially will in any way undermine some considerable time yet. I am afraid that I think it is our operations in Afghanistan. unlikely that the opposition forces will enter Tripoli in the near future. Post-conflict Security (Libya) Middle East and North Africa 2. Mr David Crausby (Bolton North East) (Lab): What role he expects his Department to play in establishing post-conflict security in Libya. [63133] 3. Karen Lumley (Redditch) (Con): What recent assessment he has made of the security situation in the The Secretary of State for Defence (Dr Liam Fox): middle east and north Africa; and if he will make a We are in discussions with Whitehall colleagues, statement. [63134] international organisations and allies regarding a post- conflict solution in Libya. It is too early to speculate on 8. Paul Uppal (Wolverhampton South West) (Con): what might be required and who might be involved. What recent assessment he has made of the security situation in the middle east and north Africa; and if he Mr Crausby: Can the House be assured that the plan will make a statement. [63140] for peace in Libya will be as robust as the plan for war? Is the Secretary of State absolutely certain that we will 16. Robert Halfon (Harlow) (Con): What recent not underestimate the size of the task in the way that assessment he has made of the security situation in the pretty well everybody did in the case of both Iraq and middle east and north Africa; and if he will make a Afghanistan? statement. [63149]

Dr Fox: The hon. Gentleman asks a key question. The Minister for the Armed Forces (Nick Harvey): As How the transition occurs is of key importance. If there the Foreign Secretary has said, demands for greater is some political settlement and an orderly handover to political, social and economic participation will continue a new authority in Libya, the chances of maintaining in the middle east and north Africa. We assess that the order are much greater. We are working towards that security situation will remain fragile unless Governments with the contact group and others, and it makes sense in the region work to fulfil the aspirations of their for NATO and the United Nations to plan for all people. eventualities when we see the back of Colonel Gaddafi, as we all hope will soon happen. Karen Lumley: Will my hon. Friend assure the House Mark Lancaster (Milton Keynes North) (Con): I am that the UK has sufficient resources in place to honour sure the Secretary of State will join me in paying tribute its commitment under UN Security Council resolution to the work of the stabilisation unit on post-conflict 1973 and continue operations in Libya for as long as is security in Libya. Given the restrictions of the existing necessary? United Nations resolution, does he feel that a further UN resolution might be required to carry out that Nick Harvey: I am pleased to give precisely that work? confirmation. As the Chief of the Defence Staff has said, we can sustain the operation for as long as necessary. Dr Fox: It will depend on the situation on the ground We have flexible and adaptable forces. That is not to say and how benign the environment is. At the moment we that sustaining operations will not put stress on people do not envisage the need for another UN resolution, and assets, but we are perfectly capable of doing so, and and we believe that the orderly handover to the UN and nobody should be in any doubt about our determination. a new Libyan authority should be possible without one. Of course, that is constantly kept under review by my Paul Uppal: It is as well to remind the House that the right hon. Friend the Foreign Secretary. international community came together to avert an injustice and a massacre in Benghazi. Does my hon. Mr Bob Ainsworth (Coventry North East) (Lab): Friend agree that it is essential that we keep that Although it is understandable that the Secretary of international community cohesion and effort on this State might be a little reticent, it is worrying that he says most pressing issue? 1209 Oral Answers4 JULY 2011 Oral Answers 1210

Nick Harvey: My hon. Friend makes a good point. called us into action, but that action has so far shown to The international community acted very speedily to be perfectly manageable within the arrangement that deter the threat to civilian life in Libya. The sustaining the strategic defence and security review laid down. No of that effort in Libya is absolutely international in reason has been provided at this stage for anybody to nature. It is essential to a successful outcome that all contemplate a different arrangement. involved retain that cohesion and determination of purpose, and that all involved plan for what will follow, which was questioned a minute ago. Defence Exports

Robert Halfon (Harlow) (Con): Does my hon. Friend 4. Jack Lopresti (Filton and Bradley Stoke) (Con): agree that a Palestinian state with Hamas in part control What steps his Department is taking to promote is a major defence threat, not just to Israel but to the defence exports. [63135] wider region? Does he also agree that there should be no recognition of a Palestinian state until Hamas recognises Israel’s right to exist, renounces violence and recognises 11. Chris Skidmore (Kingswood) (Con): What steps existing treaties? his Department is taking to promote defence exports. [63143] Nick Harvey rose— The Parliamentary Under-Secretary of State for Defence Mr Speaker: Order. I am sure the Minister will answer (Mr Gerald Howarth): We are supporting defence exports with reference to the responsibilities of the Ministry of through an active and innovative defence diplomacy Defence. initiative, working closely with the UK Trade & Investment Defence & Security Organisation. Exports help to build Nick Harvey: Those are pre-eminently matters of and enhance relations with allies, to support UK defence foreign policy which my hon. Friend should put to the industry, and to reduce the cost of equipment for Britain’s Foreign Secretary, who will have heard the question and armed forces. will reflect upon it. Ministers and officials from across Government, including my right hon. Friend the Prime Minister, are Mr Denis MacShane (Rotherham) (Lab): In terms of already actively promoting British defence exports overseas. the killing of civilians, torture, repression, and the We are also embedding exportability into the early export and support of terrorism, does the Ministry of stages of the Ministry of Defence acquisition cycle. By Defence draw any distinction between Colonel Gaddafi considering export issues early and offering partnership and Bashar al-Assad of Syria; and if so, what is it? at the design stage, we aim to increase export opportunities, which should result in reduced acquisition costs to the Nick Harvey: Again, that is predominantly a question MOD. of foreign policy, but clearly the foreign policy circumstances are very different in the two countries. In the case of Jack Lopresti: I thank my hon. Friend for that response. Libya, a regional power invited an intervention and a The Government have made positive changes in how UN Security Council resolution authorised all necessary they work with the UK defence industry to achieve force. In the case of Syria, no regional body is inviting better mutual benefits. However, what more can the an intervention; more to the point, as yet, there has Government and industry do so that we take an even been no progress on a UN resolution, although the UK better approach to exports throughout the whole of the has a draft before the UN. UK defence sector, including MBDA and many other companies in my constituency, to maximise opportunities Keith Vaz (Leicester East) (Lab): As the Minister for the UK? knows, the situation in Yemen is now critical. Have the Government received any request from the acting President Mr Howarth: I am glad that my hon. Friend noted of Yemen for military assistance by way of advisers or the extraordinary efforts that I and my ministerial colleagues any other assistance whatever? across all Departments are making. There is no complacency. The defence exports support group was Nick Harvey: I can confirm that we have received no set up by my right hon. Friend the Secretary of State such requests. specifically to act as a forum for Ministers to plan and focus their support to defence exports. I would like to Nick Smith (Blaenau Gwent) (Lab): Does the Minister take this opportunity to congratulate MBDA on the recognise that new threats to the UK following the Arab fantastic job it is doing in supporting current operations spring make the national security strategy out of date? in Afghanistan through the provision of some outstanding Will he update the strategy in the light of those recent equipment. I hope that he will convey that message to events? his constituents. I am working with MBDA to see what we can do to help promote further exports. Nick Harvey: The national security strategy anticipated a variety of threats from different parts of the globe Chris Skidmore: Airbus has recently set up a new throughout its 10-year time frame. It proposed that we research and development centre at the national composite should have flexible and adaptable forces that are capable centre in my constituency at the Bristol and Bath science of responding to different scenarios in different ways at park. Will the Minister welcome this development, and different times. The momentum of activity following does he agree that effective research and development is the uprisings in north Africa and the middle east has crucial to promoting defence exports? 1211 Oral Answers4 JULY 2011 Oral Answers 1212

Mr Howarth: I assure my hon. Friend that I am very Jack Dromey: Britain’s defence industries lie at the aware of the work going on his constituency—I have heart of our economy. The Government are delaying been briefed on it—and I think it is a sector in which the vital defence orders for our armed forces, and the United Kingdom enjoys outstanding strength. I have Secretary of State has said that he will buy off the shelf also visited the Airbus facility at Filton, where the using open competition in the global marketplace. Does wings for the A400M are built. That aircraft has fantastic the Minister not recognise the anxiety and uncertainty export potential, and I hope that it will be a world-beater. that this is causing to tens of thousands of defence workers all over Britain who, like our armed forces, give John Woodcock (Barrow and Furness) (Lab/Co-op): outstanding service to this country? How does the Minister expect successfully to sell British industry abroad when his muddled defence review is Peter Luff: First, I am happy to say that the shelf is squeezing firms at home? Is he aware that the pioneering stacked high with British products, and that makes us lighting firm in my constituency, Oxley, has been forced extremely successful in the international market. Britain to shed another 13 jobs and cites the difficulties created is the second greatest exporter of defence equipment—and by the Government’s defence review as a key factor in long may that be the case. On the other comments of that decision? the hon. Gentleman, whom I hold in high regard—we have had discussions on British industry before—I would Mr Howarth: It might have escaped the hon. Gentleman’s point out that our life would be so much easier had we notice that the difficulties that the MOD faces are not inherited a total mess of a defence budget, including entirely the fault of the right hon. Member for Kirkcaldy a £38 billion black hole. The things he is complaining and Cowdenbeath (Mr Brown), the former Prime Minister, about were the fault of the previous Government. who destroyed the country’s public finances and forced the Government to take measures to try to restore Richard Fuller (Bedford) (Con): The previous Labour them. We are ensuring that we maximise the defence Government sold the defence contractor QinetiQ to a industry’s opportunities for first-class British kit in the City firm that, a couple of years later, sold it for eight export market. If he would like representatives from times the value and closed its plant in Bedfordshire with Oxley to come and tell me about it, I would be happy to a consequential loss of employment. Will my hon. meet them. Friend ensure that he does a better job of defending our defence industrial base than the previous Labour Mr Russell Brown (Dumfries and Galloway) (Lab): Government did? The Secretary of State has made his position clear: defence procurement will be based on open competition Peter Luff: Speaking as someone from Worcestershire, in the global market and buying off the shelf. How does where QinetiQ also has a very large presence, I absolutely that square with supporting UK industry? The hon. understand what my hon. Friend is saying. It certainly Member for Kingswood (Chris Skidmore) asked whether would not be difficult to do a better job than the last he recognises the absolute necessity for ongoing support lot did. for research and technology within the sector to make it clear to companies in the sector that the Government Michael Dugher (Barnsley East) (Lab): The Government are firmly behind what they are doing. promised a White Paper on defence procurement in the spring of this year, but it still has not appeared. They Mr Howarth: We fully recognise the importance of are continuing to take major decisions on procurement research and technology, which is why the Government and the process of procurement in the MOD before have sought hard to protect that budget and why my they have set out any strategy on the industrial base. hon. Friend the Minister with responsibility for defence Will the Minister tell the House exactly why the White equipment, support and technology is also working Paper has not yet been published? Is his definition of hard and will shortly produce a White Paper on the “spring” the time of year when the clocks go back and subject. I assure hon. Members that nobody is more the leaves come off the trees? aware than the Government of the importance of the British manufacturing defence base as a basis upon which to generate wealth for the UK through exports. Peter Luff: I am delighted to be able to tell the hon. Gentleman that I can give him an answer to that question. Defence Industrial Base We have delayed publication because of the large number of defence-related reviews that the MOD is conducting at present, including the Levene review, the reserves 5. Jack Dromey (Birmingham, Erdington) (Lab): review and the basing review. These will all lead naturally What steps the Government have taken to strengthen to the defence equipment and support White Paper, the defence industrial base; and if he will make a which will be published later this year. The Yellow Book statement. [63136] review on non-competitive contracts will be released at the same time, not in July as originally intended, because The Parliamentary Under-Secretary of State for Defence the two documents will naturally sit together. (Peter Luff): We will publish a White Paper later this year, following up the recent public consultation on last December’s “Equipment, Support and Technology for Surface Fleet UK Defence and Security”Green Paper. The Government are already taking effective steps to provide much greater 6. Dr Julian Lewis (New Forest East) (Con): What support to UK defence exports and to make it easier for assessment he has made of the shape and size of the smaller enterprises to do business with the public sector, future surface fleet of the Royal Navy; and if he will including with the MOD. make a statement. [63138] 1213 Oral Answers4 JULY 2011 Oral Answers 1214

The Minister for the Armed Forces (Nick Harvey): As mission in providing both air defence and ground attack, we set out in the strategic defence and security review, has demonstrated exceptional levels of survivability under Future Force 2020 the future surface Navy will and, in its ground attack role, a targeting capability with have a world-class carrier strike capability, with 19 frigates minimal collateral damage, proving that it is a truly and destroyers, including the state-of-the-art Type 45 formidable aircraft. destroyer; an amphibious fleet able to land and sustain a commando group from the sea; 14 mine countermeasures Mr Hollobone: Given that both platforms are being vessels; a global oceanographic survey capability; and a deployed in theatre in roles beyond their original fleet of resupply and refuelling vessels. Work is also specification, will my hon. Friend please comment in under way on the requirements and design of the Type 26 more detail on the ground attack role of the Typhoon, global combat ship, our next generation frigate. and on the Apache being deployed for the first time at sea? Dr Lewis: I am encouraged by that response. Does the Minister remember when he and I sat on parallel Peter Luff: The Apache has been on about 20 sorties Opposition Benches under the previous Government as with no known civilian casualties—an exceptional testimony the size of the frigate and destroyer fleet went down to that aircraft. Typhoon is performing exceptionally successively from 35 to 32 to 31 to 25 and then to 19? well in Libya. My hon. Friend is right that it was Will he specifically confirm that that figure of 19 frigates originally conceived as an air defence aircraft; it is now and destroyers will not be reduced to a pathetically in its first multi-role combat aircraft role, and it is inadequate baker’s dozen, as posited in some parts of performing superbly. As Wing Commander J Attridge, the press? the operational Typhoon detachment commander said, “the Typhoon has come of age” Nick Harvey: I can certainly confirm that the situation remains unchanged from the SDSR. The future force over the skies of Libya and we are seeing the maturation will comprise 19 destroyers and frigates. It was a matter of the RAF’s first multi-role combat fast jet aircraft of great regret that the Government had to make a since world war two. We are all delighted with its range of cuts in the SDSR, but that was a result of the performance. general economic climate and, specifically, of the defence black hole that we inherited. Mr Carswell: Given that historically we have invested many billions in cold war era Eurofighters, but perhaps Mr Kevan Jones (North Durham) (Lab): On the size a little less on the unmanned aerial vehicles we need, of the surface fleet, the First Sea Lord told the Defence does the Minister have any plans to switch resources Committee on 11 May: from the former to the latter? “We would be challenged to find further platforms to rotate through, and to continue to maintain the overseas commitments Peter Luff: It is not an either/or situation. UAVs have that are standard operating requirements.” their role to play, but Typhoon is not a cold war legacy; Will the Minister tell the House exactly how the Royal it has proved to be an exceptionally capable modern Navy will sustain its operations in Libya, and what aircraft, taking on the world and proving its exceptional impact those operations are having on the Royal Navy’s worth in Libya. I am very confident of success in the ability to deliver what was set out in the SDSR? large number of ongoing export campaigns around the world. Typhoon is a remarkable modern aircraft with a Nick Harvey: As I said in answer to an earlier question, very bright future ahead of it. there is no denying that the pace and longevity of operations in Libya put a stress on the fleet. However, Accommodation Costs the Libyan operation is a high priority, and we will ensure that it has the necessary resources. HMS Liverpool remains on task in the Mediterranean in support of the 9. Mr Jim Cunningham (Coventry South) (Lab): How NATO-led operations. We have plans for her relief in much his Department spent on accommodation in London due course but, for operational security reasons, I am for military officers and staff of his Department in the not going to say which ship will be involved. last 12 months; and if he will make a statement. [63141]

Operation Ellamy The Parliamentary Under-Secretary of State for Defence (Mr Andrew Robathan): Over the last 12 months, the Ministry of Defence spent some £25 million on renting 7. Mr Philip Hollobone (Kettering) (Con): What 3,000 service family accommodation properties and assessment he has made of the Typhoon and Apache 1,000 substitute family and single accommodation platforms in Operation Ellamy. [63139] properties in London for entitled service personnel. Substitute properties were rented only when no suitable 18. Mr Douglas Carswell (Clacton) (Con): What MOD accommodation was available. We seek to get assessment he has made of the performance of Eurofighter best value for money. Travel and subsistence payments Typhoon in Operation Ellamy. [63151] for service and civilian personnel relating to short-term detached duty, permanent transfer, which involves move The Parliamentary Under-Secretary of State for Defence of home, or temporary transfer in London cannot be (Peter Luff): Typhoon aircraft and Apache attack identified separately. However, for civilian personnel in helicopters have performed very well in Operation Ellamy, London, the MOD imposes a monthly rental ceiling of proving their military worth and fulfilling all the operational £1,250. Personnel based in the London area are undertaking tasks asked of them. Typhoon, in its first multi-role essential duties in a range of locations. 1215 Oral Answers4 JULY 2011 Oral Answers 1216

Mr Cunningham: Given the financial difficulties of Bob Russell (Colchester) (LD): Will the Secretary of the MOD and the worldwide economic situation that State clarify whether the co-operation between the French we inherited, the present Government have made the and the UK armed forces will enable in 2015 celebrations position worse. With all these defence cuts going on, of that great away win over the French—the battle of particularly among specialist police in the MOD, how Waterloo? does the Minister justify spending £500,000 on a trip to America, which was cancelled last year? Dr Fox: It is for the Department for Culture, Media and Sport to celebrate, and carry the budget for celebrating, Mr Robathan: I am not entirely sure how that question historic events. It does no country a disservice, however, relates specifically to my previous answer, but I will of to remember that we have benefited from our armed course answer it. As I understand it, the trip is part of forces in security not only today but throughout our the Defence Academy course, and 300 people went to history. America for a week or whatever. It seems to me that this is a reasonable use of defence expenditure to ensure that Operation Ellamy people are properly trained at the Defence Academy and that they gain a proper understanding of the United 12. Mr David Hanson (Delyn) (Lab): What recent States, which is, after all, our most important ally, with assessment he has made of the likely date for achievement which we are much engaged in Afghanistan at the of the objectives set for Operation Ellamy. [63144] moment. The Secretary of State for Defence (Dr Liam Fox): French and UK Armed Forces Operation Ellamy is helping to enforce UN Security Council resolution 1973. We have made it clear repeatedly, and I have done so in the House, that we will continue 10. Neil Carmichael (Stroud) (Con): Whether he has operations until Gaddafi stops attacking the Libyan discussed with ministerial colleagues the effectiveness people and they can live in peace and security. of co-operation between French and UK armed forces; and if he will make a statement. [63142] Mr Hanson: I assure the Secretary of State that the Opposition support the objectives of the operation. For The Secretary of State for Defence (Dr Liam Fox): I clarity, however, will he tell the House the cost to date of have regular discussions with my ministerial colleagues the operation, its ongoing monthly cost, and the financial about our bilateral co-operation with France, following provision he is making for the hopeful post-conflict the signature of the defence and security co-operation activity that we discussed earlier? treaty last November. The aim of the treaty is to develop further co-operation between our armed forces and to Dr Fox: Assuming our operations continue until improve their ability to work together more effectively. September, which is not unrealistic, we assess the cost to be about £260 million. I have set out the details of that Neil Carmichael: I have considerable experience of in a written answer to the House. dealing with our allies, as my wife is French. Does the Secretary of State believe that this alliance means making Arms Export Review better use of our budget for cost-effectiveness and for strategic planning? 13. Simon Hughes (Bermondsey and Old Southwark) (LD): What input his Department has had to the arms Dr Fox: I am pleased to hear about my hon. Friend’s export review being undertaken by the Foreign and personal entente cordiale, and I hope that the relationship Commonwealth Office. [63146] we have with France in defence will turn out to be as fruitful. We certainly aim to ensure the best use of The Minister for the Armed Forces (Nick Harvey): money in future procurement and the development of MOD officials have engaged with Foreign Office colleagues projects, but above all we have been looking at the on the review of export licensing previously announced respective doctrines of our armed forces to ensure greater on 16 March by the Foreign Secretary. interoperability. France is a natural partner of the UK in being willing both to spend and deploy, which cannot Simon Hughes: Given the considerable interest that be said of a number of our other European partners in there has been in export licences in relation to the NATO. middle east and north Africa, and the desire of many of our constituents to see a change in the old regime and system and a reduction in arms sales abroad, will my Alison Seabeck (Plymouth, Moor View) (Lab): Will hon. Friend tell us whether we are likely to have the any of the discussions with the French Government on results of the review before the summer recess, and working more closely together and on cost cutting lead whether we will have an opportunity to debate them on to the scenario suggested in Jane’s that 3 Commando the Floor of the House? Brigade Royal Marines could be disbanded? I hope that the Secretary of State will reassure my constituents, Nick Harvey: I understand that the intention is to who have close links to the Royal Marines currently publish the findings of the review before the summer serving in Afghanistan, that that will not happen? recess, but whether there will be the opportunity to debate them in the House is not a matter for me. I Dr Fox: There has been no such discussion in dealing assure my right hon. Friend, however, that we continue with our French counterparts, and neither do I intend to operate on a case-by-case basis in the middle east in that there will be any such discussion. relation to fresh applications for export licences. 1217 Oral Answers4 JULY 2011 Oral Answers 1218

Duncan Hames (Chippenham) (LD): The recent joint and to have some economic capabilities of their own in report by the Committees on Arms Export Controls the future, which events have denied to recent generations recommended that the Government publish a full statement in Afghanistan. on how they apply criterion 8 relating to sustainable economic development when making decisions about Mr Jim Murphy (East Renfrewshire) (Lab): We read arms export licences. Will the Minister give his commitment in the newspapers this week that the Prime Minister that the Department will follow and adopt that plans to announce a further troop withdrawal from recommendation? Afghanistan. The whole country will feel disappointed that our forces have again had to learn of news through Nick Harvey: I must make it clear that the responsibility media leaks. As we head towards the 2014 deadline, can for defence export licences lies with the Department for the Secretary of State repeat his guarantee that decisions Business, Innovation and Skills, which consults the about troop numbers will be based on conditions on the Foreign Office on specific criteria and the Ministry of ground and on best available military advice, not on Defence on other criteria. I assure my hon. Friend that, politics or other arbitrary factors? in so far as is relevant to the issues on which we are asked to advise, the Ministry of Defence agrees entirely Dr Fox: Given the last Government’s record, for the with the points that he makes, but such matters are right hon. Gentleman to talk about troop numbers in pre-eminently for the Department for Business, Innovation Afghanistan being leaked to the newspapers is a bit like and Skills. the pot calling the kettle black. We said very clearly that there would be a reduction of 426. Some 200 troops Afghanistan have already been withdrawn, largely because they were involved in logistic tasks above and beyond our core number. Any reduction in the core number, particularly 15. David Rutley (Macclesfield) (Con): What recent in our force in Helmand, will be announced after discussions assessment he has made of the security situation in in the National Security Council between the relevant Afghanistan; and if he will make a statement. [63148] politicians and Departments and the military.

The Secretary of State for Defence (Dr Liam Fox): I Eurofighter Typhoon visited Afghanistan in recent weeks and gained a clear sense of the progress being made. I was also able to thank our armed forces in person and on behalf of the 17. Stephen Metcalfe (South Basildon and East Thurrock) House for their fine efforts. Following that visit, I am in (Con): What recent assessment he has made of the no doubt that the transition of security lead to the export prospects for Eurofighter Typhoon. [63150] Afghans remains achievable by the end of 2014. The Parliamentary Under-Secretary of State for Defence (Peter Luff): Typhoon has already been exported to David Rutley: Given this country’s strong efforts to Saudi Arabia and Austria, where it is in operational create a secure environment in Afghanistan, and our service. It is also competing in a number of other commitment to withdrawing British troops by 2015, important markets. Oman has announced its intention will my right hon. Friend tell the House what progress is to buy Typhoon, and India has selected it for the final being made in building the capability of local Afghan phase of its medium multi-role combat aircraft competition. forces, and in ensuring a clear transition in military command? I expect an increase in interest in Typhoon following its highly successful air defence and ground attack roles in current operations, in which it has consistently Dr Fox: I have had the opportunity over time to see demonstrated exceptional levels of reliability, performance, the Afghan national security forces—both the Afghan accuracy, and overall cost-effectiveness. national army and the police—and as anyone who visits them will recognise, their capability is enormously enhanced. Stephen Metcalfe: SELEX Galileo in Basildon, along Things that may appear small to us, such as literacy with many other businesses throughout the United training, have phenomenally increased their capability. Kingdom, will benefit hugely from increased exports of When I look at the Afghan national training mission, I the Eurofighter Typhoon, and my constituents will also have cause for great hope that we will achieve the levels benefit from improved job opportunities. Will my hon. of security competence required for that transition. Friend update me and the House on the progress of the tender process with India? Graham Jones (Hyndburn) (Lab): Will the Secretary of State give us some idea of the percentage of children Peter Luff: The Indians are sticking to their timetable, who are attending schools in Helmand province as an and we are very optimistic about the prospects for indication of how successful we have been in the operation Typhoon. My hon. Friend is right to stress the importance there? of the contribution of companies such as SELEX Galileo. We already have a highly capable radar on Typhoon Dr Fox: It is difficult to give an accurate figure, but I which matches, or exceeds, many electronically scanned will try to obtain one from the provincial reconstruction radars operating elsewhere, but SELEX Galileo is on team and write to the hon. Gentleman. What is clear is track with Europe’s first and only second-generation that, while we have taken a large amount of military scanned radar, which will make Typhoon a truly equipment and money to Afghanistan, perhaps the outstanding, indeed unmatched, multi-role fast jet and most important thing that we have taken there is hope: a world-beater in the export markets as well. I hope that hope for a generation who may be able to be educated that includes India. 1219 Oral Answers4 JULY 2011 Oral Answers 1220

Fallen Servicemen through the nearby village of Carterton, whose streets are both very narrow for a modern village and have speed bumps, which are not suitable for corteges. This 19. Mark Pawsey (Rugby) (Con): What recent has been decided by Oxfordshire county council in representations he has received on arrangements for consultation with local people, and there is no suggestion members of the public to pay final respects to fallen of its having been done covertly. If I may say so, I think servicemen. [63152] the hon. Gentleman should go to Brize Norton—as I did—and see the alternatives, as he would find that we The Parliamentary Under-Secretary of State for Defence wish to allow the British public the right to show their (Mr Andrew Robathan): Over the last two weeks we respect for these heroes, but we are not necessarily going have received a number of e-mails and letters following to be driven by one person on the radio. a campaign on Facebook about arrangements for members of the public to pay their final respects to fallen servicemen Mr Speaker: I am grateful to the Minister. I call and women. Mr James Gray.

Mark Pawsey: I recently spoke to a lady in my Mr James Gray (North Wiltshire) (Con): There can constituency who is a member of the War Widows be no finer sight than the last four Hercules from RAF Association. She expressed concern about the forthcoming Lyneham flying down the line of the high street of change which would mean repatriation flights arriving Wootton Bassett on Friday afternoon on the way to at RAF Brize Norton. Like many other people, she Brize Norton, but does the Minister agree that it might believed that it was important for the British public to not be possible, nor indeed quite right, to seek to continue to be able to pay their respects to fallen military replicate the Wootton Bassett effect elsewhere, as that personnel. Will the Minister assure us that that will still was a chapter in our history? I am not sure we necessarily be possible under the new arrangements? want to see it repeated elsewhere.

Mr Robathan: I can certainly assure my hon. Friend Mr Robathan: My hon. Friend makes a very good and the House that that is the case. point. The route from Lyneham to Oxford passes straight through the centre of Wootton Bassett, and the route Because of the number of e-mails that we had received, from Brize Norton to Oxford is being drawn so that it I went to Brize Norton on Friday to reassure myself about can go past somewhere where people can pay their the plans that are being made. The RAF is spending respects. As my hon. Friend will know, the facilities at £3.2 million on a new repatriation centre specifically for RAF Lyneham were fairly ad hoc, but we have now the families of the bereaved, who must be the focus of built a repatriation centre which, I have to say, is very our attention. It is an excellent centre, which will give impressive. It will be finished at the end of July, and I them a very good view of what is happening when the think people will come to realise that this is a different aircraft land. There are private chapels of rest where situation, and that the RAF, Oxfordshire county council they can go and be with their loved one’s remains. The and the police are doing the right thing for the bereaved cortege will then head down a very dignified avenue of and the servicemen who have been killed. limes to the nearest gate, which is being refurbished and will be called the Britannia Gate. It is dignified, respectful and solemn. Topical Questions Once the cortege has left Brize Norton, it will be the T1. [63157] Simon Kirby (Brighton, Kemptown) (Con): responsibility of the police and Oxfordshire county council. If he will make a statement on his departmental The county council is building a memorial garden with responsibilities. a great deal of car parking so that people who wish to show their respect—the general public and the Royal The Secretary of State for Defence (Dr Liam Fox): British Legion, which approved the arrangements—will My departmental responsibilities are to ensure that our be able to do so in a dignified and proper place. country is properly defended now and in the future, that our service personnel have the right equipment and Paul Flynn (Newport West) (Lab): The Minister misses training to allow them to succeed in their military tasks, the point. As recently as 12 o’clock today a representative and that we honour our armed forces covenant. of the people of Brize Norton expressed his disappointment and anger, because they wish the very moving scenes Simon Kirby: Has the Secretary of State considered that took place at Wootton Bassett to be replicated at the effects of off-the-shelf procurement on UK jobs, Brize Norton. That cannot happen because the cortege UK tax revenue, and the future capability of UK route is being taken through rural roads and not through manufacturing? the urban area. Should not the people of Brize Norton and the surrounding areas have the right to express the Dr Fox: As has already been said, a lot of what is on grief of the nation, in order that we are all reminded of the international shelves is made in Britain, but the the true cost of war? Ministry of Defence’s primary purpose is to ensure that our armed forces have the right equipment when they Mr Robathan: First, as I have said, the families of the need it at a reasonable cost to the taxpayer. bereaved must be the most important consideration. Oxfordshire county council has carried out a great deal Gemma Doyle (West Dunbartonshire) (Lab/Co-op): of consultation. The hon. Gentleman mentions Brize The creation of the office of the chief coroner would Norton and, as it happens, the route will go straight make a significant difference to the families of fallen through the village of Brize Norton. It will not go service people as they go through the very difficult inquest 1221 Oral Answers4 JULY 2011 Oral Answers 1222 process. The Royal British Legion believes this is a service chiefs it will be up to them to determine, and matter of priority, not of cost. When will the Secretary make it clear to me, that they have proper training of State stop passing the buck to his colleagues in the mechanisms in place to ensure that that position remains. Justice Department and make this one of his priorities? T8. [63164] Thomas Docherty (Dunfermline and West The Parliamentary Under-Secretary of State for Defence Fife) (Lab): Given the widespread opposition in west Fife (Mr Andrew Robathan): As you will understand, to becoming a nuclear submarine graveyard, will the Mr Speaker, this is not a question of passing the buck: Secretary of State confirm that the Ministry of Defence the Ministry of Justice is responsible for the coroners will be using the same principles for identifying the department. This has been the subject of much consultation, long-term waste store as are used by the civil industry? and the MOJ must answer on it. [Interruption.] The Will he specifically confirm that the store has regulatory right hon. Member for East Renfrewshire (Mr Murphy) support, makes financial sense and has community asks what it is doing: it is ensuring that coroners are buy-in? better trained, as training was the problem beforehand. The Parliamentary Under-Secretary of State for Defence T2. [63158] Jason McCartney (Colne Valley) (Con): (Peter Luff): The hon. Gentleman will understand that Does my right hon. Friend the Secretary of State agree two sites have been identified as potential candidates for with me and the British Veterans National Defence submarine dismantling—Devonport royal dockyard and Medal Campaign that the recent MOD medal review Rosyth royal dockyard. I can give him the assurance he was wrong to suggest that there is little appetite or seeks: we will be following a similar approach to that of desire in this country to recognise our brave service the civil nuclear sector and we will take account of a veterans with a UK national defence medal? wide range of factors. I do not have time to enumerate those in this answer, but I would be happy to talk to him Mr Robathan: I would not agree with my hon. Friend in detail later, if that would be of help to him. I can on that. What I would say is that groups such as the particularly reassure him on the subject of consultation, British Veterans National Defence Medal Campaign because we recognise the keen local interest in this are being consulted on the medal review. What that subject and are keen to ensure that local people have the campaign proposes would mean that some 4.5 million opportunity to express their views. We will work with to 5 million people would qualify for a national defence all the local authorities and the devolved Administration medal, and we have to take into account all representations in Scotland before and during public consultation. before determining whether that is the right thing to do. T5. [63161] Neil Carmichael (Stroud) (Con): My T3. [63159] Pamela Nash (Airdrie and Shotts) (Lab): constituency is home to a large number of reserve On 24 June, The Daily Telegraph reported that a armed forces members, who welcome the review of £10 billion black hole in the defence budget will lead to their role. May I ask the Secretary of State whether that cuts having to be increased beyond the current 8%. Can review will recognise their capacity, capabilities and the Secretary of State confirm or deny that report? willingness to integrate with the regular armed forces?

The Secretary of State for Defence (Dr Liam Fox): I The Minister for the Armed Forces (Nick Harvey): I am delighted that the Labour party now studies The entirely agree with my hon. Friend about the excellent Daily Telegraph in great detail, as it may be able to learn work done by our reserve forces. I have been thoroughly something from that side of the press. There is no doubt impressed with the commitment and skill that they have that the size of the budget deficit we inherited—about shown when I have met them, including in Afghanistan. £38 billion of unfunded liability, on the assumption of As he knows, a review is being led by the Vice-Chief of flat real growth between now and 2020—had to be the Defence staff and my hon. Friend the Member for tackled. We have taken a huge amount out of that Canterbury (Mr Brazier), and their report is in the already and we will work, not only through this strategic process of being finalised. I expect them to deliver that defence and security review, but into the next one, to report shortly and it would be inappropriate to comment ensure that as we progress towards the end of the further at this time. decade we eliminate that horrific inheritance from the Labour party. Dan Jarvis (Barnsley Central) (Lab): Will the Secretary of State confirm whether he has any plans to reduce the T4. [63160] Miss Anne McIntosh (Thirsk and Malton) size of the Army post-2015? (Con): Will the Secretary of State give the House an assurance that enough British-trained RAF pilots are operating in Libya, especially at the moment? If there Dr Fox: Nothing has changed in our assumptions are not, will he ensure that even more pilots will be since the strategic defence and security review. trained by RAF Linton-on-Ouse, in my constituency? Will he also assure the House that that base will remain T6. [63162] Stephen Gilbert (St Austell and Newquay) one of the top training bases for the RAF for years to (LD): Like many in the House, I welcome the recent come? removal of arms export licences to Bahrain. However, given the earlier answer by the Minister for the Armed Dr Fox: Not only can I give the assurance that we Forces, may I ask Ministers how many times they have have sufficient British pilots and sufficient British assets raised concerns about arms export licences to Saudi in Libya, but I can tell the House that as we go ahead Arabia with their colleagues in the Department for with the greater devolution of powers to the single Business, Innovation and Skills? 1223 Oral Answers4 JULY 2011 Oral Answers 1224

The Parliamentary Under-Secretary of State for Defence both on the political space and on redevelopment (Mr Gerald Howarth): On Bahrain, I can tell my hon. and reconstruction, rather than on the purely military Friend that a cross-Whitehall review of export licences arguments. to that country was held on 18 February, and licences for equipment that could be used for internal repression T9. [63165] Andrew Selous (South West Bedfordshire) were revoked—to date, 23 single licences have been (Con): What plans do the Government have to mark revoked and 16 open licences have had Bahrain removed the 200th anniversary of the battle of Waterloo, which from them. On Saudi Arabia, I can tell him that, like all ended a quarter of a century of conflict in Europe and other countries, we subject all defence exports to a packed Napoleon off to St Helena? rigorous review against the criteria set by this country and elsewhere. Mr Robathan: My hon. Friend may know that I spent some 15 years in the Coldstream Guards and he will Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC): On know—he has historical knowledge—that the Coldstream 28 April, I received an answer from the Minister to a Guards shut the gates of the chateau, or the farm, of request for a breakdown of outsourced transport costs Hougoumont. Wellington said that the battle would from the Bicester logistics centre. The response was that have been lost had that not happened. Our relationship £4 million had been saved and that the amount spent by with France has changed a little since the Napoleonic Bicester on private couriers between 2008 and 2010 was wars, and this is now an historical matter. I understand zero. In my office, I have copies of literally thousands of that our colleagues in the Department for Culture, transport documents that show that the answer is millions Media and Sport have set up a Waterloo 200 committee of pounds. The answer I was given therefore could not to discuss the commemoration, but it will certainly be be further from the truth. Will the Minister provide commemorated by the Coldstream Guards, among others. urgent clarification on this very important matter? Jim McGovern (Dundee West) (Lab): May I thank Peter Luff: I share the right hon. Gentleman’s concern, the Under-Secretary of State for Defence, the hon. based on what he has told me, and would be delighted Member for Mid Worcestershire (Peter Luff), for agreeing to meet him to discuss the matter in more detail. He has to meet me yesterday to discuss the potential implications brought a very serious matter to the attention of the of the SDSR on organisations that depend almost House and I look forward to meeting him to discuss it entirely on Ministry of Defence contracts for their further. survival? I was perhaps a tad parochial at that meeting in stating the case for the Remploy factory in my constituency. Is the Minister in a position to give any T7. [63163] Graham Evans (Weaver Vale) (Con): assurances and an update to the people employed at Following recent debates about the restructuring of Remploy in Dundee West and to me? NATO, will my right hon. Friend confirm that the future of Northwood as a key NATO command headquarters is secure? Peter Luff: I am afraid I cannot go beyond what I said at the meeting with the hon. Gentleman, which I greatly enjoyed. I look to him to carry on making the Dr Fox: In the recent discussions at NATO ministerial, case for an important facility and factory that does the maritime headquarters for NATO were going to be excellent work for the people it serves and who work in Lisbon, Naples or Northwood. First, Northwood is for it. an effective and efficient place from which to carry out that command and, secondly, the UK Government do T10. [63166] Mark Pawsey (Rugby) (Con): Like the not believe that it is acceptable to see another northern hon. Member for Chesterfield (Toby Perkins), I had the European command move to the south of Europe at a honour of joining Armed Forces day celebrations and, time when many northern European forces are carrying in my case, they were at Bulkington in my constituency. more than their fair share of operations in Libya or Does my right hon. Friend agree that this annual event Afghanistan. not only raises public awareness of the contribution made to our country by those who serve and have Toby Perkins (Chesterfield) (Lab): I was pleased to be served in the armed forces but gives the opportunity for at Staveley Armed Forces day on Saturday, where I met the entire country to show its support for all the men a soldier who had recently returned from his third tour who make up that community? [Interruption.] And of duty in Afghanistan. He expressed his fear that women. political expediency would outweigh the military concerns about troop withdrawals from Afghanistan and, specifically, Dr Fox: Men and women. I completely agree with my about the impact that was having on their efforts to hon. Friend, who makes a valid point that will resonate train up Afghan nationals. His fear was that those throughout the country. Armed Forces day gives us all a nationals would return to the Taliban if they felt that chance to be aware of what the armed forces do and Britain had withdrawn from Afghanistan prematurely. gives the public the chance to thank them. I visited the Does the Minister share that fear? Armed Forces day celebrations in Edinburgh, which were magnificent. The city put on a great display and I Dr Fox: I think the key element is the confidence we look forward to seeing what Plymouth is capable of can give the people of Afghanistan that the international doing next year. community’s relationship with that country will not end when our combat forces leave at the end of 2014. As we Jim Sheridan (Paisley and Renfrewshire North) (Lab): have trained up the Afghan national security force to The Secretary of State may be aware of the excellent have greater capability, there is now greater emphasis research carried out by Professor Al Rowland into the 1225 Oral Answers4 JULY 2011 Oral Answers 1226 exposure of our atomic test veterans. Since conducting RAF Leuchars in my constituency continues to fulfil its that research, Professor Rowland has been honoured responsibilities for the air defence of the northern half by the Queen. The UK Government are now the only of the United Kingdom with the professionalism and Government refusing to accept their responsibilities for commitment that we have come to expect. Has he assessed Christmas island, so will the Secretary of State now the extent of the effect on the ability of Leuchars—or, agreetodoso? indeed, of any other air base in Scotland—to operate if Scotland was not under the umbrella of NATO? Mr Robathan: I do not entirely accept what the hon. Gentleman says, and I happen to know that neither do Dr Fox: I had a chance to visit Leuchars recently to those on his party’s Front Bench. What happens in New thank those who carry out those duties on our behalf. Zealand is, of course, up to the people of New Zealand. My right hon. and learned Friend raises an important However, I note from the article in The Times today, point. Those in the Scottish National party in the which he might have read, that Neil Sampson of Rosenblatt Scottish Government who pretend that they can enjoy says that he wants a compensation fund worth £30 million both the security of the Crown forces and the luxury of to be set up. It should be asked of Rosenblatt—perhaps talking about leaving NATO leave a lot to be desired the hon. Gentleman himself might wish to ask this intellectually. question—how much its fees are, because I understand that they would take up more than half that compensation fund, and would—I think everybody in the House Mr Bob Ainsworth (Coventry North East) (Lab): would agree—therefore probably be a little large. What is the status of the Chinook helicopter order?

Sir Menzies Campbell (North East Fife) (LD): My Peter Luff: Nothing has changed since the strategic right hon. Friend will not be surprised to learn that defence and security review. 1227 4 JULY 2011 Business of the House 1228

Business of the House Mr Speaker: Order. May I just remind the House that this is a narrow business statement and that questions should relate exclusively to announced changes to the 3.31 pm business on Thursday? The wider, routine business statement The Leader of the House of Commons (Sir George will, as the Leader of the House has made clear, be on Young): With permission, Mr Speaker, I should like to Thursday. make a short business statement. The business for tomorrow and Wednesday remains unchanged to that announced Mr James Gray (North Wiltshire) (Con): The very previously. However, the remaining business will now important business that the Leader of the House has be: announced will mean that an hour and a half debate on THURSDAY 7JULY—Proceedings on the Supply and the use of electronic devices in the Chamber will not Appropriation (Main Estimates) Bill, followed by now occur. Will the Leader of the House tell us when he consideration of a business motion, followed by all intends to allow that debate to occur? stages of the Police (Detention and Bail) Bill. I can advise the House that my right hon. Friend the Sir George Young: First, may I say that in replying to Home Secretary will make the final draft of the Bill the shadow Leader of the House I should have said the available to hon. Members in advance of its formal Greater Manchester police, not the greater Metropolitan introduction and publication tomorrow. I have been police? advised by the Home Office that copies of the final I am sorry that the debate on Thursday will not now draft will be available in the Vote Office by 6 pm this take place. I will make my normal business statement evening. I will of course make my usual business statement on Thursday outlining the business for forthcoming on Thursday. weeks.

Hilary Benn (Leeds Central) (Lab): I am grateful to Jeremy Corbyn (Islington North) (Lab): In his business the Leader of the House for his statement and for statement on Thursday, could the Leader of the House advance sight of it, which responds to the point that I tell us what the Home Secretary seems not to be capable raised with him last Thursday. It has taken Home Office of telling us about the case of Sheikh Raed Salah, Ministers far too long—six weeks now—to respond to a including when she signed an order that he was to be court judgment that was originally given on 19 May. deported from this country, why he has been held for The result has been a complete mess, with doubt about some days in Her Majesty’s Prison Bedford, why he is the enforcement of bail conditions—for instance, in being denied legal access until tomorrow and why, and domestic violence cases—and the Leader of the House under what pressure, she decided to make what I believe having to make this statement, completely changing the to be a retrospective decision? business for Thursday. Can he give us any news on the application to stay the judgment pending the appeal hearing, which I understand is scheduled for 25 July, Mr Speaker: Order. I think this is a question for because it might have a bearing on Thursday’s business? Thursday, unless the Leader of the House has any plans to indicate that the matters will be debated on Thursday. As I indicated last week, we are very willing to assist in getting the legislation on the statute book as quickly as possible, because we all want to ensure that the law is Sir George Young: I understand that the matter is restored to what everyone thought it was before the before the courts. judgment. However, let me ask the Leader of the House two questions. First, can he confirm that the Home Mr Peter Bone (Wellingborough) (Con): I assume Secretary will be leading the debate? We see from his that the Leader of the House is not going to move item statement that all stages will be taken in one day, No. 2 on the Order Paper tonight, but has he considered including the Committee stage on the Floor of the whether it could be moved and tacked on to whatever House. Secondly, when does he anticipate the Bill being time we finish our debate on the emergency Bill? considered in the other place? Sir George Young: My hon. Friend is quite right that Sir George Young: I am grateful to the right hon. there is now no need to move the motion that protects Gentleman for his renewed offer of support for getting the Backbench Business Committee debate for 90 minutes. the legislation on the statute book. On his first point, We do not propose to add that debate to the end of the timeline was dealt with on several occasions on business on Thursday; it will have to be dealt with on Thursday by the Minister for Policing and Criminal another occasion. Justice. On the application to the Supreme Court, the greater Mr John Spellar (Warley) (Lab): Obviously, no leader Metropolitan police are asking for a stay of execution. of the House likes having to change business, although It would not resolve the main issue, and it would not that is often necessary under the force of circumstances. happen until later this month, by which time the House We fully understand why that is being done in this case will have risen. The Home Secretary will indeed be and the Opposition have indicated that they support taking Second Reading. I anticipate that the Bill will that. However, I hope that the Leader of the House has then go to the other place on Thursday evening, and I satisfied himself regarding this question: did officials, hope that it will be dealt with early next week. when they knew about this decision, not tell the Minister, or is it the case that the Minister was told and did not Several hon. Members rose— act on it? What is the answer? 1229 Business of the House4 JULY 2011 Business of the House 1230

Sir George Young: If the right hon. Gentleman looks Mr Dave Watts (St Helens North) (Lab): Can the at Hansard for last Thursday, he will see the timeline right hon. Gentleman explain why it has taken five outlined by the Minister for Policing and Criminal weeks to deal with this matter? Is an investigation going Justice. Ministers were told on 24 June. on to find out why this important legislation has taken five weeks, and is it true that the Government are only Clive Efford (Eltham) (Lab): I have the Hansard for acting on the back of the report and legal advice of the last Thursday, and the Minister made it quite clear that Association of Chief Police Officers? the original decision was on 5 April and that a judicial review gave oral confirmation of that decision on 19 May. Sir George Young: Again, this is rehearsing to some Can the Leader of the House say whether he was extent the exchange we had on Thursday, and an exchange alerted, after 19 May, to the possibility of the need to that can take place again this Thursday.The announcement legislate on the Floor of the House to reverse that that I have just made relates to the business we are decision? dealing with on Thursday; the substantive matters will be dealt with on that day. Sir George Young: This is rehearsing to some extent the arguments that were dealt with on Thursday. As my Chris Leslie (Nottingham East) (Lab/Co-op): Although right hon. Friend the Minister said on Thursday, we it will be good to have time to debate the Bill—that is all had to wait for the written judgment to follow the oral very well—can the Leader of the House allow us time one. for a separate debate about the general shambles in the Home Office and which Ministers and Law Officers Mr Philip Hollobone (Kettering) (Con): When will were clearly asleep on the job? the House consider Lords amendments to the Fixed-term Parliaments Bill? Given that the Leader of the House Sir George Young: If the hon. Gentleman comes has effectively included an extra day of legislation into along on Thursday, he can put in a bid for such a Parliament’s proceedings, does he anticipate that the debate. I am not sure whether he was here last Thursday, House will run for longer than intended in the current but there was a protracted exchange involving the Minister Session? for Policing and Criminal Justice on precisely the issues that the hon. Gentleman and his colleagues continue to Sir George Young: That is not the Government’s raise. intention. We plan to adjourn on the day that has already been announced. Keith Vaz (Leicester East) (Lab): Two promises were made last Thursday. The first was on the request from Mr Gerry Sutcliffe (Bradford South) (Lab): We had a the police that they should have the best legal advice statement last Thursday. Why are waiting until this from the best legal brains. I am sure that refers to the Thursday when we could have debated the exceptional Solicitor-General. The second promise was that the Bill Bill today? There is an increased cost to the police in would be discussed with the Select Committee on Home terms of their not understanding what the position is Affairs and with the shadow Home Secretary before the and their having to do bail at the doorstep level. Could final draft appeared. As the Home Secretary will be we not have had the opportunity at least to see the draft appearing before us tomorrow morning, could she please Bill given that the Minister had the statement ready on bring her latest version to the meeting? Thursday? Sir George Young: Indeed, the Home Secretary will Sir George Young: The Bill had to be drafted before it be bringing a copy of the Bill with her, and I hope that could be presented to the House. We have worked as the right hon. Gentleman will also have his copy—available quickly as we could and the Bill will be available to from 6 o’clock this evening. Members by six o’clock this evening—in good time for discussion on Thursday. Toby Perkins (Chesterfield) (Lab): With regard to the timing of the debate on Thursday, is it not true that Diana Johnson (Kingston upon Hull North) (Lab): I parliamentary business is being lost and legislation is do not understand why we cannot have the Bill earlier being made in an emergency because the Home Office in the week. I am particularly concerned about the was not on top of its brief in the first place? Is any people who are suspected of domestic violence and investigation going on to make sure that next time have conditions on their bail, which I understand will round we get legislation to protect the police earlier? not be enforced. That is clearly a major problem and I wonder why it is taking so long—until Thursday—to Sir George Young: Again, these issues were raised last bring forward the Bill. Thursday, and the hon. Gentleman will have an opportunity this Thursday to discuss the background to the Bill. My Sir George Young: The announcement was made on responsibility is simply for announcing the changed Thursday and the Bill will be available later today. I business on Thursday, and in response to requests from think that is moving at good speed. On the specific issue some of the hon. Gentleman’s colleagues we are dealing the hon. Lady raised, the police service is dealing with with this as quickly as we possibly can. the implications of the ruling, including in the circumstances that she outlines, and the Home Secretary has been told Mark Tami (Alyn and Deeside) (Lab): Why did it that the police will be able to manage operationally in take the Home Secretary so long to tell the Leader of the meantime. the House that there was a need for this change? 1231 Business of the House 4 JULY 2011 1232

Sir George Young: The moment the statement was Reform of Social Care made last Thursday, and it was clear that legislation was needed, we decided to change the business of the House, and a statement was made at the earliest opportunity. 3.43 pm Vernon Coaker (Gedling) (Lab): What a fiasco! Why The Secretary of State for Health (Mr Andrew Lansley): does the House have to wait until Thursday before it With permission, I wish to make a statement on the debates the emergency legislation when the Home Office reform of social care. has known about this for six weeks? Will the Home The coalition Government have from the outset Secretary be able to tell us what the current situation is recognised that reform of the care and support system with respect to those on police bail? How many people is needed to provide people with more choice and are being let out who should not be? How many people control and to reduce the insecurity faced by individuals, do not know what is happening? Should there not be carers and their families. By 2026, the number of people an emergency statement now, rather than waiting until over 85 years old is projected to double. Age is the next Thursday? principal determinant of need for health and for care services. It is further estimated that in 20 years’ time, Sir George Young: Yes to all the questions except the 1.7 million more people will have a potential care need last one, which is no. than do today. People often do not think about how they might meet the costs of care in later life. They assume that social care will be provided free for all at the point of need, but since the establishment of the welfare state that has never been the case. Currently, people with more than £23,250 in assets, often including their home, face meeting the whole cost of care themselves. The cost of care can vary considerably and it is hard for people to predict what costs they may face. The average 65-year-old today will face lifetime care costs of £35,000, but as the Commission on Funding of Care and Support notes, costs are widely distributed: one in four will have no care costs, but one in four will face care costs of more than £50,000 and for one in 10 it will be more than £100,000. The lack of understanding of how the system works and uncertainty about costs means that it is difficult for people to prepare to meet potential care costs, and there are currently few financial products available to help them. This means that paying for care can come as a shock to many families and have a severe impact on their financial security. Change is essential. That is why we took immediate action last July by establishing the Commission on Funding of Care and Support, which was tasked with making recommendations on how to achieve an affordable and sustainable funding system for care and support for all adults in England. In response to its initial advice, we allocated an additional £2 billion a year by 2014-15 in the spending review to support the delivery of social care as a bridge to reform. This represents a total of £7.2 billion of extra support for social care over the next four years, including an unprecedented transfer of funds from the NHS to support social care services that will also benefit health. Since then we have taken forward wider reform. Last November we published our vision for adult social care, setting out our commitment to a more responsive and personalised care and support system that empowers individuals and communities, including the objective that all those who wish it should have access to a personal social care budget by 2013. In May, after three years of work, the Law Commission published its report on how to deliver a modernised statute for adult social care. Making sense of the current confused tangle of legislation to deliver a social care statute will allow individuals, carers, families and local authorities to understand more clearly when care and support will be provided. 1233 Reform of Social Care4 JULY 2011 Reform of Social Care 1234

Andrew Dilnot’s report comes at the same time as the to consider the recommendations carefully against other final report from the palliative care funding review, funding priorities and calls on our constrained resources. which I received last week. Tom Hughes-Hallett and The commission’s recommendations present a range of Sir Alan Craft have made an excellent start in looking at options, including on the level of a cap and the contribution this complex and challenging issue. We want to see that people make to living costs in residential care, integrated, responsive and high-quality health and care which could help us to manage the system and its costs. services for those at the end of life. We will now consider We intend to engage with stakeholders on those issues, the review team’s proposals in detail before consulting including on the trade-offs involved. stakeholders on the way forward later this summer. We Reform in this area will have to meet a number of will also consider how best to undertake substantial tests, including whether the proposals would promote piloting, as recommended in the report, in order to closer integration of health and social care; whether the gather information on how best to deliver palliative care proposals would promote increased personalisation, choice services. and quality; whether the proposals would support greater We are also responding to events at Southern Cross, prevention and early intervention; whether a viable which have caused concern to residents in Southern insurance market and a more diverse and responsive Cross care homes and their families. We welcome the care market would be established as a result of the fact that Southern Cross, the landlords and the lenders proposals; what is the level of consensus that additional are working hard to come up with a plan to stabilise the resources should be targeted on a capped costs scheme ownership and operation of the care homes. We have for social care; and what a fair and appropriate method also made it clear that we will take action to ensure of financing the additional costs would be. proper oversight of the market in social care. That is The Government have set out a broad agenda for why we are seeking powers through the Health and reform in social care. We want to see care that is Social Care Bill to extend to social care the financial personalised; that offers people choice in how their care regulatory regime that we are putting in place in the needs are met; that supports carers; that is supported by NHS, if we decide that that is needed as part of wider a diverse and flourishing market of providers; that has a reform. skilled work force who provide care and support with A central component of those wider reforms will be compassion and imagination; and that offers people the the long-term funding of care and support. Over the assurances they expect of high-quality care and protection past 12 months Andrew Dilnot, who chairs the Commission against poor standards and abuse. Andrew Dilnot’s on Funding of Care and Support, together with the report was never intended to address all those issues, noble Lord Warner and Dame Jo Williams, has engaged but it forms a vital part of that wider agenda. extensively with many different stakeholders. They have To take the matter forward, we will work with brought fresh insight and impetus to this most challenging stakeholders in the autumn, using Andrew Dilnot’s area of public policy. We welcome the commission’s report as the basis for engagement and as a key part of excellent work and its final report. I would like to thank the broader picture. That engagement will look at the Andrew Dilnot, Lord Warner and Jo Williams for their fundamental issues for reform in social care, such as work, which has made an immensely valuable contribution improving quality, developing and assuring the care to meeting the long-term challenge of an ageing population. market, integration with the NHS and wider services, The report argues that people are unable to protect and personalisation. We want to hear stakeholders’ themselves against the risk of high care costs, leaving views on the priorities for action from the commission’s them fearful and uncertain about the future. The report and on how we should assess the proposals, commission’s central proposal, therefore, is a cap on the including in relation to other priorities for improvement care costs that people face over their lifetime of between in the system. As the right hon. Member for Wentworth £25,000 and £50,000—it recommends £35,000. Under and Dearne (John Healey) and I have discussed, the the commission’s proposals, people who cannot afford Government will engage directly with the official Opposition to make their personal contribution would continue to to seek consensus on the future of long-term care receive means-tested support, but it proposes that the funding. threshold for receiving state help for residential care We will set out our response to the Law Commission costs would rise from £23,250 to £100,000. People would and the Dilnot commission in the spring. There will be make some contribution to their general living costs in full proposals for the reform of adult social care in a residential care, but the commission suggests that this White Paper and a progress report on funding reform. should be limited to between £7,000 and £10,000. It remains our intention to legislate to this effect at the The commission also proposes standardised, national earliest opportunity. The care of the elderly and of eligibility for care, which would increase consistency vulnerable adults is a key priority for reform under this across the country; universal access to a deferred payments Government, and I commend this statement to the scheme for means-tested contributions; improvements House. in information and advice; improved assessments for carers and better alignment between social care and the John Healey (Wentworth and Dearne) (Lab): I thank wider care and support system; and considering changing the Health Secretary for the copy of his statement, and the means test in domiciliary care to include housing for making it to the House himself. assets. The commission makes recommendations about We welcomed the Hughes-Hallett report last week how as a society we can organise and fund social care. and we welcome the Dilnot report on social care today. We will consider the recommendations as a priority. The Dilnot report sets out important recommendations The commission recognises that implementing its on capping the catastrophic costs of care; lifting the reforms would have significant costs. In the current wealth threshold for state help; immediate free support public spending environment, the Government will have for children with care needs on becoming adults; universal 1235 Reform of Social Care4 JULY 2011 Reform of Social Care 1236

[John Healey] The Secretary of State said that he would engage directly with me. I thank him, but this is a big challenge disability benefits continuing as now; a standard national not just for him but for the Chancellor and the Prime needs test; and better information and advice, led by Minister. Will the Government accept that cross-party local councils. talks are required across Government? This is a once-in- The important elements in the Dilnot report are a-generation chance, and the House and the public will similar to the plans that we set out in government in the need to hear from the Prime Minister himself to believe care White Paper in March last year. Our concern was that his Government are determined, as we are, to build and is to protect the one in 10 people who have to pay a better, fairer and lasting system of care in our country. more than £100,000 for the cost of their care in older age; our concern was and is to protect hard-working Mr Lansley: I am grateful to the right hon. Gentleman people on modest incomes, who are more likely to care for the welcome that he gives to the report by Andrew for their relatives and a lot less likely to get any help in Dilnot and his colleagues, and indeed to the report that doing so; and our concern was and is to protect people Tom Hughes-Hallett and Alan Craft produced on palliative from the lottery of where they live, rather than what care. They are both immensely valuable. they need, determining their assessment for care and the level of support. The right hon. Gentleman rightly says that it is important for us to move beyond many of the suggestions It should be a cause for celebration and pride that that have been made in the past. One of the essential one in five of us in this country who are alive today will purposes of the Dilnot commission was to seek something live to 100, and that our children are likely to spend a that was affordable and sustainable, that met tests of third of their lives in retirement. Instead, too many of choice, fairness, value for money and ease of understanding, us approach our older age in fear—fear that we will and that would be sustainable for the longer term. need care that will not be there; fear that our savings Dilnot has responded immensely well to the issues that will be wiped out by the open-ended costs of care; fear we put to him, but that is part of a broader process of that we cannot protect our families from that risk; and reform. In that sense we have not waited for Dilnot, fear of becoming a burden or being left alone. because we have made progress on the wider aspects of Today’s report from Andrew Dilnot is a starting reform. Now we have to ensure that we bring them point, but it is what the Government do with it now together in a way that is coherent and works to deliver that counts. My right hon. Friend the Leader of the long-term, sustainable reform across the whole social Opposition has made a big offer to the Prime Minister care sphere. to put politics aside and work to see a better, fairer and lasting system of support for our older and disabled The right hon. Gentleman rightly points to the fact people in England. Labour is willing to talk to and that we inherited a fragile system in which there had work with the Government and all other parties to do already been a substantial tightening of eligibility and so, because we know that any new system of care must loss of care and support, with increasing levels of unmet give all of us long-term confidence about what will be need. That was precisely why, in an interim report last on offer for us and our families as we plan and prepare year, Andrew Dilnot and his colleagues asked us to for older age. make additional resources available in the spending review. I set out in my statement precisely how we have That requires the Prime Minister to give the lead, done so. because discussing and agreeing an affordable, sustainable system and how we pay for it involves important parts The concerns in relation to Southern Cross are particular of Government beyond the Health Secretary. It requires to that company, and the Minister of State, my hon. the Prime Minister to give a guarantee that the Government Friend the Member for Sutton and Cheam (Paul Burstow), will not kick Dilnot’s recommendations into the long has made clear to the House how we are interacting grass, because as Dilnot says, the system needs “urgent with those who are involved with the company. We are and lasting reform”. If the Government are serious, we making it very clear to the public—I reiterate it today—that are serious; and if they are serious, we need to hear we are prepared to act to secure the interests of individuals more. Dilnot recommends a White Paper by December if there were any threat to their position in care homes. this year, so why are the Government already saying We are working with the Association of Directors of that it will be spring before publication? Adult Social Services and local authorities to ensure that those contingencies are in place. What I said today Any solution is a solution only if it is available and in the statement, and which people have not previously affordable to everyone, so what assurance can the recognised, is that as early as last year we set out in the Government give that the voluntary insurance protection Health and Social Care Bill that we were prepared for will be an option for all? Dilnot states that the current regulatory powers to be available to ensure the future system is viability of social care providers, as we intend to do in “under extreme strain, and people are experiencing tightening relation to health care providers. eligibility and reduced care packages.” Let me may make one final point. I believe that my Do the Government accept his conclusion that additional statement makes it absolutely clear that we will engage public funding for the means-tested system is urgently on the basis of the Commission on Funding of Care required? and Support, and that we will do so on a timetable that The corporate crisis at Southern Cross is causing will work and that gives stakeholders and the public, extreme anxiety for many people living in its homes. Do and indeed the Government and the Opposition, an the Government accept that there is a case for regulating opportunity to come forward with a consensus. I discussed business standards as well as care standards, to give that timetable with Andrew Dilnot, and he is clear that people greater confidence in their care? he supports it. It will lead to a White Paper in the spring 1237 Reform of Social Care4 JULY 2011 Reform of Social Care 1238 and an associated progress report on funding reform. I Mr David Blunkett (Sheffield, Brightside and am clear that that assures stakeholders that we will take Hillsborough) (Lab): As a vice-president of the Alzheimer’s this forward as a priority. Society, and like many hon. Members, I am aware that it is dementia awareness week. The most enormous resource is needed to help both individuals and their Sarah Newton (Truro and Falmouth) (Con): I very carers, particularly with residential support. Is not my much welcome the report and the Secretary of State’s hon. Friend the Member for Sheffield, Heeley (Meg statement. It was the previous Government who kicked Munn) entirely right to draw attention to the fact that the fixing of our broken care system into the political even within Andrew Dilnot’s acknowledgement of the long grass. Will my right hon. Friend reassure me that perverse incentives, there is still an emphasis on the care we will work with all parties in both Houses to find a market and the drive to encourage people to take up, or lasting solution? to consider the option of, residential care? Do we not need to put the glue back by supporting families and Mr Lansley: Yes, I agree with my hon. Friend. That is neighbourliness, so that we can keep people independent indeed what we will set out to do. There have been many in their own homes as long as is humanly possible? false starts, and not just under the previous Government. It is important for us to make progress, and for us to do Mr Lansley: I understand the point that the right so on a basis that is sustainable for the longer term. hon. Gentleman makes and in the past some of the criticisms of previous proposals have been made because Meg Munn (Sheffield, Heeley) (Lab/Co-op): The they would have led to a situation in which informal care Secretary of State will be aware that all sorts of new and and family care would not have been properly supported— innovative ways of caring for elderly and disabled people indeed, there would have been perverse incentives for are developing. The terms “domiciliary care” and people not to have family carers. We need to support “residential care” will become obsolete as services are family carers rather than bypass them. provided in different ways. Will he ensure that whatever I am glad that the right hon. Gentleman raises the funding mechanism is being developed does not limit issue of dementia. It is tremendously important that we the type of services that can be provided, because understand it is one of the principal reasons why we providing for elderly people to be cared for in their own have such a rising burden of disability and requirement homes and in settings where they can live in a more for care and support. It is why we are looking to the normal way will be enormously important in future? longer term, not least to improve research into dementia. I am grateful to the Minister of State, my hon. Friend the Member for Sutton and Cheam, who has chaired Mr Lansley: The hon. Lady very well illustrates one the work on research into dementia, and he was able to reason why Andrew Dilnot’s commission is, among its announce substantial additional funding to support recommendations, looking to eliminate discrimination dementia research just the week before last. between residential and domiciliary care services. We should not have a system that tends to provide perverse incentives to go into residential care, or indeed one that Oliver Colvile (Plymouth, Sutton and Devonport) prevents that from happening when it is the right thing. (Con): I declare an interest as I have an elderly step-mother However, part of the reason why the Dilnot commission who is in a home and this will be very important news should be seen in its wider context is that we are looking for her family and my family. Have there been discussions towards innovative and more effective means of supporting with the Treasury, and does it recognise that this is one people’s independence at home. The Department is now of the key issues? How far have those discussions reached, looking towards the evaluation of the telehealth whole or if they have not started, when will they do so? system demonstrator pilots, the world’s largest randomised controlled trial of telehealth, which should come in a Mr Lansley: My hon. Friend will be pleased to know matter of weeks. that the statement I have made is the product of collective discussion, which of course fully involved the Treasury. John Pugh (Southport) (LD): Will the Secretary of State acknowledge that it will be easier to get agreement Mr Dennis Skinner (Bolsover) (Lab): Does the Secretary on the principles underlying the proposals than on the of State agree that it would be a big mistake to miss this mathematics and the cost? Does he agree that only a opportunity for root-and-branch change of the present renewed NHS focus on the chronic diseases of old age system? Would it not be handy if local authorities will ultimately make the latter bearable? played a bigger role than the billionaires who run Southern Cross, Winterbourne and the rest? Would it Mr Lansley: My hon. Friend is absolutely right. not also be nice for him to acknowledge that when he Although we are looking to ensure that we have a blurted out about the death tax he got it all wrong? sustainable system of social care and support both for social care and the NHS, the linked priority of our Mr Lansley: On the hon. Gentleman’s point about Department and our Government is to improve and local government, he should remember that the increase the effectiveness of our public health services. overwhelming majority of the residents in Southern That is why I was this morning with the Faculty of Cross care homes are funded by local authorities, and Public Health to discuss precisely how we can improve that is precisely why we are working with local authorities health planning at local level, not least with local to ensure that those residents’ interests will be protected. government, to try to reduce the prospective burden of I recognise the problems that we have seen with Southern disease in future. Cross, although I do not know of any other companies 1239 Reform of Social Care4 JULY 2011 Reform of Social Care 1240

[Mr Lansley] Secretary of State act now to ensure that in the meantime the elderly and the disabled get the support that they that are in a similar position. None the less, it is one of deserve and which any civilised society should provide? the reasons why we seek the powers in the Health and Social Care Bill to regulate social care provision in the Mr Lansley: The hon. Gentleman should be aware same way as health care provision. that the maximum reduction in local authorities’ spending power this year compared with last year is 8.8%. We Mrs Anne Main (St Albans) (Con): If we are to see removed the ring fence from Department of Health elderly and disabled people needing more carers, my social care grants but we did not reduce the scale of right hon. Friend will need to work with the Secretary those grants. In addition, he must remember that, as is of State for Education to enhance the status of those not always recognised, the NHS is making specific who work in the care industry, because we will need far provision to support social care. This financial year, more people willing to work in it and with the skills, £150 million will go to support reablement, and £648 million qualifications and commitment needed to give the enhanced will be transferred, as I said, to support social care, care that people would like to receive. which will also have health benefits. That will be spending power in the hands of local authorities to support adult Mr Lansley: I am grateful to my hon. Friend. During social care. the engagement that we are undertaking, one of the areas that we should certainly pursue is the work force Margot James (Stourbridge) (Con): I welcome the development strategy in relation to care and support—and Dilnot proposals, but does my right hon. Friend agree we will do that. that he should resist the demands from the shadow Health Secretary to rush into a White Paper this side of Mr Ronnie Campbell (Blyth Valley) (Lab): Can the Christmas? It is more important to get it right, and Secretary of State tell us why one part of the UK gets there may well be ways to improve on the Dilnot proposals, care free and the other has to pay? Is it because the particularly with regard to the cap and by making other part—Scotland—pays more taxes? provision more affordable and fairer. Mr Lansley: The difference in approach is the result of devolution. Mr Lansley: My hon. Friend makes a fair point. It was clear that had we sought to publish a White Paper before Christmas, the net effect would have been that we Oliver Heald (North East Hertfordshire) (Con): I did not give the public, stakeholders or the official welcome the fact that the Secretary of State has gone Opposition the time needed to discuss the issue and to wider than the Dilnot report today. It was at least two do the job properly . years ago that the Commission for Social Care Inspection, the regulator, called for wider powers to deal with financial regulation, and it is very welcome that that is Barbara Keeley (Worsley and Eccles South) (Lab): It to happen. Does my right hon. Friend agree that the is clear that there are two issues: not just the future level at which the cap is set under the Dilnot regime will funding of social care but the current funding—the be important in deciding whether an insurance market crisis referred to by my hon. Friend the Member for can develop? If it is set too low, the risk that is being Birmingham, Erdington (Jack Dromey). Only 15% of shared will not be great enough, and if it is set too high, councils are now meeting moderate need, but that figure it will be too expensive. used to be 50%. The Secretary of State cannot say that there is no crisis. It seems to me that building a future Mr Lansley: I am grateful to my hon. Friend. That is funding solution rests on not letting current provision precisely why we drafted the Health and Social Care deteriorate much further—but it is deteriorating rapidly. Bill in the way we did. I hope that people will bear that What, then, will Ministers do beyond the excellent in mind when debating the need for, and appropriateness cross-party work that probably will go forward to do of, this further regulatory measure. He made a perfectly something about the resources that are leaking away valid point, and it is one reason we need to ensure and the current crisis in provision? engagement. It is not only a matter of whether the insurance and financial services industry would respond: Mr Lansley: I do not believe I did say that there was along with stakeholders and the public, we need to no crisis. The hon. Lady and the House must recognise, understand what the public’s attitude would be were however, that last year the Dilnot commission, in an they to have greater clarity about potential care costs interim report, sought additional support specifically and if they were willing to engage with financial services for social care and that we provided it through the local products in meeting those care costs. If they were, government grant and a transfer of resources from the significant benefits would be derived, not least through NHS. She says that few authorities now provide social bringing additional resources to bear and through creating care for those with moderate needs, but that has been organisations with a direct incentive to undertake more the product of years of change—it has been happening prevention. for many years. That creates a risk, but we are addressing that risk through the transfer of NHS resources and by Jack Dromey (Birmingham, Erdington) (Lab): Dilnot helping people with lower levels of need through home offers a new dawn but not for three years, and in the adaptations, community equipment and reablement if meantime the fabric of social care is coming apart at the they leave hospital, in order to make certain that we seams because the Government have imposed a 28% cut avoid the risk that we are running: of large numbers of on local government, leading to such councils as people with moderate need falling rapidly into severe Birmingham cutting care all over England. Will the need. 1241 Reform of Social Care4 JULY 2011 Reform of Social Care 1242

Dr Sarah Wollaston (Totnes) (Con): I understand the at the end of their lives. This is a real opportunity that need for the timetable to allow for adequate consultation, has been fashioned by Tom Hughes-Hallett and Alan but Andrew Dilnot’s excellent report draws attention to Craft’s report. several areas including a lack of transparency, a lack of information available to families making decisions about Alison McGovern (Wirral South) (Lab): Funding for care homes and, in particular, a lack of portability, care is clearly a hugely important issue, but so is the which results in many patients being trapped and unable quality of the care that older people receive. The to move closer to loved ones. Does the Secretary of parliamentary ombudsman and even the Financial Times State feel that he could expedite any of the report’s have reported the need for greater respect and dignity recommendations to allow such proposals to receive for those receiving care. When will the Secretary of more detailed consideration? State return to the House and inform us in detail of the standards of care that older people can expect? Mr Lansley: I entirely understand my hon. Friend’s point. In the course of the engagement during the latter Mr Lansley: The hon. Lady will know that we are part of this year, some of those issues will certainly continuously seeking to improve the standards of care come to the fore. My colleagues and I felt that it was that older people receive, and, in so doing, we sometimes better for us not to cherry-pick Andrew Dilnot’s report have to tackle what are clearly serious abuses. In the now, but rather for us to give people an opportunity to wake of the Winterbourne View events, for example, we comment on the recommendations in full. That will, will bring forward a report to Parliament on standards however, take place over the space of weeks rather than and the means by which they are to be met. With regard many months. to hospital care, it was I who asked the Care Quality Commission to undertake specific unannounced nurse-led inspections to look at dignity and nutrition. We will Emma Reynolds (Wolverhampton North East) (Lab): work continuously to ensure that we deliver the standards I should remind Government Members that this issue of care that people have a right to expect. has already been delayed because the Conservatives broke ranks before the election in order to score political Nick de Bois (Enfield North) (Con): My right hon. points. However, there is now cross-party support for Friend might be aware that more than 100,000 people a the recommendations, so why has the Secretary of State year are not receiving the palliative care that they need. let the timetable slip from the autumn to next spring? Can he assure the House that that will be a key priority, Can he reassure the House and the country that there following the issue of this report? will be no further slippage in the timetable? Mr Lansley: My hon. Friend is right. I very much Mr Lansley: I am afraid that I do not accept the hon. welcomed and encouraged the dialogue that took place Lady’s premise. I am not going to revisit the past, but between Andrew Dilnot’s team and Tom Hughes- the truth is that, since I became directly involved, I Hallett’s team, and they have made complementary initiated cross-party discussions before the election on recommendations. My hon. Friend is absolutely right to the reform of social care, and I did not leave those say that, as far as end-of-life care is concerned, there is discussions. It was her former Prime Minister who widespread unmet need. The disparity in the quality of effectively broke them down. care and the services provided in different parts of the country is staggering. Just as the Dilnot commission deals with care and support, we certainly aim to deliver Tony Baldry (Banbury) (Con): I think everyone knows greater consistency in eligibility and in the quality of where we want to get to on palliative care. We want to care provided. provide those people who want it with a much better opportunity to die at home or to die in a hospice while Mr Jim Cunningham (Coventry South) (Lab): I am being properly cared for and supported. How does my sure that the Secretary of State is aware that there are right hon. Friend see us getting from here to there? concerns nationally—and locally in Coventry—about What process will be involved, and who is going to drive Southern Cross. Can he be more positive, because so far that process to improve palliative care? the answers we have received from the Government have been very vague? Equally, there is concern about Mr Lansley: I am grateful to my hon. Friend for his the regulator being undermanned, so how does he question. This is very much about ensuring that, at the intend to improve that and improve the quality of care? same time as engaging on the palliative care report, we build pilots that will enable us to see how the proposals Mr Lansley: I am sorry if the hon. Gentleman feels would work in a number of places across the country. I that the Government have been anything other than know that some areas of the country are ready and absolutely clear about what we are setting out to do. willing to do that. The essence of what we are doing is This is a problem that derived from the commercial to be increasingly clear about what quality services for decisions that the company made and it should be those at the end of their lives look like, and to be sure resolved by further commercial discussions between the that we can integrate those services by developing a company, its landlords and its lenders. We are constantly system of per-patient funding. That would enable the in touch with all of those, but it is not the Government’s providers to work together within the funding framework, responsibility to step in and take those decisions. What without the current constraints and demarcations, and is the Government’s responsibility, which we are clear without the silo system that currently divides palliative about and ready to take action as necessary, is to ensure care and end-of-life care services in a way that makes that individuals in those care homes and their families the system immensely confusing and difficult for people are not abandoned and do not fall through the gaps or 1243 Reform of Social Care4 JULY 2011 Reform of Social Care 1244

[Mr Lansley] embark on this major reform, they can feel confident that they understand those trade-offs and precisely how find themselves without access to the care and support these costs are to be met. they need. I hope that, in the midst of the perfectly legitimate concerns being expressed, people do not stray Catherine McKinnell (Newcastle upon Tyne North) into causing people to be more fearful than they need (Lab): The increased availability of care at home is to be be. welcomed, but it also poses increased challenges for safeguarding vulnerable adults. Given that personal Mr Marcus Jones (Nuneaton) (Con): Will my right budgets can be spent on unregistered and therefore hon. Friend confirm that the Government are taking unregulated care providers, what steps will the Secretary the action necessary to ensure that residents in Southern of State take to ensure that taxpayers money can be Cross care homes, such as Harmony house in my spent only on good quality and safe care provision constituency, will not be left without the care that they where the rights of care workers are also fully respected? need? Mr Lansley: The hon. Lady makes a number of Mr Lansley: My hon. Friend is absolutely right. I important points. As the Minister of State, my hon. have a Southern Cross care home in my constituency Friend the Member for Sutton and Cheam, made clear and I am sure that most Members do. We cannot know recently, one purpose of legislation in due course will be precisely how the commercial discussions will turn out, to put the safeguarding on a statutory basis, which is but what we can be sure about is that we have put important. Working with the CQC, we must ensure that together with the directors of social services in local in domiciliary care as well as in residential care homes, authorities clear contingency plans to protect the residents mechanisms are in place that enable us to assess the if need be. quality of care and get feedback from residents. The social care outcomes framework must be developed in a way that captures an understanding of the experience of Mr Dave Watts (St Helens North) (Lab): The Secretary care users, their families and supporters. of State will be aware that many people both inside and outside the House believe that this matter is going to be kicked into the long grass by the Government. Can the Nicky Morgan (Loughborough) (Con): I thank the Secretary of State set out the time scales for the consultation Secretary of State for his statement and I welcome the process and for the introduction of the legislation that Dilnot review. As other Members have said, however, will be needed? hundreds of thousands of families across the country are already worrying about how they will pay for care bills for their relatives, including the Strachan family in Mr Lansley: Many people would therefore be wrong my constituency, who said publicly this morning that in that respect, because we are clear about taking this they have only two months’ money left to pay care report forward as the basis for engagement in the autumn, home bills and are not sure what they will do after that. publishing a response and carrying out other related When my right hon. Friend launches the consultation, work on palliative care in the spring, publishing a White may I urge him not to forget the needs of those already Paper and a progress report on funding reform and in the care system who are worrying about paying bills, legislating at the first available opportunity thereafter. as well as being rightly concerned about those facing future care bills? Julian Sturdy (York Outer) (Con): Through the broad principles of the Dilnot report and the work already Mr Lansley: My hon. Friend’s point relates to the carried out by the Government, we at last have a degree of uncertainty and insecurity that the current framework that we can work towards to bring security, system tends to engender. It is important that we deal dignity and fairness back to elderly care, which I believe with that, and that people understand the circumstances is really important. Will my right hon. Friend assure us, in which the state pays and will continue to pay. We however, that we have a sensible and workable time should not give people who have no assets the sense that frame within which to deliver? they will be required to pay when they have no means of doing so. The state will be there to support them. Mr Lansley: My hon. Friend is absolutely right. At There will be a safety net, and the commission makes the heart of this, we know that additional resources recommendations about how further to develop it in have to be brought to bear and that given the financial future. Beyond that, we must arrive at a place where circumstances we face, we also know that this will have people are able to understand better the nature of the to be a partnership between taxpayers, families and care costs that they might meet, and where there are individuals—it cannot simply be handing costs over to good, affordable, secure mechanisms through which the state. Although Andrew Dilnot makes no specific they can prepare for those costs, so that they do not recommendations about how to pay for his proposals, have the gross insecurity that exists at the moment. he is very clear that even if it were to be through a tax mechanism, he believes it should come from an existing Mr David Nuttall (Bury North) (Con): Does my right tax and should bear particularly on the same groups of hon. Friend agree that improved palliative care will be older people rather than be a further intergenerational enormously helpful to those of us who wish to resist the transfer from working age adults. What that immediately calls for the legalisation of euthanasia, and that a points to is the necessity of engaging fully with some of reduction in the number of deaths in hospital could the stakeholder groups such as Age UK and others and save tens of millions of pounds each year for reinvestment of engaging properly with the public so that before we in patient care? 1245 Reform of Social Care4 JULY 2011 Reform of Social Care 1246

Mr Lansley: I share with my hon. Friend the feeling provided this year is a great deal of money, which will that if we can improve the quality of end-of-life care substantially increase access to such facilities as community and give people an understanding of the recent great equipment, home adaptations, reablement and rehabilitation developments in symptom control at the end of life, —but through, for instance, telehealth, which I mentioned people’s perception of the decisions that they might in response to an earlier question. I think that we can have to make about end-of-life care might change, and transform the quality of care and health services provided that might give them greater confidence that they can at home. have what most people would regard as a good death. Christopher Pincher (Tamworth) (Con): Because Anne Marie Morris (Newton Abbot) (Con): I welcome Haunton Hall nursing home in Tamworth is owned by the Dilnot report’s many practical suggestions, which Southern Cross, its fate is of grave concern to residents will be very important in Devon because it has the and their families. Will my right hon. Friend confirm highest level of retired people—22%. With regard to the that any advice he receives from the regulator about need for any new funding proposal to cover a range of companies such as Southern Cross, which the Labour different provision, given the change in relation to when party unfortunately ignored, will not go unheeded by people need to go into residential care, the contracting him? will need to be looked at carefully. Does the Secretary of State agree that if we are to have contracts, they need to Mr Lansley: In the past, Governments received advice be standardised? For example, the contracts that councils from the regulator about the desirability of their being enter into with care homes are not standard, so although able to undertake proper scrutiny of the financial in theory they offer the same quality of care— circumstances—the financial viability and sustainability—of organisations. No powers in that regard have been Mr Speaker: Order. I am extremely grateful to the taken in the past, but we are seeking such powers in the hon. Lady, but I think that that is an excellent subject Health and Social Care Bill, and one of the debates that for her to pursue in an Adjournment debate, and I feel we will need to have concerns the extent to which it will sure that she will. be right for us to use them in the future.

Mr Lansley: But there is the nub of a very good Mr Philip Hollobone (Kettering) (Con): How will the question there. If we develop greater national consistency Secretary of State ensure that the very best examples of in eligibility and in assessment, we might also start to the hospice movement, such as Cransley hospice in engender greater consistency in quality, including the Kettering, can become involved in the establishment of contracting that supports it. the new framework for palliative care, so that best practice is extended throughout the country? Bob Stewart (Beckenham) (Con): My local borough, Bromley, tries very hard to use its resources for social Mr Lansley: As my hon. Friend will know, Tom care as efficiently as possible. Might boroughs such as Hughes-Hallett, the chief executive of Marie Curie Bromley and others throughout the country be given Cancer Care—who is leading the palliative care review—has more resources to help them to ring-fence funds for engaged fully with Help the Hospices and the hospice social care, particularly palliative care? movement. I understand from my conversations with hospice representatives over a number of years that Mr Lansley: As my hon. Friend will know, local they do not want their funding to be subject to the authorities were keen for many of the grants that we vagaries of public expenditure. Individual block grants provided not to be ring-fenced in future, including the that vary from year to year give them no confidence social care, public health and learning disability grants. about the services that they provide. They do not want We aim to give local government more flexibility, but, additional resources as much as clarity about what through the NHS, we are providing additional resources—in resources will be provided for the individuals who seek Bromley and elsewhere—to support preventive interventions their care. They particularly hope that there will be a that benefit both social care and the NHS, and I think corresponding transfer of resources to hospices which that that will make a big difference in Bromley. As we provide services that replace the NHS and support know, however, all local authorities are, of necessity, people at home, as many are increasingly doing. having to seek greater efficiencies, and we are working with local government to identify where they can be Graham Evans (Weaver Vale) (Con): I have four Southern delivered. There is still a dramatic variation between the Cross homes in my constituency. Does my right hon. costs of care services provided in different parts of the Friend agree that the Southern Cross situation highlights country. the need for a dedicated financial regulator for social care services? Charlie Elphicke (Dover) (Con): As we know, going into a home is long on cost but short on life expectancy. Mr Lansley: As I said earlier, this is one of the issues I particularly welcomed my right hon. Friend’s comments on which I hope we will have further discussion as part about greater prevention. What more can be done to of the debate on wider social care reform leading to the promote access to—and promote in general—day care White Paper. and respite care? Jason McCartney (Colne Valley) (Con): End-of-life Mr Lansley: We have made specific additional provision care is massively enhanced by Kirkwood hospice in my to support respite care. I hope that people will be given part of west Yorkshire, and the construction of a new more independence and support at home not only as a children’s hospice has just begun on the outskirts of result of NHS support—the £648 million that will be Huddersfield, funded by the West Yorkshire Forget Me 1247 Reform of Social Care4 JULY 2011 Reform of Social Care 1248

[Jason McCartney] of people living beyond 85 in 10 years’ time. The Dilnot report stresses the importance of the awareness campaign. Not Trust. Does my right hon. Friend agree that when Does my right hon. Friend envisage an active role for considering the hospice movement in our country, we third sector organisations such as Age UK and Citizens must always remember the children’s hospice movement? Advice not only in delivering the awareness campaign, but in helping to shape it, and is there also a wider role Mr Lansley: My hon. Friend is absolutely right. The for such organisations within the Dilnot framework? children’s hospice movement has done immensely good work over the years. I am aware of that in my own Mr Lansley: My hon. Friend makes a very good point, constituency through the work of East Anglia’s Children’s and I hope we will be able to take up and develop that Hospices, and I am sure many Members also completely during the coming weeks. understand. That movement’s work has been done in circumstances in which a very small proportion of the Neil Carmichael (Stroud) (Con): Does my right hon. resources for children’s hospices comes from state sources. Friend agree that in a modern, responsive and caring The palliative care funding review addresses both adult’s social care system, we need more transparent and effective and children’s end-of-life care and palliative care and decision making and improved integration with the identifies per-patient funding for children as well as NHS, so that the person in need of care can navigate adults, and it therefore offers children’s hospices precisely their way around the system? the same kind of security in the future as adult hospices. Mr Lansley: I agree with my hon. Friend, and in his Paul Uppal (Wolverhampton South West) (Con): Does county the early implementation of health and wellbeing my right hon. Friend agree that the Dilnot report goes boards, which are to be legislated for under the Health some way to addressing the long-standing issue that for and Social Care Bill, will provide precisely that opportunity many years the current system has been punitive to for the integration of health and social care services. those who have been prudent and frugal in planning for Andrea Leadsom (South Northamptonshire) (Con): their old age? A constituent of mine who is 61 years old is the full-time carer for both her disabled husband, who lives with her, Mr Lansley: Yes I do, and one of the essential reasons and her elderly mother, who does not. Since she drew why the Dilnot commission was rightly established is her state pension, she has not been allowed any kind of that there are many people who have worked hard, carer’s allowance. Will my right hon. Friend join me in saved and accumulated assets and expected to be able to praising all retired people who do such work, which enjoy them in their older age or to pass them on to their saves the taxpayer a fortune, and will he look into what families, but who instead found that all those assets we can do to provide more support for such people? were destroyed as a result of the sheer chance event of, for example, long-term disability or dementia. That is a Mr Lansley: I am grateful to my hon. Friend for tragic situation, and as Andrew Dilnot well puts it, if asking that question, and I will, indeed, join her—and, people have a health care need and are seriously ill the I am sure, the whole House—in expressing our support NHS will look after them, and if their house burns for those who care for their relatives. It is absolutely down or they have a car crash there is insurance for vital work, and we should understand and support it. that, but here we have a potential catastrophe in people’s As my hon. Friend will know, my right hon. Friend the lives for which the state will not provide and nobody Secretary of State for Work and Pensions is currently else is willing or able to offer them that similar kind of reforming welfare, and he has made it clear that although protection. It is therefore vital that we take forward the carer’s allowance does not form part of universal credit, Dilnot recommendations in the way we are proposing. it is important for us to continue to understand how it should in future meet its aim of supporting carers. David Rutley (Macclesfield) (Con): I welcome the statement, and it is particularly welcome in Cheshire Mr Speaker: I am grateful to the Secretary of State east where we anticipate a 120% increase in the number and all colleagues who participated. 1249 4 JULY 2011 Points of Order 1250

Points of Order Jeremy Corbyn (Islington North) (Lab): On a point of order, Mr Speaker. Last Monday, the Home Secretary answered an oral question from the hon. Member for 4.40 pm Finchley and Golders Green (Mike Freer) by giving the Mr Liam Byrne (Birmingham, Hodge Hill) (Lab): On view that she was able to consider whether or not to a point of order, Mr Speaker. Both you and “Erskine grant an exclusion order against an individual—in this May” have made it very clear that, by a resolution of case, Sheikh Raed Salah. He was subsequently arrested this House, Ministers should be as open as possible and is now being detained in prison. Only after great with Parliament, refusing to provide information only difficulty are his lawyers being allowed to visit him when disclosure would not be in the public interest. tomorrow morning, and no other visitors have been Nineteen days ago, this House completed debate on the allowed. I realise that the House cannot debate the Welfare Reform Bill, including a measure to place a cap matter today and I understand that no legal process is on benefits. During the debate, on 17 May, the hon. before any court on this matter but, at the very least, do Member for Cardiff Central (Jenny Willott) said that you not agree, Mr Speaker, that the Home Secretary she had “heard” that Department for Communities and should, out of courtesy, come to the House to explain Local Government estimates forecast a rise in homelessness what she has done and take questions on the subject? of 20,000 if the measure was introduced and that the She seems to find great difficulty in communicating policy would cost more than it saved. The Minister of with MPs on this issue, despite the fact that the gentleman State, Department for Work and Pensions, the right in question was invited to this House by a number of hon. Member for Epsom and Ewell (Chris Grayling) colleagues to address a meeting here last Wednesday replied by saying evening? “I have no clear evidence that further information is available”– –[Official Report, Welfare Reform Public Bill Committee, 17 May Mr Speaker: I am grateful to the hon. Gentleman 2011; c. 985.] for his point of order. Whether the Home Secretary beyond the impact assessment. chooses to make a statement on the matter or not is a judgment for her, and it is not something in relation to Yesterday, we learned that the DCLG had, in fact, which I have any formal power. As he will be aware, I, written to the Prime Minister’s office, ahead of a meeting too, was conscious of the fixture of the individual in of the Prime Minister, the Deputy Prime Minister, the question. He was to address a meeting in the House, Chancellor and the Chief Secretary to the Treasury, which was perfectly orderly so long as he was not a to say that, yes, the DCLG’s assumptions were that person of concern, and was freely at large and legitimately homelessness would rise by 20,000 and the policy would so. When that situation changed, the arrangement cost more than it saved. It seems inconceivable that this whereby he would address the meeting also changed. cast list and the hon. Member for Cardiff Central all All I would say is that the hon. Gentleman has raised knew about this and the Department for Work and an important point. I know that he has sought Pensions Ministers did not. In addition, the Secretary communication with the Home Office and at least an of State has signed an impact assessment which makes explanation of the situation. That approach seems to no mention of the DCLG’s concerns. He said that his me to be entirely reasonable, and I hope that his picture was legitimate curiosity on this matter will not for long “a fair and reasonable view of the expected costs, benefits and remain unsatisfied. impact of the policy”, even though it does not contain the warning that was Mr Tom Watson (West Bromwich East) (Lab): On a issued to the heart of government. My question is, point of order, Mr Speaker. In the past few minutes, it therefore, very simple: how do we in this House bring has been revealed by The Guardian newspaper that Ministers to account for who knew what and when, and Milly Dowler’s phone was hacked by private investigators why did they not disclose crucial, material information working for News of the World. The company subsequently to this House? revealed the information to the Surrey police, who were investigating the matter. As well as being a despicable Several hon. Members rose— and evil act that will shock parents up and down the land to the very core, it also strongly suggests that Mr Speaker: Order. I am grateful to the right hon. Parliament was misled in the press standards inquiry Gentleman for his point of order and I will take other held by the Select Committee on Culture, Media and points of order in a moment. First, I would say to him Sport in 2010. Is it possible to know how we can address that he has recourse to the Table Office and may want to that matter? avail himself of that opportunity to see how, through the Order Paper, he can pursue the matter. Secondly, he Mr Speaker: My response to the hon. Gentleman is has raised, on the Floor of the House, an extremely threefold. First, the first I heard of this was when he important issue. He will appreciate that I have not had courteously sidled up to the Chair to mention it to me the opportunity to study in detail the force and potential fewer than five minutes ago. Secondly, my initial procedural significance of what he reveals, but I am happy to look advice to the hon. Gentleman is that he might wish to into it further, reporting back to him and, if necessary, take the question up with the Culture, Media and Sport to the House. Thirdly, Ministers on the Treasury Bench Committee, which he judges to have been misled or will have heard what he has said, and the text of it will misinformed in this matter. Thirdly, in view of the very soon be available to them, and it is for them to gravity of the issue he has raised, the detail of which I decide whether, on the back of his observations, they was not previously familiar with, I can say only that it think it necessary to say something to the House sooner will have been heard by Ministers on the Treasury rather than later. Bench and if they judge in the circumstances that some 1251 Points of Order 4 JULY 2011 1252

[Mr Speaker] Finance (No. 3) Bill Further consideration of Bill, as amended in the Committee sort of public response is desirable—as they might—I and in the Public Bill Committee. hope that that response will be made on the Floor of the House of Commons before it is made anywhere else. I hope that that is helpful. New Clause 11

HIGH COST CREDIT LENDING ‘The Government shall lay before Parliament a review of all taxation measures contained in this Act that are applicable to those judged by the Financial Services Authority (or its successor body) to engage in high cost credit lending. This review shall consider the following matters— (a) the nature of the high cost credit market and the proliferation of lending practices which are detrimental to consumers and or competition in the provision of credit to consumers; (b) the impact that taxation could have on the provision of high cost credit in the UK which is detrimental to consumers and or competition in the provision of credit to consumers; (c) whether changes to taxation could discourage lending in a manner which is detrimental to consumers and undermines competition in the provision of credit to consumers; and (d) other measures relevant to the high cost credit lending sector that may prevent consumer detriment.’.— (Chris Leslie.) Brought up, and read the First time.

4.47 pm Chris Leslie (Nottingham East) (Lab/Co-op): I beg to move, That the clause be read a Second time. We do not often find the issue of high-cost credit lending in the headlines, but it is critical for many people up and down the country.Many of our constituents would expect to see it addressed in the Finance Bill, because there is growing concern that a large number of some of the poorest people in society are becoming prone to high-charging payday lending, doorstep lending, new variants of hire purchase and illegal loan-sharking, especially as the mainstream banks restrict credit availability. I gather that since 2007 we have seen a fourfold rise in payday lending. The high-cost credit sector is now estimated to be in the order of £8.5 billion in value. The situation is familiar to many hon. Members across the House and particularly so to my hon. Friends, who represent some of the poorest and most challenged constituencies in the country. In my constituency, Nottingham East, the citizens advice bureaux and other advice organisations, such as Advice Nottingham and the St Ann’s advice centre, have recently published an anthology of modern poverty as they encounter so many stark stories of personal indebtedness daily. There are too many instances of companies—legal ones—preying on the vulnerability and desperation of stressed consumers who need to bridge their spending with short-term but, unfortunately, ultra-high-interest credit. A quarter of consumers who use high-cost credit cannot access any other form of borrowing. Apparently, 7 million people in the UK are denied credit and bank accounts that many of us would take for granted.

Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab): May I lend my support to my hon. Friend’s endeavours on this critical issue? Is it not a fact 1253 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1254 that the pressure on debt advice in our constituencies citizens advice bureaux up and down the country, along has increased dramatically because of the economic with other face-to-face advice agencies. Indeed, the circumstances and the tightening of the criteria for financial inclusion fund was an essential bit of seedcorn social fund and care grants, and that this situation will funding, so I would be grateful for the Minister’s clarification get worse as people get caught up in a spiral of borrowing about its future. to pay existing debt? The Financial Secretary to the Treasury (Mr Mark Chris Leslie: My right hon. Friend, who has an Hoban): There is no need for clarification: if the hon. excellent track record in raising many of these issues, is Gentleman had done his research properly, he would completely correct. The vice in which many of our know that the Government have extended the funding poorest constituents find themselves being squeezed is for debt advice for a further year, and it is the intention very much apparent. The changes to the social fund that the Money Advice Service—which is funded by the that he mentions are part of the context in which we financial services industry—will take on that work. would want to review the circumstances in which high-cost lending takes place. That is the objective of our new Chris Leslie: I did indeed know of the hon. Gentleman’s clause 11: we want to examine the possibility of regulatory announcement of some time ago—not quite a full year and/or tax measures to address this problem. yet. We are now into July, and the funding is due to run out next April, expiring at the beginning of the financial Richard Fuller (Bedford) (Con): The hon. Gentleman year 2012-13. Many advice agencies are quite anxious mentioned the fourfold increase in payday loans. Would about what will fill the gap. It is clear that he has kicked he acknowledge that a substantial amount of that increase the issue to the Money Advice Service, although we do occurred in the period 2007 to 2009, at the start of the not yet know what its approach will be. One crucial recession, and that although the rate has subsequently point is whether it will be interested in face-to-face increased, its growth has tapered off somewhat? Does advocacy and supporting such activity. he also agree that payday loans are but a sub-segment of the sub-prime, high-cost credit sector? Yvonne Fovargue (Makerfield) (Lab): Does my hon. Friend agree that the Money Advice Service now constitutes Chris Leslie: Yes, payday lending is indeed a facet of an online source of advice for those who have money on the broader problem. I am not sure about the trends where to invest it and does not address the issue of and how things have been moving—the hon. Gentleman people who are in debt? may have other statistics that it would be worth sharing if he makes a contribution to this debate—but there is no doubt about the trajectory of that growth, which has Chris Leslie: My hon. Friend makes an important been quite marked, which I know is a concern for all point. In addition, it does not necessarily address the Members, in all parts of the House. face-to-face advice that is given by many citizens advice bureaux and other agencies that have been reliant on the financial inclusion fund. The Minister says sotto Lorely Burt (Solihull) (LD): Government Members voce that it will do face-to-face advice as well; I will be share Opposition Members’ concerns about this issue, interested to see whether the £26 million of investment and we want to do the best that we can. However, new is maintained. No doubt he will want to clarify that clause 11 asks for a report on the impact of all tax and when he addresses the new clause. non-tax measures on the cost of high-cost lending when we have not yet heard the response to the Government’s I pay tribute to my hon. Friend the Member for call for evidence. I am hopeful, as are many Members, Walthamstow (Stella Creasy), whose tenacity is to be that this will address the issue and provide further help, commended for the fact that this issue remains front so does the hon. Gentleman not feel that his new clause and centre on the political agenda. The Back-Bench might be a little premature? motion that was passed last February called on the Government to introduce measures to increase access Chris Leslie: The hon. Lady makes an interesting to affordable credit and to take regulatory action to point, because it is important that we engage with the control non-competitive examples of excessive charging, Government properly on this agenda. We are still waiting but we still have not seen any action since then. That is for that report, although I hope that new clause 11 has another reason why it is important to move forward and been framed in such a way as to be pretty harmless and get a sense of priority and urgency into this issue, and to command widespread support. Ultimately, all that this Bill is a good opportunity to consider these matters. we are looking for is a review of the circumstances; and My right hon. Friend the Member for Sheffield, indeed, some of the tax measures that may need to be Brightside and Hillsborough (Mr Blunkett) spoke earlier included—although they may not—would not currently about why some of this action is needed now. The be part of the arrangements that I understand her hon. changes to the social fund and crisis loans that were Friends are reviewing. New clause 11 is simply about announced in March—after the Back-Bench motion ensuring the widest possible capability for those policy was passed in February—mean that social fund crisis levers that the Government would be able to consider. loans will no longer be available to pay for basics such There are so many measures necessary to help protect as cookers and beds, and the living expenses rate is the consumer. They include not just action on payday being cut from 75% to 60% of the benefit rate, thereby lending or interest rates, for example, but the support limiting the number of loans that can be applied for. In needed for financial literacy education—something to addition, there is a backlog of unprocessed claims and which the Government have regrettably taken the axe, the Government are planning to cut the discretionary by terminating the £26 million financial inclusion fund. social fund from £872 million last year to just £183 million That decision is a particular regret, given that it will hit this financial year—all under the axe of a Liberal 1255 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1256

[Chris Leslie] look into what will happen in the future, but we still have no clarity about consumer credit regulation and Democrat Minister of State, Department for Work and the powers that may transfer to the financial conduct Pensions, the hon. Member for Thornbury and Yate authority. It will not be a champion of the consumer in (Steve Webb). its objectives but will have regard only to the At the same time, thousands, if not hundreds of “appropriate degree of consumer protection”, thousands, are being disfranchised from access to credit. which in my view is too open to interpretation. After the credit crunch, as the banks recapitalise, we see On the prudential regulatory changes, the Bank of withdrawal from anything vaguely “sub-prime”, as it England Financial Policy Committee and the Prudential may be categorised. However, it is also known that there Regulatory Authority have insufficient consumer focus. is money to be made from vulnerable customers. Many There will be no PRA consumer panel. There is no hon. Members will have experienced pushy sales calls, voice for the consumer on the Financial Policy Committee. which are randomly generated, and text messages, which Indeed, it was interesting that the first of the FPC’s many people are receiving. It is about the desperate reports talked about the risks of forbearance, which customers that I worry most and their responses to may indeed be something the committee needs to deal some of those apparent offers of help and assistance. It with, but the fact that it did not even address the point is all part of the allure of high-cost credit, which we that sometimes forbearance and flexibility are in the need to regulate far more effectively. consumer’s interest gave me the sense that there was not It had been hoped that the promises of mutuality and yet an adequate balance in the composition of that support for the credit union movement in the coalition board. The PRA’s duty to consult the financial conduct agreement would by now have tried to make some authority is too weak and, as the Minister knows, I have inroads into this problem, but despite the promise in the criticisms of the lack of parliamentary accountability coalition agreement that of the new apparatus he is proposing. That too is an “detailed proposals to foster diversity in financial services, promote area where the consumer voice is being fettered. mutuals and create a more competitive banking industry” I acknowledge that there is no single easy answer to would be brought forward, all we have seen from the the high-cost credit regulation issue and that there are Government so far is the Northern Rock trade sale, different approaches to regulation. Caps on usurious local authority discretionary help for credit union squeeze interest rates—to use the biblical term—have often because of the cuts to their budgetary position and, of been suggested, but there could be consequences. Should course, the Treasury’s pre-emption of the Lloyds banking we control things geographically, for example where group disposal. The Vickers commission was looking at there is inadequate competition? Sometimes deserts how to handle that particular issue, but Ministers have emerge, even among doorstep lenders, who have scaled pressed on with the disposal of 620 branches rather back their activity in recent years, and the illegal loan than pausing and waiting for that report. shark has filled the gap voraciously. At the same time, funding for advice and financial There are cases when taxation of demerit activities education is falling away, as we have been discussing, might be appropriate, to discourage punitive charges as local authorities cannot pick up the tab. The basic and rates. We need detailed regulation to protect not problem is that not all customers are informed and just the percentage interest rate charged, but also the logical when it comes to financial issues. The Money admin fees and product fees that put such a squeeze on Advice Service, as my hon. Friend the Member for the unsuspecting consumer. One of the best ways to Makerfield (Yvonne Fovargue) mentioned, may well be look at the regulation of high-cost consumer lending is there as a guide for people who have the time and space to consider time limitations on the use of payday lending. to make those decisions, but many of our constituents Should we say that such lending is absolutely for emergency are not only busy but are often confused about financial circumstances and it should have only short-term services. They can be distracted and stressed and in availability? Unfortunately, we see people go back to many cases they have an aversion to small print. Coupled payday lenders month after month, and even year after with that, there is massive inertia in credit services. year. Excessive long-term dependency on payday lending There are some fantastic charities, such as Citizens needs to be addressed. Advice, which I have mentioned, and the Consumer Credit Counselling Service, of which I was a board Lorely Burt: I entirely agree. I had a meeting with trustee for five years. They pursue a number of ways to Wongathe other week. The company advocates a maximum help those in most distress. Creditor-funded consolidation of three rollovers. It is in nobody’s interest, not even the is a very good approach, but we need other reforms in lender’s, to have people in a cycle of debt, because they the sector; facets include, for example, the fee-charging, are less and less able to pay it off. Perhaps something customer-charging debt management plan providers. like that could be included in the regulations. Charging customers rather than looking to the creditor to cover the administrative costs is an unacceptable Chris Leslie: The sector itself ought rapidly to produce business model in this day and age. The practice should suggestions for self-regulation. I hope the new clause be phased out and I hope the Minister agrees. will make the sector aware of the seriousness with which the House takes the issue. We have had enough of people in desperate circumstances being exploited. The 5pm House of Commons passed a motion in February. We Unfortunately, the consumer credit regulation changes should pass the new clause, simply to ask for a review the Government propose still involve too much confusion. and a report on the range of regulatory and financial There is still no clarity—[Interruption.]—as I understand powers that the Government ought to take to stamp out it. The Minister may know because he may be able to some of the worst practices. 1257 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1258

Customers need a fair deal from financial services If the loan sharks’ argument is that they lend on generally, but our duty is to start with the people who those terms because the people to whom they lend are a are most at risk—the vulnerable and the exploited. If security risk, we must question whether they should lend Parliament cannot stand up today to protect those most the money in the first place, and certainly at such massive in need, who will? amounts of interest. They must take the view that if 25 of the 100 people to whom they lend are forced into bankruptcy they will make enough money from the Neil Parish (Tiverton and Honiton) (Con): I rise not other 75 to make a profit. Is that moral and right? The to support the new clause but to say to Ministers that I answer is certainly not. Regardless of one’s political would like to hear exactly what they intend to do about persuasion, that cannot be right in this day and age. doorstep lending. The hon. Member for Solihull (Lorely Burt) mentioned Wonga, which can charge up I have mixed views on the new clause, but I do not to 4,500% interest on its loans. Uncle Buck can charge want Ministers to wring their hands and say that there 2,500% and PaydayUK can charge 1,200%. With a base is nothing they can do. In fairness to the Government, I rate of 0.5%, how can charging such inordinate interest should point out that the Opposition cannot hold their be justified? These companies—I call them all loan heads high, because they had 13 years in which to do sharks, to be blunt—travel around our poorest areas. I something about this issue. It is right for the coalition would be the first to admit that my constituency is not Government to take the issue on. Instead of wringing our the most deprived in the country, but I have many poor hands and saying we can do nothing, let us do something. and vulnerable constituents, and I think that Members on both sides of the House are concerned about what Lorely Burt: My hon. Friend is talking, almost action we should take. interchangeably, about loan sharks and high-cost credit lenders regulated by the FSA. The Government have I know that Ministers are not keen on dealing with put even more money into the loan shark operation to this problem through regulation, but perhaps we should clear them from the streets. It is important that we do consider our approach to smoking: we do not stop not mix the two, because whatever one thinks about people smoking—although we have banned it in public high-cost credit loan companies they are at least regulated places—but we put large health warnings on cigarette and we are doing things to improve them. Loan sharks packets. The Financial Services Authority, or whichever are totally unacceptable in this country. body will be responsible, should at the very least take action so that there are serious health warnings for Neil Parish: I agree with the hon. Lady to some those considering taking out these loans. degree, but I say to her bluntly that charging 4,500% interest, whether it is done legally or not, is theft. As a Mr Jim Cunningham (Coventry South) (Lab): Does farmer, perhaps I have slightly jaundiced views about the hon. Gentleman agree that one aspect that should bankers, who offer an umbrella when the sun is shining be looked at is television advertising? and want to take it away when it starts to rain. We cannot go on letting vulnerable people be exploited—it does not matter whether it is being done legally. Neil Parish: The hon. Gentleman is right that the advertising and promotion of these products is a great David Rutley (Macclesfield) (Con): My hon. Friend concern. These products can seriously damage someone’s makes a powerful point. The challenge is that people financial health, because they not only get them into always say that we have to do something about this huge debt, with huge interest to pay, but can often issue, but it is never clear what that thing is. For me, the prevent them from securing mainstream credit, which vital thing is awareness. The issue is not just loan sharks can affect them enormously. but extends to organisations such as BrightHouse. Does I am not greatly in favour of regulation, but I do not my hon. Friend agree that people need to understand think that we can stand idly by and let some of the most the true cost of what they are borrowing? vulnerable people in the country be exploited. They are desperate for money, and people knock on the door and Neil Parish: I share that view entirely. At the start of offer them it. In fairness, many of them do not look at my speech, I spoke about a financial health warning on all the details or consider the fact that they will have to a loan, including what the rate of interest will be. There pay such high interest if they do not repay the loans. should also be an example, perhaps showing what the They do not realise that they will probably be charged principal amount would be to repay if one started with even more interest if the loan is renegotiated, and that if £100. they do not pay on time the loans company is likely to impose huge fines. That is unacceptable in this day and Stella Creasy (Walthamstow) (Lab/Co-op): I support age and we must do something about it. the hon. Gentleman. Does he agree even when people About 50% of the population in Ireland are involved know the rates, they have little choice because they in credit unions. In the US and Canada, the figure is cannot borrow from any other type of organisation? about 40%, in Australia and New Zealand it is about Research shows that a quarter of these companies’ 25%, but in the UK it is only 2%. I know that the customers cannot get credit elsewhere, so even when Government are looking into increasing the availability they know the rates they have no option. of credit unions across the country, but we need to act much faster. In the meantime, we have to act against Neil Parish: The hon. Lady is right that parts of the these companies, the loan sharks, because people who population cannot borrow elsewhere, which is a problem. take out the loans sometimes have to pay back 10, 20, That is another reason for clear warnings, if not restrictions, 30 or 100 times as much as they originally borrowed. on the rates of interest charged. 1259 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1260

[Neil Parish] Stella Creasy: I very much hope that there will be cross-party agreement, but, as I will explain, I fear that The problem is not just that there is a population who that consensus is being broken for the purpose of cannot borrow from anywhere else but that many companies choreographing coalition conferences. That worries me and loan sharks knock on people’s doors. Credit is greatly. I hope the hon. Gentleman will agree that when often dished out in cash, which is very tempting. Some so many people are suffering by having to pay the high people could, if they went to a great deal more trouble, costs of credit that companies charge, any delay is secure money from proper lending companies at a unacceptable, and I hope he will vote accordingly. competitive rate. I know that we are not alone in wanting action as soon as possible. The campaign has the widespread Mr Jim Cunningham: People also borrow against backing not just of MPs or policy makers but of debt their wages, which puts them on a financial treadmill experts, campaigners and members of the public. They that is hard to get off when there are such extortionate are deeply concerned that doing nothing to regulate interest rates. these firms is feeding a growing crisis of personal debt for families across the country, and they want action. Neil Parish: The hon. Gentleman refers to payday loans, which also incur huge amounts of interest. I fear is that I am going to end up condemning the Government today, because we are debating not whether I am not against people being able to borrow. In a to act, or whether regulating for a cap on the cost of capitalist system, people need to be able to do that, but credit would be effective, but when to do so: debating we must stop companies exploiting people’s vulnerability when, not if, is unforgivable. and lending at such vast rates of interest. That can be achieved either by legislation or by companies having to provide a clear statement of what a loan will cost when Neil Carmichael (Stroud) (Con): I am concerned that their representatives arrive on somebody’s doorstep the action that the hon. Lady recommends might well and try to lend them money. If someone who borrows drive people into the worse position of having to appeal £100 will end up paying £2,000 back, that should be to really rather unpleasant loan sharks. That must be absolutely clear. That is the very least I should like the the great worry. Government to do. I have made, I hope, many good points, and I hope Stella Creasy: The evidence on which that presumption too that the Government will not just wring their hands —that myth—is based is very uncertain. I would argue but do something to help vulnerable people and stop that there is a strong parallel with the debates on the legal loan sharking companies taking money from people minimum wage and the fear that its introduction would in a way that I believe is theft. drive companies out of business. We now know that that is simply not the case. Evidence shows that a cap on 5.15 pm the cost of credit would lead to a fairer deal for consumers, for which we are arguing today. It is important that we Stella Creasy: I have come here today to speak in get it right, given the number of people involved in the favour of the new clause, and to vote for it, too, which I market. I ask Members to support the new clause because believe will be a powerful expression of the need to act it proposes regulatory action now, given the consensus to tackle the problems caused across our country by that there is a problem. It states that it covers high-cost credit companies, or so-called legal loan sharking. “other measures relevant to the high cost credit lending sector I promised when the House debated the issue previously that may prevent consumer detriment.” that I would congratulate those who took action to protect vulnerable consumers, and I want to do so. I By consumer detriment, we mean lending that drags welcomed the announcement of the consumer credit people into debt. review and the coalition agreement promise to tackle We might all agree that there is a problem in the the cost of borrowing on store cards and credits, but it market, and that something needs to be done, but the worries many of us that it is already overdue. To meet coalition’s choreography is getting in the way, and I fear the timetable, that work will have to be done within the that our constituents will lose out. In making the case next two weeks. for Government Members to change their mind about Even more worrying for the Opposition is the fact the political fancy footwork and instead dance with us that we have had to drag the Government kicking and to action now, I want to set out what the problem is, screaming to the table to discuss high-cost credit, because what is causing it, what could be done about it and why the coalition agreement made no commitment to tackle doing nothing, or even delaying doing anything, should it. There is still uncertainty about whether it will be not be an option. tackled in the consumer credit review. This question is important when we are debating a Finance Bill, because we can use taxation and regulation Andrew Percy (Brigg and Goole) (Con): I am a huge to deal with social and economic problems. For example, supporter of what the hon. Lady is trying to do. I agree we could tackle problem drinking by raising taxes on that there is concern about how quickly we are moving, high-strength alcoholic drinks. Indeed, in Committee, but we had 13 years of her party’s Government. Can we the Economic Secretary to the Treasury said: try to keep this a cross-party matter? Members of all “We can see that such a measure will have a disproportionate parties are concerned about it, so let her not bash the impact on tackling problem drinking, because the change in Government, and when I speak I will not bash the taxation will make it less attractive for producers to make such Labour Government for their inaction. Let us all try to strong products.”––[Official Report, Finance (No. 3) Public Bill keep it positive. Committee, 17 May 2011; c. 166.] 1261 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1262

By the same principle, the Treasury could tackle problem in this market are not just those whose incomes have lending by penalising companies that fail to meet certain always been fragile, but many middle-class families. standards in their provision of consumer credit. Experian data show that the biggest increase in insolvency The problems in the lending market make the issues is among those with suburban mindsets—people who clear. The UK has one of the highest levels of personal are in work, married and have kids, and who are trying debt in the world. As of April last year, Britain owed to make ends meet. more than £1.4 billion in private debt. As the hon. Member for Tiverton and Honiton (Neil Parish) pointed Lorely Burt: Is it a matter of regret to the hon. Lady out, borrowing money is sometimes essential, whether that the previous Labour Government presided over the to enable someone to pay for training or a house, or to greatest expansion of consumer credit in the history of start a business. Indeed, borrowing is critical for our this country? In their 13 years, the previous Government future economic recovery. I am therefore saying not that tried to do a number of things, but rejected the proposal we want to stop people borrowing, but that we want to in new clause 11. Does she agree that this Government, stop problem borrowing. However, the current signs are one year in, should be given the opportunity to finish that personal debt is on the rise, and that is a problem. their consultation and make proposals of which she might approve? Pat Glass (North West Durham) (Lab): Does my hon. Friend agree that the evidence suggests that this Stella Creasy: I am interested in the hon. Lady’s country is now becoming a haven for such companies, impression that consumer credit is a bad thing, because which are targeting this country because of the lack of I do not agree. I would also be interested in her views on regulation? Does she also agree that that is making research by the Office for Budget Responsibility, which things far worse for our constituents? shows that as a direct consequence of the Government’s Budgets an extra £10,000 of debt is being put on to Stella Creasy: My hon. Friend is exactly right. It is households. Perhaps she would like to comment on the not just evidence; the companies have specifically said implications of that for family finances. No? Then I will that the lack of regulation in the UK compared with continue. other countries makes it a target market for them. The problem is not just the high-cost credit industry We know that borrowing is becoming a problem for but the nature of the industry and the way in which it people. More than four in 10 people are worried about operates, which is causing so many problems. What their current debt, and in recent months 4 million have most worries many Opposition Members is that so many taken on more debt than they ever have before. One families are struggling. Indeed, we know that 46% of third of families say that they have no emergency savings families say that they do not earn enough in a month to whatever. However, this debate is not about a lack of pay all their bills. Crucially, of that 46%, 10% say that rainy-day money. The number of people who say that the reason they are struggling is the repayments on they are likely to exceed their overdraft limit has more high-cost credit. It is those very products that are pushing than doubled in the past year, and the number of people them into financial difficulty. who say that they are likely to use an unauthorised For the avoidance of doubt, I say clearly that I am overdraft this month has nearly doubled since July last not trying to put Wonga and the other companies out year, from 900,000 to 1.6 million. of business. I do not hold with the constituent of mine That means that more people are getting into financial who argued that we should learn a lesson from Dante difficulties. In recent years, personal insolvency in the and put them in the seventh circle of hell, but we can UK has reached a record high. On average, there are make the credit market fairer for all concerned. It is more than 160 personal insolvencies every year in each important to set out, therefore, the kind of companies constituency, which is a dramatic increase since the start we are talking about and just how quickly this industry of the last decade. is growing in the light of recent economic circumstances. New clause 11 covers not only those who are formally Many people know about payday lending—the form in financial difficulties but those who are affected by of credit whereby a borrower gives a creditor a cheque debt and who have not sought help. The proposal or an authorisation to make an automatic withdrawal reflects the growing inequality in our society between from their bank account. That is used as security for a those who can borrow affordably and those who cannot. short-term loan to be repaid, supposedly on the next Research by the Department for Business, Innovation payday. It is a long-established form of credit in other and Skills shows that most households have a debt-to- countries, but it is relatively new to the UK—and it is income ratio of 10% or less, but that one in five households growing rapidly. By 2009, the payday lending industry have debts worth more than 100% of their annual was worth more than £1.2 billion, and the figures I have household income. There is growing evidence that such gathered from the Department for Business, Innovation households are using multiple forms of unsecured credit—a and Skills, which were released under a freedom of mixture of high-cost credit and credit cards. Thirteen information request rather than being put in the public per cent. have four or more types of debt. domain, show that it is now worth £1.9 billion. Indeed, The question for many of us is this: who is borrowing? in its “Keeping the Plates Spinning” report, Consumer Eleven per cent. of lone parents use non-mainstream Focus estimates that payday lenders are expected to loans compared with just 3% of households overall. quadruple the scale of their operations in the UK in the The Consumer Credit Counselling Service tells us that next few years alone. one in eight people who contacted it during the first half of 2010 were claiming jobseeker’s allowance. However, Richard Fuller: The hon. Lady says that the payday one thing that might concern many hon. Members is lending market was £1.2 billion in 2009. According to the growing evidence that the people who are suffering the Office of Fair Trading review of the payday loan 1263 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1264

[Richard Fuller] are concerned about home credit, particularly the provision of small cash loans to be repaid by instalment to market, it was £600 million. To clarify the situation, and collectors who call at home. A company named Provident, for my education, will she explain the difference between with which many people in the House will be familiar, the two numbers? has noted that its customer base has increased by 20% since 2007. It is now lending money to nearly 1.8 million Stella Creasy: I will happily explain the difference people in this country. between the two numbers. The hon. Gentleman might This debate is not just about home credit either; it is have heard me say that I made a freedom of information also about hire purchase agreements and other methods request to obtain the most up-to-date data from the of buying goods by instalment but under contracts that Department, and it is a source of concern that Ministers have heavy penalties written into them. BrightHouse, did not share the information with MPs. Research which has been mentioned, is also growing at a tremendous shows clearly that the market has grown to £1.9 billion. rate. In its annual report for 2009-10, it reported having If I tell the hon. Gentleman that 5% of the population had its busiest year ever, posting 13.7% growth in what have taken out a payday loan in the last year, representing it termed “contract receivables”, standing at nearly 2 million, perhaps he will understand the discrepancy. £298 million. It has opened 21 new stores in the past Perhaps he might like to account for why the Government year, increased its customer services by 20%, and grown did not want to put that information in the public domain. fourfold since 2006-07. Richard Fuller: I just wish to point out to the hon. We know that a number of factors are driving demand Lady that I think there is a lot of consensus, which I for these products. I agree with those who ask what hope she does not destroy in her passion for this issue. more the mainstream banks could do to service this group within our community. We need to ensure that As a point of clarification, the 5% figure in the OFT’s people are lent money at affordable rates, and mainstream analysis came not from the payday loan market but banks must play their part. PricewaterhouseCoopers’ from participation in the high-cost credit market, which research notes that a growing proportion of consumers includes credit unions and credit cards. Given that my are now facing the shock of being denied credit from source is the OFT, perhaps she will clarify that point too. mainstream lenders. We know that about 5 million to 7 million people in Britain are denied credit either Stella Creasy: I am happy to share the figures with because they do not have a bank account or because the hon. Gentleman, although I am afraid to say that they have no credit history. That leaves many people his interpretation is incorrect. One of the things that I with only the option of unsecured lending, including have done—perhaps I am getting a reputation for it in from payday or doorstep lenders. the House—is to do my homework on this market and to seek as much accurate information as possible. That We also know that the cost of living is pushing people was why I made the freedom of information request, to borrow to make ends meet. The Institute for Fiscal and I would be happy to share the data with him. One Studies recently warned that households are looking at of the challenges is that the Government do have the largest fall in their disposable income since 1981. information about how quickly this market is growing, Prices are rising twice as fast as income. What does that but they are timid about confirming it. mean on an everyday basis? It means that the cost of living is rising. Asda’s income tracker shows that the Nic Dakin (Scunthorpe) (Lab): My hon. Friend is average UK household is £13 a week worse off than it setting out carefully and deliberately the challenges that was a year ago, as inflation eats into what is left of wage people face. Does she agree that the exponential growth packets. We know that price-sensitive commodities are in this high-cost credit lending is the very reason the part of that mix. Petrol accounts for 12% of the average Government need to act to address this issue sooner rather household’s budget, although that is likely to change, than later, in line with the consensus across the House? and I suspect that energy prices might vie with petrol prices in the costs they add to households. Stella Creasy: I absolutely agree. I am quoting research We also know how vulnerable many in our community by the consultancy practice, R3. It is conducting surveys are to a change in interest rates. Some 30% of those because it is worried about the mix and range of credit buying a property in 2007-08 relied on 100% mortgages, that people are taking out and the high-cost credit itself, so they are especially vulnerable to signs of change. A which is causing people to get into debt. That is why I 2% rise in interest rates would lead to a £307 increase in am passionate about tackling the problem sooner rather monthly mortgage payments across the country, and than later. Contrary perhaps to some of the briefings already people are struggling to pay their mortgages that hon. Members might have had from the payday and using high-cost credit to meet their costs. industry, the majority of people borrowing from these companies are on comparatively low incomes. In particular, Stephen Williams (Bristol West) (LD): The hon. Lady one in 10 UK payday customers has an income of less just made the hypothetical point that a 2% increase in then £11,000, and 46% have incomes of less than £15,000 interest rates would cause those costs to rise. Undoubtedly a year. It is evident how quickly high repayment charges that might be true were rates to rise, but they have not eat into an already meagre wage. risen, and one reason market interest rates have not risen is that the Government are dealing with the deficit at a time when the Labour party has not come forward 5.30 pm with any policies to tackle the emergency. This debate is not just about payday lending; it is also about some of the other forms of high-cost credit Stella Creasy: I hope that the hon. Gentleman is not equally untouched by regulation in this country, including being complacent about the cost of living, its impact on home credit. I know that some Government Members people in his constituency and the fears of many about 1265 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1266 what an interest rate rise would mean for their monthly Also, they cannot build up a credit history that would mortgage payments. One thing that worries me is that a show a mainstream lender, who might lend at a lower lot of people are borrowing just to make ends meet; rate, that they could be trusted to pay a loan back. they are borrowing not for investments, holidays or Because high-cost credit companies have fixed costs, fancy televisions, but to pay their rent and mortgages they make their money by repeatedly lending to people. and to put food on their families’ tables. His complacency That means that their business strategy is geared towards about interest rates not rising any time soon is misplaced. encouraging repeat borrowing and the rolling over of loans. Friends Provident has found that 29% of payday David Rutley: I have heard the hon. Lady speak with loans are refinanced, with the refinancing rolling over passion in this debate and others, and I respect the on an average of two occasions. Some 15% of home point being made. However, some of the points being credit loans are refinanced and rolled over into a new made by Government Members are important, particularly loan before the end of their term. It is worth explaining those concerning fiscal constraint and household spending what that means for the cost of borrowing from these constraint. The gap in her argument is that it is vital high-cost credit companies. that households bear down on their spending. It is not just about the cost of financing a television or whatever One person who got in touch with me took out a loan else; it is about not going for it in the first place. There is of £650 with Wonga, in two instalments, to be paid a wider scope for this argument. This debate is not just back within a month. When the repayment date arrived, about the cost of the debt, but about people avoiding it he found that he could afford to pay only the interest in the first place by lowering their expectations of what that had accrued on the £650, which was £163. The they need. original £650 loan was then rolled over for another month. At the end of that month, he paid off the loan, which Stella Creasy: I would be interested to hear the hon. cost him another £858. That was the original £650, plus Gentleman’s advice to the nearly 500,000 Londoners interest of £208 accrued in the second month. The clock who are having to use their credit cards to pay their starts ticking in the first month of these interest payments, mortgage or their rent. Right now, people are borrowing which is how 4,500% interest rates are reached. The to pay for everyday essentials, and I fear that he sounds longer a loan is rolled over, the closer it can get to the a bit like Marie Antoinette saying that people should 4,500% APR that Wonga charges. The process of rolling just eat cake. That is very misplaced, given the dire over meant that he had paid £1,021 for borrowing £650 financial situation that many people are finding themselves over two months. It is difficult to see what level of cap in, certainly in my constituency and, I will wager, in his on the number of roll-overs would make a difference in as well. this market, because the industry consistently refuses to Indeed, Shelter’s research shows that it is not only release information about its business model. We can people in London who are using their credit cards to therefore only guess at the impact that the number of pay their mortgages. There are 2 million people in this roll-overs has on people’s debts. country who are doing it. It is horrifying to think of the Furthermore, we know that the rates charged by situation that those people are getting themselves into, high-cost credit companies often do not reflect an economic given the interest rates that they are paying on their rate, due to a lack of competition in the market, a lack mortgages, let alone the rates that they are paying on of regulation to drive down costs, and the absence of their credit cards. any ceiling being set. I recognise that using APR is We also know that changes in the cost of living affect problematic in understanding the cost of borrowing, some more than others. The Resolution Foundation especially in the payday loans industry, but as a yardstick points out in its low earners audit that those on low to it can help us to illustrate the issue. We know that middle incomes spend a higher proportion of their payday loans can cost 4,500% from Wonga. They can incomes on the goods and services that are hard to cut cost 2,100% from Uncle Buck, 1,200% from Payday back, such as their housing, their fuel, their transport to UK, and 1,700% from KwikCash. work or the food that they put on their children’s plates. That is what the hon. Gentleman is talking about. John Woodcock (Barrow and Furness) (Lab/Co-op): Those low to middle income earners spend 40% of their I apologise for coming in late to the debate. My hon. spending on those everyday essentials, compared with Friend uses the same tube line as I do. Did she notice on the 26% spent by higher earners. One in five pensioners the way in that one company was advertising on the have had to cut back on essentials such as food because tube, offering a decision by text within a minute for a of the rising cost of living. loan at an APR of 1,734%. That cannot be right; we This is not just a demand-side issue; it is also about have to do something to crack down on it. the way in which the high-cost credit market is stacked against the consumer. That is why I believe that the Stella Creasy: I agree absolutely with my hon. Friend. market merits regulation. In order to make its profits, There is no ceiling on this market, which means that the high-cost credit market makes use of a number of company rates are going up, not down. We also know the attributes of the people who have to borrow from it about the lack of competition with other sections of the and of the way in which the market is structured. As has market. Provident owns 6% of the market. In 2004, the been mentioned, a quarter of the customers of high-cost Office of Fair Trading referred the doorstep lending credit companies cannot access any other form of credit. industry to the Competition Commission and, in 2006, Indeed, Consumer Focus’s research shows that many its report confirmed the lack of competition. As Citizens users of payday loans are unable to access mainstream Advice argues, however, the fact that these problems are credit such as overdrafts because they have already getting worse, not better shows that the measures suggested maxed them out. That means that they have no choice; in 2006 have not worked and that it is time to strengthen they have no power to shop around for a cheaper loan. the intervention we make in this market. 1267 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1268

[Stella Creasy] Let me present some figures that might tempt Treasury Ministers when they see what could be achieved in the Although I am an avid supporter of the credit union way of tax through this review. The Competition movement, it cannot at this moment present any kind of Commission inquiry into the lack of effective price alternative to this market within any relevant timetable. competition in doorstep or door-to-door lending estimated Credit union membership is growing by 8% a year, but that companies were making an excess profit of at least the payday lending industry alone is three times as big £150 million a year. The commission considered that as it was two years ago. Credit union lending therefore 90% of that excess profit was made by Provident Financial remains relatively small scale, equivalent to just 5.9% in alone. On that basis, Provident has made £675 million value terms of the high-cost commercial sector. As a in excess profit out of low-income communities since consequence, it is unlikely to exercise any real competitive 2005—a sum greater than the total amount of credit restraints on the prices in the high-cost credit sector. union lending that took place in 2010. With all the signs that this market is growing The Competition Commission’s findings showed that exponentially, this new clause and the review it recommends excess profits amounted to additional costs to the consumer would allow us to look at a number of issues on how to of approximately £9 for every £100 lent. A cap on that tackle it effectively. First, it could consider excess profits— basis would have allowed Provident to charge no more than £53 for every £100 lent in 2006—still a lot of money. Neil Carmichael: Will the hon. Lady give way? Even allowing for inflation at about 4.5%, taxing credit lent at a rate of £63 per £100 lent in this market would Stella Creasy: Briefly, as I am conscious of the time. save consumers some £18.80 on every £100 borrowed or about £94 on the cost of a typical £500 loan. Even if Neil Carmichael: I thank the hon. Lady for giving Ministers rejected looking at tax measures, they could way. I think that credit unions are really important. I look at how to introduce an effective cap on the cost of have promoted them in my own constituency and I will credit. continue to do so. I have joined one myself to demonstrate Let me be very clear: I do not want to see a cap on that it is something that we should all think about. interest rates. I know that Members have been lobbied Surely it would be a good idea to put out a more extensively on this and been given information about positive message about the role credit unions can play capping the costs of credit based on caps on interest and encourage people to start thinking about being rates. I do not believe that caps on interest rates work responsible in the management of their finances through effectively. The European research shows that low caps the use of credit unions. in America have been problematic, but it points out that the more flexible caps in Europe have been effective in Stella Creasy: The hon. Gentleman is being a little controlling the market. unfair to accuse me of not putting out a positive message There are many myths about capping the costs of about credit unions, given that I worked long and hard credit, as there were about regulation and the minimum to set up the Waltham Forest community credit union wage. To those who argue that capping the costs of and to secure it more than 4,000 members from my credit would cut lending and put firms out of business, I borough. My point is that when only 2% of the British say that they should look at Poland, France and Germany, public are part of a credit union, it cannot be the which all have such caps. To those who fear that caps answer to the problems caused by these companies. The would encourage all banks to start charging 4,000% question is how to get the right mix, and I believe that interest, I say that that clearly would not happen. The regulation needs to be part of that mix. Of course EU research shows that interest rate caps have in some extending access to affordable credit is part of the cases led to less illegal lending, as consumers are better solution, but it will take decades for credit unions to able to manage their borrowing requirements without provide a serious alternative to these companies from turning to informal sources of credit. which people are borrowing and getting into debt with now. 5.45 pm The review could also consider what happens in other Frank Dobson (Holborn and St Pancras) (Lab) rose— countries and how they cap the costs of borrowing. It is not just America, France, Poland, Germany, Italy, Greece Stella Creasy: I will give way very briefly. or Spain that have caps on the costs of credit. Fourteen European countries have some form of capping system Frank Dobson: In response to the intervention by the or ceiling on charges, whether it is France with one third hon. Member for Stroud (Neil Carmichael), is it not a over the market average, or Slovenia, which has a spread further problem that because of the cuts to citizens of caps. Some countries, such as Ireland, cap only parts advice bureaux, welfare rights units and law centres, of the market. Others, such as Germany, have limits on good advice, which might help people to steer clear of all forms of lending. loan sharks, is less and less available? As the years go by We could also consider capping roll-overs: I agree and the cuts continue, the problem will get even worse with the hon. Member for Solihull (Lorely Burt) that and the inequalities will grow. that is critical. In Alabama, for example, if someone cannot repay a loan the first time they take one out, Stella Creasy: There is a real concern about the lack they can have it rolled over only once. In Arizona, one of advocacy services and about people’s inability to get can have it rolled over only three times. In 2010, Consumer help in negotiating with their creditors. I believe that we Focus called for limiting the number of roll-overs to five have to make credit affordable for all; payday lenders per household per year. could be part of the mix if they were properly regulated. We could also consider capping the amount that can That is all that the new clause calls for. be lent as a percentage of income. In Montana, one 1269 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1270 cannot be lent more than 25% of one’s take-home trying to make ends meet, who put the interests of the income. The number of such loans that a person can British people first, not second, and who know that the have at any one time could also be capped. In Montana, capping of the cost of credit should be announced now a person cannot have more than two at any one time, and not on the conference podium. and a lender cannot lend the person more than $300. I ask Members not to make the public wait but to Nebraska allows only one loan at a time. As my hon. vote yes today, tell their constituents how they plan to Friend the Member for Nottingham East (Chris Leslie) cap the cost of credit, and then get on with doing it. The said, we could also consider whether financial conduct people who depend on us to fight for their interests and authority powers are relevant to such practices. I note those of their families need and deserve nothing less. that there is talk about it dealing with toxic products, and I hope that Ministers will consider seriously whether Tracey Crouch (Chatham and Aylesford) (Con): it should regulate the consumer credit market. The Having listened to the lengthy speech made by the hon. review could consider that. Member for Walthamstow (Stella Creasy) in the Public Above all, the review would be a kick start for action Bill Committee, and having checked Hansard to find in a matter that is pressing on many of our constituents. that it was almost identical to the speech that she just We know the consequences of doing nothing: rates of made, I congratulate her on raising, yet again, both her borrowing from such companies are going up and up. profile and the issue of unscrupulous and high-cost At the time of the Competition Commission report, lending. As she knows, she has a great deal of cross- Provident Financial was charging £65 per £100 lent; party support on the underlying problem, but I fear now it is charging £82 per £100 lent. That is an increase that her new clause has little to do with identifying of 26% in the cost of credit. With a 4.5% rate of a workable solution, and I found her speech today inflation, and a 2% increase in earnings, it does not disappointingly partisan. take a mathematical genius to work out that problems I have been rather bemused by the hon. Lady’s recent for families trying to make ends meet will only get Twitter stream, which refers to the campaign to persuade worse. Between April and May this year, there was a Members to vote for her Consumer Credit (Regulation 58% rise in people applying for a payday loan via and Advice) Bill. Perhaps she does not realise that we MoneySupermarket.com. One in 10 people in this country are voting today not on her Bill—although many of us now spends more than 30% of income on repayments may agree with its principles—but on amendments to on unsecured debt. the Finance Bill. For reasons that I shall give later, her What are the human costs of not dealing with such new clause is fundamentally flawed. levels of debt? We all know people in our communities The problem of vulnerable consumers being preyed whose lives have been torn apart by getting into debt, on by high-cost credit lenders is not new. It did not whose families are struggling, and who experience mental suddenly appear following last year’s general election. It health problems as a result. Were it passed, the new is a problem about which Members in all parts of the clause could cover a wide range of things. The question House have felt strongly for some time. My constituency remains: do we need it? I believe that we do, because the contains areas of severe deprivation, and I deal regularly Opposition need to be certain that there will be action. with case work relating to debt. I am active locally in Whether the Government will act in the best interests of trying to ensure that those with debt understand that the consumer, and not the coalition, is now in question. there are good people to turn to, such as local credit Back in February, the Minister responsible for consumer unions and citizens advice bureaux, and that they need credit asked for more time to gather evidence. Five not rely on high-cost credit lenders. months on, we have nothing, and no update. He will not meet us to discuss the matter. I warned then that we Through the local media I have highlighted my own could see any impetus for action diluted, lost in ministerial earlier debt problems, incurred when I worked as a red boxes and the cosiness of the mantra that complexity researcher here in the House of Commons in the mid-1990s. justifies the status quo. I did not realise that it would be I have received messages from local people saying that it those on the Government Benches who prevaricated was brave and courageous of me to be so honest, but I rather than officials. In the words of a prominent Lib do not think that it was anything of the sort. I saw it Dem activist, to reject the new clause merely as a way of removing some of the stigma from debt, and demonstrating not only that anyone from any “merely because it is an opposition amendment risks us being background can get into debt, but that there are good portrayed as mealy mouthed opportunists—caring more about party politics than the people I know we all got into politics to people out there who can help to put those in debt back speak up for, those people whose lives are constantly blighted by on the right track. these ruthless money lenders”. Increasing debt is an issue that should concern Members I came to the House not to improve the fortunes of in all parts of the House. It, too, is not a new issue. I the Lib Dems, but the fortunes of the public. Today, I remember talking about the nation’s personal debt topping have set out the problem in the hope that Government £1 trillion before I entered the House. For some time my Members will do the decent thing and let the cat out of local citizens advice bureau has been advising clients the bag about what they will do to give respite to those with debts totalling £1 million per week, including priority who are suffering. If not, the Government should and non-priority debts, but the figure is now nearing understand that we will not let the matter rest, and we £3 million per week. Unfortunately, Medway has a high will keep holding them to account. They may want this repossession rate: on average, about 70 repossession debate to go away, but let it stand on the record that hearings take place each week. In these worrying times, those who vote yes to the new clause today are those what we do not need are unscrupulous credit lending who see the value to our economy of ensuring affordable and, indeed, debt management companies taking advantage credit for all, who see the benefit of our communities of of those who are in financial trouble and at their most ensuring that they are not trapped in debt for years vulnerable. 1271 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1272

[Tracey Crouch] Tracey Crouch: That is a good point. In fact, what troubles me most is the impact on consumers. As we The new clause proposes taxation measures as a have been told by Members in all parts of the House, means of clamping down on, or even stamping out, the these companies prey on people who are incredibly industry. I fear, however, that the Opposition have not vulnerable, and we need to ensure that the industry thought it through in any great detail. For a start, they behaves much more responsibly. have not addressed its unintended consequences. It is A response to the Government’s call for evidence on likely that any additional tax on the companies in the consumer credit is due shortly, and I look forward to industry, just six of which control about 90% of the the findings of the review. I have always had some market, would simply be passed on to the consumer in sympathy for the proposal of a rate cap. However, it is the form of even higher rates. What is being proposed as interesting to note that Citizens Advice does not share a solution to the problem could exacerbate it by increasing the hon. Lady’s view, and nor does the money-saving the cost to the consumer and creating an even larger expert Martin Lewis. debt. Stella Creasy: It is true that Citizens Advice opposes Sheila Gilmore (Edinburgh East) (Lab): The new a cap on interest rates, but I think the hon. Lady will clause asks for a review and a report. It does not suggest find that both it and Martin Lewis have been very that the proposed measures should be implemented positive about the proposal for a cap on the total cost immediately. I fail to see the detriment that the hon. of credit, which the new clause would allow to be Lady seems to have identified. investigated. I hope that the hon. Lady will correct the record accordingly. Tracey Crouch: The hon. Lady obviously did not listen to the Minister’s response to a point made earlier. Tracey Crouch: The total cost of credit involves more As he said, a review is currently taking place. The new than just the high-cost lending industry, but the hon. clause proposes Lady spent most of her speech talking about individual “a review of all taxation measures contained in this Act”. high-cost credit lending companies such as Wonga. We I think that, on this occasion, the hon. Lady is wrong. must find a focus, and the fact is that wider issues of consumer credit are involved. I hope that the review will come up with a solution on which we can all agree. Andrew Percy: Surely any tax review is likely to come up with a suggestion for raising taxes. It is unlikely to The Government are considering specific product propose that taxes should be cut. If that is on offer, regulation as part of their draft Financial Services however, I certainly do not intend to vote for a measure Reform Bill. Under the proposals to establish the financial that would cut the taxes of the people whom we are conduct authority, a new model of conduct regulation discussing. will be established that will use early and proactive intervention to ensure that consumers are protected. That is a far more pragmatic solution than the blunt Tracey Crouch: My hon. Friend makes a good point. instrument of taxation, which, as I noted earlier, could Whether or not the tax goes up following a review—and have the adverse and opposite effect of creating a greater the hon. Member for Walthamstow will probably say problem. that it will go up—the result will be passed on to the consumer. Oliver Heald (North East Hertfordshire) (Con): Does Organisations such as Citizens Advice recognise that my hon. Friend share my concern about the fact that the problem of debt is not confined to the high-cost it is often very convenient, and made very easy, for a credit industry. It is also caused by other practices, such person to take out a loan? A door-to-door salesman as irresponsible lending, the imposition of high contingent may appear and try to build a relationship with someone. charges, and the mis-selling of debt management services. Part of the battle is to provide responsible institutions I am not a supporter of the high-cost credit industry, such as credit unions, and to ensure that people know but a tax on one part of the sector would not only be how to contact them. I think that there should be far anti-competitive, but would not address problems in more advertising and signposting so that people know other parts of the consumer credit market. how to get in touch with their local credit unions. The simple truth is that the industry needs better, if not more, regulation. Although the House may not Tracey Crouch: I met the members of Kent savers often hear Conservatives say that we need more regulation, credit union on Saturday, and look forward to meeting a number of Government Members believe that in this members of the Medway credit union in the autumn. I context, and particularly in the context of debt management, am a keen supporter of credit unions, and I think that it is the appropriate solution. We have met the Under- all of us here are responsible for ensuring that our Secretary of State for Business, Innovation and Skills, constituents are aware of alternatives such as lending the hon. Member for Kingston and Surbiton (Mr Davey), and debt management advice. Citizens advice bureaux and have told him that. also offer a fantastic service. We should take it on ourselves to ensure that the message reaches our constituents. Duncan Hames (Chippenham) (LD): The hon. Lady The House should know that there is a cross-party is right to refer to the need for regulation. What troubles consensus on this issue, and that the consumer credit her more, the profitability of high-cost lenders or the market—particularly the high-cost credit industry—is techniques that they use to entrap their customers? an area of concern. In Committee, new clause 11 was Does that not provide a clue to where we should focus billed by the hon. Member for Walthamstow as a measure any Government interventions? in line with nudge economics. While there are some 1273 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1274 taxes that have arguably altered behaviour, such as from Wonga, and I do not want to get involved in the those on cigarettes, it is highly unlikely that a tax that dispute. My point is that we must fully understand the could be passed directly to the consumer will halt the situation. The hon. Lady knows it intimately; I do not growth or the unscrupulous practices of the industry. It deny that. would be far better to concentrate on regulation rather than taxation, and it is for that reason that I urge Madam Deputy Speaker (Dawn Primarolo): Order. Members to vote against the new clause. This is supposed to be an intervention, not a speech. I call Jenny Chapman. 6pm Mrs Chapman: I am unclear as to the point that was Mrs Jenny Chapman (Darlington) (Lab): I congratulate being made, but I recommend that the hon. Lady follows my hon. Friend the Member for Walthamstow (Stella my hon. Friend the Member for Walthamstow on Twitter, Creasy) on initiating and devising this new clause. The as she might therefore become more familiar with my UK is a long way behind other countries in its regulation hon. Friend’s efforts to secure meetings with senior of this sector. Action is being taken in the United States officials at Wongaand might also understand the frustration and elsewhere in Europe, and therefore increasing numbers felt by Labour Members. It is frustration not only with of companies are seeing the UK as the ideal place to the high-cost lenders, but with the Government too. operate because they know we are behind in respect of Five months ago, the Backbench Business Committee regulation. Indeed, as they do not anticipate regulation initiated a positive debate on this issue, but there has any time soon, they also do not anticipate leaving the been no movement since then—no announcements and UK in the near future, and they consider now to be a no indication that something is in the pipeline. That good time to invest in the UK market. Therefore, fosters a great deal of frustration and a lack of trust BrightHouse says it will triple its number of high street among Opposition Members. shops here in the UK. That is not only a worry for consumers, who are, by and large, exploited by these companies; it is also a threat to our high streets, because Neil Carmichael: The hon. Lady is expressing her I for one do not want my high street to have signs saying case very well, and I sympathise with everything she is “Cash for gold” and shops such as BrightHouse; I do saying. However, is she not impressed by the work of, not want what I would call unscrupulous companies for example, the Office of Fair Trading in issuing its populating our high streets. guidelines, and does she not recognise that it has the power to withdraw licences if the guidelines are not The high-cost lender lobby is lobbying within an inch respected? I could also draw her attention to a number of its life. It is inundating those of us who are speaking of other possible actions that have been put in place to out on these issues with documents, offers to meet, enable movement in the direction in which she rightly conversations and phone calls about why it is right and wishes to proceed. we are wrong. However, Members who represent places such as Darlington see the effects week in, week out in our surgeries, so we know the impact that these companies Mrs Chapman: All those steps are very welcome, but are having. They are not doing what they do for the benefit they do not go very far at all in addressing the fundamental of the consumer, as they would lead us to believe; they issue. The Competition Commission says that what the are doing it because it is a pretty good business for OFT wants to do is nothing like enough. I understand them. I do not have an issue with their having a good the hon. Gentleman’s intention: it is to give the Government business and making money, but I do have an issue a background against which they can decide not to with people who are least able to make such financial support this new clause, but we are trying to force this decisions being exploited in this way, and that is what is issue to the fore and get something done about it. We happening. are all for cross-party consensus—that is wonderful when it can be achieved—but what we actually want is I am not a big fan of Jeremy Kyle, but in the interests something to be done. I hope the hon. Gentleman will of research I have sat through a bit of morning television, therefore forgive Opposition Members if we are sometimes and I was disgusted at what I saw on our screens. Such slightly intemperate in the way we express our views on companies are deliberately targeting people who are at this issue. home during the day and who they know are on low incomes. They are making their products look affordable, As I said when talking about my ten-minute rule Bill, easy and cheap, which they are certainly not, and, most for me the key issue is the advertising of these products, disturbingly, they are making them look the norm. which is irresponsible. It might be argued that people They are making these products appear to be an everyday are being given a choice, but people are not making that solution of which people from all walks of life throughout choice on value-for-money grounds. They are not shopping the country are taking advantage. That is the single around. They are not thinking, “What’s the best product most concerning aspect of this market. for me?” They are instead thinking, “What will get me an answer to my problem as quickly as possible, and Lorely Burt: I must confess, somewhat ashamedly, who will say yes to me? I don’t want to go to the bank that I have also seen Jeremy Kyle’s show and the and be told ‘No’ or ‘You can’t have this but you can advertisements that accompany it. I want to pick up on have something else and do you want to make an the fact that Labour Members do not feel it appropriate appointment to come back next week?’” These people to meet short-term loan companies. I do not tweet, but have very immediate financial difficulties, and these it is my understanding that the hon. Member for products are deliberately targeted at them. Walthamstow (Stella Creasy) says that Wonga has refused to meet her. That is not the case, however. [Interruption.] Damian Hinds (East Hampshire) (Con): First, may I This is my understanding; I am just going on a letter apologise for missing some of the earlier speeches? 1275 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1276

[Damian Hinds] Mrs Chapman: I am very grateful to my hon. Friend for that intervention, as he put it extremely well. I was I have a great deal of sympathy with much of what aware that credit unions in Northern Ireland were incredibly the hon. Lady has said, but the fact that these companies advanced. I have found that although the fledgling have high costs and in particular high marketing costs, credit unions in my constituency are doing a marvellous and the fact that there is no evidence that consumers are job, they are unable to do the very thing that he says is making rational choices based on which is more or less unable to be done in Northern Ireland. That strengthens expensive, suggests that taxation is not the answer to the the argument for accepting this new clause. problem. There may well be an answer to the problem, but hiking up taxes is almost certainly not it. Stella Creasy: I wonder whether my hon. Friend would like to comment on the irony that credit unions Mrs Chapman: The new clause does not only address have a cap on what they can charge, yet these legal loan taxation. The hon. Gentleman should read it thoroughly, sharks do not. as it talks about other measures too. I do not think there is any one measure alone that will address this Mrs Chapman: That is an excellent point, with which problem; there will have to be a package of measures. I shall finish my remarks. I am aware that many colleagues There is no real competition in this market, as there would like to contribute and, having heard my hon. Friend’s are only a few companies in it. On Friday my attention comprehensive speech, I will allow others to do so. was drawn to a company operating in the north-east called Provident. I was very disturbed to hear that last Christmas Provident representatives were going door to Justin Tomlinson (North Swindon) (Con): I welcome door deliberately targeting single mothers—as members the opportunity to debate this new clause. I have worked of political parties, we all know that can be done. Its with the hon. Member for Walthamstow (Stella Creasy) representatives were knocking on doors just before on a number of occasions to highlight the need to Christmas, saying, “We can offer you £500 and you protect the most vulnerable people in society, and we don’t have to pay it back until after Christmas.” They have been supported by hon. Members from both sides were saying it could be paid back in a number of easy of the House. Let us be clear that a consensus is payments, thus making it seem attractive and ordinary. essential, as has been said by the hon. Member for That is completely exploitative, and it will happen again Scunthorpe (Nic Dakin) and my hon. Friend the Member this year unless the Government do something about for Macclesfield (David Rutley). This is an extremely it; indeed, it will happen Christmas after Christmas complex and challenging issue, and although we all after Christmas. This House should neither accept nor agree that action must be taken, we need to be careful tolerate that. not to make the situation worse. I will set out a number of reasons why that could happen. All Opposition Members are big supporters of credit unions. The new clause would require the Government to review how taxation could be used to penalise high-cost Lorely Burt: So are we. credit that is detrimental to consumers and competition. However, the current consumer credit review is examining Mrs Chapman: Yes, Members on both sides of the all the options through which we can hope to secure a House are, of course. The people behind the credit measured and effective response. I first wish to highlight union movement are hard-working and honourable. I the need to use credit reference companies, because it is work somewhere where everybody is honourable, but unacceptable that so many of these loan companies do these people really are hard-working and dedicated—may not even simply check whether the person borrowing of them are volunteers—and they work in our communities the money can actually service the debt. We would all to promote low-cost credit to people who are left out of agree that we are not against people borrowing money mainstream credit. However, even with the best will in if that is what they wish to do, but they should have the the world credit unions are not going to be able to opportunity to be able to service that debt. Secondly, we compete with Wonga and Uncle Buck and so forth, need to limit the number of customer extensions and because they lack the high street and web presence. roll-overs, as a number of hon. Members have said. It is unacceptable that people can be trapped into a cycle of Mark Durkan (Foyle) (SDLP) rose— increasingly expensive debt. Thirdly, there needs to be a cut-off point, when fees and the interest stop being Mrs Chapman: I understand that the experience is accumulated. Too often we have seen people borrow a different in Northern Ireland, and I shall give way to the relatively small sum that has built up over many years. hon. Gentleman, whom I suspect will explain that further. Many horror stories have been related in previous debates.

Mark Durkan: The low membership of credit unions Mr Robert Buckland (South Swindon) (Con): Does in Great Britain has been mentioned. Credit unions in my hon. Friend agree that there has been far too much Northern Ireland have a high membership; well over a of a rush to litigation by credit companies and that a far quarter of the population—in some constituencies the better approach would be to seek mediation before figure is more than 50%—are members of the very pressing the button to go to court? Such an approach well-developed and well-funded credit unions. The credit would relieve a lot of the burden and pressure on the union movement in Northern Ireland has made it very hard-pressed consumers. clear that it expects Parliament to take action against the predatory credit sector. The movement does not Justin Tomlinson: My hon. Friend makes a very expect Parliament just to wave to credit unions; it says, important point, with which I absolutely agree. Help “Tackle the sharks, don’t wave to the dolphins.” should be provided at the point where we freeze that 1277 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1278 debt, and there should be an examination of the reasons they need to be told that it will cost Y.That would allow why a consumer was unable to service the debt before them to shop around and completely understand that debt gets even further out of control. things. If someone borrows £200 for 20 days at one of Another crucial element is to make sure that those the high-street banks, they will be paying an APR of who can pay early are not penalised for doing so. That 46,500,000 million. Again, that sounds staggering, and would mean that if circumstances change to benefit I would not advocate anybody doing that, but we have them, they would be able to break away from high-cost to compare things on a like-for-like basis. We have to lending. A number of hon. Members have mentioned make everything clear. the need for there to be greater access to credit unions, and I know that my hon. Friend the Member for East Stella Creasy: Is the hon. Gentleman saying that it is Hampshire (Damian Hinds) has highlighted the issue not acceptable for banks to do what he just described? on a number of occasions. Interestingly, and aptly, the What does he make of the evidence suggesting that one hon. Member for Darlington (Mrs Chapman) made the of the challenges in this market is the fact that a quarter point that we should be encouraging those organisations of their customers cannot borrow from banks, so even that will lend with the consumer’s interest at heart. if they wished to use unauthorised overdrafts, they The particular issue I wish to discuss, which was could not actually do so and the only source of credit mentioned by my hon. Friend the Member for Chippenham available to them are predatory lenders such as Wonga? (Duncan Hames), is the need to examine the techniques that are being used. In previous debates, I have directed Justin Tomlinson: Absolutely, and that highlights my the majority of my anger at doorstep lenders and their first point about using credit reference checks. These nudge-nudge sales techniques. They build up personal people should not be getting money from high-cost relationships, face to face, in the homes of vulnerable lenders. Many of the more reputable high-cost lenders consumers, suggesting ways in which people can borrow will not lend to them, but many of them do and prey on money. For example, in the run-up to Christmas the these people—that is particularly true of the doorstep lender will ask people whether they have organised the lenders. We have to try to ensure that more people have Christmas presents for their children, the consumer will access to the affordable banking arrangements—the say that they are not sure whether they can afford them, credit union arrangements—but we must not fall into and the lender then says, “It’s lucky I’m here. Just add the trap of thinking that the banks always get things another £3 a week and you can get the presents that right because, as in the example I just gave, they can your children want.” These lenders continuously build prove a lot more expensive— up people’s dependency on high-cost lending, so we really have to look at these techniques. Stella Creasy indicated dissent.

6.15 pm Justin Tomlinson: The hon. Lady may shake her A number of hon. Members have picked on particular head, but my interest lies in ensuring that people get the organisations—Wonga has been mentioned because it clearest information and the cheapest possible price. I is always advertising on the television and the tube, as will not defend any organisation that is going to exploit hon. Members will have seen—but we need to be wary the most vulnerable people. of attacking what may not necessarily be so and we have to be careful not to chase cheap headlines. For Unsurprisingly, the final item on my tick-list is the example, although we often consider just the annual need for financial education. I chair the all-party group percentage rate, very few people can actually make on financial education for young people, and I thank calculations using the APR. When I tested this on a the 224 Members who are now signed up to the group. treasury manager the other day, they got it spectacularly People do not understand APR and, as I have argued, wrong, as did everybody else. Let us suppose that it needs to be removed and replaced by a transparent someone needed to borrow £100 to tide them over until approach. In addition, we need consumers to be able to pay day. They have a choice between paying an APR of understand the implications of what they are signing up 4,400% plus a £5.50 product fee or, as happens at a for, its true cost, how to source alternatives and the best typical high-street bank they go overdrawn, paying a way to address the situation if they get into difficulties. flat, easy-to-understand fee of £10 a day plus £2.50 for I am conscious of the time so I will conclude. We are having used their debit card without the authority to do all agreed that action is needed—nobody, from either so. Most people would snatch the hands off the person side of the House, disputes that. I welcome the consumer offering them the flat fee—the £22.50 to borrow that credit review, but we must not fall into the trap of a £100 for two days—but the APR of 4,400%, which quick fix to chase political headlines which simply many hon. Members have mentioned, works out at £1 a makes matters worse. We need a measured and wide-ranging day and so that loan would cost £7.50, which is £15 cheaper response that puts the vulnerable consumer first. Let us than opting for the unauthorised overdraft at the bank. not chase a fix that makes things a hell of a lot worse for I am not defending that 4,400% rate, but we have to the most vulnerable people. compare the like-for-like cost of loans and consider the crucial element, which is that most people cannot Jon Ashworth (Leicester South) (Lab): May I commend understand APR. my hon. Friend the Member for Walthamstow (Stella That brings me on to my next point, which is that we Creasy) for her tenacity in pursing this issue and say need transparency so that consumers can examine the that her speech was a tour de force? Equally, I commend clear costs of a loan. Let us have none of these different her for getting this issue discussed on Twitter, as this product fees or annual percentage rates, which people must be the first new clause on a Finance Bill to have do not understand; when people want to borrow X, generated this much interest on that site. 1279 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1280

[Jon Ashworth] Government have made in other areas, we have increased the amount of money we are using to fight illegal loan I wish to make only a few brief remarks, because a lot sharks? of what I wanted to say has been covered by my hon. Friend the Member for Darlington (Mrs Chapman), in Jon Ashworth: My hon. Friend the Member for particular, and by some Members on the Government Nottingham East (Chris Leslie) tells me that the Benches. Early on, I want to pick up on one point made Government have cut the financial inclusion grant. I by my hon. Friend the Member for Walthamstow in her always welcome action to tackle illegal loan sharking, speech and at business questions last week, which is the so I would be very disappointed if the money going into suggestion that some funny business is going on and those funds was cut. that the Government are deliberately delaying making a This is an important issue, which particularly affects decision to help the Deputy Prime Minister at the party my constituents. As my hon. Friend the Member for conference—[HON.MEMBERS: “Rubbish!] Some hon. Walthamstow said, it is not just the constituents we Members are shouting from a sedentary position, so I would traditionally think of as the most vulnerable in would be grateful if the Financial Secretary, who will, society who are being hurt. Increasingly, the money I presume, respond to the debate, could guarantee that advice centre I visited today is finding examples of the Deputy Prime Minister will not make an announcement people from lower and more middle income-backgrounds on this matter in his conference speech. That would getting themselves into trouble and falling prey to such help Opposition Members—[Interruption.] I invite the organisations. Financial Secretary to make a few remarks on that point in his closing speech. Alison Seabeck (Plymouth, Moor View) (Lab): Does There is some consensus on this issue on both sides my hon. Friend accept that that income group—some of the House. I was not a Member of Parliament when of whom claim housing benefit and will be hit by the it was debated in February, although I have read many housing benefit changes and will have to find a lot of of the speeches. Many Members, on both sides of the additional money to pay their rent out of their own House, take the issue very seriously—and rightly so. pockets—could well fall victim to both official and Before the general election campaign, the then Leader unofficial loan sharks simply to meet their rent? of the Opposition took it very seriously. When he was rebranding the Conservative party, he did not only hug Jon Ashworth: I know that my hon. Friend has a hoodies and huskies. The party launched a campaign good track record in raising such issues, particularly about resisting—I hope this is not unparliamentary those to do with homelessness, and she is right to bring language—your “inner tosser”, which encouraged people that matter to the attention of the House. not to fall into the trap of personal debt that we have I want to focus on the point made by my hon. Friend discussed. At the time, the current Prime Minister said the Member for Walthamstow about lower and more that—and I paraphrase—although the campaign was middle-income people being hit. Increasingly, such people provocative, we needed to do something about personal are turning up at the money advice centres in my debt. The Opposition agree. constituency in a way that they had not in recent years. Today I visited a money advice centre in my constituency That might reflect our economic climate, with inflation to talk about some of the issues faced by many of my running at twice the rate of earnings and with the cost constituents who are getting themselves into trouble. I of living, food and utilities putting a great strain on the was told stories about how Wonga and quickquid.com budgets of many people in my constituency. Those target many vulnerable people in my constituency.Members issues came up time and again in my by-election campaign might not be aware that my constituency contains some and the Asda income tracker, which my hon. Friend of the most deprived estates in the country and we have mentioned, shows that families are some £165 a month had many examples of such companies targeting people worse off than they were a few years ago. such as single mothers, as in the cases mentioned by my The final point raised with me today concerned credit hon. Friend the Member for Darlington, when they unions. Labour Members have always been huge supporters have no choice but to sign up to such deals. Such people of credit unions—the co-operative values on which they end up in great difficulty. are based are values that we share—and I concede that Another issue mentioned at the centre, although it Government Members support them, too. If we simply does not fall within the narrow confines of the new say, however, that credit unions can step up and fill the clause, was illegal loan sharking. The problem is that gap, we are somewhat mistaken. They do not have the many people who find themselves in deep trouble through capacity to compete with organisations such as wonga.com legal loan sharking feel that they have no alternative but and quickquid.com. I would welcome it if more resources to turn to illegal loan sharks. I hope we will be able to went into credit unions so that they could compete, but debate that in future. I was told many tragic stories realistically they cannot carry out the door-to-door about people who have fallen foul of illegal loan sharking. activity that wonga.com and so on can. Although we Such people might be in work—it is not always a matter are great supporters of credit unions, I do not think of gangs preying on vulnerable out-of-work people on they are the answer, although they are part of it. estates. One example involved somebody who took out In conclusion, I would welcome it if the Government a loan from an illegal loan shark for £7,000, which soon could give us some indication of what is happening with became £70,000. the review, if they will not support the new clause. We need some regulatory reform of the sector. People in my Lorely Burt: I agree with the hon. Gentleman about constituency, in particular, are being hit. The situation illegal loan sharking, which is a scourge of this country. is getting worse and unless the Government take action, Does he welcome the fact that despite the cuts the I am worried about the future. 1281 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1282

Andrew Percy: I was not sure when I came into the something on which my constituents rely heavily. I am debate whether I was going to speak—[Interruption.] pleased that the financial inclusion funding has been Well, I can never resist the temptation to hear the sound preserved for the year and that we seem to be moving of my own voice. I have found this an interesting and towards an alternative that will maintain face-to-face fascinating debate with some very good speeches from advice—that has certainly been hinted at, and I hope Members on both sides. Some speeches have been a that that happens—although I look forward to hearing little political at times and it is best that we brush over more. Indeed, I am talking to one of my councils in that, because the issue should not be political. The hon. north Lincolnshire about how we can better support Member for Walthamstow (Stella Creasy) is, I know, citizens advice bureaux, which my neighbour, the hon. passionate about this matter and I agreed entirely with Member for Scunthorpe (Nic Dakin), is a huge supporter a great deal of her speech. She has been in a Twitter of. conversation with a constituent of mine in Snaith. Very We have to look at all the issues in this debate sound people live in Snaith—very sound people, because together, although I have to say to the hon. Member for they re-elected their Conservative councillor with a Walthamstow that some of her speech got into the massively increased majority in May, but we will gloss politics of the issue. I understand that she feels passionately over that. about it, and she is quite right to criticise the Government The issue has sparked an interest across the whole if she feels that they have not responded quickly enough. country. The letters and tweets we are getting from our Also, if she feels that anything has been set up for party constituents reflect the fact that a lot of people are political reasons, she is right quite to highlight that too, interested in this matter. This has been a good debate because I would not want to be a part of that—I hope and the hon. Member for Darlington (Mrs Chapman) that that is not the agenda in this debate. However, as made a particularly good speech, I thought, which was Government Members have said, we are not talking very consensual. I look forward to hearing the hon. about a section of the high-cost credit market that Member for Makerfield (Yvonne Fovargue). I always suddenly appeared on 7 May last year; we are talking listen to her on such matters because of her vast experience. about something that has exploded over the past couple I know that my hon. Friend the Member for North of decades, and which no Government have dealt with Swindon (Justin Tomlinson) has a huge interest in the properly. Indeed, her Government could be held just as subject, as does my hon. Friend the Member for Chatham responsible for the current position, so let us move on and Aylesford (Tracey Crouch), who used to work with from the party politics of this debate. me at McDonald’s in Hull when I first started to get The hon. Lady put her points across passionately, but into debt. Although I have never personally had to she is asking Government Members to vote in support borrow from a high-cost credit company, I certainly of a new clause and against their own party. That is not understand having debts to the tune of tens of thousands something that bothers me—I have no desire ever to be of pounds. a Minister, and I will vote whichever way I think is best In my case, it was credit card debt, and I am not alone —but I would question whether some of those promoting in that. It started at university and I went down the line the new clause have the same record on voting against of paying off one credit card by transferring it to their own side when they feel strongly about an issue. another on 0% for a year or a number of months before Therefore, please let us not criticise Government Members conveniently forgetting that and maxing out the one who perhaps do not support the new clause this evening; that I had just cleared. I now pay about £600 a month to what is important is the message that goes out from all clear all my credit cards, which I have had to roll into a parts of the House. As the hon. Member for Scunthorpe loan since my election. I understand what debt is like said in an intervention, we must ensure that we retain and I know how once someone is on the conveyer belt, cross-party consensus on the issue. it is difficult to get off, and that is just with credit card debt. That conveyer belt moves faster for those on the Education is key to this debate. The all-party group high-cost credit side of things—I guess that is the only on financial education for young people, which the hon. difference. Member for Walthamstow and my hon. Friend the Member for North Swindon have a part in, is driving A lot of my constituents come to me with debt issues, this agenda forward. It is my privilege to be chairing which is why, following the lead of my hon. Friend the the cross-party inquiry—on which the hon. Member for Member for North Swindon, I am getting the staff in Darlington serves with distinction—into how we can my constituency office trained in the debt management get proper financial education on to the primary and side of things—not so that we can issue particular secondary school curricula. advice, but so that we can point people towards the most appropriate advice. We also need to look at regulation. Let me say to Ministers that, as other Government Members have said, regulation is not something that generally comes 6.30 pm naturally to me as a Conservative. I prefer to have as We cannot look at just one side of this debate, such as little regulation as possible; however, we are dealing regulation, education or the behaviour of people in the with some of our most vulnerable constituents. Any market; we have to look at them all together. That is Member who has had somebody come to their surgery why I am genuinely interested in the Government’s with such problems will know that it is not school response to the consumer credit review. I look forward teachers or local doctors who turn up; generally, it is to hearing what the Minister has to say. Access to vulnerable people from a particular socio-economic advice is one side of the issue, which is why I was group who are not very financially literate—although delighted to hear about the financial inclusion funding. plenty of educated people are not financially literate As the hon. Member for Makerfield will attest, I took either. Indeed, I can almost predict from where in my part in the debates on that at the time, because it is constituency people with such problems will come, because 1283 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1284 they will have been targeted, because they have not had look forward to the Minister’s response, and I genuinely access to proper advice or, as has been said, because hope that we have some action soon, in the interests of they have not had access to alternative sources of credit. all our constituents. It is therefore time that we looked at some form of regulation in this area. Indeed, the international experience Yvonne Fovargue: At any one time there are 5 million that the hon. Member for Walthamstow spoke of sounded to 7 million people in this country who are unbanked or very interesting. We looked at some examples in a who do not have a credit history. In the main, they are previous debate, and I note the example of Alabama in the people who turn to high-cost lenders, because they particular. It has come to something when we are do not have a credit history and they have nowhere else looking to Alabama for examples of regulation, given to go. Personal debt is rising, with 46% struggling until that the southern US states are not exactly known for pay day, up 8% this year. Again, they are the people their love of regulation. I look forward to the Minister’s turning to the payday lenders. response to this debate. I said that I would approach it I take issue with the claim that the rate has grown in with an open mind, and I take on board the excellent the last decade. When I started in the advice field speech that my hon. Friend the Member for Chatham 20 years ago, there was one high-cost lender, Provident, and Aylesford made about taxation measures. Personally, which targeted a specific market. Provident went round I cannot see how taxation measures would have a great the estates, using neighbours and talking to people. The impact, although I note that sub-paragraph (d) in new company would go in—here I also take issue with the clause 11 talks about looking at basically everything, so claim that people use the money on luxuries—and find it will be interesting to see how the Minister responds people who needed to replace their broken cooker. The to that. neighbour would come in, look at the cooker and say, “Oh yes, I can lend you that money.”When the loan was Mrs Chapman: I have found myself wondering who nearly repaid, Provident would come back and say, the hon. Gentleman disagrees with in this debate. “Tell you what, your sofa’s looking a bit shabby. It won’t cost you much more to get a sofa,” and people would get trapped in a cycle of debt. However, in one respect, Andrew Percy: I am feeling the love in the Chamber Provident was reasonably easy to deal with, because today, which is a good thing—there must have been there was one company with a specific target group. It something in the water in Goole this morning. However, was possible to go round and talk to individuals, target the serious point is that that hopefully proves that schools and visit the residents groups that the people although there are concerns, and although lots of Members concerned attended. It is much more difficult now. The who will vote differently from each other this evening explosion of advertising and the normalisation of the have made incredibly passionate speeches, they clearly process have made it so much more difficult to control all want to see the same thing. We might disagree on the market and tell people what the dangers are. how to get to there, but the fact that I am agreeing with so many people is perhaps a sign that there is consensus I had a constituent come to me in February, as soon on this issue, which is a good thing. as he realised my interest in the subject. He could not quite manage to the end of the month—I think his car tax was due—and he had taken out a payday loan. The Stella Creasy: At the risk of increasing the love in the company immediately took the payment and the interest Chamber, does the hon. Gentleman agree that the new out of his bank account the next month. He realised clause would put beyond doubt the question of that he could not get to the end of that month either, so regulation—along with other measures that could be he took out another payday loan. That carried on and taken to tackle the problems that we all agree exist—being in the end he had 10 payday loans and all his salary was looked at and acted on by the Government? At the being taken from his bank account. That was a man moment, we have no guarantee that that will happen in who was working. Such companies are supposed to the consumer credit review; rather, we have only vague check that people can afford to pay the money back and assertions that they are thinking about it. The review that they do not have other credit, but that did not proposed by new clause 11 would guarantee that that happen in this case. For such companies, self-regulation would happen, which is why we want action now. absolutely is not working. That company was not an illegal loan shark: it was a legal company and it did not Andrew Percy: Of course that is what we all want to threaten to break the man’s legs, but it left him in a cycle see, but we await the response of the Minister. At one of stress and depression that he found very hard to get point, some Opposition Members seemed to be saying out of. that the Government were going to announce something I am also concerned about the double whammy that at the Liberal Democrat conference, suggesting that it these companies are operating, as many of the companies would no doubt be a well attended—I will not be going that put people into debt are opening debt-management —and joyous occasion. Indeed, the hon. Member for arms to get people out of debt as well. When the Walthamstow seemed to suggest that the Government financial inclusion fund was finishing last year, those already had a solution that they were about to announce companies were circling like sharks. I cannot tell hon. in October, so we all look forward to hearing what they Members how many companies contacted me basically have to say. gloating and saying, “There will be no, or very limited, To end where I began, this is a hugely important issue free debt advice, so people will have to turn to us and for a lot of my constituents, as it is for constituents you will have to deal with us now.” up and down the country, and it is time that we did I welcome the Money Advice Service because any something about it. It is appalling that people end up on advice on budgeting is welcome, but that service does a conveyor belt and seem unable to get off it. I therefore not replace face-to-face debt advice. There is a need for 1285 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1286 that kind of service to be available—and more freely pair of trainers or some piece of equipment is broken, it available than it is now. People have what I call behind- is often a disaster and the money is needed right away. the-clock syndrome. They get into debt and cannot face That is the background to this issue. The social fund opening the letter about their debt so they put it behind does a good deal. [Interruption.] I think the hon. Member the clock. When they get the next letter, that also goes for Makerfield would acknowledge that 400,000 people behind the clock. I cannot tell hon. Members the number a year make more than three claims on the social fund, of people who used to come into the bureau with a so they are obviously finding it useful. It is important carrier bag whom I would look at and think, “They are that a credit facility is available, and it is excellent that in debt”. They would have a carrier bag full of letters in Northern Ireland mutuals and credit unions are so that they could not face opening. People are not going well established. We need to do more in this country to to deal with a telephone or online service if they cannot develop that idea; otherwise, we will be in the hands of even open a letter. There is a need for free, impartial, the high-cost operators we have been hearing about. face-to-face debt advice and for regulation of debt management companies. Self-regulation is not working. Yvonne Fovargue: Does the hon. Gentleman agree It did not work in America, and when America regulated, that many people do not realise that some credit unions those companies started coming over here because they offer loans to people who have not saved with them? like what they see. The growth fund has been very useful in that regard, but many credit unions do not have access to the growth Damian Hinds: Does the hon. Lady agree that while fund with which people have to save before they can get the availability and accessibility of free debt advice are a loan. That makes the situation impossible for many people. important, visibility is also important? When people do get around to opening letters and starting to seek help, Oliver Heald: The hon. Lady makes an important if they search on internet search engines for debt advice, point, which I imagine will be considered by the consumer Citizens Advice and the Consumer Credit Counselling credit review. I am a member of a credit union, and I Service ought to come at the top of the list even though think that all MPs should be because it is a good way of they cannot afford to compete with debt management illustrating— companies on pay-per-click rates. Should we not exhort Google and others to make sure that those services are Chris Ruane (Vale of Clwyd) (Lab): I’m in two. duly highlighted?

Yvonne Fovargue: I think that is an excellent suggestion, Oliver Heald: I am a member of one, and membership but there also have to be appointments available when is a good way of trying to convey knowledge about people need them. It is no use searching for citizens credit unions. I pay tribute to the all-party group on advice bureaux if appointments are not available for six credit unions, chaired by my hon. Friend the Member to eight weeks because funding to provide the very for East Hampshire (Damian Hinds). We need to do specialist advice that is needed has dried up. We have to more to increase the amount of credit that is available make sure, first, that people get information about on reasonable terms. where they can go, and, secondly, that appointments are I am a member of the all-party group on financial available. education for young people, chaired by my hon. Friend Regulation of debt management companies is needed. the Member for North Swindon (Justin Tomlinson). They come at the top of Google and other search engines The move to teach children the basics of budgeting on the basis that they will be going out of business in from quite an early age is long overdue. In households two years’ time anyway, so they might as well make as that are chaotic and at the bottom of the economic pile much money as possible by charging up-front fees and there is very little understanding of basic budgeting, charging as much as they can. If they do go bust, as two which we must resolve. have recently, it does not really matter to them. I had a Finally, I want to support the point about advice. In client come to me who had been paying £40 a month to the past, I have given free legal advice and dealt with a debt management agency for 18 months, at the end of welfare rights. I have experience of the people the hon. which he owed his creditors more than when he had Member for Makerfield described, who come to see us started. Those companies need to be regulated. carrying bags of documents from companies and unpaid The new clause is one of the range of measures we invoices. The people who sit down with them, go through need. We have to keep this issue high on the agenda everything carefully and present their case to creditors because the longer we leave it, the more people will go do a marvellous job. The other day, I went to the Shelter to high-cost lenders and debt management companies facility in Hatfield, which offers debt advice in that part and the more people will get themselves into a spiral of of Hertfordshire. Someone there had been working on unaffordable debt. We have to act now. It is no use debt advice for 29 years and she had lots of letters on leaving this for another five or six months—how many the wall from people saying how grateful they were to thousands more will have got themselves into debt in her for trying to sort things out for them. We must that time? certainly support debt advice, but we need to do other things in relation to education and credit unions. I 6.45 pm would like more regulation in this field and, possibly, acap. Oliver Heald: In the circumstances, I shall not trespass on the House’s good will for too long. Sheila Gilmore: Unfortunately, it seems that debates I want to start where the hon. Member for Makerfield on this subject are beginning to follow a pattern: we all (Yvonne Fovargue) did by making the point that if a agree that high-cost lending is terrible and is a scourge child of people on low incomes or on benefits needs a of many of our communities and that we would like 1287 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1288

[Sheila Gilmore] from Castle credit union, who help to keep it going, were there for exactly the reasons the hon. Gentleman something to be done about it, but the problem arises in suggests. However, if, unlike credit unions, high-cost agreeing to act. In February’s Back-Bench debate, the lenders have a high street presence—extremely attractive, teeth were drawn from the motion proposed by my hon. brightly lit and hardly missable—it is much easier for Friend the Member for Walthamstow (Stella Creasy). people to find them. The amendment agreed by the majority of Members of Regrettably, only2%ofpeople in the UK are members the two Government parties removed any impetus for of a credit union. We can all work harder to increase immediate action or any agreement that the regulator that number, but one thing that would clearly help should consider doing something. I see exactly the same would be real resources to build the movement. Experience pattern beginning to emerge. We are told that we all in my city is that real resources, far from being put in, agree that high-cost lending is bad, but when Opposition are declining, and there are even fewer members. Despite Members want something to be done about it we are the efforts of the volunteers who man stalls at local accused of breaching the consensus. In the words of the fairs and festivals, credit unions are not providing the hon. Member for Brigg and Goole (Andrew Percy), we competition we want with high-cost lenders. I should are the ones who are being political. dearly like people to use credit unions instead of those institutions. Andrew Percy: That is not quite what I said. I said I understand that this is politics, but when Opposition that if we were to be political, we could bandy about the Members make proposals we meet the accusation that suggestion that all Governments had done nothing. I Labour should have done things over the past 13 years, argued that we should await the Government’s response and it is suggested that the fact we did not debars our to the consumer credit review. We can condemn them if making proposals and expecting them to be listened they do not do what we want, but until then we should to. I am sure that if my hon. Friend the Member for at least try to pretend to be on the same side. Walthamstow had been a Member during our period in government, she would have been harrying Ministers in Sheila Gilmore: I am afraid I do not share the hon. exactly the same way as she has harried the Government Gentleman’s confidence that the review will indeed cover over the past year. She would not have been afraid to the issues, although something might be pending. The speak. hon. Member for Solihull (Lorely Burt) is no longer in We should not accept too lightly the suggestion that the Chamber, but I was interested to hear her say that the previous Government did not look seriously at “we” would all be happy to see the regulations “we” financial inclusion. The present Government say that would be bringing forward. I do not know who “we”were, they are interested in it too, but they do not put in the but it suggests that the Government’s plans are quite well means to make it happen. It is not good enough to say advanced and that the hon. Lady is privy to their thinking, they are interested. In my Westminster Hall debate, I as we are not. At the end of the debate, I hope we shall referred to our manifesto proposal to oblige banks to hear what the regulations are and what will happen. provide basic bank accounts. The Minister’s response Warm words are not enough. Some of the organisations was, “Oh, we don’t really want that sort of regulation. involved have tremendous resources behind them, yet We want it to be voluntary and we want to work with there is so little control of their operations. Their services banks.” That is all too often the Government’s response. can seem attractive because they “solve”people’s immediate They say they want the ends, but they are not prepared problems. Regrettably, at this stage credit unions cannot to put in the means. compete. Castle credit union in my constituency had to The previous Government did a lot of work on give up its shop-front premises in the main street because financial inclusion, but no one thing is enough: credit it did not have the resources to continue to pay the rent. unions will not do it; basic bank accounts will not do it; It has moved into an office in a community building and taking action against high-cost lenders alone will and is still functioning, but it has much less presence not do it. We need a range of measures. than it would have if it were still on the high street, where people would be able see it from the bus and pop Some of the steps that would help have been positively in when they were doing their shopping. Now that it is stopped by the Government. The growth fund, which tucked away in the community office, people might not helped to boost credit unions and other community-based know where it is. The situation is not helped by the fact financial institutions, has not been renewed or extended. that the local community newspaper, which used to advertise such facilities, has had to shut up shop owing Damian Hinds: Is the hon. Lady aware of the to cuts in its funding. That will make it even harder for modernisation fund of up to £73 million? people to find the credit union. Sheila Gilmore: I might be wrong, but I understand Stephen Williams: I agree that sometimes it might be that the fund is not a substitute for the money that was hard to find a credit union, although the one in my available through the growth fund. When it was introduced, constituency is based on Cheltenham road, a main it was hoped that banks would lend to community-based road. Perhaps credit unions need to go out and find lending organisations; they have not done so, yet high-cost customers; for instance, Bristol credit union had a stall lenders can get finance to expand their businesses to at St Paul’s carnival this weekend. make them attractive.

Sheila Gilmore: Indeed. On Saturday, I was at just Stella Creasy: Does my hon. Friend agree that it is a such a festival in my constituency. It was a beautiful cause of concern that the Wellcome Trust, which is day—the first sunny Saturday for some time. Volunteers supposed to advance charitable endeavours, has lent 1289 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1290

£73 million to Wonga so that it can expand its operations I have a particular reason for wanting to see a cap on in the UK? Such companies can easily access credit; the cost of credit. I come from a family of eight kids, indeed, that sum is the entire amount left from the and unfortunately my beloved mum was often a victim growth fund for credit unions across the UK. of door-to-door credit. She took it not to pay for luxury goods, but so that she could afford to buy us things like Sheila Gilmore: I thank my hon. Friend for that school blazers and winter coats. She would get a Provident helpful intervention. If we are to put the money where or Sterlers cheque and pay it back on the “never-never”, our mouth is, it is extremely important that we do not as it was known colloquially. This meant paying back just sit in the House constantly agreeing about how bad hundreds of per cent. of the original loan in interest something is; we need to take action. On that basis, I charges, but like millions of others she did not really urge Members, and perhaps even the Government, to understand the rudimentary economics and looked only accept the new clause. at how much she could afford to pay back each and every week, rather than the interest rate or the cumulative Steve Rotheram (Liverpool, Walton) (Lab): I thank payment total. Unfortunately, she was not unique in the House for its indulgence. I was at a meeting of the this respect and, even four decades on, far too many Select Committee on Communities and Local Government people are still caught in this poverty trap. so I missed the beginning of the debate. I shall try to be The high cost of credit has not improved much for as brief as possible, because I am sure that Government families at the wrong end of the socio-economic ladder. Members will have heard the compelling case made by Home credit lenders often charge astronomical annual my hon. Friend the Member for Walthamstow (Stella percentage rates of up to 3,000% or 4,000%. I had to Creasy) and my colleagues and will have been won over check those figures, because the current bank base rate by the powerful arguments they articulated. is only 0.5%, but I found that interest charges of thousands Those outside the Westminster bubble sometimes of per cent. are not uncommon. In fact, the UK’s question what we as Members of Parliament do in this poorest pay the highest price for credit in Europe. This place. I am sure that there are moments when even we is an obscene state of affairs and the Government must wonder what it is all about and why we parliamentarians act. Before we hear the same old mantra from Government put ourselves through the rigorous demands of elected Members, I admit that we in the Opposition did not do office. I realise just how privileged I am to be here and enough to tackle the issue head-on when we were in to represent not only the people of my community, for power. However, as my hon. Friend the Member for whom I have the highest regard, but a great city such as Makerfield (Yvonne Fovargue) rightly pointed out, this Liverpool, and then I have the opportunity, such as the is an escalating problem that needs to be tackled one put forward tonight, to change the lives of ordinary immediately. people and realise that my time here is anything but I urge Members on both sides of the House to wasted. support what my hon. Friend the Member for Walthamstow is trying to do to stop this most socially iniquitous of practices. Even Boris supposedly supports measures to 7pm protect the financially vulnerable, and if he can do it, High-cost credit is exactly the sort of issue that I got there should be nothing stopping Government Members involved in politics for in the first place. The issue is doing the same. totemic, as it represents the sort of fight that I hear Members on both sides of the House have highlighted politicians talk about all the time in this House. The the problem and provided examples of the unfairness, word “fairness” is bandied around the Chamber like but it is worth reiterating that credit lenders can charge, confetti. Even the Prime Minister claims that coalition in real terms, £82 in interest and collection charges for policies are about fairness. Although I point to the every £100 lent. A gentleman came to my constituency juxtaposition between the reality and the rhetoric, today advice surgery only last Friday and told me that his wife is an opportunity for Government Members to put was suicidal because of the level of debt that they had their money where their mouth is, because this really is got themselves into. I highlighted last week in a Westminster about fairness. Hall debate the fact that the banks are failing to meet the Project Merlin targets for lending and the adverse Oliver Heald: There is of course wide acceptance effect that this is having on the construction sector. The across the House that some regulation is needed in this banks are also failing ordinary families as they are refused area, but why should it be about taxation? A Finance credit from high street lenders, which often results in Bill obviously provides an opportunity to raise the them taking the only option left: high-cost lending issue, but does the hon. Gentleman not agree that there through payday and doorstep loans and hire purchase. is a risk—[Interruption.] He should at least let me ask The rising cost of credit traps those least able to cope the question before learning the answer from the hon. with the pressures of economic stagnation as they struggle Member for Walthamstow (Stella Creasy). Does he not to make ends meet, and believe me, the VAT increase agree that there is a risk, through the law of unintended has not helped those families. Some payday lenders are consequences, of high-cost companies simply passing rubbing their hands at the expansion in their “target on the costs of higher taxation to the poor people in audience”, as one put it, 70% of whom have a household Liverpool he is worried about? income below £25,000. I know that we will never completely stop this most lucrative of immoral trades, but we can Steve Rotheram: I always listen to my hon. Friend the certainly put a cap on lending to regulate the total Member for Walthamstow, as she is much more of an amount that can be charged for supplying credit. expert on these matters than I am. I hope that the hon. This is one of the occasions on which I do not Gentleman’s intervention is not indicative of the thinking understand how a proposal could not receive unequivocal of all Government Members. support from both sides of the House. I have listened to 1291 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1292

[Steve Rotheram] be careful about describing high-cost credit providers as legal loan sharks. We all recognise from our own some of arguments against taking action, such as the communities that real loan sharks are far worse, resorting suggestion that it might make things worse or restrict to violence and intimidation to recover their debts. credit to those who need it, but that is an absolute High-cost lenders are licensed and operate within a cop-out with no basis in evidence. Therefore, I ask regulatory framework, which provides some recourse Government Members to support the new clause to when things go wrong. ensure that consumers are protected and simply pay a We should be clear that action has been taken over fair price for credit. the past year to improve consumer protection in this area. First, under the consumer credit directive, which The Financial Secretary to the Treasury (Mr Mark came into force earlier this year, consumers now have Hoban): I think that the debate has demonstrated the a right to withdraw from any credit agreement within potential for cross-party support for the analysis 14 days. If they do so, they have to pay back only the underpinning the discussion we have had this afternoon, money lent and the interest accrued over that time. but I gently point out to Opposition Members who seek Secondly, consumers have a right to repay a loan early to turn this into a partisan political issue that their at any time, in part or in full. Thirdly, lenders now have Government had the opportunity over 13 years to tackle to provide information in a standard format so that this. In fact, we had a debate on it while the Financial borrowers can easily compare the costs of different Services Act 2010 was going through Parliament, not loans. Improving the transparency of information will long before the general election, during which my opposite help consumers. Fourthly, lenders must conduct a full number at the time ruled out acting on interest rate caps credit assessment before advancing any loan. Lenders because of the impact of depriving the most vulnerable will also have to explain the key features of the credit of credit services. It is not a new issue, or one that is agreement. fresh to this Parliament. Ministers in the previous In addition, the Office of Fair Trading has recently Government were opposed to the idea of caps because, published its guidance on irresponsible lending, which as the hon. Member for Liverpool, Walton (Steve clearly sets out that deceitful, oppressive or otherwise Rotheram) indicated, it could restrict the supply of credit, unfair lending practices are not acceptable. The OFT, forcing those who need it into the hands of illegal which is responsible for the regulation of credit—something moneylenders, an outcome that Members on both sides that whoever tabled the new clause seemed to forget—has would not want to see. the power to remove the licence of those who breach the Let us be clear that credit can be a good and positive irresponsible lending guidance. force that enables people to meet needs when there is a Much good work is going on, including the excellent sudden shock, such as an unexpected expense or a cut in work of credit unions, which many of my hon. Friends income, but it must be used sensibly and sustainably. have mentioned. It is a shame that the hon. Member for When people decide to borrow, they must be mindful of Edinburgh East (Sheila Gilmore) is not in her place. My what that means for them and realistic about their hon. Friend the Member for East Hampshire (Damian ability to repay the loan. That is true whether the loan Hinds) is right that there is £73 million to help to is over 10 years, five years or a matter of days, as is the expand and modernise credit unions. The money that case with some instant or payday loans. However, all the previous Government put into credit unions is lenders have a responsibility in this regard. Lending diminishing, because the money that credit unions were more than borrowers can afford to repay does not able to earn on the debt was lower than the default rate benefit anyone. Under the recently introduced consumer on the loans given. I therefore welcome the money that credit directive, all lenders, including high-cost credit the Department for Work and Pensions has found to lenders, must ensure that when they decide to advance a strengthen credit unions. loan they do so after making a thorough assessment of As a number of hon. Members have said, we are the lender’s ability to repay. reviewing the wider consumer credit landscape. At the We know that consumer debt grew significantly under end of last year, the Treasury and the Department for the previous Government, more than doubling from Business, Innovation and Skills published a joint call £620 billion in 2000 to more than £1.4 trillion by May for evidence on the consumer credit and personal insolvency 2010. Some of this debt is now being repaid as consumers review, which covers all aspects of the consumer credit begin to come to terms with their borrowing, with the life cycle, including what happens when things go wrong. amount of unsecured debt reducing in the past two This is an opportunity to ensure that the regulatory years. Although much of this debt will be repaid without framework is fair to consumers and the industry. Part of any problems, some borrowers get into difficulty. Lenders that review focuses on the high-cost credit market. have a responsibility to help customers and treat them Following an OFT review that took place under the fairly when they get into difficulties with loans, not previous Government, we have asked for evidence on push them further into debt. Continuing to add excessive five of its recommendations. arrears and default charges is a lose-lose situation; the debt increases out of all proportion to the amount Stella Creasy: Will the Minister give way? borrowed, the lender is less likely to be repaid and the borrower may have difficulty borrowing again. Lenders Mr Hoban: Let me just finish the recommendations, should work with borrowers, not against them. and then I will give way. We should all be concerned about people borrowing The first recommendation was to provide information at high rates of interest. However, the high-cost credit on high-cost credit loans to consumers through price market, whatever its faults, provides a service for those comparison websites. The second was to introduce a who cannot get credit from any other source. We should “wealth warning” on high-cost credit products. The 1293 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1294 third was to collect essential information on the high-cost My concern is that there is a degree of price elasticity credit sector so that the OFT can track developments. for those who use high-cost credit. Such people pay for The fourth was for the Government and industry to high rates on their borrowing. If we increased taxes on develop a code of practice. The final recommendation high-cost credit, the costs would be borne by the borrowers was to work with credit reference agencies to explore through higher charges and the benefit would be gained ways in which payday lenders could provide suitable by the Exchequer. That would run counter to the interests information about the payment performance of their of those who use high-cost credit. customers. That would help those who use high-cost credit to build up a credit history that they can use to Chris Leslie rose— access more mainstream lenders. Stella Creasy: I wonder whether the Minister can Stella Creasy rose— deal with an anomaly that has driven the new clause. I received a letter on 25 May, which set out that the Mr Hoban: This is an embarrassment of riches. I will high-cost credit market was not specifically included go for the hon. Gentleman, who I think is in charge of in the consumer credit review. Is the Treasury taking this new clause. the lead on this and does BIS need to follow? Will the Minister clarify this matter, because the letter from the Under-Secretary of State for Business, Innovation and Chris Leslie: If taxes and levies are invariably passed Skills, the hon. Member for Kingston and Surbiton on to the consumer, will the Minister elaborate on the (Mr Davey) said that BIS was not looking at this area banking levy? Presumably he feels that that, too, will be per se? passed straight through to the consumer. Are there not other tax measures that disincentivise or demerit activities? 7.15 pm Mr Hoban: Her Majesty’s Treasury and BIS have Mr Hoban: There are a number of taxes that joint responsibility for this matter, which is why we disincentivise certain activities. We could be here all day issued a joint call for evidence. As I said, the consultation identifying them. The challenge is to what extent an includes gathering further thoughts on the five areas increase in tax is passed on to the consumer and to what from the OFT review. extent it is borne by the shareholders. There is a lot of The Government will respond to the review in the evidence that in areas where borrowers are relatively coming weeks and we are still assessing the evidence insensitive to price, such as payday lending, the additional that has been provided. I can tell the House that a costs of tax measures would be passed on to the consumer. number of responses have been received on introducing I am yet to be persuaded that that would not be the a cap on interest rates, including from Members of this case. It might help if the Opposition had some concrete House. This is clearly an area that we will consider proposals on tax that could be assessed, but so far they properly and carefully. We have been clear that we are have not. Perhaps the hon. Member for Walthamstow not afraid to take action where there is evidence of has a proposal. consumer detriment. I turn to the new clause that was tabled by the Stella Creasy: I am saddened that the Minister did shadow Chancellor and a number of hon. Members. It not feel that any proposals were made in the debate. I asks the Government to review the impact of all taxation thought I had caught his eye when I talked about measures on lenders who are seen to engage in high-cost whetting his appetite with the excess profits that companies lending. I appreciate that this may be a probing new make. I made a specific proposal on that, which I will clause. I pointed out in Committee that the new clause repeat for his benefit. Provident has taken £675 million as then drafted would lead to the perverse outcome of in excess profit out of low-income communities since forcing up the cost of credit. The new clause before us 2005-06, according to the Competition Commission’s has similar defects and unintended consequences. investigations. Perhaps he could look at taxing the excess profits that these companies are making. Does he I will point out the defects first. It is the Office of Fair agree with that proposal? Trading that regulates consumer credit, not the FSA. I would have thought that a Member who is so proud of her reputation for doing the homework would have got Mr Hoban: I listened carefully to that point, and the that right. It is well known that the OFT regulates hon. Lady again demonstrated the problem that she is high-cost credit. long on analysis, but short on solutions. She talked Secondly, unlike the new clause tabled in Committee, about excess profits, but of course there is a range of which focused on the bank levy, this new clause looks at solutions for that, one of which is to increase competition tax measures that are applicable to high-cost credit in the market to force prices down. I am not sure that a lenders. It would require each tax measure in the Budget windfall tax, which I think is what she is proposing, to be assessed to see whether it is applicable. I listened would have the impact that she expects. carefully to the speeches of the hon. Members for Nottingham East and for Walthamstow—she is probably Mark Durkan: The Financial Secretary suggests that tweeting about this as we speak—to find out what tax taxation would inevitably be passed on to consumers, measures they had in mind. I did not hear a single tax but Ministers insisted not so long ago that the North proposal being put forward by Opposition Members. sea tax would not be passed on to consumers. The [Interruption.] The hon. Gentleman says that we should Chancellor himself was very clear that it would not, and propose the measures. I have been listening carefully for that he had means and measures to ensure that it could any sensible tax proposals from Opposition Members, not be. Many Government Members said that they were but I am yet to hear one. happy that consumers would not pay the VAT increase, 1295 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1296

[Mark Durkan] education for young people, which my hon. Friend the Member for North Swindon (Justin Tomlinson) and his because hard-pressed businesses would just have to all-party group are pursuing vigorously. Are those not absorb it. Why are the Government protecting the predatory two positive things that the House can get behind? credit sector? Mr Hoban: Yes, my hon. Friend is absolutely right. Mr Hoban: The hon. Gentleman needs to look carefully The provision of better education, information and at the impact of tax in different sectors. Just because guidance to help people manage their money is extremely one rule applies to one sector does not mean that it valuable. That is why we have been very supportive of applies to others. We know that there is real concern, the Money Advice Service in its work to help improve for example, that if we forced excise duty up too high, financial capability and capacity. people would resort to smuggling to evade it. The impact varies from tax to tax and from area to area, and we Sustainable solutions to the issues raised by the need to consider which measures will be effective. Opposition are not simple or obvious. As my hon. Friend the Member for North Swindon (Justin Tomlinson) There are broader concerns about how the Opposition said, an individual making the minimum repayment on want to use tax. As I said, tax is used to change their credit card could be subject to a higher total cost behaviour from time to time, but it is a blunt instrument, of credit than someone using payday lenders. The vast and if it is not properly thought through it can lead to majority of people who borrow from payday lenders perverse outcomes. An increased rate of tax on lenders and then re-borrow pay off the amount that they borrowed would not have any obviously positive impact on how by the third time. That shows that careful and considered consumers are treated. Studies from other areas show thought needs to be given to the impact on consumers that lenders will find ways to circumnavigate regulations of a cap on the total cost of credit, and how it would be and pass costs on to borrowers. A different tax rate for implemented in practice. The majority of available research those businesses would be detrimental to consumers focuses on interest rate restrictions rather than such a and would raise the cost of providing credit to those cap, but some of the same challenges apply. who may be unable to access mainstream credit. We need to gather evidence before we introduce new Members have a responsibility to take seriously the rules, or else risk unintended consequences. That was potential for such measures to drive lending underground. why we launched the consumer credit and personal I am sure that no one in the House would like to see a insolvency review, and we are considering carefully the rise in illegal loan sharking, which can so devastate evidence that has been provided. The Government will lives. The risks to individuals’ financial and personal announce the next stage shortly, and are committed well-being would be increased by loan sharks, who do to taking action when we can be sure that it will be not follow regulations or take legal action when debts effective. The Under-Secretary of State for Business, remain unpaid. They use whatever means they can to Innovation and Skills, my hon. Friend the Member for recover their money, often forcing borrowers into more Kingston and Surbiton (Mr Davey), and I will continue debt, or much worse. The provision of short-term credit to engage in the matter, along with the hon. Member for can prevent financial exclusion, and it has allowed more Walthamstow. However, I am afraid the new clause is consumers to access credit in a regulated market. not the right way to take things forward. It is flawed in A number of comments have been made about an both detail and effect. We need sensible, well-thought- interest rate cap. There were three separate reviews through interventions to improve the functioning of under the previous Administration that considered, among high-cost credit markets and get better outcomes for other things, price controls in the high-cost credit market consumers. The new clause would not achieve that, and in the UK. They all came to a similar conclusion—that I ask the Opposition to withdraw it. introducing price controls may lead to unintended consequences that would not be beneficial to consumers. I know that it cannot be easy for the Opposition to The OFT review found that work with the Government on this issue and appear to concede on the new clause. It could seem like a climbdown “introducing price controls would not be an appropriate solution for them to accept that more work is needed before to the particular concerns we have identified in this market”, action is taken, but that is the sensible, responsible and that approach. “developing a system to enforce and monitor price controls or interest rate caps in the UK would be complex, expensive and difficult to administer”. Chris Leslie: I am sorry that the Financial Secretary has taken that attitude to the new clause, which is pretty In Committee, the hon. Member for Walthamstow innocuous in calling for a review. We have not put mentioned a recent European Commission study published specific proposals in it, because we thought that in the at the start of this year, but it found that restrictions on spirit of cross-party working it would be useful to set up interest rates could deny people access to small amounts provisions to allow the Treasury and the OFT, working of credit, do not reduce overall average interest rates together in harmony, to work through the options and and lead to increased fees and charges being imposed by possible policy devices. Asking for a review on an lenders. The idea of a cap on the total cost of credit extremely serious issue such as this is a bit like motherhood sounds appealing at first, but it would have its consequences. and apple pie; it really should not be objected to. Oliver Heald: Does my hon. Friend agree that two initiatives that were described earlier are valuable? One Tracey Crouch rose— is credit unions—my hon. Friend the Member for East Hampshire (Damian Hinds) chairs the all-party group Chris Leslie: I am sure the hon. Lady will not object that is promoting their work—and the other is financial to a review. 1297 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1298

Tracey Crouch: Will the hon. Gentleman acknowledge Question put, That the clause be read a Second time. that a review is already under way, and that all these The House divided: Ayes 228, Noes 273. issues are being considered as we speak? The new clause would serve only to delay the outcome of that review. Division No. 312] [7.31 pm

Chris Leslie: I must correct the hon. Lady. I know AYES that there is a review of sorts going on, but it relates to Abbott, Ms Diane Doran, Mr Frank credit card lending and high bank charges on lending. Abrahams, Debbie Doyle, Gemma The letter that my hon. Friend the Member for Ainsworth, rh Mr Bob Dromey, Jack Walthamstow (Stella Creasy) received in May from the Alexander, rh Mr Douglas Dugher, Michael Under-Secretary said that the high-cost credit market Alexander, Heidi Durkan, Mark Ali, Rushanara Eagle, Ms Angela “was not specifically included in the call for evidence” Allen, Mr Graham Eagle, Maria for the current review. That was what the letter of Ashworth, Jon Edwards, Jonathan 25 May said—from the same Minister, incidentally, Austin, Ian Efford, Clive who refused to meet my hon. Friend. Bailey, Mr Adrian Elliott, Julie The Financial Secretary is far too relaxed about this Bain, Mr William Engel, Natascha Balls, rh Ed Esterson, Bill issue, and the Government are not exercised enough Banks, Gordon Farrelly, Paul about it. Barron, rh Mr Kevin Field, rh Mr Frank Beckett, rh Margaret Fitzpatrick, Jim Andrew Percy rose— Begg, Dame Anne Flello, Robert Bell, Sir Stuart Flint, rh Caroline Chris Leslie: Members of all parties, including the Benn, rh Hilary Flynn, Paul hon. Gentleman, to whom I may give way in a moment, Benton, Mr Joe Fovargue, Yvonne have made the point that there is great concern among Berger, Luciana Francis, Dr Hywel our constituents in our surgeries about the real suffering Betts, Mr Clive Gapes, Mike Blears, rh Hazel Gardiner, Barry and punitive charges that they sometimes face. The Blenkinsop, Tom Gilmore, Sheila organisations in question admittedly engage in legal Blunkett, rh Mr David Glass, Pat lending, but their activity feels immoral to many of us. Bradshaw, rh Mr Ben Glindon, Mrs Mary My hon. Friend the Member for Makerfield (Yvonne Brennan, Kevin Godsiff, Mr Roger Fovargue) said that help from the financial inclusion Brown, rh Mr Gordon Goggins, rh Paul fund ought to be there for our constituents. The Minister Brown, Lyn Goodman, Helen tried to explain that that fund will remain for another Brown, rh Mr Nicholas Greatrex, Tom nine months, but as my hon. Friend said, it will end, Brown, Mr Russell Green, Kate and for those who struggle even to open the envelopes Bryant, Chris Greenwood, Lilian Buck, Ms Karen Griffith, Nia containing the bills as they stack up, there is no substitute Burden, Richard Gwynne, Andrew for such face-to-face advice. The Government need to Burnham, rh Andy Hain, rh Mr Peter do better to ensure that face-to-face advice services Byrne, rh Mr Liam Hamilton, Mr David remain and do not fall away when the cuts to them are Campbell, Mr Alan Hamilton, Fabian compounded by local authority cuts. Campbell, Mr Ronnie Hanson, rh Mr David Caton, Martin Harman, rh Ms Harriet Chapman, Mrs Jenny Healey, rh John 7.30 pm Clark, Katy Hendrick, Mark The Minister said, “Oh well, the previous Administration Clarke, rh Mr Tom Hepburn, Mr Stephen ruled out interest rate caps,” and castigated them for Clwyd, rh Ann Heyes, David that. The point is that we are talking not about one Coaker, Vernon Hillier, Meg route or policy solution today. We need a thorough Coffey, Ann Hilling, Julie review that deals specifically with high-cost credit markets. Connarty, Michael Hodge, rh Margaret The current joint OFT and Treasury review does not do Cooper, Rosie Hodgson, Mrs Sharon that. His reasons for resisting the new clause are the Cooper, rh Yvette Hopkins, Kelvin typical civil service ones—pointing out that the proposal Corbyn, Jeremy Howarth, rh Mr George Crausby, Mr David Irranca-Davies, Huw refers to the Financial Services Authority rather than to Creagh, Mary Jackson, Glenda the OFT is pretty pedantic. He also said that the proposal Creasy, Stella James, Mrs Siân C. does not list specific policy elements. He rules out tax as Cruddas, Jon Jamieson, Cathy a lever, but I do not say that a tax measure is absolutely Cryer, John Jarvis, Dan necessary in this case; I am saying that it could be. We Cunningham, Alex Johnson, rh Alan want him to lead a review to find out. Cunningham, Mr Jim Johnson, Diana The Minister’s complacency is not good enough. Cunningham, Tony Jones, Graham Vulnerable people in this society are suffering because Curran, Margaret Jones, Helen of the high punitive charges that they unfairly face. Dakin, Nic Jones, Mr Kevan Danczuk, Simon Jones, Susan Elan Some of the very poorest in our society are suffering. Darling, rh Mr Alistair Joyce, Eric We need action now, and we have tried our best to offer Davidson, Mr Ian Kaufman, rh Sir Gerald the Minister a device that would allow him to get on Davies, Geraint Keeley, Barbara with reviewing the levers that could make a difference. De Piero, Gloria Kendall, Liz He refuses to do that and throws the proposal back in Denham, rh Mr John Khan, rh Sadiq our face. For that reason, surely, we ought to press the Docherty, Thomas Lammy, rh Mr David new clause to a Division. Donohoe, Mr Brian H. Lavery, Ian 1299 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1300

Lazarowicz, Mark Riordan, Mrs Linda Bruce, rh Malcolm Harris, Rebecca Leslie, Chris Robinson, Mr Geoffrey Buckland, Mr Robert Hart, Simon Lewis, Mr Ivan Rotheram, Steve Burley, Mr Aidan Haselhurst, rh Sir Alan Lloyd, Tony Roy, Mr Frank Burns, rh Mr Simon Hayes, Mr John Llwyd, rh Mr Elfyn Roy, Lindsay Burrowes, Mr David Heald, Oliver Love, Mr Andrew Ruane, Chris Burt, Lorely Heath, Mr David Lucas, Caroline Sanders, Mr Adrian Byles, Dan Heaton-Harris, Chris Lucas, Ian Sarwar, Anas Cable, rh Vince Hemming, John MacNeil, Mr Angus Brendan Seabeck, Alison Cairns, Alun Henderson, Gordon Mactaggart, Fiona Sharma, Mr Virendra Campbell, rh Sir Menzies Hendry, Charles Mahmood, Shabana Sheridan, Jim Carmichael, rh Mr Alistair Hinds, Damian Marsden, Mr Gordon Shuker, Gavin Carmichael, Neil Hoban, Mr Mark McCabe, Steve Simpson, David Carswell, Mr Douglas Hollingbery, George McCann, Mr Michael Skinner, Mr Dennis Cash, Mr William Hollobone, Mr Philip McCarthy, Kerry Slaughter, Mr Andy Chishti, Rehman Holloway, Mr Adam McClymont, Gregg Smith, rh Mr Andrew Clappison, Mr James Hopkins, Kris McDonnell, John Smith, Angela Clark, rh Greg Horwood, Martin McFadden, rh Mr Pat Smith, Owen Clarke, rh Mr Kenneth Howell, John McGovern, Alison Spellar, rh Mr John Clifton-Brown, Geoffrey Hughes, rh Simon McGovern, Jim Straw, rh Mr Jack Coffey, Dr Thérèse Huhne, rh Chris McGuire, rh Mrs Anne Stringer, Graham Collins, Damian Huppert, Dr Julian McKechin, Ann Stuart, Ms Gisela Colvile, Oliver Hurd, Mr Nick McKinnell, Catherine Sutcliffe, Mr Gerry Cox, Mr Geoffrey James, Margot Crabb, Stephen Javid, Sajid Meacher, rh Mr Michael Thomas, Mr Gareth Meale, Sir Alan Crockart, Mike Jenkin, Mr Bernard Thornberry, Emily Mearns, Ian Crouch, Tracey Johnson, Gareth Timms, rh Stephen Miliband, rh David Davies, David T. C. Johnson, Joseph Trickett, Jon Miller, Andrew (Monmouth) Jones, Andrew Turner, Karl Mitchell, Austin Davies, Glyn Jones, Mr David Morden, Jessica Twigg, Stephen Davies, Philip Jones, Mr Marcus Morrice, Graeme (Livingston) Umunna, Mr Chuka de Bois, Nick Kawczynski, Daniel Morris, Grahame M. Vaz, rh Keith Djanogly, Mr Jonathan Kirby, Simon (Easington) Vaz, Valerie Doyle-Price, Jackie Laing, Mrs Eleanor Mudie, Mr George Watts, Mr Dave Drax, Richard Lancaster, Mark Munn, Meg Weir, Mr Mike Duddridge, James Lansley, rh Mr Andrew Murphy, rh Paul Whiteford, Dr Eilidh Duncan Smith, rh Mr Iain Latham, Pauline Murray, Ian Whitehead, Dr Alan Ellis, Michael Laws, rh Mr David Nandy, Lisa Wicks, rh Malcolm Ellison, Jane Leadsom, Andrea Nash, Pamela Williams, Hywel Elphicke, Charlie Lee, Jessica O’Donnell, Fiona Williamson, Chris Eustice, George Lee, Dr Phillip Onwurah, Chi Winnick, Mr David Evans, Graham Lefroy, Jeremy Osborne, Sandra Winterton, rh Ms Rosie Evans, Jonathan Leigh, Mr Edward Owen, Albert Wishart, Pete Evennett, Mr David Letwin, rh Mr Oliver Pearce, Teresa Woodcock, John Fabricant, Michael Lewis, Brandon Featherstone, Lynne Lewis, Dr Julian Perkins, Toby Woodward, rh Mr Shaun Pound, Stephen Field, Mr Mark Liddell-Grainger, Mr Ian Wright, David Raynsford, rh Mr Nick Foster, rh Mr Don Lilley, rh Mr Peter Wright, Mr Iain Reed, Mr Jamie Francois, rh Mr Mark Lopresti, Jack Reeves, Rachel Tellers for the Ayes: Freeman, George Loughton, Tim Reynolds, Emma Mark Tami and Freer, Mike Luff, Peter Reynolds, Jonathan Phil Wilson Fullbrook, Lorraine Lumley, Karen Fuller, Richard Main, Mrs Anne NOES Garnier, Mr Edward Maude, rh Mr Francis Garnier, Mark McCartney, Jason Adams, Nigel Berry, Jake Gauke, Mr David McCartney, Karl Afriyie, Adam Bingham, Andrew Gibb, Mr Nick McIntosh, Miss Anne Aldous, Peter Binley, Mr Brian Gilbert, Stephen McLoughlin, rh Mr Patrick Amess, Mr David Birtwistle, Gordon Goodwill, Mr Robert McPartland, Stephen Andrew, Stuart Blackman, Bob Graham, Richard McVey, Esther Arbuthnot, rh Mr James Blunt, Mr Crispin Grant, Mrs Helen Mensch, Louise Bacon, Mr Richard Boles, Nick Gray, Mr James Menzies, Mark Baker, Norman Bone, Mr Peter Grayling, rh Chris Metcalfe, Stephen Baker, Steve Bottomley, Sir Peter Greening, Justine Miller, Maria Baldry, Tony Bradley, Karen Grieve, rh Mr Dominic Mills, Nigel Baldwin, Harriett Brady, Mr Graham Griffiths, Andrew Mordaunt, Penny Barker, Gregory Brake, Tom Gyimah, Mr Sam Morgan, Nicky Baron, Mr John Bray, Angie Hames, Duncan Morris, Anne Marie Barwell, Gavin Brazier, Mr Julian Hammond, rh Mr Philip Morris, David Bebb, Guto Brine, Mr Steve Hammond, Stephen Morris, James Beith, rh Sir Alan Brokenshire, James Hancock, Mr Mike Mosley, Stephen Bellingham, Mr Henry Brooke, Annette Harper, Mr Mark Mowat, David Beresford, Sir Paul Bruce, Fiona Harrington, Richard Mulholland, Greg 1301 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1302

Munt, Tessa Soubry, Anna New clause 14—Group filing for corporation tax— Murray, Sheryll Spelman, rh Mrs Caroline ‘The Chancellor shall direct the Office of Tax Simplification to Murrison, Dr Andrew Spencer, Mr Mark report by 31 March 2012 on the potential for the introduction of Neill, Robert Stephenson, Andrew a consolidated corporation tax filing for UK-resident companies Newton, Sarah Stevenson, John meeting the current definition of a group for corporation tax Nokes, Caroline Stewart, Bob purposes, to include an assessment of the potential cost savings Nuttall, Mr David Stewart, Rory for companies and HMRC, and the potential for reducing tax O’Brien, Mr Stephen Streeter, Mr Gary avoidance.’. Offord, Mr Matthew Stride, Mel Amendment 15, in clause 4, page 2, line 16, leave out Ollerenshaw, Eric Stunell, Andrew ‘is treated as having come into force on 1 April 2011’ Ottaway, Richard Sturdy, Julian Paice, rh Mr James Swayne, Mr Desmond and insert Parish, Neil Swinson, Jo ‘shall come into effect when legislation shall have been enacted Patel, Priti Syms, Mr Robert requiring that all public limited companies registered in the Pawsey, Mark Timpson, Mr Edward United Kingdom shall be required to submit the arrangements Penning, Mike Tomlinson, Justin for the payment of salaries and bonuses of their directors to a Penrose, John Tredinnick, David binding vote of approval by their shareholders at an Annual Percy, Andrew Turner, Mr Andrew General Meeting.’. Perry, Claire Tyrie, Mr Andrew Amendment 20, page 2, line 16, leave out ‘is treated Phillips, Stephen Uppal, Paul as having come into force on 1 April 2011’ and insert Pincher, Christopher Vara, Mr Shailesh ‘shall come into effect when legislation shall have been enacted Poulter, Dr Daniel Vickers, Martin requiring all public limited companies registered in the United Prisk, Mr Mark Villiers, rh Mrs Theresa Kingdom to publish the current salaries and bonuses of their Raab, Mr Dominic Walker, Mr Charles directors.’. Randall, rh Mr John Walker, Mr Robin Amendment 51, in clause 7, page 4, line 6, at end Redwood, rh Mr John Wallace, Mr Ben insert— Rees-Mogg, Jacob Ward, Mr David Reevell, Simon Watkinson, Angela ‘(10A) The Chancellor shall produce, before 30 August 2011, a Reid, Mr Alan Wharton, James report on the Government’s discussions with the industry on the Robathan, rh Mr Andrew Wheeler, Heather implementation of the increased charge’. Robertson, Mr Laurence White, Chris Amendment 17, in clause 42, page 27, line 4, after Rogerson, Dan Whittaker, Craig ‘appoint’, insert Rudd, Amber Whittingdale, Mr John ‘after a Report has been submitted to the House of Commons Russell, Bob Wiggin, Bill detailing the number of EIS schemes previously approved, their Rutley, David Willetts, rh Mr David total cost in terms of tax relief, the number of jobs created by the Sandys, Laura Williams, Mr Mark companies enjoying such relief and the number of companies Scott, Mr Lee Williams, Roger that failed subsequent to relief being granted allowing for an Selous, Andrew Williams, Stephen estimate to be made of the cost of each job created under the Shapps, rh Grant Williamson, Gavin terms of this scheme when compared to the cost of tax relief Sharma, Alok Willott, Jenny given.’. Shepherd, Mr Richard Wilson, Mr Rob Amendment 9, in clause 43, page 27, line 35, at end Simmonds, Mark Wollaston, Dr Sarah insert— Simpson, Mr Keith Wright, Jeremy Skidmore, Chris ‘(11A) In section 1052 in subsection (2) after paragraph (a) Wright, Simon Smith, Miss Chloe insert— Zahawi, Nadhim Smith, Henry “(e) incurred on premises costs Smith, Julian Tellers for the Noes: (f) incurred on design costs Smith, Sir Robert Norman Lamb and (g) incurred on patent, trade mark, registered design, Soames, Nicholas Mr Philip Dunne copyright, design right or plant breeder’s right (see section 1139)”. Question accordingly negatived. (11B) After section 1142 add— “1142A Premises costs (1) In this part “premises costs” means rents and business rates New Clause 12 costs of the studio where R&D is undertaken. 1142B Design costs

REPORT ON CAPITAL ALLOWANCES ‘(1) In this Part “design costs” means— (a) user interface costs, ‘The Chancellor shall direct the Office of Tax Simplification to report by 31 March 2012 on the options for simplifying or (b) user testing costs, replacing the capital allowances regime with a view to ensuring (c) aesthetic costs, businesses obtain tax relief for capital assets over a period more (d) new business model costs. closely matched to the useful life of those assets.’.—(Nigel Mills.) (2) In subsection (1)(a) “user interface costs” means— Brought up, and read the First time. (a) costs occurred from designing the visual and functional appearance of the application, 7.45 pm (b) costs occurred from designing the code that reacts to user inputs. Nigel Mills (Amber Valley) (Con): I beg to move, (3) In subsection (1)(b) “user testing costs” means— That the clause be read a Second time. (a) costs occurred during product testing. Madam Deputy Speaker (Dawn Primarolo): With this (4) In subsection (1)(c) “aesthetic costs” means— it will be convenient to discuss the following: (a) costs occurred from the artistic design of the product. 1303 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1304

[Madam Deputy Speaker] the OTS to consider ways to simplify the capital allowance system, or to replace it if simplification is not possible. (5) In subsection (1)(d) “new business model costs” means— If the Minister questions why we need that provision, I (a) marketing of building a new business monetisation draw his attention to the Bill, in which we have had to model, introduce various measures that tinker with the capital (b) marketing of testing a new business monetisation model.”’. allowance system, because we know it is out of date and not working. It is hard to imagine that anyone would Nigel Mills: The aim of new clauses 12 and 14 is to design from scratch a system in which we have to encourage the Government to move a little faster in introduce a modification to ensure a different system simplifying our corporation tax system, which is far too for short-life assets and then we have to change the complex to meet modern needs. definition of short-life assets to eight years. I wonder how often businesses invest in assets that they expect to On a day on which we have celebrated the 100th have a useful life of eight years, never mind any longer. birthday of Ronald Reagan, it is appropriate to start That is a clear sign that the system is not working, out with a quote from that great tax reformer. He said in of date and far too complex. It needs to change. 1985: I am sure that Members have taken a fascinating look “Later in this session of Congress, we’ll be presenting our proposals for tax reform that will lower tax rates, broaden the tax through this country’s tax code and seen how many base and make the tax code simpler and fairer. We’re looking at a types of capital allowances we now have. We have a top rate on personal income taxes of 35 percent, very possibly basic regime—the general pool—which from next year less. And we’ll be sure that incentives for capital formation are will produce an allowance on a reducing balance basis maintained. And I just want to reemphasise one thing: Tax of 18%, meaning that it will take a long time for a reform will not be a tax increase in disguise.” business to get the full economic relief for its investment. Those words are as relevant today as they were 26 years It would take well in excess of six years to get the ago. To be fair, the Government have received that majority of that relief. We then have the short-life asset message. The Exchequer Secretary recently said: pool for assets that a business thinks might have a life of “Taxation in Britain is far too complex. A clearer and more less than eight years. That effectively means that it has straightforward tax system will bring benefits for tax payers, tax to track those assets and work out when to scrap or professionals and the Government alike.” dispose of them to get the final balance. We also have a I hope that the whole House would entirely agree with long-life asset regime for assets that have a particularly those sentiments. long life, but which are not suitable for the general pool. The Government have taken welcome steps in the Furthermore, we have different rules for cars and right direction. We have established the Office of Tax environmentally friendly assets, and completely different Simplification, and I commend the work it has done. In rules for assets on a finance lease, where effectively we fact I am keen to ensure that we get maximum value out allow account depreciation. of it by giving it a bit more work to do under these two This range of reliefs for simple investments in plant new clauses. At a time when we are assessing the value and machinery beggars belief. Frankly, if I was an of all our quangos and outside bodies, the more work overseas business or someone with some cash wanting we get out of them the better. to start a business in the UK, and if I wanted to invest in a heavy manufacturing business, was investing in We need to hasten the work of the OTS along. We are large numbers of plant and equipment and went to my already a year into this Parliament and we rightly have a adviser and said, “I want to invest in the UK. Can you process now whereby which we consult in detail on tell me how I get relief for all this investment?” and I got major changes to the tax system. If we do not bring the answer, “Well, it depends on whether it’s a long-life forward our proposals in the next year or so, we will asset, a short-life asset, an ordinary asset, an environmentally struggle to get any benefit from them in this Parliament, friendly asset, and it depends whether you lease it, hire and that is the direction in which I am encouraging the purchase or buy it outright”, I would start to wonder Government to go tonight. whether it was really worth the effort. Surely there must The Exchequer Secretary has made such a great start be a simpler and better way of doing this than having to in tax simplification that he has had the honour of go down all these different routes. being named the “Tax Personality of the Year”. We We know what happens. The system creates complexity could start making various jokes about accountants’ for businesses having to track and make all these returns. personalities, but we would probably cause grave offence Then the Revenue has to audit and scrutinise those to all my former colleagues, so perhaps we should leave returns and ensure that everything is done properly. It that subject. We have had a consultation on removing a therefore takes work on both sides to support a system few simple tax allowances, such as the reliefs for angostura that I suspect is achieving the opposite of what we bitters and black beer—if going that far gets the Minister want, which is to encourage existing and new businesses that award, just think what garlands could be thrown at to invest in new, modern and environmentally friendly his feet if he tackled some of the real complexities of equipment, and to create more jobs in the manufacturing our tax system! sector that we so value in this country. It was just last week that the Government announced the next areas that they want the OTS to consider, Louise Mensch (Corby) (Con): My hon. Friend is rightly including the taxation of pensioners and employment making a powerful speech, and I share his interest in taxes. However, at a time when we need business to this subject because, like him, I have large amounts of drive the growth that will sort out the deficit and our manufacturing industries in my constituency. Have any economy, we need to look at the taxes that encourage—or businesses in his constituency made representations to perhaps discourage—business from making the investment him about how much such a measure could save them that we need. That is why new clause 12 would require or help them to invest? 1305 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1306

Nigel Mills: I can think of many things on which investment, although I am not sure that the double-declining businesses lobby their MP, but the details of the tax balance would meet my aim of simplifying, even if it system are a little way down that list. We would find might give businesses the joy of accelerated relief. I shall that businesses take a different view of whether they not ask the Minister to respond in detail on that particular benefit from the current regime. However, as we continually method, however, as I suspect that it will not have reduce the rate, this will become of greater interest to featured in his recent studies. more and more businesses. Yes, businesses come to me New clause 14 addresses a slightly less hot topic—groups and say, “The general tax system is just far too complex. of companies. These can range from groups with two The corporation tax system as a whole is far too complex.” companies through to multinationals with dozens or The issue I have raised is just one particularly good even hundreds of UK companies. For corporation tax example of where the system is now out of date. purposes, we currently ask groups to file a tax return for If the Minister needs more encouragement to simplify each entity. Then we ask them to file separate claims the system, I would add that the more complex we make and elections for all the various inter-group transfers a system, the more attractive we make tax avoidance and allocations. They are allowed to transfer a loss from and the more loopholes we create for tax avoidance. one company against the profit of another, and they are Through the Finance Bill we have had to introduce allowed various elections on the transference of assets anti-avoidance measures to try to stop people exploiting around the group. All these things create a huge compliance the system’s complexities. How much more attractive headache for taxpayers and the Revenue. would it be if we simplified the regime either by retaining It is worth considering whether there is a simpler way capital allowances that provide the attraction of a simple of getting groups to deal with their corporation tax fixed rate of relief, or by allowing a business to relieve compliance by filing a tax return covering the whole the depreciation charge it makes in its accounts? In group. There are precedents: many other tax regimes previous debates, we have heard of the risk that businesses under our competitors allow groups to file a single tax could massage their tax results to accelerate the deduction return for their whole group, and in fact we allow in advance of the economic life of those assets ending. groups to make group VAT elections and effectively file These things can be tackled, however. In effect we are single VAT calculations. I wonder how much easier it allowing a business with an intangible asset to take would be for a group if it had the same basis for VAT as relief for its accounts depreciation. It is strange that we for corporation tax. Let us consider all the potential allow that for intangible assets that we cannot, by savings for businesses and the Revenue in not having to definition, touch and for which there is no scientific go through dozens of individual tax returns. We should data proving the lifespan, yet for tangible assets—the bear in mind the fact that many entities in a group will core things we want businesses to invest in—people have few entries and will add very little. Under my have to go down this hugely complex route. proposal, we would no longer require all these group In reducing the allowance rate from 20% to 18%, the relief returns when businesses allocate losses from one Government think that they will more closely align company to another, then make a change following rates with the economic life of assets these days. I am submission and have to change all those returns, after not sure that businesses in my constituency are saying which one company makes a loss the next year that changes that that is their experience. These days, things move on the previous year’s return, meaning that they have to so fast that the life of an asset is quite hard to predict. If re-file them all. All these things add huge complexity someone is looking for a return on an asset over six and costs but very little value to the tax system. years-plus, it is hard to be confident in the current I accept that they add some value to the Treasury, market. There are many issues with the capital allowance however, through the hope that, somewhere in a group, system, and I suspect that each year a different aspect some losses or something else will not get relieved but will become the hot topic. The Minister will be lobbied will get trapped, whereas under a simplified system they by different interest groups, as I suspect he was this year would get used. I am not sure that our predecessors, in his attempt to move—quite rightly—from four year when they passed these reliefs to support and encourage to eight years, but when he is next lobbied and gets business, were aiming to put in place systems so complex proposals in his Red Box to add another layer of and out of date that some relief would get denied when complexity to the system, I hope he will say, “Actually, it ought to be given. there must be a better way we can do this.” This is There are further reasons behind my proposals. We fundamental to our corporate tax system, it is fundamental impose on UK group companies various requirements to how we encourage investment in our country, and to review the pricing of transactions that take place there must be a better, simpler, fairer way that removes between them. There is no tax at stake if company A sells some of the potential for abuse. New clause 12 would something to company B for £100, then has to work out get the Office of Tax Simplification to consider whether whether the price ought to have been £95 or £105. The a better system could be introduced. I would strongly only result is that one entity ends up with a slightly encourage the Government to consider carefully going reduced profit, and the other with a slightly higher one. down that line. Both pay the same rate of tax, so the present arrangements Let us step back in history to the time of President simply result in a paper chase that creates compliance Reagan. One example of how not to simplify a tax headaches for business and the Revenue alike. All such system was his Tax Reform Act of 1986, which introduced transactional requirements between group companies what was called the “double-declining balance method”, would disappear if they were allowed to file one tax return. switching to the straight line method at a time to maximise the depreciation allowance. I raise that issue 8pm only to show that this is not as simple as saying that we If I were working in the Revenue, I would be keen to need either the current system or accounts depreciation— get a consolidation from large groups of what their different things could be done that might encourage affairs in the UK actually looked like. In that way, I 1307 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1308 would be able to see what return they were making and publication of information on the salaries and bonuses whether it looked a little low or whether there were any of directors in all public limited companies. Amendment 17 strange entries that seemed to be reducing profits. At deals with a number of issues relating to enterprise the moment, a group filing 65 tax returns could have all investment schemes, and it would be helpful to receive manner of strange things going on, and it could be hard certain information from the Government in order to to see both sides of the matter. Something could be assess those schemes in future. shown in one entity, and it would be necessary to hunt I want to deal with salaries and bonuses first, as they for the opposite entry somewhere else. have been a matter of contention in the House for a Those arrangements create scope for tax avoidance. number of years now. Statements have been made by The Minister will be aware of the reforms that he has to leading members of all political parties expressing concern, introduce to tackle these complex, one-sided instances if not outrage, at the levels of increase in the pay of in which a tax deduction appears for a payment in one company directors. The Leader of the Opposition said group company and the income elsewhere in the group in a recent speech that the is somehow characterised as something different that is “danger today is that pay and performance have become not taxable. If we got this reform right, we could make detached…Over the last 12 years, chief executive pay in Britain’s this kind of tax abuse a lot harder to carry out. That top companies has quadrupled, while share prices have remained would also remove the need to introduce more and flat.” more complexity into the tax system, year on year, to The Secretary of State for Business, Innovation and tackle all these abuses. Simplifying the tax system will Skills has called for greater disclosure on pay and reduce costs, encourage the investment that we want bonuses and their link to company performance. He and tackle tax avoidance by taking away the present was reported as hitting out at the complexities and loopholes. I suspect that simpler taxes “ethics of the wild east” are more likely to be complied with. in the City. He described some directors’ pay and bonus If I have not convinced the Minister so far, let me settlements as “ridiculous”, “outrageous” and “rewards return to the question of capital allowances. At the for failures”. I agree wholeheartedly with the Leader of moment, we give pretty much no relief when a business the Opposition and the Secretary of State on this matter. invests in a new factory. We no longer give any relief for I believe that the Secretary of State’s sentiments have the building, but if we want people to invest in large-scale been echoed by the Prime Minister himself. manufacturing plants, that is not a wise position to My amendments seek to address the fact that the take. I understand why we give no relief for land or for present system for the control of directors’ pay and office blocks, but the situation for factories is a strange bonuses by shareholders is not working. The current one. It forces a business to separate out anything that it system for judging and rewarding remuneration in major has put into the factory that could be regarded as plant companies is clearly not linked to performance, and and equipment. For example, it could separate out air evidence for that now abounds. The Business Secretary conditioning or mezzanine floors, or anything else remotely was referring to the dramatic increase in the remuneration specialist, in order to claim tax relief on it. This creates of directors and executives of the top 100 companies. In a huge amount of work for businesses and tax advisers. 1998, that remuneration was 45 times the pay of the average In fact, a consultation is taking place at the moment employee in the company. By 2010, it was 145 times the on reforming the rules for businesses that are trying to average pay, and if it continues at that rate, it is predicted track assets such as those. We get annoyed with businesses to reach 214 times the average salary in the company for entering into expensive and complex leases in order that the director or chief executive controls. to get a tax deduction for their property costs when At the moment, the chief executives of the FTSE 100 their income perhaps appears offshore and is not taxed companies have total remuneration packages averaging in the UK. Might there not be a better way? My £4.2 million a year. Last August, it was reported that proposal would remove some of the incentive to do the financial crisis had resulted in ordinary employees’ that, and allow businesses to get proper relief on their salaries being frozen in at least one third of Britain’s capital investment instead of forcing them down ever biggest companies, yet the average pay of the top directors more complex, artificial and expensive routes whereby increased by £500,000. Hewitt New Bridge Street has those with well-paid tax advisers can get themselves reported that the typical bonus has now increased from into the best tax situation. My proposal would help the 90% to 120% of salary, and the total remuneration innocent companies that just want to get on with running survey conducted by pay and reward consultants MM&K their business but instead get mired down in the showed evidence of a total disconnect between rewards, complexities. I commend both my new clauses to the actual performance and shareholder value. Performance- Government. related pay has just gone through the roof, however, with extremely complex packages being devised. The John McDonnell (Hayes and Harlington) (Lab): I average top award under share allocation schemes and congratulate the hon. Member for Amber Valley (Nigel incentive schemes in the FTSE 100 has risen from 174% Mills) on moving his new clause and on the deployment to 328% of salary. of his expertise for the benefit of the whole House. He In some instances, outrageously large awards have could well be a candidate for tax personality of next been agreed even before the director has demonstrated year, but I would advise him that it might help his any value to the company. An example is Lloyds, which prospects if he were to lay off the Reagan quotes. gave its new chief exec, António Horta-Osório, a welcome I wish to speak to the amendments tabled in my package worth close to £13.4 million simply for joining name. Amendment 15 deals with directors’ salaries and the bank. This is a bank that we, as taxpayers, now own. payments, and proposes a binding vote by shareholders Lord Oakeshott, the Liberal Democrat peer, said that on such payments. Amendment 16 deals with the taxpayers would be “appalled” at paying someone 1309 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1310

“£5,000 a day, just for turning up at the office for the next three The problem identified by the High Pay Commission years”. and others is that the non-execs that sit on the remuneration I wholeheartedly agree with him on that. Ironically, committees are often executive directors in other companies, Sir Victor Blank, the former chair of the Lloyds group, so setting benchmarks of remuneration is important for described top bankers’ pay in The Sunday Telegraph—not them. There have been charges of cronyism as executives a newspaper I regularly read—as “unconscionable” and and directors appoint each other to each other’s warned that the widening pay gap could lead to dangerous remuneration committees—a relationship of incestuous divisions in society and more strikes. I shall quote him self-interest—while the non-execs sit alongside executive directly. He said: directors supporting them and unwilling to challenge them on pay. In recent years, we have seen the emergence “You can’t have an ongoing widening gap between the top pay of remuneration consultants who advise the remuneration and the average pay…I think we are at a time now where you have a certain amount of unrest over pensions and other issues where committees on the setting of pay, but these are unregulated if we don’t start early to have a degree of moderation in the levels and they are often working for or are commissioned by of pay we risk more industrial unrest than we have had.” the company directors on whose salaries they are giving advice. I could not agree more. On disclosure, quoted companies must publish directors’ Some shareholders have echoed those concerns. It remuneration reports. These appear in the annual report was perhaps best expressed by a woman shareholder and are put to shareholders for a vote. This information who was disgruntled at the Cable and Wireless annual is required to be put to companies as an ordinary general meeting. She complained—and it was a heartfelt resolution for approval at the AGM. The problem, plea from the floor: however, is the UK corporate governance code guidance, “All the money and all the profit seem to be going towards the according to which: salaries of the Board, and I did not necessarily think that they “A significant proportion of executive directors’ remuneration were worth that amount of money.” should be structured so as to link the rewards to corporate and individual performance. There should be a formal and transparent I believe this is undermining confidence and engendering procedure for developing policy on executive remuneration and cynicism—and, of course, division and disenchantment—in for fixing remuneration packages of individual directors.” the whole process. Clearly, the billowing packages of directors’ pay, 8.15 pm bonuses and overall remuneration has to be addressed. The Hampel report back in 1988 argued that the The Government have acknowledged that, as have all remuneration reports were excessively detailed and that parties in the House. My amendments are designed to features of the packages were prompt action and to make action more speedy and “rendered obscure to all but the expert reader.” decisive. The situation has got worse in recent years—worse than If we are to tackle this issue, we need to understand ever before. The data produced for the reports to the why it is occurring. The Joseph Rowntree charitable shareholders are often impenetrable and the remuneration trust funded an independent inquiry, the High Pay packages are extremely complicated and sophisticated. Commission, to which I believe a number of Members There is a real fear of shareholders gaining any have submitted their views over the last year. It has understanding of the package of remuneration, including looked at the drivers behind the trend of increases in the levels, and it has been argued that the reports are directors’ and executives’ pay and remuneration. It provides less about enlightening the shareholders than camouflaging some understanding of how the system operates to pay and bonus levels within the complex schemes proposed. determine directors’ remuneration and puts forward the Publication does not cover all companies, so it is extremely reason for the excesses. difficult for shareholders to hold the directors and executives to account, simply because the information Governments have addressed the issue over the last published is too complex and impenetrable. two decades. Legislation has been there to establish the As for the shareholder vote, international and national current system of corporate governance. For publicly regulations and guidance on corporate governance place listed companies, it is based first on the establishment of great emphasis on shareholders having the ability to a remuneration committee on every board to advise on express their opinions on the remuneration of directors. appropriate remuneration; secondly, on disclosure; and, It is enshrined in OECD principles of corporate governance. thirdly, on the shareholder having a vote on the pay and In the European Union, the publication of remuneration remuneration of directors. All the companies with a levels and performance criteria is recommended, as is premium listing of shares are required on the Financial investors having a vote on remuneration. Services Authority listing rules to report on how they Within the UK, the UK corporate governance code have applied the UK corporate governance code in their sets out the standard of good practice on reporting to annual reports and accounts. This includes explaining shareholders on remuneration and regulations also require how the pay was arrived at and determined. shareholder votes on the total remuneration packages The remuneration committees that have developed of company executives and directors. The vote itself, since the 1990s grew up as a result of pressure from however, is purely advisory and the failure to pass the successive Governments. They aim to overcome the remuneration report does not invalidate the payments conflict of interest in directors setting their own salaries. made. In fact, the FSA reforms of the banking sector The Greenbury report on corporate governance called have gone further on the basis of EU principles and for them to be fully independent and to comprise wholly those of the Basel Committee on Banking Supervision. non-executive directors. The committees agree the pay Further help is provided on disclosure, but there is still packages for top execs and produce the report that will no authoritative binding vote that will determine the eventually go before shareholders. acceptability of pay packages. 1311 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1312

When shareholder advisory votes were initially provided in the paperwork in relation to the Budget and introduced, they had some effect. The best example is the Finance Bill is not clear. The Treasury briefing on GlaxoSmithKline, as the remuneration report was enterprise investment schemes and venture capital trusts defeated—but that is very rare. The average vote against sets out the proposals but provides no analysis of past the remuneration report nowadays is 5.6% on the all measures and their performance. The Treasury Committee, share index. Shareholders are limited by the amount of in its comments on tax relief for EIS under the Finance information available, particularly in view of diversifying Bill , suggested: portfolios that have a range of investments, making it “The measure also needs to be viewed alongside the other hard to find time to study and intervene in each case. proposals for EIS and whether the existing EIS conditions encourage My amendments are designed to address some of investment in growth businesses.” these issues, particularly the weaknesses within the current The Treasury Committee, therefore, points us in the governance structure. I am trying to make the existing direction of undertaking a proper value for money structure work more effectively so that shareholders can exercise on the proposals. begin to control the excesses of directors’ pay and The amendment would enable the Minister to respond remuneration that have developed in recent years. to that. Before we venture into such schemes, particularly Amendment 20 says simply that prior to the corporation EIS, we must ensure that their objectives are achieved tax changes taking effect, the Government should enact with value for money, and the information is not currently legislation to ensure that all public companies available for us to make that judgment. “publish the…salaries and bonuses of their directors.” We have the opportunity this evening to hear the Malcolm Bruce (Gordon) (LD): I shall speak briefly Government’s future plans on publication in order to to amendment 51. Since the Government announced tackle the complexity of the current arrangements. the additional corporation tax on oil companies in the Amendment 15 goes further in an attempt to strengthen Budget, I have been urging and, I hope, taking a constructive the hands of shareholders by making the advisory vote part in getting the companies and the Government to on remuneration packages binding. In this way, it will talk through how field allowances can be used to ensure enable shareholders to take control of their own companies that projects reviewed as a result of the tax changes can once again and ensure accountability. It will enable still go ahead. The purpose of the amendment is to get shareholders to hold not only directors but remuneration feedback from the Government on the progress of such committees to account. negotiations, which I hope will have a positive outcome. Immediately after the Budget, Statoil made the most Mr Barry Sheerman (Huddersfield) (Lab/Co-op): Will controversial, and certainly the most high-profile, my hon. Friend’s amendments help with the sort of announcement: that it was putting on hold the Mariner situation we faced with HBOS? It was driven into the and Bressay fields. I imagine that those fields involve up buffers by its highly paid executive team, who seemed to to £6 billion of investment, with 600,000 barrels of oil lose nothing while the shareholders lost everything. recoverable and the possibility of a headquarters building being located in Aberdeen. I hope that the Government John McDonnell: My amendments would go some will find a way to ensure that the project goes ahead. way to ensuring that the information is published, enabling Next week, my hon. Friend the Member for West the Government to look in more detail at such information, Aberdeenshire and Kincardine (Sir Robert Smith) and I while also enabling shareholders to have at least some are taking a number of oil companies that are members opportunity to hold the directors to account. As I said, of Oil & Gas UK to meet the Secretary of State for the advisory vote system worked initially, but it certainly Energy and Climate Change to discuss in detail the has not worked in recent years, as the HBOS example implications of the tax. The difficulty is that the tax demonstrates. Having a binding vote will give the changes impact differently on every field and on every shareholders some authority. The amendments are an company and its planned investments. I hope that active attempt to redress the current imbalance of power negotiations will lead to a recognition that allowances between the shareholder and the board. It will not solve can be adjusted for particular types of field or circumstances, all the problems of directors being unaccountable on and that as a net result we will not lose too many of the pay or bonus awards, but it would put another weapon investments that were originally at risk. I also hope that in shareholders’ hands to tackle the issue. engagement over time will lead to both parties agreeing Amendment 17 relates to enterprise investment schemes that a simplification of the tax system might be desirable. and accountability. Just as shareholders need information When prices are high, the industry might reasonably to hold company boards to account, the House should be expected to make a contribution; equally, we should ensure that taxpayer’s money and tax concessions are recognise its need to know with some certainly the allocated wisely to groups in society and that value for return that it is likely to get on significant investments. money is achieved. The amendment would invite the The hon. Member for Hayes and Harlington (John Government to justify in more detail future enterprise McDonnell) made a powerful and persuasive case regarding investment schemes on the basis of past performance of rewards for work not done or risk not taken, but it is previously approved schemes. The amendment would easy to look at the oil companies as rich fat cats, which seek information from the Minister on the total cost of is how the public and the House often view them. tax relief with regard to the tax income forgone, the However, developing oil from under the North sea number of jobs created by the companies that have involves huge risks in relation to technology, geology, gained tax relief under the schemes, and the number of exchange rates, markets and weather. Many people companies that have failed after the tax relief has been engaged in the industry use their technical knowledge given—calculating the cost of each job created compared and expertise to make a substantial return for their with the cost of the tax relief given. The information companies and for the UK economy, and although they 1313 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1314 have good, well-paid jobs, the payments and returns onwards, when owners and shareholders and those at they receive are not in the same league as those received the companies’ headquarters will be looking for investment. by people in financial services. As I am sure the Minister knows, investment decisions The Government have acknowledged that they do are made not locally but in places such as Dallas, not want to lose the production from marginal and Houston, San Diego, Paris and Madrid, and the people mature fields, and they are prepared to use field allowances. who run our industry have to pitch for that investment. According to conversations I have had, negotiating in There is huge uncertainty because of the damage detail over a project for a field is incredibly complicated, caused by the initial tax imposition and the tax system requiring an enormous amount of civil service time, proposed in the Bill, but discussions about what is to expertise and engagement, as well as executive management happen in 2013-14 are taking place now. The sooner the time, so I hope that the system will be simplified. Government can give us an indication of what they Perhaps everybody is prepared to devote such time to intend to offer in field allowances the better it will be, significant projects, but the Department has a limited not just for the individual companies involved but for capacity to engage in too many of those negotiations, the country, because investment from abroad is desperately and companies sometimes have a limited capacity and needed. willingness to engage, to the extent they might say that investigating or investing in other projects is more worth Steve Baker (Wycombe) (Con): As I listened to the while. hon. Member for Hayes and Harlington (John McDonnell) I want to be encouraged by the knowledge that speak to amendment 15, I thought that my ears were constructive engagement is taking place. I get good deceiving me because I felt so much sympathy for what feedback from the industry about talks that it hopes he was saying. Indeed, he put me in mind of a book by a and believes will lead to agreements that ensure that reformed Trotskyite, James Burnham, who predicted in investments go ahead. In the long run, I hope that we “The Managerial Revolution”the system of capitalism—the will have a system in which there is trust and understanding set of structures—that we now recognise in publicly and the Government get the revenue from high oil listed companies. My discomfort evaporated, however, prices to which they are entitled, but the country gets when I realised that the hon. Gentleman was defending the investment in the expertise, people and resources the interests of the owners of capital. that will maximise production of oil and gas in the North sea, maximise jobs in the UK, and maximise and John McDonnell: Some of us are not completely sustain the export industry, which is growing substantially. reformed. I hope that the Government will give a positive response in due course. Steve Baker: In that case, I am delighted that we are on opposite sides of the Chamber. Mr Frank Doran (Aberdeen North) (Lab): I support amendment 51, tabled by the right hon. Member for It is strange that capitalism has come to this: that, Gordon (Malcolm Bruce). As neighbours, we share the nowadays, the owners of capital need to be defended by same interest in the oil and gas industry and know full the House from their own directors. If I have understood well its importance not just to the north-east of Scotland the amendment correctly, it would mean that the change but to the whole United Kingdom. One of our in the main rate for 2011 would not come into force disappointments about the imposition of the tax is that until legislation had provided arrangements for shareholders the Government seemed not fully to understand the industry to approve their directors’ remuneration. It is almost and its importance, which I hope they understand now. incredible that such an arrangement does not already exist. Like the right hon. Gentleman, I am pleased to hear We must reunite ownership control and the risk taken from my contact with the industry that discussions are with capital, and I believe that the amendment goes to under way, with the possibility of improvements to field the heart of one of the problems of our capitalist allowances. If the Government had thought the tax system. I am not sure that it would achieve the aim that through properly, they would have already prepared the the hon. Gentleman has set out because it might not ground for field allowances to mitigate the damage affect the rate for 2011, and I therefore cannot support done to the industry. It is not possible to overstate that it. Nevertheless, I think it is an extremely good idea, and damage. A huge blow was dealt to confidence, not just I urge the Government to consider it. because the industry had been involved in regular discussions with the previous Labour Government and Sir Robert Smith (West Aberdeenshire and Kincardine) the current Government about a review of the tax (LD): I support amendment 51, tabled by my right hon. system to deal with a host of areas that had been Friend the Member for Gordon (Malcolm Bruce). I remained untouched over the years, but because of how remind the House of my entry in the Register of Members’ that was done. It seems from all the available information Financial Interests as a shareholder in Shell and a that the politicians had no contact or discussions even vice-chair of the British offshore oil and gas industry with tax experts in the Treasury. This was a purely all-party parliamentary group. political decision that did not arise from the review, The key aim of the amendment is to introduce damage from consultation, or from any wider consideration limitation and to rebuild the confidence and trust among than the need to raise money. investors that the country needs if we are to maximise the benefits of our own oil and gas. The oil and gas 8.30 pm under the ground does not provide us with any jobs, tax It is clear that the industry will prosper for the next or security of supply. Those are produced only when it couple of years, certainly in the North sea, because the comes out of the ground, and, although it belongs to investment for the two years has already been committed. the nation, we can get it out of the ground only through We are concerned about what will happen from 2013 the expertise and skill of people from my constituency 1315 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1316

[Sir Robert Smith] Sir Robert Smith: The purpose of the amendment is to keep the spotlight on this issue by ensuring we get and throughout the country. They apply their knowledge updates from the Government, and that the Government by way of the investment provided by risk capital, and can give a signal on the investment climate showing that the investors must know, as far as possible, in what they understand the concerns and are willing to take climate they are operating and what returns they will them on board so we can build a long-term future. obtain. The kind of risk that we rely on their taking is There is another gap apart from the time gap as these illustrated by a field in the North sea where the geology contracts unravel. We are a mature province so we must suggested that three platforms would be enough to ensure that the infrastructure to get the next investments sustain production and provide all the necessary equipment. off the ground is still in place in years to come. That Only when they started extracting the oil did they infrastructure must not be decommissioned prematurely, discover that there was much more sulphur in some and so the investment must not be withdrawn. The parts of the field than in others and that they needed to owners of the infrastructure need to know that there is build a fourth platform at a cost of £1 billion. Such a long-term future for investment as more production extra risk taken by investors—not by the Government will be brought in through those platforms. That is another or the taxpayer—must be recognised as being of great reason why these constructive talks are so important. importance to our country’s success in this regard. I encourage the Government to do all they can to Last week, we held a reception in Parliament for restore confidence and the positive investor climate that Subsea UK to highlight an industry that has developed will unlock the full potential that exists in this country, into a jewel in the crown of this country, yielding build on the skills we already have, and maximise the £6 billion in production from under the sea through benefit to the taxpayer in the long run and to our engineering skill, half of which is exported from this security of supply. country. The United Kingdom is responsible for one third of the world’s subsea engineering; we therefore Mr David Hanson (Delyn) (Lab): I am grateful to the have something very important to nurture and build on. hon. Member for Amber Valley (Nigel Mills) for kicking The field allowance discussions are an important off this wide-ranging discussion on a number of important means of trying to unlock some of the fields that will be tax issues. He certainly enlightened me when he revealed negatively affected by what has been proposed. The that the Minister is tax personality of the year. I missed hon. Member for Aberdeen North (Mr Doran) and my that; despite all my “Gauke” Google alerts, I missed the right hon. Friend the Member for Gordon emphasised fact that he was tax personality of the year. May I offer a longer term risk that needs to be addressed: the risk the official Opposition’s wholehearted congratulations not to the projects that are unwinding now and in the to him on that? next two years, which already had the momentum of The hon. Member for Amber Valley gave a number contracts signed and delivered before the tax was changed, of Ronald Reagan quotes and he said today was the but to those that will be decided in the culture and 100th anniversary of Ronald Reagan’s birth. That was investment climate prevailing in the aftermath of the on 6 February, in fact, but this is the 100th year since tax. That is why these talks are so important in rebuilding Ronald Reagan’s birth. As you will know, Mr Deputy trust and a constructive engagement. Speaker, today is the day on which we shrank the UK I welcome the fact that industry and Government tax base by giving away America 200-odd years ago, appear to be addressing the need for constructive and I hope that, as part of his plans for simplification, engagement, and any updates from Ministers as to how the hon. Gentleman will recall that. we are progressing in rebuilding trust will be very important. New clauses 12 and 14 were proposed by the hon. We must remember that the reputations of the country Gentleman and he may be surprised to learn that I am managers—the people in this country who work for the not averse to his suggestion in new clause 14, because multinational companies and the investors abroad—has there are grounds for discussing the simplification of been damaged by what happened. They have been UK corporation tax returns for multinationals. It is encouraging their investors to invest in this country in worth while considering the review that he suggests, one set of circumstances, only for the goalposts to be provided that it examines whether such a simplification shifted. They need trust and confidence in them to be will decrease, rather than increase, tax evasion—an restored if they are going to persuade their investors increase is always the worry with such a simplification. abroad—in Calgary and elsewhere—to invest again in New clause 14 potentially has merit and although I do our country so we can build on the potential that exists. not expect the hon. Gentleman to push it to a vote, I hope that the Minister will consider the issue. Stewart Hosie (Dundee East) (SNP): I agree with New clause 12 proposes to review, or possibly even everything that has been said by the hon. Gentleman, remove, capital allowances and asks the Office of Tax his party colleague, the right hon. Member for Gordon Simplification to report on replacing them with a different (Malcolm Bruce) and the hon. Member for Aberdeen form of relief. The hon. Member for Amber Valley will North (Mr Doran). We have heard about contracts and know that Labour Members had substantial concerns work that is in place already unwinding, with the likelihood about reducing capital allowances for firms, which explains of a gap after 2013 when one set of investment decisions why I cannot support the new clause. My hon. Friends has already been made but others have not yet been and I tabled a number of amendments in Committee to taken. I ask the hon. Member for West Aberdeenshire oppose the reduction in the capital allowances. I realise and Kincardine (Sir Robert Smith) to carry on the good that the reduction was tied up strongly with the decision work he is doing with his own Government on speeding to cut corporation tax to 24% by 2014-15—shortly up this review, so we can avoid that investment gap and thereafter it was decided to cut it to 23%— which was the real dangers we will face in a couple of years’ time. one of the flagship growth measures in the June Budget. 1317 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1318

However, that was paid for by slashing investment and The key point is that we all seek transparency in capital allowances, which encourage businesses to take remuneration. My hon. Friend the Member for Hayes a long-term view by providing tax relief on the purchase and Harlington will be aware that there is already of equipment and machinery. The view that I expressed legislation on the statute book that means that banks in Committee has not changed, although I know that it must have transparency in their remuneration. The will cause disagreement: companies that invest, particularly Government should enact that legislation and should in manufacturing—car industries in my own area of also push for a wider European agreement on transparency, north Wales, advanced manufacturing, wind turbine an act of faith that they have so far failed to push for. manufacturing, plane makers and so on—will benefit The previous Government, in our Financial Services from capital allowances, whereas the tax cuts are, Act 2010, allowed the Treasury to issue regulations that unfortunately, aimed at financial services. forced banks to disclose in bands the number of staff At the time of the June 2010 Budget, manufacturers earning more than £1 million a year. That legislation expressed concern at what this approach will mean for has so far not been pursued with any vigour by the industry. More recently, the engineering manufacturers Government. The Act, which gained Royal Assent in association warned that the Government risk moving April 2010—just before the general election—gave the to a tax system that contains “a bias” against big Treasury the power to regulate on this issue. It is an manufacturers. Members on both sides of the House issue that my hon. Friend the Member for Hayes and are trying to encourage manufacturing growth, and I Harlington has raised and for which the Government believe that the review that the hon. Gentleman seeks in must account today. The Opposition will continue to the new clause could be damaging to the growth of consider it in the future. Indeed, my right hon. Friend capital investment and, therefore, to the growth of the Leader of the Opposition made a clear speech to the manufacturing industry. Coin street neighbourhood centre on Monday 13 June in which he committed the Opposition to ensuring that Nigel Mills: I wish to clarify something. My aim in we had such transparency and that chief executives new clause 12 was not to do what the right hon. Gentleman were accountable not just to their shareholders but to fears will happen, but to do the opposite. I was aiming the wider community. to ask the OTS to consider simplifying or replacing the capital allowances regime with one that would match Kate Green (Stretford and Urmston) (Lab): Does my the tax relief more closely to the life of the assets being right hon. Friend agree that an important feature of invested in. My concern was that an 18% reducing exposing those very high bonuses to public scrutiny was balance was giving tax relief over a far longer period to make it clear that other lower paid workers in the than the actual useful life of those assets. I felt that banking sector receive some bonus payments? It is very having a simpler system, where a shorter “life” meant important that we distinguish between the excessive that the tax relief would be obtained much faster, would bonuses at the top and the bonuses that top up relatively incentivise investment, not discourage it. modest wages for the bank clerks, who are feeling quite Mr Hanson: That is an interesting argument, and I attacked personally when the banking crisis was none bow to the hon. Gentleman’s detailed knowledge of of their making. these matters, which goes back to his professional experience before entering the House. My worry has been placed Mr Hanson: My hon. Friend makes a valuable point. on the record on Second Reading, in Committee and on She will know that the legislation passed by my right several other occasions. For the moment, it is best that hon. Friend the Member for Edinburgh South West we keep our arguments to the effectiveness of capital (Mr Darling) in the last Parliament allowed salaries of allowances, and I will, thus, still be unable to support more than £1 million to be open to scrutiny, which the new clause. would address the issue she mentions. My hon. Friend the Member for Hayes and Harlington There is some merit in bringing this issue to the (John McDonnell) tabled amendments 15, 20 and 17. I attention of the House, and I am grateful to my hon. suspect that he was even more surprised than me to hear Friend the Member for Hayes and Harlington for doing the hon. Member for Wycombe (Steve Baker) offer his so. He will know that there are some issues to do with unflinching support for my hon. Friend’s suggestions his amendment delaying corporation tax cuts, but I am on this matter. I thank him for tabling his amendments grateful that he has addressed the issue and I hope the because they make an extremely important contribution Minister will respond in due course. to the debate. We face a real issue in how we collectively Amendment 17 is about the enterprise investment address what is now a cross-party concern and shed scheme, which we support. In Committee, we asked the light on the remuneration of executives, who are ultimately Minister whether he had state aid approval for the EIS paid by the companies for which they work and by us as and I would welcome an update on whether he has since consumers of those goods in our society at large. made progress on that. John McDonnell: I had better correct the record. As I have some sympathy with amendment 51, tabled by someone who still sees the relevance of Trotsky’s transitional the right hon. Member for Gordon (Malcolm Bruce). programme, I am attempting not to salvage capitalism On Second Reading and in the Committee of the whole but to expose its weaknesses. House, we tabled amendments that mirrored his amendment in many ways, asking the Chancellor to produce before 8.45 pm the end of September an assessment of the impact of Mr Hanson: Far be it from me to engage with my taxation on ring-fenced profits, business investment and hon. Friend on the benefits or otherwise of Trotsky’s growth, including an assessment of the long-term theory, because I am sure that he would win that sustainability of oil and gas exploration in the North discussion hands down. sea. For the reasons mentioned by my hon. Friend the 1319 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1320

[Mr Hanson] to invest in the UK, tax reforms need to maintain stability, avoid complexity and ensure a level playing Member for Aberdeen North (Mr Doran), the way that field for taxpayers. the proposal was brought forward contained elements Let me deal first with the amendments tabled by the of surprise for the industry.There was a lack of consultation hon. Member for Hayes and Harlington (John McDonnell), and there have been consequences. The right hon. Member and in particular amendment 15, which deals with for Gordon and the hon. Member for West Aberdeenshire directors’ pay, and on which we saw an unlikely alliance and Kincardine (Sir Robert Smith) both mentioned between him and my hon. Friend the Member for Statoil and the great impact that the decision has had Wycombe (Steve Baker) in defence of the interests of on that company’s potential $10 billion—or £6.1 billion— capital versus workers—if I can phrase it in a way that investment in the North sea. will please my hon. Friend but not the hon. Gentleman— It is important that the Economic Secretary has had albeit the highest paid workers. It is worth noting that discussions—some potentially very exciting and energetic— both hon. Members have made many declarations of with oil companies on these matters as part of her independence, and today was no exception. As I have initiation into her role in government. I hope that she said, a competitive tax regime is the foundation of our will ensure that she reports back. I also hope that the plan for growth, and the consequence of amendment 15 Minister will accept amendment 51, or at least accept would be to delay the reduction in corporation tax. an amendment in principle for the future. The Government take the essence of the hon. Finally, although my hon. Friend the Member for Gentleman’s concern—directors’ remuneration—seriously; West Bromwich East (Mr Watson) is not present today indeed, my right hon. Friend the Secretary of State for because of other matters, I very much welcome his Business, Innovation and Skills raised it on 22 June in a amendment 9, which is part of this group. We raised the speech to the Association of British Insurers, asking issue of video games tax relief in debates on the Finance how we can ensure that directors’remuneration is effectively (No. 2) Bill. However, we need to look at the issue again linked to company performance. To help answer that in detail, if only because the hon. Member for Wantage question, the Government already have plans to consult (Mr Vaizey) said when in opposition: in two relevant areas. In July, the Department for Business, “We are committed to a tax break along the lines of the video Innovation and Skills will look at the narrative aspects games tax credit. We have been calling for tax breaks for the video of reporting directors’ remuneration, examining the game industry for the last three years.” provisions dealing with the disclosure of directors’ He said that during the general election, on 13 April 2010. remuneration and making the link to company performance He is now the Under-Secretary of State for Culture, much clearer. In the autumn, the Department will explore Olympics, Media and Sport, yet he has been sat on by other policy options related to the role of remuneration the Chancellor of the Exchequer, who said in his Budget committees and company accountability to shareholders. statement last June: Turning directly the proposals made by the hon. “In the current climate, with the deficit the size…all those Member for Hayes and Harlington, let me first remind reductions in tax must be more than paid for by other changes to him that UK-quoted companies are already required to business taxation, so we will not go ahead with the poorly publish a directors’ remuneration report. That includes targeted tax relief for the video games industry.”—[Official Report, full individual details of each director’s pay, including 22 June 2010; Vol. 512, c. 175.] salary and bonuses, share schemes and all other forms My hon. Friend’s amendment 9 asks the Government of remuneration. His proposal to make the remuneration to look again at the issue. I simply put on record the fact vote binding in nature would raise difficulties, as such a that, yet again, those in government said one thing vote would inevitably cut across contractual arrangements during the election and something else afterwards. We already entered into between the company and the need to encourage the video games industry so that we director. That is why the vote is currently advisory in can compete on a global scale. nature. In summary, there are some useful amendments in this group. I cannot accept everything that the hon. John McDonnell: Is this issue to be part of the Member for Amber Valley said, but the other amendments consultation in the autumn? Will it be addressed at all? before us have some merit. I look forward to hearing what the Minister has to say. Mr Gauke: As I have said, the consultations I have announced will focus on the narrative provisions, the The Exchequer Secretary to the Treasury (Mr David role of remuneration committees and company Gauke): We have had an interesting and wide-ranging accountability to shareholders. I am sure that representations debate on this group of amendments, which propose a could be made to the latter consultation. However, number of changes to the taxation of business. Let me there remains a difficulty with cutting across contractual start by reiterating our position on business tax. The arrangements and I dare say that there might be issues first step in the Government’s plan for growth is a with the Human Rights Act 1998 were that to happen. competitive UK tax system. In fact, the Government’s is aim to create the most competitive corporate tax John McDonnell: First, I think it would be greatly regime in the G20, and we have been clear about how reassuring to the House overall if the issue of the we intend to achieve that. Last November we published binding vote was within the scope of those consultations. our corporate tax road map, setting out our plans for Secondly, the issue of contractual commitments has reform over the next five years and the principles always been the red herring brought up on any future underpinning those reforms. I am quite clear that if we reform. The way around it is simply to make future are to provide business with the certainty that it needs contracts subject to that binding vote of shareholders. 1321 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1322

Mr Gauke: I know that my ministerial colleagues in 9pm the Department for Business, Innovation and Skills are The hon. Member for Hayes and Harlington wants a watching this debate very closely and will have listened report on the impact of the scheme and the number of to the hon. Gentleman’s representations. I noticed that jobs created. Information on the cost of EIS and the when he referred to the House as a whole, he gestured to number of investors claiming relief is available on the my hon. Friend the Member for Wycombe. Whether the HMRC website. About 10,000 individuals invested through hon. Gentleman and my hon. Friend necessarily represent the scheme in 2008-09. HMRC does not collect data on the views of the House as a whole on all issues I am not the number of jobs created or the outcome for companies. sure, but the hon. Gentleman raises a fair point. Doing so would create an additional burden on the taxpayer and invested companies at a time when the Steve Baker: May I say that I think the reason for this Government are seeking to minimise the compliance unlikely alliance is that the workers now are the capitalists and administrative burdens resulting from the tax system, through their pension funds and other investments? I particularly on small businesses. remember a trade unionist explaining to me with some care the new movement for workers’ capital and I think we will be missing a trick as a free-market Government, John McDonnell: How do the Government assess if indeed we are a free-market Government, if we do value for money with regard to those schemes, if not in not recognise that the workers now are the owners and job creation? that we need to help them take control of what they own. Mr Gauke: There have been assessments of the enterprise investment scheme, which has been in place since 1994. Mr Gauke: I do not know whether my hon. Friend is We want to encourage greater investment, particularly trying to lose the support of the hon. Member for in smaller companies. We recognise that sometimes Hayes and Harlington on this, but I fully take his point there is market failure in that area, which is why tax on board and I shall ensure that BIS is aware of this incentives are justifiable. We have set out as much debate. My right hon. Friend the Business Secretary has information as we can, but it is not something on which said that shareholder accountability is an area that his we can provide precise numbers. That is not the nature Department will be looking into in the autumn. of the economy, but the scheme will encourage greater investment and that should be welcomed. John McDonnell: This is a serious point, and I say to I thank my hon. Friend the Member for Amber the Minister that this will come back time and again, Valley (Nigel Mills) for his remarks on my award as tax because every Government structure put in place by personality of the year. Some may think it a somewhat successive Governments on this issue has been unsuccessful oxymoronic award, but I can tell the House that it has in controlling remuneration. There is outrage among changed my life considerably. the general public about what has been happening, not just in recent years but today with £6 billion bonuses in My hon. Friend brings much greater expertise to the City and elsewhere. I say to him in all seriousness these matters than I do. I welcome the fact that he seeks that any Government need to address this issue, which simplicity, which is not always the case with new clauses concerns the democratic control of what are now public and amendments to Finance Bills. I want to make a companies in terms of ownership. couple of points that relate to both his new clauses. First, we do not see it as our role to direct the Office Mr Gauke: The hon. Gentleman makes his point of Tax Simplification. The office has done a lot of good forcefully. It is worth pointing out that the UK leads the work, but it is important that its independence is respected. way internationally on the reporting of executive pay Secondly, in its broad work the OTS has looked at the and accountability to shareholders. I hope that he will various allowances and reliefs in the tax system and has acknowledge that, just as I acknowledge the legitimate concluded that they are not areas where it wants to concerns he raises. It is our intention to make sure that devote its efforts. None the less, I know that the OTS the framework remains fit for purpose and in line with will closely read my hon. Friend’s speech. We are always our approach to delivering long-term returns as our keen to look at areas where we can improve the economy grows out of the recession. administration of the tax system, including his proposals in new clause 14 on consolidated filing. The hon. Gentleman’s second amendment, amendment 17, would delay the introduction of clause 42 until a On new clause 12, the OTS has given initial consideration report on the impacts of the enterprise investment to capital allowances as part of its review of tax reliefs scheme had been published. In contrast with corporation and its ongoing review of small business taxation. The tax as a whole, EIS is a focused relief with a particular Government have set out their approach to capital purpose and is a vital component of the Government’s allowances in the corporate tax road map. Allowing plan for growth. The scheme encourages investment each business asset to be written off for tax purposes in into smaller, riskier companies by offering a tax incentive line with its own depreciation rates would not necessarily to investors. For example, it benefits new start-ups in bring the benefits to businesses that the new clause high-tech sectors such as IT bioscience. Since 1994, anticipates. Some business assets would depreciate more about £7 billion from private investors has been contributed slowly than they currently do under the capital allowances to qualifying companies. The Government are building regime, and it should be noted that the annual investment on the success of the scheme with changes in this allowance gives immediate write-off for the plant and Finance Bill and in the Bill next year that will increase machinery expenditure of 95% of UK businesses. There the incentive for people to invest in smaller companies, is thus a danger that the new clause could increase helping them to establish and grow. business tax complexity. 1323 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1324

[Mr Gauke] cars and televisions and making specific reference to the overall tax rate of taxpayers grouped by decile in the United Kingdom I know that my hon. Friend tabled his new clauses as and by each individual constituent country shall be prepared by probing provisions. I may not have entirely satisfied HM Treasury and laid before the House of Commons not later than 1 December 2011.’. him, but he has put his case on record and the OTS will of course look carefully at what he says. Amendment 30, page 1, line 9, at end insert— I turn finally to amendment 51, tabled by my right ‘(3) All public sector employees whose earned income does not hon. Friend the Member for Gordon (Malcolm Bruce), exceed £21,000 shall be entitled to a £250 reduction in tax who has played a constructive role on the issue in the liability for the tax year 2011-12.’. three months since the Budget announcement on oil and gas. He made an important contribution when the Mr Hanson: I do not intend to detain the House House debated clause 7 in the Committee of the whole for long on these amendments, although they are House. He has stressed the importance of working important. I particularly welcome amendment 30, closely with the industry in the months ahead, which which stands in the name of my hon. Friend the Member the Government committed to do at the time of the for Hayes and Harlington (John McDonnell) and Budget. We announced then that we would work with my right hon. Friend the Member for Birkenhead the industry in three key areas: setting the right trigger (Mr Field), and which I will touch on briefly. Clause 1 price for the fair fuel stabiliser; looking at whether deals with rates of taxation and, if approved, will set the we can find a way to provide long-term certainty on rates for the next financial year at 20%, 40% and a decommissioning relief; and looking at the case for special rate of 50%. Amendment 10, which is simple new categories of field qualifying for the field allowance. and straightforward, has been tabled by the shadow I am pleased to tell the House that we are making Treasury team because we want to shed a little light on good progress in these discussions. My hon. Friend the how the Government will report on their future plans Economic Secretary, who is here this evening, will update for the 50% rate of tax. the House on progress on those discussions as soon as is appropriate. I hope and expect that she will be able We already know certain key facts. We know that the to do so in the very near future. I thank my right hon. Chancellor has asked HMRC to collect tax receipts for Friend for tabling his amendment. Although I have this financial year and that he has assessed the revenue been unable to respond in full detail, I hope that the levels of the 50% rate for this year. In Committee, the Government will be in a position to do so shortly. Exchequer Secretary said: In conclusion, I remind the House that it is the “The Chancellor’s Budget statement to the House on 23 March Government’s aim to create the most competitive corporate simply highlighted the fact that he has asked Her Majesty’s Revenue and Customs, as part of that ongoing work, to see how tax regime in the G20. We have set out our plans for much the additional rate actually raises. HMRC will look at all reform over the next five years in the corporate tax road the available evidence about the impact of the 50% rate, including map, which was published last November. In order to data from the 2010-11 self-assessment returns, which will become provide businesses with the certainty they need to invest available next year.”––[Official Report, Finance (No. 3) Public in the UK, tax reforms need to maintain stability, avoid Bill Committee, 10 May 2011; c. 22.] complexity and ensure a level playing field for taxpayers. My concern, which I will put directly on the table, is Therefore, although we have had a good debate, I invite that the Government have already prejudiced any decision my hon. Friend the Member for Amber Valley to withdraw on the 50p rate of tax by stating clearly that they believe the new clause. it will do lasting damage to the economy. We want further explanation of the methodology that they will Nigel Mills: My purpose in moving the new clause use to consider the 50p tax rate for future Budgets, and was to encourage the Government down the route of I think that the best organisation to do that is the Office tax simplification, which I hope I have achieved tonight. for Budget Responsibility. The Government set up the Therefore, I beg to ask leave to withdraw the clause. OBR and gave it a number of key roles, one of which Clause, by leave, withdrawn. I have helpfully drawn from its own website. Under the heading “What we do”, it states: Clause 1 “We scrutinise the Treasury’s costing of Budget measures: During the run-up to Budgets and other policy statements, we subject the Government’s daft costings of tax and spending CHARGE AND MAIN RATES FOR 2011-12 measures to detailed challenge and scrutiny.” Mr Hanson: I beg to move amendment 10, page 1, line 9, All the amendment would do is formally recognise that at end insert— role in relation to the Government’s forthcoming review of the 50p additional rate. ‘(3) By 31 March 2012 the Office of Budget Responsibility, in consultation with HMRC, will report to Parliament on the The Chancellor has said to the House of Commons, revenue of the 50 per cent. rate of income tax and its impact on the public and anyone who will listen that he sees this the UK economy.’. as a “temporary measure” and that it will do “lasting damage” to the economy. He has signalled that he will Mr Deputy Speaker (Mr Lindsay Hoyle): With this it abolish the 50p rate as soon as he can, in line with will be convenient to discuss the following: Conservative thinking before the election. However, the Amendment 14, page 1, line 9, at end insert— timing remains uncertain. I believe that the Chancellor ‘(3) A report on the impact of the current rates of income tax has pre-empted the review. When HMRC undertakes on inequality in the United Kingdom, also taking into the review, it will do so on the assumption that at some consideration all other direct and indirect taxes including duties time around 2013 the Chancellor of the Exchequer will and excises, council taxes and mandatory charges for the use of abolish the rate on incomes above £150,000. 1325 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1326

Charlie Elphicke (Dover) (Con): May I congratulate they want to do away with it. They are now trying to the Opposition on submitting the amendment on time produce the information to show why that should be and on its being called? In relation to this report, I ask done. I believe that the Office for Budget Responsibility the right hon. Gentleman whether it is fair, right and would provide greater scrutiny of that decision than—dare proper that in 1978 the top 1% of earners paid 11% of I say it?—the Minister in an in-house decision. We will all tax and that they now pay 25%. test the matter tonight, and I hope that the Exchequer Secretary will accept the amendment. It relates to a core Mr Hanson: I am grateful to the hon. Gentleman. I role and duty of the OBR, which is on its website, and presume that he does not support the 50p tax rate, I cannot see why he would not wish it to review the whether it raises revenue for the Treasury or not. We do Government’s decision formally. not want HMRC to do a private report for Ministers, and for Ministers to then make political judgments Mr Andrew Love (Edmonton) (Lab/Co-op): Is it not about the 50p additional rate. Through the OBR’s important that the matter is subject to scrutiny, because involvement, we want there to be a public report on the the Government continue to tell us that they are looking impact of the rate which is open to scrutiny. after everyone in the community, including the less The hon. Member for Dover (Charlie Elphicke) will well-off? A review would show whether they have plans know that about 308,000 people are affected by the 50p to reduce the burden on the highest paid. rate. I am not surprised that he supports its abolition and a lower rate, because he knows that it is paid less in 9.15 pm my region in Wales, in the north-west region of my right Mr Hanson: That is true. My hon. Friend will know hon. Friend the Member for Birkenhead and my hon. that “We’re all in this together”is one of the Government’s Friend the Member for Denton and Reddish (Andrew refrains, and a review would show whether that is true. I Gwynne) and in the north-east region of my other hon. want to know that preferably from the OBR, as suggested Friends. The benefit of this tax cut, if it happens, will in the amendment, but otherwise from the Exchequer predominantly affect south-east and east England and Secretary. The Government need to set out why they the wealthier parts of London, although it will not have decided to reduce the 50p rate in 2013, if that is particularly affect the constituency of my hon. Friend their decision; what it will cost; what the forgone income the Member for Vauxhall (Kate Hoey). I understand will be; and who will benefit. There should not just be why the hon. Member for Dover wants to get rid of the internal discussions—the decision should be open to rate. If he does, there will be a tax benefit for the richest public scrutiny through the OBR. people in our society and for certain parts of the United I am grateful to my right hon. Friend the Member for Kingdom. Birkenhead for tabling amendment 30, which highlights All I am saying to the Minister is that we want to see an extremely important issue. Again, I wish to hear the the evidence on whether the additional rate raises money. Exchequer Secretary’s response today. I do not wish to If it does not raise money, we want to see it openly steal my right hon. Friend’s thunder, but he will know scrutinised. If it does raise money, we want to expose that the Conservatives pledged in their manifesto to that, so that if the Minister and his hon. Friends cut the freeze public sector pay, but to exclude from that 1 rate, it will be clear that they are doing so for political million of the lowest-paid workers. It stated that they reasons and not because it is ineffective. would “freeze public sector pay for one year in 2011, excluding the one Charlie Elphicke: The right hon. Gentleman should million lowest paid workers.” know that in Dover there is a lot of deprivation. My Through great effort, he has used parliamentary questions case is not that we should get rid of the 50p tax rate to uncover the fact that that is not the case, and that the tomorrow, but that we should do so at the right time. Conservative Government have yet again broken a promise My question was simply whether it is safe and sensible in their election manifesto. I believe that he will make a for so much of the tax base to depend on so few people strong case that we need some explanation from the in this country? Government of what they are doing about the impact on low pay of the public sector pay freeze that has been Mr Hanson: I just say to the hon. Gentleman that in put in place. south-east England, which I recollect covers Dover, My right hon. Friend will know that there are issues some 67,000 people pay the additional rate, whereas in to consider about the applicability of his amendment north-east England, which is represented by some of to clause 1 and its workability, and indeed its fairness. my hon. Friends who are present, only 5,000 people pay However, he has highlighted an extremely important it. Clearly, there will be a regional imbalance if this tax issue, and I want the Exchequer Secretary to explain cut goes ahead. We will consider those issues in due why the Conservatives’ words about ensuring that low-paid course. I know that there are areas of great poverty and workers were not disadvantaged have proved to be deprivation in Dover, where people do not pay the weasel words. additional rate, but the hon. Gentleman has imposed value added tax on those people through votes in the Charlie Elphicke: Is the right hon. Gentleman’s position House of Commons, and that is an unfair tax. and that of the official Opposition that they support The simple point I make to the Minister is that we amendment 30? want open scrutiny of the decisions he takes on the ending or otherwise of the 50p additional rate. The Mr Hanson: I have not yet heard what my right hon. leader of the Labour party has said that we would Friend the Member for Birkenhead has to say about it, maintain that rate for the duration of this Parliament. but the hon. Gentleman might be interested to know The Minister and his colleagues have indicated that that we have discussions not just in the Chamber but 1327 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1328

[Mr Hanson] against rising prices and a general wage freeze, but many now find that no such increase is forthcoming. I outside it as party colleagues. My right hon. Friend will would therefore be grateful if the Minister could give us make his case in a moment, and I will listen to it and answers to those two questions. respond in due course. There are some issues that we need to consider, but it is not for me to respond to John McDonnell: May I associate myself with amendment 30; it is for the Exchequer Secretary to say amendment 30, which I also signed? For my constituents, why he has let down low-paid workers across the United £250 means a lot. It is a lot of money in terms of paying Kingdom through his promises before the elections and daily bills, but it is also the difference between some his actions in the Budget. I look forward to hearing my children having a summer break this year and not. I right hon. Friend in short order. hope the Minister responds positively and examines My hon. Friend the Member for Hayes and Harlington that matter, but I will give him this assurance: if we do has yet again tabled an amendment that has a great deal not have positive assurances from the Government, we of merit. Although I do not expect it to be pushed to a will be back time and again until that money is paid. vote, I want to hear what he says about it, because he I wish to speak to amendment 14, which is in my has important points to make. The key point on all the name. The amendment simply proposes that, as we amendments is that the Government need to provide determine personal income tax rates for the coming clarity. We need clarity about what they are doing on year, we look carefully at their impact on inequality. the 50p tax rate and on low-paid workers, and on the The proposal is from various lobbies in recent months, points raised by my hon. Friend’s amendment. I look from religious groups, churches, welfare rights groups, forward to hearing my hon. Friend, my right hon. trade unions and other civil society organisations, which Friend the Member for Birkenhead and the Exchequer have expressed their anxiety about inequality in our Secretary in due course. society. Like them, I believe that our country is disfigured by inequality and the extremes of wealth and poverty. Mr Frank Field (Birkenhead) (Lab): I shall not press Consequently, I believe that we should use every legislative amendment 30 to a Division tonight, because we will weapon possible to address it. return to the subject in greater detail later in the Parliament. However, I want to address some questions to those on I mentioned some of the extremes of wealth and the Treasury Bench. I accept that there are problems poverty in the earlier debate on executive pay—some with the amendment, but it was the only way that I top executives earn a salary that is 145 times the average could find to debate the matter in the House. salary of their workers. The Government’s assessment of wealth distribution last year showed that the total I wish to remind the Minister that in the Budget wealth of the top 10% of the population is now 100 times debate of 2010, the Chancellor said that that of the bottom 10%. The simple reason is that the “the Government are asking the public sector to accept a two-year poorest have so little wealth. pay freeze, but we will protect the lowest paid…They will each receive a flat pay rise worth £250”—[Official Report, 22 June 2006; In 1986 in the UK, the richest 1% held 25% of Vol. 512, c. 171.] marketable wealth. Twenty years later, that had risen to He said that the cut-off point would be not £18,000 but 34% of total national wealth. The poorest 50% had £21,000 a year, and he, not the Opposition, estimated gone from holding 11% of the nation’s wealth to holding that 1.7 million people would receive that pay increase. just 1% today. That is not solely the result of economic trends or globalisation—it has been Government policy, A number of Opposition Members, including those largely in the 1980s and 1990s, to pursue the systematic who put their names to amendment 30, and many hon. redistribution of wealth from the poor to the rich, and Members, have constituents who believed what the the last Government at least held back the tide for a Government said. They believed that they would be period. protected. The Chancellor’s announcement was a crucial part of protecting those workers, but it was also a crucial Taxation policy has a key role to play in addressing part of selling to the wider public the pay freeze that the inequality and I note that the Treasury Committee Government announced. However, those people have quoted Wendell Holmes’ popular dictum that tax is the so far received no £250 pay increase. price we pay for a civilised society. I agree, but civilisation has a range of definitions, one of which is that we I should therefore like to ask the Minister two questions. should not live in a society that is so starkly unequal-- First, of the 1.7 million who not I, but the Chancellor, said would be eligible, how many have received the £250 across-the-board pay increase? Next year’s earnings Kate Green: I very much support the sentiments my figures show that the numbers eligible will rise to 2.2 million. hon. Friend is expressing. Does he agree that it is not Therefore, my second question for those on the Treasury only the income and consumption taxes that need to be Bench is this: how many of that 2.2 million will receive encompassed in his amendment, but also the wealth their £250 pay increase? taxes, especially in light of the examples that he has just I conclude by merely trying to express, perhaps given us? inadequately, a sense of how low-paid workers in my constituency feel. They feel that they have again been let John McDonnell: My amendment proposes examination down. The previous Labour Government did not do of the whole range of taxes, indirect and direct. It is too well by that group, with the 10p tax rate abolition, interesting that the direct taxation system can be progressive and this Government have done not too well by them. in redistribution, but that the indirect system is so Many are women coming up to retirement age who now regressive in this country. It has a considerable impact learn that they must work two years more. They thought on ensuring that we see these vast extremes of poverty they would get £250 as a lump sum to protect them and wealth. 1329 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1330

It is not only the lobbyists from various organisations Stephen Williams indicated dissent. who have expressed their concerns about this inequality, because the general public are averse to high levels of John McDonnell: No. The previous election? inequality too. In recent surveys, 80% to 90% have been in favour of a more equal distribution of wealth in our society. We have had various discussions in this House Stephen Williams indicated assent. about the impact of inequality, and none better than the debates around the work by Richard Wilkinson and John McDonnell: The hon. Gentleman clearly has Kate Pickett, “The Spirit Level”, which was ground- not been reading my alternative Budgets that I table breaking. year after year and which address some of those issues, Richard Wilkinson was an adviser to my party in the although he is not alone in not having read them—but early 1990s, when he did the earliest work on the impact there you are! of inequality on health. That was revisited in 2005, The purpose of amendment 14 is to examine the issue when he came to the House and briefed several MPs. again and regularly. The equality assessments that we “The Spirit Level” confirmed what he had suspected in receive from the Government in the budgetary papers the 1990s and started the debate. The Prime Minister consist of one sentence telling us who will gain and who and the Leader of the Opposition have both accepted will lose. They do not address the issue of inequality. A that inequality is an issue that must be addressed. In wider debate is needed, however, and my amendment 2009, the Prime Minister quoted from Richard Wilkinson’s would ensure that that debate is revisited and kept in book in a major speech, demonstrating that the close focus as we determine our financial policies. There Conservative party at that time was keen to address have been previous attempts at this, and various reports some of the issues of inequality. He said that by various governmental bodies have partly addressed “among the richest countries it’s the more unequal ones that do the issue, but they have not been related to specific worse according to almost every quality of life indicator.” policy decisions or policy development. In his first major speech as leader, the Leader of the This is more of a plea. The previous Government, of Opposition said: which I had occasional criticisms, set up an excellent “I do believe that this country is too unequal and the gap initiative in founding the national equality panel under between rich and poor doesn’t just harm the poor, it harms us its chair, Professor John Hills. The panel still exists all.” within the Home Office, and it produced a major report That is based on the work in “The Spirit Level”. in January 2010 entitled, “An Anatomy of Economic The argument in “The Spirit Level”is straightforward— Inequality in the UK”. It was extremely detailed and that when people in the same social class, at the same brought together the evidence on economic inequality level of income and education, are compared across in our society. It was enlightening and depressing but at countries, those in more equal societies do better on the same time motivating. It was enlightening because it every measurement, be it health, mortality, obesity, exposed not only the scale of inequality but the trend teenage birth rates or mental illness. Their quality of growth over time, which, as I said, was only arrested in social relations is better too. Inequality is socially divisive, the previous decade, not reversed. It was depressing increasing the rate of homicide, hostility and racism. because, as the report stated, the sheer scale of inequalities The level of trust in unequal societies is lower than in in outcome—for instance, the sheer scale of differences societies that are more equal, and social capital is less in wealth—was shocking. The report even implied that —the engagement in civil society and even in political it might be impossible to create a cohesive society given processes. That is why we need to address the issue of the scale of inequality. inequality when we consider taxes and our financial strategy. The report identified a backdrop of widespread ignorance I realise that this has been a contentious debate, and I of the scale of inequality and the lack of awareness in have read the arguments made by the TaxPayers Alliance, society as a whole among the rich and the poor. It was which has tried to rebut Wilkinson and Pickett’s work, not just the poor who did not realise how unequal but I have also read the more recent independent research society was; it was also the richest. The report was studies that have simply reinforced the inequality argument. motivating because it demonstrated that public policy Whichever side of the argument Members fall, it is interventions can reduce inequality, particularly clearly an issue to be considered, and that is why I interventions around tax and welfare benefits. They can suggest that we look at taxation as a whole— narrow gaps between the rich and the poor and create a more cohesive and successful society. My plea, through Stephen Williams: I agree with virtually everything this amendment, is that before we agree tax levels, we that the hon. Gentleman has said. I have “The Spirit address the issue of inequality and that we bring forward Level” at home and it will be part of my summer a further report. I suggest that the national equality reading as I have not had time to read it yet. Does he at panel continues its work, assesses the taxation policies least acknowledge that one of the good things that the set out in the Budget and brings a report back to the coalition Government have done is reduce the exposure House so that we can be sure that the policies we are to income tax of the lowest paid in society, while at the pursuing are addressing inequality in our society. same time increasing capital gains tax? His Government I am obviously aware that through the Child Poverty did the reverse. Act 2010 the previous Government set up the Child Poverty Commission, the remit of which has now been 9.30 pm extended to include the issue of social mobility. I am sure that the commission could play a valuable role in John McDonnell: I believe that the hon. Gentleman assessing the tax decisions in the Finance Bill and their joined the House at the last election. impact on inequality. 1331 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1332

Kate Green: Does my hon. Friend agree that it would Chancellor is saying—that commitment is very considerably be an important opportunity to look again at the assertion less. As I understand it, it equates to less than half the that the countries with the highest levels of inequality original number affected. are also those with the least social fluidity and therefore In supporting amendment 30, I want to ask the at the role that tax could play in achieving the Government’s Minister directly whether he accepts that the Conservative social mobility objectives? manifesto misled the people of this country. Does he accept that, in his Budget statement in 2010, the Chancellor John McDonnell: That is particularly important given misled the House and the people of this country? Does that we are in if not a recession, a period of economic he also accept that the present number of people who inactivity in which the economy has been scraping will benefit from the £250 uplift is considerably lower along the bottom. We have 2.5 million unemployed, and than the number originally envisaged? In those nearly 1 million young people, also, 1.7 million people circumstances, and given the difficulties that we face in are in enforced short or part-time working. As Richard a debate of this nature on taxation, will he accept the Wilkinson demonstrated, during the ’80s, the social thrust of the amendment? Will the Government recommit psychological response was either fight or fright: fright to doing something to address low pay for those earning meant depression, alcohol and drugs, and fight often less than £21,000 a year? Will the Minister also ensure meant violence on our streets and, unfortunately, an that everyone earning under that amount will receive increase in violent crime. the £250, given that only some are doing so at present? We should be addressing those issues now, as we pass through this economic recession, which might last some Mr Gauke: It is a pleasure to respond to the debate. time. It behoves us, as we discuss taxation and if taxation Amendment 10 would require the Office for Budget can play a role in addressing inequality, to examine the Responsibility to report on the revenue raised by the matter in detail. The amendment simply tries to emphasise additional rate of income tax. Amendment 14, meanwhile, that inequality is an important issue that has to be seeks a report on the impact on inequality of all taxes, addressed and that all legislation needs to be reviewed and amendment 30 seeks to provide a £250 reduction in and assessed in the light of its impact and effectiveness the tax liability of all public sector workers earning less in addressing inequality. The amendment therefore calls than £21,000. for a report to be brought back to the House addressing I deal first with amendment 10. At the Budget, my that matter. In that way, we might at least acquire an right hon. Friend the Chancellor asked HMRC to assess understanding of the impact of taxation policies on the revenue raised by the additional rate. As I explained inequality, even if we might disagree on specific taxation during the extensive debate on this clause in Committee, policies. which the right hon. Member for Delyn (Mr Hanson) will well recall, HMRC will consider all the available Mr Love: I associate myself with the speech made by evidence on the impact of the additional rate, including my hon. Friend the Member for Hayes and Harlington data from the 2010-11 self-assessment returns, which (John McDonnell) and its focus on inequality. I want to will become available next year. Data from tax returns pick up on that focus, and on the discussion we had a are clearly essential in any assessment of the revenue few moments ago about the Government’s claim that raised, but of course they contain confidential taxpayer we are all in this together. I shall subject that to scrutiny information and are best reviewed by HMRC. It already through amendment 13, which was tabled by my right has the expertise in monitoring and evaluating tax hon. Friend the Member for Birkenhead (Mr Field). As measures and is resourced to do so in future. The Office my right hon. Friend said, and as has been said by those for Budget Responsibility has a different remit in producing on our Front Bench, the Conservative manifesto at the independent economic and fiscal forecasts, judging policy 2010 general election included a commitment to against the fiscal mandate and analysing the sustainability of the public finances. “freeze public sector pay for one year in 2011, excluding the one million lowest paid workers”. Kate Green: I understand what the Minister says, but It was announced in the 2010 Budget that there would does that not suggest that one useful role that the Office be a two-year pay freeze, except for those earning £21,000 for Budget Responsibility could fulfil would be to take a or less, who would receive an increase of at least £250 a dynamic look at the effect of the 50% tax rates on, for year. In his statement, the Chancellor went on to say example, the propensity of people to remain in the that 1.7 million public servants would benefit from that country and pay that tax and the longer-term impact on and receive the £250 for two years. the economy? In the Budget statement this year, the Chancellor had changed his tune somewhat. He said: Mr Gauke: I would not necessarily have put the hon. “I can confirm today that in the coming year all workers in the Lady down as an advocate of a more dynamic assessment armed forces, the prison service and the NHS, and teachers and of the tax measures, but perhaps I was mistaken in my civil servants, earning £21,000 a year or less will receive a pay understanding of her views. The purpose of the review uplift of £250.”—[Official Report, 23 March 2011; Vol. 508, that my right hon. Friend the Chancellor has announced c. 963.] will be to enable HMRC to see what has happened in That is considerably less than the commitment given in the first year. It is right to say that there are long-term the 2010 Budget, and it is different from—and, in a effects that will not necessarily be incorporated in that sense, considerably less than—the commitment given in first year’s data, and I think anyone with an understanding the Conservative manifesto. Some work has been done of these matters would acknowledge that. that shows that if the measures include only public It is perfectly reasonable to make the point that if the sector workers who are under ministerial control and 50p rate were to become a permanent feature of our tax subject to pay review bodies—that is in essence what the system, it could damage the UK’s competitiveness. That 1333 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1334 is a point that the noble Lord Mandelson appears to Clearly, the Government have taken great strides to support and I believe that the right hon. Member for tackle inequality in this country. Edinburgh South West (Mr Darling), who introduced the 50p rate as Chancellor, saw it as a temporary Kate Green: What steps have the Government taken measure, while Tony Blair has made it clear that he to reduce inequality by concentrating on taxation not at thinks the 50p rate is a mistaken policy—full stop. Our the bottom of the income spectrum but at the top? view, however, is that at this time, because of the sacrifices we are asking people to make, the 50p rate does play a role, but we want to analyse what revenue it brings in Mr Gauke: As was mentioned earlier, we have increased the short term and to gain an understanding of its capital gains tax rates from those that we inherited, and long-term effects. our income tax decreases have been focused on the low As the additional rate was introduced by the previous paid. That is an example of what we are trying to do. Government, I can perfectly understand why the right The point is how to ensure that we have a competitive hon. Member for Delyn is so interested in establishing tax system so that we have the growth that the economy whether it was a successful policy, but when he talks needs and that benefits all our constituents. about public scrutiny of Budget measures I must ask Let me turn to the report requested by the hon. him what public scrutiny was there when the 50p rate Member for Hayes and Harlington. was introduced? To what extent was the analysis published I draw his attention to the detailed analysis that the then, and to what extent was it published when the 10p Government have published on the impact of direct tax, rate of income tax was doubled? What information was indirect tax, tax credits and benefit reforms, which can put into the public domain at that point? As a Government, be found in annexe A to “Budget 2011”. The Government we have done much more on putting information have gone further than any previous Government in into the public domain by publishing our analysis. presenting distributional analysis of how changes to Announcements in this area will be made by the Chancellor taxes, tax credits and benefits affect households. We at the appropriate time. It is peculiar, however, to hear have published detailed analysis at Budget 2011, the the Opposition proposing more evidence-based policy spending review and the June Budget 2010. That analysis making only to reject the notion, it seems to me, that shows that the top decile sees the largest losses from the this Government should consider the evidence before cumulative impact of tax, tax credit and benefit reforms making any further commitments. introduced at Budget 2011 and previous fiscal events. In I turn now to amendment 14, which deals with the cash terms, the top decile loses more than twice as much impact of tax on inequality. I realise that the hon. as the ninth decile, and 10 times as much as the bottom Member for Hayes and Harlington (John McDonnell)has decile. That is the case if one looks at the overall impact his own views on inequality, some of which may not or in cash terms, as a percentage of net income, or necessarily be shared by his Front-Bench team. I thank across income or expenditure deciles. him for tabling this amendment, however, as it provides me with an opportunity to highlight the significant John McDonnell: Will the Government publish anything steps that the Government have taken in 13 months to with regard to the distribution of wealth—for example, address inequality through the tax system. the impact of such policies on the Gini co-efficient? First and foremost, the Government are committed to ensuring that the income tax system gives more support to those on low to middle incomes, and rewards Mr Gauke: We will make further announcements as the efforts of those who choose to work. That is why the and when necessary, but we are publishing much more June 2010 Budget announced a £1,000 increase in the information on distributional analysis than any previous income tax personal allowance for those aged under 65. Government have. It is right to do so, and to take steps A further £630 increase was announced in Budget 2011. to ensure that the House and the whole country can That will make the personal allowance £8,105 from next debate such matters with as much information presented year. Together, those increases will benefit 25 million in future. A striking contrast can be drawn with regard individuals, and take 1.1 million low-income individuals to one policy—the doubling of the 10p rate—about out of income tax—an important point that my hon. which the hon. Gentleman and the right hon. Member Friend the Member for Bristol West (Stephen Williams) for Birkenhead (Mr Field) had concerns. It was difficult highlighted. Basic rate taxpayers will gain by £210 per to obtain any information on that policy’s impact, year on average. That is part of our stated objective to although we have learned in recent weeks that much of increase the personal allowance to £10,000, with real the information about that was available to Ministers at terms steps in that direction every year. the time. Income tax is not the only area in which the Government Amendment 30 seeks to provide a one-off £250 reduction are tackling inequality. All local authorities in England in the tax liability of all public sector employees earning have voluntarily frozen or reduced their council tax in less than £21,000. In the June 2010 Budget, we announced 2011-12 and as a result have qualified to receive additional a two-year pay freeze for public sector workers earning Government grant equivalent to a 2.5% increase in their a full-time equivalent of £21,000. That is one of the band D council tax. We have committed £1.9 billion to many difficult choices that we have had to make to help ease the burden on motorists, including the 1p cut in put the UK’s public finances back on track, and it does fuel duty as opposed to the 6p increase under the plans not mean that we do not value the work done throughout of the previous Government. We are supporting pensioners the public sector. All Members know that those in the through the triple guarantee of state pensions being public sector work hard for the benefit of society. uprated by earnings, prices or 2.5%, whichever is highest. However, pay freezes of this sort save jobs. Given that The television licence will be frozen for the next six we are having to constrain public spending and given years. that the fiscal deficit requires cuts, a pay freeze will help 1335 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1336

[Mr Gauke] Mrs Mary Glindon (North Tyneside) (Lab): My own Tory council totally ignored the Chancellor’s directive to mitigate the effect of those cuts. Because we recognise to give that money, and in the debate on the budget that the freeze will be hardest on the lowest-paid public refused to give the £250 to our low-paid workers and sector workers, it was announced in the June Budget said it had put in place a balanced budget that was in that those earning a full-time equivalent of £21,000 or line with the Chancellor’s requests. What does the Minister less would receive an uplift of at least £250 in both years think of that? of the freeze. Both the Labour party’s manifesto at the time of the Mr Gauke: It is for local authorities to determine last general election and the 2009 pre-Budget report what they pay their employees, but we have given them announced a 1% increase for public sector workers the extra money to fund this, and we would like local across the board, apart from the armed services. No authorities to fulfil the objective that we are achieving distinction was made between the low paid and the high at national level. We do not control local authorities, paid. Under a Labour Government, none of those earning but we can provide them with the funding, and we did less than £21,000 a year—including nurses, teaching that. Our intention was that all low-paid workers would assistants, police community support officers and hospital receive the £250, but we do not—and should not—have porters—would be receiving a £250 increase. the ability to mandate local authorities to pay their workers, and that is currently up to them.

Mr Frank Field: What we said at the last general John McDonnell: When the Chancellor made his election is not very relevant, because we lost. The other statement, there were no caveats; it was a straightforward side won, and made a commitment in the Budget. The commitment to pay 1.7 million workers the £250. The Chancellor stood at the Dispatch Box where the Minister Chancellor gave a moral commitment; it therefore behoves is standing tonight, and said that 1.7 million low-paid the Government to intervene to ensure the Chancellor’s workers in the public sector would receive an increase of pledge is fulfilled to all 1.7 million workers, without any £250. What we now want to know is how many are caveats. being paid the £250, and, if 1.7 million are not being paid that sum, what steps the Government will take to Mr Gauke: As I said, where this is within our control, ensure that they are paid it. public sector workers earning less than £21,000 are getting the £250. Where it is not within our control, we Mr Gauke: The policy advocated by the Labour party have funded local authorities; they are funded to make when they were in government would have resulted in this payment, but it is ultimately for them to decide. none of these public sector workers receiving £250. Nic Dakin: As a former council leader, it occurs to me We will ensure that the policy on pay increases for that Governments were for ever putting conditions on low-paid local government workers is applied across the how money for local government should be spent, so civil service and to work forces with pay review bodies. surely that could be the case in this respect as well? That will include civil servants, NHS staff, teachers, members of the armed forces and those working in prisons. Many civil servants, nurses and prison officers, Mr Gauke: This Government believe in localism. I do and the armed forces, have already received the £250 not know whether the hon. Gentleman wants to return increase this year and can expect a further £250 increase to the days when local authorities were highly prescribed next year, but other work forces have responsibility for as to how they could spend money and everything was negotiating their own pay deals. Decisions on the pay of ring-fenced, but that is not how we want to operate. local government work forces are for local government employers, rather than central Government, to negotiate. Kate Hoey (Vauxhall) (Lab): The Minister said earlier Provision was made in the local government settlement that the Government had specifically given this money for local authorities to pay the £250 increase, but the to local authorities. If we are now hearing that fact remains that the decisions are made by local authorities. authorities—of all political persuasions, perhaps—such We gave them the opportunity to pursue the policy that as that of my hon. Friend the Member for North we are pursuing at national level, but it is ultimately for Tyneside (Mrs Glindon) have not been paying it as they them to decide how to pay their employees. should, will the Government take that money back? Mr Gauke: No. The funding settlement with local Mr Field: At the Dispatch Box, the Chancellor said authorities was made on the basis that the money would that 1.7 million low-paid workers in the public sector be available for them to pay to low-paid public sector would receive increases of £250 this year and next year. workers, but it is ultimately their decision. Will the Minister please tell the House how many of Returning to the amendment of the right hon. Member those 1.7 million have received the promised sum—promised for Birkenhead, I understand that it is intended to help by the Chancellor, not by me? enforce the Government’s policies, and I am sure he intends to be helpful. However, we do not believe that Mr Gauke: Where it is within the Chancellor’s control using the tax system is the right way to address this; we because the money is paid through central Government, do not think that will be practical. It would add complexity those low-paid public sector workers will receive the to the tax system, and I therefore urge him to withdraw £250. For those who work in local government, which is the amendment, especially as I know he will return to not within the control of central Government, we have this subject at a later date. provided local authorities with the funding to be able to meet that policy objective. Mr Frank Field rose— 1337 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1338

Mr Gauke: I have given way to the right hon. Gentleman Field, rh Mr Frank Meacher, rh Mr Michael on a number of occasions, and I think it is time to Fitzpatrick, Jim Meale, Sir Alan conclude. Flello, Robert Mearns, Ian Flint, rh Caroline Michael, rh Alun I have explained why the assessment of the additional Flynn, Paul Miliband, rh David rate of income tax requested by my right hon. Friend Fovargue, Yvonne Miliband, rh Edward the Chancellor must be prepared by Her Majesty’s Francis, Dr Hywel Miller, Andrew Revenue and Customs. I have explained that the analysis Gapes, Mike Mitchell, Austin the hon. Member for Hayes and Harlington seeks already Gardiner, Barry Morden, Jessica exists, and I have explained why the Government’s Gilmore, Sheila Morrice, Graeme (Livingston) approach to assisting the lowest-paid public workers is Glass, Pat Morris, Grahame M. the right one. There is no need for these amendments, so Glindon, Mrs Mary (Easington) I ask for them to be withdrawn. Godsiff, Mr Roger Mudie, Mr George Goggins, rh Paul Munn, Meg Mr Hanson: What is clear is that my right hon. Friend Goodman, Helen Murphy, rh Paul the Member for Birkenhead (Mr Field) has exposed Greatrex, Tom Murray, Ian Green, Kate Nandy, Lisa completely the fact that the Chancellor of the Exchequer Griffith, Nia Nash, Pamela promised one thing at the election and one thing in his Gwynne, Andrew O’Donnell, Fiona Budget, and has not delivered on that promise completely. Hain, rh Mr Peter Onwurah, Chi I know that we will return to that issue during the next Hamilton, Mr David Osborne, Sandra few weeks and months. Hamilton, Fabian Owen, Albert On the issue of the Office for Budget Responsibility, I Hanson, rh Mr David Pearce, Teresa wish to press amendment 10 to a Division and I urge my Harman, rh Ms Harriet Perkins, Toby right hon. and hon. Friends to support me in the Lobby. Healey, rh John Pound, Stephen Hendrick, Mark Raynsford, rh Mr Nick Question put, That the amendment be made. Hepburn, Mr Stephen Reed, Mr Jamie The House divided: Ayes 229, Noes 298. Heyes, David Reeves, Rachel Hillier, Meg Reynolds, Emma Division No. 313] [10 pm Hilling, Julie Reynolds, Jonathan Hodge, rh Margaret Riordan, Mrs Linda AYES Hodgson, Mrs Sharon Robinson, Mr Geoffrey Abbott, Ms Diane Clarke, rh Mr Tom Hoey, Kate Rotheram, Steve Abrahams, Debbie Clwyd, rh Ann Hopkins, Kelvin Roy, Mr Frank Ainsworth, rh Mr Bob Coaker, Vernon Hosie, Stewart Roy, Lindsay Alexander, rh Mr Douglas Coffey, Ann Howarth, rh Mr George Ruane, Chris Alexander, Heidi Connarty, Michael Irranca-Davies, Huw Sarwar, Anas Ali, Rushanara Cooper, Rosie James, Mrs Siân C. Seabeck, Alison Allen, Mr Graham Cooper, rh Yvette Jamieson, Cathy Sharma, Mr Virendra Ashworth, Jon Corbyn, Jeremy Jarvis, Dan Sheerman, Mr Barry Austin, Ian Crausby, Mr David Johnson, rh Alan Sheridan, Jim Bailey, Mr Adrian Creagh, Mary Johnson, Diana Shuker, Gavin Bain, Mr William Creasy, Stella Jones, Helen Skinner, Mr Dennis Balls, rh Ed Cryer, John Jones, Mr Kevan Slaughter, Mr Andy Banks, Gordon Cunningham, Alex Jones, Susan Elan Smith, rh Mr Andrew Barron, rh Mr Kevin Cunningham, Mr Jim Joyce, Eric Smith, Angela Beckett, rh Margaret Cunningham, Tony Kaufman, rh Sir Gerald Smith, Nick Begg, Dame Anne Curran, Margaret Keeley, Barbara Smith, Owen Bell, Sir Stuart Dakin, Nic Kendall, Liz Spellar, rh Mr John Benn, rh Hilary Danczuk, Simon Lammy, rh Mr David Straw, rh Mr Jack Benton, Mr Joe Darling, rh Mr Alistair Lavery, Ian Stringer, Graham Berger, Luciana Davidson, Mr Ian Leslie, Chris Stuart, Ms Gisela Betts, Mr Clive Davies, Geraint Lewis, Mr Ivan Sutcliffe, Mr Gerry Blears, rh Hazel De Piero, Gloria Lloyd, Tony Tami, Mark Blenkinsop, Tom Denham, rh Mr John Llwyd, rh Mr Elfyn Thomas, Mr Gareth Blunkett, rh Mr David Dobson, rh Frank Love, Mr Andrew Thornberry, Emily Bradshaw, rh Mr Ben Docherty, Thomas Lucas, Caroline Timms, rh Stephen Brennan, Kevin Donohoe, Mr Brian H. Lucas, Ian Trickett, Jon Brown, rh Mr Gordon Doran, Mr Frank MacNeil, Mr Angus Brendan Turner, Karl Brown, Lyn Dowd, Jim Mactaggart, Fiona Twigg, Stephen Brown, rh Mr Nicholas Doyle, Gemma Marsden, Mr Gordon Umunna, Mr Chuka Brown, Mr Russell Dromey, Jack McCabe, Steve Vaz, rh Keith Bryant, Chris Dugher, Michael McCann, Mr Michael Vaz, Valerie Buck, Ms Karen Durkan, Mark McCarthy, Kerry Watts, Mr Dave Burden, Richard Eagle, Ms Angela McClymont, Gregg Weir, Mr Mike Burnham, rh Andy Eagle, Maria McDonnell, John Whiteford, Dr Eilidh Byrne, rh Mr Liam Edwards, Jonathan McFadden, rh Mr Pat Whitehead, Dr Alan Campbell, Mr Alan Efford, Clive McGovern, Alison Wicks, rh Malcolm Campbell, Mr Ronnie Elliott, Julie McGovern, Jim Williams, Hywel Caton, Martin Engel, Natascha McGuire, rh Mrs Anne Williamson, Chris Chapman, Mrs Jenny Esterson, Bill McKechin, Ann Wilson, Phil Clark, Katy Farrelly, Paul McKinnell, Catherine Winnick, Mr David 1339 Finance (No. 3) Bill4 JULY 2011 Finance (No. 3) Bill 1340

Winterton, rh Ms Rosie Wright, Mr Iain Hinds, Damian Newmark, Mr Brooks Wishart, Pete Hoban, Mr Mark Newton, Sarah Woodcock, John Tellers for the Ayes: Hollingbery, George Nokes, Caroline Woodward, rh Mr Shaun Graham Jones and Hollobone, Mr Philip Nuttall, Mr David Wright, David Lilian Greenwood Holloway, Mr Adam O’Brien, Mr Stephen Hopkins, Kris Offord, Mr Matthew NOES Horwood, Martin Ollerenshaw, Eric Howarth, Mr Gerald Ottaway, Richard Adams, Nigel Davies, David T. C. Howell, John Paice, rh Mr James Afriyie, Adam (Monmouth) Huhne, rh Chris Parish, Neil Aldous, Peter Davies, Glyn Hunt, rh Mr Jeremy Patel, Priti Alexander, rh Danny Davies, Philip Huppert, Dr Julian Pawsey, Mark Amess, Mr David de Bois, Nick Hurd, Mr Nick Penning, Mike Andrew, Stuart Dinenage, Caroline James, Margot Penrose, John Arbuthnot, rh Mr James Djanogly, Mr Jonathan Javid, Sajid Percy, Andrew Bacon, Mr Richard Dodds, rh Mr Nigel Jenkin, Mr Bernard Perry, Claire Baker, Norman Dorrell, rh Mr Stephen Johnson, Gareth Phillips, Stephen Baker, Steve Doyle-Price, Jackie Johnson, Joseph Pincher, Christopher Baldry, Tony Drax, Richard Jones, Andrew Poulter, Dr Daniel Baldwin, Harriett Duddridge, James Jones, Mr David Prisk, Mr Mark Barker, Gregory Duncan Smith, rh Mr Iain Jones, Mr Marcus Pugh, John Baron, Mr John Ellis, Michael Kawczynski, Daniel Raab, Mr Dominic Barwell, Gavin Ellison, Jane Kennedy, rh Mr Charles Randall, rh Mr John Bebb, Guto Elphicke, Charlie Kirby, Simon Redwood, rh Mr John Beith, rh Sir Alan Eustice, George Laing, Mrs Eleanor Rees-Mogg, Jacob Bellingham, Mr Henry Evans, Graham Lamb, Norman Reevell, Simon Benyon, Richard Evans, Jonathan Lancaster, Mark Reid, Mr Alan Beresford, Sir Paul Evennett, Mr David Lansley, rh Mr Andrew Robathan, rh Mr Andrew Berry, Jake Fabricant, Michael Latham, Pauline Robertson, Hugh Bingham, Andrew Featherstone, Lynne Laws, rh Mr David Robertson, Mr Laurence Binley, Mr Brian Field, Mr Mark Leadsom, Andrea Rogerson, Dan Birtwistle, Gordon Foster, rh Mr Don Lee, Jessica Rudd, Amber Blackman, Bob Francois, rh Mr Mark Lee, Dr Phillip Russell, Bob Blunt, Mr Crispin Freeman, George Lefroy, Jeremy Rutley, David Boles, Nick Freer, Mike Leigh, Mr Edward Sanders, Mr Adrian Bone, Mr Peter Fullbrook, Lorraine Leslie, Charlotte Sandys, Laura Bottomley, Sir Peter Fuller, Richard Letwin, rh Mr Oliver Scott, Mr Lee Bradley, Karen Garnier, Mr Edward Lewis, Brandon Selous, Andrew Brake, Tom Garnier, Mark Lewis, Dr Julian Shapps, rh Grant Bray, Angie Gauke, Mr David Liddell-Grainger, Mr Ian Sharma, Alok Brazier, Mr Julian George, Andrew Lilley, rh Mr Peter Shepherd, Mr Richard Brine, Mr Steve Gibb, Mr Nick Lloyd, Stephen Simmonds, Mark Brokenshire, James Gilbert, Stephen Lopresti, Jack Simpson, David Brooke, Annette Gillan, rh Mrs Cheryl Loughton, Tim Simpson, Mr Keith Bruce, Fiona Goldsmith, Zac Luff, Peter Skidmore, Chris Bruce, rh Malcolm Goodwill, Mr Robert Lumley, Karen Smith, Miss Chloe Buckland, Mr Robert Gove, rh Michael Main, Mrs Anne Smith, Henry Burley, Mr Aidan Graham, Richard McCartney, Jason Smith, Julian Burns, rh Mr Simon Grant, Mrs Helen McCartney, Karl Smith, Sir Robert Burrowes, Mr David Gray, Mr James McCrea, Dr William Soames, Nicholas Burstow, Paul Grayling, rh Chris McIntosh, Miss Anne Soubry, Anna Burt, Lorely Greening, Justine McLoughlin, rh Mr Patrick Spelman, rh Mrs Caroline Byles, Dan Grieve, rh Mr Dominic McPartland, Stephen Spencer, Mr Mark Cable, rh Vince Griffiths, Andrew McVey, Esther Stephenson, Andrew Cairns, Alun Gyimah, Mr Sam Mensch, Louise Stevenson, John Campbell, rh Sir Menzies Hames, Duncan Menzies, Mark Stewart, Bob Carmichael, rh Mr Alistair Hammond, rh Mr Philip Metcalfe, Stephen Stewart, Rory Carmichael, Neil Hammond, Stephen Miller, Maria Streeter, Mr Gary Carswell, Mr Douglas Hancock, Mr Mike Mills, Nigel Stride, Mel Cash, Mr William Harper, Mr Mark Mitchell, rh Mr Andrew Stuart, Mr Graham Chishti, Rehman Harrington, Richard Mordaunt, Penny Stunell, Andrew Clappison, Mr James Harris, Rebecca Morgan, Nicky Sturdy, Julian Clark, rh Greg Hart, Simon Morris, Anne Marie Swales, Ian Clarke, rh Mr Kenneth Harvey, Nick Morris, David Swayne, Mr Desmond Clifton-Brown, Geoffrey Haselhurst, rh Sir Alan Morris, James Swinson, Jo Coffey, Dr Thérèse Hayes, Mr John Mosley, Stephen Syms, Mr Robert Collins, Damian Heald, Oliver Mowat, David Teather, Sarah Colvile, Oliver Heath, Mr David Mulholland, Greg Timpson, Mr Edward Cox, Mr Geoffrey Heaton-Harris, Chris Munt, Tessa Tomlinson, Justin Crabb, Stephen Hemming, John Murray, Sheryll Tredinnick, David Crockart, Mike Henderson, Gordon Murrison, Dr Andrew Turner, Mr Andrew Crouch, Tracey Hendry, Charles Neill, Robert Tyrie, Mr Andrew 1341 Finance (No. 3) Bill 4 JULY 2011 1342

Uppal, Paul Willetts, rh Mr David Musculoskeletal Diseases Vara, Mr Shailesh Williams, Mr Mark Vickers, Martin Williams, Roger Motion made, and Question proposed, That this House Villiers, rh Mrs Theresa Williams, Stephen do now adjourn.—(Mr Newmark.) Walker, Mr Charles Williamson, Gavin Walker, Mr Robin Willott, Jenny Wallace, Mr Ben Wilson, Mr Rob 10.16 pm Ward, Mr David Wollaston, Dr Sarah Graham Stringer (Blackley and Broughton) (Lab): Watkinson, Angela Wright, Jeremy The genesis of this debate was four reports into Weatherley, Mike Wright, Simon musculoskeletal disorders from about two years ago. Wharton, James Yeo, Mr Tim The first was from the National Audit Office, one was Wheeler, Heather Zahawi, Nadhim the King’s college report, there was another from the White, Chris Tellers for the Noes: umbrella organisation, the Arthritis and Musculoskeletal Whittaker, Craig Bill Wiggin and Alliance, and the final one was the clinical advice from Whittingdale, Mr John Mr Philip Dunne the National Institute for Health and Clinical Excellence. Those four reports led to an excellent debate in Westminster Question accordingly negatived. Hall on 19 January 2010 at column 1WH of the Official Ordered, That further consideration be now adjourned. Report. I advise the Minister to take a look at that hour —(Mr Newmark.) and a half debate in which many more points were Bill to be further considered tomorrow. made than—[Interruption.] Mr Speaker: Order. I apologise for interrupting. There Business without Debate are Members behind the Chair making a frightful racket and it should not happen. They should leave the Chamber TREASURY and show some courtesy to the Member who is developing Ordered, his speech. I apologise to the hon. Gentleman who should now resume. That Mr Chuka Umunna be discharged from the Treasury Committee and Tom Blenkinsop be added.—(Geoffrey Clifton-Brown, on behalf of the Committee of Selection.) Graham Stringer: Thank you, Mr Speaker. Many more points were made in that debate than it is possible to make in a half hour debate in this Chamber. What the then Government were essentially being asked was to take action to ensure better clinical outcomes for the money being spent on musculoskeletal disorders. The real ask from the community was for a clinical director or so-called tsar. In a sense, however, the most important ask is not that, but that there is an outcome strategy that improves the outcome for people suffering from musculoskeletal disorders. In many ways, in spite of those four reports and the debates that have taken place since, the situation nationally remains much the same. The statistics are worth going through in some detail. The amount of money spent on musculoskeletal disorders is large—£4.76 billion, which is the fourth-largest category spend within the NHS. That money is spent on 25% of the population as one in four people have a musculoskeletal disorder. That is 9.6 million adults and 12,000 children. Many people think that arthritis and rheumatism affect only older people, but that is not true. They can affect people of any age, as is perfectly illustrated by the fact that 12,000 children suffer from it. In terms of costs, the magnitude of the issue is that one visit in every four to a general practitioner concerns musculoskeletal disorders and 10.8 million working days are lost because of such disorders. Those are the statistics. The problem is that there is no equality of outcome and no sense that when money is put into the system outcomes improve. About two years ago, partly in response to the reports, the previous Government put £600 million more into the system, but there was no noticeable improvement in outcomes. The NHS atlas of variation shows a threefold difference in spending in different parts of the country, but it does not relate to differences in incidence, prevalence or severity of the problem; nor does it necessarily relate to better outcomes. Although there is a threefold difference generally, the difference for rheumatoid arthritis is five 1343 Musculoskeletal Diseases4 JULY 2011 Musculoskeletal Diseases 1344

[Graham Stringer] how high-quality musculoskeletal services can deliver improvements in the outcomes measured in the NHS times, for hip replacements 14 times, cemented hips outcomes framework, particularly gaining independence 16 times and for uncemented hips it is 30 times. Clearly and returning to work, as my hon. Friend the Member something unusual is happening in that area of the for Scunthorpe (Nic Dakin) pointed out. service and it requires examination. The useful slogan, “no decision about me without Quite simply, current services do not ensure swift me”, should also be a guiding factor, enabling patient treatment of arthritis, which in many cases is vital. I involvement and shared decision making at all points in shall give an example from one category of disorder: the patient pathway and, in particular, encouraging rheumatoid arthritis. People think it is the same as any better self-management and at the same time improving other arthritis but it is not; it is an auto-immune disease general public awareness of musculoskeletal conditions. and few people suffer from it. Many GPs see only one The information revolution is also relevant for setting new case every year or so, which is surprising but true. out and making public the key sources of data on the Because GPs do not see such cases regularly, patients performance of and expenditure on musculoskeletal often have to visit their GP about three times before services and improving our understanding of outcomes they receive treatment, but early treatment is vital. The beyond hip and knee replacements, which account for time before treatment means not only pain but also that only 20% of expenditure. There must be co-ordinated the rheumatoid arthritis is not cured. Since a third service delivery, joining up delivery across the NHS and generation of drugs—the biologics—has been developed, social care services. Commissioning should describe the the disease is curable in a large number of cases if measures of success that will be used to assess clinical treatment is given quickly enough. Even if the disease commissioning groups and set out the support that will is not curable, what matters is getting the patient to a be provided to commissioners. Training for GPs in multidisciplinary team of physiotherapists, consultant musculoskeletal medicine is also important. We must surgeons, doctors and community nurses as quickly as enhance the currently small component in training to possible. support GPs in providing effective and timely treatment and care to patients, as well as informing their Nic Dakin (Scunthorpe) (Lab): My hon. Friend is commissioning decisions. setting out his stall powerfully. It is a difficult subject. ARMA’s request of 18 months ago for a direct Does he agree that early intervention is good not only musculoskeletal service was reasonable. Even if there is for the patient, because they can recover faster or get to to be no service director, ARMA’s requests are quite grips with the condition, but also for the economy, because reasonable, because surely the Minister cannot be satisfied the person is more likely to be able to continue active with how services are being delivered across the country, employment, and for the health service because early with different inputs and massively different outputs. intervention is likely to cost less in the longer term. I finish by quoting Professor Emery of Leeds university. He was talking about rheumatoid arthritis, but this Graham Stringer: Precisely. I mentioned the total applies to any of these conditions. He said that it is the number of lost days. In the vast majority of cases of “most common treatable disability”. Essentially, it is rheumatoid arthritis, people stop working two years not treated as well as it should be and the disability after diagnosis, but if diagnosis and treatment are earlier could be removed. I look forward to the Minister’s it is most likely that even if the person is not cured they response, and hopefully he will respond positively to could continue working for longer. what should be a reasonable way forward. The Arthritis and Musculoskeletal Alliance—ARMA—is calling for a number of things, but before I put its case I 10.29 pm note the following points. The fact that there are unsatisfactory differences in inputs and outcomes is not The Minister of State, Department of Health (Paul completely an accident. By and large, the services have Burstow): I congratulate the hon. Member for Blackley not had the attention they deserve. I am not making a and Broughton (Graham Stringer) on securing the debate party political point; the situation has been going on for and bringing to the House’s attention an important a number of years and unfortunately it continues. The issue. He has rehearsed the statistics, but behind them quality and outcomes framework contains no indicator are people with real lives, in some cases suffering in for musculoskeletal conditions. Why not? The agony and having difficulty getting on with their lives as musculoskeletal services framework of 2006 lacked a consequence of musculoskeletal disease. leadership and was largely ignored by the centre in the Let me make it clear from the outset that the Government NHS, GP training in musculoskeletal conditions remains fully recognise the impact that musculoskeletal disease poor, despite the evidence I have just given about the has on individuals and society as a whole and that, importance of GPs recognising precisely what form of although there are excellent services in some parts of musculoskeletal disorder a patient has, and only two of the country, there is still far too much variation in the the NICE policy standards announced so far relate to availability of services and the outcomes they secure for musculoskeletal conditions—for hip fractures and people. This debate is about how we will respond to that osteoarthritis—out of the vast range of some 200 conditions evidence and to the concerns that the hon. Gentleman covered by this generic term. has brought to the House tonight, and about how we ARMA is calling for an outcomes strategy as a vital will deliver the change on the ground that we all want to first step in addressing the current failures in provision see as constituency Members. of treatment and care for people with these disorders. The hon. Gentleman argued for a national outcomes What would that strategy look like? It would cover a strategy on musculoskeletal conditions. He made some number of areas, including outcomes, demonstrating important points and I will try to address directly some 1345 Musculoskeletal Diseases4 JULY 2011 Musculoskeletal Diseases 1346 of the concerns that sit behind them. The 34 organisations the frustration that was felt there. Although the symposium in the Arthritis and Musculoskeletal Alliance, which he found that a number of excellent services had been has spoken on behalf of this evening, make some important developed, incorporating the vision of services integrated points. They have been in discussions with the Department around the needs of patients, which this Government of Health about their concerns over how we will ensure strongly endorse, interestingly it also found that those that the differences between services around the country services were very different from one another. Some are addressed so that people get access to the right were still based in hospitals, some were in the community. services at the right time. Some were a see-and-treat type of service, but others On 19 April, officials wrote back to the alliance to had triage-based systems to refer people on to the most confirm that we would appropriate service. However, as the hon. Gentleman “ask the National Quality Board to look at this area as a identified, there was still a patchiness to the provision. potential topic for a national outcomes strategy”. The hon. Gentleman touched on the need to integrate By that, we mean that it will consider whether there are services, which the Government are determined to drive problems in our approach to these conditions that go forward in order to deliver better results for patients. wider than the NHS. It is important to understand that We need to do that at the same time as acknowledging an outcomes strategy produced by the Department of that people want to be able to exercise the maximum Health looks out from the NHS to wider impacts on possible control and choice over their treatment. We set health and considers how those might be influenced to out our course clearly last year in the White Paper on improve health outcomes for people. It will also look at the NHS, and just recently in the response to the NHS what needs to be done about efforts that are already in Future Forum we made it clear that we would be hand, to ensure that the NHS is more responsive to placing explicit duties on clinical commissioning groups patients’ needs and that there is an uptake of good to promote integrated services for patients. We will also clinical practice. further strengthen existing duties planned for the NHS commissioning board. We will amend the proposed I do not believe that the case has been fully made for duty of Monitor to make it clear that its core duty is to such an outcomes strategy, and I want to explain to the promote and protect the interests of patients, rather hon. Gentleman, and through him to members of the than to promote competition as an end in itself. alliance, why that is. A number of steps have been taken in the past 12 months that have moved us on significantly We intend those amendments, taken together, to create from the debate that the hon. Gentleman spoke about a strong incentive for local commissioners to take forward at the beginning of his remarks. I understand that the more integrated services, which I think all of us in the National Quality Board will consider its future work House wish to see delivered for people with musculoskeletal programme at its meeting this month. It will decide disorders and other patients. However, we have to go whether it is appropriate to commission the necessary beyond just health integration and ensure that we achieve work to look at the case for a Department-led outcomes integration across health and social care. The hon. strategy. I assure the hon. Gentleman that I will ensure Gentleman was right about the concept of “no decision that not only this debate but the debate that took place about me, without me”. We need to ensure that it is in 2010 are cited by the members of that board. hard-wired into the way the NHS works. I will spend a little time describing what is happening now. The hon. Gentleman referred to the musculoskeletal Nic Dakin: The Minister has spelled out the framework that the Department published in 2006. He Government’s position carefully. Will they publish a spoke about the impact of that strategy, and I will say response to the Public Accounts Committee’s report, more about that in a moment. The document was which responded to the National Audit Office, in taking developed in collaboration with a wide range of patient forward the matter of musculoskeletal disease? and professional organisations. It set out a vision for services based on the concept of an integrated care Paul Burstow: As ever, there is a clear obligation on pathway—exactly the sort of pathway that the hon. us to respond to reports and recommendations of the Gentleman talked about. The clear aim was to help the Public Accounts Committee, which we happily fulfil. I NHS to organise services so that patients could access a am sure that we will do that if we have not already done variety of primary and secondary care services according so, and I am grateful to the hon. Gentleman for asking. to their need, including physiotherapy, clinical psychology, I turn to the specific issue of outcomes. The Government specialist rheumatology and surgery, and have a seamless believe that a focus on outcomes is key to how we can transition from one service to another. drive improvements in the NHS. It is also how we can The model proposed depended on the idea of a hold the NHS to account. That was why we published multidisciplinary clinical assessment and treatment service, the NHS outcomes framework, to which the hon. Member or CATS, for musculoskeletal services. That would bring for Blackley and Broughton referred, in January. It has together clinicians from primary and secondary care, five key domains that are populated by measures that assess patients’ needs, treat them locally where possible, will be used to judge outcomes. They are preventing and where necessary refer them on for specialist hospital people from dying prematurely; enhancing quality of care. The document recognised that different health life for people with long-term conditions; helping people communities would implement the framework in different to recover from episodes of ill health or following ways, and that it should be possible in some circumstances injury; ensuring that people have a positive experience to offer patients a choice of pathways. of care; and treating and caring for people in a safe Three years after the publication of that document, environment and protecting them from avoidable harm. in spring 2009, the British Institute of Musculoskeletal The second domain, improving the quality of life of Medicine held a symposium to review progress in people with long-term conditions, is clearly the most implementing the framework. Today’s debate echoes relevant to the debate. It includes an instrument known 1347 Musculoskeletal Diseases4 JULY 2011 Musculoskeletal Diseases 1348

[Paul Burstow] and others on the decisions they have made. We intend it to be used by commissioners in that way, to drive as EQ-5D, which is to measure people’s quality of life in improvements in the service. a number of respects including mobility, pain and the I welcome the fact that the hon. Gentleman sees ability to carry out the usual activities of daily living. quality standards as a useful tool. NICE has already The inclusion of that measure was the result of feedback developed a quality standard for osteoarthritis, and we from the public consultations last year on the outcomes are looking at the scope for the development of a framework. It is clear from the analysis done by the quality standard in pain management. We are about to Department’s economists that almost half the total see a further consultation on a range of subjects for the burden of disease, as measured by that instrument, is next batch of clinical quality standards. We have the due to musculoskeletal disease. hon. Gentleman’s suggestions on a musculoskeletal In other words, the inclusion of that instrument in condition standard in mind. the NHS outcomes framework highlights clearly the This short but timely debate has highlighted an important importance of musculoskeletal conditions to the population, area of health policy in which we need significant and why commissioners and clinicians need to focus improvements on the ground. The evidence and clinical their efforts on designing and delivering care pathways advice to provide excellent services is there, but we need of the type outlined in the framework in 2006. It shows clinicians to use their leadership role in the NHS to how that can have a significant impact on the aggregate drive change, and we need to take the opportunities of score in the outcomes framework on enhanced quality changes in clinical and commissioning leadership to of life for people with long-term conditions. It will not drive forward those reforms. I shall certainly ensure that be possible to achieve success, as set out in the framework, the debate is referred to those who need to take such without making progress in that way. There is a powerful decisions, and I thank the hon. Gentleman for bringing new lever in the system as a consequence of the outcomes the matter to the House tonight. framework. Question put and agreed to. The hon. Gentleman talked about the atlas of variation, which is also a powerful tool for identifying outliers and 10.41 pm allowing the appropriate challenge of commissioners House adjourned. 73WS Written Ministerial Statements4 JULY 2011 Written Ministerial Statements 74WS

The plan outlines the systems and structures which Written Ministerial are established and details the roles and responsibilities of Ministers and officials during an outbreak of disease Statements and also highlights the work undertaken on preparedness for an outbreak. It replaces DEFRA’s “Contingency Plan for Exotic Monday 4 July 2011 Animal Diseases” which was laid before Parliament on 15 December 2009. DEFRA’s contingency plan is very much a “living BUSINESS, INNOVATION AND SKILLS document”. It will be subject to ongoing revision taking on the latest developments in science, research, and epidemiological modelling together with lessons identified Extraordinary EU Competitiveness Council from outbreaks. (27 June 2011) To meet the provisions of the Animal Health Act, the plan will also be subject to annual review. The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey): My noble Friend the Under-Secretary of State for Business, Innovation and Skills, Baroness Wilcox, has today made FOREIGN AND COMMONWEALTH OFFICE the following statement: I represented the UK at an extraordinary EU Competitiveness Council which took place in Luxembourg on 27 June 2011. Consular Evacuation Procedures The presidency had organised this extra Council to reach agreement of general approaches for two draft EU regulations on the creation of an EU unitary patent under the enhanced co-operation The Secretary of State for Foreign and Commonwealth process (involving 25 member states); and on the EU unitary patent language translation arrangements. The UK had successfully Affairs (Mr William Hague): In the light of the challenges lobbied the presidency to postpone these decisions until this posed by the evacuation of British nationals from Libya, Council in June to allow time for parliamentary scrutiny. I announced on 23 February that the Foreign and At the Council the Hungarian EU presidency and the Commission Commonwealth Office would review its arrangements repeated their support for the unitary patent. In my intervention I for leading the evacuations of British nationals in a supported the general approaches for both draft EU regulations crisis. I said that the review would consider the contingency and I commented on two particular elements of the proposals—first arrangements that the Foreign and Commonwealth that the system for the distribution and renewal of fees will need Office in London and all posts have in place, and the to be administered in a way that does not impose unjustified extra triggers and procedures for moving to a crisis footing costs; and secondly that future implementation would need to be and mounting civilian and military evacuation operations. legally robust. All the 25 member states in the enhanced co-operation process unanimously confirmed their support for both general That review is now complete and I am today placing approaches and they were therefore agreed. The presidency and a copy in the Library of the House. I have given the Commission however confirmed that work would need to instructions that its recommendations should be continue on the details of the proposals over the next six months, implemented in full by 31 December 2011. under the forthcoming Polish EU presidency. The Foreign and Commonwealth Office, working There were also three short any other business items taken without any discussion among member states. These comprised closely with the Ministry of Defence and key allies and information given by the presidency about EU energy research partners, evacuated over 800 British nationals and over activities and confirmation that agreement had been reached on 1,000 other nationals from Libya in the space of a the Euratom framework research programme and on the EU number of days. This was a significant achievement but consumer rights directive. the operation presented huge challenges because of the volatile and deteriorating situation in Libya. It stretched the FCO’s crisis response capability, taking place as it ENVIRONMENT, FOOD AND RURAL AFFAIRS did against the backdrop of a wider and unfolding crisis in the middle east and north Africa region that had already seen evacuations of British nationals from Tunisia Exotic Notifiable Diseases of Animals and Egypt. The earthquake in New Zealand, with British nationals among the fatalities, added to the pressure. Both the Prime Minister and I have told the House The Minister of State, Department for Environment, that there are lessons we would wish to learn from this Food and Rural Affairs (Mr James Paice): I have today evacuation and the Foreign and Commonwealth Office laid before Parliament the “National Contingency Plan has already acted on a number of the recommendations for Exotic Notifiable Diseases of Animals” in accordance in the review, including: extending the range of suppliers with Section 14A of the Animal Health Act 1981 (as who we can call on to provide charter flights to support amended); this provision came into force on 24 March any assisted departure or evacuation; increasing staffing 2003. in the Foreign and Commonwealth Office’s crisis This plan sets out the operational response arrangements management department; enhancing crisis training for DEFRA will put in place to deal with any occurrence of staff; making ever greater use of both traditional and foot and mouth disease, avian influenza or Newcastle digital channels to communicate with British nationals disease. The plan is also applicable to all other exotic in a crisis; and developing a better crisis management diseases of animals. command and control structure within the FCO. 75WS Written Ministerial Statements4 JULY 2011 Written Ministerial Statements 76WS

Implementing the findings of the review will help The IICD has made arrangements for the safe retention further strengthen the FCO’s crisis response function. of the records of decommissioned arms by the United The security and well-being of British nationals is always States Department of State in Washington who will our absolute priority in a crisis. The evacuation of hold them securely. British nationals from Libya was the most complex Sadly, as recent violent events revealed, there remain FCO-led evacuation in recent years. Learning the lessons those who have rejected peace and politics and who from recent events will ensure we are ready for the want to drag Northern Ireland back to its troubled different circumstances the next crisis will present. past. However, the majority of paramilitary organisations have decided to pursue their goals by political and HEALTH democratic means exclusively. The IICD’s final report is a valuable insight into how this has been achieved. Northern Ireland has made great strides towards stable, Commission on the Funding of Care and Support local democracy and I wish to place on record my immense gratitude to the Commission and their staff The Secretary of State for Health (Mr Andrew Lansley): for their enormous contribution and longstanding The final report of the Independent commission on the commitment to their work. funding of care and support, “Fairer Care Funding”, has been published today and a copy has been placed in the Library. Copies are available to hon. Members from Independent Monitoring Commission (Final Report) the Vote Office and to noble Lords from the Printed Paper Office. I shall make an oral statement later today. The Secretary of State for Northern Ireland (Mr Owen Paterson): The 26th and final report of the Independent Monitoring Commission (IMC), prepared at the request NORTHERN IRELAND of the British and Irish Governments, has been published today by both Governments. I am laying the report Independent International Commission on before Parliament. Decommissioning (Final Report) The IMC was set up in 2004. The commission’s remit was to independently monitor and report on paramilitary The Secretary of State for Northern Ireland (Mr Owen activities, on security normalisation, and any claims Paterson): The final report of the Independent International that any Minister or party in the Northern Ireland Commission on Decommissioning (IICD), prepared at Assembly was not committed to democratic means. the request of the British and Irish Governments, has During the seven years over which the IMC carried been published today by both Governments. I have out this role, the level and nature of paramilitary activity placed a copy of the report in the Library. has changed significantly.Operation Banner was successfully This final report reflects on the IICD’s 12 years in completed and the political situation in Northern Ireland operation from September 1997 to the ending of the has been transformed with devolution now complete decommissioning amnesty in February 2010. It provides and the Northern Ireland Assembly entering its second an account of arms decommissioned by paramilitary term. organisations, a summary of key factors that enabled The IMC has played a significant part in supporting the commission to deliver its objectives and highlights and enabling historic changes over the years. Its the lessons learnt. independence has been vital in gaining the confidence The commission’s remit was to provide a mechanism, of all those it worked with and is clearly illustrated in entirely independent of Government, to execute the what they have delivered. I would like to place on record decommissioning of paramilitary arms in a manner my deep gratitude to the IMC commissioners and staff that rendered them permanently inaccessible or unusable. for their sustained commitment over the past seven The task was difficult and the commissioners worked years. tirelessly to achieve it. There is no doubt that their The commission’s final report documents the changes independence and high level of commitment were crucial that have taken place during this period and provides an in gaining the confidence of paramilitary organisations. assessment of the factors that helped it in delivering its The resulting major acts of decommissioning they secured remit and the lessons learnt. It is a valuable document have contributed to making Northern Ireland a more which will be of interest to those who are, have been and peaceful, stable and inclusive society. continue to be involved in the peace and political process Many will be expecting an inventory to be included in in Northern Ireland as well as to those who are involved the report. The IICD did not provide the British and in conflict transformation more widely. I am grateful to Irish Governments with an inventory when they submitted the IMC for its detailed and thorough report. their final report. This was rightly a decision taken As the IMC themselves note, while the commission independently by the commission. The commissioners has completed its remit, the security position In Northern say in their final report that Ireland is far from ideal. As the violence in a part of “providing details now of what paramilitary arms have been put East Belfast recently revealed, there remain those who beyond use, could, in our opinion, encourage attacks on those have rejected peace and politics and who actively work groups which have taken risks for peace. This is true of both to undermine it. The Government remain committed to loyalists and republican paramilitary groups. We would not wish, inadvertently, to discourage future decommissioning events by doing all they can to end violence and to enable all the groups that are actively engaged today, nor to deter groups that people of Northern Ireland to live peacefully and safely have decommissioned their arms from handing over any arms as is their right. I am conscious that Parliament and the that may subsequently come to light” (paragraph 30). public will wish to be kept informed of progress on a 77WS Written Ministerial Statements4 JULY 2011 Written Ministerial Statements 78WS regular basis. I therefore intend to make statements to Last week I visited our providers in the north-west Parliament every six months summarising the threat, in and was impressed by their commitment and drive to keeping with the time scales on which the IMC used to deliver. I will be visiting all Work programme providers issue its reports. through the course of the year. I look forward to seeing the real differences to people’s lives they are achieving and how the investment we are making will have long-term impacts to achieve sustained job outcomes. WORK AND PENSIONS As you know we are giving providers more freedom than ever before to work with those that have become long-term unemployed or who are at risk of becoming The Work Programme so. By having longer contracts and allowing providers to work with customers for two years, providers have the space and time to work innovatively and creatively The Minister of State, Department for Work and to really make a difference. The flagship payment by Pensions (Chris Grayling): I am delighted to announce results funding model sends the message that we want that the Work programme is now fully operational hard outcomes, and by paying more for those who face across Great Britain. The Government’s vision of a greater challenges we are saying to providers that we high-quality, personalised employment programme for will reward them for hard work. those benefit claimants who need more intensive support I am confident we have given the Work programme is now a reality. Many individuals are already actively every chance of making a real difference to long-term engaged and receiving the support they need to find worklessness. We expect to see substantial indications work. of the success of the programme from spring 2013.

949W Written Answers4 JULY 2011 Written Answers 950W Written Answers to 2005-06 http://www.publications.parliament.uk/pa/cm200607/ cmhansrd/cm070726/wmstext/70726m0004.htm Questions 2006-07 http://www.publications.parliament.uk/pa/cm200607/ cmhansrd/cm070726/wmstext/70726m0004.htm Monday 4 July 2011 2007-08 http://www.publications.parliament.uk/pa/cm200708/ cmhansrd/cm080722/wmstext/80722m0008.htm SCOTLAND 2008-09 Departmental Advertising http://www.publications.parliament.uk/pa/cm200809/ cmhansrd/cm090716/wmstext/90716m0009.htm 2009-10 Mr Dodds: To ask the Secretary of State for Scotland how much his Department has spent on placing http://www.dft.gov.uk/press/speechesstatements/statements/ advertisements in newspapers in Scotland in each year hammond20101028a since 2005. [63390] As of January 2011, the Scotland Office no longer has a contract with the Government Car Service. David Mundell: The Scotland Office has spent the Information relating to individual ministerial car journeys following on placing advertisements in newspapers in prior to September 2010 is not available as there was no Scotland in each year since 2005: requirement to collect these data. Information relating to the number of ministerial car journeys made since Expenditure (£) the introduction of the ’on-demand’ Ministerial Car Service on 6 September 2010 and up until 31 March 2005-06 0 2011 is detailed in the following table: 2006-07 17,510 2007-08 0 Number of journeys 2008-09 0 2009-10 0 2010 2010-11 7,357 September 3 October 6 Departmental Billing November 6 December 14 Oliver Heald: To ask the Secretary of State for Scotland what proportion of invoices from small and medium-sized 2011 businesses were paid by his Department within five January 0 working days of receipt in the last 12 months for which February 1 figures are available. [63557] March 2 David Mundell: The Scotland Office endeavours to pay all suppliers within five days and does not differentiate Drugs between small, medium-sized or large businesses. Between 1 June 2010 and 31 May 2011 the Scotland Office paid Ann McKechin: To ask the Secretary of State for 99.1% of invoices within five days. Scotland what recent discussions he has had with Departmental Official Cars Scottish Ministers on (a) cocaine and (b) other drug usage in Scotland. [62921]

Stephen Williams: To ask the Secretary of State for Michael Moore: Responsibility for drugs health, Scotland what the cost to his Department was of the education and enforcement has been devolved to the provision of ministerial cars in each financial year Scottish Government. between 2000-01 and 2010-11; how many (a) cars for the exclusive use of Ministers and (b) ministerial car journeys were paid for by his Department in each such Mortgages year; what the average cost to his Department of a ministerial car journey was in each such year; and what Ann McKechin: To ask the Secretary of State for steps his Department has taken to reduce the cost of Scotland when he last met representatives of banks ministerial cars since his appointment. [63000] operating in Scotland to discuss (a) domestic mortgage lending and (b) lending to small and medium-sized David Mundell: Information relating to the cost and enterprises. [62919] number of ministerial cars is published in an annual written ministerial statement, details of which can be Michael Moore: I meet regularly with representatives found within the Libraries of both Houses. Details of of the Scottish financial sector, including banks operating the costs for 2010-11 are currently being compiled and in Scotland, to discuss issues of importance to the are due for release in July 2011. Information prior to Scottish and wider UK economy. Those issues include 2005 is not available and could be obtained only at mortgage lending and lending to small and medium-sized disproportionate cost. Links to the details for the available enterprises, which are vital to creating an environment years are shown as follows: in which Scottish businesses and families can prosper. 951W Written Answers4 JULY 2011 Written Answers 952W

My most recent engagements with representatives of Mr Paice: The Animal Welfare Act 2006 was reviewed banks operating in Scotland were last week. I have in 2010 and the findings of the review were presented to further relevant engagements planned for this month. the Efra Select Committee. Officials worked closely with a wide range of groups involved with animal Scottish Power welfare and the need to increase sentencing powers was not identified as a matter that required attention. A Ann McKechin: To ask the Secretary of State for copy of the review can be found on: Scotland when he last met representatives of Scottish http://archive.defra.gov.uk/foodfarm/farmanimal/welfare/act/ documents/aw-act-2006-memo-101220.pdf Power; and what matters were discussed. [62920] Cats: Electric Shock Equipment Michael Moore: I meet frequently with Scottish Power as well as other utility companies. I last met Scottish Power on 18 May 2011 at which we discussed a range of Chris Williamson: To ask the Secretary of State for issues. There has also been recent and ongoing contact Environment, Food and Rural Affairs (1) what research with officials regarding news on pricing, electricity market her Department has (a) commissioned and (b) evaluated reform and other issues. on the use of electronic collars on domestic cats; and whether she has plans to commission any further such research; [63033] (2) what her policy is on prohibiting the use of ENVIRONMENT, FOOD AND RURAL AFFAIRS electronic collars on domestic cats. [63034]

Agriculture: International Cooperation Mr Paice: No specific research has been carried out, or is proposed, on the use of electronic collars for cats. Mr Bain: To ask the Secretary of State for We are currently reviewing the recently completed Environment, Food and Rural Affairs what measures research on the use of electronic collars for dogs. No were agreed at the G20 agriculture summit on 22 June decisions on the use of such devices will be made until 2011 on (a) investment in research and innovation in we have completed the peer review of the research. agriculture and (b) steps to tackle rising global food Environment prices. [62764]

Mr Paice: I refer the hon. Member to the written Harriett Baldwin: To ask the Secretary of State for ministerial statement laid before the House by the Secretary Environment, Food and Rural Affairs whether her of State for Environment, Food and Rural Affairs Department has assessed the merits of including the about the recent meeting of G20 agricultural ministers. Teme Valley, Worcestershire, in the Malvern Hills Area of Outstanding Natural Beauty. [62844] Agriculture: Subsidies Richard Benyon: It is ordinarily for Natural England to propose boundary changes to Areas of Outstanding Tim Farron: To ask the Secretary of State for Natural Beauty (AONB) and it has not assessed the Environment, Food and Rural Affairs how much the suitability of the Teme Valley, Worcestershire as a possible Rural Payments Agency has paid out under each level extension of the Malvern Hills AONB. of the single payment scheme in each year since 2005. Natural England is currently developing a strategy to [62850] guide future work on landscape and biodiversity designations. Until this is in place it will not be undertaking Mr Paice [holding answer 29 July 2011]: The amounts further work on new designations or boundary variations paid out by the Rural Payments Agency in respect of beyond its current project affecting the boundaries of the single payment scheme for England since 2005 are the Lake District and Yorkshire Dales National Parks. as shown. There are no levels of the scheme. Farming: Private Sector Single payment scheme year £ billion 2005 1.60 Mr Spencer: To ask the Secretary of State for 2006 1.55 Environment, Food and Rural Affairs what steps her 2007 1.49 Department is taking to enter partnerships with (a) the 2008 1.66 UK Food Chain Alliance and (b) other private sector-led 2009 1.90 groups to deliver its policies on farming. [62924]

The payment window for 2010 closes on 30 June. The Mr Paice: DEFRA is committed to working with amount paid out by 17 June was £1.71 billion. farmers and food chain businesses to ensure we deliver our aim of supporting British farming and sustainable Animal Welfare food production. Officials have met with the UK Food Chain Alliance on its discussion paper “Working together Mike Wood: To ask the Secretary of State for to safeguard and enhance UK farming” and we are Environment, Food and Rural Affairs whether she has following its progress with interest. any plans to bring forward proposals to increase the Many parts of our food and farming industries are sentencing powers provided for in the Animal Welfare showing leadership in delivering a sustainable future, Act 2006. [62803] and the Government are supporting these efforts through, 953W Written Answers4 JULY 2011 Written Answers 954W for example, the delivery of product roadmaps by our UK exports of food, feed and drink, 2001-10 livestock sectors, and the important work of the industry £ billion1 Million tonnes to meet emission reduction targets in its Greenhouse 2002 11.3 10.8 Gas Action Plan. 2003 12.2 14.0 Fisheries: Safety 2004 11.6 12.0 2005 11.6 12.6 2006 11.9 12.4 Penny Mordaunt: To ask the Secretary of State for 2007 12.3 11.9 Environment, Food and Rural Affairs whether she has 2008 13.8 12.8 had discussions with (a) Ministers and (b) officials in 2009 14.7 12.8 the Ministry of Defence on potential implications for 2010 15.8 14.5 safety of the home fishing fleet of reductions in expenditure 1 At 2010 prices. on the Royal Navy; and if she will make a statement. Note: [63130] 2010 data are subject to amendments. Source: H M Revenue and Customs Data prepared by Trade Statistics, Economics and Richard Benyon: I have had discussions with the Statistics Programme, DEFRA. Minister for the Armed Forces, my hon. Friend the Member for North Devon (Nick Harvey), about the Food: Imports future provision of surface surveillance for fisheries protection purposes, which is currently provided by the Tim Farron: To ask the Secretary of State for Royal Navy. Environment, Food and Rural Affairs what estimate As I told him, responsibility for surface and aerial her Department has made of the amount of food surveillance rests not with DEFRA but with the Marine imported in each of the last 10 years. [62695] Management Organisation (MMO), a non-departmental public body. I understand that the MMO is currently Mr Paice [holding answer given 28 June 2011]: The considering the level and composition of surface surveillance following table shows the value and volume of total services it requires beyond 2013. In order to ensure the food, feed and drink imported into the UK as recorded MMO delivers its remit at the best possible value for in the Official Overseas Trade Statistics for the period money to the public purse, it expects to begin a procurement 2001-10. exercise later this year. UK imports of food, feed and drink, 2001-10 Whatever decision the MMO takes, I am confident £ billion1 Million tonnes that this will not have any implications for the safety of 2001 23.6 30.1 the home fishing fleet. 2002 24.2 30.2 Fishing Catches 2003 25.8 32.2 2004 26.3 32.9 2005 27.3 33.6 Tony Lloyd: To ask the Secretary of State for 2006 28.0 34.1 Environment, Food and Rural Affairs what her policy 2007 28.9 34.6 is on overfishing (a) in European waters and (b) 2008 32.9 35.2 globally. [62956] 2009 34.0 33.6 2010 33.7 34.1 Richard Benyon [holding answer 30 June 2011]: Whether 1 At 2010 prices. in EU waters, or elsewhere in the world, overfishing Note: should not occur. Fisheries should be properly managed 2010 data are subject to amendments Source: on a sustainable basis. Regrettably overfishing has occurred H M Revenue and Customs Data prepared by Trade Statistics, Economics and in the past and it is something we wish to avoid in the Statistics Programme, DEFRA. future. As a result, the UK will argue that a reformed common fisheries policy must be better suited to ensure Hill Farming the rational exploitation of fisheries resources and that sustainability is paramount in the future. Miss McIntosh: To ask the Secretary of State for Environment, Food and Rural Affairs what land area Food: Exports in square miles (a) previously attracted claims under hill farm allowance and (b) is now eligible for uplands Tim Farron: To ask the Secretary of State for entry level stewardship or uplands transitional Environment, Food and Rural Affairs what estimate payment. [62124] her Department has made of the amount of food exported in each of the last 10 years. [62694] Mr Paice: Claims for Hill Farm Allowance 2010 covered 4,250 square miles. Land in the Severely Mr Paice [holding answer given 28 June 2011]: The Disadvantaged Areas is eligible for Uplands Entry Level following table shows the value and volume of total Stewardship or Uplands Transitional Payment and covers food, feed and drink exported from the UK as recorded 5,020 square miles. in the Official Overseas Trade Statistics for the period 2001-10. Tim Farron: To ask the Secretary of State for Environment, Food and Rural Affairs how many farmers UK exports of food, feed and drink, 2001-10 1 have received payments under the uplands entry level £ billion Million tonnes stewardship scheme in each month since its inception. 2001 11.0 9.7 [62665] 955W Written Answers4 JULY 2011 Written Answers 956W

Mr Paice [holding answer 28 June 2011]: The first The Government are committed to ensuring that agreements for Uplands Entry Level Stewardship farmers have access to the best available advice on commenced on 1 July 2010. During the first year of the good nutrient management. This will make sure that scheme, payments are being made six monthly in arrears, nutrients—from both mineral and organic fertilisers—are as set out in the following table: managed in a way that optimises their uptake by crops, and minimises their loss to the environment. The trend Payment date (2011) Payments made over the last 14 years shows an overall reduction in the amount of mineral nitrogen and phosphorus applied to January 1,231 land. However, the standard of nutrient management February 406 in the UK needs to continue to improve if farming March 385 is to become more competitive and profitable, and April 307 produce more food in a way that protects the May 264 environment and biodiversity and uses natural resources June 227 sustainably. Total 2,820 We are acting to implement the requirements under From 1 July 2011, the six-monthly payments will EU and UK laws to achieve good ecological status in move to an autumn/spring payment cycle. The size of our waters, and ensure that the UK’s drinking water the payment and the total amount farmers are due to supply is of a consistently high quality. We are constantly receive during the life of their agreements will however reviewing policy on this area; nutrient runoff was identified be unaffected. as an issue in the Natural Environment White Paper, published on 7 June. We committed to: Nature Conservation: EU Action “develop a strategy to identify and address the most significant diffuse sources of water pollution from non-agricultural sources.” Mr Bain: To ask the Secretary of State for Environment, As I announced on 23 March, the Government intend Food and Rural Affairs if she will assess the effects on to use a new catchment-based approach to implementing the environment of the operation of EU agri-environment the River Basin Management Plans that are required funds aiming to maintain populations of declining species. under the water framework directive. The Environment [62120] Agency has established 10 pilot test catchments to validate this approach. Measures to help control nutrient Mr Paice: The Government believe that agri-environment runoff from farms are included in the £110 million schemes play a vital role in maintaining farmland funding announced on 13 April. This includes some biodiversity. Environmental Stewardship (ES) is the capital grants for farmers in certain areas under the major agri-environment scheme operating in England Catchment Sensitive Farming project. and is supported by a £1.4 million/year monitoring and evaluation programme and a £2.1 million/year research Water Charges programme. Both these programmes make contributions to the growing evidence base relating to biodiversity and include John Robertson: To ask the Secretary of State for projects that look at the impact of ES across a range of Environment, Food and Rural Affairs what information species, assess the success of ES habitat management her Department holds on changes in the level of annual and examine alternative management techniques with a water charges in each region in each year since 1989. view to improving the environmental delivery of the [62935] scheme. Richard Benyon: Information on the water companies’ Mr Bain: To ask the Secretary of State for Environment, charges since 1989 is not held by DEFRA; it is available Food and Rural Affairs what her Department’s policy is from Ofwat. on the future operation of EU agri-environment funds aiming to maintain populations of declining species. [62121] INDEPENDENT PARLIAMENTARY Mr Paice: The reform of the Common Agricultural STANDARDS AUTHORITY COMMITTEE Policy provides a crucial opportunity to refocus spend towards agri-environment schemes, such as Environmental Members: Allowances Stewardship, where the role of agri-environment schemes in preserving biodiversity is recognised. Adam Afriyie: To ask the hon. Member for Broxbourne, Nutrient Runoff representing the Speaker’s Committee for the Independent Parliamentary Standards Authority, what assessment Tony Lloyd: To ask the Secretary of State for the Independent Parliamentary Standards Authority Environment, Food and Rural Affairs what her policy has made of the effectiveness of its schemes in restoring is on nutrient runoff; and if she will make a statement. public confidence and trust in (a) hon. Members first [62972] elected in May 2010, (b) other hon. Members and (c) Parliament. [62444] Richard Benyon [holding answer 30 June 2011]: Nutrient runoff, whether from agricultural or other sources, Mr Charles Walker: It has not been possible to provide represents a serious risk to the health of our waters and a response to this question by the named day. An the oceans. answer will be provided as soon as possible. 957W Written Answers4 JULY 2011 Written Answers 958W

Substantive answer from Charles Walker to Adam Letter from Andrew McDonald, dated June 2011: Afriyie: As Chief Executive of the Independent Parliamentary Standards The information requested falls within the responsibility of the Authority, I have been asked to reply to your Parliamentary Independent Parliamentary Standards Authority. I have asked Question asking what proportion of the savings to the public IPSA to reply. purse achieved by the Independent Parliamentary Standards Authority Letter from Andrew McDonald, dated June 2011: in its first 10 months of operation is attributable to (a) resettlement grants, (b) parliamentary pensions, (c) winding-up allowances As acting Chief Executive of the Independent Parliamentary and (d) other exceptional payments made to retiring hon. Members Standards Authority, I have been asked to reply to your Parliamentary in the final year of the previous House of Commons scheme. Question asking what assessment the Independent Parliamentary Standards Authority has made of the effectiveness of its schemes We estimate that a total of £58,000 may be attributable to the in restoring public confidence and trust in (a) hon. Members first items referred to, but note the following details: elected in May 2010, (b) other hon. Members and (c) Parliament. a) IPSA does not pay resettlement grants and the Members’ We haven’t made an assessment broken down in this way. We Expenses accounts for 2009-10 confirm that the House did not commissioned a survey of 2,599 adults from YouGov in November pay any such grants either. 2010, the results of which suggested that 59% agreed that IPSA b) MPs’ pay and pensions were not included in the calculation will make sure MPs are paid only for legitimate expenses, compared of any savings. to 13% who did not. 16% neither agreed nor disagreed and a further 12% stated that they did not know. c) The Members’ Expenses accounts paid £134,000 for winding up expenses in 2009-10. In 2010-11, IPSA has paid a total of £76,000 for winding up expenses, a difference of £58,000. Adam Afriyie: To ask the hon. Member for Broxbourne, representing the Speaker’s Committee for the Independent Parliamentary Standards Authority, Adam Afriyie: To ask the hon. Member for Broxbourne, whether the Independent Parliamentary Standards representing the Speaker’s Committee for the Independent Authority has made an assessment of the extent to Parliamentary Standards Authority, what estimate the which hon. Members are funding their parliamentary Independent Parliamentary Standards Authority has duties from personal resources. [62445] made of the likely level of savings to the public purse it will achieve in respect of the salaries, staffing and Mr Charles Walker: It has not been possible to provide expenses budgets of hon. Members in 2011-12 compared a response to this question by the named day. An to 2010-11 [62447] answer will be provided as soon as possible. Substantive answer from Charles Walker to Adam Afriyie: Mr Charles Walker: It has not been possible to provide The information requested falls within the responsibility of the a response to this question by the named day. An Independent Parliamentary Standards Authority. I have asked answer will be provided as soon as possible. IPSA to reply. Substantive answer from Charles Walker to Adam Letter from Scott Woolveridge, dated June 2011: Afriyie: As acting Chief Executive of the Independent Parliamentary The information requested falls within the responsibility of the Standards Authority, I have been asked to reply to your Parliamentary Independent Parliamentary Standards Authority. I have asked Question whether IPSA has made an assessment of the extent to IPSA to reply. which MPs are funding parliamentary duties from their personal resources. Letter from Andrew McDonald, dated June 2011: IPSA has not made such an assessment. We would expect MPs As Chief Executive of the Independent Parliamentary Standards to claim for expenses incurred whilst carrying out their Parliamentary Authority, I have been asked to reply to your Parliamentary functions whilst they have sufficient budget to do so. Where MPs Question asking what estimate the Independent Parliamentary necessarily incurs liability for expenditure for their parliamentary Standards Authority has made of the likely level of savings to the functions which cannot be met from an existing budget, they may public purse it will achieve in respect of hon. Members salaries, apply for contingency funding. staffing and expenses budgets in 2011-12 compared to 2010-11. We have made no such estimate. We hold the view that the Adam Afriyie: To ask the hon. Member for Broxbourne, current MPs’ expenses scheme has been running for too short a representing the Speaker’s Committee for the Independent time for us accurately to predict expenditure in 2011-12. We Parliamentary Standards Authority, what proportion therefore submitted our Estimate on the basis that Members will of the savings to the public purse achieved by the claim their full budgets. Our Estimate for 2011-12 was recently Independent Parliamentary Standards Authority in its approved by the Speaker’s Committee for the IPSA, although first 10 months of operation is attributable to (a) the Committee put £16.572m of the Estimate in reserve in anticipation that demand will fall short of the full budgetary resettlement grants, (b) parliamentary pensions, (c) provision available. winding-up allowances and (d) other exceptional payments made to retiring hon. Members in the final year of the previous House of Commons scheme. [62446] Adam Afriyie: To ask the hon. Member for Broxbourne, representing the Speaker’s Committee for the Independent Mr Charles Walker: It has not been possible to provide Parliamentary Standards Authority, whether the a response to this question by the named day. An Independent Parliamentary Standards Authority has answer will be provided as soon as possible. made an assessment of the effects of its schemes on the mental health and well-being of hon. Members. [62448] Substantive answer from Charles Walker to Adam Afriyie: The information requested falls within the responsibility of the Mr Charles Walker: It has not been possible to provide Independent Parliamentary Standards Authority. I have asked a response to this question by the named day. An IPSA to reply. answer will be provided as soon as possible. 959W Written Answers4 JULY 2011 Written Answers 960W

Substantive answer from Charles Walker to Adam While visiting the European Court of Human Rights, Afriyie: I met with the President of the Court, Mr Jean-Paul The information requested falls within the responsibility of the Costa, Sir Nicolas Bratza and senior members of the Independent Parliamentary Standards Authority. I have asked Registry. IPSA to reply. Prosecutions Letter from Scott Woolveridge, dated June 2011: As acting Chief Executive of the Independent Parliamentary Standards Authority, I have been asked to reply to your Parliamentary Mr Hollobone: To ask the Attorney-General what Question whether IPSA has made an assessment of the effect of proportion of those prosecuted by Northamptonshire its Schemes on the mental health and wellbeing of MPs. Crown Prosecution Service had previously been IPSA has not made such an assessment. prosecuted for another imprisonable offence, including those who did not serve time in prison as a result, in Adam Afriyie: To ask the hon. Member for Broxbourne, each of the last three years. [63697] representing the Speaker’s Committee for the Independent The Solicitor-General: The Crown Prosecution Service Parliamentary Standards Authority, what assessment (CPS) Case Management System (CMS) does not collect the Independent Parliamentary Standards Authority information relating to the number of prosecutions (IPSA) has made of the effects on public confidence in where the defendant had previously been prosecuted for Parliament of the bi-monthly frequency of its publication another imprisonable offence (whether or not they served of claims; and which other publication schedules were a prison sentence). Such data could not be reasonably considered by IPSA when formulating its schemes. obtained locally or nationally other than by a manual [62623] exercise at disproportionate cost. Mr Charles Walker: The information requested falls Witnesses: Allowances within the responsibility of the Independent Parliamentary Standards Authority. I have asked IPSA to reply. Mrs Moon: To ask the Attorney-General if he will Letter from Andrew McDonald, dated June 2011: review the level of allowances paid by the Crown As Chief Executive of the Independent Parliamentary Standards Prosecution Service to witnesses called by the Crown Authority, I have been asked to reply to your Parliamentary Prosecution Service to give evidence in court. [62936] Question asking what assessment the Independent Parliamentary Standards Authority (IPSA) has made of the effects of the The Solicitor-General: The Crown Prosecution Service bi-monthly frequency of its publication of claims on public (CPS) will be undertaking a review of the level of confidence in Parliament; and which other publication schedules witness expenses and allowances in 2011. Any recommended were considered by IPSA when formulating its schemes. amendments to the current levels would then be subject We have to date made no assessment of the effects of the to approval by the Attorney-General. bi-monthly frequency of its publication of claims on public confidence in Parliament. The payment of witness expenses and allowances to We have considered both more frequent (monthly and rolling) prosecution witnesses, where the CPS is the prosecuting publication and less frequent (quarterly, four and six-monthly) authority, is governed by the Crown Prosecution Service publication. More frequent publication would prove to be considerably (Witnesses’ etc. Allowances) Regulations 1988. more costly, whereas we believed that less frequent publication Witness attendance at court is a public duty but would not be in the interest of either the public or of MPs. expenses and allowances are paid to facilitate witnesses’ We have also considered routinely publishing images of invoices attendance by assisting with costs. The rates that are and receipts submitted in support of expense claims, but ruled payable are designed to provide compensation to witnesses this out on costs grounds and on the grounds that with the attending court but not necessarily full reimbursement majority of claims this documentation provides little additional of all the costs incurred. The aim is to strike a balance information. between providing a reasonable level of compensation to witnesses and ensuring that public money is spent appropriately. It is important that the allowances are set at a level ATTORNEY-GENERAL that does not discourage the public from coming forward to give evidence and the rates are, therefore, subject to Assembly of the Council of Europe: Meetings regular review. Nevertheless, limits on the amounts payable are necessary if the Government are to maintain Oliver Heald: To ask the Attorney-General what control over public spending in order to direct resources meetings he had during his recent visit to the Parliamentary to the areas of greatest need. Assembly of the Council of Europe; and if he will make a statement on that visit. [63338] HOUSE OF COMMONS COMMISSION The Attorney-General: On Thursday 23 June I addressed the Parliamentary Assembly of the Council of Europe Schools: Visits in Strasbourg on the role of Parliaments as guarantors of human rights. I had meetings with the Secretary Gareth Johnson: To ask the hon. Member for Caithness, General of the Council of Europe, Mr Thorbjorn Jagland Sutherland and Easter Ross, representing the House of and Deputy Secretary General, Ms Maud de Boer Commons Commission, how many schools in (a) Dartford Buquicchio ahead of UK chairmanship commencing in constituency and (b) Kent were involved in visits to the November 2011. I also met with the President of the Palace of Westminster arranged through the Parliamentary Council of Europe, Mr Mevlut Cavusoglu. Education Service in each year since 2009. [63284] 961W Written Answers4 JULY 2011 Written Answers 962W

John Thurso: The number of schools from (a) Dartford had recent discussions with British Cycling on the constituency and (b) Kent that have visited the Palace regulations governing road racing. [62984] of Westminster through Parliament’s Education Service in each year since 2009 is as follows: Hugh Robertson: I have regular discussions with British Cycling on a range of issues including the regulations Number governing road racing. The Association of Chief Police Kent Dartford Officers have agreed new road racing guidance to ensure 2009 32 1 parity across the country, including a nominated lead, 2010 32 0 which has been welcomed by British Cycling. 2011 (to date) 16 1 2011 (future bookings) 14 0 Departmental Billing The total number of students visiting the Palace of Westminster on these visits, including future bookings Mr Denham: To ask the Secretary of State for for 2011, is 4,389; of these, 65 are from the Dartford Culture, Olympics, Media and Sport how many constituency. invoices received by his Department were paid (a) on time and (b) late in each month since May 2010; and what the monetary value was of invoices paid late. CULTURE, MEDIA AND SPORT [62478] Cycling: Roads John Penrose: The Department’s invoice payment performance measured against the normal contractual Mr Jim Cunningham: To ask the Secretary of State commitment to pay all valid invoices within 30 days for Culture, Olympics, Media and Sport whether he has since May 2010 is set out in the following table:

Month Invoices paid within target Invoices paid after target Value of late payments (£)

May 2010 414 4 35,701 June 2010 450 4 4,636 July 2010 433 — — August 2010 364 2 11,790 September 2010 317 1 129 October 2010 324 — — November 2010 382 — — December 2010 365 4 10,530 January 2011 297 — — February 2011 324 — — March 2011 436 4 40,777 April 2011 334 2 5,150 May 2011 360 4 22,177

The Department also monitors payment performance John Penrose: English Heritage has recently launched against the Government’s target of paying 80% of valid the National Heritage Protection Plan, which sets out invoices within five working days. why, what and how England’s vulnerable historic The percentage of invoices paid on time against this environment is to be safeguarded in the next four years. target was 74.4% during the period. Developed in consultation with a wide range of partners, it shows where the threats are the greatest and will help Football: Lasers English Heritage to prioritise its work. It will also help other heritage professionals and volunteers to contribute Bob Russell: To ask the Secretary of State for Culture, to the business of managing England’s heritage. This Olympics, Media and Sport if he will discuss with Department and English Heritage are also considering football authorities measures to eliminate the disruptive various measures to tackle the problem of buildings use of laser pens during football matches; and if he will which have been on the Heritage At Risk Register for make a statement. [62587] an extended period of time. Hugh Robertson: I would be happy to raise this at the Horse Racing next appropriate opportunity. I am advised that the football authorities currently work with clubs on a case Mr Sutcliffe: To ask the Secretary of State for by case basis where incidents occur, and would encourage Culture, Olympics, Media and Sport (1) pursuant to clubs and stewards to remain vigilant in their efforts to the answer of 28 April 2011, Official Report, columns address this issue. 327-8, on race course pitch tenures, what assessment he has made of the progress of negotiations at race Historic Buildings courses where (a) no agreements are in place and (b) agreements have been reached in principle; [62303] Mark Menzies: To ask the Secretary of State for Culture, (2) what steps he plans to take to ensure that the Olympics, Media and Sport what steps the Government dispute between race course owners and race course is taking to protect historic buildings. [63299] bookmakers is resolved quickly. [62304] 963W Written Answers4 JULY 2011 Written Answers 964W

John Penrose [holding answer 27 June 2011]: I share Playing Fields the hon. Member’s wish for this matter to be resolved quickly. I am watching closely the progress of ongoing Mr Ivan Lewis: To ask the Secretary of State for discussions between the various parties, but especially Culture, Olympics, Media and Sport with reference to in those cases where no deal has yet, been agreed in his Department’s Business Plan 2011-15, when he plans principle. Although it is better for both sides to come to to introduce a programme of improvement and agreement between themselves, rather than have political protection for playing fields as part of the community interference, all options remain open to me. However, sports legacy. [63100] time is moving on and I am expecting significant progress in the next three months to get the remaining deals Mr Jeremy Hunt [holding answer 30 June 2011]: As agreed. part of Sport England’s £135 million mass participation initiative ‘Places, People, Play’, the Minister for Sport Libraries: Reviews and the Olympics and Sport England recently launched Protecting Playing Fields, the £10 million fund to protect Mr Ivan Lewis: To ask the Secretary of State for and improve sports fields across the country. The Culture, Olympics, Media and Sport what the (a) terms programme will fund projects that create, develop and of reference are and (b) timetable is for his Department’s improve playing fields for sporting and community use review of major public lending collections. [62590] and offer long-term protection of the site for sport.

Mr Jeremy Hunt: A review of the Government, Arts Public Holidays Council England and British Council Art Collections is currently being undertaken, it will explore the potential Mr Ivan Lewis: To ask the Secretary of State for for efficiencies, cost-savings and enhanced public benefit. Culture, Olympics, Media and Sport pursuant to the It is expected to report later this summer. answer of 27 June 2011, Official Report, column 480W, on public holidays, if he will hold a full consultation on Ofcom bank holidays in 2011. [63693]

Stephen McPartland: To ask the Secretary of State Mr Jeremy Hunt: We are reviewing the evidence for Culture, Olympics, Media and Sport (1) whether he submitted during the pre-consultation and will make an has made a recent assessment of the remit of Ofcom; announcement shortly. [62222] Sport England: Dartford (2) if he will assess the merits of issuing a direction to Ofcom to empower it to consider and promote economic growth in its decision-making, including on Gareth Johnson: To ask the Secretary of State for spectrum allocation and orbital filings. [62223] Culture, Olympics, Media and Sport what financial assistance Sport England has provided to community John Penrose: The Secretary of State for Culture, sports clubs and projects in Dartford constituency Olympics, Media and Sport has recently announced a since May 2010. [63300] communication review leading to a new communications act. The review focuses on three main areas: growth, Hugh Robertson: I refer my hon. Friend to the answer innovation and deregulation; a communications I gave him on 17 March 2011, Official Report, column infrastructure that provides the foundations for growth 529W. and creating the right environment for the content Sports industry to thrive. Ofcom’s duties and responsibilities as the regulator for communications will be considered as part of this process. Mr Jim Cunningham: To ask the Secretary of State for Culture, Olympics, Media and Sport what assessment Olympic Games 2012: Lasers he has made of the relationship between levels of participation in sports at youth level and sporting performance at elite level; and if he will make a statement. Bob Russell: To ask the Secretary of State for Culture, [62983] Olympics, Media and Sport what consideration he has given to measures to prevent the potential disruptive Hugh Robertson: To date the Government have not use of laser pens during the London 2012 Olympics; undertaken any assessment. However, through Sport and if he will make a statement. [62586] England and UK Sport we are developing a world class sporting system from community through to the elite Hugh Robertson: The London 2012 Organising level that strives to increase numbers participating in Committee (LOCOG) is responsible for spectator sport, identifies early on talented individuals and for arrangements within the London 2012 venues. LOCOG those with talent provides a clear pathway to the very has already included laser pens on the list of restricted top that offers appropriate support to enable them items included in the terms and conditions for ticketing, realise their full potential. alongside other items that could disturb a sporting session. These terms and conditions are available online Teresa Pearce: To ask the Secretary of State for at the following link: Culture, Olympics, Media and Sport what assessment http://www.tickets.london2012.com/purchaseterms.html he has made of the effects of HM Revenue and Laser pens fall within the definition of “lasers” in Customs’ VAT treatment of league block bookings section 19.23. since February 2011 on participation in sport. [63400] 965W Written Answers4 JULY 2011 Written Answers 966W

Hugh Robertson: Sport England’s Active People Survey TRANSPORT measures adult participation in sport. The survey does not include any questions relating to the effects of HM A233: Road Traffic Revenue and Customs’ VAT treatment of league block bookings. The latest full-year data show that 4.96% of Joseph Johnson: To ask the Secretary of State for the adult population participated in football once a Transport if he will estimate hourly traffic flows in week for 30 minutes at moderate intensity. The next both directions on the A233 in Orpington constituency full-year data will be published in December 2011. (a) at peak hours and (b) at other times; and if he will make a statement. [63304] Teresa Pearce: To ask the Secretary of State for Culture, Olympics, Media and Sport what discussions he has had with HM Revenue and Customs on the VAT Mike Penning: The Department for Transport (DFT) treatment of league block bookings since February produces traffic estimates using data from manual counts, where trained enumerators count traffic on a specific 2011. [63401] section of the road network over a 12 hour period. Hugh Robertson: I refer the hon. Member to the Major roads, such as the A223, are represented by a answer I gave to the hon. Member for Cardiff West series of links, which are unique sections of road. It is (Kevin Brennan), on 13 June 2011, Official Report, not possible to count every link every year; therefore the columns 553-54W. sections of road are surveyed on either an annual basis or on a cycle of every two, four or eight years. Sports: Obesity A table providing the latest available 12 hourly data for each section of the A223 in the Orpington constituency Mr Jim Cunningham: To ask the Secretary of State has been deposited in the Libraries of the House. for Culture, Olympics, Media and Sport what assessment DFT produces an estimate of the average number of he has made of recent trends in participation in sport by vehicles passing a point in the road network on an children classed as obese. [62982] average day of the given year (AADF). Hugh Robertson: The Taking Part survey measures A table providing the estimated annual average daily participation in sport by children, but does not measure flows (AADFs) between 2000 and 2010 for each section participation by children classed as obese. Trend data of the A223 in the Orpington constituency has been from the survey indicate that participation among five deposited in the Libraries of the House. These data are to 15-year-olds with a long-term illness, disability or not available by hourly breakdown. infirmity is on the increase. A map showing the location of the three count points on the A223 in the Orpington constituency has also World War I: Anniversaries been deposited in the Libraries of the House.

Mr Kevan Jones: To ask the Secretary of State for Channel Tunnel Railway Line Culture, Olympics, Media and Sport what budget has been set for events to mark the centenary of the Andrea Leadsom: To ask the Secretary of State for outbreak of the First World War; and if he will make a Transport what information his Department holds on statement. [62578] the number of passengers who have used South Eastern rail services running alongside the High Speed Mr Vaizey: The Department has not allocated any One rail link in each year since the link opened; and budget for this purpose. what information his Department holds on changes in the level of fares on pre-existing routes during that Mr Kevan Jones: To ask the Secretary of State for Culture, period. [62191] Olympics, Media and Sport what discussions he has had with ministerial colleagues on the commemoration Mrs Villiers [holding answer 27 June 2011]: The of the centenary of the outbreak of the First World information is as follows: War; and if he will make a statement. [62581] 1. The Department for Transport holds information on the Mr Vaizey: I have discussed this important topic with average number of passengers arriving at or departing from the ’critical point’ (the point where crowding is highest) on each my ministerial colleagues in the Ministry of Defence. Southeastern service on a typical weekday during the spring and We are planning further discussions with Ministers in autumn only. This information is commercially confidential. other Departments with an interest, including the Foreign The Department does not hold information on the total number and Commonwealth Office. of passengers using Southeastern rail services running alongside the High Speed One rail link over a whole year. Mr Kevan Jones: To ask the Secretary of State for 2. Southeastern services on High Speed One commenced on Culture, Olympics, Media and Sport which Department 13 December 2009. is leading on arrangements to mark the centenary of The average permitted increase in Southeastern regulated fares the outbreak of the First World War; and if he will was 1.6% in 2010 and 7.8% in 2011. The Department does not make a statement. [62582] hold information on changes in unregulated fares as these are a commercial matter for train operating companies who are free to Mr Vaizey: Planning for a wide range of events is set them on a commercial basis. already under way.The Imperial War Museum in particular is leading the work in this area. The role of Government Andrea Leadsom: To ask the Secretary of State for and which Department will co-ordinate this, is still Transport what estimate he has made of the number of under discussion. passengers on the High Speed One rail route in each 967W Written Answers4 JULY 2011 Written Answers 968W year since it opened; and how much revenue has been which it (a) owns and (b) rents; what the level of generated from ticket purchases for the route. [62197] utilisation is of each such property; what the capital value is of each such property it owns; and what the (i) Mrs Villiers [holding answer 27 June 2011]: The annual rental cost and (ii) length of lease agreement is information is as follows: of each rented property. [61180] 1. The Department for Transport has not made an estimate of the number of passengers on the High Speed One rail route in Norman Baker: I am afraid that the information each year since it opened. requested can be provided only at disproportionate 2. The Office of Rail Regulation publishes revenue figures for cost. the GB rail industry including breakdowns by sectors in National Rail Trends (NRT). This is available on the ORR website: Departmental Manpower www.rail-reg.gov.uk Revenue figures for individual train operating companies are Mr Nicholas Brown: To ask the Secretary of State for commercially confidential. Transport if he will make it his policy to publish monthly information on changes in the numbers of employees of Crewe-Chester Railway Line: Electrification his Department’s agencies, categorised by (a) seniority, (b) voluntary redundancy, (c) natural wastage and (d) Maria Eagle: To ask the Secretary of State for involuntary redundancy. [61715] Transport when he plans to announce his decision on electrification of the Crewe to Chester line. [61263] Norman Baker: I refer the right hon. Member to my answer to his identical question of 13 June 2011, Official Mrs Villiers: The Secretary of State for Transport, Report, column 591W. my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), has made no decision on Driving Instruction electrification of the Crewe to Chester line. The recent InterCity West Coast franchise draft invitation to tender Annette Brooke: To ask the Secretary of State for stated that should bidders propose further electrification Transport what the fee levels are for driver awareness schemes, they would be expected to provide evidence courses in the six highest charging authorities; and what within their bids of how they would finance, plan and assessment he has made of the compliance of such fees deliver such a scheme within the franchise term. with the requirement to charge on a non-profit basis. [63698] Stephen Mosley: To ask the Secretary of State for Transport whether he has assessed the feasibility of Mike Penning: The Department for Transport does electrification of the rail line between Crewe and not hold information concerning fee levels for driver Chester. [61927] awareness courses in the six highest charging authorities or the level of fees in relation to costs. Driver awareness Mrs Villiers: Network Rail assessed the electrification courses are organised by local police forces and it would of the rail line between Crewe and Chester as part of its be for them to respond on this. The Department strongly Electrification Network Route Utilisation Strategy (RUS), supports a national framework and has been keen to published in October 2009. Network Rail is currently encourage all police forces to participate in this, which reviewing this and other schemes as part of its input to allows motorists to take courses in their local area and the Initial Industry Plan to be published in the autumn. should also provide greater consistency of course fees. The recent InterCity West Coast franchise draft Invitation to Tender stated that should bidders propose further Driving: Licensing electrification schemes, they would be expected to provide evidence within their bids of how they would finance, Nick de Bois: To ask the Secretary of State for plan and deliver such a scheme within the franchise Transport whether provisions are in place to prevent term. the purchasing of motor insurance by an individual who does not have a valid immigration status in (a) Crossrail: Rolling Stock England, (b) Wales, (c) Scotland and (d) Northern Ireland. [60836] Maria Eagle: To ask the Secretary of State for Transport pursuant to the answer of 24 May 2011, Official Report, Mike Penning: There is no statutory requirement on column 574W, on Crossrail: rolling stock, whether the motor insurers to check the immigration status of someone Thameslink Project will require full train length equivalent seeking to insure a vehicle. Insurers underwrite the risk diagrams to consist of 12 carriages each. [62461] of those they insure and there is a statutory requirement on an insurer to meet the liability where the insured has Mrs Villiers [holding answer 27 June 2011]: On been found at fault in an accident. completion the Thameslink train service will be operated by a fleet consisting of a combination of 12 and eight Mrs Villiers: I will answer this question shortly. carriage trains. EC Regulation 137/2007/EC Departmental Buildings Tony Lloyd: To ask the Secretary of State for Jesse Norman: To ask the Secretary of State for Transport what consideration he has given to the Transport what the address is of each office property implementation of EC Regulation 137/2007/EC on rail occupied by his Department outside Greater London passengers’ rights and obligations. [63349] 969W Written Answers4 JULY 2011 Written Answers 970W

Norman Baker: Following consultation with the rail origins approximately a quarter of the benefits from the industry and passenger groups, the Government decided first phase of HS2 would accrue to the West Midlands to maintain the decision taken in 2009 by the previous region. Administration to exempt domestic services from the In addition, the initial phase of HS2 could support non-core elements of the Rail Passengers’ Rights and the creation of 8,000 jobs surrounding the proposed Obligations Regulation for a period of five years up to HS2 stations in the West Midlands area, as well as December 2014. We believe that the marginal benefits helping to catalyse wider growth in the region, including of fully extending the pan-European regime to domestic towns in Worcestershire such as Redditch. passengers would be outweighed by the costs to The completion of the second phase of the proposed Government and industry. It would also conflict with HS2 network would be expected to deliver further benefits our intention to reduce regulatory burdens and with for the West Midlands region. our franchise reform agenda. The UK already has a well-established regime for protecting the rights of domestic rail passengers, including by providing assistance to persons with reduced mobility and disabilities, protecting Level Crossings: Safety passengers in case of delay and ensuring a convenient handling of their claims in case of an accident. Maria Eagle: To ask the Secretary of State for Transport if he will review the procedures followed by (a) the Great Anglia Railways Office of Rail Regulation and (b) Network Rail in implementing the safety recommendations arising from the fatalities at Elsenham level crossing in 2005. [61287] Maria Eagle: To ask the Secretary of State for Transport for what reasons the Greater Anglia rail Mrs Villiers: There are no plans to review the operational franchise will run for two years and seven periods from procedures followed by the independent rail safety regulator. its commencement instead of the previously planned With regard to Network Rail’s implementation, it is a one year and seven periods with a one year optional role of the Office of Rail Regulation to ensure that rail extension. [62615] Accident Investigation Branch safety recommendations are duly taken into consideration, and where appropriate Mrs Villiers [holding answer 28 June 2011]: We have acted upon. announced that the Greater Anglia franchise will start The Office of Rail Regulation re-opened the investigation in February 2012 and run until July 2013, with an into the accident in early 2011. option to extend the term by up to one year. The decision to extend is at the sole discretion of the Secretary of State. Such an extension would be competitively priced as part of the competition currently being run to Motorcycles: Safety operate this franchise. Maria Eagle: To ask the Secretary of State for Great Western Railway Line: Railway Signals Transport how much his Department plans to spend on campaigns to increase road safety for motorcyclists in each year of the comprehensive spending review Maria Eagle: To ask the Secretary of State for period. [62379] Transport when he expects the proposed re-signalling of the Great Western Main Line with the European Mike Penning: The spending review allocated £3.5 train control system to (a) begin and (b) be million for THINK! road safety communications in completed. [61262] each year of the review period. Motorcycle safety remains a priority, however all communications are subject to Mrs Villiers: Network rail are responsible for delivering the controls on advertising and marketing spend governed the UK’s rollout of the European Rail Traffic Management by the Efficiency and Reform Group (ERG). In 2011-12, System (ERTMS). ERG has approved expenditure of £1.12 million on the ERTMS rollout on the Great Western main line from THINK! Motorcycle safety campaign. Plans for the Paddington to Bristol is expected to commence in March rest of the spending review period have yet to be submitted 2016 and be completed by early 2018. These dates are and approved. subject to confirmation by Network Rail following detailed planning. National Express East Coast High Speed 2 Railway Line Maria Eagle: To ask the Secretary of State for Transport Karen Lumley: To ask the Secretary of State for what costs his Department incurred following the return Transport what assessment he has made of the effects by National Express of the East Coast Mainline franchise. on the economy of (a) the West Midlands and (b) [61501] Redditch of the proposed High Speed 2 route. [63241] Mrs Villiers [holding answer 22 June 2011]: A full Mr Philip Hammond: High Speed 2 would generate report on the termination of the National Express East benefits of around £44 billion and support the creation Coast contract, including costs incurred by the Department, of around 40,000 jobs. Although no specific assessment can be found on the National Audit Office website at has been made on the economic benefits to Redditch, http://www.nao.org.uk/publications/1011/east_coast HS2 Ltd’s analysis suggests that on the basis of trip _passenger_rail.aspx 971W Written Answers4 JULY 2011 Written Answers 972W

Public Transport: Greater London Mrs Villiers: The structure and level of fixed and variable track access charges, paid by train operators to Mr Evennett: To ask the Secretary of State for Network Rail, are set by the Office of Rail Regulation Transport what recent discussions he has had with (a) (ORR) to ensure that network rail recovers the costs the the Mayor of London, (b) Network Rail and (c) regulator allows and to incentivise best use of the rail Southeastern Railway on public transport provision in network. South East London. [62938] ORR is currently undertaking a Periodic Review consultation in advance of the next regulatory settlement Mrs Villiers: Ministers have regular meetings with that considers issues relating to track access charges Network Rail and with the Mayor of London, at which among other matters, including issues relating to the a wide range of subjects are discussed. existing variable usage charges. The consultation runs The issue of provision of information to passengers, until 2 September 2011 and can be found on the ORR particularly at times when the rail service is disrupted, is website at: discussed regularly. http://www.rail-reg.gov.uk/server/show/nav.2446 In addition, officials from the Department for Transport also meet London and Southeastern Railway Ltd on a Railways: Franchises regular basis to discuss performance and a range of wider commercial issues. John McDonnell: To ask the Secretary of State for Transport how many ticketing and settlement Rail Delivery Group agreements are applicable to rail passenger services in the UK; and if he will place in the Library a copy of Maria Eagle: To ask the Secretary of State for each agreement. [R] [61451] Transport what the name is of each member of the Rail Delivery Group; what employment experience relevant Mrs Villiers [holding answer 22 June 2011]: There is to the Group’s work each has; and what the role and only one Ticketing and Settlement Agreement (TSA) responsibilities of the Group are. [61266] and it is the agreement between train operating companies (TOCs) that sets out how fares are created, honoured, Mrs Villiers: I refer the hon. Member to my answer of and sold, and how revenue is settled. The TSA preserves 14 June 2011, Official Report, column 727W,to the hon. through ticketing and ticket inter-availability, and provides Member for Hayes and Harlington (John McDonnell), the mechanism by which ticket retailing is regulated. which sets out the details of the Rail Delivery Group. Each TOC’s franchise agreement with the Secretary of State, and passenger licence granted by the Office of Railways: Disability Rail Regulation (ORR), requires it to be a party to and comply with the TSA. Tony Lloyd: To ask the Secretary of State for The TSA can be accessed by the following links. Transport what discussions he has had with passenger 1. The main agreement rail franchise holders on steps to be taken to meet the http://www.whatdotheyknow.com/request/66236/response/ needs of passengers with disabilities. [63264] 169201/attach/7/Appendix%20V.pdf Norman Baker: The Government are committed to 2. The schedules an accessible rail system in which disabled passengers http://www.whatdotheyknow.com/request/66236/response/ have the same opportunities to travel as other members 169201/attach/8/Appendix%20VI.pdf of society, and rail franchise holders are fundamental to delivering that commitment. The Department for Transport Maria Eagle: To ask the Secretary of State for Transport is involved in an ongoing dialogue with the industry how much his Department has spent on (a) legal advice concerning the current situation and what further and (b) consultation in respect of its dealings with each improvements may be made. train operating company and the franchise each holds. Franchise holders already have a number of specific [61452] legal obligations in relation to disabled passengers, including a requirement to produce a Disabled People’s Protection Norman Baker [holding answer 22 June 2011]: I Policy which states how they will protect the interests of regret that the information requested can be obtained disabled users of their trains and stations. The Department only at disproportionate cost. reviews and approves these documents on an annual basis. Railways: Passengers

Railways: Finance Maria Eagle: To ask the Secretary of State for Transport what estimate his Department has made of Maria Eagle: To ask the Secretary of State for Transport the effect on passenger numbers of setting the cap on (1) what estimate he has made of the potential cost increases in rail fares at the retail prices index plus 3 per benefit to (a) rolling stock operators and (b) Network cent. in (a) 2012, (b) 2013 and (c) 2014. [62389] Rail of the introduction of a variable component to track access charges; [61253] Mrs Villiers: I refer the hon. Member to the answer I (2) what progress the Office of Rail Regulation has gave on 10 November 2010, Official Report, column made in setting a variable component for track access 335W, to the hon. Member for Denton and Reddish charges. [61254] (Andrew Gwynne). 973W Written Answers4 JULY 2011 Written Answers 974W

Railways: Standards The lighting Regulations are also subject to the recent ‘Red Tape Challenge’ and comments submitted will be Mark Menzies: To ask the Secretary of State for considered. Transport what steps his Department is taking to increase the frequency of rail services in less populated Rolling Stock: Procurement areas. [63352] Maria Eagle: To ask the Secretary of State for Transport Mrs Villiers: The Department’s Community Rail whether his Department has undertaken a cost-benefit Development Strategy, which seeks to make it easier for analysis of reducing the variety of rolling stock designs the rail industry and local communities to do more to operating on the national network. [62605] ensure the long term health of local services, has aided innovative solutions which have led to increased rail Mrs Villiers: The Department for Transport has not services in some less populated areas. Local authorities recently undertaken a cost-benefit analysis of reducing are free to use funds allocated to them from the Government the varieties of rolling stock designs on the National to enhance passenger facilities on rural lines and can Network but I note that this was an important issue fund additional services if they feel this is appropriate. raised by Sir Roy McNulty in his report and we will be responding in due course. Rapid Transit Systems Speed Limits Maria Eagle: To ask the Secretary of State for Transport how many officials in his Department were engaged in Nadine Dorries: To ask the Secretary of State for work on the future role of tram-train vehicles on the Transport if he will bring forward proposals to increase latest date for which information is available. [62499] the level of support offered to rural communities wishing to lower speed limits on roads in their area. [61882] Mrs Villiers: Tram train is potentially an important development that can deliver better services for passengers Mike Penning: Local highway authorities already have and reduce the cost of running the railway. Four officials control of local speed limits, and should take full account from the Department are currently engaged on developing of local communities’ views in setting these limits. A the Sheffield to Rotherham and Watford to St Albans tram key theme in the Government’s Strategic Framework train pilots and do so as part of a portfolio of projects. for Road Safety published in May 2011 is the empowerment of local communities, including enabling the public to Jack Lopresti: To ask the Secretary of State for compare road safety performance in their local area Transport if he will take account of the closure of with other similar areas. This will help communities to Filton airfield and the potential commercial and residential challenge local service providers on issues such as speed development of the site when deciding whether to provide limits. Decisions on speed limits should be based upon funding to the North Fringe to Hengrove rapid transit comprehensive analysis of all the costs and benefits. scheme. [62738] The Department is intending to help local decision making through further guidance and an economic Norman Baker: Best and final funding bids for all toolkit on speed limits. schemes within the development pool need to be submitted to the Department by noon on 9 September. This is a Transport: Finance competition and all bids will be judged in an equitable manner. Maria Eagle: To ask the Secretary of State for As part of their bid all promoters can detail any Transport whether he plans to change the benefit-cost developments (such as housing or commercial development) ratios mechanism used by his Department. [61283] that are linked with the scheme they are promoting. Norman Baker: It is important to note that investment Road Vehicle Lighting Regulations 1989 decisions are not made mechanistically with sole reference to benefit-cost ratios. Rather, full account is taken of all Mr Laurence Robertson: To ask the Secretary of State relevant considerations including those that cannot be for Transport if he will bring forward legislative proposals ascribed a monetary value. to amend the Road Vehicle Lighting Regulations 1989 In the interests of transparency, we have set down our to allow (a) registered nurses, (b) midwives, (c) ambulance approach in a document titled ‘The Transport Business first responders and (d) official first aiders to use Case’, which may be downloaded from our website: flashing lighting when attending urgent medical cases or assisting the police; and if he will make a statement. http://www.dft.gov.uk/publications/transport-business-case/ [63262] We have no plans to change the way in which benefit-cost ratios are calculated. Mike Penning: The Department for Transport has no plans to revise the Road Vehicle Lighting Regulations Vehicle and Operator Services Agency: Administration for flashing lamps. Allowing the wider use of any restricted lighting Nadine Dorries: To ask the Secretary of State for function needs to be carefully considered as the warning Transport if he will bring forward proposals to reduce they provide will become diluted if they are used too the administrative requirements in respect of (a) the often. Ultimately this will be to the disadvantage of Vehicle and Operator Services Agency and (b) traffic those who currently use them. commissioners. [61883] 975W Written Answers4 JULY 2011 Written Answers 976W

Mike Penning: The potential to reduce administrative representation; if he will place in the Library a copy of requirements on the Vehicle and Operator Services each such response; and if he will make a statement. Agency and traffic commissioners (who are supported [63118] administratively by the agency) is being considered actively including through the Red Tape Challenge and Sarah Teather: I invited a number of relevant businesses, we will announce any proposals for change in due course. industry associations, regulators and other non-governmental organisations to a round table meeting on 27 June to discuss the implementation of the recommendations in “Letting Children be Children”, the report of the independent EDUCATION review of the commercialisation and sexualisation of Academies childhood by Reg Bailey published on 6 June. It was a positive meeting which discussed a wide range of action to respond to the recommendations, some of which is Mr Laws: To ask the Secretary of State for already under way. Education which academies have selected a new sponsor since May 2011; who the sponsor is in each I have also received representations from the Professional such case; and if he will make a statement. [63011] Publishers Association on the display of men’s lifestyle magazines in newsagents and other retail outlets; and Mr Gibb: Since May 2011, the only current academy from the Mothers’ Union giving their response to the where it has been agreed to replace a sponsor is St Bailey review. I will be responding to these in due Michael and All Angels Church of England Academy course. As with other recommendations of the Bailey in Southwark. The academy opened in September 2007, review, it is for the businesses concerned, their trade and is in the process of changing sponsor from the associations and their regulators, to decide how best to Southwark Diocesan Board of Education to Absolute implement the recommendations in order to protect Return for Kids (ARK). The academy will close in July children from excessive commercialisation and premature 2013 and will re-open in September 2013, in new buildings, sexualisation. asa4formofentry ARK Schools Academy. The Department has also received correspondence from members of the public on different aspects of the Academies: Finance Bailey review, including requests for release of information under the Freedom of Information Act 2000. These Mr Jim Cunningham: To ask the Secretary of State individuals will be sent, or have already been sent, for Education how many academies that were subject appropriate individual responses. to errors in their funding allocation in 2010-11 also Departmental Billing experienced an adjustment to their capital funding as a result of the closure of the Building Schools for the Future programme. [61687] Mr Denham: To ask the Secretary of State for Education how many invoices received by his Department were Mr Gibb [holding answer 27 June 2011]: Queries paid (a) on time and (b) late in each month since May have been raised about the 2010/11 funding allocations 2010; and what the monetary value was of invoices paid to Academies in North Yorkshire and Hampshire local late. [62483] authorities, and we are looking into these issues. No Tim Loughton: During the period May 2010 to the Academies in North Yorkshire have been allocated end of May 2011, a total number of 53,688 invoices funding under the Building Schools for the Future were processed and paid on behalf of the Department programme. In Hampshire, Havant Academy had its for Education by our shared services provider. Of this capital allocation reviewed as part of the curtailment of number, 53,109 (98.9%) were paid within the Department’s BSF, and was awarded funding in December 2010. standard payment terms (payment within 30 days of Commercialisation and Sexualisation of Children receipt of a valid invoice). 579 invoices were paid late Review (total value of £47.9 million). The data for each month have been presented in the Mr Amess: To ask the Secretary of State for Education following table. what recent representations he has received on the report During the period, 78% of all invoices were paid of the Independent Review of the Commercialisation within the Government’s target of payment within five and Sexualisation of Childhood, Letting Children be days and 94% within 10 days. In May 2011, we achieved Children; what response his Department gave to each 85%, 97% and 99.5% within five, 10 and 30 days respectively.

Number of invoices paid:1 Within 5 days Within 10 days Late (over 30 days)2 Total invoices Value of late paid within invoices (over month Number Percentage Number Percentage Number Percentage 30 days) (£)

2010

May 5,224 3,979 76 4,898 94 82 1.6 5,605,260 June 5,340 4,141 78 5,043 94 69 1.3 3,941,979 July 3,978 2,944 74 3,717 93 53 1.3 932,340 August 4,502 3,407 76 4,284 95 26 0.6 .1,471,738 977W Written Answers4 JULY 2011 Written Answers 978W

Number of invoices paid:1 Within 5 days Within 10 days Late (over 30 days)2 Total invoices Value of late paid within invoices (over month Number Percentage Number Percentage Number Percentage 30 days) (£)

September 4,009 3,017 75 3,597 90 37 0.9 3,700,384 October 3,976 3,309 83 3,784 95 28 0.7 832,858 November 4,223 3,356 79 4,052 96 22 0.5 962,965 December 3,203 2,467 77 3,035 95 15 0.5 533,855

2011 January 2,897 2,146 74 2,680 93 33 1.1 628,753 February 4,209 3,299 78 3,943 94 161 3.8 27,873,741 March 4,980 3,732 75 4,736 95 25 0.5 739,161 April 3,863 3,257 84 3,778 98 11 0.3 130,928 May 3,284 2,785 85 3,180 97 17 0.5 624,475 Total 53,688 41,839 78 50,727 94 579 1.1 47,978,437 1 Paid into supplier bank account within five, 10 or over 30 days of receipt of a valid invoice at our shared services provider. 2 Standard terms and conditions are to pay within 30 days of receipt of a valid invoice.

Departmental Carbon Emissions http://www2.dft.gov.uk/press/speechesstatements/statements/ hammond20101028a.html Huw Irranca-Davies: To ask the Secretary of State The overall costs for FY 2010/11 are being compiled for Education whether his Department has any plans to and are due for release in July 2011. generate low-carbon energy from its estate. [63246] Information relating to individual ministerial car journeys prior to September 2010 is not available as there was no Tim Loughton: The Department is currently reviewing requirement to collect these data. the feasibility of installing low carbon energy technology In line with the Ministerial Code published in May on one of its main buildings, as part of a forthcoming 2010, the Department for Education has reduced the roof refurbishment project. number of its ministerial allocated cars/drivers from This would be in addition to the 123 photovoltaic five cars to one car. Other Ministers now call on the panels already installed on its building in Sheffield, ‘on-demand’ ministerial car service when needed. which generate over 16,000 kWh of renewable electricity Information relating to the number of ministerial car a year. Solar thermal technology is also installed on two journeys made since the introduction of the ‘on-demand’ of its building to provide hot water. ministerial car service on 6 September 2010 and up until Departmental Official Cars 31 March 2011 for the Department for Education is as follows:

Stephen Williams: To ask the Secretary of State for Month Number of ministerial car journeys Education what the cost to his Department and its predecessors was of the provision of ministerial cars in 2010 each financial year between 2000-01 and 2010-11; how September 47 many (a) cars for the exclusive use of Ministers and October 67 (b) ministerial car journeys were paid for by his November 84 Department in each such year; what the average cost to December 53 his Department of a ministerial car journey was in each such year; and what steps his Department has taken to 2011 reduce the cost of Ministerial cars since his January 68 appointment. [62994] February 32 Tim Loughton: Information relating to the cost and March 72 numbers of ministerial cars for the Department for 426 Education and its predecessors prior to 2005 is not available and could be obtained only at disproportionate Departmental Procurement cost. The information on the cost and numbers of ministerial Mr Denham: To ask the Secretary of State for cars after 2005 to 2009 can be found within the Libraries Education what provisions in respect of behavioural of both Houses via the following annual written ministerial standards have been included in procurement contracts statements: issued by his Department since May 2010. [61675] FY 2005/06: 26 July 2007, Official Report, column 110WS FY 2006/07: 26 July 2007, Official Report, column 111WS Tim Loughton: The Department’s model contracts FY 2007/08: 22 July 2008, Official Report, column 118WS are based on the Office of Government Commerce’s FY 2008/09: 16 July 2009, Official Report, column 80WS terms and conditions The model terms make provision FY 2009/10: published on the Department for Transport’s for behavioural standards under statutory obligations website: and regulations, timely payments to sub-contractors, 979W Written Answers4 JULY 2011 Written Answers 980W appropriate levels of insurance, confidentiality of Mr Gibb [holding answer 23 May 2011]: The following information, provision of suitable staff, security, protection table shows the funding allocated to transitional support of data, confidentiality and discrimination. for those currently in receipt of the education maintenance Since January 2011, the Department has published allowance, and the funding that will be allocated direct its contracts above £10,000 on Contracts Finder where to schools, colleges and training providers for them to details of the conditions can be viewed. award 16-19 bursaries, in each of the next four academic years:

Disability: Ethnic Groups £ million Academic year 2011/12 2012/13 2013/14 2014/15 Paul Uppal: To ask the Secretary of State for Transitional 194.2 — — — Education how many local authorities have provided support his Department with data on steps to support black 16-19 bursary 115.5 180 180 180 and ethnic minority disabled children and their families fund—direct to in accessing short breaks. [63184] providers Total 309.7 180 180.0 180.0 Sarah Teather: 123 out of 152 local authorities in England provided the Department with some information In each academic year the total value of the 16-19 on disabled children accessing short breaks as part of Bursary Fund is £180 million. In 2011/12, which is a their 2009-10 Children in Need (CIN) census return. transitional year, the majority of young people in their second or third year of study who might be expected to The CIN census covers children receiving social care apply for a bursary will be supported via the national support. Not all children who are receiving short breaks administration arrangements. As a result, the amount will be included because some children receive short that will be allocated directly to schools, colleges and breaks without social care involvement. training providers is less than the full value of the 16-19 The following table provides a breakdown of Children Bursary Fund. The allocation has been calculated so as in Need receiving short breaks at 31 March 2010 by to enable schools, colleges and training providers to pay major ethnic group. guaranteed bursaries to all young people in vulnerable Ethnic breakdown of Children in Need in receipt of short breaks in England at 31 groups, discretionary bursaries to young people in their March 2010 first year of post-16 study, and ’top up’ weekly payments Ethnicity Percentage breakdown to those who are currently in receipt of EMA should they consider it appropriate to do so. White 79 Mixed 4 Education: Basic Skills Asian or Asian British 8 Black or Black British 6 Mr Laurence Robertson: To ask the Secretary of Other Ethnic Group 2 State for Education how many hours of teaching in Refused/Not Obtained 1 basic learning skills are required at each key stage; what Total 100 other requirements his Department places on schools Notes: 1. Data based upon local authorities who submitted Children in Need census in relation to teaching of basic learning skills; and if he data at 31 August 2010. will make a statement. [62442] 2. Due to low numbers involved and to protect confidentiality, ethnicity is aggregated into groups. 3. White comprises of White British, White Irish, Traveller of Irish Heritage, Mr Gibb [holding answer 27 June 2011]: There are no Any Other White background and Gypsy/Roma. requirements placed on the number of hours that schools 4. Mixed comprises of White and Black Caribbean, White and Black African, must devote to the teaching of basic learning skills. White and Asian, Any other Mixed background. 5. Asian or Asian British comprises of Indian, Pakistani, Bangladeshi, and Any Schools are required to teach a broad and balanced other Asian background. curriculum, which may include such skills, but they are 6. Black or Black British comprises of Caribbean, African or Any other Black free to use their professional judgment on how this is background. 7. Other Ethnic Groups comprises of Chinese and Any other ethnic group. organised and delivered. Building on the statutory 8. Short breaks includes seven different settings: overnight in child’s home, curriculum, which is comprised of the basic school overnight in carer’s home, overnight in another setting, day-care in child’s curriculum and National Curriculum, we believe it should home, day-care in carer’s home, day care in another setting, befriending service. 9. Some Children in Need may be receiving short breaks in two or more be for individual schools to determine a curriculum different settings. Each child is only included once in the above table. structure that best meets the needs of their pupils. Source: 2009-10 Children in Need census English Baccalaureate The CIN census was not fully completed by local authorities in 2009-10, and therefore it is not possible to provide the above information at local authority level. Yasmin Qureshi: To ask the Secretary of State for Education what assessment he has made of the potential for school staff redundancies in subjects not Discretionary Learner Support Fund included in the English Baccalaureate. [60160]

Nic Dakin: To ask the Secretary of State for Education Mr Gibb: The English baccalaureate is an option that pursuant to the answer of 10 May 2011, Official Report, we think should be open to all who have the ability to column 1139W, on the Discretionary Learner Support benefit from it although it may not be suitable for all Fund, how much funding he has allocated to (a) pupils. Individual schools will take decisions on the transitional support for students currently in receipt of subjects they offer based on the needs and choices of education maintenance allowance and (b) the 16 to 19 their pupils. There is also considerable scope to take Bursary Fund in the next four academic years. [56219] other subjects alongside the English baccalaureate. 981W Written Answers4 JULY 2011 Written Answers 982W

The Department’s assessment of the number of new from September 2014. Beyond this, the review will also teachers required to be trained annually will continue to advise on matters relating to the implementation of the take account of a number of factors including teacher new national curriculum as described in its remit. turnover. The number of teachers that schools employ The call for evidence for phase 1 of the review closed in future years will, as now, be a matter for them to on 14 April and we are currently analysing responses. decide, according to local needs and subject to statutory The call for evidence summary report will be published requirements on class sizes where appropriate. in due course. The review is continuing its work to analyse curricular Free Schools: Bradford design in the most successful international education jurisdictions, and is feeding that analysis into the Mr Ward: To ask the Secretary of State for development of new programmes of study for English, Education what estimate he has made of the cost to the mathematics, science and physical education. At the public purse of establishing the King’s Science same time it is also considering which other subjects Academy free school in Bradford. [62532] should continue to feature in the national curriculum. It is our intention to publish our proposals early next year, Mr Gibb [holding answer 27 June 2011]: We intend to in line with the published timetable. publish business cases, Funding Agreements, and financial information for approved Free Schools when their final costs have been agreed. As is the case for all Free School Nurseries: Complaints projects, we are working to ensure that Bradford Science Academy (formerly known as King’s Science Academy) Angela Smith: To ask the Secretary of State for represents a value for money investment of public funds. Education (1) how many and what proportion of Publishing financial information before negotiations complaints made against childcare or day nursery are finalised could make it more difficult to save taxpayers’ businesses in 2010-11 were found to be (a) unfounded money. and (b) malicious; and what proportion were referred to the police for further investigation; [62130] National Curriculum Review (2) how many and what proportion of complaints made against childcare or day nursery businesses in the Tristram Hunt: To ask the Secretary of State for (a) Metropolitan borough of Barnsley and (b) city of Education what recent discussions he has had on the Sheffield in 2010-11 were found to be (i) unfounded National Curriculum Review with (a) officials in his and (ii) malicious; and what proportion were referred Department and (b) external organisations. [63025] to the police for further investigation. [62131]

Mr Gibb: The Secretary of State for Education, my Sarah Teather: This is a matter for Ofsted. HM Chief right hon. Friend the Member for Surrey Heath (Michael Inspector, Christine Gilbert, has written to my hon. Gove) and I have had a number of discussions with Friend and a copy of her reply has been placed in the officials within the Department of Education about the House Libraries. progress of the national curriculum review since it was launched earlier this year. In addition, he and I have, Letter from Christine Gilbert, dated 23 June 2011: both separately and jointly, held a number of meetings Your recent parliamentary questions have been passed to me, and discussions with external organisations, such as as Her Majesty’s Chief Inspector, for response. teacher unions, subject associations and learned bodies, As the regulator for childcare in England, Ofsted, the Office to discuss the review and the reform of the national for Standards in Education, Children’s Services and Skills, receives curriculum. a significant number of concerns or complaints about people running childcare or day nursery businesses. Tristram Hunt: To ask the Secretary of State for Ofsted’s role as a regulator is not to prove or disprove the information provided by complainants. Instead, our responsibility Education (1) what timetable his Department has is to consider, in the light of that information, whether the established for the completion of the national provider is failing to meet, or failed to meet at the time of any curriculum review; [63026] incident, the requirements and conditions of their registration. (2) when his Department plans to publish its We investigate all concerns raised with us in order to determine response to the evidence received in the course of the whether the provider has breached requirements, and we take action where we find this to be the case. For these reasons we do call for evidence phase of the national curriculum not hold data that specifically addresses the queries raised. We review; [63027] do not record complaints as founded or unfounded, and neither (3) when recent assessment he has made of progress do we know whether or not a complaint was made maliciously. on the national curriculum review. [63028] Some additional background may be helpful. Between 1 April 2010 and 31 March 2011, Ofsted looked into 8,750 concerns or Mr Gibb: Full details of the review of the national complaints received against registered (and unregistered) childcare curriculum, including its timetable, are available to view providers in England. on the Department’s website. We intend to publish new In 4,997 cases we found that the provider was meeting all the programmes of study for English, mathematics, science requirements for continued registration and it was not necessary and physical education in autumn 2012, with first teaching for us to take any further action. 1,638 cases were referred to other agencies, including the local authority and the Police. The in schools from September 2013. New programmes of most common type of referral in such cases was to Local Authority study for any other subjects that are to form part of the Designated Officers (LADOs) to ensure that appropriate safeguarding new national curriculum will be made available to schools action could be taken. Various degrees of enforcement action by September 2013, with teaching in maintained schools were taken in the other cases. 983W Written Answers4 JULY 2011 Written Answers 984W

A copy of this reply has been sent to Sarah Teather MP, baccalaureate is to encourage wider take up of geography Minister of State for Children and Families, and will be placed in and history in addition to, rather than instead of, the library of both Houses. compulsory religious education. There is considerable Parents: Ethnic Groups scope to take other subjects alongside the English baccalaureate. Paul Uppal: To ask the Secretary of State for The initial teacher training (ITT) targets for 2011/12 Education what information his Department holds on were announced on 31 January 2011 and published as the number of black and ethnic minority parents and part of the Statistical First Release on School Workforce carers participating in parents forums in each local (SFR11/2010). The ITT target for religious education authority area. [63183] for courses starting in 2011/12 is 460. The ITT targets beyond this, including religious education, have not yet Sarah Teather: The Department for Education does been assessed but will continue to take account of a not collect data about individuals participating in parents’ number of factors including decreasing secondary pupil forums for parents of disabled children. numbers. The number of teachers that schools employ in future years will, as now, be a matter for them to The Department has recently undertaken provided decide, according to local needs and subject to statutory funding to three regional groups of parents’ forums to requirements on class sizes where appropriate. find ways to better engage with parents and carers from black and ethnic minority groups. We will publish more Religion: English Baccalaureate details of the findings from those pilots over the summer. Physical Education Esther McVey: To ask the Secretary of State for Education what representations he has received from the National Association of Teachers of Religious Stephen McPartland: To ask the Secretary of State Education on the exclusion of religious education from for Education if he will make emergency life support the English Baccalaureate; and if he will make a skills part of the physical education syllabus; and if he statement. [63677] will make a statement. [62914] Mr Gibb: Officials have held a number of meetings Mr Gibb: The Government have no plans to make with NATRE, who have submitted information about emergency life support skills a part of the physical the impact that they anticipate the English Baccalaureate education syllabus. The non-statutory programmes of will have on RE teaching in future. We do not currently study for personal, social, health and economic (PSHE) collect systematic data on detailed subject option choices education currently provide a context for schools to offered by schools or the choices pupils make on their teach pupils how to recognise and follow health and GCSE subjects. However, the Department has work safety procedures, including ways of reducing risk and underway to assess whether and how the English minimising harm in risky situations, how to find sources Baccalaureate has influenced GCSE choices made in of emergency help and how to use basic and emergency schools from September 2011. We will use this, together first aid. Pupils learn to develop the skills to cope with with a range of other information sources, to inform emergency situations that require basic first aid procedures, future policy development. including, at key stage 4 (ages 15 to 16), resuscitation techniques. Religion: Secondary Education Primary Education: Chess Vernon Coaker: To ask the Secretary of State for Education what representations he has received from Yasmin Qureshi: To ask the Secretary of State for the National Association of Teachers of Religious Education if he will take steps to ensure that children Education on the effects of the English Baccalaureate are taught chess during their primary school education. proposals on religious education in secondary schools. [60945] [63245]

Mr Gibb: By reducing the requirements of the national Mr Gibb: Officials have held a number of meetings curriculum and by other measures which will reduce with NATRE, who have submitted information about bureaucratic burdens on schools, the Government are the impact that they anticipate the English Baccalaureate giving schools the space and resources to provide a truly will have on RE teaching in future. We do not currently rounded education for all pupils. collect systematic data on detailed subject option choices offered by schools or the choices pupils make on their Religion: Education GCSE subjects. However, the Department has work underway to assess whether and how the English Caroline Nokes: To ask the Secretary of State for Baccalaureate has influenced GCSE choices made in Education what recent assessment his Department has schools from September 2011. We will use this, together made of the effect of excluding religious education with a range of other information sources, to inform (RE) from the English Baccalaureate on the number of future policy development. student teachers specialising in RE. [61289] Schools: Assessments Mr Gibb: Religious education does not count towards the humanities element of the English baccalaureate John Mann: To ask the Secretary of State for Education because it is already a compulsory subject. The teaching (1) on what dates he met representatives of school of religious education remains compulsory throughout examination boards between 16 May and 22 June 2011; a pupil’s schooling. One of the intentions of the English [62352] 985W Written Answers4 JULY 2011 Written Answers 986W

(2) when he was first informed of errors in school and what steps (a) he and (b) the AQA have taken in examination papers for use in 2011; and on what subsequent consequence; [62555] occasions he has been informed of errors in such papers; (6) on what date the errors in the AQA AS-level [62353] geography paper of 24 May 2011 were first identified; (3) on what date he directed that all school by whom; and what steps (a) he and (b) the AQA have examination papers should be rechecked; and on what taken in consequence; [62556] date he received the report of that exercise; [62575] (7) when Ofqual completed its additional checks on (4) whether he plans to ensure that no student affected examination papers; [62561] by an error in an A-level examination paper is refused a place at the university of their choice as a result of (8) on what date he was first informed of errors in any effect of the error on the final examination grade. examination questions in the Edexcel biology paper of [62576] 16 May 2011; what information Edexcel provided to him (a) at that point and (b) subsequently; what steps Mr Gibb [holding answer 27 June 2011]: As the the examination board have taken in consequence; what regulator of the awarding bodies and qualifications, estimate has been made of the number of students Ofqual is taking swift and robust action to hold awarding affected by the error; and whether any estimate has been bodies to account for these unacceptable errors. Since made of the number of students whose future educational the Secretary of State was first made aware of an error opportunities will be adversely affected; [62562] in examination papers taken in schools during the summer (9) what information he has received from Edexcel 2011 series on 3 June, he has been informed as each on the steps it plans to take to quantify the potential additional error has been identified and has repeatedly effect on examination results of the error in the biology spoken with Ofqual’s chief executive and asked to be examination of 16 May 2011; [62563] updated on their intended course of action. (10) what steps Edexcel has proposed to take to Ofqual met the chief executives of the awarding remedy issues arising from errors in its examination bodies responsible for GCE and GCSE examinations papers in 2011; and on what date he was notified of between 16 May and 22 June, and it was Ofqual’s such proposals; [62564] decision, which the Secretary of State supports, to write to the chief executives of all awarding bodies responsible (11) how many GCSE, AS and A-level exam papers for GCE and GCSE examinations on 7 June. In her were sat between 9 and 22 June 2011; how many such letter, the chief executive of Ofqual required the awarding papers (a) were and (b) were not double-checked for bodies concerned to give their written assurance that errors; and in respect of how many which had been they had implemented additional checks on the question double-checked errors were discovered while students papers for examinations that remained still to be taken, were sitting the examinations; [62565] to ensure that there were no further errors that had been (12) what estimate his Department has made of the missed by earlier quality assurance processes. Each (a) potential maximum and (b) average difference to a awarding organisation provided Ofqual with written mark issued for an examination paper in which there assurances by 13 June that such additional quality was a live error once the examination board has taken checks had been or would be made before papers were sat. steps to account for the error; [62566] Ofqual will also be checking the awarding organisations’ (13) which examination papers set in the arrangements for securing redress, to ensure they are examination period of May and June 2011 contained fair both to the candidates who were directly affected, live errors; and in respect of which such papers erratum and those who were not. notices were issued; [62567] John Mann: To ask the Secretary of State for Education (14) on what date errors on the OCR mathematics (1) on what date the OCR A-level physics paper of 21 paper of 26 May 2011 were first identified; by whom; June 2011 was rechecked for errors; on what date the and what steps (a) he and (b) the examination board error in the examination was first identified; by whom; have taken in consequence; [62568] and what steps (a) he and (b) the OCR have taken in (15) on what date errors in the Edexcel Economics consequence; [62551] Unit 2 AS Macro paper of 27 May 2011 were first (2) on what date the OCR GCSE Latin paper of 20 identified; by whom; and what steps (a) he and (b) the June 2011 was rechecked for errors; on what date the examination board have taken in consequence; [62569] error in the examination was first identified; by whom; (16) on what date errors in the OCR AS-level ICT and what steps (a) he and (b) the OCR have taken in Coursework mark scheme were first identified; by consequence; [62552] whom; what steps OCR have taken in consequence; (3) on what date the errors in the AQA business and what consideration was given to issuing an erratum studies paper of 24 May 2011 were first identified; by notice in respect of the errors; [62570] whom; and what steps (a) he and (b) the AQA have taken in consequence; [62553] (17) how many errata notices were issued by examination boards (a) in each year since 2007 and (4) on what date the AQA GCSE mathematics paper (b) in 2011 to date; [62571] of 14 June 2011 was rechecked for errors; on what date the error in the examination was first identified; by (18) what (a) the policy and (b) practice of (i) whom; and what steps (a) he and (b) the AQA have Ofqual and (ii) its predecessor has been on the collection taken in consequence; [62554] of information on live examination errors; [62572] (5) on what date the AQA AS-level computing paper (19) how many examination papers (a) had and (b) of 14 June 2011 was rechecked for errors; on what date had not been checked by examination boards following the error in the diagram was first identified; by whom; the reports made by Ofqual as at 21 June 2011; [62573] 987W Written Answers4 JULY 2011 Written Answers 988W

(20) how many errors in examination papers set by about which specific individual or centre identified the error. (a) AQA, (b) EdExcel and (c) OCR were found as a Secondly, we do not hold information about the dates on which result of the reports by Ofqual of 9 June 2011 before checks on examination papers were made, nor do we hold information examinations were sat; and what steps were taken in about the numbers of papers that were or were not re-checked. (Both, ref PQ nos: 62551, 62553, 62552, 62554, 62555, 62556, cases where errors were found. [62574] 62563, 62568,). Thirdly it is not possible to estimate the maximum and average difference to a mark issued as each situation is Mr Gibb: The errors that have come to light in different. (Ref PQ: 62566). GCSEs and A Levels are extremely serious and are Where we are in a position to answer your questions, I have unacceptable. As the regulator of awarding organisations grouped our responses below by theme. and the qualifications they offer, the Office of Qualifications and Examinations Regulation (Ofqual) have taken swift Action Ofqual has taken and robust action to hold awarding organisations to (Ref PQ no: 62561) account for these mistakes, and to check that any mistakes On 7 June Ofqual wrote to all GCSE and A level awarding in as yet untaken exams are identified and put right. organisations to require them to carry out additional quality Ofqual will also be checking the awarding organisations’ checks on examinations that had yet to be taken. Each awarding arrangements for securing redress, to ensure they are organisation provided Ofqual with written assurances by 13 June that such additional quality checks had been made or would be fair both to the candidates who were directly affected, made before papers were taken. and those who were not. The Secretary of State for When it became apparent that further, avoidable, errors had Education has had regular updates from the chief executive occurred, I visited OCR to discuss these errors. Glenys Stacey and of Ofqual, Glenys Stacey, on Ofqual’s current action. I also met with the Chief Executive Officers of the Awarding He has also asked to be kept informed about further Organisations delivering GCSEs and GCEs last week. steps they will be taking to ensure that awarding We have published two statements on our website - one specifically organisations do not repeat these mistakes. Fiona Pethick, aimed at candidates and another setting out the action we are Director of Regulation at Ofqual has written to the taking. Ofqual has also published a detailed list of the specific hon. Member providing further details and a copy of examination papers that have been affected so that candidates can her reply has been placed in the House Libraries. know whether or not they are affected and to know which Letter from Fiona Pethick, dated 28 June 2011: awarding organisation to contact if they wish for further information. I am responding to your parliamentary questions on behalf of We have announced that we will publish, this week, information Glenys Stacey, the Chief Executive of the Office of Qualifications about our inquiry into the errors this summer to establish all the and Examinations Regulation (Ofqual). Ofqual is the independent facts, identify the root causes and make recommendations for regulator of qualifications, examinations and assessments in England action to help ensure, so far as possible, that such avoidable errors and of vocational qualifications in Northern Ireland. do not happen in future. You will be aware that a number of your parliamentary questions Live errors relating to errors in this summer’s examination papers have been (Ref PQ nos: 62565, 62567) passed from the Secretary of State to Ofqual to answer as they fall The published examination timetables show that between 9 within our regulatory remit. These errors in examination papers and 22 June this year, 438 GCSE and 345 GCE papers were are unacceptable and Ofqual is taking action to understand the scheduled. root cause, ensure candidates affected get as fair a result as possible, and to consider what changes may be needed in future to The following papers taken by candidates in England had awarding organisation processes and procedures. Later this week errors in them which were not identified and corrected before the we will be publishing details of our inquiry into these errors. paper was taken. The notification dates are also included. There are three particular areas where Ofqual is not in a (Ref PQ nos: 62553, 62555, 62556. 62554, 62563, 62552, 62568, position to answer your questions. First, we do not hold information 62551)

Awarding organisation Subject Date Sat Date notified to Ofqual

AQA GCE AS Business Studies—Unit 2 Managing a Business: BUSS2 24 May 2011 3 June 2011 AQA GCE AS Computing—Unit 2 Computer Components, The Stored Program 7 June 2011 8 June 2011 Concept and the Internet: COMP2 AQA GCE AS Geography—Unit 2 Geographical Skills: GEOG2 24 May 2011 3 June 2011 AQA GCSE Mathematics (new specification)—Unit 2 Number and Algebra: 43602F1 21 June 2011 21 June 2011 CCEA GCSE Business Studies—Unit 2 Business Development 6 June 2011 7 June 2011 Edexcel GCE AS Biology—Unit 1 Lifestyle, Transport, Genes and Health: 6BI01 16 May 2011 17 May 2011 OCR GCSE Latin—Unit 3 Latin Prose Literature: A403/02 20 June 2011 20 June 2011 OCR GCEAS Maths-Decision—Mathematics 1:4736 26 May 2011 27 May 2011 OCR GCE A2 Physics A—Fields, Particles and Frontiers of Physics: G485 21 June 2011 21 June 2011 1 Printing error affecting some of the question papers.

Of these errors, three came to light after the additional checks OCR GCE AS level ICT coursework. Ofqual received a complaint had been made. about this paper on 16 June 2011. We have requested a detailed You also asked a series of questions about Edexcel Biology. We response from OCR to ascertain the number of candidates potentially understand that 17,003 candidates sat this particular paper. Only affected by this complaint, the timeline, the rationale for not one mark is affected for this particular AS unit so it is unlikely to re-issuing a corrected mark scheme and the specific instructions have a significant impact on students’ future education opportunities. given to moderators. (Ref PQ no: 62570) (Ref PQ no; 62562) Edexcel GCE AS Economics paper. Ofqual received a number Complaints of complaints about this paper and Edexcel have confirmed that Ofqual has received complaints in relation to two papers that although the paper does not contain an error it does contain a are mentioned in your Parliamentary Questions. These are: 989W Written Answers4 JULY 2011 Written Answers 990W question which could be answered in more than one way. Guidance I would welcome the opportunity to meet with you to discuss has been issued to the marking team highlighting the two acceptable these issues and to hear your views on the regulation of awarding answers. (Ref PQ no: 62569) organisations. My office will be in touch to offer dates. Redress and actions that awarding organisations have taken (Ref PQ no: 62551, 62552, 62553, 62554, 62555, 62556, 62563, 62564, 62568) John Mann: To ask the Secretary of State for Ofqual has written to all relevant awarding organisations Education (1) how much time he has spent on the highlighting the importance of taking effective steps to limit the matter of examination question errors since 16 May impact on students’ marks and grades. The appropriate mechanisms 2011; whom he has met, and on what date, in the for redress will differ depending on the context and we have course of his work on this issue; and if he will publish confirmed that the following options could be considered: the minutes of each such meeting; [62558] Adjustments of the marking scheme to omit the question concerned or to give all students credit for the question concerned, (2) what information his Department holds on the Taking account of all available evidence in awarding grades, (a) names of schools and (b) proportion of schools including: with candidates in the Edexcel biology paper of 16 statistical analyses to understand any potential impact on May 2011 which added time on to the examination students performance on questions that followed the error, and period; [62559] statistical analyses comparing students’ performance on the (3) how many errors in examination questions have affected units with their performance on other units. been notified to his Department since 9 June 2011; Allowing applications for special consideration, where appropriate, [62560] Providing a no fee re-sit at the next opportunity, and (4) what discussions he has had with representatives Providing an additional no fee re-sit before the end of the of Edexcel on the provision of means of redress to summer 2011 series. students who sat its A-level biology examination on 16 Each awarding organisation has .been required to provide May 2011 and were affected by errors in the Ofqual with a detailed report for each affected question paper examination questions. [62646] which details the actions planned, informed by the analysis, together with the rationale for those actions. These will be received in the coming weeks once marking is completed. Mr Gibb: The Secretary of State for Education, my In all cases awarding organisations have sent a letter of apology to schools and colleges (known as centres) where an error in an right hon. Friend the Member for Surrey Heath (Michael examination paper has come to light. Gove), has held no meetings with third parties outside For the AQA GCSE Mathematics paper where the issue was a Government on this issue. The Secretary of State spoke printing error, AQA have instigated an investigation with the to Glenys Stacey, the chief executive of Ofqual on printer of this paper. Tuesday 21st, Wednesday 22nd, Friday 24th and Saturday Errata and re-prints 25th June on this matter. The Secretary of State’s office does not provide minutes of such meetings, which are (Ref PQ no: 62571, 62572) based on the provision on private advice to Ministers. I It is established policy and practice, both by Ofqual and its met Andrew Hall, chief executive of AQA informally at predecessor organisation, the Qualifications and Curriculum Authority a conference organised by Reform on Tuesday 28 June. (QCA), to require awarding organisations to provide timely notification of incidents that pose a threat to the integrity of the qualifications The Department does not collect information on the system. In the context of examination errors, we require awarding individual examination papers chosen by schools, or on organisations to notify the regulators where an error is found that their conduct of examinations. may threaten the validity of the assessment, An element of professional judgement has always been required about the nature Since 9 June, two examination question errors have and impact of an error. been reported to the Department. In addition one printing Where an error is found before an examination paper is taken, error, which had implications for the majority of questions either the paper is replaced or an erratum is issued. We routinely on a GCSE mathematics paper, has been reported. collect information at the end of each examination, series about the number of errata issued. We can confirm that in 2010 there The errors that have been identified are unacceptable, were 34 erratum notices, in 2009 there were 34 erratum notices, in and the examination awarding bodies concerned must 2008 there were 18 erratum notices and in 2007 there were 27 take full responsibility for measures to ensure that erratum notices. For the 2011 examination series we will receive candidates are not unfairly disadvantaged by the errors, final information about errata that were issued prior to 7 June 2011 once all the examinations have been taken. However, we do and to ensure that it does not happen again. In doing so know that there were 15 erratum notices which were issued as a they must satisfy Ofqual that they are taking appropriate result of the additional checks that we required. action to mitigate the impact of these errors. For each of the following awarding organisations we can To date, Ofqual is concentrating its efforts on the confirm that the following errors were identified and rectified as a steps awarding organisations need to take now to ensure result of the checks. (Ref PQ nos: 62573, 62574) there are no further mistakes in this summer’s series and make sure that awarding bodies are putting in place Number of Clarification errors Erratum notice Replaced arrangements for securing redress, to ensure they are fair both to the candidates who were directly affected, AQA 8 6 0 2 and those who weren’t. It is extremely important that Edexcel 4 1 3 0 effective steps are taken to limit the impact on students’ OCR 4 4 0 0 marks and grades, and maintain standards overall. Such Please be assured that Ofqual takes the issue of errors in redress aims to make good so far as is possible. Wider examinations very seriously and we will continue to oversee the redress measures are broadly a matter for awarding actions of the awarding organisations to make sure that candidates organisations and they have been encouraged by Ofqual are not unfairly advantaged or disadvantaged. to be transparent with candidates about these. 991W Written Answers4 JULY 2011 Written Answers 992W

Schools: Inspections inspection during the academic years 2005/06 to 2009/10 inclusive in Kent local authority and Dartford constituency. Equivalent data have also been provided for England for context, and the Gareth Johnson: To ask the Secretary of State for table shows the total number of inspections in each of these areas Education how many schools achieved a rating of in each year. outstanding in their Ofsted inspection in (a) Kent and In September 2009, Ofsted implemented a policy of more (b) Dartford constituency in each of the last five years. proportionate inspection using risk assessment as an aid to scheduling [61937] the inspection of good and outstanding schools. We deliberately set out to inspect a greater proportion of previously satisfactory or inadequate schools each year and a smaller proportion of Mr Gibb: This is a matter for Ofsted. HM Chief previously good or outstanding schools. The sample of schools Inspector, Christine Gilbert, has written to my hon. inspected is therefore skewed and means that comparisons between Friend and a copy of her reply has been placed in the years should be treated with caution as some differences are due House Libraries. to the very different sample of schools inspected during the Letter from Christine Gilbert, dated 24 June 2011: different periods. Statistics covering the outcomes of all inspections carried out Your recent parliamentary question has been passed to me, as in each academic year since 2005/06 can be found at: Her Majesty’s Chief Inspector, for response. http://www.ofsted.gov.uk/Ofsted-home/Publications-and- Since 2005, maintained school inspections have been carried research/Browse-all-by/Documents-by-type/Statistics/ out under section 5 of the Education Act 2005. Ofsted records all Maintained-schools/Inspection-outcomes judgements made by Inspectors in section 5 inspections, including The most recent official statistics release covering the outcomes the judgement for overall effectiveness of the school. of maintained school inspections carried out during the autumn Maintained schools inspected under section 5 include nursery, and spring terms 2010/11 were released on 15 June 2011 and can primary, secondary (including academies and city technology be accessed at the same link. colleges), special schools and pupil referral units. A copy of this reply has been sent to Nick Gibb MP, Minister Table A below shows the number of maintained schools judged of State for Schools, and will be placed in the library of both to be outstanding for overall effectiveness at their section 5 Houses.

Table A: Schools judged outstanding for overall effectiveness at their section 5 inspection in (a) England (b) Kent local authority (c) Dartford constituency in each of the last five years Number/percentage 2005/06 2006/07 2007/08 2008/09 2009/10

Number of schools judged outstanding for overall effectiveness, and as a percentage of total number of inspections in the area England 648 (11%) 1,150 (14%) 1,146 (15%) 1,327(19%) 782 (13%) Kent local authority 13 (9%) 24 (12%) 26 (11%) 21 (11%) 13 (8%) Dartford constituency1 00301

Total number of inspections in academic year England 6,128 8,323 7,866 7,065 6,171 Kent local authority 148 203 233 192 157 Dartford constituency 9 14 19 14 9 1 Where numbers are small, percentages are not displayed.

Schools: Libraries Our aim is to put as much money as possible directly into schools’ budgets, allowing schools to target resources Simon Danczuk: To ask the Secretary of State for appropriately and to make their own choices about Education (1) what recent assessment he has made of their school library provision and book resourcing. the state of school library services; and if he will make The Department has made no estimate of the likely a statement; [61893] number of schools library closures or any assessment of (2) whether he has made an estimate of the likely the likely number of redundancies in the next academic number of school library closures in the next academic year. However, through the School Workforce Survey year; and if he will make a statement; [62202] the Department collects data on the number of librarians (3) whether he has made an estimate of the likely in maintained schools in England and on the number of number of redundancies among school librarians in the schools with librarians. The most recent data collected next academic year; and if he will make a statement. is as follows: [62210] Headcount number of librarians in service in publicly-funded schools, by phase of education, November 2010, England Mr Gibb: A good school library is a very valuable Number resource for pupils and teachers. Nursery and primary 850 As we said in our response to the commission set up by the National Literacy Trust and Museums, Libraries Secondary 3,290 and Archives ″School Libraries: A Plan for Improvement″, Academies and CTCs 350 school libraries are not compulsory, but good school Special 30 libraries and schools library services make a positive Centrally-employed 40 contribution to children’s literacy. Total 4,570 993W Written Answers4 JULY 2011 Written Answers 994W

Headcount number of librarians in service in publicly-funded schools, candidates who were directly affected, and those who by phase of education, November 2010, England were not. It is extremely important that effective steps Number are taken to limit the impact on students’ marks and Note: grades, and to maintain standards overall. Figures are rounded to the nearest 10. The Secretary of State for Education, my right hon. Source: Friend the Member for Surrey Heath (Michael Gove), School Workforce Census. spoke to Glenys Stacey, the chief executive of Ofqual Number of schools with librarians in service in publicly-funded schools, by phase of education, November 2010, England on Tuesday 21st, Wednesday 22nd, Friday 24th and Number Saturday 25th June on this matter.

Nursery and primary 800 Secondary 2,210 Teachers: Academies Academies and CTCs 230 Special 30 Michael Fallon: To ask the Secretary of State for Centrally-employed1 10 Education what arrangements are made for the Total 3,270 protection of the terms and conditions of teachers, 1 Centrally employed librarians shows the number of local authorities teaching assistants and support staff of schools which that employ librarians to visit various schools. become Academies. [62620] Note: Figures are rounded to the nearest 10. Source: Mr Gibb [holding answer 28 June 2011]: When a School Workforce Census. school converts to Academy status all staff who choose Schools: Vocational Guidance to move to the new Academy from the predecessor school transfer on their existing terms and conditions Kate Green: To ask the Secretary of State for of service under the Transfer of Undertaking (Protection Education what steps he plans to take to ensure that of Employment) regulations (TUPE). schools comply with their statutory duty to provide The existing employer—either the local authority for independent advice and guidance for year 11 pupils in community and voluntary controlled schools or the an impartial manner; and what steps he plans to take to school governing body for foundation and voluntary monitor the quality of the advice and guidance given. aided schools—must consult with staff if it envisages [62408] that it will take measures related to the transfer which will affect employees, such as dealing with restructuring Mr Gibb: Schools should be accountable to the pupils, or changing terms to ensure that the views of all affected parents and communities they serve. The evidence of staff are taken into account. whether schools are succeeding will be demonstrated both through pupil achievement and, crucially, through the destinations measure we plan to publish. If pupils Vocational Education are achieving and progressing then we should assume the school is providing effective support to inform the Mr Graham Stuart: To ask the Secretary of State for decisions that pupils make about their future education Education (1) what discussions he has had with and career. ministerial colleagues on steps to revive junior The Government have also accepted the recommendation technical provision; [62806] of the Careers Profession Task Force to ask Ofsted to (2) what assessment he has made of the steps which carry out a thematic review of careers guidance as a would be required to revive junior technical provision; means of identifying excellent provision and establishing [62807] a baseline for future policy development. We are considering the most appropriate timing for this. (3) what his Department’s policy is on implementation of the recommendations of Alison Students: Compensation Wolf’s report on vocational learning on the revival of junior technical provision. [62808] John Mann: To ask the Secretary of State for Education (1) whether he has assessed the merits of Mr Gibb: In her report on vocational education, paying compensation to students who failed to gain a Professor Wolf highlighted the role that colleges can place at the university of their choice as a result of play in providing vocational options for 14 to 16-year-olds being awarded a lower grade arising from errors in and suggested that if colleges enrol students under 16 examination questions; [62662] then they can revive junior technical provision’. She (2) at what time and on what day (a) he and (b) recommended that the Government make explicit the other Ministers in his Department (i) first and (ii) legal right of colleges to enrol students under 16 and subsequently spoke to Ofqual on live errors in ensure that funding procedures make this possible. examination papers in May and June 2011. [62593] In response to Professor Wolfs recommendations, all of which were accepted by Government, we made a Mr Gibb [holding answer 28 June 2011]: To date, commitment to communicate to all schools and colleges Ofqual is concentrating its efforts on the steps awarding that more young people should be offered the opportunity organisations need to take now to ensure there are no to enrol in college pre-16. We also made a commitment further mistakes in this summer’s exams and make sure to work with colleges in the autumn to investigate the that awarding bodies are putting in place arrangements barriers to pre-16 enrolment in colleges and consider for securing redress, to ensure they are fair both to the the next steps. 995W Written Answers4 JULY 2011 Written Answers 996W

INTERNATIONAL DEVELOPMENT have discussed the task with officials involved in post-conflict planning after the invasion of (a) Afghanistan in 2001 Departmental Official Cars and (b) Iraq in 2003. [63087]

Stephen Williams: To ask the Secretary of State for Mr Andrew Mitchell: A number of Department for International Development what the cost to his Department International Development officials in the Libya Crisis was of the provision of ministerial cars in each financial Unit have personal experience of post-conflict planning year between 2000-01 and 2010-11; how many (a) cars for Afghanistan and Iraq. They have also worked closely for the exclusive use of Ministers and (b) ministerial with the International Stabilisation Response Team which car journeys were paid for by his Department in each includes people with post-conflict planning experience such year; what the average cost to his Department of a from across Government and more widely. ministerial car journey was in each such year; and what steps his Department has taken to reduce the cost of The UK Government’s tri-departmental Stabilisation ministerial cars since his appointment. [62997] Unit was formed in 2004 as a response to the challenges faced in Iraq and Afghanistan. It provides expertise to Mr Duncan: Details of the number and cost of ministerial the Whitehall teams working on Libya post-conflict cars from 2005-06 to 2009-10 have been published annually planning based on practical lessons from previous work by written statement and are available in the Library of in conflict states (including Iraq and Afghanistan). the House. Details for 2010-11 are being compiled and will be released during July 2011. Information prior to Mr Douglas Alexander: To ask the Secretary of State 2005 is not available and can be obtained only at for International Development how many staff of his disproportionate cost. Department work in its Libya Unit; and what the On taking up office all three Department for International budget of that unit for 2011-12 is. [63088] Development (DFID) Ministers were given the use of a dedicated Government Car Service (GCS) car and driver. Mr Andrew Mitchell: There are currently 15 people Following the publication of the 2010 Ministerial Code working full time in the DFID London Libya Crisis in May, Ministers agreed that only the Secretary of Unit, which also receives part-time support from a State would have use of his own car, and that all other conflict adviser (50%) and a conflict, humanitarian and DFID Minsters should use cars from the GCS pool. security (CHASE) humanitarian response manager (25%). DFID immediately took steps to terminate our existing The UK has set aside £20.6 million to support post GCS contract, which contained a three-month notice conflict stabilisation activities for Libya. This includes period, and has tendered commercially through the £8.5 million from the tri-departmental conflict pool and Official Journal of the European Community our £12 million from DFID funds for Official Development requirement for these services to ensure that we obtain Assistance (ODA) eligible activities. best value for money. Any future humanitarian response will be needs based From 4 September 2010 the Parliamentary Under- with a very clear focus on delivering results and adding Secretary of State and I have used cars from the GCS value to the international response. pool and have made 545 journeys to 31 March 2011. The number of journeys made by the Secretary of State Pakistan: Overseas Aid since September 2010 and information relating to individual ministerial car journeys prior to September 2010 is not available and can be obtained only at disproportionate Mr Douglas Alexander: To ask the Secretary of State cost. for International Development what steps his Department is taking to support education in Khyber Libya: Armed Conflict Pakhtunkhwa province, Pakistan. [63019]

Mr Douglas Alexander: To ask the Secretary of State Mr Andrew Mitchell: Pakistan faces an education for International Development pursuant to the answer emergency. In Khyber Pakhtunkhwa around half the of 20 June 2011, Official Report, column 27W, on population is illiterate; for females aged nine to 39, this Libya: armed conflict, what the Civil Service grade is of rises to almost three quarters. As part of the UK the most senior official of his Department working on Government’s commitment to get up to 4 million children post-conflict planning. [63084] into school in Pakistan by 2015, our support to implement the Education Sector Plan in Khyber Pakhtunkhwa will Mr Andrew Mitchell: The director general for the get more than 600,000 boys and girls into primary middle east and North Africa leads the Libya post-conflict school, and more than 200,000 boys and girls into planning work of the Department for International secondary school. We will also get more than 20,000 Development (DFID). The permanent secretary is also women enrolled in literacy programmes, build 3,840 regularly engaged in this work. new classrooms and literacy centres, with upgraded DFID has set up a Libya Crisis Unit headed by a facilities in a further 1,260 schools (e.g. girls lavatories deputy director (grade 5). She is supported by two and boundary walls). Our support will also help to deputy heads (grade A1), who lead teams covering (a) increase the number of girls attending school. Stabilisation and Transition Policy and (b) Humanitarian and Ministerial Engagement. Mr Douglas Alexander: To ask the Secretary of State for International Development how much aid his Mr Douglas Alexander: To ask the Secretary of State Department allocated to Khyber Pakhtunkhwa province, for International Development whether officials of his Pakistan in real terms in each financial year since 2001. Department involved in post-conflict planning in Libya [63020] 997W Written Answers4 JULY 2011 Written Answers 998W

Mr Andrew Mitchell: It is not possible to disaggregate for affordable homes for the following six years. Year 1 the total amount of aid allocated to any one province in (2011-12) allocations for English local authorities were Pakistan without incurring disproportionate cost. announced on 4 April and paid on 15 April. A full list The Department for International Development does of year 1 allocations has been placed in the Library of provide substantial support for programmes in Khyber the House. Pakhtunkhwa. This includes support to implement the Full details of the calculation for the bonus for each province’s Education Sector Plan, which will get more local authority can be found in the online calculator, than 600,000 boys and girls into primary school, and available at: more than 200,000 boys and girls into secondary school http://www.communities.gov.uk/housing/housingsupply/ by 2015. Our support for health services in Khyber newhomesbonus Pakhtunkhwa will see 110,000 more children fully immunised, and significantly improve family planning Aldermaston AWE: Fires services across the province by 2015. Yemen: Overseas Aid Jeremy Corbyn: To ask the Secretary of State for Communities and Local Government pursuant to the answer of 19 October 2010, Official Report, column Keith Vaz: To ask the Secretary of State for International 180W, on Aldermaston AWE: fires, what assessment he Development how much of the aid allocated by his has made of the information on the August 2010 fires Department to Yemen between February and June 2011 submitted to his Department; what recent discussions has been spent; and on what. [63102] he has had with the Ministry of Defence fire service on Mr Duncan: The Department for International emergency response co-ordination; and if he will make Development (DFID) spent £14.77 million on aid to it his policy to strengthen the formal links between Yemen between February and June 2011. Royal Berkshire fire and rescue service and the Ministry of Defence fire service. [63360] Of this, £9.88 million was spent on humanitarian assistance (a further £6.36 million of approved funds Robert Neill: The fire at Aldermaston AWE took are still to be disbursed); £3.23 million on improving place on 3 August 2010. The Ministry of Defence’s fire education; £1.21 million on strengthening the Yemeni and rescue service investigated the operational response state’s ability to deliver basic services, including policing to the incident and produced a report. This identified and justice, and management of the economy; £0.41 million areas where improvements could be made, including on improving access to basic services for poor and arrangements with the Royal Berkshire fire and rescue vulnerable Yemenis, and £0.04 million on Yemen policy service. This review has been completed and I understand research. the findings have been acted upon by the respective authorities. Officials in my Department liaise closely with the Ministry of Defence’s fire and rescue service COMMUNITIES AND LOCAL GOVERNMENT on a regular basis, and on a range of issues. Affordable Housing Anti-Semitism

Alison Seabeck: To ask the Secretary of State for Mr Amess: To ask the Secretary of State for Communities Communities and Local Government whether financial and Local Government pursuant to the answer of 21 receipts from the New Homes Bonus are required to be June 2011, Official Report, column 156W,on anti-Semitism, spent in the local area of the development to which for what reasons the UK Government uses the Macpherson they relate. [62913] definition of a racist incident; when the decision was Grant Shapps: The New Homes Bonus is not ring-fenced. taken to use this definition; who took the decision; The first £200 million was allocated to local authorities whether representatives of the Jewish community were in April and authorities will be looking at how best to consulted on the definition to be used; and if he will spend this funding to meet local needs. The priorities of make a statement. [63112] local communities and barriers to growth are different Andrew Stunell: Sir William Macpherson’s definition across the country and the Government will not dictate of a racist incident was developed during the Inquiry where the Bonus should be spent. into the murder of Stephen Lawrence, which reported However, local authorities and local councillors need in 1999. The Secretary of State for the Home Department’s to consider carefully how to respond to local wishes and Action Plan in that same year accepted the definition. ensure that the benefits of growth are transparent in the A cross Government hate crime programme was communities where growth takes place—for example, established by Mr Justice Fulford following on from the improving play areas, transport improvements or town Macpherson report. During 2007 the programme centre regeneration. established a universal definition of hate crime adopted Bridget Phillipson: To ask the Secretary of State for by all criminal justice agencies and Government Communities and Local Government how much Departments. This common definition built on the funding his Department has allocated to each local principles of the Macpherson definition and was developed with the oversight of the standing Independent Advisory authority for the new homes bonus scheme. [62967] Group, which includes representation from Jewish Grant Shapps: The new homes bonus will match fund Community groups. the additional council tax raised—using the national The full definition of ‘Monitored Hate Crime’ can be average in each band—for new homes and long-term viewed on the police owned website True Vision at: empty properties brought back into use, with a premium http://www.report-it.org.uk/hate_crime_data1 999W Written Answers4 JULY 2011 Written Answers 1000W

Mr Amess: To ask the Secretary of State for Communities Homelessness: Social Rented Housing and Local Government pursuant to the answer of 21 June 2011, Official Report, column 156W,on anti-Semitism, Alison Seabeck: To ask the Secretary of State for which agencies use the working definition of anti-Semitism Communities and Local Government (1) how many adopted by the EU Agency for Fundamental Rights; homeless households were offered accommodation by and if he will make a statement. [R] [63113] local authorities under Section 192(3) of the Housing Act 1996 in each of the last five years; [63335] Andrew Stunell: We do not keep central records on which agencies use the working definition. Criminal (2) what assistance his Department provides for justice agencies adopted the common definition of homeless households who are found to be intentionally ‘Monitored Hate Crime’ in 2007 and the Association of homeless and not in priority need; [63336] Chief Police Officers intend to include the working (3) what steps his Department has taken to encourage definition in the their Hate Crime Manual. local authorities to use their powers under Section The full definition of ‘Monitored Hate Crime’ can be 192(3) of the Housing Act 1996 to offer accommodation viewed on the police owned website, True Vision, at: to homeless households who are found to be not in priority need; and what assessment he has made of the http://www.report-it.org.uk/hate_crime_data1 cost to the public purse of health, education and policing services arising from local authorities not using such Departmental Official Visits powers. [63337]

Andrew Griffiths: To ask the Secretary of State for Grant Shapps: In 2009/2010, 100,800 households were Communities and Local Government pursuant to the assisted to obtain alternative accommodation through answer of 9 June 2011, Official Report, column 447W, Local Authorities’ prevention/relief activities under section on departmental official visits, and with reference to 192(3) of the Housing Act 1996. A further 64,400 paragraph 74 of the Third Report of the Procedure households were able to remain in their existing home. Committee, Session 2008-09, on Written Parliamentary Figures relating to local authorities’ prevention/relief Questions, HC 952, if he will disclose the information activities in 2009-10 were published last August at the requested on Ministerial visits that would have been following link: disclosed had a request for the information under the Freedom of Information Act 2000 been submitted to http://www.communities.gov.uk/publications/corporate/ statistics/homelessnessprevention200910 his Department. [61038] Figures prior to 2009-10 are not available on a Robert Neill: In this instance, the Department no comparable basis. longer holds the information requested. It is for local authorities to decide how best they use their powers to determine whether a homeless household EU Grants and Loans: West Midlands is found to be intentionally homeless and not in priority need. Mr Jim Cunningham: To ask the Secretary of State This Government takes homelessness very seriously for Communities and Local Government how much that is why we are maintaining investment in homelessness European regional development fund funding was grant at £100 million a year for each of the next four allocated to the West Midlands in each of the last five years to support local authorities and the voluntary years. [63548] sector in their work to tackle homelessness. This includes £10 million over the next two years for Crisis to help Robert Neill: European regional development fund is single people access and sustain private rented sector allocated in seven year blocks. For the 2000-06 fund accommodation. programme, ¤691 million was spent in the West Midlands In addition, I established a cross-Government Ministerial programme. For the 2007-13 Fund programme, ¤399.9 Working Group on Homelessness to address the complex million was allocated to the West Midlands programme. causes of homelessness and improve support for homeless people. Fire Services This Department has not taken any specific steps to encourage local authorities to use their powers under Chris Williamson: To ask the Secretary of State for Section 192(3) of the Housing Act 1996 to offer Communities and Local Government whether he is accommodation to homeless households who are found taking steps to provide support for fire and rescue to be not in priority need; and has not made any services for the cost of maintaining fire hydrants. assessment of the cost to the public purse of health, [63062] education and policing services arising from local authorities not using such powers. Robert Neill: Formula grant is an unhypothecated block grant. This means that authorities are free to King Edward’s Memorial Park spend it on any service provided they meet their statutory obligations. Spending decisions must be a matter for the Jim Fitzpatrick: To ask the Secretary of State for local authority, taking into account local priorities. Communities and Local Government if his Department In new developments the water authorities often add will issue a temporary measure under the green areas on the cost of hydrant provision to the developer for the designation initiative for King Edward’s Memorial Park site. in Shadwell. [62713] 1001W Written Answers4 JULY 2011 Written Answers 1002W

Robert Neill: The Natural Environment White Paper Heidi Alexander: To ask the Secretary of State for published on 7 June said we will consult later this year Communities and Local Government (1) what steps he on proposals for a new green areas designation for use plans to take to ensure that areas choosing a leader and in local and neighbourhood plans. executive governance model have access to similar powers and freedoms as areas choosing an elected Local Government Finance mayor; [62856] (2) what criteria he will use to determine whether an Margot James: To ask the Secretary of State for elected mayor outside the 12 largest cities in England Communities and Local Government whether he plans will be granted the powers and freedoms granted to to provide funding to local authorities for the purposes mayors of those cities; and if he will make a statement; of enabling a council tax freeze for the (a) 2012-13, [62858] (b) 2013-14 and (c) 2014-15 financial years. [61739] (3) with reference to the Localism Bill: creating executive Robert Neill: We have provided additional funding to mayors in the 12 largest English cities: impact assessment, local councils to freeze council tax for a year from April when his Department expects to complete its consideration 2011, saving a typical family up to £72 on a band D of the powers and freedoms to be granted to elected home. The funding for the one-year freeze will continue mayors; and when the second impact assessment on over the spending review period to prevent council tax shadow mayors will be published; [62859] from shooting up next year, keeping down council tax (4) what application process elected mayors outside and locking in that yearly saving for families over the the 12 largest English cities who wish to be granted period. additional powers and freedoms will be required to Thanks to this funding, households will benefit from follow; and if he will make a statement. [62869] lower council tax bills than would otherwise be the case in 2012-13, 2013-14 and 2014-15. Robert Neill: The Institute for Government and Centre for Cities’ report suggests mayors, particularly in our Mayors: Referendums major cities, should have greater powers to promote economic growth including over issues such as transport Heidi Alexander: To ask the Secretary of State for and strategic planning. We are looking to each of the Communities and Local Government (1) how long on major cities to tell us the type of powers they would average he expects a local authority to take to transfer expect their mayor to have, and in our Structural Reform from a leader and executive model to the shadow Plan we are committed to consult in September this mayor model under the provisions of the Localism Bill; year on mayoral powers. Our consideration of possible [62828] mayoral powers will include looking at their potential (2) for what period of time a shadow mayor will be impact on the areas concerned, and at whether any such required to be in post before a confirmatory power might appropriately be given to other elected referendum is held under provisions in the Localism mayors outside the major cities, having regard to the Bill; and if he will make a statement; [62855] circumstances of their local authority. (3) whether his Department has made an estimate of the likely average salary of a mayor who assumes chief Heidi Alexander: To ask the Secretary of State for executive functions within a local council; and if he will Communities and Local Government when his Department make a statement; [62857] expects to publish a draft recall mechanism for elected (4) what information will be made available to local mayors; and if he will make a statement. [62860] authorities on changing local governance arrangements in advance of their required move to the shadow mayor Robert Neill: The Government are committed to bringing model. [62868] forward legislation to introduce a power to recall Members of Parliament where they have engaged in serious Robert Neill: The committee considering the Localism wrongdoing. We are currently considering what would Bill in the other place has agreed amendments, supported be the fairest, most appropriate and robust procedure by the Government, which remove all provisions for and we intend to make a statement soon setting out our shadow mayors and mayoral management arrangements. plans to establish a recall mechanism. Heidi Alexander: To ask the Secretary of State for Once a recall system is introduced for Members of Communities and Local Government what assessment Parliament, we intend to consider possible recall his Department has made of the effects of adoption of mechanisms for other elected offices, including local the elected mayor model on levels of public (a) authority elected mayors. recognition, (b) satisfaction and (c) engagement in (i) Hartlepool, (ii) Middlesbrough, (iii) Bedford and (iv) Heidi Alexander: To ask the Secretary of State for Doncaster; and if he will make a statement. [62829] Communities and Local Government what meetings his Department has held with other Government Robert Neill: The Department’s research paper, ‘The departments to discuss the powers of elected mayors New Council Constitutions—The Outcomes and Impact under the provisions of the Localism Bill; and if he will of the Local Government Act 2000’, published in October make a statement. [62861] 2007, includes an assessment of the effects of the adoption of the elected mayor model on the levels of public Robert Neill: Ministers within the Department for recognition, satisfaction and engagement. Communities and Local Government regularly meet Numerous other non-governmental reports have also colleagues from other Government Departments to discuss been published on these matters. a range of matters. 1003W Written Answers4 JULY 2011 Written Answers 1004W

Mobile Homes Robert Neill: Ministers within the Department for Communities and Local Government regularly meet Annette Brooke: To ask the Secretary of State for colleagues from the Department for Health to discuss a Communities and Local Government what progress he range of matters. has made on his Department’s consultation on steps to protect park home owners. [63688] Barbara Keeley: To ask the Secretary of State for Communities and Local Government if he will discuss Grant Shapps: On 10 February 2011, I announced a with local authorities the allocation of additional proposal to consult on a range of measures to improve funding provided for social care. [63121] the licensing regime which applies to park home and Paul Burstow: I have been asked to reply. caravan sites so local authorities are better equipped and resourced to tackle problems of poor management Officials and Ministers from the Department of Health in the sector and so better protect the health and safety have regular discussions with local authorities and of residents. I also announced that I plan to consult on representatives from local government on the spending improvements to the buying and selling process of park review settlement for social care, and will continue to homes to prevent the unacceptable practice of the blocking do so. of lawful sales by unscrupulous site owners and to provide an effective means of redress for residents where this happens. In May, myself and officials met with key HOME DEPARTMENT industry and resident partners, and officials met separately with local authority partners and representatives of Departmental Buildings holiday caravan owners, to help inform the consultation and gain a better understanding of the expectations and Jesse Norman: To ask the Secretary of State for the aspirations of our partners in this sector of the housing Home Department what the address is of each office market. The Department plans to publish the consultation property occupied by her Department outside Greater shortly. London which it (a) owns and (b) rents; what the level of utilisation is of each such property; what the capital Non-Domestic Rates: Third Sector value is of each such property it owns; and what the (i) annual rental cost and (ii) length of lease agreement is Mr Jim Cunningham: To ask the Secretary of State of each rented property. [61179] for Communities and Local Government what plans he has for the future level of funding for local authorities Damian Green: The Department is taking steps to to provide (a) mandatory and (b) discretionary reduce the size of its office estate to meet its future business rate relief for (i) community amateur sports business needs and reduced staffing levels. Measures to clubs and (ii) charitable community organisations. deliver this include consolidation of accommodation [62981] across the Home Office group. Estate consolidations are under way in London, Croydon and Liverpool. In Robert Neill: Central Government fully funds mandatory Croydon for instance buildings totalling 26,000 square relief and part funds discretionary relief for Community metres were surrendered last December. Amateur Sports Clubs and charities. The Government Utilisation rates change regularly and are monitored support and value the role of mandatory and discretionary by estates managers directly as part of estate rationalisation rate relief. planning, rather than being centrally recorded. The disclosable details of the Department’s estate outside Quarrying: Kent Greater London taken from the estate database are provided in a table which has been placed in the House Mrs Grant: To ask the Secretary of State for Library. The table provides the name of the building or Communities and Local Government when he plans to function within its main town or nearest main town. make a decision on the proposed westerly extension to This may comprise some individually leased or multiple Hermitage Quarry, Aylesford, Kent, reference TM10/ spaces. 2029, in Maidstone and The Weald constituency. [63259] Departmental Carbon Emissions

Robert Neill: The Secretary of State for Communities Huw Irranca-Davies: To ask the Secretary of State and Local Government, the right hon. Member for for the Home Department whether her Department Brentwood and Ongar (Mr Pickles), is currently considering has any plans to generate low-carbon energy from its whether to call-in this planning application for his own estate. [63323] consideration or to leave the decision with Kent county council. He hopes to make his decision by the end of Damian Green: In the last financial year 45% of July. purchased electricity on the Home Office estate came from low or zero carbon renewable sources. We have no Social Services: Finance current plans to generate low carbon energy but, with our facilities managers, we are constantly reviewing the Barbara Keeley: To ask the Secretary of State for latest technologies against the potential of our assets to Communities and Local Government whether he has install such technologies. met the Secretary of State for Health to discuss implications We have already implemented a programme of measures for local authorities of the forthcoming Dilnot Commission to reduce CO2 emissions as part of the Prime Minister’s report. [62800] target to cut energy use by 10% across central Government 1005W Written Answers4 JULY 2011 Written Answers 1006W in 12 months, including introducing a payment by results Metropolitan Police: Manpower mechanism as an incentive for one of our facilities managers’ suppliers to deliver energy and carbon savings. Mr Dodds: To ask the Secretary of State for the Home Department how many civilian staff are Firearms: Licensing employed to assist the Metropolitan Police Service in the investigation of crimes. [63404]

Mr Ellwood: To ask the Secretary of State for the Nick Herbert: Figures are not collected to show the Home Department what consideration she has given to total number of police staff employed in this role. discussing changes of fees for firearm and shotgun Latest available data show the number of designated certificates with organisations representing firearms investigation officers (section 38) in post in the Metropolitan users and the gun trade. [63077] Police Service on 31 March 2010 was zero. Designated investigation officers are persons employed Nick Herbert: The Home Office has sought and by the police authority who have been chosen by chief received some information from the Association of officers to exercise specified powers which would otherwise Chief Police Officers (ACPO) on police costs in granting only be available to police officers. These and their and renewing certificates which has been discussed with designated police staff were introduced as part of the organisations representing firearms users and the gun Police Reform Act 2002. Sections 38 and 39 of the Act trade. Further information is being sought and when enables the appropriate designation of skilled police this has been received the data will be analysed and we staff to one or more of four roles: police community will hold discussions with all interested parties on the support officer, investigation officer, detention officer proposed new fee levels. and escort officer. Metropolitan Police Police: Accountability

Jeremy Corbyn: To ask the Secretary of State for the Vernon Coaker: To ask the Secretary of State for the Home Department (1) how many positions in the Home Department whether a police and crime Metropolitan Police Service are designated as police commissioner will be authorised to appoint a civilian to the position of chief constable from May 2012; and staff roles; [63192] if she will make a statement. [46798] (2) how many police staff roles in the Metropolitan Police Service are occupied by police officers. [63193] Nick Herbert: The Police Reform and Social Responsibility Bill currently restricts eligibility for Nick Herbert: The requested information is not collected appointment to the position of chief constable to persons centrally in this form. Latest available figures published already holding the office of constable. The Government by the Home Office show that there were 32,900 police have brought forward amendments to the Bill for officers, 14,047 police staff and 4,387 police community consideration by the House of Lords at Report Stage in support officers employed by the Metropolitan Police that House. These amendments would extend the eligibility Service on 30 September 2010. criteria by allowing a person who has previously held These figures are on a full-time equivalent basis and the office of constable to be appointed. This would exclude designated officers (section 38) and traffic wardens. mean, for example, that a retired chief constable would be eligible. A person who has not previously been a member of a police force (and therefore not held the Metropolitan Police: Disability office of constable) will continue to be ineligible.

Jeremy Corbyn: To ask the Secretary of State for the Home Department how many police officers in the Metropolitan Police Service are (a) disabled and (b) CABINET OFFICE placed on restricted duties. [63194] Cancer

Nick Herbert: Of the police officers in post in the Tim Farron: To ask the Minister for the Cabinet Metropolitan Police Service on 31 March 2010, 184 were Office what the incidence of cancer was in each (a) designated as disabled and 1,122 were placed on restricted constituency, (b) primary care trust area, (c) hospital duties. trust area, (d) region and (e) social demographic group Disability is self-declared following the definition in the most recent period for which figures are available. used in the Disability Discrimination Act 1995. This [63353] figure quoted is a full-time equivalent figure that has been rounded to the nearest whole number. Mr Hurd: The information requested falls within the Restricted duties are duties or conditions approved, responsibility of the UK Statistics Authority. I have other than for recuperative purposes, for fixed periods asked the authority to reply. totalling more than 28 consecutive days (including rest Letter from Stephen Penneck, dated June 2011: days) for any officer who is unable for a specific reason As Director General for the Office for National Statistics, I to carry out one or more aspects of full operational have been asked to reply to your Parliamentary Question asking duty. This figure quoted is a headcount figure. what the incidence of cancer was in each (a) constituency, (b) primary care trust area, (c) hospital trust area, (d) region and (e) Data are unverified and provided on a provisional social demographic group in the most recent period for which basis only. figures are available. [63353] 1007W Written Answers4 JULY 2011 Written Answers 1008W

The latest available figures for newly diagnosed cases of cancer Table 3. Registrations of newly diagnosed cases of cancer, persons, regions of (incidence) are for the year 2008. Please note that these numbers England, 20081, 2, 3 may not be the same as the number of people diagnosed with Region Cancer registrations cancer, because one person may be diagnosed with more than one cancer. South West 29,468 1 Cancer incidence is defined using International Classification of Diseases, The tables provide the number of newly diagnosed cases of Tenth Revision (ICD-10) codes C00-C97 excluding code C44, non-melanoma cancer in each parliamentary constituency (Table 1), primary care skin cancer organisation (Table 2) and region in England for the year 2008. 2 Based on boundaries as of 2011. 3 Newly diagnosed cases registered in 2008. Copies of Tables 1 and 2 have been placed in the House of Commons library. Table 3 is included in this answer. ONS does not publish figures on cancer incidence by hospital Charity Commission: Manpower trust area or social demographic group. NHS hospital trusts are commissioned by primary care organisations to provide health Mrs Ellman: To ask the Minister for the Cabinet services. Whilst primary care organisations have geographical Office what the level of staff turnover was in the boundaries, hospital trusts do not. Information on cancer incidence by social demographic group is not available, as this information Charity Commission office in (a) London and (b) is not routinely recorded on individual cancer registrations. Liverpool in each of the last 10 years. [63839] The latest published figures on the incidence of cancer in England are available on the National Statistics website at: Mr Hurd: The information requested falls within the www.statistics.gov.uk/downloads/theme_health/mb1-39/mb1- responsibility of the Charity Commission for England no39-2008.pdf and Wales. I have asked the Commission to reply. Table 3. Registrations of newly diagnosed cases of cancer, persons, regions of Letter from Sam Younger, dated 4 July 2011: England, 20081, 2, 3 As the Chief Executive of the Charity Commission, I have Region Cancer registrations been asked to respond to your written Parliamentary Question on what the level of staff turnover was in the Charity Commission North East 13,748 office in (a) London and (b) Liverpool in each of the last 10 years. North West 37,022 [63839] Yorkshire and the Humber 26,632 The figures are shown in the table below. East Midlands 23,681 The Charity Commission has not made anyone compulsorily West Midlands 26,798 redundant in the last 10 years. A number of people have left East of England 29,270 voluntarily via exit schemes under the terms of the Civil Service London 27,471 Compensation Scheme. These are shown in the right-hand column South East 40,719 and are a subset of the voluntary leavers.

Staff in post at start All leavers % turnover Voluntary compensated exits % turnover

2001/02 Liverpool 230 27 12 0 0 London 175 48 27 0 0

2002/03 Liverpool 228 22 10 0 0 London 171 31 18 0 0

2003/04 Liverpool 248 36 15 0 0 London 170 35 21 0 0

2004/05 Liverpool 225 25 11 0 0 London 169 37 22 0 0

2005/06 Liverpool 224 29 13 0 0 London 160 32 20 1 1

2006/07 Liverpool 206 35 17 10 5 London 145 39 27 4 3

2007/08 Liverpool 196 18 9 1 1 London 134 26 19 7 5

2008/09 Liverpool 197 16 8 1 1 London 127 35 28 12 9

2009/10 Liverpool 224 13 6 0 0 London 116 22 19 1 1 1009W Written Answers4 JULY 2011 Written Answers 1010W

Staff in post at start All leavers % turnover Voluntary compensated exits % turnover

2010/11 Liverpool 224 23 10 0 0 London 116 20 17 1 1

I hope this information is helpful. contributed to the Principal Civil Service Pension Scheme in respect of (a) 2009-10 and (b) 2010-11. [62597] Civil Servants: Pensions Mr Maude: The employer contributions received by Steve Baker: To ask the Minister for the Cabinet the Principal Civil Service Pension Scheme are in the Office how much each Government Department following table.

£ Name 2009-10 2010-11

HM Revenue and Customs 362,997,727.09 321,693,053.28 Ministry of Defence 313,395,072.01 316,193,342.69 Jobcentre Plus 286,934,847.85 289,702,842.28 Prison Service 248,699,605.89 248,121,544.61 Metropolitan Police (Civilian Staff) 113,786,972.71 116,267,435.98 Home Office 111,875,807.75 142,385,375.91 Department for Work and Pensions 69,094,668.63 71,348,233.14 Ministry of Justice 67,011,085.67 68,821,199.18 Crown Prosecution Service 55,615,387.16 55,801,400.75 Scottish Government 46,339,660.40 46,824,546.37 Disability and Carers Service 46,244,670.73 49,693,874.87 Foreign and Commonwealth Office 41,440,270.46 41,103,285.87 Greater London Magistrates Courts Authority 41,303,009.11 39,595,119.18 Welsh Assembly Government 35,518,651.39 34,970,326.14 Government Communications HQ 35,121,088.29 35,784,428.60 Child Maintenance and Enforcement Commission 32,337,485.91 31,474,388.09 Land Registry 30,662,996.56 28,015,906.27 Health and Safety Executive 26,617,427.77 27,258,108.23 Other (employers who contributed less than £25 million) 854,331,663.37 828,134,887.64 Total 2,819,328,098.75 2,793,189,299.08

Departmental Carbon Emissions An alternative source of information for JSA claimants for local areas is the Annual Population Survey (APS), however this source does not have sufficient sample to provide estimates for Huw Irranca-Davies: To ask the Minister for the working claimants in parliamentary constituencies. Cabinet Office whether his Department has any plans to generate low-carbon energy from its estate. [63255] Ministerial Policy Advisers: Internet

Mr Maude: The Cabinet Office currently has no Dr Huppert: To ask the Minister for the Cabinet Office plans to generate low-carbon energy from its estate. whether his Department provides guidance to special advisers on the use of Twitter and other social media for Jobseeker’s Allowance: Bexley the purposes of engaging in debate on matters of national controversy related to matters for which their Minister Mr Evennett: To ask the Minister for the Cabinet (a) has and (b) does not have responsibility. [63689] Office how many people in Bexleyheath and Crayford constituency who work less than 16 hours a week are Mr Maude: Standards of conduct set out in the Code receiving jobseeker’s allowance. [63531] of Conduct for Special Advisers, the Civil Service Code and the Civil Service Management Code apply to all Mr Hurd: The information requested falls within the forms of official communication. responsibility of the UK Statistics Authority. I have Copies are available in the Library of the House and asked the authority to reply. can be accessed on the Cabinet Office website at: Letter from Stephen Penneck, dated July 2011: http://www.cabinetoffice.gov.uk/sites/default/files/resources/ As Director General for the Office for National Statistics, I special-advisers-code-of-conduct.pdf have been asked to reply to your Parliamentary Question asking and the civil service website at: how many people in Bexleyheath and Crayford constituency who work less than 16 hours a week are receiving jobseeker’s allowance. www.civilservice.gov.uk (063531) Unemployment: Graduates The Office for National Statistics (ONS) compiles statistics on claimants of Jobseeker’s Allowance (JSA) from Jobcentre Plus administrative data, however this source does not provide information Mr Laurence Robertson: To ask the Minister for the on the employment status of claimants. Cabinet Office what proportion of graduates registered 1011W Written Answers4 JULY 2011 Written Answers 1012W as unemployed in the first year after graduation These figures have been drawn from administrative remained unemployed for (a) six, (b) 12, (c) 18 and IT systems, which, as with any large scale recording (d) 24 months in the latest period for which figures are system, are subject to possible errors with data entry available; and if he will make a statement. [63375] and processing. Average length of unpaid work requirements started in 2010, by probation area Mr Hurd: The information requested falls within the and order type responsibility of the UK Statistics Authority. I have Hours asked the authority to reply. Suspended sentence Letter from Stephen Penneck, dated June 2011: Area Community order order As Director General for the Office for National Statistics, I Avon and Somerset 89.7 131.5 have been asked to reply to your Parliamentary Question asking Bedfordshire 110.3 150.6 what proportion of graduates registered as unemployed in the Cambridgeshire 94.3 132.1 first year after graduation remained unemployed for (a) six, (b) Cheshire 106.1 156.8 12, (c) 18 and (d) 24 months in the latest period for which figures Teesside 96.1 138.1 are available. 63375 Cumbria 93.1 137.3 The Office for National Statistics (ONS) compiles unemployment Derbyshire 90.0 123.0 statistics from the Labour Force Survey (LFS) following International Devon and Cornwall 111.5 140.9 Labour Organisation (ILO) definitions. However, estimates of the proportion of graduates registered as unemployed in the first year Dorset 98.3 134.1 after graduation and remaining unemployed are not available Durham 99.1 130.3 from the LFS. Essex 89.4 129.9 Gloucestershire 86.2 131.7 Unemployment: Young People Hampshire 101.8 137.1 West Mercia 118.0 155.0 Chris Ruane: To ask the Minister for the Cabinet Hertfordshire 95.3 128.2 Office how many young adults were unemployed for Humberside 104.2 143.3 over 12 months in each parliamentary constituency in Kent 107.8 148.2 each of the last 18 months. [63691] Lancashire 92.3 127.5 Leicestershire 97.5 117.6 Mr Hurd: The information requested falls within the Lincolnshire 87.4 129.9 responsibility of the UK Statistics Authority. I have Greater Manchester 118.5 149.4 asked the authority to reply. Merseyside 111.5 158.2 Letter from Stephen Penneck, dated July 2011: Norfolk 98.6 127.0 As Director General for the Office for National Statistics, I Northamptonshire 97.9 132.4 have been asked to reply to your Parliamentary Question asking Northumbria 90.1 127.5 how many young adults were unemployed for over 12 months in Nottinghamshire 97.1 129.0 each parliamentary constituency in each of the last 18 months. Thames Valley 126.2 153.3 (063691) Staffordshire 94.0 142.5 The Office for National Statistics compiles unemployment Suffolk 86.4 124.7 statistics for local areas from the Annual Population Survey Surrey 87.1 130.4 following International Labour Organisation definitions; however West Sussex 104.8 145.8 estimates for young adults for this geography and duration are not available. As an alternative, counts based on claimants of Jobseeker’s Warwickshire 81.2 116.8 Allowance (JSA) have been provided from administrative data. West Midlands 116.2 142.8 Table 1 shows the number of people aged 16 to 24 years who Wiltshire 86.7 119.9 have been claiming JSA for more than 12 months within each North Yorkshire 97.2 139.1 parliamentary constituency in each of the last 18 months. As the South Yorkshire 95.0 134.3 information requested is quite extensive, a copy has been placed West Yorkshire 117.1 152.3 in the House of Commons Library. Dyfed-Powys 98.5 136.6 National and local area estimates for many labour market Gwent 105.9 147.0 statistics, including employment, unemployment and JSA count North Wales 109.7 164.4 are available on the Nomis website at: South Wales 106.6 146.3 http://www.nomisweb.co.uk London 115.0 144.8

England and Wales 104.4 140.8 JUSTICE Community Orders Chris Ruane: To ask the Secretary of State for Justice Chris Ruane: To ask the Secretary of State for Justice how many and what proportion of offenders were what the average number of hours of community service given community service orders in each probation required by each order was in each probation service service area in each of the last three years. [63402] area in the latest period for which figures are available. [63365] Mr Blunt: The tables show the number of offenders Mr Blunt: The following table shows the average starting community and suspended sentence orders with length of unpaid work requirements started by offenders unpaid work requirements attached (and the proportions in each probation area for the year 2010 (latest available). of total orders) for the years 2008 to 2010 (latest available). Unpaid work is the current term for what was previously Unpaid work is the current term for what was previously known as community service. known as community service. 1013W Written Answers4 JULY 2011 Written Answers 1014W

These figures have been drawn from administrative IT systems, which, as with any large scale recording system, are subject to possible errors with data entry and processing.

Offenders starting community orders and suspended sentence orders with unpaid work attached in each of the last three years in each probation area, with proportion of all orders started 2008 Community orders with Percentage of all Suspended sentence Percentage of all suspended unpaid work community orders orders with unpaid work sentence orders

Avon and Somerset 1,397 51 384 46 Bedfordshire 728 63 181 52 Cambridgeshire 942 61 364 51 Cheshire 1,336 58 319 41 Teesside 948 43 268 35 Cumbria 885 63 213 57 Derbyshire 1,189 52 474 45 Devon and Cornwall 1,199 58 364 47 Dorset 574 50 202 41 Durham 752 44 259 41 Essex 1,948 58 490 42 Gloucestershire 452 40 150 41 Hampshire 2,238 56 629 47 West Mercia 1,120 53 372 50 Hertfordshire 1,027 50 267 43 Humberside 1,185 56 454 46 Kent 1,977 66 620 51 Lancashire 1,693 40 553 35 Leicestershire 1,132 54 428 44 Lincolnshire 568 46 175 36 Greater Manchester 4,408 59 1,479 46 Merseyside 1,993 48 642 43 Norfolk 971 67 368 55 Northamptonshire 639 47 182 38 Northumbria 1,740 41 481 35 Nottinghamshire 1,427 48 409 41 Thames Valley 2,031 59 681 50 Staffordshire 993 46 369 40 Suffolk 714 62 235 48 Surrey 877 59 241 49 Sussex 1,586 60 537 52 Warwickshire 533 53 128 49 West Midlands 3,487 49 1,333 40 Wiltshire 614 59 144 51 North Yorkshire 908 60 229 46 South Yorkshire 1,936 53 670 46 West Yorkshire 3,361 50 656 50 Dyfed-Powys 413 48 197 51 Gwent 715 51 237 46 North Wales 928 55 248 40 South Wales 1,971 54 733 45 London 9,245 59 3,220 49

England and Wales 64,780 54 20,585 45

2009 Community orders with Percentage of all Suspended sentence Percentage of all unpaid work community orders orders with unpaid work suspended sentence orders

Avon and Somerset 1,561 53 407 42 Bedfordshire 790 66 199 56 Cambridgeshire 1,022 67 433 60 Cheshire 1,313 56 302 42 Teesside 828 36 256 33 Cumbria 724 59 194 53 Derbyshire 1,303 57 502 54 Devon and Cornwall 1,271 58 429 48 1015W Written Answers4 JULY 2011 Written Answers 1016W

2009 Community orders with Percentage of all Suspended sentence Percentage of all unpaid work community orders orders with unpaid work suspended sentence orders

Dorset 564 48 183 40 Durham 494 30 165 26 Essex 2,164 62 662 48 Gloucestershire 423 39 120 38 Hampshire 2,002 51 453 42 West Mercia 1,295 57 479 56 Hertfordshire 961 48 294 42 Humberside 1,210 55 433 44 Kent 2,191 69 650 56 Lancashire 1,724 41 527 35 Leicestershire 991 53 409 42 Lincolnshire 625 53 228 49 Greater Manchester 4,425 58 1,471 48 Merseyside 2,125 53 676 47 Norfolk 996 68 334 53 Northamptonshire 763 60 244 48 Northumbria 1,591 38 584 37 Nottinghamshire 1,552 51 480 48 Thames Valley 1,908 61 697 55 Staffordshire 1,010 48 400 45 Suffolk 737 59 240 48 Surrey 1,022 61 255 51 Sussex 1,538 55 486 50 Warwickshire 641 58 155 52 West Midlands 3,987 53 1,731 46 Wiltshire 599 56 114 49 North Yorkshire 1,040 62 265 54 South Yorkshire 2,168 57 717 50 West Yorkshire 3,718 53 793 50 Dyfed-Powys 475 50 153 46 Gwent 717 51 286 52 North Wales 1,012 58 322 46 South Wales 1,953 52 787 50 London 9,613 61 3,884 53

England and Wales 67,046 55 22,399 48

2010 Community orders with Percentage of all Suspended sentence orders Percentage of all suspended unpaid work community orders with unpaid work sentence orders

Avon and Somerset 1,575 54 485 47 Bedfordshire 712 65 260 59 Cambridgeshire 1,064 68 413 57 Cheshire 1,242 57 339 44 Teesside 719 33 232 31 Cumbria 690 57 171 48 Derbyshire 1,140 55 515 53 Devon and Cornwall 1,099 52 426 54 Dorset 507 48 201 44 Durham 593 35 229 34 Essex 2,045 62 691 51 Gloucestershire 377 40 133 41 Hampshire 1,950 48 592 44 West Mercia 1,086 53 380 52 Hertfordshire 958 47 347 44 Humberside 1,191 53 472 46 Kent 1,995 66 632 53 Lancashire 1,682 41 654 38 Leicestershire 1,089 57 430 48 Lincolnshire 629 52 201 45 Greater Manchester 4,467 56 1,551 50 Merseyside 1,853 54 775 48 1017W Written Answers4 JULY 2011 Written Answers 1018W

2010 Community orders with Percentage of all Suspended sentence orders Percentage of all suspended unpaid work community orders with unpaid work sentence orders

Norfolk 1,043 70 373 55 Northamptonshire 800 59 278 49 Northumbria 1,571 39 515 37 Nottinghamshire 1,611 53 549 48 Thames Valley 1,998 62 772 58 Staffordshire 1,124 50 466 55 Suffolk 588 54 236 49 Surrey 806 58 252 56 Sussex 1,546 55 517 53 Warwickshire 566 58 155 52 West Midlands 3,555 54 1,776 50 Wiltshire 529 52 121 48 North Yorkshire 951 60 230 52 South Yorkshire 2,083 57 737 52 West Yorkshire 3,618 53 1,126 59 Dyfed-Powys 437 51 149 48 Gwent 753 57 308 56 North Wales 958 54 356 53 South Wales 1,999 53 948 52 London 9,465 62 4,164 57

England and Wales 64,664 54 24,157 50

Chris Ruane: To ask the Secretary of State for Justice The Ministry of Justice also has plans to generate low what the budget was for the administration of carbon energy from its estate for on site consumption. community service orders in each probation service HM Courts and Tribunals Service are piloting photovoltaics area in each of the last four years; and what he expects at two sites: Leeds Combined Court Centre and those budgets to be in each of the next four years. Aberystwyth Law Courts. [63435] The National Archives at Kew recently installed a CHP (combined heat and power) plant to generate low Mr Blunt: The National Offender Management Service carbon electricity on-site. (NOMS) has not previously collected such historic information and to do so now would involve surveying Departmental Official Cars every trust; the cost of doing this would be disproportionate. NOMS is developing systems to break down current Stephen Williams: To ask the Secretary of State for expenditure on a service by service basis. Once the Justice what the cost to his Department and its information has been reviewed and validated we will predecessors was of the provision of ministerial cars in then consider how best to use it to meet commitments each financial year between 2000-01 and 2010-11; how under the Government’s transparency agenda. many (a) cars for the exclusive use of Ministers and The future funding for the provision of community (b) ministerial car journeys were paid for by his payback is currently subject to competition, thus future Department in each such year; what the average cost to budgets will be dependent on negotiated contract bid his Department of a ministerial car journey was in each prices, which are yet to be determined. such year; and what steps his Department has taken to reduce the cost of ministerial cars since his appointment. [62988] Departmental Carbon Emissions Mr Kenneth Clarke: The Ministry of Justice (MOJ) was established on 9 May 2007, its predecessor was the Huw Irranca-Davies: To ask the Secretary of State Department for Constitutional Affairs (DCA). for Justice whether his Department has any plans to Information on the number and cost of ministerial generate low-carbon energy from its estate. [63324] cars is published in the Secretary of State for Transport’s annual written ministerial statement, details of which Mr Kenneth Clarke: The Ministry of Justice has can be found within the Libraries of both Houses using plans to generate low carbon energy from its estate the links provided at the end of this answer. The requested which we can export to the grid. In association with data for the Department are shown in the following Partnerships for Renewables the National Offender table: Management Service’s planning application for wind energy generation at Standford Hill on the Isle of Sheppey, Number was approved in May 2011. Partnerships for Renewables Department Year of cars Cost (£) will discharge the planning conditions for this project MOJ 2009-10 4 320,429.90 during 2011-12 with site preparation and construction MOJ 2008-09 5 310,600.00 scheduled for early 2013. 1019W Written Answers4 JULY 2011 Written Answers 1020W

Mr Blunt: Details of the organisations which were Number Department Year of cars Cost (£) successful in bidding for funding from the 2011-12 Homicide Fund were published on the Ministry of MOJ 2007-08 4 307,900.00 Justice website on 30 June. DCA 2006-07 5 339,000.00 DCA 2005-06 5 293,400.00 Legal Aid Details of the costs for 2010-11 are being compiled Mr Mark Field: To ask the Secretary of State for and due for release in July 2011. Information prior to Justice how much was paid in legal aid to Jeffrey 2005 is not available and could be obtained only at Samuels QC in (a) 2007-08, (b) 2008-09 and (c) disproportionate cost. 2009-10. [63248] Information relating to individual ministerial car journeys prior to September 2010 is not available as there was no Mr Djanogly: The information requested is not readily requirement to collect these data. available. We are compiling the information and will write to the hon. Member. A copy of the letter will be In September 2010, in order to make savings, the placed in the House of Commons Library. MOJ transferred from allocated ministerial cars to a system of on-demand bookings for individual car journeys. Mr Slaughter: To ask the Secretary of State for The vast majority of these journeys are home-to-work Justice if he will place in the Library a copy of the and work-to-home journeys, where Ministers of State response to his consultation on Reform of Legal Aid and Parliamentary Under-Secretaries of State are able to from (a) the Armed Forces Criminal Legal Aid Authority, work on restricted papers from their ministerial red boxes. (b) the National Audit Office, (c) the NHS Litigation Ministers are otherwise encouraged to walk or take Authority, (d) the Social Entitlement Chamber of the public transport during the working day. First Tier Tribunals and (e) each other Government Information relating to the number of ministerial car Department. [63269] journeys made since the introduction of the ‘on-demand’ ministerial car service on 6 September 2010 and up until Mr Djanogly: The items requested at (a) to (d) will 31 March 2011 is included in the following table: shortly be placed in the Library. No formal responses from other Government Departments were received. Period Jobs Legal Aid: Iraq 2010 Mr Spellar: To ask the Secretary of State for Justice September 78 pursuant to the answer of 21 June 2011, Official October 103 Report, column 179W, on legal aid: Iraq, in respect of November 126 how many cases relating to alleged abuse of Iraqi December 75 citizens by UK armed forces legal aid is being provided to persons not resident in the UK. [62969] 2011 January 91 Mr Djanogly: As I stated in my answer of 21 June February 90 2011, Official Report, column 179W, the Legal Services March 120 Commission (LSC) does not specifically record cases Total: 683 under the category of ‘abuse by the UK armed forces’. In addition, the LSC cannot provide information on the Links to DFT written ministerial statements: number of legal aid applicants non-resident in the UK without incurring disproportionate cost. 2005/06: http://www.publications.parliament.uk/pa/cm200607/ Missing Persons: Death cmhansrd/cm070726/wmstext/70726m0004.htm 2006/07: Jonathan Evans: To ask the Secretary of State for Justice if he will bring forward proposals to align the http://www.publications.parliament.uk/pa/cm200607/ law of England and Wales with that of Scotland and cmhansrd/cm070726/wmstext/70726m0004.htm Northern Ireland in regard to presumption of death 2007/08: where a person has been missing for a significant period http://www.publications.parliament.uk/pa/cm200708/ of time. [62804] cmhansrd/cm080722/wmstext/80722m0008.htm 2008/09: Mr Djanogly: At this time Government have no plans http://www.publications.parliament.uk/pa/cm200809/ to make changes in this area. However, the All Party cmhansrd/cm090716/wmstext/90716m0009.htm Parliamentary Group on Runaway and Missing Adults 2009/10: and Children is currently carrying out research in this area. We will carefully consider any recommendations http://www.dft.gov.uk/press/speechesstatements/statements/ hammond20101028a.html that they may make as a result of their work. Offenders: Employment Homicide: Finance John McDonnell: To ask the Secretary of State for Mr Hepburn: To ask the Secretary of State for Justice Justice what assistance the National Offender Management when he expects to announce the organisations which Service has provided to probation trusts in respect of have been successful in bidding for funding from the bidding for unpaid work during the tendering process. 2011-12 Homicide Fund. [62863] [63059] 1021W Written Answers4 JULY 2011 Written Answers 1022W

Mr Blunt: NOMS has encouraged probation trusts to Substantive answer from Crispin Blunt to Helen Jones: seek NOMS/MOJ advice on the contractual models The Ministry of Justice is currently developing the Offender that they are developing. In addition, NOMS/MOJ will Services Competition Strategy in line with commitments in the work with probation trusts to provide feedback and ‘Breaking the Cycle’ Green Paper and the Ministry of Justice further advice to those probation trusts that have been business plan. The strategy will set out how competition will be accepted as ‘prime’ bidders for lots 2-6. This advice and used within Offender Services and outline a timetable for competition information is outside of the formal bidding process, in this period. The strategy will be published later this year. and care is taken to ensure that an ‘ethical wall’ is in place in order to ensure a fair approach for all bidders. Prisoners’ Release

Offenders: Rehabilitation John McDonnell: To ask the Secretary of State for Justice what assessment he has made of the effectiveness Priti Patel: To ask the Secretary of State for Justice of the payment by results pilots in reducing the demand which (a) third sector organisations, (b) charities, (c) for his Department’s services. [63058] private companies and (d) other organisations are working in prisons to support prisoner rehabilitation; Mr Blunt: The Ministry of Justice set out plans to and how many prisoners are so supported. [62548] design and commission at least six payment by results pilots in the December 2010 Green Paper ‘Breaking the Mr Blunt: Management information held centrally Cycle’. indicates that there are at least 245 voluntary and The first payment by results pilot was launched in community sector organisations, social enterprises and September 2010, the Social Impact Bond at HMP charities which support the rehabilitation of offenders Peterborough. Other pilots have been agreed and will in prisons, and 79 private sector organisations supporting commence shortly. This includes pilot local approaches rehabilitation activities in prison. to reduce demand for criminal justice services in London The National Offender Management Service does and Manchester and a pilot at HMP Doncaster that not collect any other data on “other organisations” will aim to reduce the reoffending of released offenders. involved with supporting prisoner rehabilitation activities. The formal start date of these pilots is due to be July In addition there will be other types of support 2011 and October 2011 respectively. provided to offenders, the details of which are not As sufficient offenders have not yet passed through collated centrally and so any comprehensive lists of the scheme, it is too early to assess of the effectiveness organisations and statistical information on the numbers of the Social Impact Bond in reducing demand for of prisoners undertaking interventions in support of offender services. A report by RAND Europe on the set their rehabilitation could be obtained only at up of the HMP Peterborough pilot was published last disproportionate cost. month and an interim report on the first cohort of offenders through the pilot is expected in 2014. Open Prisons: Crime Prisoners: Literacy Philip Davies: To ask the Secretary of State for Justice how many offences were committed by Oliver Heald: To ask the Secretary of State for offenders serving a prison sentence in an open prison in Justice if he will commission research into the reading the latest period for which figures are available; what ability of prisoners; and if he will make a statement. the offence was in each case; and in which open prison [63122] each such offender was serving. [62917] Mr Blunt: There are no current plans to commission Mr Blunt: There are approximately 3,700 incidents research into the reading ability of prisoners. reported annually in open prisons and prisons with an However, in 2010 the Department for Business, open element. These are reported on the HM Prison Innovation and Skills, working closely together with the Service Incident Reporting System. However not all of Ministry of Justice, did commission a scoping study to these relate to a criminal offence, some relate to breaches explore the feasibility of undertaking a survey of prisoners of prison discipline while other types of incident include and offenders in the community to examine their literacy those connected with security or self-harm. and numeracy levels. The study concluded that while it In order to provide data relating to the number of would be possible to measure the skills levels of adult criminal offences committed by offenders serving a custody and community offenders as well as young sentence in an open prison it would be necessary to offenders in custody, robustly sampling young offenders manually examine each of these 3,700 records which in the community would be difficult. could be done only at disproportionate cost. Neither the Department for Business, Innovation and Skills nor the Ministry of Justice currently have funding Prison Service: Contracts set aside to undertake a basic skills survey of offenders in the current financial year. However, this work will be Helen Jones: To ask the Secretary of State for Justice considered against other policy priorities in future research- which prisons his Department is considering for planning rounds. market testing; and if he will make a statement. [63036] Oliver Heald: To ask the Secretary of State for Mr Blunt: I will provide the hon. Member with a Justice if he will take steps to improve the literacy levels reply as soon as possible. of prisoners. [63123] 1023W Written Answers4 JULY 2011 Written Answers 1024W

Mr Blunt: The MOJ and BIS recently published sector prison industries in over 400 workshops, representing “Making Prisons Work: Skills for Rehabilitation” on 18 a wide range of activities including printing, furniture, May, setting out our reform programme for offender textile manufacturing, laundries, engineering, contract learning. Although our intention is to focus an intensive services and land based activities. suite of vocational learning on the period in the run-up Prisons also partly run on prison labour. These activities to release, we have committed to continuing to meet the include about 4,400 prisoners working in catering and literacy and numeracy needs of prisoners at the start of picking and packing services. In addition significant their sentences. numbers of prisoners are involved in areas such as These functional skills are important in enabling cleaning but, as these jobs are local to each prison, prisoners to address other needs that might otherwise numbers are not collated centrally. prevent them beginning work or training. We are evaluating intensive literacy and numeracy provision and, subject Sentencing: Drugs to the outcome of that, plan to extend its use as a means of addressing the needs of those with shorter sentences. Karen Lumley: To ask the Secretary of State for Prisons: Employment Justice how many people received a custodial sentence for drugs offences in (a) Worcestershire and (b) Oliver Heald: To ask the Secretary of State for Redditch in each of the last five years. [63243] Justice what recent estimate he has made of the number of prisoners which undertake meaningful work; and in Mr Blunt: Persons sentenced to immediate custody what types of jobs. [63124] for all drug offences in selected Local Justice Areas, 2006 to 2010, can be viewed in the table. Please note Mr Blunt: Our latest estimate is that about 9,000 that local justice areas may include more than one prisoners per day currently work in NOMS public magistrates court.

Number of persons sentenced to immediate custody for all drugs offences, in selected local justice areas1, 2006-102, 3 Local justice area and Crown court 2006 2007 2008 20094 2010

South Worcester LJA 45222 BromsgroveandRedditchLJA15315 KidderminsterLJA 5221— Worcester Crown court 59 48 95 81 68 1 May include more than one magistrates court. 2 The figures given in the table on court proceedings relate to persons for whom these offences were the principal offences for which they were dealt with.Whena defendant has been found guilty of two or more offences it is the offence for which the heaviest penalty is imposed. Where the same disposal is imposed fortwoor more offences, the offence selected is the offence for which the statutory maximum penalty is the most severe. 3 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted from large administrative data systems generated by the courts and police forces. As a consequence, care should be taken to ensure data collection processes and their inevitable limitations are taken into account when those data are used. 4 Revisions have been made to 2009 figures to account for the late receipt of a small number of court records. Source: Justice Statistics Analytical Services—Ministry of Justice.

Oliver Heald: To ask the Secretary of State for 2007 Justice how many people received (a) immediate custodial sentences and (b) other disposals in respect Offence and police Immediate Other of drugs supply offences in Hertfordshire in each of the force area Sentenced custody sentences last five years. [63341] Hertfordshire

Supply 61 30 31 Possession with 79 29 50 Mr Blunt: Persons sentenced to immediate custody intent to supply and other sentences for supply and possession with intent to supply a controlled drug in Hertfordshire police force area, 2006 to 2010, can be viewed in the tables. England and Wales Persons sentenced to immediate custody and other sentences for supply and Supply 3,496 2,215 1,281 possession with intent to supply a controlled drug, in Hertfordshire police force area, 2006-101,2,3 Possession with 5,514 3,168 2,346 intent to supply 2006 Offence and police Immediate Other force area Sentenced custody sentences 2008 Offence and police Immediate Other Hertfordshire force area Sentenced custody sentences Supply 83 37 46 Hertfordshire Possession with 66 41 25 intent to supply Supply 76 42 34 Possession with 102 53 49 intent to supply England and Wales Supply 3,639 2,366 1,273 England and Wales Possession with 5,044 3,031 2,013 intent to supply Supply 3,950 2,538 1,412 1025W Written Answers4 JULY 2011 Written Answers 1026W

Balkans 2008 Offence and police Immediate Other force area Sentenced custody sentences Mr Dodds: To ask the Secretary of State for Foreign and Commonwealth Affairs how many staff of his Possession with 6,421 3,693 2,728 intent to supply Department are working in (a) Kosovo and (b) the western Balkans. [63542]

20094 Mr Lidington: The following table gives the approximate Offence and police Immediate force area Sentenced custody Other sentences number of Foreign and Commonwealth Office employees at each post in the western Balkans, including Kosovo, Hertfordshire for the fourth quarter of financial year 2010-11. These Supply 80 50 30 figures include UK-based civil servants and staff employed Possession with intent 111 55 56 locally. They are rounded up to the nearest five. to supply Albania, Tirana: 30 Bosnia and Herzegovina, Sarajevo: 35 England and Wales Croatia, Zagreb: 30 Supply 3,792 2,453 1,339 Kosovo, Pristina: 40 Possession with intent 6,394 3,701 2,693 to supply Macedonia, Skopje: 30 Montenegro, Podgorica: 10 2010 Serbia, Belgrade: 70. Offence and police Immediate The following post has five or fewer FCO employees: force area Sentenced custody Other sentences Bosnia and Herzegovina, Banja Luka. Hertfordshire British Nationals Abroad: Italy Supply 56 21 35 Possession with 154 68 86 intent to supply Valerie Vaz: To ask the Secretary of State for Foreign and Commonwealth Affairs what recent discussions his England and Wales Department has had with its Italian counterpart on the rights of UK citizens teaching in universities in Italy. Supply 3,798 2,373 1,425 [63256] Possession with 7,271 3,842 3,429 intent to supply 1 The figures given in the table on court proceedings relate to persons for Mr Lidington: The Government continue to take whom these offences were the principal offences for which they were dealt their duty to uphold the principles central to the EU with. When a defendant has been found guilty of two or more offences it is the single market very seriously. The Secretary of State for offence for which the heaviest penalty is imposed. Where the same disposal is imposed for two or more offences, the offence selected is the offence for which Foreign and Commonwealth Affairs, my right hon. the statutory maximum penalty is the most severe. Friend the Member for Richmond (Yorks) (Mr Hague), 2 Every effort is made to ensure that the figures presented are accurate and complete. However, it is important to note that these data have been extracted raised this issue with Italian Foreign Minister, Franco from large administrative data systems generated by the courts and police Frattini, in April. I also raised it with Franco Frattini forces. As a consequence, care should be taken to ensure data collection my visit to Italy last month. processes and their inevitable limitations are taken into account when those data are used. We continue to lobby the Italian Government hard 3 Cannabis was re-classified to a class B drug on 26 January 2009. on this issue, at ministerial level and through the British 4 Revisions have been made to 2009 figures to account for the late receipt of a small number of court records. embassy, but the Government’s response to date has Source: been that it is the responsibility of the Italian universities Justice Statistics Analytical Services - Ministry of Justice. to seek a resolution. The Italian universities have said that they cannot resolve this issue without help from the Government. We will continue to do all that we can to lobby the FOREIGN AND COMMONWEALTH OFFICE Italian Government to seek a resolution. While we are unable to get involved in Italian legal proceedings, we are nevertheless fully supportive of the British lecturers’ Afghanistan: United Nations cause.

Mr Douglas Alexander: To ask the Secretary of State British Nationals Abroad: Kidnapping for Foreign and Commonwealth Affairs what recent assessment he has made of the security of United Mr Spellar: To ask the Secretary of State for Foreign Nations personnel in Afghanistan. [56330] and Commonwealth Affairs pursuant to the answer of 13 June 2011, Official Report, column 603W, on British Mr Hague: Primary responsibility for assessment of nationals abroad: ransom, whether the payment of a the security situation of UN personnel in Afghanistan ransom which is paid in whole or in part to a is with the United Nations. However, the security managers proscribed terrorist organisation constitutes an illegal at the British embassy in Kabul routinely share information act in UK law. [62226] about security threats with the UN. Additionally we often offer assistance with transportation to UN personnel Alistair Burt: The payment of a ransom in whole or travelling to Helmand, where the UN has no security in part to a proscribed terrorist organisation is an illegal staff. act in UK law. The Terrorism Act (TACT) 2000 provides 1027W Written Answers4 JULY 2011 Written Answers 1028W criminal penalties for offences relating to fundraising or China: Diplomatic Service using or possessing money or other property for the purposes of terrorism (set out in sections 15 to 18 of Fabian Hamilton: To ask the Secretary of State for TACT), including providing money that will be used for Foreign and Commonwealth Affairs what proportion the purposes of terrorism. This includes, but is not of diplomatic staff in China work in (a) trade, (b) limited to, any resources of a proscribed organisation. human rights and (c) general diplomatic roles. [62117] The potential penalties for an individual who is guilty of such an offence are set out in sections 22 to 23 of Alistair Burt: The following table gives the approximate TACT. number of Foreign and Commonwealth Office employees at each post in mainland China and Hong Kong for the fourth quarter of financial year 2010-11. These figures British Overseas Territories: Carbon Emissions include UK-based civil servants and staff employed locally. Andrew Rosindell: To ask the Secretary of State for Foreign and Commonwealth Affairs what recent steps Approximate his Department has taken to reduce the carbon number footprint of British Overseas Territories. [59019] China Beijing 190 Chongqing 35 Mr Bellingham: Responsibility for this issue is devolved to the governments of the Overseas Territories. However Guangzhou 60 the Foreign and Commonwealth Office (FCO) is working Shanghai 60 with the Department for Energy and Climate Change to Hong Kong 100 ensure support to the Overseas Territories, in their Note: Posts with fewer than 100 staff are rounded up to the nearest 5 efforts to reduce their carbon footprints. Funding from and those with 100 or more are rounded up to the nearest 10. the joint FCO-Department for International Development For operational and security reasons, we cannot provide and Overseas Territories Environment Programme has a more detailed breakdown. been used in support of renewable energy initiatives. I raised this issue during the Overseas Territories Consultative China: Family Planning Council in November last year, to which all the leaders and premiers from the Overseas Territories were invited. Mr Amess: To ask the Secretary of State for Foreign and Commonwealth Affairs whether he raised the issue Capita of the one child policy during the visit to the UK of the Prime Minister of China; and if he will make a statement. [R] [63116] Tristram Hunt: To ask the Secretary of State for Foreign and Commonwealth Affairs how many Alistair Burt: During his summit discussions with contracts his Department has awarded to Capita since Premier Wen, the Prime Minister raised his concerns May 2010; and what the (a) monetary value and (b) about human rights in China. No subjects were off net worth was of each contract. [62724] limits. Mr Lidington: The Foreign and Commonwealth Office We do not dispute China’s right or need to implement (FCO) has not awarded any contracts within the UK to family planning policies but we do believe they should Capita since May 2010. be based on principles of consent and not coercion, and in line with international human rights standards. As budgets in the FCO are devolved to over 260 posts overseas and details of their contracts are not held My right hon. and noble Friend Baroness Warsi centrally, the information requested could be provided raised China’s population policy earlier this year in a only at disproportionate cost. meeting with Madame Uyunqimg, vice-chair of the Standing Committee of the National People’s Congress.

Chen Guangcheng Council of Europe: Finance

Mr Amess: To ask the Secretary of State for Foreign Priti Patel: To ask the Secretary of State for Foreign and Commonwealth Affairs whether he raised the and Commonwealth Affairs what budgets have been treatment of Chen Guangcheng during the visit to the set for each institution of the Council of Europe in the UK of the Prime Minister of China; and if he will next three years; and what contribution will be required make a statement. [R] [63115] from the UK. [62541]

Alistair Burt: During his summit discussions with Mr Lidington: Negotiations are ongoing among Council Premier Wen, the Prime Minister raised his concerns of Europe member states over the budget beyond 2011. about human rights in China. In doing so he mentioned a number of high profile individual cases. No subjects Departmental Carbon Emissions were off limits. We remain concerned about the treatment of Chen Huw Irranca-Davies: To ask the Secretary of State Guangcheng and his family. We continue to monitor his for Foreign and Commonwealth Affairs whether his situation and are working with EU partners to maintain Department has any plans to generate low-carbon the profile of his case. energy from its estate. [63326] 1029W Written Answers4 JULY 2011 Written Answers 1030W

Mr Lidington: The Foreign and Commonwealth Office Wilton Park (FCO) plans to install a tri-generation heat, cooling and £ power plant in our headquarters in King Charles street. Total 25,527 Gas will be burnt in the plant to generate electricity. The by-product heat will supply both domestic hot water The chief executive spent £9,608 on travel included in and, via a heat exchanger, cooling to the on-site data-centre. this figure. The FCO also plans to use the solar hot water Egypt technology on our new ICT building at Hanslope Park. Our Wilton Park Executive Agency has already installed Ian Lavery: To ask the Secretary of State for Foreign a biomass boiler, using woodchip biomass from its and Commonwealth Affairs what recent discussions he grounds. has had with his US counterpart on the situation in To identify all low carbon energy generation on the Egypt. [60596] overseas estate would entail disproportionate cost. However, a number of overseas Posts have installed solar hot Alistair Burt [holding answer 28 June 2011]: The water heaters to supply domestic hot water and some Secretary of State for Foreign and Commonwealth use photovoltaic solar panels to generate electricity. Affairs, my right hon. Friend the Member for Richmond (Yorks) (Mr Hague), is in regular contact with Secretary Departmental Travel of State Clinton on a wide range of middle east issues. They met during President Obama’s state visit to the Maria Eagle: To ask the Secretary of State for Foreign UK to discuss developments in the region. and Commonwealth Affairs (1) how much has been spent on travel in respect of (a) each of his Department’s Ian Lavery: To ask the Secretary of State for Foreign executive agencies and (b) the chief executive of each and Commonwealth Affairs what recent discussions he such agency since May 2010; [56178] has had with the Egyptian Supreme Military Council on the process of transition from military to civilian (2) how much each executive agency of his Department rule in Egypt. [60597] has spent on travel by (a) private hire vehicles, (b) trains, (c) buses, (d) commercial aircraft and (e) private Alistair Burt [holding answer 28 June 2011]: The aircraft since May 2010. [56074] Secretary of State for Foreign and Commonwealth Affairs, my right hon. Friend the Member for Richmond Mr Lidington: FCO Services is a Trading Fund of the (Yorks) (Mr Hague), visited Egypt on 2 May and met Foreign and Commonwealth Office (FCO). FCO Services Field Marshall Tantawi, Head of the Supreme Council provides secure services on a global scale to the FCO, of the Armed Forces. He emphasized the importance of other Government Departments and other international pluralistic parliamentary elections and raised his concerns governments and institutions. This involves sending about the dangers of extremism and sectarianism. He security cleared staff to various locations around the also encouraged reform to create the right environment world to work in sensitive and restricted environments. for investors to return to Egypt. I visited Egypt from Due to the global nature of the work, the majority of 9-11 March to develop the relationship with current travel spend is on commercial flights. FCO Services and prospective political figures and to offer UK expertise spent the following since May 2010 to March 2011: to tackle the challenges of political, economic and FCO Services security sector reform. £ Our embassy is in close contact with the Egyptian Private hire 167,685 authorities, the opposition and activists to support the Trains 286,376 transition, including through initiatives under the Arab Buses — Partnership. These include work with the media on its Commercial aircraft 4,449,400 role in elections, and parliamentary capacity building. Private aircraft — Fair Trials International Total 4,903,461 The cost of flights within FCO Services has reduced George Eustice: To ask the Secretary of State for from approximately £5.6 million in 2008-09. The chief Foreign and Commonwealth Affairs what funding his executive of FCO Services spent no money on air, rail Department has provided for Fair Trials International or private hire vehicles since May 2010 but claimed in the last five years. [63331] £2,168 in mileage expenses. Alistair Burt: In the last five years, the Foreign and Wilton Park is a forum for democracy building, post- Commonwealth Office has provided Fair Trials conflict reconciliation and international dialogue. Between International with funding for two projects (to the value May 2010 and March 2011 Wilton Park spent the of £6,000 and £15,000). These have been designed to following on travel: help British nationals in detention abroad access the Wilton Park best possible range of support. £ Greece: Asylum Private hire 3,075 Trains 10,128 Oliver Heald: To ask the Secretary of State for Foreign Buses — and Commonwealth Affairs if he will make representations Commercial aircraft 12,324 to the Greek Government on the condition of detention Private aircraft — facilities for asylum seekers in Greece. [62682] 1031W Written Answers4 JULY 2011 Written Answers 1032W

Mr Lidington: The Secretary of State for Foreign and Palestinian state living in peace and security alongside a Commonwealth Affairs, my right hon. Friend the Member safe and secure Israel and their other neighbours in the for Richmond (Yorks) (Mr Hague), is not planning to region. make representations to the Greek Government. The issue of detention centres is sometimes discussed with Libya Greece at EU Justice and Home Affairs Council discussions, most recently in autumn 2010. The UK also raised the George Freeman: To ask the Secretary of State for issue in its intervention at the UN Human Rights Foreign and Commonwealth Affairs what assessment Universal Periodic Review (UPR) of Greece in Geneva he has made of the effects of international intervention on 9 May 2011. in Libya on (a) Gaddafi military strength, (b) the The UK participates actively in European Union ability of Libyan rebels to engage and defeat Gaddafi efforts to assist Greece to strengthen its migration and forces and (c) safety of civilians; and if he will make a asylum procedures through the effective implementation statement. [62862] of its ’National Action Plan for Migration Management’. This support includes the secondment of UK experts to Alistair Burt: The goal of the international coalition the European Asylum Support Office (EASO) to help is to protect civilians and civilian-populated areas under Greece improve its detention and reception facilities. threat of attack, in accordance with UNSCR 1973. Action undertaken to date has steadily reduced Gaddafi’s Iran: Religious Freedom ability to launch and sustain attacks on his own people and has prevented a massacre of civilians, particularly Mr Amess: To ask the Secretary of State for Foreign in Benghazi. Opposition forces are pushing Gaddafi’s and Commonwealth Affairs what recent reports he has forces back and have also been able to protect the cities received of the ability of each religious community in of Benghazi and Misratah from further attack. Coalition Iran to (a) exercise its faith, (b) to observe its (i) action to implement UNSCR 1973 will continue for as holidays and (ii) weekly day of rest and (c) to administer long as attacks against the civilian population of Libya its internal affairs; and if he will make a statement. persist. [63106] Libya: Armed Conflict Alistair Burt: We continue be concerned by the state sponsored persecution of a number of religious minorities Mr Douglas Alexander: To ask the Secretary of State in Iran. Although several religions are “protected” in for Foreign and Commonwealth Affairs whether Ministers the Iranian constitution, in practice they are still monitored of his Department have met Ministerial colleagues in closely and frequently put under pressure because of (a) the Department for International Development the way they observe their faith. We are further concerned and (b) the Ministry of Defence to discuss post-conflict by the persecution of non-“protected”religions, including planning in Libya. [63080] the Baha’is, and frequently call on the Iranian authorities to cease all persecution of minorities in Iran. Mr Hague: I regularly meet with my ministerial colleagues According to the website of the Iranian Ministry of including those in the Department for International Labour, religious minorities may not replace Fridays Development and the Ministry of Defence to discuss with their weekly day of rest and non-Islamic holidays Libya, both bilaterally and in the National Security are not legally counted as state holidays. Council.

Iran: Satellites Mr Douglas Alexander: To ask the Secretary of State for Foreign and Commonwealth Affairs whether officials of his Department involved in post-conflict Mr Amess: To ask the Secretary of State for Foreign planning in Libya have discussed the task with officials and Commonwealth Affairs what assessment he has involved in post-conflict planning after the invasion of made of the potential effects on the middle east peace (a) Afghanistan in 2001 and (b) Iraq in 2003. [63085] process of the recent launch by Iran of a Rassad-1 satellite; and if he will make a statement. [62006] Mr Hague: The Government place great importance on building on the lessons learned from previous conflicts, Alistair Burt: We have noted the recent space launch including Afghanistan and Iraq. The tri-departmental under taken by Iran with concern. Much of the technology Stabilisation Unit leads on capturing and disseminating used in this space launch is similar to that used to these lessons and has been engaged proactively in cross- develop ballistic missiles. Under UNSCR 1929 Iran is Government discussions on stabilisation planning in prohibited from undertaking activity relating to ballistic Libya. missiles capable of carrying a nuclear payload, and from launches using ballistic missile technology. Steve Baker: To ask the Secretary of State for Foreign We remain concerned that Iran continues to develop and Commonwealth Affairs what recent representations missile technology with the clear intention of extending he has received on NATO’s compliance with UN Security the range of its missiles. Council resolutions relating to Libya; and if he will Incidents such as this highlight Israel’s very real make a statement. [63553] security needs and only encourage Israel to look inward, instead of engaging on the middle east peace process. Alistair Burt: The Foreign and Commonwealth Office We see negotiations towards a two state solution as the regularly receives correspondence from Members of best way to meet the national aspirations of Israelis and Parliament and members of the public about NATO’s Palestinians and lead to a sovereign, viable and contiguous compliance with UN Security Council Resolution 1033W Written Answers4 JULY 2011 Written Answers 1034W

(UNSCR) 1973. NATO is implementing the UNSCR the violence in Gaza and southern Israel following a effectively, using all necessary measures to protect civilians spike in rocket attacks and military strikes in early April and civilian areas from attack. 2011. We are pleased that relative calm has returned to Gaza and Southern Israel more recently, but continue Libya: Military Aid to monitor the situation closely. We have made clear to the Government of Israel that George Freeman: To ask the Secretary of State for while Israel has every right to protect its people, it is Foreign and Commonwealth Affairs which other also important that in so doing that it also shows governments have committed resources to military action restraint and makes every effort to avoid causing civilian in Libya to date; what the nature of these resources are; casualties. whether these resources represent (a) an ongoing and (b) a completed commitment; and if he will make a Mr Amess: To ask the Secretary of State for Foreign statement. [63187] and Commonwealth Affairs what reports he has received on the outcome of attempts to destroy tunnels Alistair Burt: 18 nations are contributing aircraft, used to smuggle weapons into Gaza since March 2011; maritime assets or personnel to the region under UNSCR and if he will make a statement. [63110] 1973. They are the US, UK, France, Italy, Denmark, Spain, Belgium, Norway, Netherlands, Canada, Qatar, Turkey, Alistair Burt: We are aware that there have been Greece, U.A.E, Sweden, Jordan, Bulgaria and Romania. attempts to destroy the tunnels in Gaza. The UK recognises Maldives: Inward Investment that Israel has legitimate security concerns that must continue to be safeguarded, and believes efforts to Karen Lumley: To ask the Secretary of State for maintain security while enabling movement and access Foreign and Commonwealth Affairs what recent for Palestinian people and goods are critical. discussions he has had with the government of the We remain clear that the situation in Gaza is both a Maldives on promoting inward investment in the tragedy and unsustainable. While there is no humanitarian Maldives; and if he will make a statement. [63367] crisis, there is an enduring need for humanitarian aid. We have also been clear that actions by both Israel and Alistair Burt: The Foreign and Commonwealth Office Hamas have contributed to this situation. Working has had no recent discussions with the Government of closely with the EU and Quartet, we continue to call on Maldives on promoting inward investment. Israel to ease restrictions on access and enable a return The UK enjoys a strong relationship with Maldives to economic normality. and the Minister of State, the hon. Member for Taunton Israel’s decision to move from a list of 120 permitted Deane (Mr Browne), met the Maldives high commissioner goods to a list of specific prohibited items was a positive on 24 May, when he discussed a range of bilateral issues step. However there has been no fundamental change in and assistance. the crossings regime and economic stagnation and de-development in Gaza remain the norm. We are clear Members: Correspondence that more needs to be done, particularly to enable exports, accelerate key imports for reconstruction and Mr Baron: To ask the Secretary of State for Foreign ensure free movement of people. Without economic and Commonwealth Affairs when the hon. Member for growth in Gaza, there is a risk of fostering a more Basildon and Billericay will receive a substantive response broadly radicalised environment. An improved economy to the letter of 14 April 2011 on the Arms Export and a resurgence of Gaza’s pragmatic business fraternity Licensing Review. [63861] are not only essential for the people of Gaza, but are also firmly in Israel’s security interests. Alistair Burt: The Foreign and Commonwealth Office did not receive the hon. Member for Basildon and National Security Council Billericay’s letter of 14 April. We have now received an electronic copy from the hon. Member’s constituency office and will be replying as soon as possible. Mr Douglas Alexander: To ask the Secretary of State for Foreign and Commonwealth Affairs what the Middle East: Armed Conflict membership is of the Emerging Powers Sub-Committee of the National Security Council. [63016] Mr Amess: To ask the Secretary of State for Foreign and Commonwealth Affairs what reports he has Mr Hague: The membership of the Emerging Powers received of the firing of mortars and Qassam rockets Sub-Committee of the NSC is: into southern Israel from Gaza on 22 June 2011; and if The Secretary of State for Foreign and Commonwealth Affairs he will make a statement. [63109] (Chair) The Secretary of State for Business, Innovation and Skills Alistair Burt: Our embassy in Tel Aviv monitor rocket The Chancellor of the Exchequer attacks on Israel closely. As we have consistently made The Secretary of State for the Home Department clear all such attacks should stop. We are aware of one Qassam and one mortar shell fired into Southern Israel, The Secretary of State for Defence neither caused harm or damage. The Secretary of State for Energy and Climate Change The Secretary of State for Foreign and Commonwealth The Secretary of State for International Development Affairs, my right hon. Friend the Member for Richmond The Chief Secretary to the Treasury (Yorks) (Mr Hague), has made clear our concerns about Minister for Government Policy, Cabinet Office 1035W Written Answers4 JULY 2011 Written Answers 1036W

Minister of State (Mr Browne), Foreign and Commonwealth Alistair Burt: Saudi Arabia is a country in which Office Islamic law is strictly enforced. The public practice of Minister of State for Security and Counter-Terrorism, Home any form of religion other than Islam is illegal, as is an Office intention to convert others. The Saudi authorities do, however, accept the private practice of religions other Mr Douglas Alexander: To ask the Secretary of State than Islam, and visitors may bring a Bible into the for Foreign and Commonwealth Affairs on what dates country as long as it is for their personal use. Small the Emerging Powers Sub-Committee of the National private services are tolerated. Security Council has met. [63017] The Saudi working week is from Saturday to Wednesday and no provision is made in Saudi Arabia for non-Muslim Mr Hague: The Emerging Powers Sub-Committee of religious holidays or days of rest. The ability for people the NSC has met six times to date. The dates of these to observe them will depend on their employers. meetings were: 1 November 2010 As all other religions are officially not allowed in Saudi Arabia, other religious communities are not able 14 December 2010 to operate in public, administer joint bank accounts, or 2 February 2011 interact with the Saudi Government as anything other 27 April 2011 than individuals. 9 May 2011 UK embassies and high commissions have a 13 June 2011 responsibility to monitor and raise human rights issues Pakistan: China in their host countries. Foreign and Commonwealth Office staff routinely raise our concerns with host governments and where possible they take action on Mr Douglas Alexander: To ask the Secretary of State individual cases and push for changes in unfair practices for Foreign and Commonwealth Affairs what recent and laws. assessment he has made of the state of relations between Pakistan and China. [63021] Syria: Foreign Relations Mr Hague: China and Pakistan enjoy a strong relationship. Prime Minister Gilani visited China in Mr MacShane: To ask the Secretary of State for May to mark the 60th anniversary of Chinese recognition Foreign and Commonwealth Affairs whether the hon. of Pakistan. We understand the two countries agreed Member for Braintree and Lord Commissioner of the further strengthening of the relationship through enhanced Treasury, Brooks Newmark, was representing the economic and trade relations and increased co-operation Government at his recent meeting with President Bashar on energy. al-Assad in Damascus. [63258] Pakistan: Politics and Government

Mr Douglas Alexander: To ask the Secretary of State Alistair Burt: The Lord Commissioner of Her Majesty’s for Foreign and Commonwealth Affairs what recent Treasury, my hon. Friend the Member for Braintree assessment he has made of the security situation in (Mr Newmark), travelled to Syria in a private capacity Balochistan. [60139] where he met President Assad. He told President Assad that international pressure on Syria will only increase if Mr Hague: The Government of Pakistan face a difficult it continues on its current course. Given that only a law and order situation in Balochistan where it has to change of course in Syria will bring about an end to the tackle diverse militant and criminal threats. 737 attacks, violence we should welcome contacts that reinforce the including 614 by nationalist insurgents, were reported need for urgent change. across Balochistan in 2010, claiming the lives of over 600 people. UN Security Council The UK regularly engages with the Government of Pakistan and the provincial government on matters of Rehman Chishti: To ask the Secretary of State for security, rule of law and human rights in Balochistan. Foreign and Commonwealth Affairs what recent discussions Officials also meet representatives of the Baloch and he has had with his counterparts in the African Union Pashtun communities and political parties. We continue on UN Security Council Resolution 1973. [63216] to press the Government of Pakistan to implement measures designed to address the causes of instability in Balochistan. In particular, the UK would like to see full Alistair Burt: The Secretary of State for Foreign and implementation of the reform package for Balochistan Commonwealth Affairs, my right hon. Friend the Member announced by the Government of Pakistan in November for Richmond (Yorks) (Mr Hague) discussed the situation 2009. in Libya at the South Africa Foreign Minister at the Saudi Arabia: Religious Freedom bilateral summit on 9 June. The Secretary of State for International Development, Mr Amess: To ask the Secretary of State for Foreign my right hon. Friend the Member for Sutton Coldfield and Commonwealth Affairs what recent reports he has (Mr Mitchell) and the Under-Secretary of State for received of the ability of each religious community in Foreign and Commonwealth Affairs, my hon. Friend Saudi Arabia to (a) exercise its faith, (b) to observe its the Member for North West Norfolk (Mr Bellingham) (i) holidays and (ii) weekly day of rest and (c) to recently had a series of meetings with African Union administer its internal affairs; and if he will make a Heads of State, Government and Foreign Ministers in statement. [63107] the margins of the Summit at Malabo, Equatorial Guinea. 1037W Written Answers4 JULY 2011 Written Answers 1038W

Zimbabwe: Politics and Government The Child Maintenance and Enforcement Commission (the Commission) has jurisdiction, i.e. legal authority, to make a maintenance calculation and collect child support maintenance Mr Gregory Campbell: To ask the Secretary of State only when the parent with care, the non-resident parent and the for Foreign and Commonwealth Affairs if he will raise qualifying child are all habitually resident in the United Kingdom with neighbouring African states the recent statement (UK). Habitual residence is a legal concept which means more by Zimbabwean Brigadier General Douglas Nyikayaramba than simply ’where you live’. A person can habitually reside in that the military and the ruling party in Zimbabwe are more than one country or in none. Habitual residence can continue inseparable; and if he will press those states to take during an absence from the UK. further action to assist the population of Zimbabwe. In instances where we have jurisdiction, the Commission can [63550] use its information seeking powers enshrined in child support legislation1 to identify and trace the non-resident parent. Caseworkers Mr Bellingham: Statements such as this are very can use a range of tools to trace non-resident parents; For concerning. For Zimbabwe to make progress and move example our Common Enquiry Service enables caseworkers to consider information from Income Support; Incapacity Benefit/Severe forward as a democratic country, it is vital that the Disablement Allowance/Maternity Allowance; Working Families military stays independent of all political parties and Tax Credits and Job Seekers Allowance systems. If the Caseworker does not interfere in an impartial election process. is unable to locate a non-resident parent using the Common Enquiry However, we do not intend to raise this issue further Service, they will use a system that provides links to credit reference with regional states at this time. We were encouraged by agency data. Caseworkers can also approach the HM Revenue the communiqué following the recent Southern African and Customs to request a search on their tax and other databases. Development Community (SADC) summit in Sandton, Although, the powers to obtain information to identify and which re-emphasised the importance of free and fair trace a non-resident are now given to the Commission, it is the Child Support Agency (the operating arms of the Commission) elections under conditions of a level playing field. As that currently exercises them. guarantor of the Global Political Agreement, SADC Whilst not powers specifically, relating to tracing non-resident has an important role to play in helping Zimbabwe to parents, the Commission also has further powers to require make progress towards such elections. We will continue information to be provided from a range of people or organisations to do all we can to support that role. that either have the information in their possession or can reasonably be expected to obtain it. These include powers to require information to be provided from: WORK AND PENSIONS The parties to the case, i.e., the parent with care and the non-resident parent; Carer’s Allowance An alleged parent that has denied parentage of a child; Ms Ritchie: To ask the Secretary of State for Work Employers; and Pensions if he will bring forward proposals to Companies or partnerships; introduce a carer’s allowance in respect of those diagnosed Accountants; with cancer; and if he will make a statement. [63424] Court officials; Crown employees; Maria Miller: Carer’s allowance exists for carers who provide regular and substantial care for a severely disabled The Driver and Vehicle Licensing Agency (DVLA); person. Carers who look after people diagnosed with Any Agency of the Department for Work and Pensions; cancer are eligible to claim carer’s allowance if they Local authorities; satisfy the conditions of entitlement for the benefit. Deposit takers—including banks and building societies; and The Government have no plans to change these Gas and electricity providers. arrangements. We presently do not have arrangements in place for tracking Children: Maintenance non-resident parents who travel into and out of the UK. Where we have evidence that the non-resident parent in question Jack Lopresti: To ask the Secretary of State for Work is in prison or has recently been in prison the Commission can make a referral to the Prison Service to access its database to trace and Pensions what powers the Child Maintenance and the whereabouts of the non-resident parent. Enforcement Commission has to identify the whereabouts Non-resident parents who have been granted asylum in the of absent fathers who (a) regularly travel to and from UK are considered to be legally resident. The Commission can the UK, (b) have recently been in prison and (c) have therefore use its powers to trace and identify them for child been granted asylum in the UK. [63076] maintenance purposes as it does any other non-resident parent. Maria Miller: The Child Maintenance and Enforcement I hope you find this answer helpful. Commission is responsible for the child maintenance 1 Section 4 of the Child Support Act 1991 and regulation 3 (1)a of system. I have asked the Child Maintenance Commissioner the Child Support Information Regulations 2008 (SI 2008 No. 2551 refer) to write to the hon. Member with the information requested and I have seen the response. Community Care Grants Letter from Noel Shanahan: In reply to your recent Parliamentary Question about the Mr Jim Cunningham: To ask the Secretary of State Child Maintenance and Enforcement Commission, the Secretary for Work and Pensions what consultation his Department of State promised a substantive reply from the Child Maintenance (a) Commissioner. undertook in respect of his proposals on community care grants and (b) crisis loans. [63210] You asked the Secretary of State for Work and Pensions what powers the Child Maintenance and Enforcement Commission has to identify the whereabouts of absent fathers who (a) regularly Chris Grayling: The December 2010 White Paper travel to and from the UK (b) have recently been in prison and (c) ‘Universal Credit: welfare that works’ set out the have been granted asylum in the UK. [63076] Government’s reform plans for the Social Fund. In 1039W Written Answers4 JULY 2011 Written Answers 1040W

February 2011 we published a call for evidence, ‘Local Personal Independence Payment support to replace Community Care Grants and Crisis Loans for living expenses’, aimed at local authorities, Mr Jim Cunningham: To ask the Secretary of State welfare rights organisations and other customer for Work and Pensions what representations he has representative groups, and individuals. It focused on received (a) against and (b) in favour of the proposed how the new service might be delivered in England. qualifying period for the personal independence payment. We published a detailed response to the call for [63208] evidence on 23 June, which is available in the library and can be accessed on the Department for Work and Maria Miller: Personal independence payment is intended Pensions website at: to support people with long-term health conditions or www.dwp.gov.uk/consultations/2011/local-support-replace- disabilities. A qualifying period of six months helps us ccg-cl.shtml achieve this. When taken together with the six month prospective test, the six month qualifying period brings Employment and Support Allowance our definition of long-term disability closer in line with that from the Equality Act 2010. As now, people will Mr Jim Cunningham: To ask the Secretary of State not always have to wait six months before being paid for Work and Pensions what consultation he has personal independence payment if some, or all, of the undertaken on his proposals for the introduction of a qualifying period has been satisfied by the time they 12-month time limit on entitlement to a single element submit their claim. of employment and support allowance. [63209] We have received a number of representations on the Chris Grayling: Since this measure was announced as proposed qualifying period, in the form of responses to part of the spending review in October, both Ministers our consultation. Some organisations were in favour of and officials have met with a number of representatives our proposals regarding the qualifying period and the from organisations representing disabled people, such fact that it would align with the definition of long-term as Macmillan Cancer Support, Disability Alliance, Citizens disability. Others argued against the proposal on the Advice, Mind and Scope. grounds that some health conditions and impairments, The Department values the views of disability groups such as cancer, have a sudden onset and individuals and is committed to engaging with organisations such incur extra costs very soon after diagnosis. The as these on an ongoing basis as part of our wider Government’s response to the consultation on disability consultation on the implications of our proposals for living allowance reform (Cm 8051) includes some welfare reform to ensure that the social security system representations from organisations on this issue. The supports disabled people and those with health conditions document is available in the House of Commons Library. in the most sensitive, fair and appropriate way. My officials and I have met, and continue to meet, disabled people and a large number of disability Housing Benefit organisations to discuss our proposals for personal independence payment, including the qualifying period. Nadine Dorries: To ask the Secretary of State for Work and Pensions (1) whether people with large Mr Donohoe: To ask the Secretary of State for Work numbers of children are to be considered as having and Pensions what steps he has taken to make his exceptional circumstances in respect of the proposed Department’s consultation on assessment regulations annual cap on housing benefit payments; [62128] and criteria for the proposed personal independence (2) whether people living in central London are to be payment accessible to those who have difficulty reading; considered as having exceptional circumstances in respect and if he will make a statement. [63545] of the proposed cap on annual housing benefit payments; [62129] Maria Miller: We published an initial draft of our (3) under which exceptional circumstances he proposes proposals for the assessment criteria for personal that benefit claimants will be able to receive a payment independence payment on 9 May, in the form of draft higher than the annual housing benefit cap. [61950] regulations and a supporting technical note. We are now carrying out an informal consultation on the criteria, Steve Webb: We are introducing a cap on the total to hear views from disabled people and their organisations amount of benefit a household can claim because we do on how well the criteria will work and if they can be not believe that it is fair that people can receive more in improved. benefits from the state than hard-working, low-income Under the Equality Act we are required to make families. reasonable adjustments to ensure the documents are We have already said that we will exclude from the accessible for all those who would like to read them. We overall benefit cap: are providing several alternative formats of both these Households with someone in receipt of working tax credit, documents, including Braille, audio and large print increasing the incentive to find employment; versions, making them accessible to individuals who Households which include someone, including a child, receiving have difficulty reading. We are also producing an easy disability living allowance or constant attendance allowance, read and British Sign Language versions of the technical recognising the extra costs they face; note on the criteria, which will be available as soon as War widows and widowers. possible. We will happily take comments on the draft criteria We are looking at ways of easing the transition for up until 31 August, four weeks after our original deadline. families and providing assistance in hard cases and will To help explain our proposals and seek views on set out details later in the year. Our aim will be to these, my officials have also met with over 30 disability balance fairness, affordability and work incentives. organisations to date, and will be holding two workshops 1041W Written Answers4 JULY 2011 Written Answers 1042W with over 20 Scottish disability organisations in early Steve Webb: The information requested is not readily July. We will continue to meet with other organisations available and could be provided only at disproportionate throughout the summer. cost. We are also currently testing the initial criteria. Our aim is to publish a further draft of the assessment State Retirement Pensions: Females criteria in the autumn, which builds on the findings from the testing and the feedback from disability Jon Ashworth: To ask the Secretary of State for Work organisations. and Pensions (1) how many women in Leicester South constituency, born between 6 December 1953 and 5 Mr Donohoe: To ask the Secretary of State for Work October 1954, will be required to wait an additional 18 and Pensions (1) what steps he has taken to accommodate months to claim a state pension under his plans to demand for face-to-face meetings outside London as accelerate the change in the state pension age; [63636] part of his Department’s consultation on assessment (2) how many women from Leicester South constituency, regulations and criteria for the proposed personal born between 6 March 1954 and 5 April 1954, will be independence payment; and if he will make a statement; required to wait an additional two years before claiming [63546] a state pension under his plans to accelerate the change (2) how many face-to-face meetings his Department in the state pension age. [63635] has undertaken as part of its consultation on proposals for a personal independence payment since the Steve Webb: We estimate that in Leicester South consultation began; and how many of those meetings constituency there are approximately 387 women born between 6 December 1953 and 5 October 1954, who will involved people from Scotland. [63547] have an increase in state pension age of 18 months or more. Of these approximately 42 women, born between Maria Miller: Throughout the development of the 6 March 1954 and 5 April 1954, will have an increase in new personal independence payment, which will replace their state pension age of two years. disability living allowance, we have had extensive face to face discussions and consultation with disabled people, Universal Credit their families and organisations representing all parts of the United Kingdom including Scotland. The insight of Mr Jim Cunningham: To ask the Secretary of State organisations such as MS Society Scotland, Citizens for Work and Pensions what funding his Department Advice Scotland, Glasgow Association for Mental Health, plans to provide for advice on benefits during the Tayside Deaf Forum and the Coalition of Carers in transitional period to universal credit; and if he will Scotland has been immensely valuable. make a statement. [63211] We are absolutely committed to developing the detail of the assessment for the benefit in an open and transparent Chris Grayling: We understand the vital importance manner. This is why we have published our initial of keeping claimants informed about how the benefits proposals for the criteria on 9 May and why we are system is changing during the transition process, and consulting informally on them over the summer. We are currently considering options for fulfilling that need. want to hear views from disabled people and their organisations on how well the criteria will work and if Mr Jim Cunningham: To ask the Secretary of State they can be improved. for Work and Pensions what steps his Department As part of this informal consultation on the draft plans to take to ensure that people who suffer a serious assessment criteria, my officials have already met with accident are not disadvantaged under his Department’s over 30 disability organisations, including a number proposals for the introduction of a universal credit. based outside of London, and will continue to meet [63212] with others throughout the summer. They are holding two workshops in early July in Edinburgh which will be Chris Grayling: Where a claimant is assessed as having attended by over 20 Scottish disability organisations. limited capability for work, perhaps through a serious accident, the calculation of universal credit will include Our aim is to publish a further draft of the assessment an additional element equivalent to the work-related criteria in the autumn, which builds on the findings activity component in employment and support allowance. from the testing and the feedback from disability Where a claimant is assessed as having limited capability organisations. for work-related activity as well as limited capability for work, there will be an element that is higher than the support component currently paid to this group in State Retirement Pensions employment and support allowance.

Jeremy Corbyn: To ask the Secretary of State for Working Tax Credit Work and Pensions how many people receiving the basic state pension and previously resident abroad have Jonathan Reynolds: To ask the Secretary of State for returned to take up permanent residence in the UK in Work and Pensions what support he plans to provide to each of the last five years; and how many such people couples who do not work for an additional eight hours were returning from (a) EU countries, (b) countries but who wish to remain in work after the implementation where a reciprocal agreement on pensions is in place of the increase in the working hours qualification for and (c) countries where the British basic state pension couples with children to claim working tax credit. is not indexed in each such year. [63205] [63009] 1043W Written Answers4 JULY 2011 Written Answers 1044W

Mr Gauke: I have been asked to reply. However, the Cabinet Office is funding the Electoral Under the current tax credits system, couples with Commission to carry out research to provide a robust children can claim the working tax credit, if one partner national measure of completeness and accuracy of the works 16 hours. Lone parents must work at least 16 registers. The research will also provide some data on hours to qualify for the working tax credit. This change different demographic breakdowns. The study will report makes the system fairer by reducing the disparity in the towards the end of 2011. number of hours which lone parents and couples are The Commission will be conducting further research obliged to work. which will check the registers against the census, and The changes to tax credits need to be considered this will provide data on detailed demographic breakdowns. within the wider context of other changes which the This study is expected to report in 2013. Government have introduced to help low income working families, such as the increase in the level of the personal Electoral Systems allowance and the above-indexation increases to the child tax credit. Meg Munn: To ask the Deputy Prime Minister what plans he has to improve the administration of elections Jonathan Reynolds: To ask the Secretary of State for for the purposes of ensuring consistency in the Work and Pensions (1) if he will estimate the average provision of services to voters. [63834] amount of (a) working tax credit and (b) child tax credit that will no longer be paid to couples who do not Mr Harper: All those involved in the administration work sufficient additional hours to claim working tax of elections should provide a service that puts the credit when the working hours qualification increases elector first. The legislation governing the administration from 16 to 24 hours; [63029] of elections and the Electoral Commission’s accompanying (2) what estimate he has made of the number of guidance provide a platform from which Returning couples who will be affected by the increase in the Officers can provide services to electors in a consistent working hours qualification for couples with children manner. There can also be local factors that affect how claiming working tax credit; [63030] elections are delivered and allowing some discretion to (3) how many households where one adult is disabled Returning Officers can be beneficial. We will continue will be affected by the increase in the working hours to consider the arrangements for the delivery of elections qualification for couples with children claiming working to support voters’ experience at the polls. tax credit. [63043] Falkland Islands Mr Gauke: I have been asked to reply. The measures referred to in these questions are part Mr Jenkin: To ask the Deputy Prime Minister of a range of reforms to the tax credits system announced whether he had any discussions on the Falkland Islands at the spending review. during his recent visit to Brazil. [63260] Estimating the number of households impacted by The Deputy Prime Minister: I discussed the Falkland an individual measure does not give a clear indication Islands with Brazilian Foreign Minister Patriota in the of the full monetary impact on an individual household. course of wide-ranging talks. I made clear the British The Government published estimates of the distributional Government’s longstanding and deeply held view that impact of the packages of announced tax and benefit we have no doubts about our sovereignty over the measures which can be found at: Islands and that the Falkland Islanders’ right to determine http://www.hm-treasury.gov.uk/d/junebudget_annexa.pdf their own political future is paramount. http://cdn.hm-treasury.gov.uk/sr2010_annexb.pdf Prisoners: Voting Rights

Priti Patel: To ask the Deputy Prime Minister pursuant DEPUTY PRIME MINISTER to the answer of 23 June 2011, Official Report, column 428W, on voting rights: prisoners, whether he plans to Electoral Register inform the House of Commons of his policy on the legislative measures he plans to introduce on extending the franchise to prisoners prior to providing an update Chris Ruane: To ask the Deputy Prime Minister what to the Committee of Ministers of the Council of Europe. his most recent estimate is of the number of [62931] unregistered voters in (a) the UK and (b) each region of the UK. [63432] Mr Harper: The Government are considering the next steps and the House will be the first to be informed Mr Harper: The Government do not hold this when decisions on the way forward have been reached. information. The Electoral Commission’s March 2010 report on the “Completeness and Accuracy of Electoral Mr Hollobone: To ask the Deputy Prime Minister Registers in Great Britain” makes clear that the process how many prisoners he expects will be enfranchised of estimating registration rates is an under his proposals for prisoner voting. [63696] “imprecise science” and says that Mr Harper: The Government are considering the “all current approaches to estimating the completeness and next steps and will inform the House when decisions on accuracy of the electoral registers at a national level are imperfect”. the way forward have been reached. 1045W Written Answers4 JULY 2011 Written Answers 1046W

Voting Rights: Young people Nick Harvey: I refer the hon. Member to the answer I gave today to the hon. Member for Redditch (Karen Priti Patel: To ask the Deputy Prime Minister what Lumley), the hon. Member for Wolverhampton South his policy is on Resolution 1826 (2011) of the West (Paul Uppal), and the hon. Member for Harlow Parliamentary Assembly for the Council of Europe on (Robert Halfon). the expansion of democracy by lowering the voting age to 16. [62915] Afghanistan: Peacekeeping Operations

Mr Harper: The Government have no current plans Mark Menzies: To ask the Secretary of State for to lower the voting age, but will keep the issue under Defence what recent discussions he has had on plans to review. withdraw troops from Afghanistan. [63377]

Dr Fox: We routinely review UK force levels in DEFENCE Afghanistan and this is something that I regularly discuss with my National Security Council colleagues and military Christmas Island advisers. Future reductions in British forces will take into 20. Jim Sheridan: To ask the Secretary of State for account the conditions on the ground, the advice of Defence what research his Department has evaluated military commanders and be fully discussed at the on the effect on those present of the nuclear tests on National Security Council. Christmas Island. [63153]

Mr Robathan: We closely monitor and evaluate any Armed Forces: Housing research undertaken world wide relating to nuclear test veterans. Mr Jim Murphy: To ask the Secretary of State for In response to potential health concerns raised by Defence how many service personnel changed former service personnel in the UK, the Ministry of residence as a result of service deployment in each of Defence commissioned the National Radiological the last three years. [63355] Protection Board to study mortality and cancer incidence in nuclear test participants and compare it with service Mr Robathan: The number of service personnel who personnel who did not deploy, and the general population. have moved in and out of service family accommodation The last of three studies, completed in 2003, concluded in the UK in each of the last three years is shown in the that overall levels of mortality and cancer incidence in following table. nuclear test veterans have continued to be similar to Calendar year Move ins Move outs those in a matched control group. Overall, mortality rates are lower than expected compared to the national 2009 21,313 20,618 average. 2010 21,344 20,297 2011 (to date) 9,097 9,124 Strategic Defence and Security Review Centrally maintained records do not allow us to 21. Dan Jarvis: To ask the Secretary of State for differentiate between moves occurring as a result of an Defence when he plans to publish the outcomes of his official service posting notice, at an individual’s request, Department’s arrangements for continuous review of or through discharge from the services. The information the strategic defence and security review. [63154] requested could be provided only at disproportionate cost. It is assumed, however, that the majority of moves Dr Fox: Progress against the commitments made in will be related to postings. the SDSR is set out in the monthly updates on the MOD’s business plan, which are published on the MOD’s Moves in and out of private homes are not recorded website. by the Department. Data relating to single living accommodation are not Defence Exports held centrally and could be provided only at disproportionate cost. 22. Nadine Dorries: To ask the Secretary of State for Defence what steps his Department is taking to Armed Forces: Private Education promote defence exports. [63155]

Mr Gerald Howarth: I refer the hon. Member to the Mr Jim Murphy: To ask the Secretary of State for answer I gave today to the hon. Member for Filton and Defence if he will publish his Department’s guidance Bradley Stoke (Jack Lopresti) and the hon. Member for issued to recipients of the continuity education Kingswood (Chris Skidmore). allowance on usage of the allowance. [63357]

Middle East and North Africa Mr Robathan: The guidance on the continuity of education allowance is provided in the Joint Service 23. Mike Freer: To ask the Secretary of State for Publication 752 “Tri-Service Regulations for Allowances” Defence what recent assessment he has made of the which is published on the Defence intranet and is security situation in the middle east and north Africa; already widely available to the armed forces community. and if he will make a statement. [63156] A copy is available in the Library of the House. 1047W Written Answers4 JULY 2011 Written Answers 1048W

Defence Infrastructure Organisation: Manpower Departmental Billing

Angus Robertson: To ask the Secretary of State for Mr Denham: To ask the Secretary of State for Defence if he will estimate the number of people who Defence how many invoices received by his will be employed by his Department’s Defence Department were paid (a) on time and (b) late in each Infrastructure Organisation in (a) Scotland, (b) England, month since May 2010; and what the monetary value (c) Northern Ireland and (d) Wales in 2014. [63069] was of invoices paid late. [62486]

Mr Robathan: Further to the announcements following Mr Robathan: In the period May 2010 to May 2011, the strategic defence and security review, it is currently the volumes paid by the Ministry of Defence in respect not possible to identify the precise future location and of UK invoices, and the monetary values of invoices numbers of people that will be employed by the Defence not paid within 30 days, are as detailed in the following Infrastructure Organisation in 2014. table.

MOD—All UK invoices Period Volume paid within 30 days Volume not paid within 30 days Value not paid within 30 days (£)

2010 May 370,880 637 5,779,921 June 367,855 1,912 11,440,721 July 398,474 1,117 20,389,483 August 367,463 1,799 8,304,861 September 344,140 1,806 28,239,978 October 349,640 1,649 19,108,352 November 370,701 2,562 6,050,466 December 329,290 2,520 10,384,534

2011 January 307,926 1,206 9,410,981 February 364,158 2,222 22,468,243 March 404,811 1,’300 12,576,213 April 359,314 514 3,304,904 May 370,316 592 9,229,080

Departmental Junior Ministers (e) Defence Equipment and Support in each of the next four financial years. [63071] Nicholas Soames: To ask the Secretary of State for Defence for what reasons his Department requires two Dr Fox: The planned spending levels for Navy Command, Permanent Under-Secretaries. [62298] Land Forces, Air Command, Defence Estates and Defence Equipment and Support in each of the next three Mr Robathan [holding answer 27 June 2011]: The financial years are provided in the following table. Figures Secretary of State for Defence published Lord Levene’s have not been provided for 2015-16 as this falls outside report into the structure and management of the Ministry the current spending review settlement. of Defence on 27 June, and endorsed its recommendations. Those recommendations reduce the number of senior The Department will review planned spending for the military and civilian posts in the Department. However, period in question and beyond as part of its routine Lord Levene recommended retaining the Second Permanent planning round 12 process. This will take into account Secretary post—and the Vice Chief of Defence Staff the outcome of a range of work under way, including post—on the basis that, without them, the loading and the three-month exercise. span of control on the Permanent Secretary and the Total departmental expenditure limit Chief of the Defence Staff would be unsustainable. £ million Recognising the amount of change the Department will 2012-13 2013-14 2014-15 be embarking on, Lord Levene also recommended that we take stock of progress after about two years and Navy Command 2,166 2,106 2,060 consider whether the proposed structure and role of the Land Forces 6,587 6,588 6,670 Head Office, including the requirement, role and seniority Air Command 2,559 2,450 2,440 of both the Second Permanent Secretary and the Vice Defence Infrastructure 3,552 3,208 3,005 Chief of Defence Staff remain valid. Organisation Defence Equipment 1,166 1,085 1,035 Departmental Public Expenditure and Support Operating Budget Angus Robertson: To ask the Secretary of State for Note: The figures in the table do not include planned spend on equipment Defence what estimate he has made of near cash procurement and equipment support. These costs are normally spending levels for (a) Navy Command, (b) Land assigned in the annual report and accounts to the Defence Forces, (c) Air Command, (d) Defence Estates and Equipment and Support top level budget. 1049W Written Answers4 JULY 2011 Written Answers 1050W

Angus Robertson: To ask the Secretary of State for Departmental Travel Defence what efficiency savings he expects each top level budget holder in his Department to make in each of the next four financial years. [63072] Maria Eagle: To ask the Secretary of State for Defence how much each Executive agency of his Dr Fox: As I made clear in the statement I made on Department has spent on travel by (a) private hire 27 June 2011, Official Report, columns 634-36, on the vehicles, (b) trains, (c) buses, (d) commercial aircraft report by Lord Levene, I am committed to achieving and (e) private aircraft since May 2010. [56077] further efficiencies in the Ministry of Defence through a range of measures. Top level budget holders have not been allocated specific efficiency targets but they will be Mr Robathan: Information on travel expenditure in responsible for delivering many of these measures, which the categories requested is shown in the following table. will realise significant efficiency savings across the spending The figures represent the cost incurred between 1 May review period. 2010 and 30 April 2011 unless otherwise stated.

£ Agency headcount Private hire Commercial Private Agency (March 2011) vehicles Trains Buses aircraft aircraft

Defence Science and Technology 3,780 1,874,488 902,857 159,596 2,814,234 0 Laboratory Defence Support Group 3,010 915,000 26,000 1— 226,000 0 Defence Vetting Agency 420 14,400 26,183 1— 7,092 0 Met Office 1,860 315,948 485,838 1— 591,733 0 MOD Police and Guarding Agency2 7,320 662,288 107,784 1— 174,096 0 People, Pay and Pensions Agency 880 57,574 67,494 1— 17,719 0 Service Children’s Education 1,120 1— 1— 1— 1— 1— Service Personnel and Veterans Agency 960 1— 1— 1— 1— 1— UK Hydrographic Office 1,000 102,000 73,000 0 955,000 0 1 Not separately identifiable. 2 Period covered is financial year 2010-11 (1 April 2010 to 31 March 2011).

Staff are asked to avoid travelling where the business and (b) the chief executive of each such agency since need can be met in other ways, such as by e-mail and May 2010. [56175] video conferencing. This both saves cost and increases the productivity of staff by reducing time spent travelling. Mr Robathan: Expenditure incurred by the Ministry Where travelling is unavoidable, staff must do so in a of Defence’s Executive agencies on travel and subsistence way that is most economical in both money and official since May 2010 is shown in the following table. The time. figures cover expenditure on air travel, rail travel, car rental, use of a private vehicle on official duty, public Maria Eagle: To ask the Secretary of State for transport fares, overnight accommodation, subsistence Defence how much has been spent on travel in respect and travel-related costs such as parking charges and of (a) each of his Department’s Executive agencies road tolls.

Agency headcount Total travel and subsistence Travel and subsistence by the Agency (March 2011) expenditure (£) chief executive (£)

Defence Science and Technology Laboratory 3,780 7,125,321 17,067 Defence Support Group 3,010 2,325,000 133,000 Defence Vetting Agency 420 534,928 7,908 Met Office 1,860 3,557,807 29,626 MOD Police and Guarding Agency3 7,320 944,169 2,443 People, Pay and Pensions Agency 880 341,700 46,773 Service Children’s Education 1,120 1,556,018 516,406 Service Personnel and Veterans Agency 960 819,603 11,831 UK Hydrographic Office 1,000 1,514,000 669,000 1 DSG chief executive’s expenses reflect the cost of travelling between 14 DSG sites across the UK. 2 The figure disclosed also covers travel and subsistence incurred as the UK representative to the World Meteorological Organisation and other international bodies. 3 Figures are for financial year 2010-11. 4 The chief executive of PPPA’s travel costs also relates to his other Defence business services and next generation human resources responsibilities. 5 The chief executive is also the director for Children and Young People. The figure disclosed covers both roles. 6 The chief executive of UK Hydrographic Office’s costs also relate to his involvement with international hydrographic bodies. 1051W Written Answers4 JULY 2011 Written Answers 1052W

The level of expenses incurred by individual agencies Army rank and chief executives is mainly influenced by the nature Organisation NATO rank equivalent Total of their role, for example, the scale of their international commitments. OR-9 Warrant Officer 2 Class 1 Ex-servicemen OR-8 Warrant Officer 7 Class 2 Mr David Hamilton: To ask the Secretary of State for OR-7 Staff Sergeant 6 Defence what steps he is taking to increase the OR-6 Sergeant 13 monitoring of the welfare of veterans. [63145] OR-4 Corporal 2 Mr Robathan: The welfare of veterans is the responsibility OR-3 Lance-Corporal 4 of Government as a whole and therefore many Departments OR-2 Private 1 are involved in its monitoring. The Armed Forces Covenant Sub-total 130 stresses the importance we place on ensuring that veterans are not disadvantaged as a result of their service in the NATO command OF-9 General 1 armed forces. The proposed annual report to Parliament structure will highlight the progress that has been made and OF-8 Lieutenant- 4 where there is scope for improvement. General OF-7 Major-General 7 Joint Force Command OF-6 Brigadier 4 Oliver Heald: To ask the Secretary of State for Defence OF-5 Colonel 31 pursuant to the statement of 27 June 2011, Official OF-4 Lieutenant- 186 Report, columns 634-44, on defence reform, whether he Colonel has made an estimate of the number of injured service OF-3 Major 134 personnel who would be employed in the Joint Force OF-2 Captain 44 Command; what roles such personnel would perform; OR-9 Warrant Officer 33 and if he will make a statement. [63125] Class 1 OR-8 Warrant Officer 38 Mr Robathan: All three services retain injured personnel, Class 2 if they wish to stay, for as long as it is judged to be in the OR-7 Staff Sergeant 110 interest of the individual and the service. It is too OR-6 Sergeant 193 early to estimate how many injured service personnel OR-4 Corporal 81 might be employed in Joint Forces Command or what OR-3 Lance Corporal 10 they might do. OR-2 Private 7 NATO: Armed Forces Sub-total 883 Nicholas Soames: To ask the Secretary of State for Total 1,013 Defence how many British servicemen and women of each rank and duty are on secondment to NATO. Nuclear Submarines [61944] Caroline Lucas: To ask the Secretary of State for Mr Gerald Howarth: The following table shows the Defence when the number of warheads deployed on total by rank of all the UK-assigned posts within each Vanguard class submarine will be reduced to no NATO’s peacetime command structure and the more than 40; when the stockpile of operationally complementary force structure. This includes inter alia available warheads will be reduced to no more than multinational high-readiness force headquarters located 120; and when warheads which have been removed overseas, centres of excellence, and similar organisations from the operation stockpile will be dismantled. [20822] as well as UK personnel attached to NATO agencies. The figures exclude operational deployments, and the Dr Fox: I will write to the hon. Member. short-term augmentation of NATO structures, which Substantive answer from Liam Fox to Caroline Lucas: are not normally recognised as secondments. The figures I undertook to write to you in response to your Parliamentary reflect contributions from all three services but for the Question on 20 December 2010 (Official Report, column 992W) sake of simplicity are expressed using Army rank about the timescales for the reduction in the number of operationally equivalents. available warheads and their eventual dismantlement. I apologise for the delay in responding but it was necessary to Army rank undertake some work to implement the first stage of this process Organisation NATO rank equivalent Total before I was in a position to respond to your question. In addition, can I draw your attention to the Statement I made on NATO force structure, OF-7 Major-General 2 agencies and other 29 June 2011 (Official Report, column 51 WS). appointments The Strategic Defence and Security Review (SDSR) announced OF-6 Brigadier 3 a reduction in the scale of the UK nuclear deterrent. The programme OF-5 Colonel 13 to implement the reductions in the number of deployed warheads has now commenced on our fleet of VANGUARD class ballistic OF-4 Lieutenant- 46 missile submarines. On current estimates, the reduction in operationally Colonel available warheads will be completed within this Parliament. Our OF-3 Major 26 expectation is that the programme for dismantling warheads OF-2 Captain 5 removed from the operational stockpile will be completed within the timeframe set by the SDSR of the mid 2020s. 1053W Written Answers4 JULY 2011 Written Answers 1054W

Nuclear Weapons Dr Fox: The budget headings against which the net additional costs for Operation Ellamy—the United Angus Robertson: To ask the Secretary of State for Kingdom’s contribution to coalition operations in support Defence when he expects the logistics plan for implementing of United Nations Security Council Resolution 1973—have the reduction in nuclear weapons numbers announced been assigned to date are: in the strategic defence and security review to be completed; Personnel when it is intended to commence the return of warheads to Infrastructure the Atomic Weapons Establishment for decommissioning; Inventory/Other Consumption and when the reduction in stockpile size will be complete. Equipment Support Costs [47825] Other Costs Dr Fox: I will write to the hon. Member. Depreciation Fiscal Capital Departmental Expenditure Limit (CDEL). Substantive answer from Liam Fox to Angus Robertson: The current estimate of the net additional costs of I undertook to write to you in response to your Parliamentary Question on 23 March 2011 (Official Report, column 1125W) military operations for six months in support of Operation about the timescales for the reduction in the number of operationally Ellamy is in the region of £120 million. This excludes available warheads and their eventual dismantlement. costs associated with capital munitions expended. I apologise for the delay in responding but it was necessary to Based upon current consumption rates we estimate undertake some work to implement the first stage of this process the cost of replenishing munitions may be up to £140 before I was in a position to respond to your question. In million. addition, can I draw your attention to the Statement I made on 29 June 2011 (Official Report, column 51 WS). The Treasury has agreed to meet these costs from the Reserve. The Strategic Defence and Security Review (SDSR) announced a reduction in the scale of the UK nuclear deterrent. The programme War Pensions: Tribunals to implement the reductions in the number of deployed warheads has now commenced on our fleet of VANGUARD class ballistic missile submarines. On current estimates, the reduction in operationally Jim Sheridan: To ask the Secretary of State for Defence available warheads will be completed within this Parliament. Our how much his Department spent on (a) solicitors, (b) expectation is that the programme for dismantling warheads barristers, (c) experts and (d) other costs in respect of removed from the operational stockpile will be completed within ionising appeals heard at the war pensions tribunals. the timeframe set by the SDSR of the mid 2020s. [63692]

Trident Mr Robathan: I refer the hon. Member to the answer I gave to the hon. Member for Dunfermline and West Mr Mike Hancock: To ask the Secretary of State for Fife (Thomas Docherty) on 2 December 2010, Official Defence what alternatives his Department has Report, column 998W. Up-to-date figures are currently considered to the nuclear deterrent. [60386] being compiled and I will write to the hon. Member when this is complete. Dr Fox: Prior to the publication of the 2006 White Paper, The Future of the United Kingdom’s Nuclear Deterrent (Cm 6994), Ministry of Defence officials undertook a full review of the widest possible range of HEALTH options to replace the UK’s nuclear deterrent capability. Alcoholic Drinks and Drugs: Rehabilitation A detailed assessment process to narrow the range of options under consideration to the four generic options reported in the White Paper was then used. Mark Menzies: To ask the Secretary of State for Health what steps his Department has taken to support The parliamentary debate on 14 March 2007, Official alcohol and drug rehabilitation centres; and if he will Report, columns 298-407, subsequently endorsed the make a statement. [63376] conclusions made in the White Paper that the most cost-effective deterrent system was a further class of Anne Milton: In the Government’s drug strategy, submarines carrying ballistic missiles. which we published in December 2010, we highlighted To support the agreement made in the Coalition the need for local areas to build close links between programme for government, that the Lib Dems will residential rehabilitation and other services when continue to make the case for alternatives, work is under commissioning support to help people recover from way in the Cabinet Office to explore the costs, feasibility dependence on drugs and alcohol. In a series of initiatives and credibility of alternative systems. This work will funded by the Department, the National Treatment report to the Prime Minister and Deputy Prime Minister Agency for Substance Misuse (NTA) has: in approximately 18 months time. allocated over £65 million since 2007-08 for capital projects to improve the provision of rehabilitation facilities; UN Security Council launched Rehab Online, a web-based directory of residential services in 2010; and George Freeman: To ask the Secretary of State for held a series of regional events in 2011 to raise the profile of Defence under which budget headings expenditure to such services. date on enforcing UN Security Council Resolution Later this year, the NTA will be responding to the 1973 has fallen; what estimate he has made of the consultation on ‘Building Recovery in Communities’ by future cost of military action; and if he will make a publishing updated advice on models of care for people statement. [62870] dependent on drugs and alcohol. 1055W Written Answers4 JULY 2011 Written Answers 1056W

We are working with eight pilot sites to explore a 2009-10: payment by results scheme which will reward recovery www.dft.gov.uk/press/speechesstatements/statements/ from dependency and which will give good services a hammond20101028a chance to demonstrate their capabilities. Details of the costs for 2010-11 are being compiled and are due for release in July 2011. Cord Blood Information prior to 2005 is not available and could Mr Brine: To ask the Secretary of State for Health be obtained only at disproportionate cost. (1) what steps his Department is taking to encourage Information relating to individual ministerial car journeys mothers to donate stem cell blood from umbilical cords prior to September 2010 is not available as there was no after childbirth; [63406] requirement to collect these data. (2) whether he has considered the merits of Information relating to the number of ministerial car increasing the number of NHS hospitals where stem journeys made since the introduction of the ‘on-demand’ cell blood from umbilical cords can be collected as part ministerial car service on 6 September 2010 and up until of the cord blood bank. [63407] 31 March 2011 is set out in the following table.

Anne Milton: On 1 December 2010, the UK Stem Month and year Number of journeys Cell Strategic Forum, led by NHS Blood and Transplant produced a report, “The Future of Unrelated Donor 2010 Stem Cell Transplantation in the UK” (copies of which September 67 have already been placed in the Library). The report October 75 contained 20 recommendations to improve the provision November 105 and use of unrelated stem cells. The Department has December 69 allocated an additional £4 million in this financial year 2011 to begin the implementation of the report’s January 83 recommendations. February 71 March 122 Departmental Carbon Emissions Total 592 Huw Irranca-Davies: To ask the Secretary of State Ministers are committed to using other forms of for Health whether his Department has any plans to transport where practical, including public transport, generate low-carbon energy from its estate. [63319] while travelling on official Government business. In line with the new Ministerial Code, all Ministers at the Mr Simon Burns: We currently have no immediate Department have given up their allocated cars and plans to generate low-carbon energy from the Department’s drivers. estate. However the position will be kept under review. Health Services: Learning Disability Departmental Official Cars Chris Williamson: To ask the Secretary of State for Stephen Williams: To ask the Secretary of State for Health what his policy is on the attendance by advocates Health what the cost to his Department was of the or family members at strategy meetings for patients provision of ministerial cars in each financial year with severe learning disabilities. [63010] between 2000-01 and 2010-11; how many (a) cars for the exclusive use of Ministers and (b) ministerial car Paul Burstow: It is Government policy that the public journeys were paid for by his Department in each such sector should work closely with family members, carers year; what the average cost to his Department of a and advocates of people with severe learning disabilities. ministerial car journey was in each such year; and what However, this policy does not prescribe which meetings steps his Department has taken to reduce the cost of they can and should attend which is a matter of professional ministerial cars since his appointment. [62993] judgement and of negotiation with the family and the advocates. Mr Simon Burns: Information on the cost and number of ministerial cars is published annually by written Maternity Services ministerial statement, details of which have already been placed in the Library. This information can also be Bridget Phillipson: To ask the Secretary of State for found at: Health what guidance he has issued to the NHS on the 2005-06: (a) establishment, (b) role and remit and (c) relationship www.publications.parliament.uk/pa/cm200607/cmhansrd/ with existing neonatal networks of new maternity networks. cm070726/wmstext/70726m0004.htm [63074] 2006-07: Anne Milton: In the White Paper “Excellence and www.publications.parliament.uk/pa/cm200607/cmhansrd/ Equity: Liberating the NHS” we made a commitment cm070726/wmstext/70726m0004.htm to extend maternity choice through maternity provider 2007-08: networks. We want provider networks to cover all the www.publications.parliament.uk/pa/cm200708/cmhansrd/ maternity services a mother may need throughout cm080722/wmstext/80722m0008.htm pregnancy, birth and post-natally, including arrangements 2008-09: to access services that may not be available locally, www.publications.parliament.uk/pa/cm200809/cmhansrd/ ensuring that the transitions between individual carers cm090716/wmstext/90716m0009.htm or organisations are as seamless as possible. 1057W Written Answers4 JULY 2011 Written Answers 1058W

In its report “Clinical advice and leadership”, 13 June, This includes basic pay, additional earnings such as the NHS Future Forum recommended embedding networks geographical allowances and payments for additional at all levels of the new system with further work to hours worked, employer national insurance contributions define them and review their range, function and and employer pension contributions. effectiveness. In the “Government response to the NHS Standard full-time hours are 40 hours per week for Future Forum report”, 20 June, we agreed to retain and medical staff and 37.5 hours per week for non-medical strengthen existing networks so that they cover many staff on Agenda for Change contracts but, as the estimated more areas of specialist care, and to give them a stronger paybill per FTE includes payments for additional hours role in commissioning in support of the NHS worked, using these standard contract hours to convert Commissioning Board and local clinical commissioning the estimate provided into a value per hour would lead groups. to an overestimate. Networks may look different in different geographical areas as they seek to meet local needs and circumstances. Ophthalmology It will be for the providers to agree network arrangements, including links with neonatal networks, and any support Mr Blunkett: To ask the Secretary of State for Health or management structures that they might want to what steps he is taking to review the regulatory adopt, and to identify how these could be resourced framework relating to premises used by opticians and including any efficiency gains that might cover the optometrists and their equipment and facilities. [63195] costs. Mental Health Services Mr Simon Burns: There are no plans to review the regulatory framework requiring contractors to have Oliver Heald: To ask the Secretary of State for suitable practice premises, equipment and facilities to Health if he will assess the performance of emergency enable them to provide national health service sight outreach teams for mental health based at (a) tests. Fulbourn hospital and (b) other hospitals; and if he Currently NHS primary care trusts hold contracts will make a statement. [63008] with providers of NHS sight tests. In future, we propose that the NHS Commissioning Board will hold contracts Paul Burstow: It is not the role of the Department to for the NHS sight testing service and we anticipate the assess the performance of individual clinical teams. requirement for suitable premises, equipment and facilities This is a matter for local commissioners. However, will remain. nationally, Crisis Resolution Home Treatment teams, which deal with patients in need of urgent care, carried Organs: Donors out 131,452 home treatments in 2010-11 and 127, 396 home treatments in 2009-10. Stephen Metcalfe: To ask the Secretary of State for NHS: Pay Health what proportion of people (a) in South Basildon and East Thurrock constituency and (b) nationally are on the NHS organ donor register. John Healey: To ask the Secretary of State for Health [62843] if he will estimate the average hourly cost of employing a member of staff in the NHS. [62823] Anne Milton: As at 20 June 2011, 18,072 million people (29% of the United Kingdom population) are Mr Simon Burns: Comprehensive validated data to currently on the organ donor register, of whom 25,445 make this estimate are not held centrally. are from the South Basildon and East Thurrock area. However, an estimate can be provided of the average paybill cost per full-time equivalent (FTE) member of Stephen Metcalfe: To ask the Secretary of State for staff in the Hospital and Community Health Service Health how many patients in South Basildon and East (HCHS) NHS work force. This does not include general Thurrock constituency were assessed as needing an practitioners or their practice staff. organ transplant in each of the last five years. [62865] In 2009-10, the estimated average paybill per FTE member of staff in the HCHS work force was £39,000. Mr Simon Burns: The information is provided in the This is the latest estimate available. following table:

South Basildon and East Thurrock solid organ transplant statistics, by financial year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Number on waiting list at the start of the year 12 11 8877 New recipient registrations 4 3 8 4 4 — Source: NHS Blood and Transplant

Stephen Metcalfe: To ask the Secretary of State for Anne Milton: The information is provided in the Health how many (a) children and (b) adults in South following table. Basildon and East Thurrock constituency died while waiting for an organ transplant in each of the last five years. [62866] 1059W Written Answers4 JULY 2011 Written Answers 1060W

South Basildon and East Thurrock solid organ transplant statistics, by Table 2: Number of benzodiazepine prescription items written in the financial year UK and dispensed in the community in England in the year 2010, Died on the list1 classified as antiepileptic drugs in British National Formulary (BNF) section 4.8.1 2006-07 1 BNF chemical name Prescriptions items (thousand) 2007-08 1 Total for BNF Section 4.8 854.3 2008-09 1 1 Oromucosal Hydrochloride pre-filled syringes—a new classification 2009-10 1 from the second quarter of 2010. 2010-11 2 Source: 2011-12 — Prescription Cost Analysis (PCA) system 1 AII that died were adults (aged 18 or older). Table 3: Number of benzodiazepine prescription items written in the Source: UK and dispensed in the community in England in the year 2010, NHS Blood and Transplant classified as anaesthesia drugs in British National Formulary (BNF) section 15.1.4 Stephen Metcalfe: To ask the Secretary of State for BNF chemical name Prescription items (thousand) Health which schools in South Basildon and East Thurrock Midazolam Hydrochloride 83.1 constituency use NHS Blood and Transplant’s Give and Let Live educational resource on organ donation. Total for BNF Section 15.1 83.1 Source: [62867] Prescription Cost Analysis (PCA) system Table 4. Number of “Z-drugs” prescription items written in the UK Anne Milton: Three schools in the South Basildon and dispensed in the community in England in the year 2010, classified and East Thurrock area have requested the Give and as Antidepressant drugs in British National Formulary (BNF) section Let Live pack. These are: 4.1 Hassenbrook School; BNF Chemical name Number of items (thousand) Gable Hall School; and Zaleplon 9.4 Basildon Upper Academy. Zolpidem Tartrate 733.0 Zopiclone 5,295.8 Prescription Drugs Total for “Z-drugs” 6,038.2 Source: Eric Ollerenshaw: To ask the Secretary of State for Prescription Cost Analysis (PCA) system Health how many prescriptions were issued for each Prescription Drugs: Misuse (a) benzodiazepine and (b) z drug tranquilliser in 2010-11. [62809] Jim Dobbin: To ask the Secretary of State for Health Mr Simon Burns: The number of prescription items for what reason (a) patient groups and (b) charitable dispensed, for the latest available 12 month period, is and not-for-profit groups were not consulted as part of shown in the following tables. Data for the first quarter the recent reviews by the National Addiction Centre of 2011 are not currently available, therefore figures and the National Treatment Agency for Substance quoted are for the calendar year 2010. Misuse on addiction to prescribed drugs and over-the- counter medicines. [63676] Table 1: Number of benzodiazepine prescription items written in the United Kingdom and dispensed in the community in England in the year 2010, classified as hypnotics and anxiolytics in British National Anne Milton: I refer the hon. Member to the written Formulary (BNF) Section 4.1.1 and 4.1.2 answer I gave him on 28 June 2011, Official Report, BNF chemical name Prescription items (thousand) column 780W.

Alprazolam 1— Radiotherapy Chlordiazepoxide Hydrochloride 213.9 Diazepam 5,148.4 Tim Farron: To ask the Secretary of State for Health Flurazepam Hydrochloride 1— what his policy is on the implementation of the Loprazolam Mesilate 88.6 recommendations of the 2007 National Radiotherapy Lorazepam 968.3 Advisory Group report in respect of (a) equality of access Lormetazepam 60.5 to treatment and (b) maximum travel times for cancer Nitrazepam 1,035.2 patients to receive radiotherapy treatment. [63263] Oxazepam 164.8 Temazepam 2,814.0 Paul Burstow: The National Radiotherapy Advisory Total for BNF Section 4.1 10,493.7 Group (NRAG) report, “Radiotherapy: developing a 1 Less than 50 prescription items dispensed. world class service for England”, published in 2007, Source: recommended that, in order to improve equality of Prescription Cost Analysis (PCA) system access to treatment, there would need to be additional Table 2: Number of benzodiazepine prescription items written in the investment in staff and equipment and better use made UK and dispensed in the community in England in the year 2010, of existing capacity.The NRAG report also recommended classified as antiepileptic drugs in British National Formulary (BNF) that, where possible, patients should not travel more section 4.8.1 than 45 minutes for radiotherapy treatment. BNF chemical name Prescriptions items (thousand) We know that, whilst radiotherapy capacity has increased, Clobazam 185.8 demand has not increased at the rate previously predicted, Clonazepam 629.1 and that there remain variations in activity across the Midazolam 39.1 country. “Improving Outcomes: A Strategy for Cancer” Midazolam Hydrochloride 1 0.3 sets out our commitment to improve equality of access 1061W Written Answers4 JULY 2011 Written Answers 1062W to radiotherapy by investing over £150 million in additional graded into four bands—critical; substantial; moderate funding over the next four years. This will support and low. A copy of the guidance has already been increased utilisation of existing equipment, establish placed in the Library. new services to increase capacity in some areas and On 11 May 2011, the Association of Directors of ensure that all high priority patients with a need for Adult Social Services published a survey that indicated proton beam therapy treatment get access to it abroad. that 13% (19) councils had changed their eligibility The “NHS Operating Framework 2011-12” states criteria between 2010-11 and 2011-12. According to the that the national health service is expected to implement survey, there are now 78% (116) councils at substantial, the new cancer strategy and that commissioners should 15% (22) at moderate, 3% (four) at low and 4% (six) at develop plans to ensure that local populations have critical. appropriate access to radiotherapy treatment.

Respite Care: Finance Social Services: Finance

Oliver Heald: To ask the Secretary of State for Barbara Keeley: To ask the Secretary of State for Health pursuant to the answer of 21 June 2011, Official Health (1) what steps his Department takes to monitor Report, column 252W, on carers: Hertfordshire, whether the expenditure of funding allocated to local whether his Department monitors expenditure from authorities for social care in 2011-12 (a) has been and carers’ budgets to ensure that funding provided for (b) is to be spent on social care services; and if he will respite breaks is spent for that purpose; and if he will make a statement; [63103] make a statement. [63004] (2) how much funding the NHS (a) provided for social care in 2010-11 and (b) plans to provide for Paul Burstow: The Department does not formally social care in 2011-12; and what steps his Department monitor expenditure on respite breaks for carers. plans to take to monitor whether such funding is spent However, the ‘2011-12 NHS Operating Framework’, as intended; [63104] published on 15 December 2010, makes it clear that: (3) how much of the funding for social care “PCTs should pool budgets with local authorities to provide announced in the comprehensive spending review has carers’ breaks, as far as possible, via direct payments or personal been allocated to each local authority in England; and health budgets. For 2011/12, PCTs should agree policies, plans how much funding so allocated (a) has been spent and and budgets to support carers with local authorities and local carers’ organisations, and make them available to local people.” (b) is intended to be spent on social care provision. [63105] Strategic health authorities (SHAs) will remain accountable for operational delivery and for leading the Paul Burstow: The additional funding for social care transition across their region in 2011-12. They will hold has been allocated in two distinct ways, through formula primary care trusts (PCTs) to account for the delivery grant to local authorities and from the national health of the requirements set out in the NHS Operating service to local authorities. Framework both in terms of service delivery and transition to the new arrangements. In 2011-12, an additional £530 million was allocated In order to support transparency and local accountability, to local government in addition to existing departmental the Department plans to seek written confirmation grants for social care. In order to support local flexibility from all SHAs when plans have been published by PCTs and to reduce administrative burdens, this funding was on the specific areas outlined as a requirement in the allocated to local authorities through the local government Operating Framework, including services to support formula grant. Formula grant is not hypothecated for carers. different services and it is therefore not possible to determine how much of the additional funding through local government has been allocated for social care. Social Services However, we do receive local authorities’ budgeted spend on adult social care through the revenue accounts data Barbara Keeley: To ask the Secretary of State for returns in June of each year. This data is publicly Health (1) how many local authorities have (a) available. changed and (b) given notice of a change to eligibility In addition to funding through formula grant, the criteria for social care in the last six months; [62798] Government provided a specific allocation of £648 million (2) what steps his Department takes to monitor to primary care trusts (PCTs) for 2011-12 for measures changes to local authority social care eligibility criteria. that support social care, which also benefit health. As [62799] part of our planning and assurance processes for 2011-12, we are holding strategic health authorities (SHA) to Paul Burstow: There has been no change in the account for ensuring that arrangements are in place Department’s long standing position that it does not between local authorities and PCTs for the funding to formally monitor changes to local authority social care be transferred and objectives for the investment agreed. eligibility criteria. Allocations of resources at a local Local authorities (LAs) and the NHS have been level is the responsibility of local authorities who are working together to agree how this funding should be best placed to understand the needs of their community. best used to support social care services. NHS planning Councils should use the framework set out in the assurance showed that all SHAs had confirmed there guidance ‘Prioritising need in the context of Putting were local plans in place to agree the transfer. We will People First: A whole system approach to eligibility for continue to get information on the progress of the social care’, to draw up local eligibility criteria. This is money as the NHS financial reporting year progresses. 1063W Written Answers4 JULY 2011 Written Answers 1064W

In addition to this funding, the Government allocated Gregory Barker: A wide range of products and appliances £150 million to PCTs in 2011-12 to develop local have historically been eligible for delivery under the re-ablement services in the context of the post-discharge Carbon Emissions Reduction Target (CERT). These support plans submitted to SHAs last December. It is include lighting measures such as CFLs and LED lighting; for PCTs and LAs locally to agree the plans for this consumer electronics, such as some televisions and radios; funding. domestic appliances, such as some fridges, microwaves In 2010-11, by making efficiency savings to central and dishwashers; and other energy efficient products, programmes, the Department made available an extra such as shower regulators and real time displays. Following £162 million to local health and care services to spend an earlier public consultation, the Government took in 2010-11 on front-line services. In addition, £70 million action to exclude CFLs from the scheme as from 31 was made available for re-ablement services in 2010-11. March this year. A further public consultation on the role of the remaining products and appliances closed in The breakdown of the £162 million 2010-11 and £648 January.We are currently considering the evidence received million 2011-12 allocations to PCTs for social care can and expect to publish a response to this consultation be found in the Library. shortly. Tuberculosis: Drugs Carbon Emissions: Northern Ireland Michael Connarty: To ask the Secretary of State for Health how many patients (a) completed and (b) were Naomi Long: To ask the Secretary of State for Energy unable to complete due to unavailability of drugs and Climate Change what assessment his Department treatment for drug (i) susceptible and (ii) resistant has made of the effects of the introduction of a carbon tuberculosis in each of the last five years. [63295] price floor on Northern Ireland energy producers who are part of the All Ireland Energy Market. [59146] Anne Milton: The information is not available in the format requested. The latest available information on Justine Greening: I have been asked to reply. treatment completion for tuberculosis (TB), as collated The carbon price floor is a UK-wide policy, which by the Health Protection Agency, is shown in the following will drive new investment in low-carbon technologies table. across the country. Number and proportion of TB cases completing treatment within 12 The Government had discussions with the Northern months, United Kingdom 2004-08 Ireland Executive during the consultation and are Completed treatment continuing to work with Northern Ireland Executive to Cases reported Number Percentage monitor potential interactions with the Single Electricity 2004 6,903 5,464 79.2 Market and Northern Ireland’s commitment to higher 2005 7,566 5,976 79.0 levels of investment in renewable electricity generation. 2006 7,917 6,266 79.1 2007 8,068 6,524 80.9 Carbon Sequestration 2008 8,152 6,618 81.2 Notes: Huw Irranca-Davies: To ask the Secretary of State 1. TB surveillance data are currently available up to 2009. Because for Energy and Climate Change when he expects to treatment outcomes are obtained 12 months after start of treatment, these are only currently available up to 2008. publish his decision on the first carbon capture and 2. Reasons for non-completion of treatment may include, for example, storage project. [63274] continuing treatment, the death of the patient (which is not necessarily related to TB) and loss to follow-up (including patients who have Charles Hendry: Negotiations with the Scottish Power moved abroad). consortium on the UK’s first carbon capture and storage demonstration project are ongoing, with the aim of reaching an agreement as soon as possible. ENERGY AND CLIMATE CHANGE Carbon Emissions Huw Irranca-Davies: To ask the Secretary of State for Energy and Climate Change when he expects a Huw Irranca-Davies: To ask the Secretary of State decision to be made on EU funding for UK carbon for Energy and Climate Change pursuant to the answer capture and storage projects. [63315] of 20 June 2011, Official Report, column 123W, on departmental carbon emissions, when he plans to Charles Hendry: EU funding for UK carbon capture explore the feasibility of generating low carbon energy and storage (CCS) projects will be provided through a on his departmental estate. [63420] funding mechanism financed from the sale of 300 million EU emissions allowances that are ring fenced in the new Gregory Barker: We are planning to explore the feasibility entrant reserve in phase 3 of the EU Emissions Trading of generating low carbon energy from the DECC estate Scheme. The process for selecting projects to benefit in the course of this financial year. from the first tranche of funding (raised from the sale of Carbon Emissions: Housing 200 million of the ring-fenced allowances) is under way and the European Commission has stated that it expects Stephen Mosley: To ask the Secretary of State for to make award decisions in the second half of 2012. Energy and Climate Change what consideration he has Timing for the selection process and award decisions given to the merits of including lighting and appliances relating to the second tranche of funding have not yet in the Carbon Emissions Reduction Target. [64010] been published by the European Commission. 1065W Written Answers4 JULY 2011 Written Answers 1066W

Huw Irranca-Davies: To ask the Secretary of State There is considerable work underway now to develop for Energy and Climate Change what recent and assess options under each of the workstreams, discussions he has had with his EU counterparts on the managed by a programme of Transitional Committee development of carbon capture and storage. [63316] meetings and technical workshops. The timetable for developing its recommendations is Charles Hendry: The subject of CCS development is challenging. However, I hope the Transitional Committee regularly raised in conversations that the Secretary of will be in a position to make its recommendations at the State for Energy and Climate Change, my right hon. UNFCCC meeting in Durban at the end of this year, as Friend the Member for Eastleigh (Chris Huhne), and I set out in the Cancun agreement. have with our EU counterparts. My officials also have regular conversations with their counterparts and participate Mr Tom Clarke: To ask the Secretary of State for in a number of CCS related EU for a including the CCS Energy and Climate Change what steps his Department European Industrial Initiative, the European CCS intends to take to meet its commitments on climate Demonstration Project Network Advisory Forum and finance after 2014. [63416] the Zero Emissions Platform Government Group.

Huw Irranca-Davies: To ask the Secretary of State for Gregory Barker: The 2010 spending review provides a Energy and Climate Change what recent discussions he total of £2.9 billion of international climate finance to has had held with industry representatives on the 2014-15 making the UK one of the few countries to development of carbon capture and storage in the UK. commit climate finance beyond the fast start period [63317] (2010-12). Climate finance commitments after 2014-15 will be determined during the next spending review. Charles Hendry: The Secretary of State and I have In the longer term, the Government are fully behind regular discussions with industry representatives on the the goal to mobilise $100 billion of public and private development of CCS, including through the biannual finance by 2020 to help developing countries tackle CCS Development Forum which I chair, our annual climate change. We are working with our international CCS senior stakeholder conference, bilateral meetings partners through the. UNFCCC, the G20, the International and attendance at events such as the Carbon Capture Maritime Organisation and other forums to deliver the and Storage Association’s reception last month. long-term sources of climate finance necessary to meet My ministerial colleagues are of course in regular this goal. Through the Capital Markets Climate Initiative discussions with the Scottish Power Consortium as part we are also working to catalyse private finance flows to of the negotiations for the UK’s first carbon capture developing countries. and storage demonstration project. In addition, my officials are in close contact with Mr Tom Clarke: To ask the Secretary of State for industry representatives on all aspects of CCS. Energy and Climate Change whether the Government plans to channel all or part of the monies allocated for Huw Irranca-Davies: To ask the Secretary of State for international climate finance through the Green Energy and Climate Change what recent discussions he Climate Fund. [63417] has had with the Chancellor of the Exchequer on funding for carbon capture and storage projects. [63318] Gregory Barker: The spending review provides a total of £2.9 billion in international climate finance—the Charles Hendry: There are regular discussions at International Climate Fund (ICF)—over the spending ministerial level between the Department and HM Treasury review period. on the question of funding for carbon capture and We will consider the size of a potential UK contribution storage (CCS) projects. This includes discussions on the to the Green Climate Fund following the design of the funding for the first commercial-scale CCS demonstration fund and a full evaluation against ICF objectives. project, the use of general taxation to fund further demonstration projects and the impact on CCS projects Departmental Freedom of Information of the proposed electricity market reforms. In addition, my officials hold regular detailed discussions with their counterparts on these issues. Chris Ruane: To ask the Secretary of State for Energy and Climate Change how many requests under the Climate Change: Finance provisions of the Freedom of Information Act 2000 his Department received from (a) hon. Members from each political party and (b) members of the public in Mr Tom Clarke: To ask the Secretary of State for each year since the Act’s entry into force. [63582] Energy and Climate Change what assessment he has made of the progress made by the UNFCCC’s Transitional Committee for the design of the Green Climate Fund; Gregory Barker: The Department does not collect and what progress he expects the Transitional Committee detailed statistics about the background of individual to have made by the Climate Summit in Durban. [63415] requesters or the political party affiliations of Members of Parliament. This is because the Freedom of Information Gregory Barker: The UK is a member of the Transitional Act is applicant and motive blind and therefore it is not Committee and has participated actively in its first necessary to record or determine this information. meeting. The Transitional Committee has established The Department of Energy and Climate Change was workstreams covering the key areas for decision including formed on 3 October 2008 and statistics exist for then guiding principles, governance and operating modalities. onwards as follows: 1067W Written Answers4 JULY 2011 Written Answers 1068W

From 3 October 2008 to 31 December 2008 inclusive no of UK national security issues as members of the requests under the Freedom of Information Act 2000 were received National Security Council, including in the context of from MPs while 16 requests were received from members of the the strategic defence and security review. DECC and public. MOD officials have had broad discussions on the possible During 2009 one request was received from an MP and 109 requests implications of cuts for energy security, including at the were received from members of the public. International Energy Security Committee. During 2010 14 requests were received from MPs and 306 requests were received from members of the public. Energy: Housing From 1 January 2011 to 31 March 2011 inclusive three requests were received from MPs and 65 requests were received from members of the public. Stephen Mosley: To ask the Secretary of State for The Ministry of Justice publishes quarterly and annual Energy and Climate Change what his policy is on the statistics on the volume, timeliness and outcome of inclusion of voltage optimisation technologies in the information requests received by over 40 central Green Deal. [63225] Government bodies. Statistics from 1 April have yet to be published as Gregory Barker: The Green Deal will cover a broad part of the Ministry of Justice’s quarterly statistics. range of measures, and eligibility for Green Deal finance Under the Official Statistics Code of Practice, we cannot will ultimately be determined by whether the measures release statistics for a time period prior to their appearance have the potential to pay for themselves through fuel in a regular statistical report. Statistics for April 2011 bill savings. onwards will be collated and published in due course. DECC is currently reviewing evidence relating to the These figures may not represent all Freedom of performance of voltage optimisation technologies and Information requests from MPs as we may only record will clarify the position in the public consultation in those that are clearly stated as being from an MP. autumn 2011. This information may include data on routine information requests that are not included in the Ministry Energy: Prices of Justice’s published statistics on freedom of information implementation in central Government, for instance Mr Thomas: To ask the Secretary of State for Energy where all the requested information is already published and Climate Change how many meetings he had with and reasonably accessible to the applicant. (a) EDF, (b) Scottish Power, (c) Scottish and Southern Energy and (d) E.ON UK Ltd to discuss energy prices Electricity: Northern Ireland in (i) January, (ii) February, (iii) March, (iv) April and (v) May 2011; and if he will make a statement. [63593] Mr Gregory Campbell: To ask the Secretary of State for Energy and Climate Change whether the Electricity Charles Hendry: DECC Ministers and officials meet White Paper will include proposals to ensure that power with energy suppliers on a regular basis to discuss generators in Northern Ireland are not disadvantaged market issues. by the introduction of a carbon floor price. [63552] Consumers deserve the best possible deal, which means rough and tough competition in the marketplace. We Charles Hendry: Government are actively working are cutting red tape for smaller suppliers to boost with the relevant authorities in Northern Ireland and competition in retail markets, while Ofgem is tackling the Republic of Ireland to assess the potential impacts other barriers to effective competition (such as tariff of the carbon price floor on the single electricity market. complexity and low wholesale market liquidity) in its Energy Retail Market Review. While greater competition should put pressure on prices consumers should also regularly evaluate the best deal on the market. Huw Irranca-Davies: To ask the Secretary of State for Energy and Climate Change when the next Annual Government are also taking a range of actions to Energy Statement will be published. [63275] increase people’s control over their energy bills through energy efficiency, including the Green Deal, and better Gregory Barker: The next Annual Energy Statement information. will be published in autumn 2011. Mr Thomas: To ask the Secretary of State for Energy Energy Supply: Defence and Climate Change what assessment he has made of the effects of recent increases in energy prices by Scottish Penny Mordaunt: To ask the Secretary of State for Power on (a) consumers in Scotland, (b) the incidence Energy and Climate Change whether he has had discussions of fuel poverty in the UK and (c) the incidence of fuel with (a) Ministers and (b) officials in the Ministry of poverty in London; and if he will make a statement. Defence on potential consequences for energy security [63594] of reductions in expenditure on defence; and if he will make a statement. [63131] Charles Hendry: The Government were disappointed on behalf of consumers about the price rise. We would Charles Hendry: The Secretary of State for Energy encourage consumers to regularly check that they are and Climate Change, my right hon. Friend the Member on the best deal and take steps to switch supplier or for Eastleigh (Chris Huhne), and the Secretary of State tariff if they are not. Ofgem’s review of retail markets, for Defence, my right hon. Friend the Member for is proposing, among other things, to simplify tariffs to North Somerset (Dr Fox), have discussed the full range help consumers find the best deal for them. 1069W Written Answers4 JULY 2011 Written Answers 1070W

No formal assessments of the effects of recent changes Charles Hendry: I intend to inform Parliament of in domestic energy prices on fuel poverty levels have yet significant developments arising in relation to nuclear been undertaken. safety initiatives. This will include any developments However, DECC will publish its 2011 projections of that arise as a result of the Government’s work with our fuel poverty for England on 14 July 2011 (as fuel international partners. poverty is a devolved statistic, each of the devolved Administrations manage equivalent surveys with the Natural Gas same range of information). Data on fuel poverty at a sub-regional level, including Caroline Lucas: To ask the Secretary of State for estimates for London, in 2008 (the latest year for which Energy and Climate Change what assessment he has this information is available) can be found on the DECC made of the (a) greenhouse gas footprint and (b) level website at: of methane emissions, including leaks during the http://www.decc.gov.uk/en/content/cms/statistics/ production process, arising from the production of (i) fuelpov_stats/regional/regional.aspx natural gas from shale formations, (ii) natural gas from conventional sources and (iii) coal, including related Mr Thomas: To ask the Secretary of State for Energy extraction processes and combustion; and if he will and Climate Change what assessment he has made of make a statement. [62812] the effects on consumers in London of the case of energy mis-selling by Scottish and Southern Energy; Charles Hendry: I have made no assessment of the and if he will make a statement. [63595] greenhouse gas emissions of shale gas related extraction: emissions from shale gas extraction processes will be Charles Hendry: Doorstep selling has proven to be a determined by the design and conditions of a particular useful way of bringing the benefits of energy competition development and no development has been proposed to the attention of consumers. It is important, however, for the UK. to provide consumers with proper safeguards. In 2009, Ofgem brought in new rules that require any information I note that a recent report by the International Energy used during the doorstep sales process to be complete, Authority entitled ‘Are We Entering A Golden Age For accurate and not misleading. It is for Ofgem to investigate Gas’assessed well-to-burner emissions from unconventional any allegations of the rules being breached and to take gas, for the particular circumstances they considered any necessary action. and in the ‘non venting’ case, as only slightly higher than from conventional gas, with the combustion of gas Fuel: Prices being the dominant source of emissions. The GHG inventory provides methane leakage emissions. Mr Dodds: To ask the Secretary of State for Energy In 2009 fugitive methane emissions from coal mining and Climate Change what assessment he has made of and handling in the UK was 2860.46 Gg CO2e and for the effects of recent trends in fuel prices on progress natural gas it was 4293.86 Gg CO2e (of which 65.58 Gg towards the Government’s fuel poverty targets. [63386] CO2e were attributed to production/processing). Gregory Barker: No formal assessments of the effects The DEFRA/DECC greenhouse gas (GHG) conversion of recent changes in domestic energy prices on fuel factors for company reporting provide GHG emission poverty levels have yet been undertaken. factors from the combustion of fuels (scope 1) and indirect upstream emissions associated with the extraction The recent changes in domestic energy prices on fuel and transport of primary fuels as well as the refining, poverty will lead to upward pressure on fuel poverty in distribution, storage and retail of finished fuels (scope 3). 2011. Nevertheless, the true effect will only be known These are derived from GHG inventory and Digest of when we have full information on price changes from all UK Energy Statistic data. The following shows the suppliers and the 2011 English Housing Survey (EHS). emissions factors on energy gross calorific value basis The EHS provides vital information for calculating the for natural gas and coal. We do not have emission factors level of fuel poverty, including the mix of domestic fuels split into conventional and unconventional natural gas. used by households, the income of those living in the households and the energy efficiency of the housing Scope 1 Scope 3 All scopes stock. Each of the devolved Administrations manage Total direct Total indirect Grand total equivalent surveys with the same range of information, GHG kg CO2e GHG kg CO2e GHG e.g. CO2e as fuel poverty is a devolved statistic. Fuel type per unit per unit per unit However, an assessment of the likely impact of all Coal (industrial) 0.32227 0.05265 0.37492 changes for England will be made on 14 July 2011 when Coal (electricity 0.32190 0.05265 3.37455 DECC will publish 2011 projections of fuel poverty for generation) England. Coal (domestic) 0.34010 0.05265 139275 Natural gas 0.18523 0.01799 3.20322 Fukushima Source: DEFRA/DECC 2010 Paul Flynn: To ask the Secretary of State for Energy and Climate Change pursuant to the written ministerial Nuclear Power Stations: Sellafield statement of 21 June 2011, Official Report, column 5WS, on Fukushima (Interim Report), if he will make it Ms Ritchie: To ask the Secretary of State for Energy his policy to update Parliament regularly on progress in and Climate Change what recent discussions he has nuclear safety initiatives undertaken with international had with the Northern Ireland Executive on nuclear partners at the (a) G8, (b) G20 and (c) the International power provision at Sellafield; and if he will make a Atomic Energy Agency. [63370] statement. [63423] 1071W Written Answers4 JULY 2011 Written Answers 1072W

Charles Hendry: The Government have not held any the issue of pylons in Wales as part of a wider point on discussions with the Northern Ireland Executive on the impact of the UK Government energy policy on Nuclear Power provision at Sellafield. Wales. The national policy statements published on 23 June Solar Power: Housing set out the need for new electricity infrastructure and provide a framework for planning decision making for Huw Irranca-Davies: To ask the Secretary of State for power lines at 132 kV and above in England and Wales, Energy and Climate Change what recent discussions he and include advice to the decision maker on acceptable has had with the Secretary of State for Communities levels of mitigation of environmental and visual amenity and Local Government on planning rules for the installation impacts. of solar photovoltaics on domestic properties. [63276] Wind Power: Public Finance Gregory Barker: DECC Ministers meet regularly with their counterparts from the Department for Communities and Local Government and other Government Chris Heaton-Harris: To ask the Secretary of State Departments to discuss a range of issues. It has been for Energy and Climate Change what his estimate is of the practice of successive Administrations not to reveal the cost to the public purse of constraint payments to details of such meetings. wind farm operators in (a) the latest period for which figures are available and (b) each of the next five years. Huw Irranca-Davies: To ask the Secretary of State [63196] for Energy and Climate Change what recent discussions (a) Ministers and (b) officials in his Charles Hendry: Constraint payments to generators Department have had with representatives of installers of all types are recovered by National Grid as part of on planning rules for the installation of solar the Balancing Services Use of System charges (BSUoS). photovoltaics on domestic properties. [63277] BSUoS is paid equally by generators and suppliers, based on their energy taken from, or supplied to, the Gregory Barker: Ministers have regular meetings with network. National Grid advises that payments to reduce the Solar PV industry where a wide range of topics are the output of wind farm operators for the latest period discussed. are as follows: DECC officials have held discussions with the Solar PV industry about planning, as part of the work to 2011 £ complete the Microgeneration Strategy, which was published March 0 on the 22 June 2011. April 901,258 The Microgeneration Strategy seeks to tackle the May 2,622,043 non-financial barriers facing the sector. Further information June1 681,288 is available at: 1 Data to 22 June http://www.decc.gov.uk/en/content/cms/meeting_energy/ National Grid does not forecast future constraint microgen/strategy/strategy.aspx payments by fuel type. Its forecast (as at 31 March 2011) of total constraint costs across all fuel types Superconductors: Research covers the next two years:

Mr Wallace: To ask the Secretary of State for Energy £ million and Climate Change what funding his Department has April 2011 to March 2012 202.3 allocated to research into the development of April 2012 to March 2013 161.9 superconductors in 2011-12. [62971]

Gregory Barker: The Department has not allocated Chris Heaton-Harris: To ask the Secretary of State funding to research into the development of for Energy and Climate Change what his estimate is of superconductors in 2011-12. However, the Department the cumulative public subsidy that will be given to wind works closely with Department of Business, Innovation power generation in the period between 2010 and 2020. and Skills who sponsor the Engineering and Physical [63197] Sciences Research Council (EPSRC) which is doing research on superconductors. Charles Hendry: The Government do not set targets for individual energy generation technologies but we Wind Power estimate that the contribution of wind energy to the UK 2020 renewable energy target through the RO, Tessa Munt: To ask the Secretary of State for Energy feed-in tariff and the climate change levy exemption and Climate Change what discussions he has had with (estimates in 2010 prices undiscounted) implies a subsidy the Welsh Government on the use of overhead pylons of over £5 billion in 2020. to transmit power in Wales. [62837] Chris Heaton-Harris: To ask the Secretary of State Charles Hendry: I have not had specific discussions for Energy and Climate Change what his estimate is of with the Welsh Government on this issue. However at (a) the value of the power generated by and (b) the the British-Irish Council summit on 20 June that I level of public subsidy to an average wind turbine in attended, the Welsh First Minister, Carwyn Jones, raised the latest period for which figures are available. [63198] 1073W Written Answers4 JULY 2011 Written Answers 1074W

Charles Hendry: The day-ahead wholesale electricity Business: Government Assistance price averaged approximately £50/MWh over June 2011, according to the London Energy Brokers Association. Chi Onwurah: To ask the Secretary of State for The level of renewables obligation support available Business, Innovation and Skills what proportion of to onshore wind farms is one renewables obligation applications to the Regional Growth Fund were certificate (ROC) per MWh of electricity generated, rejected because of concerns about the compliance of and that available to offshore wind farms is two ROCs any award with EU state aid rules. [62453] per MWh. The expected value of a ROC is constant over time at around £43 in 2011-12 prices. Mr Prisk: In Round 1 no Regional Growth Fund applications were rejected because of concerns about the compliance of any award with EU state aid rules. BUSINESS, INNOVATION AND SKILLS Departmental Manpower Arms Trade: Exports Damian Collins: To ask the Secretary of State for Paul Flynn: To ask the Secretary of State for Business, Business, Innovation and Skills how many officials of Innovation and Skills how many export licences for each grade in his Department advise him on policy goods on the Military List were issued in respect of relating to (a) financial services, (b) manufacturing by exports to (a) Bahrain, (b) Saudi Arabia, (c) the the (i) automotive, (ii) aviation, (iii) technology, (iv) United Arab Emirates, (d) Kuwait, (e) Oman and (f) textile, (v) pharmaceutical, (vi) green technology and Qatar in each month from January to May 2011. [63369] (vii) advanced engineering sub-sectors, (c) retail by the (i) food and (ii) clothing sub-sectors, (d) hotels and Mr Prisk: Information on arms exports is published restaurants, (e) transport and communication by the in the annual and quarterly reports on strategic export (i) transport, (ii) telecoms, (iii) publishing and (iv) radio controls. These reports contain detailed information on and television sub-sectors and (f) digital and creative export licences issued, refused or revoked, by destination, industries by the (i) digital, (ii) design, (iii) fashion, (iv) including the overall value, type (e.g. military, other) music and (v) film sub-sectors. [63437] and a summary of the items covered by the licences. They are available to view on the strategic export controls Mr Prisk: Much of the Department’s resource is reports and statistics website at: focused on creating the right economic conditions for https://www.exportcontroldb.berr.gov.uk/eng/fox growth across all sectors of the economy.More specifically, the Department has the following people resource focused By registering on the website, it is possible to obtain the on individual sectors: information broken down by month. The reports currently available provide information Number up to 31 December 2010. Information covering 1 January 2011 to 31 March 2011 is due to be published in the first Aerospace, Marine, Defence, Manufacturing 19 week of July and information covering 1 April 2011 to Advisory Service 30 June 2011 will be published in October 2011. Automotive, Advanced Manufacturing 21 Showcasing Bombardier Aerospace Electronics, Materials, Chemicals 33 Green Economy and Green Investment Bank 38 Information Economy 27 Mr Denham: To ask the Secretary of State for Business, Innovation and Skills (1) on which dates he Life Sciences 15 has had meetings with representatives of Bombardier Retail, Services, Construction 15 Aerospace since 12 May 2010; [63728] (2) what meetings (a) he and (b) Ministers in his Green Investment Bank Department plan to have with Bombardier Aerospace to discuss the future of the company in the UK. [63729] Tony Lloyd: To ask the Secretary of State for Business, Innovation and Skills whether the selection Mr Prisk: The Secretary of State for Business, Innovation process for the location of the Green Investment Bank and Skills, my right hon. Friend the Member for will be by open invitation. [62456] Twickenham (Vince Cable), has had no individual meetings with Bombardier Aerospace since 12 May 2010 although Mr Prisk [holding answer 29 June 2011]: The location representatives of the company have been present at for the Green Investment Bank (GIB) will be chosen to aerospace events attended by him. enable it best to deliver its mission. The criteria will be: There are no plans for BIS Ministers to meet the (1) ability to deliver the GIB mission (2) operational company to discuss its future. My noble Friend the costs, and (3) access to required talent. Fuller details of Minister of State for Trade and Investment (The Lord these criteria are set out in section 2.8 of the ″Update Green of Hurstpierpoint) visited the company on 1 on the design of the Green Investment Bank″ which February 2011, as did the Minister for Universities and was published on 23 May. This decision will be taken in Science, my right hon. Friend the Member for Havant due course. While the Secretary of State for Business, (Mr Willetts) on 26 May (as part of a visit to the Innovation and Skills, my right hon. Friend the Member Northern Ireland Advanced Composite and Engineering for Twickenham (Vince Cable), will be taking the decision Development Centre), and I met Bombardier Aerospace according to these criteria, in the meantime, cities are at the recent Paris Airshow on 20 June. welcome to make their case. 1075W Written Answers4 JULY 2011 Written Answers 1076W

Higher Education: Admissions Number of 15-year-olds in English maintained schools in 2003/04 who progressed to Cambridge or Oxford University by age 19 in 2007/08 Local authority Cambridge Oxford Mr Laws: To ask the Secretary of State for Business, Innovation and Skills how many children educated in Sutton 20 30 maintained schools in each local authority area were Waltham Forest — 5 accepted for entry by (a) Cambridge and (b) Oxford Birmingham 25 25 University in the last year for which figures are Coventry — — available. [62734] Dudley 0 10 Sandwell — 0 Mr Willetts: The information in the table shows the Solihull 5 — number of 15-year-olds in English maintained schools Walsall 10 5 in 2003/04 who progressed to Cambridge or Oxford Wolverhampton 5 10 University by age 19 in 2007/08. The local authority is Knowsley 0 — defined by the school where the pupil studied at age 15. Liverpool 5 10 Pupils may move to a different local authority area to St Helens 5 — undertake post-16 studies. Sefton 5 — Figures have been estimated using matched data from Wirral 10 5 the National Pupil Database and the Higher Education Bolton — — Statistics Agency Student Record. These rounded estimates Bury — — allow for a small margin of error that arises as result of Manchester — — the matching procedure deployed. Figures for the 2008/09 Oldham 5 5 academic year will be available from August 2011. Rochdale — — The figures in the table show the number of students Salford — 0 who entered a higher education course at either Cambridge Stockport 5 5 or Oxford, rather than the numbers who were accepted Tameside — — for entry via the Universities and Colleges Admissions Trafford 15 15 Service (UCAS). Wigan — — Number of 15-year-olds in English maintained schools in 2003/04 who Barnsley — — progressed to Cambridge or Oxford University by age 19 in 2007/08 Doncaster — — Local authority Cambridge Oxford Rotherham — 5 Sheffield 15 10 Camden — 5 Bradford — — Greenwich — — Calderdale 5 — Hackney — — Kirklees 10 10 Hammersmith and 510 Fulham Leeds 20 15 Islington 0 — Wakefield — 5 Kensington and 0—Gateshead — 5 Chelsea Newcastle upon —5 Lambeth — 0 Tyne Lewisham 5 5 North Tyneside 5 — Southwark — — South Tyneside 5 — Tower Hamlets — 0 Sunderland — — Wandsworth 10 — Isles of Scilly 0 0 Westminster — — Bath and North 10 5 East Somerset Barking and —0 Dagenham Bristol — 10 Barnet 40 15 North Somerset — 5 Bexley 10 — South —5 Gloucestershire Brent 5 5 Bromley 20 20 Hartlepool 0 0 Croydon 5 — Middlesbrough — — Ealing — 5 Redcar and —0 Cleveland Enfield 20 15 Stockton-on-Tees 5 — Haringey 5 — Harrow 5 10 Kingston upon Hull 0 0 Havering 15 — East Riding of 55 Yorkshire Hillingdon — 5 North East 0— Hounslow 5 5 Lincolnshire Kingston upon 20 10 North Lincolnshire 0 — Thames North Yorkshire 40 25 Merton — — Newham — — Yo rk 5 5 Redbridge 15 10 Bedfordshire 5 5 Richmond upon 5—Luton 5 5 Thames Buckinghamshire 45 75 1077W Written Answers4 JULY 2011 Written Answers 1078W

Number of 15-year-olds in English maintained schools in 2003/04 who Number of 15-year-olds in English maintained schools in 2003/04 who progressed to Cambridge or Oxford University by age 19 in 2007/08 progressed to Cambridge or Oxford University by age 19 in 2007/08 Local authority Cambridge Oxford Local authority Cambridge Oxford

Milton Keynes — — Suffolk 15 10 Derbyshire 15 15 Surrey 30 20 Derby — — Warwickshire 15 20 Dorset 5 5 West Sussex 15 10 Poole 5 5 Note: Bournemouth — 5 Figures have been rounded to the nearest five. Figures less than five are shown as ‘—’ and zero counts are shown as 0. Durham 10 15 Source: Darlington — 0 Matched National Pupil Database and HESA Student Record East Sussex 10 5 (NPD-HESA) Brighton and Hove 5 — Hampshire 30 45 Manufacturing Industries Portsmouth — — Southampton — 5 Stephen McPartland: To ask the Secretary of State Leicestershire 10 5 for Business, Innovation and Skills if he will estimate Leicester — — the contribution to the UK economy of manufacturing Rutland — 0 in each (a) region and (b) sector. [62965] Staffordshire 20 10 Stoke-on-Trent — — Mr Prisk: The information is as follows: Wiltshire 15 20 (a) The contribution of manufacturing to the UK Swindon 5 — economy broken down by country and region as at 2008 Bracknell Forest — — is set out in table 1. Windsor and 510Table 1: Economic contribution of manufacturing by region, 2008 Maidenhead Percentage of GVA in West Berkshire 10 5 Region manufacturing Reading 10 15 Slough — 5 England 11.5 Wokingham 5 5 Of which: Cambridgeshire 25 30 North East 16.4 Peterborough 5 — North West 16.0 Cheshire 20 20 Yorkshire and the Humber 16.0 Halton — 0 East Midlands 16.8 Warrington — — West Midlands 14.9 Devon 15 20 East of England 11.2 Plymouth 10 5 London 5.5 Torbay — 15 South East 9.3 Essex 70 25 South West 12.3 Southend on Sea 15 — Thurrock 0 — Wales 17.0 Herefordshire 5 10 Worcestershire 10 15 Scotland 13.1 Kent 55 45 Medway — — Northern Ireland 14.4 Lancashire 30 40 Total UK 11.6 Blackburn with 00 Darwen (b) Manufacturing accounted for £150 billion or Blackpool 0 0 11.6% of total UK gross value added in 2008. The Nottinghamshire 15 20 economic contribution of individual manufacturing Nottingham — — subsectors is set out in table 2. Shropshire — 5 Table 2: Economic contribution of manufacturing subsectors, 2008 Telford and Wrekin 5 15 Manufacturing subsectors Percentage of total UK GVA Cornwall 10 10 Food, beverages and tobacco 1.6 Cumbria 15 15 Textiles and textile products 0.3 Gloucestershire 25 40 Leather products and footwear 0.1 Hertfordshire 45 35 Products of wood and cork 0.2 Isle of Wight — — Pulp, paper, printing and 1.5 Lincolnshire 25 15 publishing Norfolk 20 5 Coke, refined petroleum and 0.3 Northamptonshire 15 10 nuclear fuel Northumberland 5 — Chemicals and chemical 1.5 products Oxfordshire 15 25 Rubber and plastics products 0.5 Somerset 10 10 1079W Written Answers4 JULY 2011 Written Answers 1080W

Table 2: Economic contribution of manufacturing subsectors, 2008 Government will support: Manufacturing subsectors Percentage of total UK GVA every school to engage children in enterprise, by developing an online resource for teachers on how to build and manage a Other non-metallic mineral 0.4 products business and by providing ready access to local enterprise champions/mentors; Basic metals and metal products 1.2 expansion of the “Tenner Tycoon” initiative, to enable even Machinery and equipment, 1.0 more children to experience how enterprise can grow their n.e.c. money and benefit their community; and Electrical and optical equipment 1.3 development of student enterprise societies in every university Transport equipment 1.2 and the majority of further education colleges to engage and Manufacturing n.e.c. and 0.5 support students to start their own business. recycling Total manufacturing 11.6 Office of the Independent Adjudicator: Manpower

Munitions Workers: Medals Mr Thomas: To ask the Secretary of State for Business, Innovation and Skills how many staff worked Kevin Brennan: To ask the Secretary of State for for the Office of the Independent Adjudicator in each Business, Innovation and Skills if he will introduce a year since 2005; how many are expected to work in that medal for award to former munitions workers. [63137] Office in each of the next three years; and if he will make a statement. [63599] Mr Prisk: Following my discussions with a number of hon. Members about options for formally recognising Mr Willetts: The Higher Education Act 2004 required those who worked in munitions factories during the the appointment of an independent body to run a world wars, an inaugural meeting of an All Party student complaints scheme in England and Wales. The Parliamentary Group on Recognition for Munitions Office of the Independent Adjudicator (OIA) is designated Workers has been convened by the hon. Member for to operate an independent student complaints scheme Ogmore (Huw Irranca-Davies) on Tuesday 12 July 2011 on this basis. at 1pm in Committee Room 18 to appoint officers. I The OIA is a company limited by guarantee, not a have offered to attend the first substantive meeting— non-departmental public body or similar. Staffing is expected to take place in September. therefore entirely a matter for the OIA. New Businesses: Government Assistance The OIA can be contacted at: OIA, Third Floor, Kings Reach, 38-50 Kings Road, Reading, RG1 3AA. Mr Umunna: To ask the Secretary of State for Overseas Investment: Sudan Business, Innovation and Skills what steps his Department is taking to (a) encourage entrepreneurial Mike Weatherley: To ask the Secretary of State for activity and (b) increase the proportion of people Business, Innovation and Skills what plans his starting businesses. [62213] Department has to encourage British investment in Sudan and South Sudan. [62221] Mr Prisk: In January 2011, the Department published “Bigger, Better Business: Helping small firms start, Mr Prisk: UK Trade & Investment (UKTI), which grow and prosper”, setting out what we are doing to reports jointly to BIS and FCO Ministers, is focused on ensure start-ups and small and medium sized enterprises helping UK companies do business internationally and can access the information, networks and advice they helping overseas companies invest in the UK. It does need not actively promote outward investment from the UK. http://www.bis.gov.uk/assets/biscore/enterprise/docs/b/11-515- Where UK companies with existing plans for overseas bigger-better-business-helping-small-firms investment, or those who have already invested overseas, Government will support: seek UKTI support it will assist as necessary with online business information and tools tailored to each business’ lobbying or other advice as appropriate. The UKTI needs; team in the British embassy in Khartoum led by the a national contact centre to help businesses who cannot find British ambassador will continue to offer this service. the information they need on the web or who are not connected After 9 July when South Sudan is established, the to the internet; British ambassador in Juba will also assist investors help for start-ups, including the New Enterprise Allowance; where possible and appropriate. a network of experienced business mentors offering practical advice; Public Services: Private Sector Business Coaching for Growth, backing high growth SMEs to enable them to realise their potential; and Nick Smith: To ask the Secretary of State for Business, tailored action to raise low entrepreneurial activity among key Innovation and Skills what the terms of reference are parts of our communities, including women, black, Asian and for his Department’s review of business models of minority ethnic groups and service leavers. companies that provide public services; and whether he On 28 March Government announced three new plans to publish the conclusions of the review. [60178] initiatives for embedding enterprise into education to effect a lasting transformation of enterprise ambition in Mr Prisk [holding answer 17 July 2011]: Following the UK initial consideration by officials in the Department, I http://www.bis.gov.uk/news/topstories/2011/Mar/start-up- have written to Cabinet Office Ministers to ensure that britain the Open Public Services White Paper sets out plans for 1081W Written Answers4 JULY 2011 Written Answers 1082W

Departments to develop regimes to detect and cope Water: Imports with potential failure in key public service provision, and that these plans include appropriate consideration John Robertson: To ask the Secretary of State for of financial risks. Business, Innovation and Skills what the net level was of imports of water into the UK in each year since Regional Development Agencies 1989. [62923]

Mr Nicholas Brown: To ask the Secretary of State for Mr Prisk: HM Revenue and Customs recorded the Business, Innovation and Skills what the total cost to following UK trade for ″waters (including natural and the public purse is of the abolition of each (a) regional artificial mineral and aerated waters), ice and snow, not development agency and (b) regional Government containing sugar, sweetening matter or flavoured″— Office. [62405] Standard International Trade Classification 11101.

Mr Prisk: The Regional Development Agencies (RDAs) Imports Exports Imports Exports (Thousand (Thousand are expected to close by 31 March 2012. It is not (£ million) (£ million) tonnes) tonnes) possible at this point to establish the cost of closing each Agency. The spending review settlement for RDAs 1989 40.8 2.0 234 5 provides up to £464 million over the four year period to 1990 40.2 4.6 210 12 March 2015, covering variously salaries, redundancies, 1991 32.5 4.6 173 10 transition/closure costs, pension liabilities and residual 1992 36.4 5.8 182 14 activity. 1993 47.5 5.7 176 14 With respect to Government Offices I refer to the 1994 48.9 6.6 202 18 answer given on 3 March 2011, Official Report, 1995 58.6 7.4 257 21 column 559W, by the Minister of State, Department for 1996 48.9 7.9 209 21 Communities and Local Government, my right hon. 1997 54.9 7.2 246 22 Friend the Member for Tunbridge Wells (Greg Clark) 1998 65.8 6.6 376 22 to the right hon. Member for Southampton, Itchen 1999 77.0 6.5 369 17 (Mr Denham). 2000 83.1 6.2 384 19 2001 107.1 8.5 504 26 Regional Development Agencies: Assets 2002 90.9 11.6 475 33 2003 114.4 14.0 679 49 2004 92.1 13.6 574 52 Mr Denham: To ask the Secretary of State for 2005 110.4 20.6 650 89 Business, Innovation and Skills pursuant to the answer 2006 115.3 24.7 820 94 of 4 May 2011, Official Report, column 776W, on 2007 94.3 22.3 514 85 regional development agency: assets, whether any bids 2008 89.7 21.9 506 83 to the first round of the Regional Growth Fund 2009 106.0 27.1 593 79 referred to the use of regional development agency 2010 106.0 27.8 602 83 assets in their application. [61570]

Mr Prisk: Some bids to the first round of the Regional Growth Fund referred to the use of regional development TREASURY agency assets in their application. The use of the assets was taken into account during the appraisal of the costs Bank Services: Sudan and benefits of these bids. Mike Weatherley: Toask the Chancellor of the Exchequer Universities: Business if he will take steps to assist Sudanese businessmen to set up bank accounts in the UK. [63374] Mr Evennett: To ask the Secretary of State for Business, Innovation and Skills what steps he is taking Mr Hoban: There are no specific legal or regulatory to encourage businesses to sponsor undergraduate and barriers to Sudanese businessmen obtaining a UK bank postgraduate places at university. [63624] account. Decisions on the products and services offered by financial institutions are a commercial matter for the Mr Willetts: We want our universities to work with institution. business across all their activities including to promote sponsorship of students. 80% of universities say they Banks: Finance are engaged with employers but this can improve. We will create more flexibility in our control of overall Bridget Phillipson: To ask the Chancellor of the student numbers so that there are more opportunities to Exchequer what estimate his Department has made of attract extra higher education places fully funded by the administrative costs of a scheme to offer free shares employers or charities providing there is fair access and to the public in Royal Bank of Scotland and Lloyds no reduction in academic entry standards. TSB. [62922] We also announced in our White Paper “Students at the Heart of the System” (cm 8122) that we had invited Mr Hoban: UK Financial Investments (UKFI) manages Professor Sir Tim Wilson to review how we make the the Government’s shareholding in Lloyds Banking Group UK the best place in the world for university-industry and the Royal Bank of Scotland at an arm’s length and collaboration. commercial basis. UKFI’s objective is to dispose of the 1083W Written Answers4 JULY 2011 Written Answers 1084W investments in an orderly and active manner, within the Justine Greening: The Treasury has no current plans context of an overarching objective of protecting and to generate low-carbon energy but like all Government creating value for the taxpayer. Departments has committed to reduce its carbons footprint The Treasury and UKFI are continuing to assess all by 10%. potential options to realise value for taxpayers through Departmental Manpower the disposal of these shares, and will explore the distribution of shares to the public alongside ongoing preparations Damian Collins: To ask the Chancellor of the Exchequer for other disposal options. how many officials of each grade in his Department Capita advise him on policy relating to (a) financial services, (b) manufacturing by the (i) automotive, (ii) aviation, (iii) technology, (iv) textile, (v) pharmaceutical, (vi) Tristram Hunt: To ask the Chancellor of the Exchequer green technology and (vii) advanced engineering sub-sectors, how many contracts his Department has awarded to (c) retail by the (i) food and (ii) clothing sub-sectors, Capita since May 2010; and what the (a) individual (d) hotels and restaurants, (e) transport and monetary value and (b) net worth was of those contracts. communication by the (i) transport, (ii) telecoms, (iii) [62716] publishing and (iv) radio and television sub-sectors and (f) digital and creative industries by the (i) digital, (ii) Justine Greening: Since May 2010 HM Treasury awarded design, (iii) fashion, (iv) music and (v) film sub-sectors. one contract to Capita Group Ltd that expired in June. [63438] The contract was for executive search services. The monetary value of the contract is dependent on Justine Greening: The information requested is not the level of usage. Spend to date is £26,785 (excluding held centrally and could be provided only at VAT). disproportionate cost. An organogram for the Treasury Group can be accessed via the data.gov.uk website at: Commodity Markets http://data.gov.uk/organogram/hm-treasury This sets out departmental staff by team and grade and Mr Douglas Alexander: To ask the Chancellor of the by area of work. Exchequer pursuant to the answer of 19 May 2011, Official Report, column 323W, on commodity markets, Departmental Procurement if he will place in the Library a copy of each relevant item of analysis from economic organisations referred Mr Denham: To ask the Chancellor of the Exchequer to in the answer. [63083] what provisions in respect of behavioural standards have been included in procurement contracts issued by Justine Greening: Relevant analysis is freely available his Department since May 2010. [61685] on the internet and can be accessed on the following websites: Justine Greening: HM Treasury expects all suppliers International Energy Agency (IEA): to maintain high standards of integrity and professionalism in their business dealings. The Department’s standard Medium-term oil and gas markets 2010: contractual terms reflect this requirement. There are no http://omrpublic.iea.org/omrarchive/mtogm2010_ specific terms relating to behavioural standards, but part1.pdf?bcsi_scan_F8D0BFE83951C3DA=0&bsci standard contract conditions for goods and services _scan_filename=mtogm2010_part1.pdf provide for the contractor to comply with standards Monthly Oil market reports: applying to: http://omrpublic.iea.org/ the prevention of corruption and fraud; World Energy Outlook 2010: discrimination; http://www.worldenergyoutlook.org/docs/weo2010/ health and safety; WEO2010_es_english.pdf protection of data; International Monetary Fund (IMF) confidentiality; and World Economic Outlook 2011: security and environmental requirements. http://www.imf.org/external/pubs/ft/weo/2011/01/pdf/text.pdf The conditions for services also provide for compliance Organisation for Economic Cooperation and Development with standards relating to the: (OECD) avoidance of conflicts of interest; and Demand growth in developing countries: vetting of contractors’ personnel. http://www.oecd-ilibrary.org/agriculture-and-food/demand- HM Treasury’s contracts may be modified to take growth-in-developing-countries_5km91p2xcsd4-en account of the type of goods or services being supplied World Bank and the risks to the Department. Placing the 2006-08 commodity price boom into perspective: Since January 2011, the Treasury has published its http://www-wds.worldbank.org/external/default/ contracts (including terms and conditions) above £10,000 WDSContentServer/WDSP/IB/2010/07/21/000158349_ (in value) on the Treasury website. 20100721110120/Rendered/PDF/WPS5371.pdf Diesel Departmental Carbon Emissions Huw Irranca-Davies: To ask the Chancellor of the Huw Irranca-Davies: To ask the Chancellor of the Exchequer what plans he has for the future of the Exchequer whether his Department has any plans to 20 pence duty differential for the sustainable biodiesel generate low-carbon energy from its estate. [63325] sector. [62841] 1085W Written Answers4 JULY 2011 Written Answers 1086W

Justine Greening: I refer the hon. Member to the A review of the entire stock would incur disproportionate answer given on 9 June 2011, Official Report, column cost. 459W,to the hon. Member for Congleton (Fiona Bruce). There are a number of directives which have come The consultation on the implementation of the transport into force (in whole or in part) since 1 April 2010 for elements of the renewable energy directive (RED) closed which HM Treasury has responsibility: on 2 June 2011. The Department for Transport will Directive 2009/44/EC of the European Parliament and of the publish a summary of responses shortly. Council of 6 May 2009 amending directive 98/26/EC on settlement finality in payment and securities settlement systems and directive Economic Growth: EU Countries 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims; Mr Douglas Alexander: To ask the Chancellor of the Directive 2009/110/EC of the European Parliament and of the Exchequer what recent assessment he has made for Council of 16 September 2009 on the taking up, pursuit and benchmarking purposes of projected economic growth prudential supervision of the business of electronic money institutions levels in the (a) Eurozone and (b) EU over the next five amending directives 2005/60/EC and 2006/48/EC and repealing years. [63606] directive 2000/46/EC; Directive 2009/111/EC of 16 September 2009 amending directives Mr Hoban: The Government continue to monitor all 2006/48/EC, 2006/49/EC and 2007/64/EC as regards banks affiliated relevant factors from a range of sources as part of their to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management; and surveillance of the UK economy. The independent Office for Budget Responsibility (OBR) will provide an updated Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010 amending directives 2006/48/EC assessment of prospects for the UK economy in the and 2006/49/EC as regards capital requirements for the trading autumn. book and for re-securitisations, and the supervisory review of Equitable Life Assurance Society: Compensation remuneration policies. The following directives will also be brought into Bob Blackman: To ask the Chancellor of the Exchequer force (in whole or in part) on 1 July 2011: pursuant to the answer to the hon. Member for Leeds Directive 2009/65/EC of the European Parliament and of the North East of 24 January 2011, Official Report, column Council of 13 July 2009 on the co-ordination of laws, regulations 115W,on Equitable Life Assurance Society: compensation, and administrative provisions relating to undertakings for collective investment in transferable securities; whether his Department or actuaries commissioned by his Department made any estimate of the cost of Commission directive 2010/43/EU of 1 July 2010 implementing directive 2009/65/EC of the European Parliament and of the compensating Equitable Life policyholders who purchased Council as regards organisational requirements, conflicts of interest, with-profits annuities prior to 1 September 1992 on the conduct of business, risk management and content of the agreement same basis as the calculations made for those who purchased between a depositary and a management company; and such annuities after 1 September 1992. [63223] Commission directive 2010/44/EU of 1 July 2010 implementing directive 2009/65/EC of the European Parliament and of the Mr Hoban: The parliamentary ombudsman Council as regards certain provisions concerning fund mergers, recommended that the aim of the payment scheme master-feeder structures and notification procedure. should be “to put those people who suffered a relative loss back into the Excise Duties: Alcoholic Drinks position that they would have been in had maladministration not occurred”. The Government have accepted that those who invested Lilian Greenwood: To ask the Chancellor of the in Equitable Life from September 1992 may have suffered Exchequer what steps his Department has taken to relative loss as a result of maladministration. That is on tackle alcohol fraud since the allocation of funding for the basis that September 1992 was the earliest date by that purpose in the comprehensive spending review. which the regulatory returns they may have used to [61910] inform their decision to invest would have been different if maladministration had not occurred, and therefore Justine Greening: Spending Review 2010 announced that they might have decided to invest their funds in that HMRC would reinvest £900 million to address the another company. tax gap and tackle tax avoidance and evasion, bringing This was not the case for with profit annuitants who in additional revenues of £7 billion a year by 2014-15. This includes strengthening HMRC’s enforcement invested prior to September 1992, and therefore no loss ″ ″ calculations have been done for these with profit annuitants operations within their Tackling Alcohol Fraud strategy. on a similar basis. Excise Duties: Wines EU Law Mel Stride: To ask the Chancellor of the Exchequer Julian Smith: To ask the Chancellor of the Exchequer whether he has any plans to adjust rates of duty on for what European directives in force on 1 April 2010 wine production. [62817] his Department is responsible; and what European directives for which his Department is responsible have come into force since 1 April 2010. [60701] Justine Greening: Budget 2010 stated that “the Government will continue with the plans it inherited to Justine Greening: Existing EU legislation is set out in increase the alcohol duty rates by 2 per cent above inflation each the Eur-Lex database available at: year to 2014-15”. http://eur-lex.europa.eu/en/index.htm This includes duty on wine. 1087W Written Answers4 JULY 2011 Written Answers 1088W

Foster Care: Finance The Children Act 1989 also allows local authorities in England to provide support, including financial support, to family and friends carers of children who are not Gordon Banks: To ask the Chancellor of the looked after, if the child is assessed as being in need. Exchequer (1) what discussions he has had on financial Local authorities may also provide financial support to support for children in kinship care; [62974] family and friends carers who hold a residence or special (2) what assessment he has made of the adequacy of guardianship order or who become adopters. Statutory levels of financial support for children in kinship care; guidance that came into force on 1 April 2011 requires [62975] English local authorities to have clear and transparent (3) if he will consider the merits of introducing a published policies about how they support family and single UK-wide financial payment for children in friends carers of children in need in different legal kinship care. [62976] circumstances.

Justine Greening [holding answer 30 June 2011]: Where Foster Care: Guardian’s Allowance carers have the primary responsibility for bringing up a child, there is UK-wide financial provision through Gordon Banks: To ask the Chancellor of the child benefit and child tax credit, which can be paid on Exchequer whether he has received any representations the same terms as to a parent. Child benefit and child on extending the availability of guardian’s allowance to tax credit guarantee support for the first child of over cover children in kinship care. [62973] £4,000 a year for carers on very low incomes. Guardian’s allowance can also be paid where both parents are Justine Greening [holding answer 30 June 2011]: The deceased or, in prescribed circumstances, where only Government receive a range of representations on a one parent is deceased. In order to prevent double wide range of topics, including guardian’s allowance. provision, this support is not provided where the accommodation or maintenance of a looked-after-child is provided from public funds. Money: Counterfeit Manufacturing Support for children through the care system is a devolved matter. Statutory guidance that came into Mr Offord: To ask the Chancellor of the Exchequer force on 1 April 2011 requires English local authorities what steps his Department is taking to reduce the to have clear and transparent published policies about number of counterfeit £1 coins in circulation. [63186] how they support family and friends carers of children in need in different legal circumstances. Justine Greening: The Royal Mint and the Treasury The Government’s welfare reforms will build a simpler, are working with banks, the Post Office, cash handling fairer system that protects the most vulnerable and and sorting businesses, the police and the vending industry makes work pay. The Department for Work and Pensions to remove counterfeit £1 coins from circulation before is keen to ensure that the varied needs of kinship carers they reach the pockets of members of the public. Coin are reflected in policy design and implementation, and handling businesses, such as banks and the Post Office, to this end they are engaging with kinship carers to handle over three billion £1 coins every year. They use understand their priorities. high-speed, automated systems to process customer deposits and prepare coin for reissue. These automated systems are capable of detecting and withdrawing a Gordon Banks: To ask the Chancellor of the significant number of counterfeit coins. All counterfeit Exchequer what assessment he has made of the coins detected from coin processing are sent to the adequacy of (a) decision-making on provision and (b) Royal Mint for disposal. The Royal Mint is also working delivery of financial support for children in kinship with other validator and coin sorting manufacturers to care. [63479] help improve the counterfeit detection rate. The Royal Mint holds regular briefings to educate Justine Greening: Support for children through the the public and the coin handling industry on how to care system is a devolved matter. In England, family identify counterfeits, and has issued educational leaflets and friends carers of looked after children must be and posters. approved as foster carers and receive support as other foster carers do. Responsibility for maintaining a looked after child lies with the child’s local authority and Mortgage Express: Complaints therefore the cost to the foster carer of caring for the child is paid to them in the form of a fostering allowance. George Eustice: To ask the Chancellor of the The Government set a national minimum fostering Exchequer how many complaints his Department has allowance. The fostering allowance should be calculated received about Mortgage Express since 29 September according to criteria that do not discriminate against 2008. [63330] foster carers that are related to the child. Family and friends carers of children who are not Mr Hoban: Treasury Ministers and officials received looked after by the English local authority may be representations from a wide variety of individuals and eligible for child-related benefits, such as child benefit organisations in the public and private sectors as part of and the child tax credit. In order to prevent double the process of policy development and delivery. As was provision, this support is not provided where the the case with previous Administrations, it is not the accommodation or maintenance of a looked after child Government’s practice to provide details of all such is provided from public funds. representations. 1089W Written Answers4 JULY 2011 Written Answers 1090W

Public Sector: Pensions Mr Gauke: HM Treasury, HMRC and DWP consider the equality impact of individual tax and welfare policy Mr Winnick: To ask the Chancellor of the Exchequer changes as they are developed and implemented, making what proportion of those who were employed full-time use of the best evidence available to them. in the public sector receive an annual occupational The Government have taken significant steps to improve pension in respect of their public sector employment of tax policy making since coming into office. This has (a) £4,000 or less, (b) £4,000 to £6,000 and (c) £6,000 included a new approach to impact analysis for tax to £8,000. [63361] measures. The Government now publish a Tax Information and Impact Note for individual tax policy changes. Danny Alexander: HM Treasury does not hold data These explicitly include an assessment of the equalities on the pension benefits payable to those who were impact of individual measures. employed full-time in the public sector. This information It is very difficult to produce robust gender analysis may be available from departments that lead on individual of the overall tax and benefit system. Breaking down public service pension schemes. the impact of overall tax and welfare changes by gender Table 1.C of the Independent Public Service Pensions requires making assumptions about how income is shared Commission’s interim report, published on 7 October within the household. The uncertainties involved are 2010 provides a breakdown of the median pensions in such that results based on such assumptions are not payment for the largest public service pension schemes, proper and valid policy making tools. along with the proportion of pensioner members who VAT: Sports receive benefits of less than £1,000. The table can be found on the HM Treasury website: Teresa Pearce: To ask the Chancellor of the http://www.hm-treasury.gov.uk/d/hutton_pensions interim_071010.pdf Exchequer what recent discussions he has had with sports governing bodies on the treatment for VAT Revenue and Customs: Debts purposes by HM Revenue and Customs of sports league block bookings. [63037] Mr Laurence Robertson: To ask the Chancellor of the Exchequer pursuant to the answer of 14 June 2011, Mr Gauke [holding answer 30 June 2011]: I refer the Official Report, column 703W,on Revenue and Customs: hon. Member to the answer given on 24 May 2011, debt collection, whether he plans to transfer HM Revenue Official Report, column 512W, to my hon. Friend the and Customs’ powers of distraint to its appointed debt Member for Bristol North West (Charlotte Leslie). collection agencies; and if he will make a statement. Working Tax Credit [63366]

Mr Gauke: HMRC do not currently refer cases to Jonathan Reynolds: To ask the Chancellor of the debt collection agencies for distraint action. This work Exchequer (1) how many households where one adult is is undertaken directly by HMRC a carer he estimates will be affected by the change in the working hours qualification for couples with children There are no current plans to change this approach who claim working tax credit in April 2012; [63031] but, as with many aspects of its work, this is something that HMRC is keeping under active review. (2) what estimate he has made of the number of children affected by the increase in the working hours Road Fuel Testing Unit qualification for couples with children to claim working tax credit in April 2012; [63042] Mel Stride: To ask the Chancellor of the Exchequer (3) what estimate his Department has made of the what the cost was of the Road Fuel Testing Unit in (a) number of households in each constituency to be 2009-10 and (b) 2010-11. [62815] affected by the change in working hours qualification for couples with children to claim working tax credit in Justine Greening: The total cost of the Road Fuel April 2012. [63044] Testing Units was £8.1 million in 2009-10, and £11.5 million in 2010-11. Mr Gauke: The measures referred to in these questions are part of a range of reforms to the tax credits system Mel Stride: To ask the Chancellor of the Exchequer announced at the spending review. what the monetary value was of fines given by the Estimating the number of households impacted by Road Fuel Testing Unit for the misuse of red diesel in an individual measure does not give a clear indication (a) 2009-10 and (b) 2010-11. [62816] of the full monetary impact on an individual household. Justine Greening: The total revenues collected as a The Government published estimates of the distributional result of the imposition of civil penalties and restoration impact of the packages of announced tax and benefit fees combined were £1 million in 2009-10, and £1 million measures which can be found at: in 2010-11. http://www.hm-treasury.gov.uk/d/junebudget_annexa.pdf http://cdn.hm-treasury.gov.uk/sr2010_annexb.pdf Taxation Jonathan Reynolds: To ask the Chancellor of Bridget Phillipson: To ask the Chancellor of the the Exchequer what estimate he has made of the likely Exchequer if he will (a) prepare and (b) publish an effect on the number of children living in poverty of the assessment of the impact of the Government’s tax and change in working hours qualification for couples with benefit policies on (i) women and (ii) men, using all children to claim working tax credit in April 2012. available data. [63075] [63045] 1091W Written Answers4 JULY 2011 Written Answers 1092W

Mr Gauke: It is the impact of the tax and benefit and will increase it by £110 above indexation in April system as a whole that is important for child poverty. 2012. As a result, modelled tax and benefit reforms The Government increased the child element of the announced since Budget 2010 may have a small reduction child tax credit by £180 above indexation in April 2011 in child poverty in 2011-12 and 2012-13. 11MC Ministerial Corrections4 JULY 2011 Ministerial Corrections 12MC

Estimated number of individuals paying the annual £30,000 or Ministerial Correction £50,000 charge Rounded 2011-12 2012-13

Monday 4 July 2011 £30,000 7,400 5,900 £50,000 0 3,700 Total 7,400 9,600 Those individuals liable to the charge but who choose TREASURY not to pay it will instead be liable to UK taxation on their worldwide income and gains. The Government have no estimates for the change in Taxation: Domicile the number of non-resident taxpayers between 2009 and 2010. Information relating to the tax year 2010-11, Mr Redwood: To ask the Chancellor of the ending in April 2011, is not yet available. Exchequer (1) what estimate he has made of the The correct answer should have been: number of non-domiciled UK taxpayers who will pay Mr Gauke: There is currently a £30,000 annual charge the annual levy in (a) 2011-12 and (b) 2012-13; for non-domiciled individuals who have been resident [51750] for at least seven of the past nine years and wish to (2) what estimate he has made of the change in the retain access to the remittance basis of taxation. In number of non-resident taxpayers between 2009 and Budget 2011, the Government announced that it would 2010. [51762] consult on raising this charge to £50,000 for non-domiciled [Official Report, 15 June 2011, Vol. 529, c. 806-07W] individuals who have been resident for at least 12 years Letter of correction from Mr David Gauke: with a view to implementing this change from the 2012-13 tax year. The number of individuals estimated An error has been identified in the written answer to pay the annual charges of £30,000 and £50,000 are: given to the right hon. Member for Wokingham (Mr Redwood) on 15 June 2011. The error relates to Estimated number of individuals paying the annual £30,000 or incorrect figures in the 2012-13 column of the table. £50,000 charge Rounded 2011-12 2012-13 The full answer given was as follows: £30,000 7,400 2,600 Mr Gauke: There is currently a £30,000 annual charge £50,000 0 3,700 for non-domiciled individuals who have been resident Total 7,400 6,300 for at least seven of the past nine years and wish to retain access to the remittance basis of taxation. In Those individuals liable to the charge but who choose Budget 2011, the Government announced that it would not to pay it will instead be liable to UK taxation on consult on raising this charge to £50,000 for non-domiciled their worldwide income and gains. individuals who have been resident for at least 12 years The Government have no estimates for the change in with a view to implementing this change from the the number of non-resident taxpayers between 2009 2012-13 tax year. The number of individuals estimated and 2010. Information relating to the tax year 2010-11, to pay the annual charges of £30,000 and £50,000 are: ending in April 2011, is not yet available.

ORAL ANSWERS

Monday 4 July 2011

Col. No. Col. No. DEFENCE ...... 1205 DEFENCE—continued Accommodation Costs...... 1214 French and UK Armed Forces...... 1215 Afghanistan ...... 1217 Middle East and North Africa ...... 1208 Arms Export Review...... 1216 Operation Ellamy...... 1213 Defence Exports...... 1210 Operation Ellamy...... 1216 Defence Industrial Base ...... 1211 Post-conflict Security (Libya)...... 1207 Defence Reform ...... 1205 Surface Fleet ...... 1212 Eurofighter Typhoon ...... 1218 Topical Questions ...... 1220 Fallen Servicemen ...... 1219 WRITTEN MINISTERIAL STATEMENTS

Monday 4 July 2011

Col. No. Col. No. BUSINESS, INNOVATION AND SKILLS...... 73WS HEALTH ...... 75WS Extraordinary EU Competitiveness Council Commission on the Funding of Care and (27 June 2011) ...... 73WS Support...... 75WS NORTHERN IRELAND...... 75WS Independent International Commission on ENVIRONMENT, FOOD AND RURAL AFFAIRS...... 73WS Decommissioning (Final Report)...... 75WS Exotic Notifiable Diseases of Animals...... 73WS Independent Monitoring Commission (Final Report) ...... 76WS FOREIGN AND COMMONWEALTH OFFICE ...... 74WS WORK AND PENSIONS...... 77WS Consular Evacuation Procedures ...... 74WS The Work Programme...... 77WS WRITTEN ANSWERS

Monday 4 July 2011

Col. No. Col. No. ATTORNEY-GENERAL ...... 959W CABINET OFFICE—continued Assembly of the Council of Europe: Meetings...... 959W Unemployment: Young People...... 1011W Prosecutions...... 960W Witnesses: Allowances...... 960W COMMUNITIES AND LOCAL GOVERNMENT ...... 997W Affordable Housing...... 997W BUSINESS, INNOVATION AND SKILLS...... 1073W Aldermaston AWE: Fires...... 998W Arms Trade: Exports...... 1073W Anti-Semitism...... 998W Bombardier Aerospace...... 1073W Departmental Official Visits...... 999W Business: Government Assistance ...... 1074W EU Grants and Loans: West Midlands ...... 999W Departmental Manpower...... 1074W Fire Services...... 999W Green Investment Bank ...... 1074W Homelessness: Social Rented Housing ...... 1000W Higher Education: Admissions ...... 1075W King Edward’s Memorial Park ...... 1000W Manufacturing Industries ...... 1078W Local Government Finance ...... 1001W Munitions Workers: Medals...... 1079W Mayors: Referendums ...... 1001W New Businesses: Government Assistance ...... 1079W Mobile Homes ...... 1003W Office of the Independent Adjudicator: Non-Domestic Rates: Third Sector ...... 1003W Manpower ...... 1080W Quarrying: Kent...... 1003W Overseas Investment: Sudan...... 1080W Social Services: Finance ...... 1003W Public Services: Private Sector...... 1080W Regional Development Agencies...... 1081W CULTURE, MEDIA AND SPORT...... 961W Regional Development Agencies: Assets...... 1081W Cycling: Roads...... 961W Universities: Business...... 1081W Departmental Billing ...... 962W Water: Imports...... 1082W Football: Lasers ...... 961W Historic Buildings ...... 961W CABINET OFFICE ...... 1006W Horse Racing ...... 962W Cancer ...... 1006W Libraries: Reviews...... 963W Charity Commission: Manpower...... 1008W Ofcom...... 963W Civil Servants: Pensions ...... 1009W Olympic Games 2012: Lasers ...... 963W Departmental Carbon Emissions ...... 1009W Playing Fields...... 964W Jobseeker’s Allowance: Bexley...... 1009W Public Holidays...... 964W Ministerial Policy Advisers: Internet...... 1010W Sport England: Dartford...... 964W Unemployment: Graduates...... 1010W Sports ...... 964W Col. No. Col. No. CULTURE, MEDIA AND SPORT—continued ENERGY AND CLIMATE CHANGE—continued Sports: Obesity...... 965W Energy: Housing ...... 1068W World War I: Anniversaries...... 965W Energy: Prices ...... 1068W Energy Supply: Defence ...... 1067W DEFENCE ...... 1045W Fuel: Prices ...... 1069W Afghanistan: Peacekeeping Operations ...... 1046W Fukushima...... 1069W Armed Forces: Housing ...... 1046W Natural Gas ...... 1070W Armed Forces: Private Education ...... 1046W Nuclear Power Stations: Sellafield...... 1070W Christmas Island...... 1045W Solar Power: Housing ...... 1071W Defence Exports...... 1045W Superconductors: Research...... 1071W Defence Infrastructure Organisation: Manpower... 1047W Wind Power ...... 1071W Departmental Billing ...... 1048W Wind Power: Public Finance ...... 1072W Departmental Junior Ministers ...... 1047W Departmental Public Expenditure...... 1047W ENVIRONMENT, FOOD AND RURAL AFFAIRS...... 951W Departmental Travel ...... 1050W Agriculture: International Cooperation ...... 951W Ex-servicemen...... 1051W Agriculture: Subsidies ...... 951W Joint Force Command...... 1051W Animal Welfare ...... 951W Middle East and North Africa ...... 1045W Cats: Electric Shock Equipment...... 952W NATO: Armed Forces...... 1051W Environment ...... 952W Nuclear Submarines...... 1052W Farming: Private Sector ...... 952W Nuclear Weapons...... 1053W Fisheries: Safety...... 953W Strategic Defence and Security Review ...... 1045W Fishing Catches...... 953W Trident ...... 1053W Food: Exports ...... 953W UN Security Council...... 1053W Food: Imports...... 954W War Pensions: Tribunals...... 1054W Hill Farming ...... 954W Nature Conservation: EU Action...... 955W DEPUTY PRIME MINISTER ...... 1043W Nutrient Runoff ...... 955W Electoral Register...... 1043W Water Charges...... 956W Electoral Systems...... 1044W Falkland Islands...... 1044W Prisoners: Voting Rights ...... 1044W FOREIGN AND COMMONWEALTH OFFICE ...... 1025W Voting Rights: Young people ...... 1045W Afghanistan: United Nations ...... 1025W Balkans ...... 1026W EDUCATION...... 975W British Nationals Abroad: Italy...... 1026W Academies...... 975W British Nationals Abroad: Kidnapping ...... 1026W Academies: Finance ...... 975W British Overseas Territories: Carbon Emissions ..... 1027W Commercialisation and Sexualisation of Children Capita ...... 1027W Review ...... 975W Chen Guangcheng ...... 1027W Departmental Billing ...... 976W China: Diplomatic Service ...... 1028W Departmental Carbon Emissions ...... 977W China: Family Planning ...... 1028W Departmental Official Cars...... 977W Council of Europe: Finance...... 1028W Departmental Procurement...... 978W Departmental Carbon Emissions ...... 1028W Disability: Ethnic Groups ...... 979W Departmental Travel ...... 1029W Discretionary Learner Support Fund...... 979W Egypt ...... 1030W Education: Basic Skills...... 980W Fair Trials International...... 1030W English Baccalaureate ...... 980W Greece: Asylum...... 1030W Free Schools: Bradford ...... 981W Iran: Religious Freedom ...... 1031W National Curriculum Review ...... 981W Iran: Satellites ...... 1031W Nurseries: Complaints ...... 982W Libya...... 1032W Parents: Ethnic Groups...... 983W Libya: Armed Conflict...... 1032W Physical Education...... 983W Libya: Military Aid...... 1033W Primary Education: Chess...... 983W Maldives: Inward Investment...... 1033W Religion: Education ...... 983W Members: Correspondence ...... 1033W Religion: English Baccalaureate ...... 984W Middle East: Armed Conflict...... 1033W Religion: Secondary Education...... 984W National Security Council...... 1034W Schools: Assessments ...... 984W Pakistan: China...... 1035W Schools: Inspections...... 991W Pakistan: Politics and Government ...... 1035W Schools: Libraries ...... 991W Saudi Arabia: Religious Freedom ...... 1035W Schools: Vocational Guidance...... 993W Syria: Foreign Relations...... 1036W Students: Compensation ...... 993W UN Security Council...... 1036W Teachers: Academies...... 994W Zimbabwe: Politics and Government ...... 1037W Vocational Education...... 994W HEALTH ...... 1054W ENERGY AND CLIMATE CHANGE...... 1063W Alcoholic Drinks and Drugs: Rehabilitation...... 1054W Carbon Emissions...... 1063W Cord Blood ...... 1055W Carbon Emissions: Housing...... 1063W Departmental Carbon Emissions ...... 1055W Carbon Emissions: Northern Ireland...... 1064W Departmental Official Cars...... 1055W Carbon Sequestration ...... 1064W Health Services: Learning Disability ...... 1056W Climate Change: Finance...... 1065W Maternity Services ...... 1056W Departmental Freedom of Information ...... 1066W Mental Health Services ...... 1057W Electricity: Northern Ireland...... 1067W NHS: Pay...... 1057W Energy...... 1067W Ophthalmology...... 1058W Col. No. Col. No. HEALTH—continued TRANSPORT—continued Organs: Donors ...... 1058W Departmental Manpower...... 968W Prescription Drugs...... 1059W Driving Instruction ...... 968W Prescription Drugs: Misuse...... 1060W Driving: Licensing...... 968W Radiotherapy ...... 1060W EC Regulation 137/2007/EC ...... 968W Respite Care: Finance ...... 1061W Great Anglia Railways ...... 969W Social Services...... 1061W Great Western Railway Line: Railway Signals...... 969W Social Services: Finance ...... 1062W High Speed 2 Railway Line ...... 969W Tuberculosis: Drugs ...... 1063W Level Crossings: Safety ...... 970W Motorcycles: Safety...... 970W HOME DEPARTMENT...... 1004W National Express East Coast...... 970W Departmental Buildings...... 1004W Public Transport: Greater London...... 971W Departmental Carbon Emissions ...... 1004W Rail Delivery Group...... 971W Firearms: Licensing ...... 1005W Railways: Disability ...... 971W Metropolitan Police ...... 1005W Railways: Finance ...... 971W Metropolitan Police: Disability ...... 1005W Railways: Franchises ...... 972W Metropolitan Police: Manpower ...... 1006W Railways: Passengers...... 972W Police: Accountability ...... 1006W Railways: Standards...... 973W Rapid Transit Systems...... 973W HOUSE OF COMMONS COMMISSION...... 960W Road Vehicle Lighting Regulations 1989...... 973W Schools: Visits...... 960W Rolling Stock: Procurement ...... 974W Speed Limits ...... 974W INDEPENDENT PARLIAMENTARY STANDARDS Transport: Finance...... 974W AUTHORITY COMMITTEE ...... 956W Vehicle and Operator Services Agency: Members: Allowances ...... 956W Administration...... 974W INTERNATIONAL DEVELOPMENT ...... 995W Departmental Official Cars...... 995W TREASURY...... 1082W Libya: Armed Conflict...... 995W Bank Services: Sudan...... 1082W Pakistan: Overseas Aid ...... 996W Banks: Finance ...... 1082W Yemen: Overseas Aid ...... 997W Capita ...... 1083W Commodity Markets...... 1083W JUSTICE ...... 1011W Departmental Carbon Emissions ...... 1083W Community Orders ...... 1011W Departmental Manpower...... 1084W Departmental Carbon Emissions ...... 1017W Departmental Procurement...... 1084W Departmental Official Cars...... 1018W Diesel...... 1084W Homicide: Finance...... 1019W Economic Growth: EU Countries...... 1085W Legal Aid ...... 1020W Equitable Life Assurance Society: Compensation .. 1085W Legal Aid: Iraq ...... 1020W EU Law...... 1085W Missing Persons: Death...... 1020W Excise Duties: Alcoholic Drinks...... 1086W Offenders: Employment ...... 1020W Excise Duties: Wines...... 1086W Offenders: Rehabilitation ...... 1021W Foster Care: Finance...... 1087W Open Prisons: Crime ...... 1021W Foster Care: Guardian’s Allowance...... 1088W Prison Service: Contracts ...... 1021W Money: Counterfeit Manufacturing...... 1088W Prisoners: Literacy ...... 1022W Mortgage Express: Complaints...... 1088W Prisoners’ Release...... 1022W Public Sector: Pensions ...... 1089W Prisons: Employment...... 1023W Revenue and Customs: Debts...... 1089W Sentencing: Drugs...... 1024W Road Fuel Testing Unit...... 1089W Taxation...... 1089W SCOTLAND...... 949W VAT: Sports...... 1090W Departmental Advertising ...... 949W Working Tax Credit ...... 1090W Departmental Billing ...... 949W Departmental Official Cars...... 949W WORK AND PENSIONS...... 1037W Drugs...... 950W Carer’s Allowance...... 1037W Mortgages...... 950W Children: Maintenance ...... 1037W Scottish Power...... 951W Community Care Grants...... 1038W Employment and Support Allowance ...... 1039W TRANSPORT...... 966W Housing Benefit ...... 1039W A233: Road Traffic...... 966W Personal Independence Payment...... 1040W Channel Tunnel Railway Line ...... 966W State Retirement Pensions...... 1041W Crewe-Chester Railway Line: Electrification...... 967W State Retirement Pensions: Females ...... 1042W Crossrail: Rolling Stock ...... 967W Universal Credit...... 1042W Departmental Buildings...... 967W Working Tax Credit ...... 1042W MINISTERIAL CORRECTION

Monday 4 July 2011

Col. No. TREASURY...... 11MC Taxation: Domicile ...... 11MC Members who wish to have the Daily Report of the Debates forwarded to them should give notice at the Vote Office. The Bound Volumes will also be sent to Members who similarly express their desire to have them. No proofs of the Daily Reports can be supplied, nor can corrections be made in the Weekly Edition. Corrections which Members suggest for the Bound Volume should be clearly marked in the Daily Report, but not telephoned, and the copy containing the Corrections must be received at the Editor’s Room, House of Commons,

not later than Monday 11 July 2011

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CONTENTS

Monday 4 July 2011

Oral Answers to Questions [Col. 1205] [see index inside back page] Secretary of State for Defence

Business of the House [Col. 1227] Statement—(Sir George Young)

Reform of Social Care [Col. 1232] Statement—(Mr Lansley)

Finance (No. 3) Bill [Col. 1252] As amended, further considered

Musculoskeletal Diseases [Col. 1342] Debate on motion for Adjournment

Written Ministerial Statements [Col. 73WS]

Written Answers to Questions [Col. 949W] [see index inside back page]

Ministerial Correction [Col. 11MC]