Monday Volume 519 29 November 2010 No. 80

HOUSE OF COMMONS OFFICIAL REPORT

PARLIAMENTARY DEBATES (HANSARD)

Monday 29 November 2010

£5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 507 29 NOVEMBER 2010 508

future. We want to ensure that the timing is such that it House of Commons does not force people to jettison their analogue radios in huge quantities. Our discussions are progressing rapidly. Monday 29 November 2010 Last week I had a discussion with the managing director of one of the largest commercial radio groups, and we hope that our discussions will progress further in the The House met at half-past Two o’clock next month.

PRAYERS Chris Bryant (Rhondda) (Lab): There is a great deal of anger in Wales about the way in which the Minister and his Department have treated our local media. ITV [MR SPEAKER in the Chair] Wales will probably not be able to sustain its public service requirements, and S4C has been treated appallingly. There has been no consultation with the people of Wales. There will be a single monopolistic presence in Oral Answers to Questions broadcasting in Wales, and the Minister is doing a great disservice to the people of Wales by the way in which he is advancing his cause. CULTURE, MEDIA AND SPORT Mr Hunt: The mess in local broadcasting in Wales was not created by this Government. It was the hon. The Secretary of State for Culture, Olympics, Media Gentleman’s party under which audiences for S4C halved and Sport was asked— over the last decade, and which did absolutely nothing Local Media about it. We have sought to find a secure future for S4C that will maintain its independent identity but will also give it the support of our largest broadcaster. We have 1. Charlie Elphicke (Dover) (Con): What plans he has actually done something about the problem; the hon. for the future of local media. [26730] Gentleman’s party did nothing about it whatsoever. 10. John Glen (Salisbury) (Con): What plans he has Ian Lucas (Wrexham) (Lab): When the Minister does for the future of local media. [26739] consult on the future of local media, will he speak to The Secretary of State for Culture, Olympics, Media elected representatives? I note that he has completely and Sport (Mr Jeremy Hunt): We have announced radical ignored the views of all party leaders in Wales on S4C, plans to secure the future of the local newspaper industry, including the leader of the Conservatives in Wales. Is and have ambitious hopes to turn this country from one not the way in which he is ignoring elected representatives of the least well served by local television to one of the from Wales an absolute disgrace? Will he start talking best served. to people about something which is very keenly felt in Wales, and which he does not understand? Charlie Elphicke: Many local newspapers have struggled with the recession, but the East Kent Mercury and the Mr Hunt: With respect to the hon. Gentleman, I have Dover Express in my constituency have done really well. talked to many elected representatives, but in particular Do Ministers think it right to praise successful local elected representatives from this House, about the best newspaper groups? way forward for S4C. We have put a solution on the table which secures S4C’s finances for the whole Mr Hunt: Yes, especially when they are in one’s own comprehensive spending review. If the hon. Gentleman constituency. My hon. Friend is absolutely right. The has a better solution, perhaps he should put something best way in which we can help local newspaper groups is forward, because we have heard nothing from the Labour by making it commercially viable for them to turn into party. multi-media operations which offer their news product over radio, television, iPods, iPads and mobiles. I do not Fibre-optic Broadband know what the broadcast footprint of Dover television might be, but I have no doubt that it would extend my hon. Friend’s reputation as a campaigning Member of 2. Mark Pawsey (Rugby) (Con): If he will discuss Parliament across the channel to the north coast of with the Secretary of State for Business, Innovation and France. Skills steps to ensure that the roll-out of fibre-optic broadband is available on an equal basis to all customers John Glen: In the light of the uncertainty facing local in a single community. [26731] radio operators such as Spire FM in my constituency over the path for migration to DAB, can the Minister The Parliamentary Under-Secretary of State for Culture, tell us when the owners and operators of such stations Olympics, Media and Sport (Mr Edward Vaizey): Iam will know whether they can secure a future beyond lucky enough to be a Minister in both the Department Ofcom’s seven-year licensing strategy? for Culture, Media and Sport and the Department for Business, Innovation and Skills, but I intend to discuss Mr Hunt: I thank my hon. Friend for his important the issue with my right hon. Friend the Secretary of question. We greatly value the role of local radio, and State for Culture, Olympics, Media and Sport, who we are also very committed to the transition to a digital leads on it. 509 Oral Answers29 NOVEMBER 2010 Oral Answers 510

Mark Pawsey: Constituents of mine tell me that on a against the backdrop of the fact that this country pays new housing estate consisting of 900 homes, about out £120 million in debt interest every day. Schools 800 are about to receive the new BT Infinity fibre-optic funding has been ring-fenced and handed over to head service, but 100 will be left with a poor 0.5 to 1.5 megabit teachers, and I would challenge them to continue this supply. Working professionals rely on an efficient service. funding where it is proving important and showing Will the Minister make representations to ensure that benefits, and I hope the right hon. Gentleman would all users in a community receive the same excellent support them in that. service? Mr Don Foster (Bath) (LD): Further to that answer, I Mr Vaizey: My hon. Friend speaks up very well for greatly welcome the proposal for the new school Olympics his constituents in regard to this problem, which is to improve competition between schools, but does the connected with the placing of exchanges. One community Minister recognise that for that to be successful it is is often served by two different exchanges. However, I important that schools receive a wide range of support, intend to speak to the relevant operator about the issue which was previously provided by the school sports and report back to him. partnership? Will he confirm that although the ring-fencing for the funding has gone, the money is still available in London Olympics (Sporting Legacy) schools, and therefore will he confirm that he will continue to work with the Secretary of State for Education 3. Dr Daniel Poulter (Central Suffolk and North to ensure there continues to be a partnership into which Ipswich) (Con): What steps his Department is taking schools— to secure a sporting legacy from the London 2012 Olympics. [26732] Mr Speaker: Order. We have got the drift of the hon. Gentleman’s question, and I am grateful to him for it. The Minister for Sport and the Olympics (Hugh Robertson): I have asked Sport England to develop its Hugh Robertson: The short answer to that is yes of £135 million places people play strategy, which along course I will. The key thing to remember is that the with the investment in the Olympic park will mean a funding has, of course, been handed over to the schools— new generation of iconic facilities, protection for our [HON.MEMBERS: “No, it hasn’t.”] The schools budgets local playing fields and the gold challenge, which will have been handed over to head teachers and it is entirely both raise money for charity and get more people up to them to make decisions on it as they please. The playing Olympic sports. The school Olympic-style head teachers of every single secondary school that I competition will get competitive sport back in our have visited during my time as a Member of Parliament schools, and all of this is, of course, supported by have always asked me for greater control of their budgets; protecting both the whole sport plans and elite athlete they have now got it. funding in the spending review. Tessa Jowell (Dulwich and West Norwood) (Lab): Dr Poulter: I am sure the Minister is aware that The Olympics are a national project beyond party politics, Ipswich has some fantastic sporting facilities, and we and I join the hon. Gentleman in his support for that are greatly looking forward to hosting the Azerbaijan principle, which I have always maintained, so will he team during the 2012 Olympics, but may I invite him to now stand with the coaches, the teachers, the young visit Ipswich to help us in our aspirations to develop a people and the volunteers who are bewildered and sports village and a lasting sporting legacy for young outraged by the decision to dismantle the partnerships people, and to improve healthy lifestyles in Ipswich? that have seen nine out of 10 children play sport regularly? I ask him to do so in the spirit not of party politics, but Hugh Robertson: I thank my hon. Friend for that of respecting that this second Olympic promise is a invitation, and I have indeed visited Ipswich on a number once-in-a-lifetime opportunity for those young people? of occasions—and watched his football team win a couple of years ago. [Interruption.] I do not sound Hugh Robertson: I will absolutely stand behind those surprised at all. The scheme my hon. Friend mentions is people. That is precisely why we changed the amount of precisely the sort of project that will benefit from the money that sport gets from the national lottery, which type of funding Sport England is now looking at, and enabled us to preserve both the whole sport plans and I wish him every success with it. elite athlete funding. No money whatsoever has been cut from the coaching system that comes through the Mr Ben Bradshaw (Exeter) (Lab): But will not the Department for Culture, Media and Sport—indeed, it decision to scrap school sports partnerships do great has been increased. Those are precisely the measures damage to the most important part of the Olympics that were opposed by the Labour party. I just say to the legacy, which is the health and fitness of our young right hon. Lady, cross-party co-operation being what it people? What has the Minister said to the Education is, that she has to recognise the scale of the financial Secretary to try to persuade him to reverse this disastrous problem we face: the amount of debt interest that we decision? pay out every day is larger than the entire Exchequer contribution to Sport England in a year. That is the Hugh Robertson: I think it is fair to say that nobody scale of the challenge we face. who is involved in sports issues—as the right hon. Gentleman was in his previous job, of course—would Nicky Morgan (Loughborough) (Con): The Minister want sports funding to be cut in any way, but we have to will be aware of the enormous value that sport plays in realise that this is a decision—[Interruption.] It is all the economy of Loughborough. Not only will it host very well moaning about it, but it is a decision taken Team GB and Team Japan before the Olympics, but a 511 Oral Answers29 NOVEMBER 2010 Oral Answers 512 number of elite athletes are based at its university and the activities of VisitEngland. I noted that Eastbourne college. What plans does he have to continue elite featured as destination of the month according to athletics funding after 2012 as part of the Olympics VisitEngland’s June newsletter; the heading was “Visit legacy? England’s sunniest resort”.

Hugh Robertson: I thank my hon. Friend for that Stephen Lloyd: The Minister mentioned that Eastbourne question. Of course Loughborough is right at the forefront is famed for its record amount of sunshine. Is he aware of our plans for London 2012 and the development of that it was also ranked No. 1 in a survey of the friendliest sport beyond then. All the elite athlete funding has been holiday towns in the UK? Will he join me in praising not only confirmed for London 2012, but set at precisely those who work in Eastbourne’s hospitality industry, the same level for the start of the Rio cycle, framed by and will he and his ministerial colleagues accept my our decision on the lottery and the money that UK invitation to take their next summer holiday in the Sport is getting this year. That is very good news for sunniest town in Britain? elite athletes in this country and it means that we will avoid the trap that the Australians fell into after the John Penrose: I would be delighted to spend my Sydney games—they front-loaded the funding for their holiday in Eastbourne were it not for the fact that I home games and it fell off dramatically afterwards. represent Weston-super-Mare, which I hope the hon. Regional Theatre (CSR) Gentleman will accept is an equally wonderful seaside resort. I do, however, join him in congratulating the welcomers in Eastbourne and other parts of the visitor 4. Diana Johnson (Kingston upon Hull North) (Lab): economy, because the welcome accorded to visitors is a What assessment he has made of the effects on financial tremendously important part of the value that any support for theatres in regions outside the south-east of tourist perceives when they visit any part of the UK. the outcomes of the comprehensive spending review; and if he will make a statement. [26733] Mr John Whittingdale (Maldon) (Con): Does the Minister accept that there is now a lot of evidence to The Parliamentary Under-Secretary of State for Culture, suggest that tourism in Eastbourne and in other parts Olympics, Media and Sport (Mr Edward Vaizey): Funding of the country would receive a substantial boost if we decisions from central Government are the responsibility moved to daylight saving? Will he therefore consider of the Arts Council. I am delighted to say, however, that giving whatever fair wind he can to the Daylight Saving as part of the spending review the Arts Council has Bill promoted by my hon. Friend the Member for limited cuts to the budget for arts organisations to just Castle Point (Rebecca Harris), which is to be debated in 15%. We have also reformed the lottery money and that this House on Friday? will boost the arts by £50 million each year from 2012.

Diana Johnson: For nearly 40 years, the Hull Truck John Penrose: I am on the record from previous oral theatre has been a huge success for the city of Hull. The questions as saying that the potential benefits to the theatre now employs 93 staff and is located in its new tourism industry are extremely well documented and £15 million building at Ferensway. Following the £100,000 are widely held to be substantial. I am sure that my hon. cut made by Hull city council last week and the £40,000 Friend will also accept that there are other factors to reduction made by the Arts Council, will the Minister consider, notably the concerns of many people in northern look at this again, taking into account the fact that it is Scotland and Northern Ireland about the effect on much easier to find private sector investment and jobs other parts of the economy. Therefore, we want to try to on the south bank of the Thames than on the north ensure that we are not leaving any part of the UK bank of the Humber? Will he particularly examine the behind or imposing a decision without consent. I suspect regional funding for theatre in the most disadvantaged that, with any luck, that will be part of the debate on communities, such as my own? Friday.

Mr Vaizey: I absolutely hear what the hon. Lady has Philanthropy (Arts) to say, and I pay tribute to that theatre and its reliance on a mix of different elements of arts funding. I would remind her that theatres in Yorkshire received almost 6. Mel Stride (Central Devon) (Con): What progress £7 million in grant in aid via the Arts Council this year he has made on arrangements to support philanthropy and will continue to be funded by the Arts Council in in the arts. [26735] future. The Secretary of State for Culture, Olympics, Media Tourism Industry (Eastbourne) and Sport (Mr Jeremy Hunt): Boosting philanthropy is central to our strategy to help the arts weather an 5. Stephen Lloyd (Eastbourne) (LD): What support extremely difficult economic storm. We will announce a his Department provides for the tourism industry in package of measures to do that before Christmas. Eastbourne. [26734] Mel Stride: Smaller organisations often lack the skills The Parliamentary Under-Secretary of State for Culture, and experience to raise money from private sources. Olympics, Media and Sport (John Penrose): The What can my right hon. Friend do to help smaller arts Government aim to attract new tourist visitors from organisations, such as the Devon Guild of Craftsmen in around the world through the activities of VisitBritain my constituency, to raise even more money through and to promote local destinations within the UK through philanthropy? 513 Oral Answers29 NOVEMBER 2010 Oral Answers 514

Mr Hunt: I commend my hon. Friend on his work for Library Provision (CSR) small arts organisations in his constituency. They are the lifeblood of the arts world. Organisations such as 7. Chris Evans (Islwyn) (Lab/Co-op): What assessment The Factory, an amateur arts group that puts on he has made of the likely effects on library provision of productions of “Hamlet” all over the country in church the outcomes of the comprehensive spending review. halls, are the kinds of organisations that nurture the [26736] acting talent of the future. They do not always have the fundraising capacity, however, to raise money from The Parliamentary Under-Secretary of State for Culture, private donors. That is why, with the Arts Council, we Olympics, Media and Sport (Mr Edward Vaizey): Local will announce a series of measures to help rectify that. I authorities have a statutory duty to provide a comprehensive hope that that will please my hon. Friend. and efficient library service. I shall be writing to all local authorities this week to remind them of that. We have Steve Rotheram (Liverpool, Walton) (Lab): In his put in place a plan through the future libraries programme Department’s structural reform plan, the Secretary of to help local authorities take forward their library service. State made clear his support for philanthropic giving to supplement funding to arts and cultural organisations. Chris Evans: Libraries play an important role in adult Will he therefore join me in raising money for institutions literacy programmes. Will the Minister guarantee that in Liverpool? If I promise to get my mates to have a those programmes will be kept in any future Government whip-round and to donate a few bob each, will he ask plans? his 22 millionaire friends in the Cabinet to match our donations in proportion with their wealth? Mr Vaizey: As I said, the library service is a local authority service so it is up to local authority services to deliver it. I can also tell the hon. Gentleman with my Mr Hunt: I will happily give the hon. Gentleman any BIS hat on that the excellent Minister for Further support I can in his attempts to boost philanthropy in Education, Skills and Lifelong Learning has preserved Liverpool, as I will to attempts in the rest of the a substantial amount of funding for adult literacy country. He is absolutely right—one of the best ways to programmes. boost philanthropy is to find a rich person and ask them to chair the fundraising committee. Andrew Bridgen (North West Leicestershire) (Con): In my county of Leicestershire we are seeing increased Sarah Newton (Truro and Falmouth) (Con): What use of our libraries. Will the Minister reaffirm his progress has the Minister made in ensuring that national commitment to support the important services they museums financially support their offspring in the regions, provide? such as the National Maritime museum in Falmouth in my constituency? Mr Vaizey: I would certainly support the important services that Leicestershire libraries provide. I have visited Leicestershire libraries. May I also take this opportunity Mr Hunt: My hon. Friend makes an important point. to praise Leicestershire’s excellent music service, which I In the settlement letter that we gave to all the national hope the county will preserve? museums, which protected their funding to a much greater extent than was possible for many other parts of Mr Eric Illsley (Barnsley Central) (Lab): How does the public sector, we asked them to come forward with the Minister square what he has just said about preserving proposals through which they would mentor and help libraries with the effects of the comprehensive spending smaller arts organisations in the regions with their review and the cuts in financing to local government, fundraising. We hope to announce progress on that given that one of the first areas to face closure will be front in the next few weeks. local library provision?

Mr Ivan Lewis (Bury South) (Lab): The Department’s Mr Vaizey: As I have said, libraries are a statutory business plan states, intriguingly, that the Secretary of service, so local authorities must provide them, and State’s philanthropy strategy will incorporate “insights providing that they have a far-seeing and imaginative from behavioural science”. Does he accept that if such a plan, they can do so. There are many excellent local strategy is built solely on a nudge and a wink, or advice library services up and down the country, and the future from a psychologist, it will be a damp squib in exactly libraries programme is making sure that that knowledge the same way as a nudge and a wink, rather than the is widely disseminated. coalition’s promised tax break, is doing nothing to support the growth of the UK video games industry? Transport (London Olympics)

Mr Hunt: It is all very well for the hon. Gentleman to 8. Bob Russell (Colchester) (LD): What discussions carp from the sidelines, but where are his proposals to he has had with the Secretary of State for Transport on boost philanthropy? Where are his proposals to help the use of the surface rail route between Liverpool increase the money going to the front line? We are Street and Stratford as part of the transport network doing things to try to boost the amount of private for the London 2012 Olympics. [26737] giving to deal with the economic crisis that we inherited from his Government. He should help us, support us The Minister for Sport and the Olympics (Hugh and contribute constructively. I am happy to nudge him Robertson): Although I have regular discussions with to do so. the Transport Secretary on a variety of Olympic transport 515 Oral Answers29 NOVEMBER 2010 Oral Answers 516 issues, I have had no detailed discussions with him Minister consider opening the various grids for learning about the particular use of this route. so that people can pay to piggyback on broadband access from their schools out of hours? Bob Russell: I encourage the Minister to do just that. The eyes of the world will be on east London in 2012 Mr Vaizey: The hon. Gentleman makes an excellent and I pray that very few people cast their eyes on the point. We will be publishing a broadband strategy document trackside wasteland and derelict buildings between London at the beginning of the month which will address this Liverpool Street and Bethnal Green. Will he, in the specific issue. There are technical difficulties with achieving spirit of joined-up government and of involving the that, but if they can be overcome, it should certainly be Mayor of London, bring people together to ensure that done. that stretch of the line matches what is attractive in Stratford? Tourism Industry (Wells)

Hugh Robertson: The simple answer to that question 11. Tessa Munt (Wells) (LD): What support his is yes, of course I can. About 200,000 people use Department provides for the tourism industry in Wells. Liverpool Street station every morning and we anticipate [26743] that there will be about 45,000 to 50,000 extra during the games, many of whom will not be going in and out The Parliamentary Under-Secretary of State for Culture, at peak time and will be going in the opposite direction Olympics, Media and Sport (John Penrose): As I said to the normal commuter flow, but I take his point and earlier to my hon. Friend the Member for Eastbourne will see what I can do about it. (Stephen Lloyd), the Government are investing through VisitBritain both by trying to attract more foreign visitors Universal Broadband Service to the UK and by attempting to refocus VisitEngland to make sure that it is promoting English destinations of 9. Stephen Timms (East Ham) (Lab): What discussions all kinds, such as those in the constituency of the hon. he has had with the Secretary of State for Business, Member for Wells (Tessa Munt), to we Brits. Innovation and Skills on the likely effects on competitiveness of the change in the time scale for the delivery of a Tessa Munt: In common with many of the tourism universal broadband service. [26738] and leisure businesses along the Somerset coastline, including the thousands of small bed-and-breakfast The Parliamentary Under-Secretary of State for Culture, businesses, many of which have diversified from farming, Olympics, Media and Sport (Mr Edward Vaizey): Ihave I support the suggested trial of double summertime, not discussed this with the Secretary of State for Business, about which the House will hear more in Friday’s Innovation and Skills, but I have discussed it with the debate on the Daylight Saving Bill. Given the importance Secretary of State for Culture, Olympics, Media and of this matter to hon. Members on both sides of the Sport and we both agree that the new target of having House and to leisure and tourism businesses in Somerset, the best superfast broadband in Europe by 2015 is the including north Somerset, will the Minister give assurances best way to proceed on broadband. I have also praised that he will work with his colleagues in BIS, that the Bill my right hon. Friend for having secured substantial will not be talked out and that the matter will proceed funding for broadband roll-out. to a vote?

Stephen Timms: This matter is very important for John Penrose: I am afraid that the hon. Lady will competitiveness, especially at a time when we need have to wait for Friday to see who wants to speak for many new jobs to be created by companies in rural how long during the debate, but I can assure her that I areas as well as in urban areas. Before the election, the have already engaged in substantial discussions with my Minister’s right hon. Friend the Secretary of State for colleagues in BIS on this. My earlier answer to my hon. Culture, Olympics, Media and Sport described the plan Friend the Member for Maldon (Mr Whittingdale), to secure 2 megabits per second broadband access from the Culture, Media and Sport Committee, stands: universally by 2012 as woefully unambitious, but since this proposal could be tremendously valuable to the the election he has simply deferred the deadline by three tourism industry as a whole, but that is not the only years to 2015. What became of his ambition? factor to be considered. There are issues for people who live north of border that need to be taken into account Mr Vaizey: Our ambition doubled, tripled and became as well. superfast. We learned from broadband providers that they were already in a position to implement superfast Gloria De Piero (Ashfield) (Lab): Has the Minister broadband, so why should we push them down the slow made any impact assessment on increasing VAT to 20% channel when we could push them down the fast channel? on the tourism industry in Wells and elsewhere in That is why the pilots announced by the Secretary of Britain? State will implement superfast broadband for rural areas. I know that the right hon. Gentleman will welcome John Penrose: As I am sure everybody here knows, that given his experience in the previous Government. taxation matters are for the Treasury not for the Department for Culture, Media and Sport. However, I am sure that Duncan Hames (Chippenham) (LD): Even with the hon. Lady realises that any attempt to try to reduce impressive progress, some communities such as Atworth VAT in any one sector will need to come with a fully in my constituency still face being left out, but nearly all costed proposal about the impact on this country’s large the schools in my constituency have access to broadband deficit, which we are trying to bring down. Given the speeds of at least 9 megabits per second. Will the impact of deficits in other countries in Europe, it will be 517 Oral Answers29 NOVEMBER 2010 Oral Answers 518 very difficult for anybody, in the short to medium term The Secretary of State for Culture, Olympics, Media at least, to advance plans of that kind—without a fully and Sport (Mr Jeremy Hunt): I briefed the Cabinet this costed proposal—without seeming to be extremely fiscally morning on our chances for the 2018 World cup bid, dangerous to this country’s economy. and I know the whole House will want to wish the bid team the very best of luck in Zurich this week. I shall be going with my hon. Friend the Minister for Sport and Philanthropy (Arts) the Olympics. The Prime Minister, the Deputy Prime Minister and the whole Government are wholeheartedly behind the bid. 13. Amber Rudd (Hastings and Rye) (Con): What progress he has made on arrangements to support Jessica Lee: A successful World cup bid would boost philanthropy in the arts. [26745] support for football right through to local divisions and local clubs. The coalition agreement sets out a commitment The Secretary of State for Culture, Olympics, Media to co-operative-run football clubs. Supporters of Ilkeston and Sport (Mr Jeremy Hunt): Our plans to boost Town football club in my constituency recently submitted philanthropy include boosting corporate philanthropy, a bid to run the club. Although the bid itself was incentivising individual giving and boosting giving in unsuccessful, the club is now secured under new ownership, the regions as well as in London. but what plans do the Government have to promote community-run football clubs? Amber Rudd: Has the Secretary of State considered more specifically how organisations outside London Mr Hunt: My hon. Friend raises an important point. might attract support for their businesses or their charitable We want to see whether it is possible to create an easier organisations, such as Gizmo in my constituency, which pathway for supporters to build up the capital to enable provides creative workshops for young people? How them to take ownership of clubs in a way that does not can they attract financial support outside London? threaten the investment by other people which has also been so important for the world of football. Obviously, Mr Hunt: My hon. Friend raises a very important the week before the World cup bid is not the time to point. We want to do everything possible to help bring forward football governance proposals, but we organisations such as Gizmo, and indeed to help people will be looking at the situation very carefully and bringing raise money to support the reconstruction of Hastings other measures to the House shortly afterwards. pier. The truth is that there is a lot of regional philanthropy; we can look at what Roger de Haan has done in Ian Austin (Dudley North) (Lab): We are right behind Folkestone, what Sir John Zochonis has done at the the Government’s campaign to bring the World cup to Lowry and what Sir Harry Djanogly has done to support this country, because it would do a huge amount to the Nottingham Playhouse. But it is not enough. It is boost children’s interest in sport. It is important that much tougher than raising money in London, which is youngsters have good facilities and the right coaching, why the package of measures we shall be announcing too. The Government claim that the money for specialist will aim to make it much easier. sports colleges is going into un-ring-fenced schools budgets, but is it not the case that the £162 million for Alison McGovern (Wirral South) (Lab): The Secretary the Youth Sport Trust, which funds school sports of State knows, as I do, that fundraising and finding partnerships, is not being passed over to schools? That philanthropists for the arts and culture is a difficult, money is just being cut. although rewarding, job. It is being made much harder by the turbulence caused by Government arts cuts; for Mr Hunt: It is not the case. We are committed to a example, English Heritage looks set to close its outreach sporting legacy for 2012 for every single child, no matter department. Does the Secretary of State think it is what their background or what school they go to. The realistic to ask even more from a demoralised and legacy that we had from the hon. Gentleman’s Government decreasing body of staff who are working to save the was four out of five older children not doing any sport arts? at all, and an Olympic-sized hole in the Budget.

Mr Hunt: The hon. Lady is right: this is a very tough Creative Industries period for arts and heritage organisations, and we are doing everything we can to help them weather the 15. Jonathan Reynolds (Stalybridge and Hyde) (Lab/ storm. In this country, philanthropic giving to culture is Co-op): What recent representations he has received on £6 per head of population; in America, it is £37 per his Department’s programmes to assist the creative head of population. We are not America, but we would industries. [26748] be neglecting our duty if we did not ask if there were things we could do to boost private giving, and that is what we are doing. The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey): I receive regular representations from across the creative industries—[Interruption] I think debate on the previous 2018 FIFA World Cup question is still going on, but I shall try and talk across it—on all aspects of my Department’s support. I also 14. Jessica Lee (Erewash) (Con): What role the work closely with other Government Departments, because Government has played in supporting the Football I am lucky enough to be a Minister in the Department Association’s bid for the 2018 FIFA World cup. [26746] for Business, Innovation and Skills as well. 519 Oral Answers29 NOVEMBER 2010 Oral Answers 520

Jonathan Reynolds: May I ask the Minister again to the House. I assume that he meant to include the word look at the issue of tax relief for the computer games “inadvertently” and I will insert it for him. I think we industry? are clear about that.

Mr Vaizey: That is a matter for the Treasury. Mr Hunt: I thank the shadow Culture Secretary for his fourth question. Let me answer plainly. School Topical Questions sports partnerships are not being dismantled. We are committed to competitive sport, and the legacy of the T1. [26750] Mr James Gray (North Wiltshire) (Con): previous Government was only one in five children If he will make a statement on his departmental regularly playing inter-school sport. To answer the hon. responsibilities. Gentleman’s question about older children, yes, in year 7, four in five children are not playing sport at all. We The Secretary of State for Culture, Olympics, Media want to do something about it. That is what we want and Sport (Mr Jeremy Hunt): As well as wishing every our legacy to be, and that means that we have to do success to the England 2018 bid team this week, we things differently. wish every success to Andrew Strauss and the English cricket team in Australia and congratulate him, Jonathan T3. [26752] Robert Halfon (Harlow) (Con): Following Trott and particularly Alastair Cook on their outstanding the disappointing decision by the BBC to screen “The performances over the weekend. Accused”, denigrating our British Army, and the subsequent criticism by the head of the armed forces, Mr Gray: The Government’s commitment to rural does the Secretary of State agree that it is time to broadband is laudable, but does the Secretary of State democratise the licence fee and give licence fee payers a agree that providers make a large profit out of urban real say over our programming? provision of broadband, but that in rural areas such as my own they make a large loss? What will he do, Mr Hunt: I understand my hon. Friend’s concerns therefore, to make sure that the £500-odd million that about the issue in question. He will agree with me that he is committing to broadband will be spread not in a free country, it is important that the Government equally between urban and rural areas, but especially should not dictate to our national broadcaster what it towards rural areas to help businesses and homes which says or broadcasts. However, he is right to say that we so badly need it? need to look at governance of the BBC. There is cross-party agreement that the BBC Trust set up by the previous Mr Hunt: The money that we have secured from the Government has not worked in the way that was intended, licence fee settlement is for the part of the country that and as we come up to the renewal of the BBC charter, we believe the market will not satisfy—that is to say, we will be looking closely at ways to improve the approximately a third of homes including, I believe, democratic accountability of the BBC. homes in his constituency, where we think that left to its own, the market would not provide broadband. We have every confidence that we will have a solution that is T4. [26753] Bill Esterson (Sefton Central) (Lab): Can I not just 2 meg per home, as was the limit of the draw the Secretary of State’s attention to Chesterfield ambitions of the previous Government, but the best high school in my constituency, a specialist sports superfast broadband network in Europe. college which has been told that it has lost its £180,000 grant, and that the money will not go into its main Mr Ivan Lewis (Bury South) (Lab): I start by wishing grant? It was something that the Secretary of State for the Secretary of State and Team England all the best Education did not deny last week when I put a similar with their mission this week to secure the 2018 World point to him about the situation throughout the cup. On that, he and the Government will have our full country. Does the Culture Secretary agree that a cut in support. specialist sports grants will lead to a reduction in the number of young people taking part in sport? In relation to youth sport, the Secretary of State must come clean. He has overall responsibility for the future of sport in this country. He briefs the press that he is Mr Hunt: First, although I do not know exactly what against the decision to dismantle support for school happens in Chesterfield, I have no reason to believe that sport, yet on the record he is silent. Does he support the the work done by school sports partnerships is not ending of all funding for the Youth Sport Trust and the excellent there as well. School sports partnerships can dismantling of school sports partnerships—yes or no? continue; however, the philosophy of this Government Was he personally involved in the decision to transfer is to devolve responsibility for budgets to heads, because two questions on youth sport to the Department for we think that they are best placed to know how their Education so as to limit debate on the issue today? Does money should be spent. In Chesterfield, as, I am sure, in he accept that 95% of young people are participating in large parts of the country, I have every confidence that sport for two hours a week in schools, rather than the heads will decide to continue to support their school figure that he inaccurately quoted just a few moments sports partnerships. ago and misled the House? T5. [26754] Mr David Amess (Southend West) (Con): Mr Hunt rose— With a number of countries already considering basing their camps in Southend for the Olympic games, and Mr Speaker: Order. The hon. Member for Bury South with our new diving facility opening tomorrow, does (Mr Lewis) must not accuse a Minister of misleading my right hon. Friend agree that Southend pier, the 521 Oral Answers29 NOVEMBER 2010 Oral Answers 522 longest in the world, should, via a fireworks display, be including how to avoid the dreadful problems that we included in the opening and closing ceremonies for the saw in the run-up to Delhi. Can the Secretary of State Olympics? confirm that the 2012 Olympics team is similarly learning the lessons from Delhi, and that his Department will The Minister for Sport and the Olympics (Hugh give the teams for 2012, 2014 and, if things go well, Robertson): I congratulate my hon. Friend on everything 2018 every possible support? being achieved in his constituency to promote sport and, indeed, the London Olympics, and I am absolutely Hugh Robertson: The simple answer is yes. It is fair to delighted that the local authority is going to lay on a say, and I will always say, that the Commonwealth fireworks display. I have no doubt that it will be the games in Delhi were always going to be pretty tricky, equal of anything we saw in Beijing a couple of years because they were up against a very tight construction ago, and I wish him every good fortune with that. timetable, the security situation was extremely oppressive and the monsoon was unusually heavy and ran late. I T6. [26755] Michael Dugher (Barnsley East) (Lab): Is am glad to say that none of those problems affects the the Minister aware that cuts in central Government delivery of the London 2012 Olympics, nor I am sure—even support disproportionately hurt areas such as Barnsley, though it rains quite a lot in Glasgow—will they affect where council tax receipts are low and needs are higher? the Glasgow 2014 Commonwealth games. That is why the local authority is being forced by this Government to look at library closures. Meanwhile, in T8. [26757] Mr Jim Cunningham (Coventry South) Surrey, council tax receipts are very high, so local (Lab): Is the Secretary of State aware that people, authorities are less reliant on central Government and certainly those in Coventry and the rest of the west are not looking at library closures. Is that fair, and why midlands, will be dismayed that the Youth Sport Trust are the Government creating a postcode lottery in library and school youth services are going to be wound up? provision? Have the Government not got form on that? I do not want to get the answer that it is all the fault of the The Parliamentary Under-Secretary of State for Culture, previous Government; in the ’80s and ’90s, the right Olympics, Media and Sport (Mr Edward Vaizey): The hon. Gentleman’s Government sold off school fields Government are not creating a postcode lottery. Many and the youth service as well. excellent local authorities throughout the country— regardless of their relative wealth—provide absolutely Mr Hunt: With respect to the selling of school playing fantastic libraries, and with a little imagination and, fields, both the last Conservative Government and the perhaps, by participating in our future libraries programme last Labour Government were at fault. We are doing Barnsley, too, can provide a 21st century library service something to put the situation right, which is why my for the hon. Gentleman’s constituents. hon. Friend the Minister for Sport and the Olympics announced a £10 million fund to put playing fields into Alun Cairns (Vale of Glamorgan) (Con): Can the trust. We have done something; the other side talked Secretary of State confirm that there will be no change about it. to the chairmanship of S4C? Does he recognise the With respect to competitive sport in schools, it is our insecurity that some S4C authority members are causing ambition and determination to increase the number of staff, and can he confirm the Government’s commitment children who do competitive support from the woefully to an S4C that is operationally and editorially independent? low levels that we inherited.

Mr Hunt: I can absolutely confirm this Government’s Justin Tomlinson (North Swindon) (Con): Will the wholehearted commitment to an S4C with its own Minister encourage local authorities to explore shared distinct identity, operational independence and the support services and facilities to help protect and enhance and expertise of our most important and largest national community libraries? broadcaster. I urge the authority to clear up the confusion over the leadership at S4C as soon as possible, because Mr Vaizey: Absolutely. I commend Swindon borough it owes nothing less to the people of Wales. council, which has moved one of its libraries into an arts centre and seen attendances rise. Perhaps the hon. T7. [26756] Karl Turner (Kingston upon Hull East) Member for Barnsley East (Michael Dugher) can take (Lab): Given the Secretary of State for Education’s that experience back to his council. disgraceful announcement that £160 million will be cut from school sports funding, what plan does the Barbara Keeley (Worsley and Eccles South) (Lab): It Sports Minister have to compensate children in my is known that a proportion of girls and young women constituency whose health and well-being will suffer as dislike competitive sport, and that reduces their participation a result of his Government’s policy? levels compared with boys and young men. If we are to ensure that the Olympic legacy meets the needs of all Mr Hunt: Our plan for the children in the hon. young people, what is the Government’s policy to increase Gentleman’s constituency, as for the children in every participation among young people who just do not like constituency, is that more of them will do sport, more of competitive sport? them will do competitive sport, and we will have stronger, more effective, bottom-up school sports partnerships. Hugh Robertson: I am glad to tell the hon. Lady that precisely those plans are contained in the Sport England Jo Swinson (East Dunbartonshire) (LD): Top plan “People, Places, Play”. It is also worth mentioning Commonwealth games officials are meeting in Glasgow that at schools benefiting from the pupil premium, today to discuss the preparations for the 2014 games, precisely those groups will be able to benefit. Indeed, 523 Oral Answers29 NOVEMBER 2010 Oral Answers 524 the early evidence is that schools that have had extra Friend the Member for East Yorkshire (Mr Knight) has money from the academies programme have spent it on indicated, right hon. and hon. Members will have an sports equipment. opportunity to make representations on the issue.

Several hon. Members rose— Duncan Hames: I have written to the Chair of that Committee accordingly. Without a sufficient number of Mr Speaker: Order. We must move on. Members on Fridays, private Members’ Bills are at the mercy of obfuscation, filibusters and even poetry—tactics Hon. Members: What about points of order? that only damage the reputation of the House. Will the Leader of the House explore ways to protect private Mr Speaker: Points of order come after Question Members’ Bills from such antisocial behaviour? Time and statements, so there will be an opportunity for them later. Mr Heath: I am quite sure, Mr Speaker, that in your capable hands and those of your deputies there is no question of filibustering on Fridays. Poetry, however, there may be. Whether that is antisocial or otherwise is LEADER OF THE HOUSE for Members to judge. Clearly, procedural devices are sometimes used on Fridays. Any move to remove some of those devices would be a matter for the House rather than for the Government. The Leader of the House was asked— Scrutiny Helen Jones (Warrington North) (Lab): Does the Deputy Leader of the House agree that whatever day is 1. Mr Philip Hollobone (Kettering) (Con): If he will chosen for private Members’ Bills, it is important that assess the effectiveness of (a) oral questions to the opinion on those Bills is tested in the Lobby, not talked Leader of the House and (b) the weekly Business out by dubious practices such as speaking for an hour Question as an opportunity for scrutiny. [26722] and 39 minutes on a two-clause Bill or quoting what was very bad poetry? What can he do to protect the The Leader of the House of Commons (Sir George rights of Back-Bench Members with regard to their Young): I believe that both procedures provide an effective private Members’ Bills? Will he give the House an opportunity for hon. Members to hold the Government assurance that the Government will not use these tactics to account for their management of the business of the to block debate on the Gangmasters Licensing (Extension House. to Construction Industry) Bill, which is of vital importance for safety in the construction industry? Mr Hollobone: My right hon. Friend is open to more parliamentary scrutiny on the Floor of the House than Mr Heath: I remember a very frustrating period of any other Minister of the Crown. Will he support my my life in the last Session of Parliament when I had a proposals for this present Question Time slot to be private Member’s Bill—a very important one about fuel merged with his business questions? Together with other poverty—and it seemed to me that some Members on consequential changes in the oral questions timetable, the Government side, including the Minister, spoke at that would lead to more time being available for questions rather greater length than I had expected to avoid its to the Department for Transport. making further progress. I therefore understand the point that the hon. Lady is making. I repeat, however, Sir George Young: I am grateful to my hon. Friend that this is a matter for the Procedure Committee to for that suggestion. If this slot was moved from where it look at, and I am sure that she will make her observations is at the moment, it would not advantage the Department known to that Committee. for Transport but the Department for Culture, Media John Cryer (Leyton and Wanstead) (Lab): Does the and Sport, from which we have just heard. The answer Deputy Leader of the House accept that a precedent for to my hon. Friend is this. Within three years, we will be this arose during the passage of the City of London moving towards a House business Committee. At that (Ward Elections) Bill, when the then Government used point, it will make sense to look at how we deal with the regularly to split business during a Monday or Tuesday whole issue of business questions in the light of new evening to leave three hours for discussion of that arrangements for that responsibility. Bill? It was a private Bill rather than a private Member’s Bill. Personally, I think it was a rotten Bill, and I would Private Members’ Bills rather have hacked my head off than vote for it. Nevertheless, it established a precedent, and surely private 3. Duncan Hames (Chippenham) (LD): What Members’ Bills could be treated in the same way. assessment he has made of proposals for proceedings on private Members’ Bills to take place on days other Mr Heath: I really cannot support the process of than Fridays. [26724] head hacking as a way of expressing dissent with what was, I think, a Bill supported by the Government of the The Parliamentary Secretary, Office of the Leader of party of which the hon. Gentleman is a member. There the House of Commons (Mr David Heath): The Procedure is a slightly different procedure for private Bills as Committee has recently announced that it will conduct opposed to private Members’ Bills. Again, the points an inquiry into the parliamentary calendar that could that he makes should be made to the Procedure Committee, consider the issue of private Members’ Bills taking which can then take them into account when coming place on a day other than Friday. As my right hon. back to the House with recommendations. 525 Oral Answers29 NOVEMBER 2010 Oral Answers 526

Orientation Programmes (General Election) is published, so Opposition Front Benchers obviously do not agree with the hon. Gentleman. 4. Greg Hands (Chelsea and Fulham) (Con): What discussions he has had with the House of Commons Commission on the effectiveness of orientation programmes for hon. Members after the May 2010 general election. HOUSE OF COMMONS COMMISSION [26725]

The Parliamentary Secretary, Office of the Leader of The hon. Member for Caithness, Sutherland and Easter the House of Commons (Mr David Heath): My right Ross, representing the House of Commons Commission, hon. Friend the Leader of the House has had no was asked— specific discussion with the Commission on this subject, but I am sure that the whole House, particularly hon. Speaker’s Conference Members elected for the first time in May this year, will wish to join me in thanking the staff of the House for 6. Jo Swinson (East Dunbartonshire) (LD): What the considerable effort that went into delivering the progress the House of Commons Commission has made induction programme. in implementing the recommendations made to it by the Speaker’s Conference on Parliamentary Representation. Greg Hands: My hon. Friend has spoken about the [26727] great successes of the programme earlier this year for new Members, but surely he must agree that existing Mr Frank Doran (Aberdeen North) (Lab): I will Members should not be overlooked. I note that there is answer for the hon. Member for Caithness, Sutherland one Member who has spoken here only once since the and Easter Ross (John Thurso). The House authorities election, has tabled no questions, and has made only have continued to work on those recommendations that five of the 131 votes that he might have made. Will my fall within the remit of the House administration. For hon. Friend agree to have a word with the right hon. instance, new educational resources for schools have Member for Kirkcaldy and Cowdenbeath (Mr Brown), been produced to reflect changes in the new Parliament assuming that he can be found, and perhaps suggest and are available free to Members and schools in hard that some orientation might be needed? copy and online.

Mr Heath: I am sure, Mr Speaker, that it would be Jo Swinson: I welcome the hon. Gentleman to his invidious to discuss the attendance record of any individual new role on the House of Commons Commission. It is Member. It does worry me, I have to say, if some excellent news that since the Speaker’s Conference, the Members have problems reconciling the competing parliamentary nursery has opened. The Speaker’s pressures of writing books and making well-paid speeches Conference recommended action on another barrier to with their duties in this House. However, I hope that in MPs who are parents of young children, which was to the context of the present economic situation, those consider allowing young babies to accompany their MP with particular experience of, say, ending boom and parent into the voting Lobby. Surely that small, sensible bust will feel able to contribute to our debates. change is preferable to the current situation, whereby babies are left in Whips’ offices during votes. Standing Orders (Affirmative Resolution) Mr Doran: A proposal on that issue is being considered 5. Paul Blomfield (Sheffield Central) (Lab): What by the Speaker and by the Commission, and that will be recent discussions he has had on the adequacy of the pursued. provisions in Standing Orders for debates on the Floor of the House on instruments subject to affirmative resolution. [26726] LEADER OF THE HOUSE Mr Heath: Standing Order No. 118 provides that an instrument subject to affirmative resolution shall not be referred to a Delegated Legislation Committee if a The Leader of the House was asked— Minister has given notice of a motion to that effect. I believe that this is adequate to ensure that an instrument Welsh Grand Committee can be debated on the Floor of the House when there is agreement to do so. 7. Alun Michael (Cardiff South and Penarth) (Lab/ Co-op): What recent representations he has received on Paul Blomfield: I thank the Deputy Leader of the the Welsh Grand Committee’s effectiveness as a forum House for his answer. Does he agree, however, that we for discussing Government policy as it relates to Wales. will putting the cart before the horse if we debate the [26728] statutory instrument on university funding before the publication of the Government’s White Paper on higher The Leader of the House of Commons (Sir George education, simply to alleviate the discomfort of Liberal Young): Hon. and right hon. Members, including the Democrat MPs? right hon. Gentleman, have made recent representations to me on this issue. I believe that the Welsh Grand Mr Heath: That puts me in some difficulty, because I Committee provides an effective forum for Members understood that the Opposition had tabled a motion on representing constituencies in Wales to debate matters this very subject for next week, before the White Paper that relate exclusively to Wales. 527 Oral Answers29 NOVEMBER 2010 Oral Answers 528

Alun Michael: I agree with the Leader of the House, services to enable access by hon. Members to regional but the Committee cannot be effective if it does not televisions news programmes on the Parliamentary meet. He has always shown enormous respect for the Estate. [26758] conventions of the House. As a former Secretary of State for Wales, I think that previous Conservative and Mr Frank Doran (Aberdeen North) (Lab): It is already Labour Secretaries of State for Wales have shown respect possible to view the regional television news content to the convention of working consensually with all and services that broadcasters make available on their parties to arrange meetings and topics for debate. Will websites, via the internet. In addition, the annunciator the Leader of the House have a gentle word with the screens carry national and international television news. current Secretary of State for Wales to persuade her of the benefits of such a consensual approach? Diana Johnson: I thank my hon. Friend for that answer. It seems strange that Members can watch Sir George Young: No one is more in favour of subscription sports channels on the network, but cannot consensus than myself. The Welsh Grand Committee access our regional news programmes. Can this matter will have its second meeting of the Session this week. be considered again, because most of my constituents That makes two meetings in six months. In 2005, it met expect me to be up to date with regional as well as once in the Session, in 2006, it met twice and in 2007, it national news. met once. Our record is better than that of our predecessors. Mr Doran: As a Scot, I understand the hon. Lady’s problem. We have two systems. One is the television HOUSE OF COMMONS COMMISSION system, the main function of which is to provide annunciator services and the feed from the two Chambers. The The hon. Member for Caithness, Sutherland and Easter second is the internet. The television system has only Ross, representing the House of Commons Commission, 23 channels. I am not sure how many regional news was asked— programmes there are, but it would not be possible to have them all on the system. However, they are all on Network Services (Regional News) the internet, which is part of the House service.

8. Diana Johnson (Kingston upon Hull North) (Lab): Mr Speaker: Luciana Berger? No. I therefore deem What progress has been made on upgrading network that it is time for the statement. 529 29 NOVEMBER 2010 Autumn Forecast 530

Autumn Forecast At a time when markets are gripped by fears about Government finances across Europe, today we see that the Government were absolutely right to take decisive 3.28 pm action to take Britain out of the financial danger zone. Britain is on course both to grow the economy and The Chancellor of the Exchequer (Mr George Osborne): balance the books, something that some people repeatedly I would like to make a statement regarding the Office said could not happen. for Budget Responsibility’s first autumn forecast. I will Let me take the House through the detail of the also, with your permission, Mr Speaker, inform the forecast. The forecasts for the economy are broadly in House about further measures that the Government line with those produced for the June Budget, despite are taking to support economic growth, including the the more challenging international conditions. I should new growth review launched today and a far-reaching also like to point out that they are very similar to the programme of reforms to our corporate tax system. European Commission forecasts for the UK, which also Following yesterday’s announcement by European Finance happened to be published today. Indeed, the European Ministers, I would like to take the first opportunity to Commission today forecast that Britain would grow update the House about the Irish situation and the faster over the next two years than Germany, France, UK’s involvement. Japan, the United States of America and the average for Copies of the OBR’s autumn forecast were made the eurozone and the European Union. available in the Vote Office earlier today. We should take The OBR forecasts real GDP growth of 1.8% this a moment to recognise the significance of this occasion year, 2.1% next year, 2.6% in 2012, 2.9% in 2013, 2.8% and the practical demonstration of this Government’s in 2014 and 2.7% in 2015. Growth this year is now commitment to transparency and independent forecasting. expected to be considerably higher than was forecast in Today is the first time that Members of this House will June. In the OBR’s judgment, some of that improvement engage in debate about an autumn forecast produced by is likely to be permanent and some of it a temporary the independent Office for Budget Responsibility, rather impact of stock-building. As a result, it forecasts that than conjured up by the Chancellor of the Exchequer, the rate of growth next year will be 0.2 percentage and available to read two hours before the statement. points below its forecast in June. It also predicts above-trend This is also the first forecast by the new independent growth for the four years after that, but the level of chair of the OBR, Robert Chote, with the other members GDP, or indeed the overall size of our economy, is of the budget responsibility committee, Stephen Nickell forecast to be about half a percent higher next year than and Graham Parker, whose appointments were approved was forecast in June, and indeed higher throughout the by all Treasury Committee members from both sides of whole forecast period. the House. As a result, I am sure the country can have full confidence in the independence of these forecasts. Some have made predictions of a so-called double-dip recession, and although the OBR points out that The OBR report published today includes some 150 pages of information—an unprecedented level of detail and “growth has been volatile, as this is a common characteristic of transparency, much of it of the kind available to previous post recession recoveries”, Governments but never before published. I should like its central view is that there will be no double-dip to thank the budget responsibility committee and the recession. Its forecast is growth next year of more than staff of the OBR for their hard work in putting together 2%, and it expects that in the slowest quarter of growth, this autumn forecast. I hope that we now entrench this the first quarter of next year, it will be 0.3%, rising back major improvement in the making of fiscal policy by to 0.7% by the last quarter of next year. It also forecasts passing the legislation currently before Parliament. that consumer prices index inflation will fall from 3.2% in 2010 to 1.9% in 2012, once the short-term effects Although today’s figures are of course independent, of the VAT rise and other temporary factors fall away. they are still just forecasts, and we must treat them with a degree of caution, as one should treat any economic Crucially, the OBR forecasts a gradual rebalancing of forecast. Indeed, the OBR is explicit about that, illustrating the economy as we move away from an economy built the uncertainty surrounding any economic forecasts on debt to one in which we invest and export—again, with the use of fan charts rather than claiming the something that some people said would not happen. It infallible certainty that my predecessors asserted when expects more demand to come from business investment, they provided their forecasts. The only thing that was which is set to grow by over 8% for each of the next four infallible and certain was that those political forecasts years, as well as exports, which are expected to grow on were usually wrong. average by over 6% per year. That new model of sustainable economic growth will rebalance the economy towards With that caution in mind, let me turn to the forecast. investment and exports and away from an unhealthy After the deepest recession since the war, the greatest dependence on private debt and public deficit. It will budget deficit in our peacetime history and the biggest bring to an end the unsustainable situation that saw banking crisis of our lifetime, recovery was always families save less and less each year, so that they ended going to be more challenging than after previous recessions, up, in the words of today’s report, but the message from the Office for Budget Responsibility is that Britain’s economic recovery is on track. The “effectively borrowing money to purchase increasingly expensive economy is growing, more jobs are being created and houses.” the deficit is falling. Its central forecast is for sustainable The OBR also published today a full forecast for the growth of over 2% in each of the next five years, and labour market—something that, I should like to point employment rising in each and every year. Indeed, out, previous Chancellors chose not to do. Employment employment and gross domestic product are higher in is forecast to grow in every year of this Parliament. every quarter and every year than in the June forecast. Total employment is expected to rise from 29 million to 531 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 532

30.1 million—that is over 1 million additional new jobs. one year early, in 2014-15. The same is true for our Thanks to faster-than-expected growth in the economy, target to get debt falling as a percentage of GDP. the OBR now expects the unemployment rate to be Indeed, to use the OBR’s own words, slightly lower this year at 7.9%, instead of 8.1%. Its “the Government has a slightly wider margin for error in meeting forecast for the unemployment rate for next year is the mandate than appeared likely in June.” unchanged from the June Budget at 8%. For future For the first time, the OBR has also tested the resilience years, the OBR predicts a gradual decrease in of the fiscal mandate against two alternative scenarios unemployment, with the rate falling every year. By the for the economy that critics have put forward, and in end of the Parliament, the OBR forecasts that it will fall both cases the mandate is met. to just above 6%, which is about 500,000 fewer unemployed people than at the beginning of this Parliament. It is clear that our decisive actions have proved to the world that Britain can live within her means. The The trend in the claimant count is similar to that for Government have taken Britain out of the financial the internationally recognised labour force survey measure danger zone and set our economy on the path to recovery. of unemployment. However, the level is expected to be That is the judgment not only of the OBR, but of the higher. The OBR explained that the revision is mainly IMF, the OECD, the European Commission, the Bank due to a change in the way that flows from employment of England and all the major business organisations in and support allowance on to jobseeker’s allowance will this country. Already, our efforts are paying off. Today’s take place as a result of the new work capability assessment. forecasts show that the cost of servicing the Government’s In other words, more people are assumed to be flowing debt has come down. Compared to the June forecast, off ESA and on to JSA. That is a key part of our the OBR predicts that we will save £19 billion in interest reforms to create a welfare system that encourages payments between now and the end of the forecast people to seek work and reduce costs to the taxpayer. In period. That is £19 billion that will no longer be paid by short, we will stop hiding people who can work in the British taxpayers to private bondholders and foreign incapacity statistics. Crucially, in each year, fewer people Governments. It is £19 billion that would have been are expected to be on both of those out-of-work benefits wasted, but will instead be saved. combined than in the June forecasts. This is an uncertain world, but the British recovery is I can also tell the House that following the spending on track. Employment is growing, 1 million more jobs review the OBR has recalculated its estimate of the are being created and the deficit is set to fall: the plan is reduction in the headcount in the public sector. In June, working, so we will stick to the course. That is the only the OBR forecast a reduction in headcount of 490,000 way to help confidence to flourish and growth to return, over the next four years; in its latest forecast, that and I urge those who seriously suggest, when they see estimate has come down to 330,000—a reduction of what is happening to our neighbours across Europe, 160,000. The bulk of that revision results from the that we should abandon the decisive plan we are following, action that we have taken to cut welfare bills rather than and instead borrow and spend more, to think again. public services. Our difficult choices on child benefit, What they propose would be disastrous for the British housing benefit and other benefits, each of which the economy, would put us back in the international firing Labour party opposed, mean that fewer posts will be line we have worked so hard to escape from and would lost across the public sector. Those headcount reductions mean higher deficits and jobs lost, and we should reject that still need to take place will happen over four years, that path. not overnight, and the OBR forecast is that private sector job creation will far outweigh the reduction in Stability is a necessary precondition for growth, but it public sector employment. Its forecast states: is not enough. Our economy’s competitiveness has been in decline for more than a decade, undermining its “A period of rising total employment alongside falling general government employment is in line with employment trends during ability to create jobs and grow, which is why we have the 1990s” already announced four annual reductions in corporation tax, axed the jobs tax, cut the small companies rate, when total employment increased by 1.3 million over expanded loan guarantees, simplified health and safety six years while general government employment fell by laws, invested in science and apprenticeships and promoted about 500,000. exports through major trade missions. The most important point is this: the lesson of what is happening all around us in Europe is that unless we Let me set out some of the other things that my right deal decisively with this record budget deficit, many hon. Friend the Secretary of State for Business, Innovation thousands more jobs will be put at risk in both the and Skills and I are announcing today to support private and the public sectors. growth and a rebalancing of our economy. In the Budget, I set out a plan to reduce the main rate of corporation Let me summarise the forecast for the public finances, tax to 24%—its lowest ever rate—demonstrating our which shows that Britain is decisively dealing with its commitment to tax competitiveness. I can now tell the debts. Borrowing this year is expected to be £1 billion House that today we are publishing the most significant less than was forecast in June. The OBR forecasts that programme of corporate tax reforms for a generation, public sector net borrowing will fall from £148.5 billion for consultation with the business community. We propose this year to just £18 billion in 2015-16. Government to make the UK an even more attractive location for debt as a share of GDP is projected to peak just below international business and investment by reforming 70% in 2013-14 and then to fall to 67% by 2015-16, so the outdated and complex rules for controlled foreign the debt ratio is now expected to peak at a lower point companies. We have seen a steady stream of companies compared with the June forecast—just below 70% instead leaving the UK in recent years, and this Government, of just above it. unlike the last one, are not content to sit by and watch On the OBR’s central forecast, we will meet our fiscal our competitiveness leach away and our corporate tax mandate to eliminate the structural current budget deficit base be undermined. 533 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 534

[Mr George Osborne] denominated in sterling. The rate of interest on the loan will be similar to the rates levied by the IMF and the Another tax issue of crucial importance to our corporate eurozone. The loan to Ireland is in Britain’s national sector is the tax treatment of income from intellectual interest. It will help one of our closest economic partners property. For a long time, we have argued that we manage its way through difficult conditions. should increase the incentives to innovate and develop I should also tell the House that the eurozone Finance new products in this country, so to encourage high-tech Ministers met without me to discuss a permanent financial businesses to invest in the UK and to create high-value stability facility. I made it clear in the subsequent ECOFIN jobs here, we can confirm that we will introduce from meeting that the UK will not be part of that. The April 2013 a lower 10% corporate tax rate on profits president of the euro group made it clear that the UK from newly commercialised patents. We have been will not be part of the permanent bail-out mechanism, consulting the business community, and I can tell the and that the European financial stability mechanism, House that as a result of this measure, GlaxoSmithKline which was agreed under the previous Government in will today announce a new £500 million investment May and of which we are part, will cease to exist when programme in the UK, including new manufacturing in that permanent eurozone mechanism is put in place. Hertfordshire; a £50 million venture capital fund to invest in health care research; a new facility at the When we came into office, Britain was in the financial university of Nottingham to develop green chemistry danger zone. Our economy was unstable, our public technology; and the building of GlaxoSmithKline’s next finances out of control, our country—[Interruption.] biopharmaceutical plant in this country, with sites in the north of England and Scotland under consideration. Mr Speaker: Order. The Chancellor must be heard. In total, it estimates that 1,000 new jobs will be created in the UK over the lifetime of these projects. Mr Osborne: Our economy was unstable, our public Today, we are also launching a cross-government finances were out of control and our country was on growth review. This will be a determined, forensic the international watch list to avoid. We took decisive examination of how every part of Government can do action. Now, the independent Office for Budget more to remove barriers to growth and support growth Responsibility has confirmed that the British recovery opportunities. Too often, the natural inclination of is on track, our public finances are under control, Government is in the opposite direction, creating new 1 million jobs are set to be created and our economy is regulations, putting up new barriers, and making life rebalancing. Today we are taking further measures to more difficult for entrepreneurs and innovators. We are secure growth and create prosperity. We are doing so starting to turn the super-tanker around. Together with based on the foundation of stability that we have now the Department for Business, Innovation and Skills, the secured. Britain is on the mend, and I commend this Treasury will lead an intensive programme of work, statement to the House. involving all parts of Government, using evidence provided by the business community and reporting by next year’s Alan Johnson (Kingston upon Hull West and Hessle) Budget. We will identify reform priorities that can benefit (Lab): Let us move from bombast to reality. Here is the whole economy. Specific priority will be given to what the OBR says: improvements to the planning system and employment “As we discussed in Chapters 3 and 4, past experience and law, more support for exporters and inward investment, common sense suggest that our central forecasts for both the and reforms to the competition regime. At the same economy and the public finances are almost certain to be wrong time, we will begin a new sector-by-sector focus on and that there are upside and downside risks to both.” removing barriers to growth and opening up new The only question is on which side of wrong they opportunities. Some of the resulting changes will be actually fall. substantive on their own; others will help particular This Government have committed our country to a industries in specific ways. Some changes may be rate of fiscal consolidation that has been attempted controversial if they confront vested interest, but brick only twice in living memory, and on both occasions by by brick we will remove the barriers that are holding countries that benefited from strong growth in a benign Britain back. global environment. In the current economic crisis, no Finally, I would like to update the House on the country other than Ireland has attempted to cut so international assistance package for Ireland. I attended deeply, so quickly. The Chancellor is always telling us the various European meetings in Brussels yesterday. that we have the highest fiscal deficit in the G20. That is We agreed a three-year package for Ireland worth not true: the US has a proportionally higher fiscal ¤85 billion, which is deficit than ours, and the Americans plan to reduce it “warranted to safeguard financial stability in the euro area and by less than half over the next five years. Japan, which the EU as a whole.” has roughly the same level of deficit, has learnt from its Of that, ¤35 billion will be used to support Ireland’s experience over the past 10 years and plans to cut by banking sector, with ¤10 billion going towards immediate less than a quarter. The Chancellor has chosen to take bank recapitalisation and ¤50 billion being used for an unprecedented gamble with people’s livelihoods and sovereign debt support. Ireland will contribute ¤17.5 billion the country’s future, and he has done so on the basis of towards the total package, and the remaining ¤67.5 billion a fundamental deceit: that when he assumed office, the will be split, with one third coming from the IMF, one public finances were worse than expected. The OBR third from the European financial stability mechanism, exposed that deceit last year, and it has confirmed it and one third from bilateral loans and the eurozone today, so will the Chancellor now tell all those Back facility. The terms of the IMF loans will be determined Benchers behind him—all those Tories who claim to over the coming weeks. In principle, our bilateral loan is their constituents that things are worse than they expected, for £3.25 billion, and we will expect the loan to be and of course those who tell them that they have never 535 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 536 had it so good—that they will have to find a new excuse? that the global economic climate will assist us in achieving Nothing in his statement today can hide the fact that it the kind of boost to growth that we have not seen for was the balanced approach of my right hon. Friend the 60 years. Member for Edinburgh South West (Mr Darling)—[HON. The Chancellor talked about his plans for corporation MEMBERS: “ Where is he?”] Snowed in, in Scotland, tax. Everyone wants a tax system that supports business, probably. It was the balanced approach of my right but he has abolished investment allowances for hon. Friend that saw growth return at the beginning of manufacturing to pay for a cut in corporation tax that the year, saw the recovery gain momentum and led to will give a further £1 billion to the banks. Can he tell us nearly 1 million fewer people claiming out-of-work what sense there is in helping companies that make benefits than predicted. That was the previous Chancellor, large profits for little investment, at the expense of not this one. businesses that will invest heavily in the UK? We were As expected, the OBR has produced a higher growth very pleased to hear his announcement on GlaxoSmithKline forecast for this year than at the time of the emergency and the patent box. We were pleased because that was Budget, but this is the result of an approach that this our proposal. It was me, as Secretary of State for Government have rejected. The reckless gamble that Health, with the former business Minister, Lord Dyson, coalition Members support is still to come; the Chancellor who argued for that in Cabinet. That is why it was in is in the casino, but he has not yet spun the wheel. The last year’s pre-Budget report. It is an excellent proposal. OBR’s judgment of the future matters more than its It was a Labour proposal. revised forecast for a year that is almost over. Here is an idea for the Star Chamber that the Does the Chancellor accept that the OBR does not Government are going to form. Why not help UK advanced expect the fast momentum built up this year to be manufacturing in the civil nuclear supply chain by maintained? Indeed, it is explicit in saying that it expects giving an £80 million loan to Sheffield Forgemasters? a slow recovery. Next year, as spending cuts begin to That is an idea that they can chew over for the next four take effect and the VAT hike dampens demand, the months. OBR is revising its growth forecast down from 2.6% The Chancellor talked about developments relating before the emergency budget to 2.3% immediately to Ireland. As I said last week, we support the financial afterwards and to 2.1% now—it is going south. Looking assistance offered to Ireland, but the lessons of Ireland beyond next year, the forecast for growth over the first cannot be ignored. As a Financial Times leader said four years of the recovery is reduced to an average of last week, 2.4%. This compares with a 3.1% average growth in the “a slower pace of consolidation might have been its best bet at far from pain-free recoveries from the two Tory recessions encouraging growth.” in the 1980s and 1990s. That growth was largely driven That is a lesson for us as well. by growth in the financial sector and in public services, neither of which will be in a position to help this time. The Chancellor’s analytical ability in respect of Ireland was demonstrated in his 2006 article, which has been Lower growth means fewer jobs, and in this weak widely quoted, but in 2008, just two years ago, confident recovery the OBR, having changed its mind, is now that Ireland would not be affected by the financial crisis forecasting something that the Chancellor could not that was just emerging, he said that Ireland now had bring himself to say—namely, that unemployment will rise next year. It no wonder that the Conservative-led “a ‘future fund’ of assets built to provide security against future shocks and liabilities. Their public finances are well placed. Their Local Government Association pointed out last week competitiveness has risen. Their institutions are stronger.” that front-loading cuts in local authorities will lead to 140,000 job losses next year, which is much higher than Ireland had originally expected. The Chartered Institute of Personnel “used the fat years to prepare for the lean years.” and Development estimates that the increase in VAT on The Chancellor was wrong about Ireland, and he is 4 January will cost 250,000 jobs, more than three times wrong about the United Kingdom. The autumn statement as many as our proposed increase in national insurance, does nothing to alleviate the summer madness that led which the Conservatives called a tax on jobs. him to gamble so recklessly with our future. The Chancellor tells us that public sector jobs will be protected by his decision to cut welfare benefits, but this Mr Osborne: I think the shadow Chancellor made works both ways: can he tell the House what the additional the mistake of writing his response before he had seen hit to private sector jobs will be from those welfare the OBR’s forecast. He predicated all of it on there changes? For families up and down this country, a somehow being lower growth, when in fact growth is jobless recovery will be no recovery at all. This Government higher in every quarter and every year than was predicted have no interest in protecting jobs, no alternative measures in the June forecast. I assume that he also wrote his if the gamble fails and, worst of all, no plan for jobs. response before the European Commission produced Indeed, since just last week their growth plan has actually its forecast today. I am sure that he has now seen it. He shrunk, from a White Paper that was supposed to read out a list of countries, but the European Commission contain proposals, to today’s promise to talk: there will predicts that over the next two years we will grow more now be a debate, a discussion. quickly than Germany, France, the United States of The Government’s plans rely on a huge increase in America, Japan, the eurozone and the EU average. If exports and business investment. Let us hope they one is going to read out a list of countries, one might as materialise. But it is a gamble to assume that cuts on the well start with the most accurate and recent forecast for scale envisaged, with cyclically adjusted public borrowing their economies. reduced by 8% of gross domestic product in just five As I have said, the shadow Chancellor’s response was years, will automatically be compensated for by exports. not much of an analysis of what the OBR has said Exports need markets, and there is nothing to suggest today. He skated over the fact that because of the 537 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 538

[Mr George Osborne] Mr Speaker: A lot of Back Benchers want to say something and I would like to accommodate them, but welfare changes that we have introduced, we have been there is important business to follow in the form of able to reduce the public sector headcount reduction Backbench-led debates, so brevity is of the essence from that is required by any deficit reduction plan—including, the Back Benches and the Front Benches alike. presumably, the plan that he will one day propose. He should at least acknowledge that the welfare changes Mr Andrew Tyrie (Chichester) (Con): In June, the achieve that. He and the leader of his party have some Red Book was forecasting that the savings ratio would important choices to make in the next few months as we remain broadly steady at about 6% for the next five years, vote on some of these measures. They must decide which is quite near its long-run average for the previous whether they will support welfare reform or would 40 years. On page 67 of the most recent document rather see a higher number of public sector job losses, however, the new forecast assumes a fall in the savings but that will be a decision for them. ratio to just over half that, and for the remainder of the The shadow Chancellor said that he did not believe in Parliament, at only 3%. Is the Chancellor worried about the rebalancing of the economy, and that the assumptions that fall in the savings ratio, and will he consider measures for exports and investment that I had made were fanciful. to address it? They are, of course, the estimates made by this independent body, the appointment of whose members, as I have Mr Osborne: Yes, I have, of course, seen the forecast said, was ratified by the Treasury Committee. The shadow for the savings ratio and we will want to address it. It Chancellor accused me of having no alternative measures has the savings ratio returning to its average of before to present. I thought that that was a bit of a cheek, the recession, and I think all parties in this House, and because as far as I can tell the Labour party has a blank certainly the Government, will want to find ways of sheet of paper as its new economic policy. He talked of encouraging saving more effectively than was the case in the importance of protecting intellectual property and the past, and to address that particular problem. supporting the growth of patents, and then praised, I believe, James Dyson. The last time I checked, it was Margaret Hodge (Barking) (Lab): What is the forecast we, rather than the shadow Chancellor, who had consulted for the gap between the richest and the poorest in him, but so be it. Britain by 2015? Do the Chancellor and the OBR expect it to grow? Alan Johnson: Lord Drayson. Mr Osborne: I am not aware that the OBR makes that forecast, but obviously everything we are doing— Mr Osborne: Ah. Well, I am sure that Lord Drayson whether increasing free nursery care provision for some [Interruption.] also had some interesting things to say. I of the poorest two-year-olds or introducing the pupil [Interruption.] welcome, by the way— premium—is designed to encourage social mobility and to give those on lower incomes a chance to increase Mr Speaker: Order. Members really must calm down. their incomes over this Parliament. Only this morning I was talking to sixth-formers, one of whom observed that the noise in the Chamber was Mr John Redwood (Wokingham) (Con): I thank the totally off-putting. The public loathe it, and so do I. Let Chancellor for the guarantee of no bail-outs for other us put an end to it. European countries. Does he think the European Central Bank will make available all liquidity needed by major Mr Osborne: I welcome the support that the Opposition banks in euroland, as it should do because it tells us have given to our decision to offer a bilateral loan to they are all solvent? Ireland. We will have to put legislation before the House, and I will of course keep the shadow Chancellor informed Mr Osborne: Obviously, the ECB is independent so I of the details when they are negotiated along with the will not speak for it. What I have said about the European IMF, eurozone and other bilateral contributions. I should financial stability mechanism is that we now have a have mentioned that Sweden and Denmark have also verbal agreement—I will, of course, want to secure it provided bilateral loans. over the coming weeks—that that mechanism will not form a permanent part of the bail-out mechanism that I come back, however, to the point that this forecast the eurozone wants to put in place from 2013, and we shows 1 million new jobs being created over the next will not be part of that bail-out mechanism. Indeed, if four or five years. It also shows growth of over 2% in it requires a treaty change, our consent to that change each year; it shows the economy rebalancing; it shows would, of course, be required. Britain getting to grips with its debts. Yet all the shadow Chancellor could come up with was this: he said he had read a Financial Times editorial in the last week—and Ian Paisley (North Antrim) (DUP): I thank the I note from his interview this morning that that is how Chancellor for his statement. What assurances has he he does his homework; he says he photocopies articles received from Ireland to ensure the multibillion pound from the FT. Well, I went one better and actually got a loan now given to it will not be allowed to be used to copy of the FT, and he said this in his FT interview this have a fire sale of assets that the Irish state now owns in morning: Ulster and, indeed, across the whole of the United Kingdom? Can the Chancellor also tell us what progress “I am a great believer in the philosophy that if you’ve not got he has made with the Northern Ireland Executive on a anything to say, keep your mouth shut”. reduction in corporation tax so we can compete fairly Very good. with a nation that has a corporation tax rate of 12.5%? 539 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 540

Mr Osborne: The Irish bank restructuring package Mr Osborne: What we have published today is a will now take several weeks—at least—to put in place, series of documents, which the hon. Gentleman has and we are, of course, very aware of the interconnectedness perhaps not had a chance to see yet. Some of them are of the banking systems of Ireland and Northern Ireland, on corporate tax reform, on intellectual property and and, indeed, the whole UK. That is one of the reasons on how in time for the Budget—after all, a White Paper why we are making this bilateral contribution; it is one proposes measures that will then be legislated for—we of the reasons why we are in the room discussing the will have measures that will address the competitiveness conditions and the banking package. I am certainly of British industry. Our measures will specifically look conscious of the fact that some of the Irish banks have at things such as the competition regime, the approach significant assets in the UK, and we have a very real we take to attracting inward investment, how we improve interest in the future of that. That is why my hon. our employment law and specific sectors. If he wants to Friend the Financial Secretary came to Northern Ireland involve himself in that process, I will make sure he can earlier this week, and I want to make sure that the be part of it. Treasury, as well as the Secretary of State for Northern Ireland of course, remain in very close contact with the Michael Fallon (Sevenoaks) (Con): Given the forecasting Northern Ireland Executive and Members from Northern record of the Chancellor’s predecessor but one, who Ireland. was frequently in error but seldom in doubt, is not the Corporation tax has genuinely been a matter of debate strength of these forecasts that they were prepared by in the European Union. I do not think that has been independent officials, who cannot be and were not any secret; it has been in the newspapers. Some member overruled by politicians? states wanted to attach conditions to Ireland’s corporation tax rate, and I do not deny that that 12.5% rate is a real Mr Osborne: That is, of course, a very significant challenge for companies in Northern Ireland. That is feature of what is happening today. It is completely why the Secretary of State for Northern Ireland is unprecedented for a Chancellor to present an autumn looking at that and at packages to help the competitiveness forecast that has been produced independently by people of companies in Northern Ireland. But I took a position, who have been verified by the all-party Treasury Committee which was that it is not really for other member states to and who had their own separate press conference. In dictate the tax rates of sovereign nations, even when addition, Members have had a couple of hours to look they are seeking international assistance. The rates of at this document. If one thinks back, for example, to a tax levied by the Irish Government should be a matter year ago and the pre-Budget report, when the previous for the Irish Government and the Irish Parliament. If Chancellor produced the autumn forecast, one recalls the shoe was on the other foot, we would not want to be that he rattled off the numbers. There was absolutely no accepting, in this country, decisions imposed on this opportunity for the shadow Chancellor to have examined Parliament about tax rates. This should be a matter for those numbers or to have looked at the document, or the elected Parliament of the country. I do not deny that for any other Member in the House to have done so. It that 12.5% rate is a challenge for Northern Ireland, but was the Chancellor’s judgment, rather than an independent I did not feel it was right to use the position we found judgment. Our approach is a major improvement to ourselves in to get Ireland to increase that corporate fiscal policy making in this country. The legislation is tax rate. before the House of Lords, and I hope that when it comes to the House of Commons it will have all-party support. Dr John Pugh (Southport) (LD): The Chancellor says he is intent on reforming our “outdated and complex Mr Dennis Skinner (Bolsover) (Lab): Why are the rules for controlled foreign companies.” Can he assure Irish banks worth saving yet Northern Rock was not? me that this will not create new opportunities for tax avoidance? Mr Osborne: What the Irish banks are getting, in many cases, is a capital injection. As in the UK, the banks have been very poorly regulated. We are improving our Mr Osborne: Yes, I can assure the hon. Gentleman regulation system. If the hon. Gentleman does not that that is certainly not the purpose of the measure and think we should be supporting the Irish banking system, that tax avoidance is what we are going to seek to avoid. the impact of his proposals on his constituents in The measure is there to keep pace with the changes in Derbyshire would be very severe. corporate tax regimes that have been introduced in many other countries, not only Ireland, which we have just been talking about, but countries such as Belgium Dan Byles (North Warwickshire) (Con): The shadow and the Netherlands, which have also made corporate Chancellor says that he is concerned about what he calls tax changes that attract international companies to slow growth in coming years. Does the Chancellor agree headquarter there, rather than in the UK. We have to that steady, sustainable and private sector-led growth is keep pace with those changes, which is why we are exactly what the UK needs after the bubble that was taking the measures that we are. inflated and then burst by the previous Government? Mr Osborne: My hon. Friend makes an extremely Mr George Mudie (Leeds East) (Lab): The Chancellor good point. What is happening here is a rebalancing of and the Business Secretary have apparently postponed the economy. I hear the shadow Chancellor muttering the long-awaited growth White Paper. Officials say that away about what he calls slow growth, but according to this is because of the lack of serious content. Can the the European Commission forecasts today our growth Chancellor tell us when can expect this long-awaited is more rapid than that of Germany, France, the United document? In which financial year? States of America or Japan, as well as than the EU 541 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 542

[Mr George Osborne] is from stable public finances, otherwise one cuts taxes one year and has to put them up the next. So I am a average and the eurozone average. I am not sure what fiscal conservative with a small c as well as a tax-cutting his proposals are to increase that growth rate but if he Conservative with a big C. has some, now is the time to produce them. Mr Andrew Love (Edmonton) (Lab/Co-op): In reference Mr Dave Watts (St Helens North) (Lab): Is it not the to the answer to my hon. Friend the Member for case that most of the public sector cuts will take place in Streatham (Mr Umunna), the Chancellor, through the the north and that any jobs that are created—there are OBR, is suggesting that there will be 8% growth in not likely to be many—will be in the south? Is not the business investment yet there is scant sign of it at policy unbalanced? present? Net trade, it has been suggested, will increase by 6% in each of the next four years yet, according to Mr Osborne: In the last decade, under the Government the Governor of the Bank of England, there are doubts of which the hon. Gentleman was a member, for every about whether the euro area or the United States will 10 jobs created in the south-east only one was created in deliver the sort of export growth that is being suggested. the midlands and the north. That is the situation that Is not the Chancellor just a little worried about the we have inherited and the economic model that we have optimism in the estimates and is he concerned about to change. It is precisely because we want to see exports whether they will be delivered over the next four years? and investment increase that we are aiming for a more geographically balanced model of economic growth. Mr Osborne: The hon. Gentleman says that I made Announcements such as the one we have made today on the forecasts, but they are independent forecasts by the investments by Glaxo will help that, as will the Mr Robert Chote, whom I do not think anyone would first-time-ever tax cut for new employees that is specifically claim is in anyone’s pocket. He is totally independent. directed at regions outside the south-east. The hon. Gentleman is on the Treasury Committee, which interviewed Mr Chote for the job and passed Mr John Baron (Basildon and Billericay) (Con): I him. These are Mr Chote’s, Mr Nickell’s and Mr Parker’s suggest that my right hon. Friend never tire of reminding estimates and they have made a central forecast. He the Opposition that this recession, like all previous says that there is scant evidence, but that is not what the post-war recessions, is a recession built on debt and that Office for Budget Responsibility believes. It is independent one cannot borrow one’s way out of debt. and it has forecast that business investment is set to grow by more than 8% for each of the next four years Mr Osborne: I assure my hon. Friend that I will not and that exports are set to grow by an average of more tire of reminding the Opposition of that. Of course, if than 6% a year. they come forward with a new economic policy we can examine it, but at the moment there is not a new Andrea Leadsom (South Northamptonshire) (Con): economic policy to examine, so there we have it. Is my right hon. Friend concerned that in the Greece bail-out and now in the Ireland bail-out taxpayers will Mr Chuka Umunna (Streatham) (Lab): The Chancellor end up supporting professional bond and equity holders has said that he sees private sector growth being driven in banks? by business investment and by exports. In its report today, the OBR has revised down its forecast for business Mr Osborne: This has been one of the most difficult investment in four of the years between 2010 and 2015. issues that the international community and, of course, Of course, we have seen the dramatic uncertainties in the Irish people have had to wrestle with. For reasons of the eurozone, which is our main export market. If financial and economic stability, it was decided that it exports and business investment do not turn out to be was not possible and would not be sensible to ask the what he expects, where does he see private sector growth senior debt holders in the Irish banks to take a haircut. coming from? That is exactly what did happen in late 2008, in some of the US bank rescues, with pretty disastrous effects, so Mr Osborne: One of the primary tasks of the OBR is that is why that decision was taken. Subordinate debt to assess whether we will hit the fiscal mandate. The holders in the Irish banks will suffer losses and I think very fact that the fiscal forecasts are not a matter of that is appropriate. controversy in the House today shows what we have done to get the British public finances under control. Sheila Gilmore (Edinburgh East) (Lab): Given that The OBR assessed specifically the scenario that the the nearest year for prediction in the OBR report suggests hon. Gentleman volunteers and said that the fiscal that growth will fall in relation to previous predictions—it mandate will be met under those conditions. In fact, was 2.6%, then 2.3% and is now 2.1%—what confidence rather perversely, that helps the fiscal forecasts because can we have that predictions further out than now will of the tax base being more focused towards consumption. be any more reliable? Is it not likely that growth will not rise as much as predicted? Mr Charles Walker (Broxbourne) (Con): When the books are balanced, will the Chancellor seriously consider Mr Osborne: I said right at the beginning of my reducing the overall burden of taxation? Thanks to the remarks that these are economic forecasts and that we efforts of the previous Government, it is far too high. should treat them with the caution with which one should treat all economic forecasts. At least we explicitly Mr Osborne: Of course, I am a believer in trying to acknowledge that and the forecasts are independently reduce the tax burden and trying to reduce taxes. However, produced. What we have here is a central forecast; I have always believed that the best way to achieve that previously, Chancellors just gave a number and asserted 543 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 544 that that was the forecast come hell or high water. That Matthew Hancock (West Suffolk) (Con): Will the is not what the OBR is doing today. However, one can Chancellor give us his assessment of what would happen take confidence that its growth forecast for next year is if we ignored the advice of the IMF, the OECD and the in line with those of most independent commentators EU, and moved from the path of putting our own house and forecasters. It happens to be very close to the in order? numbers that the European Commission produced today, which were not available to the OBR or the British Mr Osborne: It is not a bad test of the policy offered Government until today. We can have confidence that it to the Government from the Opposition to consider is part of a group of people who look to the UK and see what would happen if we actually did it tomorrow. If it growing sustainably over coming years and jobs being the shadow Chancellor stood up tomorrow, or if I created. adopted his plan, and announced that the UK was backing off its fiscal consolidation plan and that it Mr Edward Leigh (Gainsborough) (Con): All the talk would take much longer, where do we actually think the is of cuts, but with spending still rising despite these UK would be within about 30 minutes of that statement? so-called cuts and with debt as a proportion of GDP rising to a staggering 70%, will my right hon. Friend Kate Green (Stretford and Urmston) (Lab): I am remind the House that, to coin a phrase, there is no naturally pleased that the number of job losses in the alternative to further massive efficiency savings, particularly public sector has been revised downwards, but I am in ring-fenced Departments such as Health where there very concerned that it seems that the £18 billion of has been a catastrophic decline in productivity in the welfare cuts, which will affect the poorest, will be picking last 10 years? up the price tag. Was that the Chancellor’s explicit decision and policy, and if so does he think it was fair? Mr Osborne: I certainly agree with my hon. Friend that an essential part of this programme for public Mr Osborne: I do of course think the spending expenditure is getting greater productivity in the public review was fair, but as I said at the time—[Interruption.] services. As the former Chair of the Public Accounts If the Opposition would actually produce a spending Committee, he has much to offer. The Treasury is review, perhaps we could compare the two—but they do engaging with him on this, I hope, and will engage not want to do that. further with him in the coming months. He is absolutely The point I was making to the hon. Lady is that I said right that, in a period when there is less money available, at the time of the Budget and the spending review that I if we do not have reform, we will have deterioration in was making a conscious decision to seek further welfare the service. That is why we have got to have reforms and reform to try to reduce the rapidly escalating costs of why Parliament is being asked to support those reforms the welfare state. That was a challenge that anyone in the next few months. doing my job would face, and I said that if we were able to find further welfare reforms, we would be able to Barry Gardiner (Brent North) (Lab): The OBR’s central reduce the cuts in Departments, and that is exactly what forecast is for a “relatively sluggish medium-term outlook”, we were able to do. which it says Jesse Norman (Hereford and South Herefordshire) “reflects…the impact of the Government’s fiscal consolidation.” (Con): May I congratulate the Office for Budgetary Can the Chancellor confirm that it follows from this Responsibility on a thoroughly transparent, comprehensive that if the Government’s fiscal consolidation had been and technically excellent report? It marks a first in this less severe, the medium-term outlook would be less country. Can the Chancellor give us an assessment of sluggish? In other words, he has cut too far and too fast, any remaining threats he sees to financial stability from just as Ireland has. the eurozone countries?

Mr Osborne: The short answer is no. We inherited a Mr Osborne: There is of course concern about the situation of very deep recession, a major banking crisis high deficits, particularly in the eurozone. Let us hope and a record fiscal deficit. I thought—although one is that the action taken yesterday to stabilise Ireland, and never sure—it was common ground across the parties also the clarification that eurozone Ministers offered that at least we had to do something to address the about the future permanent bail-out mechanism and fiscal deficit, not that we have heard specific measures the involvement of private sector creditors in that, will from the Opposition for doing that. In the summer, the help to achieve stability. That is certainly what the OBR produced a comparison of the growth forecasts intention was yesterday. under the previous Government’s plans and under the plans of the current Government, which showed that Ann Coffey (Stockport) (Lab): Stockport council will over a period of time we were putting forward a much tonight announce proposals for cuts, with the likely loss more sustainable path for growth that would lead to of 400 jobs. That will have a devastating impact on my higher growth in the future. It also avoids the downside constituents who are affected, but it will also lead to risk—the tail risk—of a major fiscal event, which would loss of confidence by those with jobs that they will have be a major loss of confidence in the UK. It is pretty jobs in the future, which might lead to reluctance on remarkable that here we are today debating the numbers, their part to spend money in the economy.Is the Chancellor and that is fine, but we are not having to worry about concerned that such lack of confidence will affect new the UK’s creditworthiness, unlike some other countries jobs and future growth? in the European Union, even though we inherited the largest budget deficit in the EU. We have taken measures Mr Osborne: Of course, I have enormous sympathy to take ourselves out of that firing line, and now we with anyone who faces a job loss, but we are creating the have sustainable growth and jobs are being created. economic conditions where they will be able to find a 545 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 546

[Mr George Osborne] Mr Osborne: We are looking at two specific things. One is the controlled foreign companies regime. This is new job, I hope. There is support from the welfare system. what we believe will help encourage large multinationals We expect more than 1 million new jobs to be created to choose the UK as a place to put their headquarters, over the coming years. I make this observation to the rather than in Holland or Belgium, for example, where hon. Lady, who was Parliamentary Private Secretary to some companies have chosen to go. In a world in which the previous Chancellor: if the Labour Government companies can increasingly choose where to locate and had been re-elected in May, they would be cutting countries are being aggressive in trying to attract their billions and billions of pounds from public spending, location, these tax measures will make us one of the this year, next year and in the years ahead. That was in most competitive places in the world for a company to the March Budget plans, even if they are not the plans locate its headquarters. On the patent box and the lower that the shadow Chancellor is sticking to. If the hon. corporation tax rate for intellectual property, of course Lady is able to find a way of cutting many, many the GSK announcement is just one of many, I hope, billions of pounds—£40-odd billion—from public spending from companies that depend on intellectual property without in any way affecting the local government and patents to power their business. Again, that will settlement, she should please let me know. make us very competitive versus other countries.

Mr Marcus Jones (Nuneaton) (Con): I welcome my Mr Michael McCann (East Kilbride, Strathaven and right hon. Friend’s statement and his will to reform Lesmahagow) (Lab): The OBR confirmed today that business regulation. In the course of that reform, will we will borrow £1 billion less. Last week, we decided to the onerous and costly reporting to Government culture make a £7 billion loan to the Republic of Ireland, yet to which businesses must adhere be fully scrutinised? apparently we could not afford to make an £80 million loan to Sheffield Forgemasters. Is that not proof, if any Mr Osborne: The short answer to my hon. Friend is were required, that the Chancellor has deliberately talked yes. One of the specific aspects that we want to look at down the British economy and, more importantly, that is how Government should be helping businesses grow, these policies are damaging the British economy? rather than standing in the way of that. That includes procurement for Government. The Government spend Mr Osborne: I think that is one that was prepared too much of their money on the largest companies in earlier. UK growth is forecast to be higher than that of the country and not enough on some of the smaller Germany, France, many other European countries or companies. That is one of the things that we seek to the United States of America. It is also the case that the improve. OBR is forecasting the creation of a million jobs. When it comes to the sovereign loan to Ireland, that is of a Barbara Keeley (Worsley and Eccles South) (Lab): totally different nature from industrial support. It will On public sector jobs, the Chancellor says that head be set out in the terms that I bring before the House of count reduction will happen over four years, but as he Commons. It is £3.25 billion, rather than the number knows, some local authorities are facing budget reductions that the hon. Gentleman gave. of 20 or 30% next year alone, due to front loading and loss of specific grant. Will he consider rephasing the Geoffrey Clifton-Brown (The Cotswolds) (Con): My cuts to local government so that we do not see 140,000 right hon. Friend has today reinforced the need for local government job losses next year? exports to help our recovery. What can he personally do Mr Osborne: I said at the time that it was a challenging to help reverse the situation whereby we export more to settlement. I have removed some of the ring-fencing— southern Ireland than we do to all the BRIC countries— indeed, almost all the ring-fencing—to allow local Brazil, Russia, India and China—put together? authorities the maximum flexibility to deal with that, but unfortunately I inherited a situation where the Mr Osborne: Since the Government were created country was borrowing £1 in every £4 that it was there has been an absolute focus in foreign policy and spending. At a time when people are looking at European trade policy on trying to increase our exports to those countries, we can see what happens to European countries BRIC countries. The Prime Minister led major trade that have high budget deficits and no credible plan to missions to India and China, the Business Secretary deal with them, so I have had to take those decisions. As was very recently in Russia and I think that a trip is I say, if the Labour party wants to put forward a plan to being proposed for Brazil, so we are seeking to expand remove the structural deficit without affecting the local our exports to the BRIC countries and, indeed, to some government settlement, let us hear it. other important emerging economies such as Indonesia, Turkey and so on. We do not want to export less to Dr Thérèse Coffey (Suffolk Coastal) (Con): I warmly southern Ireland or to anyone else in the advanced welcome the announcement that you made of the world; we just want to increase our exports to emerging investment by GSK into our British economy today on economies. the back of the 10% tax rate for patents and innovation. Can you tell us more about the competitiveness measures Geraint Davies (Swansea West) (Lab/Co-op): We know that you are taking to help this country on its way out of that the deficit is the price that has been paid to avoid a the mess left behind by the Opposition? depression—a price that the Chancellor would not have paid. To reduce the deficit, will he consider using three Mr Speaker: Order. May I make the point that I have methods: first and foremost, a proper jobs and growth made no announcement and I can certainly say no strategy; secondly, fair and progressive taxation; and, more, but I think the Chancellor can oblige? We know thirdly, savings over a greater period, instead of simply what the hon. Lady meant. casting half a million public sector workers on to the 547 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 548 dole, triggering the unemployment of another 1 million programme will have a disproportionate affect on those private sector workers and ending up with the unfair, areas of the state that are more reliant on public expenditure. unnecessary and failed policies of the Conservative past? What other countervailing measures is the right hon. Gentleman considering? Mr Osborne: That was a complete load of nonsense. The independent forecast shows that we are projected Mr Osborne: We have created the regional growth to create 1 million jobs, and that the economy will grow fund to look specifically at areas that need support and more quickly over the next couple of years than the investment. We have been able to announce some significant economies of most of our European competitors. Frankly, transport investment in other parts of our country. The we inherited from the previous Government an absolutely national insurance tax reduction, which the hon. Gentleman catastrophic situation in which people called into question mentions, refers explicitly and only to job creation Britain’s ability to pay its way in the world. That was the outside the south-east and east, and I have deliberately situation we inherited, but I think we have done many taken that decision to try to create a more geographically things in the past six months to ensure that the British balanced economy than the one I found when I took economy is now on the mend. this job. Claire Perry (Devizes) (Con): I am sure the whole House will welcome chart 1.1 on page 8, which shows Mr Tobias Ellwood (Bournemouth East) (Con): It is that there is almost no probability of a double-dip clear from the response that we have heard today that recession. Does the Chancellor agree with that forecast? the Labour party is still in denial about the huge deficit that it created. I congratulate my right hon. Friend on Mr Osborne: It is of course an independent forecast, coming up with a workable, viable and transparent plan and although the Chancellor does—and will under that can take us out of this mess. legislation—have the right to disagree with it, I have not I take my right hon. Friend back to the permanent exercised that right today. fiscal stability facility, which will not come online until 2013. What will happen if another eurozone country Chris Williamson (Derby North) (Lab): What words requires a bail-out? Will Britain’s involvement be kept of comfort can the Chancellor offer the construction to a minimum? industry and the thousands of unemployed building workers who are still reeling from his Government’s decision to scrap the Building Schools for the Future Mr Osborne: I thank my hon. Friend for his initial programme and end housing targets? Does he not accept comments. I say this about any future action that we that a private sector-led recovery will be impossible may or may not have to take. On the bilateral loan, I without a vibrant construction industry? What will he said last week that there were some very specific— do to support the industry? I stress the words “very specific”—circumstances that would lead us to support Ireland because of the Mr Osborne: We certainly want to support the interconnectedness of our economies. I also said that construction industry. It is one of the specific sectors the European financial stability mechanism, the EU that we are looking at, as the growth review that we fund, was something that the previous Government had publish today sets out. If I can just correct the hon. signed up to, and that the UK could not block its use Gentleman, however, I must say that the capital investment because it operated under qualified majority voting. I programmes of this Government are actually higher had to deal with that situation, but by finding now what than the capital investment programmes set out in the I think is a way forward that means that the mechanism March Budget. If he is not aware of what the Labour disappears in 2013, we have taken a bad situation and party fought the election on, so be it. made it a lot better.

Mel Stride (Central Devon) (Con): I welcome my Gregg McClymont (Cumbernauld, Kilsyth and right hon. Friend’s statement and, in particular, today’s Kirkintilloch East) (Lab): Has Ireland’s fiscal consolidation OBR forecast, which sees projected public sector job been successful? losses drop from 490,000 to 330,000. Based on the previous 490,000 figure, PricewaterhouseCoopers projected that half a million jobs would be lost in the private Mr Osborne: The point that I would make— sector. Will my right hon. Friend comment on the likely [Interruption.] Ireland has had to take some incredibly reduced impact on private sector unemployment as a difficult decisions to deal with its fiscal deficit. Its result of today’s lower projected job losses in the public Government have announced, with the support of all sector? the major parties in Ireland, with the exception of Sinn Fein, that they are going to have to take further austerity Mr Osborne: The OBR also makes a projection for measures next year and over the next three or four private sector employment and takes into account all years. If they did not take those measures, the country’s the potential impacts on that, and it finds that a net situation would be even more difficult. 1.1 million jobs will be created over the period: there Frankly, we should have some respect for the incredibly will be 30 million people in employment at the end of difficult situation in which Ireland finds itself. We should this Parliament, compared with 29 million today. take some comfort that, because of the measures that we have taken on our public finances, we in this House Jonathan Edwards (Carmarthen East and Dinefwr) are able to help the country and that we are not in the (PC): In bringing forward their national insurance proposals firing line in the way that we would have been if the the Government accept that their fiscal consolidation Labour party had won the election. 549 Autumn Forecast29 NOVEMBER 2010 Autumn Forecast 550

David Rutley (Macclesfield) (Con): Despite the excessive Mr Osborne: I will tell the hon. Gentleman what this nay-saying from the Labour party, is the Chancellor issue is about: the hypocrisy of the Labour party. Labour aware of a recent report from Barclays bank that outlined Members set up Lord Browne’s report, and the shadow that the majority of businesses in the north-west—our Chancellor was in the Cabinet that agreed to that. Lord region—are looking to expand in the year ahead? Will Browne has reported, and now they are all walking he tell the House what steps he is taking to support away from it—it is absolutely pathetic. small and medium-sized enterprises, which, in the years ahead, will be the growth engine for job creation? Mr Rob Wilson (Reading East) (Con): Compared with June, the OBR predicts, in table 4.21 on page 118, Mr Osborne: We avoided the increase in the small that we will save £19 billion in interest payments. Contrary companies rate that the previous Government wanted to what the shadow Chancellor said, are not the choices to introduce even in a recovery. We have been able to made by my right hon. Friend the right ones to ensure avoid the damaging part of the jobs tax. Of course, my that we have this £19 billion to spend on schools and hon. Friend is absolutely right. The forecast in this hospitals rather than putting it in the pockets of foreign report and the forecast from many other people is for Governments and private bondholders? jobs to be created in the private sector across the country, including in the north-west—a part of the country that Mr Osborne: My hon. Friend is absolutely right. This both of us represent in the House. Frankly, one can see is one of those issues that is perhaps less commented again today that the Labour party wants to talk down on, but very relevant. We are reducing the debt interest the economy, does not believe independent forecasts payments that we inherited from Labour, and the debt and talks down the regions. It is no wonder that people interest bill—the money that we have to pay out to rejected it at the election. private bondholders and foreign Governments to borrow—is coming down from the number that we Bill Esterson (Sefton Central) (Lab): Was the Chancellor inherited. That is £19 billion that would otherwise, if we talking a “complete load of nonsense”, as he put it followed the Labour party’s plans, be being paid to earlier, when he said foreign Governments and private bondholders. That is “Look and learn from across the Irish Sea…What has caused how Labour Members want taxpayers’ money spent; we this Irish miracle, and how can we in Britain emulate it?” have other plans for it. Does he recognise that a private sector recovery has not happened in Ireland? Why should following the same Mark Reckless (Rochester and Strood) (Con): Instead policies be any different here? of lending to Ireland to repay the European Central Bank and bolster bank capital relative to large impaired Mr Osborne: If the hon. Gentleman cannot tell the assets, might it not make more sense to help Ireland to difference between the economic situations in which de-leverage by buying some of those written-down assets Britain and Ireland find themselves today perhaps he directly, particularly where they are in the UK and are should not turn up to these events. not well managed by the National Asset Management I just make this observation. This is an independent Agency? report, produced by Robert Chote. [Interruption.] I have had a lot of chuntering from Opposition Front Mr Osborne: The support for Ireland had to be a Benchers about the independence of the Office for co-ordinated international effort with the IMF and Budget Responsibility. We set it up on an independent other European member states, and we have taken our basis and we have given all members of the Treasury part in that. I do not think that coming up with our own Committee the right to approve or reject the members unilateral package would have been particularly easy of the budget responsibility committee. We will see when, as I said, the IMF was organising this international whether Opposition Members, including Front Benchers, effort. I have already said in reply to an earlier question support this legislation when it comes before Parliament. that of course we will want to look at the impact of the At the moment, it does not sound as if they will support banking reorganisation in Ireland on some of the assets it, but perhaps they will change their minds. that are managed in the UK, and I will keep the House informed about that. Mr David Nuttall (Bury North) (Con): Is my right hon. Friend as concerned as I am that over-prescriptive Jessica Lee (Erewash) (Con): I welcome my right regulation such as that proposed by the Financial Services hon. Friend’s statement, particularly on the investment Authority’s retail distribution review may result in a loss of GlaxoSmithKline in a new facility at the university of jobs? of Nottingham in Erewash. Does he agree that ring-fencing the science budget, bolstered by his coming to this Mr Osborne: I know that a number of concerns have House today and presenting figures of growth and been raised about the FSA’s review of that area. Obviously, stability for the UK economy, sends out a clear message it is an independent regulator, but I have made sure that to the rest of the world that the UK, particularly the those concerns have been drawn to its attention. east midlands, is an excellent place in which to invest and build? Karl Turner (Kingston upon Hull East) (Lab): Does this apparent good news mean that the Government Mr Osborne: I completely agree with my hon. Friend, can now spare the blushes of the disgraced Deputy who has been a powerful champion of the east midlands Prime Minister and of Government Members by scrapping and of her constituency in the few months since her plans to hike university tuition fees, or is this really election. I know that she will welcome the announcement about pure ideology—rich kids can afford to go to by Glaxo, which is because of the decisions that we have university and poor kids cannot? taken. Of course, the support for job creation in the east 551 Autumn Forecast 29 NOVEMBER 2010 552 midlands and across the country would not be there if Points of Order we had a fundamentally unstable economy of the kind that this Government inherited in May. 4.47 pm Justin Tomlinson (North Swindon) (Con): What measures Keith Vaz (Leicester East) (Lab): On a point of order, are being taken to maintain the low interest rates that Mr Speaker. I seek your guidance on a potential issue of are essential to mortgage holders in my constituency? contempt. Last Friday, the Clerk of the Home Affairs Committee was contacted by the Press Association to Mr Osborne: The Bank of England Monetary Policy inform him that it was in possession of a recording of a Committee sets interests rates, and does so independently. private session of the Committee in which one of our The purpose, in part, of the measures that we have reports was discussed. On Tuesday, we held a public taken to reduce the deficit is to give the Monetary session before going into private session and the live Policy Committee the maximum possible flexibility and feed remained on, due to a technical problem in Committee freedom in setting the appropriate monetary policy to Room 5. To its credit, the Press Association agreed not stimulate demand in the economy. I believe that that has to publish or broadcast the Committee’s deliberations, enabled it to keep interest rates low, which helps to but instead reported the fact that the feed had remained stimulate the economy. open. When such a matter occurs, is a news organisation able to broadcast a private session of a Committee, or is Charlie Elphicke (Dover) (Con): Will the Chancellor that regarded as a contempt? We assumed that it was a confirm that the corporation tax reforms that were contempt, but, as I said, the PA did not broadcast what announced today will make the UK more attractive as a we said. It would be good to receive clarification on that holding company jurisdiction and help to make the UK matter and to hear whether there might be an investigation a pre-eminent corporate headquarters centre, as much into the technical matters in Committee Room 5 to as a financial centre? ensure that it does not happen again.

Mr Osborne: My hon. Friend is absolutely right that Mr Speaker: I am grateful to the right hon. Gentleman the reforms will help to do that. They will help the UK for his point of order and for giving me advance notice to be an attractive place for international companies of it. I understand from the advance notification and to locate, invest and create jobs. The changes to the from what he has just said that there was a technical patent regime will help a number of sectors, such as problem with the recording of his Committee’s meeting pharmaceuticals. I mentioned GlaxoSmithKline, but of last week. There is not really a procedural solution that course Pfizer is a big employer near Dover, and I hope I can offer him or the House, but I am advised that all that it, too, will benefit from the announcements that necessary steps are being taken to avoid a recurrence. If we have made. no harm was done, I am sure that the Committee and its illustrious Chairman will be relieved. In essence, he Chris Ruane (Vale of Clwyd) (Lab) rose— asked me a hypothetical question—whether it would have been a contempt, and so on and so forth. I think Mr Speaker: Order. Was the hon. Gentleman present that he is capable of working out such matters for at the start of the statement? himself. On this occasion, I hope that he will understand it if I adopt the approach of the late Lord Whitelaw, Chris Ruane: I was. which was that on the whole, judging from experience, he preferred to cross a bridge only when he came to it. Mr Speaker: He was uncharacteristically quiet throughout it. Stella Creasy (Walthamstow) (Lab/Co-op): On a point of order, Mr Speaker. I wish to ask for your help as a Chris Ruane: I was right here at the back, Mr Speaker. new MP baffled by the actions of Government Departments In my constituency, 46% of the workers are in the that may wish to avoid scrutiny in this place. public sector. In one Edinburgh seat, the figure is 66%. My hon. Friend the Member for Middlesbrough Those are huge numbers of public sector workers and South and East Cleveland (Tom Blenkinsop) and I many of them will be laid off. What additional help can tabled questions for today’s Culture, Media and Sport the Chancellor give to constituencies that contain large Question Time on the impact on participation in sport numbers of public sector workers? of the proposed abolition of school sport partnerships, which were accepted by the Table Office and drawn in Mr Osborne: First, we are seeking to reduce the the ballot for answer. Subsequently, the DCMS summarily impact of the fiscal consolidation that would have moved them to other Departments for answer, and taken place under either the Conservative or the Labour having seen today’s Question Time, we may understand party in office. We are doing so in a way that, as the why it chose to avoid them. Could you help me understand OBR has today shown, has a reduced impact on public how that occurred, and would it be possible to look at sector headcount loss. Secondly, we are putting in place the current procedures to help prevent Ministers from a comprehensive Work programme to help people who using them to park matters that they are too embarrassed are without work to find work. Thirdly, today’s forecast to deal with, and indeed from further diluting scrutiny is that more than 1 million new jobs will be created over of their actions by making such questions eligible only this Parliament. That will help all constituencies, including for a written answer? the hon. Gentleman’s. Mr Speaker: I thank the hon. Lady for her point of order. That is a very unfortunate sequence of events, and I am afraid that there are really only two points that 553 Points of Order 29 NOVEMBER 2010 554 [Mr Speaker] Backbench Business I can make to her today. First, the decision as to whether to transfer an oral question from one Department [11TH ALLOTTED DAY] to another is exclusively a matter for the Government. It is not a matter for, for example, the Chair. Secondly, as I have had reason to state on several Banking Reform previous occasions, I strongly deprecate the practice of late transfer of oral questions by Government Departments. Mr Speaker: It might be for the convenience of the It could have been done earlier. It is very unseemly and House to know that I have imposed, on account of the very discourteous to Members, and whatever the motivation level of interest in this subject, a six-minute limit on behind it, it will inevitably fuel the type of suspicion each individual Back-Bench contribution, such limit to that the hon. Lady has eloquently articulated this afternoon. take effect when the mover of the motion has completed I am pleased that the Deputy Leader of the House is on his speech. I would add also for the benefit of the the Treasury Bench and will have heard that point. I House that I have selected neither of the amendments hope that it will not be necessary continually to repeat it. on the Order Paper.

4.52 pm Mr Michael Meacher (Oldham West and Royton) (Lab): I beg to move, That this House, concerned that no action has so far been taken which would prevent a recurrence of the financial crash, calls upon the Government to establish a clearing house for approval of all financial derivatives and to set in place alternative mechanisms to remove the implicit taxpayer guarantee, other than to purely deposit-taking banks, in the event of any future banking collapse. The motion is on the Order Paper through the good offices of the Backbench Business Committee, and I take this opportunity to congratulate the Committee and its Chair on the way in which, in my view, they have already opened up Parliament to valuable new procedures and paved the way for important debates that might otherwise not have happened. I hope and believe that this might be one of them. I begin with the words of the managing director of the International Monetary Fund, Dominic Strauss-Kahn, who a few weeks ago told Stern magazine that he thinks a second financial crisis is almost inevitable given the paucity of reform and the vulnerability of the financial system, and that next time round it may well be impossible to persuade taxpayers to fund bail-outs. I do not believe that is an exaggeration, and the latest travails of the eurozone serve only to underline those fears. It is worth noting that we in the UK have more bank lending as a proportion of our gross domestic product than even the Irish—some £7 trillion, which is five times our GDP. If we are to prevent a repetition of the financial crash, it is clear that its causes must be identified and dealt with by appropriate means. I argue that those causes, in the main, include: an over-lax monetary policy that encouraged an excessive leveraging culture; extreme light-touch regulation that left too much to the markets; the development of a vast global market in credit derivatives, which were not well understood, and which Warren Buffet, the world’s second richest man, notably described as “financial weapons of mass destruction”; the role of enormous bonuses, which drove recklessness; a banking structure so over-concentrated in the lead banks that when disaster struck, they were judged to be too big to fail, with catastrophic consequences, as all hon. Members well know, for national debt and the budget deficit; and a banking model that linked speculative investment with retail deposit taking, both of which 555 Banking Reform29 NOVEMBER 2010 Banking Reform 556 were protected by an implicit taxpayer guarantee. I Sajid Javid: Does the right hon. Gentleman realise hope that that description is accepted on both sides of that the price of credit derivatives over the past three or the House. four years has been far more accurate as a predictor of All those causes need to be dealt with, and yet none default risk than the credit ratings given by rating has been. Given the limited time, of which I am very agencies? conscious, I want to concentrate on the most important. First, financial derivatives are a perennial candidate for Mr Meacher: The hon. Gentleman makes a good causing the next crisis, because they add opacity and point of which we need to take account, but I still think leveraging to the financial system. Credit default swaps, that the credit rating agencies potentially have an important a £65 trillion market, and collateralised debt obligations, role. They are listened to in the market, are the basis on which are one of the most common derivatives, urgently which financial transactions take place, and should be need regulation. trusted, but in the present circumstances they are certainly not. However, I am grateful for his question. Mr John Redwood (Wokingham) (Con) rose— On bonuses, there is outrage among not just Opposition Members but, for example, right-wing Governments in Mr Meacher: I will give way to the right hon. Gentleman, Germany, France and Sweden, that a banking system but having heard what Mr Speaker said, I am reluctant that owes its continued existence to massive Government to take more interventions, precisely because this is a intervention should pay itself mega salaries and bonuses very short debate—only three hours—and many wish entirely out of line with the top of business, let alone to speak. We already have a six-minute limit, and I have ordinary taxpayers. There is outrage especially because too often been at the back of the queue, unsuccessfully those gigantic bonuses often drove the recklessness in waiting to be called at the end. the first place. The overweening power of the banks attracts almost universal hostility, especially given that 90% of investment bank profits, in an era of austerity, Mr Redwood: I am grateful to the right hon. Gentleman, are directed not at strengthening balance sheets, at and I shall refrain from intervening at great length for shareholders through dividends, at customers through the very reason he gave. Will he explain to the House lower fees or at taxpayers, but at bonuses. why over the past decade the UK banking regulator allowed the huge expansion of balance-sheet risks of all France, among several others, has demanded a kinds, and why it did not demand more cash and mandatory cap and that there should be no guaranteeing capital? of bonuses, but Whitehall, as usual of course, argues that it would not be practical. However, if the G20 Governments insisted on limits and made continued Mr Meacher: I mentioned light-touch regulation in liquidity provisions dependent on compliance, no bank the City of London, which we have had since the could refuse. I believe that Her Majesty’s Government Thatcher era and through the Blair era. I believe that should now be taking the lead in the G20 not in that needs to end. We want not excessive but adequate succumbing to lobbying from the City of London and and proper regulation, and for the past three decades, in the British Bankers Association, but in reining back the so-called neo-liberal era, we have not had it. bonuses on a much greater scale than we have so far Derivatives should be approved by the regulatory seen, and to much lower levels, and in ensuring that authority before they can be issued. At that stage, they they be paid only in exceptional circumstances. can be either prohibited or accepted, perhaps with certain conditions attached. The key point is that On the broader question of averting future financial transparency is essential. It is worth noting that the crises, attention has so far largely focused on enhancing recent Dodd-Frank Wall Street Reform and Consumer capital control, but that does not actually have a good Protection Act seeks to achieve that by requiring that record in this regard. At the outset of this latest crisis, all derivatives are traded on public exchanges. virtually all financial institutions across the globe had capital adequacy of between one and two times the Linked to that is the role—or perhaps the scandal—of minimum Basel regulatory requirements—at least at the credit rating agencies in allocating a spurious status that level, and in some cases twice as much. Basel III, to some highly dubious securities. Light-touch regulation which has just reached its provisional conclusions, is in this country has evaporated into virtual deregulation. scarcely any improvement. The core top-tier capital Credit rating agencies were paid by the very institutions requirement is only 4.5%, and the contingency capital whose credit worthiness they were supposed to be assessing. requirement is only 2.5%. Of the EU’s top-50 banks, By granting the highest rating, as they so often did, they 45 already meet that standard, and Basel III is actually made it easier for the banks that were securitising and proposing that the requirement not be introduced until further repackaging debt to create the greatest possible 2019. This is simply nowhere near good enough. A number of securities with the lowest possible regulatory much better possibility might be counter-cyclical capital cost. That practice should never have happened, and I controls, enforcing different levels of bank capital at believe that it should always be prohibited where there different stages in the economic cycle. I can see the is a serious conflict of interest, as there was in that case. point of that, but I suspect that it would leave open the problem of the degree of ratchet and the timing of it. I Sajid Javid (Bromsgrove) (Con) rose— suspect that that would be far too problematic. An alternative approach—many have talked about Mr Meacher: I know of the hon. Gentleman’s expertise this—is the introduction in Britain of something like in this matter, and I will give way to him, but I will not the Volcker rule, restricting banks from undertaking give way subsequently because I want to speak for only certain kinds of speculative trading, notably proprietary about a quarter of an hour. trading. Of course that would certainly stop banks 557 Banking Reform29 NOVEMBER 2010 Banking Reform 558

[Mr Meacher] banking model could, by itself alone, be relied on to overcome the problem of moral hazard and too big doing what they are doing at the moment, which is to fail. trading on their own books with the money of depositors. Does that mean that there is no solution to the too The key point, however, is that it would not overcome big to fail problem? Not necessarily. There is an alternative the too big to fail problem when applied to investment to narrow banking as a means of preventing a bank banks. For example, I do not think it would prevent a from gambling away other people’s money, which is the repetition of the collapse of Lehman Brothers; neither recent Kotlikoff proposal in the US. It is a proposal that would it address the interconnectedness—the Chancellor deserves serious consideration—consideration that I hope was speaking about this a few moments ago—of today’s the Vickers commission will give it. In the US context, it banks, with counter-party relationships and exposure is proposed that all financial companies become pass- between commercial and investment banks, and insurance through mutual funds. They would have a 100% equity companies. That is the problem. I say this with regret, ratio, to ensure bank solvency, and the payments function but any rule-based reform is almost certain to face the of banks would be performed by cash funds that would risk of regulatory arbitrage, because financial institutions be 100% reserve—for example, through Treasury bonds. invent ever more sophisticated products that are simply Such banks could, of course, still initiate new mortgages aimed at getting around regulatory controls. I therefore and new loans, but these would not be funded through do not think that what I have described is an adequate deposit accounts until they had been sold to a mutual answer. For all those reasons, the force of argument and fund. The key point is that the bank would never hold the balance of advantage point strongly towards separating them; in other words, the bank would never have an retail from investment banks, in establishing distinct, open position. Banks would not own assets—apart, of narrow banks that are conservative, transparent institutions course, from their offices and so on—and they would with no financial instruments or incomprehensible balance not then be in a position to fail or trigger a bank run. sheets. That is a significant proposal. For those—and there are plenty of them—who want rose— Mr Andrew Tyrie (Chichester) (Con) to take greater risks beyond a cash-based mutual fund, there are already hundreds of investment avenues that Mr Meacher: I am being intervened on by someone would continue to be available, such as foreign exchange, whom I cannot resist. I am only too glad to give way to derivatives, real estate, hedge funds and all the rest. The the Chairman of the Treasury Select Committee. key difference with this limited-purpose banking would Mr Tyrie: I am grateful to the right hon. Gentleman. be that any failure in such investments would be incurred On that point, does he agree that the Government have by the investor, not by the bank. That is the crucial done the right thing by creating the Vickers review? The point. There would be no problem with the banks being review will examine, in depth and carefully, without too big to fail or trying to insure the uninsurable risk of rushing a reform, whether structural reform of the financial contagion. Critically, there would be no future banks is required, and will give us guidance on how to claims on the taxpayer. protect ourselves from the too big to fail problem. This reform would overcome a critical market failure without the need for any vast new complex regulation. I Mr Meacher: I entirely agree with that, and I was just say that for the benefit of those on the Government about to make the same point myself. I hope I can also Benches. It is, in effect, a market solution. It is true that take the hon. Gentleman with me when I say that it would not necessarily prevent asset bubbles—I do not Parliament should have the opportunity to express its think that anything can do that, certainly not in this views to the Vickers commission before it reports, rather area—but under limited-purpose banking, such bubbles than simply making comments when its work is virtually would not threaten the entire financial system. Anyway, a fait accompli. Indeed, that is one of the purposes of there would be nothing to preclude some form of macro- this debate. prudential authority from having oversight in this area. The key advantage claimed for the model that I am I think that that would be a very good idea. describing is that it would remove the implicit taxpayer I am not suggesting that this reform would be a guarantee—that is, the capacity of the financial panacea, because I do not believe that a panacea exists conglomerates to use retail deposits, which are implicitly in this area. It should, however, be thoroughly investigated guaranteed by Government, as collateral for proprietary by the Vickers commission and, I hope, by the Government. trading; or, as the Treasury Committee put it, I think I do not think it is an exaggeration to say that at present rather nicely, banks playing Britain has the most profoundly dysfunctional banking “at a high-stakes casino table with…taxpayers’ chips.” system of any G7 country. It came nearer to collapse than any other in the autumn of 2008. I believe that we I have a lot of respect for this model, but the crux of it is need to break up the mega-banks, with their addiction that the withdrawal of the taxpayer guarantee would be to mortgage lending. We need smaller banks and, in a sufficient deterrent to prevent investment banks from particular, specialist business banks such as infrastructure engaging in highly risky investments that might collapse, banks, housing banks, green banks, creative industries with serious and far-reaching consequences for the national banks and knowledge economy banks. Only that kind economy. The real question—which I do not think of fundamental reform of the banking system, involving enough people have asked—is whether that is likely to all the elements that I have described, can provide the be true. The fact is that if a financial institution outside foundation for the economic and social transformation the protected narrow banking boundary threatened systemic of this country that we all want. I commend the motion contagion, it is difficult to believe that the Government to the house. would not attempt some form of bail-out. I therefore have to say, regrettably, that I doubt whether the narrow Several hon. Members rose— 559 Banking Reform29 NOVEMBER 2010 Banking Reform 560

Mr Deputy Speaker (Mr Nigel Evans): Order. A six- If a whisky distiller sold empty bottles or a food minute limit will apply to all Back-Bench speeches. manufacturer sold empty food packets, they would be done for selling thin air, yet banks are essentially allowed to sell empty IOU promises—and people dare to call 5.12 pm that the basis of the credit system that fuels capitalism. No wonder capitalism appears to be at risk. We have a Mr Douglas Carswell (Clacton) (Con): I congratulate crony system of corporate capitalism rather than free the right hon. Member for Oldham West and Royton market banking. (Mr Meacher) on securing this debate. He made some important, and actually rather sensible, points and gave Since the credit crunch, experts in orthodoxy have a powerful critique of the status quo from a position on talked about three different solutions, the first of which the left. However, as a free marketeer, I have to disagree is low interest rates. We have had pretty low interest with him. I believe that we need a free-market critique rates, and do you know what? It has not really stimulated of the status quo, but the centre-right has failed to think an increase in the supply of credit. That should not critically about the status quo for too long. The right surprise us. Keeping prices low does not stimulate hon. Gentleman has therefore done us a great service by production. Secondly, people have printed more money: forcing Conservative Members to ask the questions that big government has shored up a big corporatist banking for years we have failed even to ponder. We are in this pyramid on the back of the real wealth creators. It is a mess not because of an absence of the free market but system of indirect taxation, inflation and debauching because we do not have a proper system of free-market the currency. Thirdly, people have talked about breaking banking. It was not the markets that caused the banking up the banks. mess that we are in; the markets called time on other I disagree with all those proposed solutions, but I people’s unsustainable folly. They called time on an take issue particularly with the idea of breaking up the unsustainable credit boom and on the folly and stupidity banks. I think that instead of crude institutional separation of central bankers. of the banking system, we need an alternative that Banking is undoubtedly corporatist. To put it another allows legal separation within existing banking structures. way, if one were to read Ayn Rand’s “Atlas Shrugged” We need a new legal status for deposits, so that a and to replace the words “railroad” and “rail company” depositor who opens an account can choose to ensure with the words “credit” and “bank”, one would get a that his deposits are legally his property, and the bank pretty good description of what has been going on in cannot endlessly lend against them. That would not recent years. We have had a failure of the free market in abolish fractional reserve banking, but it would allow the allocation of credit in this country. It is extraordinary us to decide over a long period, organically, whether we that we compound that failure by talking ourselves into needed to move away from the banking system that we seriously suggesting that politicians and technocrats have at present, which allows endless candyfloss credit should ration credit. The absence of a pricing mechanism to be manufactured. at the heart of the banking system is ultimately what Banks do need reform, but I do not believe that they caused the credit boom and the banking failure. In a need more controls. We need to address fundamental normal market, when demand for a product increases, flaws in the banking system, but in a way that ensures the price for that product goes up. That, in turn, stimulates that the pricing mechanism allocates the supply of supply. credit properly. We need less from central banks and fewer controls from central bankers, not more. In banking, unfortunately, things are a little different. When demand for credit increases, the price—the interest rate—is kept low or constant. Pricing does not therefore 5.18 pm stimulate increased supply. On the contrary, a supply of Mr William Bain (Glasgow North East) (Lab): It is a additional credit is not met through higher savings. It is pleasure to be able to contribute to this important met by the creation of candyfloss credit—by banks debate. I thank my right hon. Friend the Member for being able to conjure up credit out of thin air. Banks do Oldham West and Royton (Mr Meacher) for having the not meet the additional supply of credit by encouraging good sense to persuade the Backbench Business Committee more people to save; on the contrary, they continue to to secure it. It is also a pleasure to follow the hon. lend IOUs on the basis of IOUs on the basis of IOUs. Member for Clacton (Mr Carswell). I agreed with some At the height of the credit crunch, for every pound of his remarks, particularly the one about breaking up deposited in a bank, IOUs had been written out some the banks. 44 times through the miracle of fractional reserve banking. When I was preparing for the debate, I had occasion— Banks have a legal privilege to conjure up credit out and a little more time than I expected, owing to my of nothing that ultimately stems from their ability—this difficult journey from Scotland to London today—to is an extraordinary fact—to call a depositor’s deposit examine an excellent study of the banking crisis by their own, to treat it legally as if it were their own, and three major economists in a book entitled “Balancing to lend against it many times. It is that practice that has the Banks”, by Mathias Dewatripont, Jean-Charles Rochet resulted in a credit pyramid and runaway credit booms, and Jean Tirole. Jean Tirole’s chapter in particular unrestrained by the pricing mechanism that would normally details, in very precise order, the reasons for the crisis apply and would normally restrain demand and supply. and makes several points. First, it deals with the crisis in The demand is unrestrained, the supply is unrestrained, United States home loans, which spread to other sectors and the price is low. The result is Ponzi credit bubbles. and other countries. The staggering expansion in the An incredibly distortive and disruptive effect is created level of securitisation partly explains the difficulties every 20 or 30 years in supposedly free-market economies that the US banks got into. Between 1995 and 2006 the that have corporatist banking at their heart, and it leads proportion of loans that were securitised rose from 30% to sugar-rush booms. to 80%, and the proportion of sub-prime loans that 561 Banking Reform29 NOVEMBER 2010 Banking Reform 562

[Mr William Bain] they are unable to achieve a global deal, the UK and the EU should be prepared to take a lead in giving greater were securitised increased from 46% in 2001 to 81% in transparency and reducing some of the terrible incentives 2006. Jean Tirole also points out the lack of high-quality to sharp practices in the last decade. collateral backing many of these loans, which particularly Across the world, we are seeing the terrible effects of came to our attention when the inter-bank bond and a credit crunch causing a banking crisis, in turn causing derivatives markets simply froze up. Added to that, a deficit crisis and then a growth crisis. In the coming excessive liquidity fed the demand for securitisation. As months and years, we need to put in place a policy that my right hon. Friend the Member for Oldham West and sorts out the system for good. We need a policy that Royton pointed out, monetary policy was also very learns the lessons from the crisis and ensures the loose, particularly in the United States, and the performance taxpayer never has to foot a huge bill for the terrible of credit rating agencies hardly covered them in glory. behaviour of a greedy few. Another important point in understanding what went wrong is the failure of international regulation of the 5.25 pm banks. For example, the level of off-balance-sheet liquidity support increased hugely, especially in America. There Sajid Javid (Bromsgrove) (Con): I thank the right has also been a need to rediscover what prudential hon. Member for Oldham West and Royton (Mr Meacher) regulation of the banking system should be about. It for securing this debate, which is a valuable one to be should be about, first and foremost, protecting small having in the House. I draw the attention of hon. depositors and investors, but also containing the domino Members to my entry in the Register of Members’ effects of systemic risk. Financial Interest, which is a legacy of my spending We should therefore welcome some of the 18 years in the banking industry. Before Labour Members recommendations of the Basel Committee on Banking get a bit too excited by that revelation, as many have Supervision. The key failure of Basel II was its reliance unfortunately done in the past, I should say that for the on pro-cyclical capital controls, and one of the Basel III past three or four years I felt that the profession of reforms we should welcome is the introduction of counter- banker was possibly the worst to have in the eyes of the cyclical buffers. I think it is also true to say that Basel II public, but that was before I became a Member of this was too complex. It was based on a pillar structure that illustrious House. was both difficult to understand and unable to anticipate The motion states that we want to systemic risks to the banking system or, indeed, manage “prevent a recurrence of the financial crash”. financial innovation. As my right hon. Friend pointed Obviously we are all united on that, but it is important out, it was unable to predict the chaos that credit that we examine the causes of the crash, which we could default swaps and collateralised debt obligations would debate for a long time and go round in circles. I am sure create throughout the world. There needs, therefore, that many rational people will disagree on the responsibilities to be an increase in the capital and liquidity banks of banks and bankers. I may have misunderstood the should hold. motion, but it seems to suggest that banks are entirely I disagree, although only slightly, with my right hon. responsible for the financial crash. That is wrong and it Friend in one respect, however. Basel III does introduce does not do justice to Members of this House or to our a powerful counter-cyclical element of up to 2.5%, constituents in preventing something like this from which may be significant in preventing future problems. happening again. There is also a balance to be struck. The financial crash happened because too much money was chasing too few assets—financial assets or Charlie Elphicke (Dover) (Con): Is the hon. Gentleman real assets such as real estate. There are three principal aware that Basel III also seems to introduce an incentive reasons for that, the first of which was that world for increased invoice discounting and trade factoring, financial reserves, particularly in the east, were growing and is that not slightly undesirable? at a substantial rate. Indeed, they continue to do so, as more people in the west consume goods from the east. Mr Bain: The hon. Gentleman raises an interesting To give just one illustration, China’s financial reserves point. I was about to make the point that Basel III in 1990 were $165 billion but today they are $2.65 trillion. strikes a balance between protecting the taxpayer and Those reserves needed to find a home. the state and promoting economic growth. I understand The second reason is that commodity prices have the banks have been lobbying to try to diminish some of grown substantially, partly as a result of the growth of the effects of holding extra capital. Indeed, when I met the east and other emerging markets, and that has led a representative from Lloyds Banking Group in Glasgow to a substantial increase in sovereign wealth funds, on Friday, he lobbied me to take that position. both in the middle east and in other markets. Those What we have witnessed is a crisis that began in the funds also needed to find a home, and they created a housing and asset price markets in America. It spread colossal wall of money when combined with the to other countries and to the banks of other countries, financial reserves. and it has now also spread to the state. It is important The third reason is something that bankers have that the taxpayer can see that there are buffers to called the “Greenspan put”. Alan Greenspan became prevent the state from having to bail out banks across chairman of the Federal Reserve in 1987, just before the the globe. Having a counter-cyclical element should Wall street crash, and one of the first things he did help achieve that. when he found a problem in the financial markets and a The Government should continue the work the previous potential crisis brewing was to lower interest rates as Government did in pursuing the issue of getting a quickly and as substantially as he could. That happened global deal on bankers’ bonuses. If they do not, or if again when the US Federal Reserve led the way after the 563 Banking Reform29 NOVEMBER 2010 Banking Reform 564 dotcom bubble burst in 1991, again when Russia had 27-year-old with a degree in biology. It is no wonder problems and there were problems in Asia, and it has that problems started to happen. We do not necessarily just happened again. Bankers have got used to that need more regulation, just smarter regulation. approach and it results in what the markets call a “put”, There are many issues to consider that we could whereby they feel they can sell assets if things go wrong. debate for a long time. Banking regulation is one such That has encouraged bad behaviour and a moral hazard: issue, but we do no service to our constituents if we the idea among many bankers of “heads we win, tails merely focus narrowly on it when we consider the the taxpayers lose”. lessons of the financial crisis. In addressing these issues, we must not forget those key facts about what caused the crisis. However, bankers did play a significant role and there are things 5.32 pm about banks that we need to examine. Although there Mr George Mudie (Leeds East) (Lab): I compliment are issues to address in respect of financial derivatives, the hon. Member for Bromsgrove (Sajid Javid) on a I would not make that the key priority. The first thing thoughtful speech. At one point, I disagreed with him to examine is the idea of retail banks and commercial and at other points I found myself very pleased with the investment banks acting as one entity, because that sentiments that he expressed. The Backbench Business seriously needs to be looked at. Committee deserves congratulation for tabling the motion I started working in the banking industry in New and I hope we will have more opportunities to discuss York in 1992. Under the Glass-Steagall Act, which was the subject in Government time. We must reach consensus in place at the time, the bank I worked for had to have if we are to get this right. a completely arm’s length relationship with its retail I worry, particularly against the background of what banking division. That made a big difference to the is happening in Ireland, that we are going too slowly. risks the bank took or even contemplated taking. That There was an argument in the beginning that we should situation changed in the late 1980s in Britain, when the not do things in haste and that was sensible, but three big bang took place and the implied Glass-Steagall years on from the time Northern Rock went down we arrangement disappeared, and it formally changed in should be starting to implement some of the measures, the United States in 1999 when that Act was removed. not merely discussing them. I know that there is an It is vital to examine that. The second thing to look at international context, but on the domestic front we is, as has been mentioned, banking capital itself. should be further forward than we are. The Government’s amendment mentions matters such Mr Chuka Umunna (Streatham) (Lab): Would the as “regulatory architecture” and “prudential regulation”, hon. Gentleman be prepared to share his thoughts on both of which are part of the package that is going whether we should return to a Glass-Steagall model, through the Select Committee on the Treasury and that which I understand the Clinton Administration did will eventually come to the Floor of the House. I am away with when in office? not sure that they alone will matter. Basel III, according to the Governor of the Bank of England, “won’t prevent Sajid Javid: There are some considerable merits in another crisis”. I think that is fair. that model and given what has happened we should So, Basel III, regulatory architecture and prudential consider it seriously. I hope that the Vickers commission regulation are what the Government initially—certainly does that. in this low-key debate—are putting forward as important. Secondly, we should consider the banks’ capital They are secondary to an acceptance by those who are requirements. It is right that under Basel III capital in the banks and who own the banks of the fact that requirements should be lifted. The core tier 1 capital they need regulating and that they should share the requirement will be lifted from about 2% for banks to objectives of the regulators. Sadly, in the past three about 7%. Some points are still missed, however. The years I have not seen any signs that that has been focus is far too narrowly on the default risk of assets accepted at a senior level in the banks. If we were to and we have strange incidences even with default risk—for look for one person, organisation or thing that started example, under the new proposals industrialised sovereigns or caused the crisis, we would be wrong, but central to it are still considered to be risk free. As we speak, Ireland’s were the banks’ securitisation exercises and adventures, 10-year Government bonds are trading at more than which paralysed the whole financial structure and the 11%, Spain’s 10-year bonds are trading at more than 6% wholesale markets. They must be accepted as a major and Germany’s are trading at more than 2.5%, but they part of where we are now and of what we have gone are all treated as zero-risk weighted and no risk capital through. will be set aside. No account is taken of liquidity, either. One of the largest problems for banks over the past Jim Shannon (Strangford) (DUP): The last bank three or four years was lack of liquidity, but the capital bail-out—for the Royal Bank of Scotland, Lloyds TSB requirements do not take full account of that. and HBOS—cost £37 billion and we were told that One of the biggest mistakes that made Britain’s situation there would be conditions on staff bonuses, but nothing far worse than that of other countries was the change in has happened in the past three years. Does the hon. regulation when Tony Blair’s Government first took Gentleman agree that one of the things that annoys office. The jobs of people at the Bank of England, who people the most is the bonuses that go to staff members knew what they were doing, were taken over by people when the banks are not doing their job? at the Financial Services Authority, who did not know what they were doing. I remember an FSA audit where Mr Mudie: The hon. Gentleman makes a very powerful the chief auditor of my credit derivatives book, which point which links with a point I was about to make. I had a market value of more than ¤100 billion, was a have described the regulatory structure. There are differences 565 Banking Reform29 NOVEMBER 2010 Banking Reform 566

[Mr Mudie] real interests will be satisfied because we will get people in the financial world to focus on the productive side of between regulators throughout the western world, but the economy. the fact that they were all caught out shows that structure is secondary and that changes to structure alone will 5.39 pm not prevent another crisis. We have all been affected Andrea Leadsom (South Northamptonshire) (Con): despite those different structures, so one cannot attack It is always a great pleasure to speak after the hon. regulatory structures or see them as a salvation. I regard Member for Leeds East (Mr Mudie), who is a colleague such restructuring as simply rebuilding the Maginot on the Treasury Committee. He always talks a lot of line: it shows the public that we are doing something, sense and has explained clearly how frustrated people in that we are hard at work and that there is something Britain feel about bankers’ bonuses. concrete, but when it comes to effectiveness, it would suffer from the same deficiencies as the original Maginot I am amazed at the wording of the motion. To line, so I do not think that structure matters. suggest that no action has been taken so far to prevent a recurrence of the financial crash is quite bizarre. If the banks, the bankers and their shareholders do not accept that they have to change their practices then Andrew Bridgen: The hon. Member for Leeds East what do we have? We have no regret from the banks and (Mr Mudie) talked about no regrets, no contrition and no acceptance that they played a part in events. Let us no admission of guilt for taking bonuses. Does my hon. consider their behaviour over bonuses. Friend think he was talking about the bankers or former Labour Front-Bench Members? Andrew Bridgen (North West Leicestershire) (Con): Will the hon. Gentleman give way? Andrea Leadsom: To give a cautious answer, I think there was an element of both. Mr Mudie: Let me finish my point and I certainly Last week, I had a meeting with senior bankers and will. The behaviour of the banks over bonuses at the the chief counsel of one bank. They certainly have the senior level is obscene and offensive to every one of our sense that the world has changed dramatically for them constituents. At a meeting on Saturday morning, I since the financial crash. As we would expect, both spoke to someone whose wife works for Halifax. She is internal and external forces have combined to change going to lose her job. If one speaks to people in every things significantly. Tier 1 capital ratios are already part of the community one finds that they are looking significantly higher—from the 2% core at the time of the forward to 2011 with great worry and concern because crisis to about 7% now, which is after all what Basel III more than 100,000 of them are going to lose their job in will require. Leverage is significantly lower, at an average the public services alone. of 20 times, from about 38 times pre-crash—a considerable change. Many banks welcome the existing proposals to Mel Stride (Central Devon) (Con): Will the hon. establish a clearing house for over-the-counter derivatives. Gentleman give way? According to Hector Sants, the Financial Services Authority has quadrupled the extent of its regulatory Mr Mudie: Excuse me for a second. Given the amount investigations. He has even made comments about how of money that the state has pumped into the banks to afraid banks should be of him. The Bank of England rescue them, it is unacceptable that bankers and senior special liquidity scheme still provides about £130 billion bankers still, at this stage in the game, demand obscene of liquidity to banks, enabling them to switch illiquid bonuses at levels that many people could never think of but good assets for Government bills. All those things earning even when they have worked all their life. That are important changes, and they are only a few of the shows a state of mind that is not exactly right. We hear steps taken so far. that if all that does not work, Bob Diamond will take Still to come, in 2011 and 2012, are the new regulatory business away from the UK. What on earth is the point structures in the UK and Europe that will radically of spending time building up a regulatory structure if improve regulatory accountability. Instead of the FSA that is the attitude? For safety, I join the hon. Member looking to the Bank of England and the Treasury for for Bromsgrove (Sajid Javid) in thinking that Glass-Steagall solutions—as in the case of Northern Rock—we will in is a good alternative, but unfortunately for us both, as future have a far stronger Bank of England. It will not we move in that direction the Governor of the Bank of just have responsibility for monetary policy and as England seems to be moving in the opposite direction. lender of last resort; the Governor will also be ultimately We can never pin that man down, can we? I think that is responsible for individual bank supervisions and, critically, the direction we should go in. through the Financial Policy Committee, for the overall In the minute that remains, I shall explain the reasons health of the financial system. other than safety why I support a move in that direction. To speak of no action is completely wrong, but that is I know that this might mark me out as old-fashioned, not to say that a lot more could not be done. It certainly but I want the retail banks to go back to the fine role could, and especially about two things: accountability that they have historically played in financing individuals and competition. Specifically, the competition issue worries and small and medium-sized enterprises. That was their me at all levels of banking. If we go back to Adam function and they did it very well, but that has been lost Smith and “The Wealth of Nations”, we see that to have because the emphasis has shifted to the investment side successful free enterprise, we must have free entry and of banking. If we are talking about rebalancing the free exit for market players, but looking over the past economy, the engine for growth must be the banks. If 20 years, we see that consolidation in banking and the we can get them to move across to their old role and let increasing costs of regulation have helped to create an the investors go off and play their casino games, our industry where there are huge barriers to entry. 567 Banking Reform29 NOVEMBER 2010 Banking Reform 568

Justin Tomlinson (North Swindon) (Con): Does my The third thing I would do is ensure proper pricing of hon. Friend agree that it is also essential to maintain bank risk. That is where one of the fundamental problems diversity in the financial services sector to improve has been. Credit ratings agencies are culpable in their competition and drive down consumer costs and charges? own activities, and banks are culpable in following the lead of credit ratings agencies and not bothering to do Andrea Leadsom: Absolutely. I was about to make their own proper credit analysis. Part of that I put down exactly that point. Not only have there been far too few to the fact that it has been far too easy for professionals new entrants, we have seen only recently that banks are and retail investors simply to buy bank debt and equities, unable to fail; we cannot risk allowing a bank to fail, as without bothering to do their own analysis because the situation in Ireland has highlighted yet again. Regulation there has been an implicit Government guarantee. The has trumped competition for too long. credit ratings agencies have automatically made them all double A or triple A, so it seemed like a no-brainer. It is not simply a matter of being too big to fail. Some of the biggest continuing concerns are about the medium- Unfortunately, there has been no downside, and sized banking sector in the States and in Germany. The something must be done to change that radically to same mistakes must never happen again. We need to ensure that there is a downside to investing in bank risk. look to where the next crisis will come. It is absolutely Measures such as living wills, and subordinating bond- key to introduce more competition and more accountability, holders to depositors and equity owners, are ways to and I would consider three areas. ensure that in future it is not the taxpayer who pays for banks’ mistakes. I should not look to split retail and investment banking, which are artificial barriers. They may have worked in Finally, if competition and accountability are to be the 1920s and 1930s, but now they are too big a grey the revolution in financial services for the future, it is area. We simply could not do it. Bankers would just find essential—going back to what the hon. Member for clever ways to get round such measures. Leeds East, my colleague on the Treasury Committee, was saying—that bank directors take some responsibility. I declare an interest. I have been in banking even Directors who break a bank should be fired, without longer than my hon. Friend the Member for Bromsgrove bonuses, pay or early pension, and if criminal negligence (Sajid Javid), as I have been in investment banking and can be shown, the ultimate penalty of prison should not funds management for 23 years. I assure the House that be ruled out. Accountability is key. I have seen from all ends how clever bankers are when they want to get round something. To address competition in the retail and mortgage 5.47 pm markets, I would consider ways to let account numbers Mr Chuka Umunna (Streatham) (Lab): I, too, follow the consumer—one of the biggest barriers to congratulate my right hon. Friend the Member for moving an account, as we probably all know. I should Oldham West and Royton (Mr Meacher) on initiating love to know how many Members in the Chamber have this important debate. I welcome the fact that we are changed their bank account or mortgage account recently. conducting it in a reasonably non-partisan way. I have It is a huge headache.If we let the account number listened with interest to the comments of my fellow follow the consumer, that would immediately create far Treasury Committee members, and the last three greater competition and far greater choice and availability contributors in particular. Although I do not agree with of moving. It could also remove barriers to entry. everything that has been said, there is much common Secondly, to address competition in wholesale markets, ground. I would consider giving the new Consumer Protection My general approach is that we should not set out to and Markets Authority a specific competition objective, destroy the City. It makes a valuable contribution to our which would mean that one of its roles would be as a economy, not least to the tax take of the Exchequer. specialist competition commission—not just the Office I spent much of my legal career working there and I of Fair Trading, but a specialist commission—that would know that a number of other Members present also consider whether, in a particular sector or in a particular worked there for some time. The important thing is that geographic region, a bank had a monopolistic or we reform the City so that it is run in the interests of all oligopolistic market share. It ought to have a statutory the British people, not in the interests of a few people in ability then to enforce its recommendations. the square mile, as often seems to happen. Above all, let us reform it so that never again do any of our constituents Joseph Johnson (Orpington) (Con): Does my hon. have to pick up the tab for the mess in the sector. Friend agree that the role of regulators in promoting We should be clear. All major political parties and and sustaining competition in the UK financial services Governments across the world bear responsibility for market has been greatly complicated by the decision of allowing what happened to develop. Let us face it: the the previous Administration to allow the merger of consensus pre-crash was for a light-touch model of Lloyds and HBOS, and to waive all competition criteria regulation. However, we should not forget—this is where which would normally have been applied to such a I differ from some other Members—that it was ultimately merger? the bankers who were to blame. Now we have to resolve what happened. Andrea Leadsom: That is absolutely right. We are I disagree with the motion in that it suggests that certainly in a worse position than we were pre-crisis in nothing much has happened. I am glad to hear that terms of a lack of competition and massive market other Members disagree with that. Let us look back to share. The five top players in the UK dominate the the G20 in April 2009 and recall what was achieved mortgage market, the retail market and much of the there, following the leadership demonstrated by the wholesale market. former Prime Minister. I remember him being ridiculed 569 Banking Reform29 NOVEMBER 2010 Banking Reform 570

[Mr Chuka Umunna] That is why I am sympathetic to the Glass-Steagall model, but I am happy to see what the banking commission as he went around the world trying to galvanise consensus comes forward with. on a set of outcomes, but the summit produced outcomes I shall conclude by considering some wider issues. I that have been built upon. Three come to mind. First, should like two key outcomes from the reforms currently the leaders resolved to establish the Financial Stability being implemented. First, to pick up on the comments Board, the successor to the Financial Stability Forum, of my hon. Friend the Member for Leeds East, we need and as a consequence the world has a standing body of to return to the notion of our banks as a utility. They Finance Ministers, regulators and central bankers, which are a utility and should be treated as such, because they seeks to provide early warnings of financial risks and are absolutely essential to our everyday lives. We have has a greater mandate to promote financial stability lost sight of their purpose, because we have a allowed a globally. big, shadow banking structure to evolve while 1.75 million Secondly, the leaders who attended the summit took adults on lower incomes do not have access to basic concerted action to improve the quality and quantity of banking services. I should like us to introduce a universal capital in the banking system, and I endorse the comments banking obligation, so that everybody has access to of the hon. Member for South Northamptonshire (Andrea such services. It is a great shame that the Government Leadsom), one of my Treasury Committee colleagues, have decided to do away with their commitment in the because what came out of it—with the FSB and the coalition agreement to introduce a people’s bank through Basel Committee on Banking Supervision working together the Post Office, because that would have been very good. —helped to produce more stringent capital adequacy Secondly, I agree with the hon. Member for South requirements and the minimum equity requirement will Northamptonshire that we need greater diversity in the go up to 7%. Perhaps it is regrettable that that will not sector. It is dominated by a few major players, and there happen until 2019, and perhaps it could be sped up, but has been only one start-up entrant in the market, Metro it has definitely made a difference. bank, since 2008. In particular, I should like serious Thirdly, the leaders resolved to endorse and implement consideration to be given to breathing life into the new principles on remuneration, and, as a result, in the mutuals sector. Why do we not seriously consider March Budget the former Government put in place the remutualising Northern Rock and Bradford and Bingley, apparatus within which a remuneration disclosure scheme as opposed to privatising them, so that we increase the could be enacted. diversity of providers in the sector for our constituents? There is no magic bullet when it comes to reforming Jonathan Edwards (Carmarthen East and Dinefwr) financial regulation. The previous Government made a (PC): Does the hon. Gentleman agree that, if there is good start; it is absolutely crucial that the coalition greater transparency on bonuses, the threatened diaspora Government build on that. of bankers will be nothing more than hot air? 5.54 pm Mr Umunna: The apparatus would help to introduce Stephen Barclay (North East Cambridgeshire) (Con): greater transparency on bonuses, because if we want to It is a pleasure to follow the well crafted speech of the do something about reckless remuneration we need to hon. Member for Streatham (Mr Umunna). I, like him, know about it. I speak to many people in the City, and, welcome the chance to debate this important issue. I although some of course disagree with the measure, must preface my remarks by declaring, in the interests many accept that it needs to be introduced. Action was of transparency, that I too used to work in the industry. taken, but some measures are still outstanding. I worked on both sides of the regulatory fence—as a regulator in policy and supervision roles, and in the insurance Charlie Elphicke: Will the hon. Gentleman give way? and banking sector—prior to entering the House. The depth of anger felt by our constituents is very Mr Umunna: I am going to make progress, because I much underestimated in the City and in Canary Wharf. do not have much time. Constituents might hear the technical jargon that is I welcome the introduction of the independent banking often used in such debates, but they are not confused by commission, which the new Government were right to what went on: they know that senior bankers made big set up. Without pre-empting the commission, I firmly mistakes yet kept their massive payments; they are believe that we should separate retail from investment incredulous that the banks have returned so quickly to banking. There is some consensus on that, but it is a paying bonuses, as the hon. Member for Leeds East question of degree. (Mr Mudie) said; and they are frustrated that the rhetoric of reassurance from the banks is so often at odds with Steve Baker (Wycombe) (Con): Will the hon. Gentleman their own experience as customers, particularly when it give way? comes to the fair treatment of customers. As my hon. Friend the Member for South Mr Umunna: I am afraid I am going to continue. Northamptonshire (Andrea Leadsom) pointed out, the Do we go for the Dodd-Frank model, which has just motion is—dare I say it—poorly drafted when it states been implemented in the United States, or the Glass-Steagall that “no action”has taken place. Indeed, the hon. Member model, which was in place from the 1930s until recently? for Streatham endorsed that view from the other side of Mervyn King has moved a little on the issue. At the the House. There has been a flurry of regulatory initiatives, Treasury Committee last week, he was very clear that he such as more intensive supervision by the Financial would not give his view on it until the Vickers commission Services Authority following its admission of regulatory reports, but Lord Turner doubts that it is possible to failure over Northern Rock; and on derivatives, which separate proprietary trading from commercial banking. the motion mentions, the capital requirements directive 571 Banking Reform29 NOVEMBER 2010 Banking Reform 572 will subject contracts that are not cleared through a The most glaring issue that needs to be addressed is funding house to higher capital requirements. So, action that of enforcement—in particular, the lack of transparency is taking place. Likewise, the Government’s amendment that goes to the heart of the sense among constituents rightly focuses on structure and, indeed, prudential that people have had a one-way bet. That was the point policy, but it is silent on the key issue on which I shall to which my hon. Friend the Member for Dover (Charlie concentrate: enforcement against individuals in banks. Elphicke) alluded. To give an example, the failure of Before doing so, I must say that so far the debate has enforcement and the lack of a taxpayer’s guarantee has been silent on the short-termism fostered by the pension been material, particularly now that investment banks fund management, and in particular on the pressure are not partnerships; I do not think that many partnerships that that puts on chief executives, who risk being fired if would have leveraged their capital up to 40 times, as they do not add shareholder value. In banks, people many of the banks did. Put simply, the alignment of fear missing the targets set by their chief executive more interest between shareholders who provide the capital than they fear the regulator. and employees who allocate it is not as strong as was historically the case. That is one of the features of a Charlie Elphicke: Is not one of the serious issues with shadow banking system in which the banks had no bonuses, and the point that my hon. Friend makes, that long-term interest in the securitisations that they structured there emerged a kind of cool option, whereby bankers and underwrote. We would not allow such a thing with could receive a bonus but never lose out? Should the an aviation or pharmaceuticals company; they could system not be reformed, so that bankers are able not not design and profit from products that they expected only to receive a bonus, but to incur a loss? That would to fail, as Goldman Sachs did with the Abacus deal. align them more with the return on whatever their bank In the final minute allocated to me, I turn to the is up to. quantum of fines. To put the matter in context, no fine Stephen Barclay: My hon. Friend is absolutely correct, has been imposed on any senior executive at HBOS, and I shall come on to consider the quantum of fines HSBC, Barclays, Lloyds or Royal Bank of Scotland. that have been imposed, because it makes very strongly The biggest three fines, applied to Northern Rock, the point that he makes. amount to less than £1 million—that is, less than the chief exec earned as a bonus the year before. The fines On the regulatory structure, I am sure that my hon. were subject to 20% and 30% discounts as a result of Friend the Financial Secretary to the Treasury will talk early settlement and on the grounds of hardship. For about the changes that the Government are rightly making, that reason, our constituents feel that no one has been because we need to be clear who is in charge in the event held accountable. They have seen people walk away of failure. The tripartite system did not make that clear. with the profits without being held accountable for the However, I am sure that he, like the previous Chancellor things that went wrong. As the Minister looks at the in his White Paper, accepts that there is no single structure and policy, we also need to learn the lessons of institutional model to insulate us from a future crisis. why enforcement against individuals has failed. The Government are also right to focus on prudential policy, but I caution against a reliance on policy itself, 6.2 pm because we need only look at how often it has changed. We are already on Basel III, Solvency II and MiFID II Alison McGovern (Wirral South) (Lab): I begin by —the markets in financial instruments directive—and congratulating the Backbench Business Committee and the next debate is on commission in the retail sector, my right hon. Friend the Member for Oldham West and which has been debated for many years. Royton (Mr Meacher) on securing this debate, which To give a specific example of the flaws in new policy, has been illuminating and measured. I join the hon. let me direct the House to “best execution”—one of the Member for North East Cambridgeshire (Stephen Barclay) features of MiFID that required banks to shop around on the important point that he made at the beginning of to obtain the best price. It will not surprise Members to his speech: in the City, there has been a lack of recognition discover that when banks shopped around they happened of the depth of anger among many of our constituents. to find, in accordance with their written policy, that the The hon. Gentleman is right about that, and I hope that best possible price just happened to be the one offered this debate can start to set that issue right in some way. by their investment banking arm. Notwithstanding, I want to make three swift remarks. My first is about therefore, the limits of new structures and policy, I the tripartite arrangements. I want to take the House believe a clearing house for derivatives would be a back in time. I well remember when interest rates were welcome step and a key component in addressing opaque set by politicians. In many ways, our tripartite arrangements financial instruments, such as securitisations, which have been a success. As economists predicted before the stopped people obtaining the required visibility in respect change, Bank of England independence aligned to inflation of bank balance sheets and which was central to stopping targets has allowed an independence, a clarity, a robustness banks lending to each other. Alan Greenspan’s claim and a rule-based approach. It is important to recognise that derivatives efficiently dispersed risk throughout the that. We have been discussing a lot, and people have financial system ignored the concentration of risk in rightly raised, some issues to do with the failures of individual firms. We need only look at AIG to see the regulation, but we need to recognise why we changed to effect of that sort of concentration of credit risk. the tripartite arrangements and consider the importance A perhaps more technical point is that clearing houses of that change in 1997. should be more consistently valuing collatoralisation However, today I want to suggest that we cannot just requirements across all banks. The reason for that is the question and consider regulation, important though different requirements that apply to UK and German that is; we need to look for a change of culture in the banks, for example, in terms of their capital standards financial services sector as well. Many people have and liquidity requirements. already recognised the imbalance in respect of the major 573 Banking Reform29 NOVEMBER 2010 Banking Reform 574

[Alison McGovern] economy. Before we look to the future, it is important that we should address the problems of the past, including role that financial services play in our economy, but I do the very recent past. not think that that imbalance is mainly regional—it is Many Labour Members seem to be keen simply to not a case of London and the south-east versus the rest bash the bankers and blame them for the financial crisis of the UK at all. We know of the importance of and recession rather than look at the causal and banking in Scotland, and in my own area of Merseyside, contributory parts played by their own former Treasury many people work in the financial services sector or in Front Benchers, including the former Chancellor and organisations that contract to it. In 2007, such activity Prime Minister, the right hon. Member for Kirkcaldy amounted to 14% of PAYE and 27% of corporation and Cowdenbeath (Mr Brown). He has much to answer tax. for, and I wish that he were in the Chamber more often I want to make the point that the impact of the sector so that he could do so. is not just that regulation might help or hinder small business; as we have all seen, it also has a massive Mr Umunna: Will the hon. Gentleman give way? impact on public services. Getting right the structure, regulation and culture of the sector is one of the most Andrew Bridgen: With pleasure. important jobs that we have to do. I turn to the importance of the changes that we all Mr Umunna: In fairness to many hon. Members who want. First, on regulation, the issue is about not just have spoken from both sides of the House, I should say capital requirements but the work that Basel III might—and that there has been a recognition that although the must—do on liquidity requirements. In many ways, the crisis was not 100% the fault of the bankers, they bear a credit crunch is misdescribed; it should be described as huge part of the responsibility. As I said when I spoke, I a “liquidity crunch”. The question that we need to ask think that before the crash there was a consensus around of all banks relates to their access to liquidity as much the world that tended towards a light-touch regulatory as to capital. regime. That is something for which everybody, on both Whoever has the supervisory powers, whether the sides of the House and in legislatures throughout the Bank of England or the Financial Services Authority, it western world, has to take responsibility. That has been is important to determine what those macro-prudential acknowledged in the Chamber. Will the hon. Gentleman powers actually are. Furthermore, we must have a credible acknowledge that that sentiment has been expressed means, transparent and understood by all, of dealing during this debate? with failed banks. A process needs to be in place. People have mentioned living wills. We need to make sure that Andrew Bridgen: The hon. Gentleman makes that what happens with failed banks is understood by all, so point, but the previous Government encouraged and that the risks lie with shareholders and people within took part in an orgy of credit: in fact, they led it, and the system rather than with an implicit taxpayer guarantee. invited individuals and corporations to join in, safe in We will see that as the place that we are trying to get to. the knowledge that the former Prime Minister said that Finally, I leave the House with this thought. If we are he had ended boom and bust, which now sounds as to understand the crisis that we went through in 2008-09, ridiculous as King Canute claiming he could turn back we must realise that it was not merely a crisis of regulation. the tide. The taxpayer now has the hangover from that The commission on banking reform that the Government 10-year orgy of credit. rightly set up should listen to the Chartered Institute of Under the former Prime Minister’s watch, the Bank Bankers in Scotland. It has warned Sir John Vickers of England deliberately stoked a consumer boom that that new regulation will fail if it is not combined with led to spiralling house price inflation and massive levels “a firm commitment to embedding a culture of high ethical, of personal debt. This is not just my opinion, but that professional and technical standards amongst bankers throughout of the previous Governor of the Bank of England, the the industry”. late Lord George, who said of that period: That point is really important. Those of us who see the “We knew that we were having to stimulate consumer spending. importance of the financial services sector want a change We knew we had pushed it up to levels which couldn’t possibly be in its culture as much as a change of regulation. That sustained into the medium and long term.” has to be about high ethical standards. That approach led to 20% house price inflation when the consumer prices index was running at 2%, led to In conclusion, I hope that the measured nature and financial institutions such as Northern Rock offering thoughtfulness of this debate will send a message to all 120% mortgages, and ultimately led to a run on a about the seriousness in which we hold these reforms. British bank and the financial crisis of 2007. Opposition Members might blame America, global markets, or 6.8 pm even the fact that we are not in the euro, as ridiculous as that sounds, but this misguided belief, and the hubris Andrew Bridgen (North West Leicestershire) (Con): of the previous Prime Minister in believing that he had Thank you, Mr Deputy Speaker, for letting me catch ended boom and bust, helped to contribute to the your eye in this debate; this is a little different from the banking collapse. It is fascinating that the shadow Home last time that I spoke. I remind you, Mr Deputy Speaker, Secretary—or perhaps I should say the shadow shadow that it is not the size of the dog, but the size of the fight Chancellor—stated that the cause of the deficit was not in the dog that decides who wins. the previous Government’s borrowing, but rather the This is an important debate because we need a vibrant, collapse of tax revenues. He failed to recognise that tax strong and confident banking sector if we are to see the revenues based on rapid house inflation and excessive essential growth that all hon. Members desire for our consumer credit are totally unsustainable. 575 Banking Reform29 NOVEMBER 2010 Banking Reform 576

The failure of the previous Prime Minister’s regulatory the issue, and it surrounds the financial crisis that we regime also contributed to the problem. It was clear and the rest of the world faced. Very little attention has in the early part of the decade that the UK had an been given to this in recent times, or at any time since unsustainable consumer credit funding gap: the IMF the financial crisis, but the principle must be one of said so, as did the previous Governor of the Bank of transparency. Otherwise, we get insider trading—the England. The power to regulate had been transferred sharing of information. Whether it is done legally because from the Bank of England to the Financial Services laws are not strong enough or illegally, there is an Authority and the Treasury, with an inadequate definition imperative towards insider trading because it is so lucrative. of roles and responsibilities. It was an absolute disaster, This opaqueness is fundamental to the problems that as was shown at the height of the Northern Rock crash, we have had, and we have seen it in other sectors such as when Mervyn King was asked, “Who is in control?” insurance. and his answer was, “That depends on how you define That opaqueness, together with huge bonuses—however ‘in control’.” The answer was that nobody was in control, they are described by the industry—will lead to people and no one could see who was in control. One cannot making unsubstantiated claims and reckless gambles. If have a third of a problem—one wants all of the problem they have no personal liability—in other words, if they or none of it. That was part of the difficulty. are gambling with other people’s money—which is precisely So where do we go from here? I am a firm believer in the problem we had in the run-up to the financial crisis, sound money. A sustainable banking system is one then there is no comeback, and banks can go out of where lending policies are closely in sync with the business. We have seen that with the biggest banks, projected economic activity of the people it serves, not including Lehman Brothers. One day, the executives are driving them. seen scuttling out with their files, and the next day—or perhaps a year or two later—they are coming back into Alison McGovern: Does the hon. Gentleman recall, the financial world with more huge salaries and huge as I do, that the previous Conservative Government left bonuses: ever onwards, ever upwards. That is the mentality the country with a deficit of 3.4% which was going towards that underpinned the crisis. ongoing spending, unlike the debt in 2008, which accorded It is not only I or my right hon. Friend the Member with the “borrow to invest” rule? In relation to sound for Oldham West and Royton who have this problem money, what does he think about that? but the head of the stock exchange, who said to the Andrew Bridgen: I thank the hon. Lady for her point. Treasury Committee, in relation to the lack of clearing She, like me, was not in this place at that time. I was in houses and the risks involved, that we are potentially business running a corporation. I fixed the roof while sowing the seeds of the next financial crisis. The conflict the sun was shining, and I put my company into net between the stock exchange, and others who backed it, credit three months before the banking crash happened. and the Government needs to get greater public exposure because it is fundamental to the Government’s weakness We need a Government—and a regulator—who do in failing to understand that instead of short-term not deliberately go to sleep at the wheel for political remedies, the creation of transparency is fundamental advantage, as the previous Government did. We must never to the solutions we need. let a bubble like the one that built up under the previous Government build up again. Our plan for growth depends There were three major problems in the financial on a sensible and sustainable banking system alongside crisis. First, we have heard about people living beyond more powerful incentives from Government. We must their means—well, the people who were living way never return to the bubble that ended in the financial beyond their means in this case were those in the crisis and allowed banks to lend unsustainably under a financial institutions. That was not properly recognised tick-box regulatory system and a short-termist, feckless at the time, or properly regulated. They were borrowing Government concerned more with political advantage money against something they did not have—a hope, an than with the long-term interests of the country. In expectation, a guess for the future, presuming that it short, we need to look at creating a body that is solely in would come right in the end—and of course they were charge of financial stability and has responsibility for personally incentivised so to do. macro-economic supervision. Secondly, there is off-shoring. We have not done enough in this House—I am critical of the previous Government 6.14 pm in this respect, as well as the current one—to deal with the British dependencies that are fundamental to the John Mann (Bassetlaw) (Lab): It would be tempting opaqueness of off-shoring. We can do a significant to go into some detail on derivatives. Indeed, I have amount about that. written a public paper about what should happen with over-the-counter derivatives, but suffice it to say that, Thirdly, the big investment banks are ferociously for the purposes of this debate, I wholeheartedly support competitive in some areas and form an oligarchy in others. the proposal put forward by my right hon. Friend the They allow no real competition and dominate with their Member for Oldham West and Royton (Mr Meacher), excessive fees and powers. If we get on top of that, the which is part of the solution. The concept that all House and the Government—whichever party is in power derivatives could be exchanged in the way that he proposes —will be able to avert future financial crises. If we fail creates complexity and is unsustainable, but the idea to do so, the next crisis, whether it is in the short or that there should not be large-scale clearing house medium term, could hit us just as ferociously as the last. involvement is of great importance. The opaqueness of the current situation spreads beyond 6.20 pm the financial institutions into the largest corporations, Mel Stride (Central Devon) (Con): I rise to speak which represent about 7% of a market that is specifically against the motion, not least because of the argument concentrated on this country. That is part of the meat of made by my hon. Friend the Member for South 577 Banking Reform29 NOVEMBER 2010 Banking Reform 578

[Mel Stride] We have heard very little about taxation on banks. I congratulate the Government on being the first to introduce Northamptonshire (Andrea Leadsom) that implicit in a permanent tax on banks. However, the arguments the motion is the suggestion that the Government have about taking out capital that banks might otherwise done nothing to avert a future banking crisis. I also lend also pertain to that measure. We want the banks to believe that the motion is too prescriptive at a time lend more, but the picture is not clear as to why they are when these matters are being considered in detail, not not lending, as I alluded to in response to my hon. least through the Sir John Vickers commission. This Friend the Member for West Suffolk (Matthew Hancock). Government set up the commission and released its It may not be just a lack of supply owing to recapitalisation issues paper as recently as last September. and a greater aversion to risk among the banks, but to Huge complexity, tensions, conflicts and dangers are do with a lack of demand among companies, many of inherent in the development and implementation of which are focusing on paying down debt, rather than policies that are designed to stabilise the banks. Many taking on more. hon. Members have spoken about banks being too big My hon. Friend the Member for Orpington (Joseph to fail. It is true that if we have banks that are too big to Johnson) and the hon. Member for Bassetlaw (John fail, there is moral hazard in the actions of those who Mann) mentioned competition. This country has a run them, because they always know that the taxpayer highly concentrated banking sector and it became more is there to back them up if necessary. In such situations, concentrated after the financial crisis, when some foreign there is an element of unfair competition in that larger lenders withdrew and some banks amalgamated. Lloyds banks, backed by the taxpayer, can afford to take larger and RBS make up 50% of lending to the retail, mortgage risks. However, we are also told by many in the industry and small and medium-sized enterprises sectors. That is that size is a function of competitive advantage and that a huge degree of concentration. There are high barriers being big is important in global markets. to entry to banking, not least the very regulation that we are discussing. Over the past century, the only new Many hon. Members have rightly mentioned capital high street bank, disregarding demutualisations, has asset ratios. It is important that banks strengthen their been Metro Bank, which was created last year. On the balance sheets and that Basel III is implemented, yet there other hand, Australia and Canada have highly concentrated are inherent dangers even in that. PricewaterhouseCoopers banking sectors and seem to have been spared the worst has estimated that the implementation of Basel III in of the financial crisis. the UK will result in £600 billion put into increased capitalisation, which could in turn reduce growth by I welcome the Government’s approach to Basel III between 1 and 2%. I therefore welcome the fact that and their setting up of the Financial Policy Committee, Basel III will not come into full effect until about nine along with its oversight role in relation to the Bank of years’ time. England and the Financial Services Authority.I particularly welcome the setting up of the Independent Commission on Banking under Sir John Vickers, which has been Matthew Hancock (West Suffolk) (Con): Does my welcomed broadly by business, including in a recent hon. Friend think that it is inconsistent to argue both speech by Richard Lambert, the director general of the that the banks should lend more to small businesses and CBI. I welcome some of the approaches that the that the improvement in capital ratios should be speeded Government are taking to encourage equity finance to up, as we have heard from some hon. Members? increase above the current level of 1 or 2%. I fear that stalking the perimeters of the debate on Mel Stride: That is precisely my point. If we speed up the Government side and perhaps at the heart of the the rate at which the banks have to recapitalise, there is debate on the Opposition side is the idea of bashing a real danger that we will choke off the supply of bankers and of revenge. The hon. Member for Streatham lending. There is an argument that lending is not just (Mr Umunna), who I think is no longer in the Chamber, about supply, but about demand. Companies are not denied that that was what he said. However, when he taking up many existing bank overdraft facilities, so it is was speaking, I jotted down his reference to bankers conceivable that there is an issue with demand, as well being “to blame”. That is the kind of populism that we as with supply. must get away from; emotionalism must not triumph We have heard a great deal about the importance of over the rational when we consider such issues. united global action. In an internationally competitive This is a highly important sector in which we have world, there is such a thing as regulatory arbitrage. If a world-leading position and we must retain that. one jurisdiction adopts a particularly light approach to Protectionism, trade imbalances and exchange rates are regulation, vast sums of money can flow in that direction. threats, but I argue that we must not lose momentum on However, as the Chancellor of the Exchequer has pointed banking reform, particularly in countries that have not out, our country needs to retain flexibility to reflect the been as swept up in the crisis as we have, for what has particular conditions in our banking markets. bitten us may yet come round to bite them. I agree with many of the comments on the importance of transparency in corporate pay, and in particular 6.28 pm bonuses. I accept that because banks can ultimately turn to the state and the taxpayer for support, we have a Sheila Gilmore (Edinburgh East) (Lab): I speak not right to take an interest in that matter and to see that as somebody who has a banking background, but as fair dealing prevails. However, I concur with Sir David somebody who represents part of a city that built much Walker’s recommendation that we should act in a united of its prosperity over the past 20 years on the financial way globally so that we do not disadvantage countries services sector. I was encouraged and pleased to see that might move on their own. many large banking organisations making their 579 Banking Reform29 NOVEMBER 2010 Banking Reform 580 headquarters in the city and am hopeful that we will 6.34 pm retain as possible, although there is a risk in such a Steve Baker (Wycombe) (Con): Like other Members, situation as this that we may not. That industry has I welcome this debate and congratulate the right hon. been extremely important for the city and has stimulated Member for Oldham West and Royton (Mr Meacher) many other industries, not least property and construction. on securing it. I will oppose the motion for two reasons. However, as we have seen, there are clear dangers in First, I believe that the Government have acted briskly becoming over-dependent on the financial sector, as within the terrain of the current debate. I will speak opposed to other parts of the economy, and we must about that terrain, because I believe it should be moved. reflect on that. Secondly, I should like to challenge the notion that we Like all Members, I represent people who were baffled should have a clearing house for over-the-counter derivatives. by a lot of what happened, and who remain baffled by I believe that the question of whether a clearing what is happening. They feel that whoever is responsible, house should be provided, and under what circumstances, we have gone wrong somewhere in how we deal with is a matter not for legislators but for the market. The what should be fairly simple matters such as how we can problem with derivatives is accounting rules that allow borrow and lend, and grow our economy. Although it profits to be recognised many years in advance, and that might be naive to think that we could return to the substantially reduce the capital requirements for derivatives simplicity of savings and loans organisations such as in comparison with loans. That, of course, is inflationary that featured in the film “It’s a Wonderful Life”—it is a in itself, stoking the activity that has caused the problem. good time of year to think of that—we do need to Not only has regulation of derivatives been of poor return to some of the variants of financial services that quality, but derivatives are susceptible to regulatory we appear to have lost. arbitrage. Indeed, as was mentioned earlier, financial In the rush to demutualisation, with nearly all the institutions employ large teams of very intelligent people building societies being turned into banks, we lost something specifically to construct derivatives to arbitrage away very important in the sector. That has left a lot of the regulations that are put in place. A clearing house distrust among many people. We talk about encouraging would obfuscate counterparty risk, with unintended individuals to put their trust in saving, which is important consequences, and, as clearing houses always do, it for aspects of our economy, but many people do not would reduce the demand for cash balances in banks, have the faith and trust to do that. That cannot be thereby promoting inflation. For all those reasons, I healthy. It would be helpful if there were small and believe it falls to us as legislators to create the right medium-sized organisations in which they had that environment for banking, based on property and contract, trust. not to mandate any particular solution such as a clearing I echo the view of my hon. Friend the Member for house. Streatham (Mr Umunna) that we have an opportunity To challenge the terrain of this debate, I should like to reconsider the mutual path when banks cease to be to take the House back to a landmark in the development owned by the taxpayer. Those banks can go down a of British monetary and banking orthodoxy—the Bank different road from the one that they have trodden. I Charter Act 1844, also known as Peel’s Act. It represented hope that we will be able to consider that, because it the victory of the currency school over the banking would be healthier and better to have variety in our school. The former had realised that systemic crises and banking sector. banking collapses were largely attributable to the excess We hear many different views about whether there creation of fiduciary media—that is, claims on money was too much or too little regulation. From the perspective not backed by a fund of actual money.The Act, introduced of the consumer of banking services, it sometimes feels by Peel, therefore eliminated the practice of banks as though there were a lot of regulation of little things issuing their own notes. Unfortunately, the currency and not enough of the big things. When I get another school had not realised the economic equivalence of letter from the bank to tell me about some small change notes and demand deposits, so the Act left the banks in interest rates, or not even that, I feel that things have virtually unmolested in their ability to issue fiduciary gone too far, especially when it is accompanied by a big media. booklet that, frankly, I do not read. I am sure most My hon. Friend the Member for Bromsgrove (Sajid people do not. That is regulation taken to its extreme. Javid) mentioned the wall of money that hit the markets, Equally, however, it cannot be right that an organisation and we might reasonably ask where that wall of money such as the Royal Bank of Scotland, which is of great came from. It has become common practice to say that importance to my city and country, was able to become interest rates were too low for so long, and therein lies so full of its own importance that it could decide to buy the insight. When that happens, people are encouraged into ABN AMRO, which was the cause of a lot of its to borrow and the banks are encouraged to extend problems, without someone saying, “Stop. Halt. You fiduciary media well in excess of real savings. Low can’t do this.” interest rates ought to indicate prior production and Similarly, on the whole question of remuneration and real savings, but when central banks deliberately suppress bonuses, the ordinary person does not feel that what is interest rates and issuing banks pour fuel on the fire by happening is right or fair. They want us as parliamentarians issuing fiduciary media, what we find is that wall of to take a strong view on the matter. This debate is money hitting the market. In our case, that money important, because there has been what some people principally headed off into the housing market. would find a surprising degree of agreement and consensus At the heart of our difficulties is the fact that there that action needs to be taken. We need to translate that was an omission in the 1844 Act. The deposit-taking into not just a Back-Bench debate but Government banking system is built upon that Act and a body of action. If we do that well, we will restore people’s trust case law, which have left the banks with the legal privilege not just in banking but in politicians. of treating demand deposits as their own property. That 581 Banking Reform29 NOVEMBER 2010 Banking Reform 582

[Steve Baker] problem. When I said to my manager, “This can’t go on. This is madness—we’re just writing people off,” he allows the system as a whole to create a wall of fiduciary replied, “Son, it’s a sign of the times. You wouldn’t go media. That is the heart of our crisis, but it is not part of into a shoe shop and expect not to buy shoes.” However, the mainstream contemporary debate, and I believe that there is a difference. A person who goes into a shoe it should be. shop and buys the wrong shoes will get blisters; a In the last minute of my speech, I should like to touch person who goes into the bank and buys the wrong loan on some other issues that have not formed part of the loses their house. The people at the bank did not debate, the first of which is risk management. The understand that we were dealing with people’s lives. entire brilliant edifice of modern financial theory is They were arrogant and blasé—“We can’t fail; we’re built on the assumption that risk in markets follows a great banking institutions”—regardless of the Barings Gaussian distribution, but that is not true. Market bank failure in 1991. I well remember the chief executive events follow a long-tailed distribution, as Mandelbrot of Barings at the time saying, “It isn’t terribly difficult and others showed. I very much wish that risk managers to make money in the City, old boy,” but the bankers would take that into account in their strategies. ought to have learned that it is terribly difficult for builders and plumbers to earn money. If we were to look more broadly at the money and banking system, and ask ourselves how we could The essential truth is that banking is simple—a bank characterise it, we would find central planning, legal lends money to someone and makes money through the privilege, the socialisation of risk, Government monopoly, agreed interest rate—but the banks made it complicated. complex regulations that are often arbitraged away and, In the debate this afternoon, I have heard about derivatives of course, ad hoc intervention. We would not find clear and arbitrage, but the average person who walks into property rights, freedom of contract and the consequences their bank will think, “What relevance do derivatives of bearing one’s own risks. and arbitrage have in my life?” The banks made lending into mathematical equations—someone mentioned a We have a lot to do in money and banking, but we biology graduate—and sold debt on, so the money must transcend the problem of blaming individual bankers. came from several different sources. Eventually, that Yes, individuals have done much wrong, but the system massive tower block collapsed when the person at the is deeply flawed and we can trace its flaws back to the bottom failed. I have been reading Ha Joon-Chang’s development of the British monetary orthodoxy. It is “23 Things They Don’t Tell You About Capitalism”, in that orthodoxy that we must challenge. which he argues that we should ban complex financial instruments. That is an outrageous thing to say, but if 6.40 pm bankers and economists do not understand such Chris Evans (Islwyn) (Lab/Co-op): I congratulate my instruments, how can anybody else be expected to do so? right hon. Friend the Member for Oldham West and Before I finish, I want to return to the anger that Royton (Mr Meacher) on introducing this debate. I do people feel. In an article in The Sun today headlined, not know whether he remembers it, but five years ago “Bank chiefs grab £15 million bonus”, I read that he spoke in Gloucester about the economy—I was the Stephen Hester of RBS will receive £2.4 million, that Labour party candidate in Cheltenham—and warned Eric Daniels of Lloyds Banking Group will receive that the banks were out of control. A lot of people £2.3 million, that John Varley of Barclays will receive looked on that uncharitably, but, sadly, he was proved £3 million and that Peter Sands of Standard Chartered right, which is why we are having this debate. will receive £3.2 million. What message does that send The debate is important because there is great anger to people? That money is absolutely obscene, including out there about bankers. No matter what Government to people who work for those banks. I go back to my Members say, people blame bankers. When I first came experience of working in a high street bank. We were to the House, BBC Wales ran a profile of me, the last kept on deliberately low wages. The only thing that kept sentence of which was: us going was the promise of a bonus. They would say, “We want you to bring in so many leads so stay till “Since leaving university he’s worked in bookmaking and in banking, which contrary to widespread belief are different professions.” 7 o’clock at night. Forget about your family. You’ve got to earn money and put some bread on the table boy.” Yes, there is a difference. I come from a family of bookmakers —my father and my mother were both bookmakers—and That is still going on. Someone came to my surgery the one thing that was drummed into me as I was the other day and said, “I have to work till 8 o’clock growing up was risk. As bookmakers, we understood every night because I’ve got to speak to the people I did risks, which is why we had odds. We always knew what not speak to in the day. I’ve got to get leads.” No would happen if we could not cover our losses. amount of Government legislation or regulation will change that. When I joined the bank, naively I thought that I was joining an institution that I could be proud of and that Andrew Bridgen: Does the hon. Gentleman not agree, set standards to which other industries could aspire. however, that it is Unfortunately, I discovered that it was completely and “the hope of reward that sweetens labour” utterly different from that. I was told to lend to whomever for us all? I could. I still do not understand the logic of saying to somebody who cannot afford to pay their bills every Chris Evans: For people earning £12,000 a year and month, “Mr Customer, you need a £10,000 loan to get struggling to pay the bills, the pressure is on to stay after you through.” work and phone up leads to earn a quarterly bonus just I got a warning for refusing to lend someone £25,000 to get through. That is not right. They should be paid a in an unsecured loan, because—I was told—I was not living, decent wage, which is what the Opposition support. thinking about the shareholders. That is the major I hope that everyone else will eventually do likewise. 583 Banking Reform29 NOVEMBER 2010 Banking Reform 584

Finally, as I said, no amount of Government regulation The second argument was raised just now by my hon. or legislation will change that culture. We need to say to Friend the Member for Central Devon (Mel Stride)—the the bankers, who were to blame for the economic crisis, Northern Rock and Lehman Brothers example. I will “Either you change your culture, or the crisis will happen not repeat what I said, except to say that Lehman all over again.” We had better start opening our eyes Brothers should have been allowed to go bust, but to that. should not have been able to bring in billions of dollars of taxpayers’ money after it, as it did. 6.46 pm The third argument is that a firewall would be too David Mowat (Warrington South) (Con): One of the complicated: banking has now got global and is so odd things about this debate is that those of us who mixed up that we cannot separate out investment banking believe that structural reform of the banking sector is and retail banking. Well, we can. The Basel III agreement necessary are characterised as being anti-free market, contains a requirement that the capital considerations anti-capitalist and anti-banking. I am none of those for each part of the banking portfolio be different. That things. In fact, I believe in the necessity of such structural can be done. reform precisely because I am pro-capitalism, pro-banking The fourth argument is that we can do all this with and pro-free market. The case for some kind of firewall, capital ratios and that if we impose them on banks we along the lines of the one introduced by Glass–Steagall, will not need this firewall, this separation. That is partly is irrefutable. That will be considered by the Vickers true, but actually they are not mutually exclusive—we commission over the next year but that is no reason not need both—and, as was said earlier, capital ratios, unless to discuss it here. we are careful, will shrink bank balance sheets and reduce lending at a time when we want more credit. Mel Stride: Does my hon. Friend accept that the What I am proposing would not do that. problems in Iceland and Ireland were caused solely by The fifth argument is that, if we did this in this retail banks? The Lehman Brothers collapse presaged country, in front of the rest of the world, it would put the financial crisis, but that was wholly an investment our banks at a competitive disadvantage. That might be bank that never took a retail deposit. true—it is a reasonable argument—but I would say two things in response: first, the banking sector in this David Mowat: I intended to address that later in my country is about four to five times as significant, as a remarks, but I shall take it head on. Lehman Brothers proportion of GDP, as it is in any other country, so we was a bad bank and it rightly went bust. However, that ought to be leading the world in this regard. It matters affected a whole lot of other banks, which required more to us. Secondly, even if the argument is right, it is massive Government bail-outs, because there was no not a reason for us not to try to get the world behind us, firewall. Nothing in my remarks will imply that retail create these firewalls and get this under control. banks such as Northern Rock will never go wrong or need to be saved. Frankly, my hon. Friend’s example makes my point rather than contradicts it. Steve Baker: My hon. Friend makes a compelling Two or three hundred years ago, capitalism was developed case. Will he consider the case of fixed-rate products— by joint stock companies, which was a clever and wonderful fixed-rate savings or fixed-rate mortgages—because it thing. If such companies made the right decisions and seems to me that such products are bound to bring the were wise, they prospered and grew. The other side of savings and loans business into contact with the investment that was that companies failed if they made unwise business, through interest rate swaps? decisions or mistakes, lost money, or failed to recognise risk—Gaussian distribution or not. In the past 15 to David Mowat: I thank my hon. Friend for that 20 years, unintentionally, a new type of company has intervention. My third argument was that these things emerged. Such companies are not subject to the same are all so complicated and mixed that we cannot separate penalties for risk as other businesses. That creates moral them out in the way I propose. I made the further point, hazards and poor decisions. In the end, that was a large however, that we have to do that, under Basel III. contributing factor to what happened in this country However, as recently as 15 years ago, firewalls were in two years ago. place, so it is not that difficult and it can be done, if The arguments in favour of a firewall are overwhelming, there is the will. The requirement on moral hazard is but what are the arguments against it? The principal such an overriding necessity of capitalism that when it argument against a firewall has been the subject of the goes, it is terribly dangerous. And it has gone now, most intense banking industry lobbying imaginable, which is the guts of what we have been talking about for and I hope that when the time comes to legislate, hon. most of this afternoon. Members and the Government do not bow to it. I am not the only one saying that. Paul Volcker, who The first argument is that such a separation implies was previously head of the Federal Reserve, and John that investment banking, derivatives and all that goes Reed—not the John Reid who used to sit on the Labour with that are casino-type activities and of less value to Benches, but the John Reed who used to run Citigroup— society. I do not think that at all. I sold my business to have asked for this firewall to be put back in place. The investment bankers, I like investment bankers and I Governor of the Bank of England, too, said that of all understand why we sometimes need derivatives. I have the different ways we could choose to organise a banking no problem with those instruments, but I do have a system, the way we have chosen to do it in the UK is problem with the fact that if the people using them mess among the worst imaginable. We have to act on this. It is up, they cannot go bust, because there is not a firewall very important, and I hope that, notwithstanding the between their activities and the rest of the banking Vickers report, the Government will show leadership on world. That is the problem. this matter. 585 Banking Reform29 NOVEMBER 2010 Banking Reform 586

6.54 pm past 30 years. However, to blame that innovation itself for the mess we are in ignores the fact that it was the Matthew Hancock (West Suffolk) (Con): I want to lack of regulations—as my hon. Friend the Member for speak briefly at the end of what has been a very interesting Warrington South (David Mowat) pointed out so and informative debate, which I commend the Backbench eloquently, regulation is crucial to a functioning market Business Committee on securing. economy—around these new developments and the attempt I welcome some of the measures that the Government to regulate through explicit and specific rules, rather have already taken, so in the light of this debate, I hope than the exercise of judgment, that was the problem. that the motion, which states that the Government have taken no action, will not be pressed to a vote. Many Stephen Barclay: Is not one issue that mitigates the Members have accepted that the measures on tax, including need for specific rules the regulator’s 11 principles, a permanent tax on banks, the Vickers review into which act a bit like the 10 commandments? For example: banking structures, the international push for transparency “Principle 1: you must act with integrity. Principle 11: and the action taken to bring banks together to work on you must be open with the regulator. Principle 3: you bonuses show that a strong work programme is in place must have adequate risk management.”It is inconceivable, already. given that those rules have legal force, that some of those catch-all principles could not be used in enforcement. Mr Meacher: I do not want to take up time, because I have a couple of minutes at the end of the debate, but Matthew Hancock: They were not used, and that is the hon. Gentleman picks up on a point I was going to the problem. A massive, heavy and expanding rulebook raise. I did not say that no action has been taken. My distracted the attention of regulators away from the big motion states that picture. “no action has so far been taken which would prevent a recurrence of the financial crash”. My third point about why discretion rather than rules is the best way for the future concerns the importance of That is a very different proposition. the macro-economy, because we cannot separate monetary policy from banking policy. The size of banks’ balance Matthew Hancock: I thank the right hon. Gentleman sheets is crucial to regulating the supply of money in the for that intervention, because it brings me precisely to economy. Having counter-cyclical rules rather than the final thing that the Government have already proposed, pro-cyclical capital rules, as we had under Basel II, is and which I think is central to preventing a recurrence crucial. The exercise of judgment over a bank’s balance of the financial crash: the decision to move the powers sheet is best done in the same place as the exercise of for prudential regulation to the Bank of England and to judgment over the macro-economy. Bringing those two strengthen those powers. things back together in one institution—the Bank of Having quickly welcomed the action already taken, I England—is a better long-term way of trying to wrestle want to concentrate on prudential regulation. The removal with such difficult judgments than having them in separate of powers of prudential regulation in 1997 was central organisations, which, as we heard in an earlier, eloquent to many of the things that Members on both sides of speech, ended with the tripartite system, in which nobody the House have talked about. The hon. Member for was in charge. Islwyn (Chris Evans), who is not in his place, spoke passionately about how his managers were telling him David Rutley (Macclesfield) (Con): I do not know to lend more no matter what the customer needed. That whether my hon. Friend is aware of this, but last week was part of the rapid expansion of banks’ balance the deputy Governor of the Bank of England appeared sheets, because there was no prudential regulation at before the Treasury Committee and said that he felt that the top of the size of those balance sheets. We also the new twin peaks approach would be a much better heard, from Government Members, about the rapid, model. He felt that the advantage was that it would uncontrolled run-up in balance sheets. remove the problems of underlap that were so obvious The idea of prudential regulation and having an in the previous system. Whereas there might be some institution exercising judgment, instead of just lots overlap under the current proposal, that has to be much more rules-based regulation, has come of age. After all, preferable to the previous arrangements. the system before 1997, although imperfect, had prevented a run on any bank in the UK for 140 years, so it Matthew Hancock: That is a valid and important deserves some credit, and it deserves studying. So why point. Central to that point is the judgment of people would more discretion and judgment based in strong who look forward and have a broad view, looking after institutions work better than more rules? There are the health not only of the banking system, but of the three key reasons. The first, as we have heard in many macro-economy, while also having the ability to change contributions, is that although rules can be set down in the way they regulate according to changes in the economy, statute, statute can take a long time to change, whereas so as to take into account new developments, which is bankers can change and adapt very quickly. We have critical. Far from being the simple renaming of the heard a lot this evening about regulatory arbitrage—another institutions, bringing together macro-prudential regulation example of how financial institutions will change quickly with regulation of the economy and monetary policy to make the most out of whatever rules have been put in more broadly is central to restoring the ability to prevent place on the ground. But the system cannot then adapt the build-up of credit, as happened over the past 15 years. quickly. Secondly and crucially, the system cannot adapt to Andrew Bridgen: Does my hon. Friend agree that it is innovations. We have seen massive financial innovation, better to have a regulator who is fleet of foot than a especially with the development of computers over the clunking fist? 587 Banking Reform29 NOVEMBER 2010 Banking Reform 588

Matthew Hancock: In my experience it is always made, but the first point is to look at the motion that is better to be anything than a clunking fist. before us. As we can see from the Order Paper, the I will end by saying this. We do not know what the Government and the Opposition each tabled an amendment future holds. We know that regulation is not perfect. It to the motion, although neither of us were fortunate is therefore far better to have one person and an institution enough to have our amendment selected. For our part, in charge of the regulatory structure who can exercise although we agree almost entirely with my right hon. judgment to the best of their ability than it is to try to Friend, the element in the motion touching on derivatives write a rulebook for a perfect system that we know we requires a little more thought. will never create. That is why I think that the Government Many commentators have rung alarm bells about the have already put forward such a critical change to our swirling volumes of derivatives activity in the past decade, financial architecture—a change that I hope will be with multi-trillion dollar flows and British banks holding accepted by the Opposition and which will form the at least £l trillion in derivatives. However, derivatives basis of the good economic governance of our country are, for good or ill, a reality of the modern global for years to come. economy whereby companies and other investors gain exposure to an underlying asset or offset their exposure Mr Deputy Speaker (Mr Lindsay Hoyle): I call Mr Morris. to that asset without actually buying or selling that Are you going to be very brief? asset in the first place. Derivatives are supposed to be designed to reduce risk and volatility for companies, 7.3 pm employees and consumers. For example, an airline can hedge—or insure itself—against volatility in fuel prices David Morris (Morecambe and Lunesdale) (Con): I by taking out a futures derivative, thereby offsetting its am going to make only a two-minute speech, Mr Deputy exposure to price changes. However, as my right hon. Speaker. Friend and others have said, the problem is that betting This debate has touched a lot on the technicalities of on the future prices of financial assets has proved how the banking system works, but I echo the passionate irresistibly alluring to traders and bankers, who can and eloquent speech by the hon. Member for Islwyn make billions off the back of this market without (Chris Evans). Commercial banks on the high street do having to own the assets on which they are gambling. not all operate between themselves in the same way. There is therefore quite an irony in the fact that There are different clearance rates. Cheques can take up products that are intended to help alleviate risk have in to 10 days to clear, which can put families who are in many ways massively increased the systemic risk to the hardship even further into hardship. In the banks’ eyes, economy. Add to that the sheer complexity and opacity, banker’s transfers do not occur on the same day, or even as many hon. Members have mentioned, of some derivative over four days. For example, one of our high street products—collateralised debt obligations-squared, and banks—one that is more or less state-owned—will take so forth—and we end up with companies holding derivatives money out of a person’s account instantaneously, but it positions that their own management do not understand, will take over four days to transfer that money into failing to appreciate the risks involved. That is why the another account in the same branch. I have a constituent history of recent collapses has been intricately tied to who has a problem in that he paid off his credit card that problem—including at Bear Stearns, Lehman Brothers, over the counter in a national high street bank, but was AIG, Long-Term Capital Management and even Barings— told that it would not be credited instantly and that this yet we have still not properly grappled with it. would take up to six working days. That is outrageous and should be touched on in the reforms, so that each The reason why we on the Opposition Front Bench bank is streamlined with the others. In many countries cannot quite support my right hon. Friend’s motion is in Europe, such as Sweden, transfers are seamless and that it essentially calls for an end to over-the-counter instantaneous. I would like the House to consider that. derivatives trading and the introduction of a central clearing house. I can see the attraction of that—the standardisation of products and the stronger likelihood 7.4 pm that the regulator could peer inside and comprehend Chris Leslie (Nottingham East) (Lab/Co-op): I, too, the nature of the risks involved—but the downsides are congratulate the Backbench Business Committee and that derivatives could not be easily tailored to the specific my right hon. Friend the Member for Oldham West and needs of the buyer. With the vast majority of derivatives Royton (Mr Meacher) on setting up this thoughtful currently privately traded between two parties, the and well-tempered debate. A number of good ideas consequences of that structural requirement for exchange have been shared among all parts of the House. In fact, trading in all circumstances could be disadvantageous. there has been much more consensus between the Back For instance, could there be a constraint on the specific Benchers on both sides of the Chamber than between maturity of the futures options? Would we be unwittingly the Front Benchers. We will see whether policy can be re-injecting risk into the economy by constraining the shaped by the virtues of our debate, because there has ability to hedge responsibly? been quite a lot to take away from these discussions. The Opposition need, however, to recognise the urgent It is important to reflect on the wide-ranging set of and far-reaching reforms that are required. Do we need reforms needed to bolster our banks against a repeat of an urgent and thorough review of derivatives and policy the credit crunch and, as we all want eventually, to on them? Yes, absolutely: both regulators and markets create a financial services industry that is sustainable need more transparency in over-the-counter derivatives and diverse, and that serves the best interests of both activities, particularly given the possibility of greater savers and borrowers. There are a number of significant exchange trading. By the way, we also need greater systemic reforms that it is important to reflect on. I scrutiny of the role played by the credit rating agencies, shall touch on many of the comments that have been as the hon. Member for South Northamptonshire 589 Banking Reform29 NOVEMBER 2010 Banking Reform 590

[Chris Leslie] We clearly do not need to wait to see the Business Secretary’s appearance on the Christmas special of “Strictly (Andrea Leadsom) and others said, given that they have Come Dancing”; he is perfectly able to perform his blessed many products with triple A ratings that did not volte-faces, somersaults and U-turns one after the other. necessarily translate into reality. Should we require He is performing spectacular political cartwheels more greater registration and transparency in these over-the- often than ever before. counter deals? Yes, absolutely. There is too much secrecy, and the consequences for the taxpayer are ultimately Stephen Williams (Bristol West) (LD) rose— too great. Chris Leslie: I would love to hear what the Liberal John Mann: I am just trying to get my head round my Democrats have to say about this. hon. Friend’s statement that there should be greater exchange trading of derivatives. Precisely how does he Stephen Williams: Let us see whether the hon. Gentleman think that that should be enabled? can pirouette his way out of this one. During the last Parliament, probably the largest piece of legislation that went through was the new Companies Bill. Given Chris Leslie: We do not necessarily need to end all that my right hon. Friend the Member for Twickenham bilateral trading of derivatives, but to pick up where the (Vince Cable) called at that time for more disclosure in G20 in Pittsburgh left off in 2009. It resolved to move companies’ reports about directors’ remuneration, why towards greater exchange trading, but not necessarily did not the previous Government rectify that anomaly? the end of all over-the-counter trading. I know that we disagree on this specific point in the wording of the motion, but it is important that we should be responsible Chris Leslie: It is difficult for the hon. Gentleman to when considering some of the reforms that are being criticise the previous Government, when they put the suggested. It is good that the Backbench Business statute in place ready to be triggered by the present Committee has enabled this debate to take place today. Government. It is baffling to my constituents and to his that we cannot allow them to see the simple figure of I have doubts about the Government’s policy on this how many multi-millionaire bankers there are. I am not because they are leaving it very much to the European suggesting that we reveal their names, just the number institutions to lead on this matter, and leaving it up to involved. the European market infrastructure regulations, which are now emerging as the only likely vehicle for reform. It Matthew Hancock rose— is striking that Ministers are happy to be led, rather than showing leadership on this matter themselves, Chris Leslie: I am hoping that the hon. Gentleman is especially as the UK financial services industry is at the going to concede that that needs to happen. forefront of many of these activities. I urge Ministers to be far more front-footed on these reforms, rather than hanging back and complaining that details and policy Matthew Hancock: The hon. Gentleman is making are being foisted upon them. an argument for rejecting the Walker review. I was not in the House during the last Parliament. Could he just We also need to consider some of the other regulatory tell us who commissioned the Walker review? shortcomings that have been raised in the debate, including those relating to bonuses, to management incentives Chris Leslie: I am not making an argument for rejecting skewing the behaviour, and to transparency. I do not the Walker review. It recommended the disclosure of want to be too partisan, but I find certain aspects of the numbers, but it is true that Walker has since changed this situation astonishing. My hon. Friends the Members his tune. The reliance on what he calls “regulatory for Streatham (Mr Umunna) and for Leeds East arbitrage”, and the suggestion that if we were to make (Mr Mudie) said that the Government needed to show that change here in the UK alone, we would suddenly more leadership on banker remuneration. We have seen see an exodus of the banking community, are absolutely the appalling confusion and weak will of Ministers even fallacious arguments. We have a responsibility to show over listing the number of bankers earning more than a lead, and surely the Government should be able to do £1 million. Even that seems to have been a difficult step that. It would be invidious if that were not the case. for them to take. In the short time available to me, I also want to walk It is a particular shame that the Business Secretary is through some of the other proposed changes that hon. not here tonight—at least we have a couple of Liberal Members mentioned. They raised issues about proprietary Democrats representing him here—especially as he was trading, and there are even more Government Members so vociferous on this subject exactly a year ago in his who are in favour of the Glass-Steagall split between article in the Daily Mail. He described the proposal to investment and retail banking. There has been an interesting disclose simply the number of bankers earning more consensus on that. That might not necessarily be the than £1 million as a “whitewash”, saying that it would right thing to do, but it is certainly worth consideration represent only “a small advance”. He went on to say: by the Vickers commission. “Shareholders who own the banks and the taxpayers who The structure of the sector has also been mentioned, guarantee them have every right to know who is being paid how as has the question of whether we need to revisit the much and for what…Directors of public companies are already issue of competition. My hon. Friend the Member for required to declare their earnings…The failure of Walker to grasp this is compounded by Alistair Darling’s meek acceptance of his Edinburgh East (Sheila Gilmore) asked how we could recommendations. There are splits in the Government…Taxpayers remove some of the constraints on mutuals and credit sign the bankers’ bonus cheques, so we must see the names and unions, and on others entering the sector, given that the numbers on them.” barriers to new entrants are too high. Indeed, I note the 591 Banking Reform29 NOVEMBER 2010 Banking Reform 592 very thoughtful speech from the hon. Member for South a banking levy, and it will raise £2.5 billion in a full year. Northamptonshire (Andrea Leadsom), who mentioned That is what leadership is about. All that we have heard a number of interesting ideas about how reforms might from the Opposition is that there is more disagreement take place. I was quite taken by her suggestion about on policy among the Front Benchers than among the consumers’ current account numbers being portable. Back Benchers. The problem is that the debate showed Other interesting suggestions were also made. that those Back Benchers had more policy than the Basel III and the question of cushions and reserves hon. Gentleman. Nothing in the 15 minutes for which are clearly important for guarding against failure and he spoke told us anything about the future direction of reducing taxpayer liability, but do we need to pay similar the Labour party on the regulation of the financial attention to liquidity, as the hon. Member for Bromsgrove services sector, other than his vague attempt to justify (Sajid Javid) and my hon. Friend the Member for their decision not to vote for the motion. The right hon. Wirral South (Alison McGovern) suggested? Should Member for Oldham West and Royton has been hung certain institutions have greater cushions and reserves out to dry yet again by his Front Bench. than others? Perhaps that is the subject for a more It is vital that we learn and act upon—[Interruption.] sophisticated debate at another time. I ask the hon. Member for Streatham (Mr Umunna) to Other components have to be addressed as well, let me continue. He will have his chance tomorrow in including the financial capability of consumers and the Treasury Committee. It is good to see that the consumer responsibility. Yes, consumers have a right to Leader of the Opposition’s parliamentary private secretary know more about the products and companies involved, is already revving up for that experience. but perhaps it is also important to have a debate about It is right for us to learn the lessons of the financial the responsibilities of consumers. That needs to be crisis, and to act on them. We must think very carefully acknowledged. We need to revisit the question of fairness about the range of interventions that we make. It was for the taxpayer, and for public service users, indirectly, clear from everything that was said today that a range as well. Unfortunately, we have heard too much back- of measures was needed. The hon. Member for Streatham pedalling on the banking levy and on the role that the himself said that there was no magic bullet, and that is banks need to play in repairing the public balance true. We need to take a range of measures domestically, sheet—[Interruption.] The Minister suggests that he is in Europe, and at G20 level, if we are to learn those not back-pedalling, but from what we read—albeit in lessons of the financial crisis. the newspapers—it sounds as though the Government Let us begin with what we should be doing at home. might reduce the percentages that they want to implement, We know that the regulatory architecture introduced by as announced in the Budget, if they are going to stay the last Prime Minister was fundamentally flawed. As within the proposed 0.04% in year one and 0.07% my hon. Friend the Member for West Suffolk (Matthew thereafter. I would be more than happy to give way to Hancock) pointed out, he took away the Bank of England’s the Minister on that specific point if he wants to clarify responsibilities for the regulation of banks. The Bank that position once and for all. But perhaps he will keep had the ability to spot threats to financial stability, but that for another day. He has also been back-pedalling it lacked the power to tackle them. The last Prime on net lending targets of the business, although that Minister gave the FSA a dual mandate, which focused was in the coalition agreement. on the conduct of business to the detriment of prudential It is important that we have these debates. They show supervision. that there is a thirst for democratic accountability on Unlike the last Government, we have decided to financial services policy. Perhaps one of the lessons that reform the architecture and the approach to financial we learn is that simply delegating many of these issues regulation, and to implement a structure that works. to European institutions or to the regulators is inadequate. Before I outline the institutional reforms, let me set out There is a democratic deficit, and Parliament has a role the new approach that we want regulators to adopt. We to play. Hon. Members who try to find out information believe that whether the problem is a threat to financial on Financial Services Authority reforms and regulations stability, a flawed business model or the mis-selling of sometimes struggle to get the necessary documentation financial products, regulators should intervene decisively from the Vote Office, which is not good enough. We and early to minimise its impact on our economy, on need to recognise our role as legislators, because our financial stability, or on consumer outcomes. The regulators constituents are watching how we behave. They are will be required to demonstrate judgment and discretion, watching how we set policy, and they expect us to do which represents a big change in attitude and approach. that. We should not be blown around entirely by the However, we do not think that it is enough simply to regulators, by Europe and by the markets. Politicians change the approach; we want the architecture to change need to lead, and Ministers need to show greater leadership, as well. We will establish a financial policy committee in and I hope that the Government will do that. the Bank of England with a dedicated focus on macro- prudential analysis and action, to ensure that risks that 7.19 pm develop across the financial system as a whole are The Financial Secretary to the Treasury (Mr Mark identified and responded to when that did not previously Hoban): It is a pleasure to take part in this debate, and I happen. The FPC will have a strong mandate to protect congratulate the right hon. Member for Oldham West financial stability, with credible and knowledgeable external and Royton (Mr Meacher) on securing it. I would like membership. It will be able to challenge the prevailing to pick up on one point that was raised by the hon. consensus, and to ensure that potential risks are identified, Member for Nottingham East (Chris Leslie) when he monitored and addressed rather than being ignored, as talked about the Government showing leadership. If I they were under the last regime. remember rightly, it was his party that said before the The new architecture will also ensure that macro- election that we could not introduce a banking levy on a prudential regulation of the financial system is co-ordinated unilateral basis. This Government have introduced such effectively with the prudential regulation of individual 593 Banking Reform29 NOVEMBER 2010 Banking Reform 594

[Mr Mark Hoban] international financial regulation to address the failings that were laid bare by the crisis, and huge progress has firms, and that a new, more judgment-focused approach been made in strengthening international regulatory to regulation of firms is adopted so that business models standards. Getting these reforms right is vital for financial can be challenged, risks can be identified, and action stability, but it is also vital for the future of our global can be taken to preserve stability. That will be the financial services sector. responsibility of the new prudential regulation authority, Capital was mentioned frequently during the debate. which will be an independent subsidiary of the Bank of During the crisis, we learned that the banking system England. lacked the capital that was needed to absorb losses, or However, it is not just a question of prudential stability. the liquidity that would enable it to survive when markets As a number of Members pointed out today, we also closed. We have been a vocal supporter of the G20’s need to reform the way in which we look after the endorsement of the Basel committee’s reforms to strengthen interests of consumers. We will set up a consumer international capital and liquidity standards. Banks will protection and markets authority with a primary statutory be required to hold more capital to withstand losses, responsibility to promote confidence in financial services with the buffer of 2% core tier 1 required under Basel II and markets. Regulation and conduct within the financial being replaced by a buffer of at least 7% by 2019. I system, including the conduct of firms towards their think that the long transition period gets the balance retail customers and the conduct of participants in right. It strengthens the banks’ capital position, but at wholesale financial markets, should be carried out by a the same time ensures that banks are able to lend and dedicated, specialist body with focused and clear statutory continue to sustain economic recovery. I believe that objectives and regulatory functions. this crucial set of reforms will strengthen the resilience As I said earlier, it is also not just a question of of the banking system to the long-term benefit of the regulation. We need to think about the structure of the economy. banking system. It was the last Government who closed The motion refers to derivatives. I think that the hon. down the debate about whether the activities of universal Member for Nottingham East and I agree on one point. banks should be divided between investment and retail I believe that neither of us will support the motion, but banking. We had the courage to open that debate, we have learnt through the crisis that over-the-counter which is why we have established an Independent derivatives in particular lacked transparency and created Commission on Banking, led by Sir John Vickers, to a complex web of interdependence between the bilateral examine the structure of banking in the United Kingdom, contract parties, which made it difficult to identify the the state of competition in the industry, and how customers nature and level of risks involved. The financial crisis and taxpayers can be sure of the best deal. The commission has demonstrated how those characteristics increased will consider issues of systemic risk and moral hazard, uncertainty in markets in times of stress, and posed and will examine the complex issue of separating retail risks to financial stability. and investment banking functions, which was raised by Members on both sides of the House. It is due to deliver Notwithstanding the comments made by the hon. its report to the Cabinet Committee on Banking Reform Gentleman, the UK has shown strong leadership in by the end of September 2011, and its findings will help reforming the derivatives markets. We have continually to shape the UK’s banking sector for decades to come. called for more transparency and central clearing of OTC derivatives. Internationally through the G20 and One of the issues that have been a focus of international the Financial Stability Board, and in Europe through debate is linked to the work of the independent banking the European market infrastructure regulation, we are commission. Recent interventions have reinforced implementing vital reforms that will address the perceptions that some institutions in particular are too shortcomings evidenced by the crisis in the derivative big or too important to fail: the so-called systemically markets. important financial institutions, or SIFIs. They pose a much greater risk to taxpayers and to the efficient The right hon. Member for Oldham West and Royton working of markets. We believe that it is vital for us to has proposed that the Government should establish a eliminate that source of moral hazard, and to ensure clearing house for approval of all financial derivatives. that it is possible to resolve failing firms without triggering However, in the crisis, the private sector clearing houses a systemic crisis or requiring support from taxpayers. successfully unwound the positions of defaulting members. The Government are taking an active role in the G20 Their prudent risk management meant that they did and in the Financial Stability Board’s work on the not need assistance from the public sector, despite being development of a robust, internationally consistent policy directly exposed to failing institutions such as Lehman framework to address SIFIs and the risks that they Brothers. We therefore believe that clearing houses as pose. We fully support the principle that they should be private sector entities are able to manage risk effectively, required to have a higher loss-absorbency capacity than but we also believe that central counter-parties should other institutions. be bound by high standards given their systemic importance, and that those standards should be harmonised on an That is just one sphere in which international international basis. The Government are committed to co-operation is needed. We recognise that financial ensuring that that happens. stability cannot be achieved by any one country operating in isolation. The UK has a commanding position in The main aim of our reform should be the reduction international financial services, and the industry is global of systemic risk in the financial sector. It should cover in character. It is therefore vital that we co-ordinate our derivatives only when central clearing will indeed bring actions with our international partners to ensure that a reduction in systemic risk. Corporate end-users that we have effective means for dealing with threats as they trade derivatives purely for the purposes of hedging, as arise. We have consistently argued for strengthened opposed to speculation, will be exempt from the clearing 595 Banking Reform29 NOVEMBER 2010 Banking Reform 596 obligation. That will reduce the cost that will be passed Division No. 132] [7.32 pm on to their customers. I reject the arguments in the motion. AYES The motion tabled by the right hon. Member for Corbyn, Jeremy Skinner, Mr Dennis Oldham West and Royton fails to recognise the action Crausby, Mr David Williams, Hywel that we have taken to reform financial regulation at Durkan, Mark Wood, Mike home and abroad. We have done more in the past seven Edwards, Jonathan months than our predecessors did. We are building a Illsley, Mr Eric Tellers for the Ayes: new financial regulatory architecture and approach. Mann, John Mr George Mudie and Banks will hold higher amounts of capital so that their Shannon, Jim Mr Michael Meacher shareholders, and not taxpayers, will bear the losses when the next crisis comes. International reforms NOES must strengthen financial stability, but they should be Adams, Nigel de Bois, Nick proportionate and should not choke off economic recovery. Afriyie, Adam Dinenage, Caroline Over the past few months, this Government have led Aldous, Peter Djanogly, Mr Jonathan the debate on financial reforms both at home and Alexander, rh Danny Doyle-Price, Jackie Amess, Mr David Drax, Richard abroad. We are taking the action that is required to Andrew, Stuart Duddridge, James create a much more sustainable and stable financial Arbuthnot, rh Mr James Dunne, Mr Philip system, and if the motion is put to a vote, I will urge my Bacon, Mr Richard Ellis, Michael hon. Friends to oppose it. Bagshawe, Ms Louise Ellison, Jane Baker, Norman Ellwood, Mr Tobias 7.30 pm Baker, Steve Elphicke, Charlie Baldwin, Harriett Eustice, George Mr Meacher: I was astonished to hear the Financial Barclay, Stephen Evans, Graham Secretary say he thinks that the regulation of financial Barker, Gregory Evans, Jonathan derivatives in the last financial crisis was adequate, since Baron, Mr John Evennett, Mr David it seems to me to be clear that that was not so. Barwell, Gavin Fabricant, Michael Bebb, Guto Fallon, Michael This has been one of the most thoughtful, high Beith, rh Sir Alan Featherstone, Lynne quality and rewarding debates I have taken part in, or Beresford, Sir Paul Field, Mr Mark heard, in the House for a very long time, and we must Berry, Jake Foster, Mr Don thank the Backbench Business Committee for bringing Bingham, Andrew Francois, rh Mr Mark a new tenor of openness and genuine discussion into Birtwistle, Gordon Freeman, George debates, rather than adversarial confrontation. Blackman, Bob Freer, Mike For Members who may be considering how to vote, Blackwood, Nicola Fullbrook, Lorraine let me state once again that I did not say that no action Blunt, Mr Crispin Fuller, Richard Boles, Nick Gale, Mr Roger has so far been taken by the Government; I think they Bottomley, Peter Garnier, Mark have taken action. I said that no action has so far been Bradley, Karen Gauke, Mr David taken that would prevent a recurrence of the financial Brake, Tom George, Andrew crash, and simply shifting regulation from the Financial Bray, Angie Gibb, Mr Nick Services Authority to the Bank of England is certainly Brazier, Mr Julian Gilbert, Stephen not going to achieve that. Bridgen, Andrew Gillan, rh Mrs Cheryl I took a brief note of the most important points Brokenshire, James Glen, John made by each Member who contributed to the debate, Brooke, Annette Goldsmith, Zac and I was astonished at the high measure of agreement—I Browne, Mr Jeremy Gove, rh Michael Bruce, Fiona Graham, Richard will not say consensus—on the issues and, to some Buckland, Mr Robert Grant, Mrs Helen extent, on what ought to be done. These included the Burley, Mr Aidan Gray, Mr James following: the problem of the creation of runaway Burns, Conor Grayling, rh Chris credit; the importance of Basel counter-cyclical capital Burns, Mr Simon Green, Damian controls; the separation of retail and investment banking; Burrowes, Mr David Greening, Justine the need for a rebalancing of the economy, with the Byles, Dan Gummer, Ben banks giving more emphasis to industrial investment; Cairns, Alun Hague, rh Mr William improved accountability and competition; the need for Carmichael, Neil Halfon, Robert universal banking and the re-mutualisation of some Carswell, Mr Douglas Hames, Duncan banks, perhaps including Northern Rock; the need for Chishti, Rehman Hancock, Matthew higher ethical standards; the overriding need for greater Clark, rh Greg Hands, Greg transparency; the need for equity financing; and the Clifton-Brown, Geoffrey Harper, Mr Mark need for greater diversification in banking structure. Coffey, Dr Thérèse Harrington, Richard These are all issues—and I have missed out some—on Collins, Damian Harris, Rebecca Colvile, Oliver Hart, Simon which I think there is broad agreement across the Chamber. Cox, Mr Geoffrey Harvey, Nick Having had an extremely valuable debate, I hope Crabb, Stephen Haselhurst, rh Sir Alan Members will carefully consider the terms of the motion, Crouch, Tracey Hayes, Mr John as it is quite modest. It was designed to get broad Davey, Mr Edward Heald, Mr Oliver cross-party agreement, and I hope it will achieve that. Davies, David T. C. Heath, Mr David Question put. (Monmouth) Heaton-Harris, Chris Davies, Glyn Hemming, John The House divided: Ayes 10, Noes 284. Davies, Philip Henderson, Gordon 597 Banking Reform29 NOVEMBER 2010 Banking Reform 598

Hinds, Damian Maynard, Paul Rees-Mogg, Jacob Syms, Mr Robert Hoban, Mr Mark McCartney, Jason Reevell, Simon Teather, Sarah Hollingbery, George McCartney, Karl Rifkind, rh Sir Malcolm Timpson, Mr Edward Hollobone, Mr Philip McIntosh, Miss Anne Robertson, Hugh Tomlinson, Justin Holloway, Mr Adam McLoughlin, rh Mr Patrick Robertson, Mr Laurence Truss, Elizabeth Hopkins, Kris McPartland, Stephen Rogerson, Dan Turner, Mr Andrew Howell, John McVey, Esther Rosindell, Andrew Tyrie, Mr Andrew Huhne, rh Chris Menzies, Mark Ruffley, Mr David Uppal, Paul Huppert, Dr Julian Metcalfe, Stephen Russell, Bob Vaizey, Mr Edward Hurd, Mr Nick Mills, Nigel Rutley, David Vara, Mr Shailesh Jackson, Mr Stewart Milton, Anne Sanders, Mr Adrian Vickers, Martin James, Margot Mitchell, rh Mr Andrew Scott, Mr Lee Villiers, rh Mrs Theresa Javid, Sajid Morgan, Nicky Selous, Andrew Walker, Mr Charles Jenkin, Mr Bernard Morris, Anne Marie Sharma, Alok Walker, Mr Robin Johnson, Gareth Morris, David Shelbrooke, Alec Wallace, Mr Ben Jones, Mr Marcus Morris, James Shepherd, Mr Richard Ward, Mr David Kawczynski, Daniel Mosley, Stephen Simmonds, Mark Watkinson, Angela Kelly, Chris Mowat, David Simpson, Mr Keith Kirby, Simon Mulholland, Greg Skidmore, Chris Weatherley, Mike Knight, rh Mr Greg Munt, Tessa Smith, Miss Chloe Webb, Steve Kwarteng, Kwasi Murray, Sheryll Smith, Henry Wharton, James Lamb, Norman Murrison, Dr Andrew Smith, Julian Wheeler, Heather Lancaster, Mark Neill, Robert Soames, Nicholas White, Chris Lansley, rh Mr Andrew Newmark, Mr Brooks Soubry, Anna Whittaker, Craig Latham, Pauline Newton, Sarah Spelman, rh Mrs Caroline Whittingdale, Mr John Leadsom, Andrea Nokes, Caroline Spencer, Mr Mark Williams, Mr Mark Lee, Jessica Nuttall, Mr David Stanley, rh Sir John Williams, Roger Lee, Dr Phillip Offord, Mr Matthew Stephenson, Andrew Williams, Stephen Leech, Mr John Ollerenshaw, Eric Stevenson, John Williamson, Gavin Lefroy, Jeremy Opperman, Guy Stewart, Bob Willott, Jenny Leslie, Charlotte Parish, Neil Stewart, Iain Wilson, Mr Rob Letwin, rh Mr Oliver Patel, Priti Stewart, Rory Wollaston, Dr Sarah Lewis, Brandon Paterson, rh Mr Owen Streeter, Mr Gary Wright, Jeremy Lewis, Dr Julian Pawsey, Mark Stride, Mel Wright, Simon Liddell-Grainger, Mr Ian Penning, Mike Stuart, Mr Graham Young, rh Sir George Lidington, Mr David Penrose, John Stunell, Andrew Zahawi, Nadhim Lilley, rh Mr Peter Percy, Andrew Sturdy, Julian Lloyd, Stephen Perry, Claire Swales, Ian Tellers for the Noes: Long, Naomi Pickles, rh Mr Eric Swayne, Mr Desmond Mark Hunter and Lord, Jonathan Pincher, Christopher Swinson, Jo Bill Wiggin Loughton, Tim Poulter, Dr Daniel Luff, Peter Pugh, Dr John Question accordingly negatived. Lumley, Karen Raab, Mr Dominic Macleod, Mary Randall, rh Mr John Main, Mrs Anne Reckless, Mark May, rh Mrs Theresa Redwood, rh Mr John 599 29 NOVEMBER 2010 Independent Financial Advisers 600 (Regulation) Independent Financial Advisers versus those of customers not being fully aligned. The (Regulation) FSA set up the retail distribution review—RDR—in 2006 to address those problems, and the new rules are due to come into force in January 2013. Specifically, 7.46 pm according to the FSA, the RDR aimed to bring about three principal changes. The first was an improvement Mark Garnier (Wyre Forest) (Con): I beg to move, in the clarity with which firms describe their services to That this House has considered the matter of regulation of consumers. Secondly, it sought to address the potential independent financial advisers. for advisers’ remuneration to distort consumer outcomes. I am delighted that my hon. Friend the Member for Finally, it aimed for an improvement in advisers’professional West Worcestershire (Harriett Baldwin) and I have secured standards. this debate. As all hon. Members will know, this country finds itself in a dire financial situation, which extends Tony Cunningham (Workington) (Lab): On that final deep into the private lives of many of our citizens. This point, I have also had a number of people writing to me. country has the lowest personal savings ratio in the G20 Would the hon. Gentleman agree that one of the overriding and the highest level of personal debt, with half of all concerns—I have had letters from people with 29 or 30 the personal debt in the EU borne by the inhabitants of years’ experience—is that experience does not seem to these islands. We face a well-known problem of pensions count for anything? underfunding, involving not just a deficit on pension liabilities but the fact that people are not putting enough Mark Garnier: That is a recurring theme and I shall aside for their retirement. Mortgages were taken out at come on to that point, but the hon. Gentleman is right the height of the boom, in some cases at levels higher to raise it. It has been raised by huge numbers of IFAs than 100% of the value of the property to which they who have got in touch with me, my hon. Friend the relate, and mortgage lenders worry about the next time Member for West Worcestershire (Harriett Baldwin) bomb that may hit our economy—a trend towards and with many other Members. interest-only mortgages. These are mortgages where the The three aims that the FSA has talked about are, I borrower hopes that inflation and an opportunity to believe, laudable in principle, overall. It is not our downscale will pay off their mortgage. We also have a intention tonight to derail the retail distribution review, housing market in which many commentators still consider which will improve standards for consumers. I suspect there is more readjustment to come. that not a single professional in the industry would It is against that background that we are debating the disagree with the overall principles. Indeed, Which?, the regulation of an important group of professionals, namely consumer champion, strongly supports the measures independent financial advisers. I am particularly keen contained in the RDR, and states that its members to talk about that group because if we are even to begin “firmly believe that the IFA industry is best placed to offer this to deal with the problems that I have outlined, we need advice” a resource of professionals who will be able to spread However, the devil is, as always, in the detail. the word and give sound financial advice to the wider In addressing the problems, the FSA has, through the population. The marketplace for retail investment advice RDR, introduced issues that disproportionately affect in the UK is very diverse, involving banks, building the IFA community. The IFA trade organisation, the societies, stockbrokers and some 33,000 independent Association of Independent Financial Advisers—AIFA— financial advisers, as well some other players. It is fair to suggested in evidence to the Treasury Select Committee say that there have been problems in the past, and the that although some 30% of IFAs strongly supported the Financial Services Authority suggested in its evidence RDR and 40% were rather ambivalent towards it, 30% to the Treasury Committee last week that there was and would not put up with the RDR. The 30% who are still is a significant amount of mis-selling every year; a against the RDR suggest that it would be better to leave figure of some £250 million a year was volunteered, but the industry altogether, so the community of IFAs that is based largely on assumption and extrapolation would shrink significantly. from previous mis-selling scandals. Glyn Davies (Montgomeryshire) (Con): Does my hon. Mr Brian H. Donohoe (Central Ayrshire) (Lab): A Friend agree that that is particularly damaging in rural number of constituents have come to me because they areas, where all the independent advisers are either are very concerned about what the hon. Gentleman is one-man businesses or very small businesses, and that a talking about, as they are going to have to revalue huge proportion of the 30% who do not like the RDR themselves and go through another examination. Can are likely to come from such rural areas? he shed some light on why that should be? Mark Garnier: My hon. Friend makes an important Mark Garnier: I trust that the hon. Gentleman is point. Small businesses in rural areas are likely to be referring to the independent financial advisers, who will most affected because they have so few resources in have to do that. I will come to that a little later in my their offices. As a direct result, poorer communities in speech, if I may, but I will address it specifically. rural areas will be denied access to independent financial The point I was making is important because it advice. That is not a good thing. highlights the significant amount of money being drawn Lord Turner, the chairman of the FSA, suggested out of the net savings pool of the country. It is only that reducing the number of IFAs might well reduce the right that the FSA and the regulators should address overall cost of investor advice. How can reducing the problem. They looked into it and surmised that in competition possibly result in improved service to this marketplace competition is hindered by opaqueness consumers? The key issues facing the worried community and incentive conflicts, resulting in the interests of firms of IFAs can be reduced to just a handful of salient 601 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 602 (Regulation) (Regulation) [Mark Garnier] and is determined to put out of business any IFA who is reluctant to take their exams or to subject themselves to points. The first concerns qualifications, which are probably the FSA’s ill-thought-through in-house assessment. the cause of the biggest mailbags on this subject. It has been said, perhaps a little harshly, that IFAs hold a Mark Pawsey (Rugby) (Con): Does my hon. Friend qualification no better than that of a McDonald’s burger agree that if experienced independent financial advisers bar employee—a qualification and credit framework are driven from the market, those who will lose out level 3 pass, which is equivalent to an A-level. most will be those with the smallest amount of assets, The RDR requires all financial advisers to attain the who will not get the advice that they receive at present? QCF level 4 pass and, in the broadest sense, that is not unreasonable. However, it does not take into account Mark Garnier: Absolutely. The other group of people the fact that a great many IFAs have a wealth of who will lose out because of the removal of these experience but, with an average age of 47, little enthusiasm grey-haired sage IFAs will be the younger ones. Who to start taking exams. It is estimated that the exams will will mentor the young, aspiring and highly qualified but require 100 hours of study for each of four modules—that short on experience new trainee? The FSA has no is 400 hours of study. We must bear in mind the fact answer. that that is for a full-time professional who needs to Let me turn now to fees and commissions. The FSA earn a living and who may, as my hon. Friend the is further proposing that from January 2013 consumers Member for Montgomeryshire (Glyn Davies) mentioned, will no longer be able to choose how their adviser is be working by himself in a rural community with little remunerated. support. Tracey Crouch (Chatham and Aylesford) (Con): Does Mr John Baron (Basildon and Billericay) (Con): Can my hon. Friend know of any survey that has been my hon. Friend come up with any explanation of why conducted of whether consumers have any appetite to grandfathering rights could not be applied to those with pay fees for their financial advice? long experience as IFAs, given that such experience is much needed in the marketplace by savers who are desperate to make good financial decisions? Mark Garnier: My hon. Friend will not be at all surprised to hear that there are a number of surveys. Mark Garnier: I can see no reason at all for not Which? Undertook a survey that showed that 85% of introducing grandfathering rights. Indeed, when the people would prefer to pay fees, yet a survey by Harris FSA was set up it introduced grandfathering rights Interactive showed that only 6% of the public said they when IFAs came over from the personal finance authority. would be happy to pay fees as opposed to commissions. That is a big problem, I think. Mr Graham Stuart (Beverley and Holderness) (Con): In future, customers will need to agree a fee with their I congratulate my hon. Friend on opening this important adviser. That means that no longer will a client pay for debate this evening. Jon Marris, a constituent of mine advice via a commission charged on a transaction. and an IFA, came to see me on Friday. He has already passed the exams that will be required—he has done Justin Tomlinson (North Swindon) (Con): I congratulate the 400 hours of study—but, even from his position, he my hon. Friend on this excellent debate. Does he agree believes it is ridiculous that those who have been in the that if it is believed that commission makes advisers industry for many years should be forced to go through more inclined to promote products with higher commission, that. Although he has been able to do this, he thinks the same would surely apply to banks that offer their that the removal from the market of people who are staff product sales incentives? Should changes not be perfectly capable of doing their job but who might not consistent across the sector? be able to get through the exams, even though they have shown for many years that they can look after customers, Mark Garnier: Yes, they should, and it is fair to say is completely wrong. that the FSA is looking at the whole sector. At the moment, every client is given the option of Mark Garnier: I think my hon. Friend’s constituent paying for their advice via a fee or commission. Since agrees with us all. 1991, every client of every IFA has been given full The IFA community is broadly in support of raising details in writing of the adviser’s commission, and the excellence in the profession, and many are opting to overwhelming majority of clients elect to pay by take qualification exams on their own initiative without commission. During that period, the market share of the dead hand of the FSA pressing them to do so. the IFA sector has increased from 29% to more than Indeed, the website unbiased.co.uk lists IFAs by their 65%—based on commission charging—with consumers qualifications, so the move towards improved excellence demonstrating a clear understanding of and preference is already going ahead under its own steam. A significant for independent financial advice. It should be noted number—possibly as many as a third—feel that their that independent advice is not the preserve of the 20, 30 or 40 years of experience not only trumps any wealthy. Some 60% of IFA clients are ranked as C1 or exams but covers a significant depth of knowledge in below. If consumers are forced to pay a fee for advice, it their chosen areas, which will surpass any exam is inevitable that many who would benefit from independent requirements. In taking exams, they will also be tested advice will not seek it, resulting in only the well-off on areas they choose not to specialise in. As I and many accessing a significantly reduced IFA sector. The subject hon. Members have said, the FSA seems blind to their of commissions is extensive and I am sure that many expertise. The FSA does not recognise that experience hon. Members will want to expand on it in their speeches. 603 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 604 (Regulation) (Regulation) John Woodcock (Barrow and Furness) (Lab/Co-op): Does the hon. Gentleman agree that in putting together Does the hon. Gentleman not agree that this issue is not the RDR, the FSA has throughout consistently ignored clear cut? Surely it is right that there is some concern all the comment from the industry, this place and elsewhere about the idea of a commission. Is it not the case that and that the time has come for it to listen and to review the concern over not wanting to pay fees is about paying the whole set-up? a fee up front? Could the fees not be back-ended in the way that commission effectively is, making it a flat rate? Mark Garnier: The hon. Gentleman is absolutely Mark Garnier: The issue of commissions is complex right. The overriding message coming back from the and is surrounded by several other issues, one of the IFA community is of being ignored by the regulator. It simplest of which is that the Office of Fair Trading has has been suggested that Adair Turner, as someone who deemed it right that the providers of the products comes from McKinsey, looks at the issue from a box-ticking should be able to charge or incentivise IFAs and salespeople perspective as opposed to considering the fundamental in a variety of ways. The difficulty with allowing different needs of the consumer, which is the important issue. levels of remuneration to IFAs is that it creates some of IFAs, are going to bear the brunt of the changes, and the problems we have talked about, but the OFT will especially those with small operations in rural communities. not allow a flat rate of commission, which is one solution that could have dealt with this issue. Mr Adrian Sanders (Torbay) (LD): Is not the problem The risk in being an IFA is a major issue. All professions with the whole process the fact that it is angled carry an element of professional risk, which is covered disproportionately at hurting small traders, often in the by professional indemnity insurance. In pricing that poorer areas of the country? That needs to be reversed risk, underwriters take into account the fact that there if the changes are to receive any credibility in or support is a so-called long-stop of liability, which is usually from this place. about 15 years, but that is not the case for IFAs. It has been deemed fair for IFAs to have an unlimited period Mark Garnier: That is absolutely right. of liability, such that an 80-year-old retired sole trading IFA might be liable for a product sold half a century Mr Andrew Tyrie (Chichester) (Con): I apologise for earlier. It might be that the claimant has a legitimate breaking up my hon. Friend’s excellent speech. Does he claim, but in our compensation culture it might be that agree that a crucial point that we must get across to the he does not feel satisfied with what he has got and is just FSA tonight is that the increase in these compliance having a go. burdens will be paid for by the consumer who will In practical terms, for a limited liability company, as therefore lose out? The loss of perspective from the the business gets older it becomes less saleable as it FSA and the inflexibility of its approach in implementing accrues a large pool of risk on the products it has sold the changes are reflected in the large number of people since it opened its door to trading. Is it fair that an IFA here today. could be chased to the grave in a manner that no other profession allows? Will that indefinite level of risk be an Mark Garnier: Absolutely, and I am very grateful to incentive to newcomers coming into the profession? I my hon. Friend the Chairman of the Treasury Committee think that the answer to both those questions is no. for bringing that up. The cost of implementing the RDR is high. Currently, The £1.7 billion costs being pushed on to the consumer a firm of IFAs with up to 25 advisers is required to put mean that £1.7 billion will be taken out of the savings aside only £10,000 by way of regulatory capital. That pool. We simply cannot take that approach if we are minimum will double under the RDR, but there is a trying to encourage people to save and to pay off their new element to come in. Under the new rules, firms may debts. That is why the changes are so fundamentally be required to put aside 90 days’ worth of operating wrong. IFAS will have to bear the brunt of them, costs. For the better-run firms with sophisticated systems especially those with small operations where the requirement and offices that could be a significant increase. It is not to sit exams, recapitalise and install new compliance inconceivable that a firm employing 10 qualified IFAs systems, as well as all the other requirements of RDR, supported by high-quality support staff could see its will often be handled by the same individual who is regulatory capital rise from £10,000 to £200,000, £300,000, offering advice to the customer. Hector Sants estimated £400,000 or even £500,000. That rule alone is an incentive that implementation might mean a loss to the IFA for firms to go from providing a high-level service to a community of 20% of the professionals who work in cut-price one. this arena today. Adair Turner has said that this is an But what does all this mean for the cost of the RDR acceptable cost, but I do not agree. It is unacceptable to the consumer? The original estimates for the cost-benefit that up to 3,000 professionals according to the FSA’s analysis of the RDR gave a net present value of £600 million figures, and more according to other research, will lose for the first five years including one-off costs. That has their livelihoods. Among those who stay, the cost will be now risen to a truly staggering £1.7 billion in order to passed on to the consumer, as my hon. Friend the address an unsubstantiated cost of mis-selling £250 million. Member for Chichester (Mr Tyrie) has said. Moreover, it is by no means the responsibility of the There are many questions to ask. Will the RDR deal IFA community alone. In 2009, according to the financial with the cowboys? Will a reduction in the number of ombudsman, just 2% of complaints in this area related IFAs encourage a savings culture or detract from it? Is it to the activity of IFAs, while 61% related to banks, but right that when we are encouraging entrepreneurs to set 65% of the market share is held by IFAs. up new businesses, the outgoing regulator should be Dan Rogerson (North Cornwall) (LD): I congratulate bringing about such devastating change to this industry? the hon. Gentleman and the hon. Member for West My constituent Mike Jeacock is typical of the type of Worcestershire (Harriett Baldwin) on securing this debate. IFA who is threatened by the RDR. He runs a high 605 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 606 (Regulation) (Regulation) [Mark Garnier] comprehensively, in such detail and so fairly. This matter is a great problem, but it had gone under my radar as a street shop in Stourport-on-Severn and he networks for Member of Parliament until a constituent of mine who new business amongst his mates in the Stourport Workmen’s is an independent financial advisor came to my surgery Club. These are not high-rolling wealth managers prowling and explained what is happening. He falls into the family offices in Mayfair. We are talking about people category of being someone in his 50s who for the first who earn a living honestly servicing the financial interests time in 30 years is required to study for an examination of people who can afford little but who need financial to keep his job, regardless of how long he has been in advice. the industry with a complaint-free record. I find that The retail distribution review is a significant market amazing. intervention, and market interventions, particularly of As a member of the Treasury Committee, I have tried such a fundamental and far-reaching nature, require to aid the hon. Member for Wyre Forest—although he overwhelming evidence of consumer detriment and the does not need aid—or at least stand alongside him to appropriateness of the solution. In addition, any solution press for an investigation. I find it worrying that decisions needs to meet cost-benefit requirements. Does the RDR can be taken by a regulator without recourse to the satisfy these tests? It appears to be based on a combination House, and almost without recourse to anyone. Last of unfounded assertions, limited and contradictory research week, as the hon. Gentleman mentioned, both the FSA and, as regards some of its solutions, little more than a and the Governor of the Bank of England came before hunch that the outcome will somehow be better than the Committee, which was an opportunity—although the present system. we had a full agenda—to press the matter and question It is estimated that up to 10,000 experienced IFAs of them. good standing will be forced to retire for no valid The background against which the decision has to be reason. judged is interesting. The FSA, rightly, admitted to many mistakes in the operation of its light-touch regulations. Teresa Pearce (Erith and Thamesmead) (Lab): The It was probably more open than the Bank of England, FSA says that only less competent advisers will not be but that is another story. After Northern Rock, the FSA able to comply with the new qualifications and that the was very straightforward in meeting after meeting; it changes will therefore act as a sort of natural selection came clean and accepted criticism about light-touch for the industry. Does the hon. Gentleman agree that regulation. However, Hector Sants decided in a policy the opposite might be true because it will be the more speech to project a new image—from where, I do not successful and long-experienced advisers with well- know. He stated that in future financial firms would developed client lists who will not be able to comply or fear the FSA, but there is a pendulum effect. If something who will choose not to, and that we will therefore lose is released it tends to go too far in the other direction, their experience from the industry? and I rather fear that the FSA, in attempting to salvage its reputation—if it had one—has moved too far to Mark Garnier: Yes, I agree entirely. It is absolutely demonstrate that it is not a soft touch as well as a light the case that the harder-working and more successful touch. IFAs simply will not have time to take the exams and Members may think that I exaggerate. The FSA is start dealing with the dead hand of regulation from undertaking two reviews; retail distribution is one and the FSA. the hon. Member for Wyre Forest mentioned the other—the With up 10,000 experienced IFAs of good standing mortgage market review. If Members have not received potentially being forced to retire for no valid reason, it many letters and e-mails about the RDR, there will is estimated that as many as 3 million existing clients, certainly be anguished people contacting them when many of whom will be elderly, will lose access to their the full power of the MMR comes into effect and young trusted adviser as of 1 January 2013. I fear that without first-time buyers who are self-employed find it difficult the FSA looking again at grandfathering the experienced to get a mortgage. through the process of implementation and without a rethink about commissions, independent financial advice Nicholas Soames (Mid Sussex) (Con): It is not just will become the preserve of the wealthy only. that the FSA has not listened to the industry or its professionals, which will undoubtedly damage the Alun Cairns (Vale of Glamorgan) (Con): Will the profession. Does the hon. Gentleman agree that the hon. Gentleman give way? really foolish thing, which is just as serious, is that it will profoundly damage the interests of the consumer? Yet Mark Garnier: I have just about finished actually. the FSA seeks to protect the consumer.

Several hon. Members rose— Mr Mudie: I completely agree. Madam Deputy Speaker (Dawn Primarolo): I remind I forgot to congratulate the hon. Member for Wyre hon. Members that there is a six-minute time limit on Forest on securing the debate and on introducing it. I contributions in the debate from now on so that we can also congratulate all Members in the Chamber. It appears try to ensure that everybody gets in. that the only thing we can do is to come to the Chamber and voice our anger and concern. When the Committee discussed with the Bank of England the new powers of 8.9 pm the new regulator, it was the British Bankers Association, Mr George Mudie (Leeds East) (Lab): I congratulate of all people, who raised the democratic deficit. The the hon. Member for Wyre Forest (Mark Garnier) on point was made that we were handing so much power to securing the debate and on putting the case so the regulators and the banks that there was great danger 607 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 608 (Regulation) (Regulation) that they would be pronouncing and taking action on The Chairman of the Treasury Committee pointed matters that affect us as representatives of our constituents out how many Members are in the Chamber this evening —matters relating to employment and standards of for a Back-Bench business debate, when we are not living. In our humility and generosity, we are passing obliged to be here by anyone other than the constituents great power to the regulators on matters for which we who have contacted us with their concerns. will be accountable—perhaps not in law, but in the view of the public. We will be accountable for the actions of Alun Cairns: I support what my hon. Friend said the regulators, so a rethink is very necessary. about the number of Members present this evening, which is unusual, as she pointed out. The indication so Alun Cairns: I thank the hon. Gentleman for giving far is that this is a cross-party issue and that party way. I, too, pay tribute to my hon. Friends the Members politics is not playing a part in it. The comments from for Wyre Forest (Mark Garnier) and for West the Opposition Benches support the comments made in Worcestershire (Harriett Baldwin) on initiating the debate. the debate. I congratulate them on that. Harriett Baldwin: I entirely agree. We have learned in Does the hon. Member for Leeds East (Mr Mudie) the past few years how important good financial regulation accept that the FSA could be acting in the context of, is. on the one hand, lack of regulation in the banking Imagine the outrage there would be in the Chamber if industry in the past, leading to a complete knee-jerk a Minister said from the Dispatch Box, “I am going to reaction and, on the other, disproportionate regulation put between 20% and 30% of an industry out of business at the consumer end of the market, such as the debate is at the stroke of my pen on 1 January 2013”? It is highlighting? unbelievable that we have allowed an organisation to grow and, unscrutinised by this legislative body, have Mr Mudie: I do not completely agree. I think the such a power over our constituents’ lives. banks could be the beneficiaries if 30,000 independent financial advisers are taken out of the market. The hon. Mr Andrew Turner (Isle of Wight) (Con): Does not Member for Wyre Forest referred to Lord Turner, whose my constituent, Mike Ward of Ward Financial Services, attitude was that the number would not be 30,000, but have a point when he says: “People need to understand between 10,000 and 20,000, which was acceptable, otherwise that business has changed in recent years. People won’t the FSA would not be doing it. There was no explanation trust banks as much as they did in the past, so they must why the number was acceptable, or of the unintended be careful not to undermine the relationship between consequences of the decision. The authority had just themselves and their clients. That would not be the right decided that it would be acceptable. way forward”? Ordinary people who have worked in the industry for decades will be hurt by the decision. It is not a knee-jerk Harriett Baldwin: I thank my hon. Friend for that response to oppose the direction of a decision and the intervention. It is the banks that are likely to be advantaged manner in which it is being imposed on individuals who by the change in regulations. I am afraid I have only six have worked in the industry without blemish. It would minutes in which to raise the many questions that I have not happen in other industries and other practices. In about the regulation. I shall focus on a couple of areas addition, there seems to be a lack of interest in the that my hon. Friend the Member for Wyre Forest diminution of choice for the ordinary consumer of all (Mark Garnier) did not touch on much in his remarks, ages if the decision is forced through. which were extremely comprehensive. The Treasury Committee has asked for responses. I I want to hear more about the handing of a competitive plead with every Member, whether or not they are in the advantage to the banks. It is my understanding from my Chamber, to do some writing and complain. They discussion with the Financial Services Authority that should ask the very able Chairman of the Committee, banks that are trading overseas could come into this who is standing by the Speaker’s Chair, to call a review country and continue to offer advice. The European meeting so that we can call individuals on this subject. Union is about to consult on something called the We do not want to tie it up in a long agenda where directive for packaged retail investment products. It it receives only 10 minutes’ scrutiny; we want a full would be wise for the FSA to wait and see the results of meeting where witnesses are placed under real scrutiny the consultation before it takes permanent steps here to and asked both to account for the decision and to put out of business 20% of the independent financial reconsider it. advisers. I have also heard through the Westminster Hall debate that my hon. Friend the Minister has talked about the 8.18 pm free annual financial health check that the Consumer Harriett Baldwin (West Worcestershire) (Con): All I Financial Education Body will be able to offer. I want can say is “Wow,” when I see how many colleagues and to hear more tonight from the Minister about how that Opposition Members have shown up this evening to will be delivered and what the additional cost to the take part in this historic debate. I believe this is the first industry through the social responsibility levy will be. time in this Chamber that the Financial Services Authority, Has that additional cost to the industry been factored which was set up by the former Prime Minister as the into the £1.7 billion that is the five-year cost of the retail independent statutory regulator, has been subject to distribution review? such parliamentary scrutiny. In fact, I believe that we For the remaining four minutes at my disposal, I shall are today showing that we can, and do, take a real focus on my main area of concern, which has been interest in what the independent statutory regulator is raised by colleagues—the question of the qualifications. doing. Imagine if nurses who were qualified were suddenly 609 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 610 (Regulation) (Regulation) [Harriett Baldwin] much. The hon. Member for Devizes (Claire Perry) was making an open-arms gesture, but I do not know whether told that from now on, nursing was to be a degree-level I want to go down that route. If détente breaks out, I qualification, and that all existing nurses would have to for one will be delighted. I have been contacted by a pass that degree-level qualification or they would not be number of individuals and groups who have significant able to practise their profession. That is what is happening concerns about the impact of the retail distribution to our independent financial advisers. review. If I thought that passing an exam would prevent The review purports to set new parameters for this mis-selling and we would never have another incidence important sector of our economy, and regulation is at of mis-selling in future, I would be more supportive of its heart. The chief executive of the Financial Services the idea, but I do not see that an ability to pass an exam, Authority characterised the review under three main which someone in their 20s might be much better headings, which the hon. Member for Wyre Forest at—certainly, I was—than by the time they get into (Mark Garnier) set out—the need for a transparent and their 50s and 60s, when they have all that experience fair charging system, greater clarity on the type of about financial advice, precludes mis-selling in the future. advice offered, and a better qualification framework for I can offer a few examples. We have been inundated advisors. I have no quarrel with the first two points. We with correspondence on the issue, but a couple of may differ a little about the content. important examples stand out. One adviser wrote to me It is right that IFAs must disclose their charging who is already qualified to chartered financial planner structures to clients up front and in writing, so that the status. He is an associate of the Chartered Insurance client has the information in good time, before the Institute, which maps across to a degree-level qualification, advice process starts. It is right that the IFA must also but with the FSA’s new standards, it appears that there agree and disclose the total charges that the client will will be gaps. If advisers with such a qualification do not incur as soon as those are known. It is right that, from 1 fill those gaps in the two years available, they will no January 2013, IFAs will be able to make an ongoing longer have a livelihood in the industry. That is blatantly charge only where they provide an ongoing service. It is retrospective regulation. also right that from 1 January 2013, product providers Another important example that was brought to my will no longer be able to offer commission on their attention was a letter from the chief executive of a products, and advisers will no longer be able to receive friendly society based in Cleveland on Teesside. The commission set by product providers. That is just hiding case may be raised in the debate; I hope so. The chief the charges within the commission. The major concern executive wrote to me explaining that his door-to-door on which I think all participants in the debate agree, sales force who sell funeral policies for £1 a week and however, is the concern of constituents who have contacted life policies for up to £5 a week will now be required to me regarding the so-called better qualifications for those take the degree-level qualification. As such, he felt that who work in the market. his friendly society with its 10,000 low income customers One should not automatically be afraid of higher would have to shut it doors. May I urge the Minister to qualifications for individuals who work in this important try to influence the independent statutory regulator to sector, but the quality of the debate has not been helped be more respectful of experience as a qualification? by the tactless, ill informed and unwise comments of Mr Russell Brown (Dumfries and Galloway) (Lab): the Financial Secretary to the Treasury, who caused Does the hon. Lady agree with this statement: it is one great anger among IFAs during a debate in Westminster thing to impose new rules on new entrants to the IFA Hall, when he compared the current level 3 minimum profession; it is quite another thing to disqualify someone qualification for advisers to that of a McDonald’s shift who is already qualified? worker. Harriett Baldwin: Indeed. I understand that there is Claire Perry (Devizes) (Con): Does the hon. Gentleman to be an alternative based assessment. The Minister agree that, by focusing so narrowly on qualifications, mentioned it in the Westminster Hall debate, but I want we miss one of the most important things in any investment to try to make sure that he works closely with the FSA industry—experience and a track record? By narrowly to publicise that route more extensively, and that he defining what we think of as the appropriate qualifications, works with the FSA perhaps to soften the cliff-edge of we completely ignore the experience that many IFAs disqualification on 1 January 2013. We all want to see bring to their positions. They will be forced out by such better qualified financial advisers, no question about it, regulation. but to close the door on financial advisers practising their profession on 1 January 2013 is not on. Mr McCann: I agree entirely, and I shall address that In conclusion, financial advisers face a triple whammy. point a little later. It is why my constituents and I were We have heard about some of the other issues, but the so angered by the comparison of the current level 3 one that we would all see as being the most illogical is minimum qualification to that of a McDonald’s shift the one about qualifications. As the Government go worker. It is, indeed, an insult to the many of thousands through the process of changing the way the FSA of people who work for that company—a company operates, I urge my hon. Friend the Minister to change whose products, looking around the Chamber this evening, the way the FSA regulates the sector. I am sure a few people have sampled.

8.26 pm Dr Andrew Murrison (South West Wiltshire) (Con): Mr Michael McCann (East Kilbride, Strathaven and The hon. Gentleman is concerned about the QCF— Lesmahagow) (Lab): The debate might be in danger of qualifications and credit framework—level 4 qualification, becoming a love-in. [Interruption.] Thank you very but is he not concerned also about the impact of the 611 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 612 (Regulation) (Regulation) measure on the need for continuing professional Mr McCann: I do not think that that point is development outlined in the RDR, and the fact that it is unreasonable at all, and it could be taken on board. likely to disadvantage small operators who will not be One point has not been mentioned in the debate, but able to rely on the critical mass of a large organisation it is an important one to make in the last minute of my when taking time off—probably about a week every speech. The final thing that my constituent said to me is year—to conduct CPD? that many IFAs work on trust. That trust takes a long time to build up with individuals. If you take that Mr McCann: I agree entirely. The measure will impact experience out of the sector, the trust will go. People on small businesses, not the big part of the sector, and will be uncomfortable about going to new IFAs because that is why the Financial Secretary should have been they will have to rebuild the trust all over again. We mindful of the commitments people have to make to should be mindful of that. gain qualifications in the sector. One IFA, in particular, The RDR is an important piece of work and it is heard the Minister’s comments and blogged: important that we get it right. For that reason, I urge “I’ve just spent 70 hours revision to pass RO1. Nobody has paid the Minister and members of the Select Committee to me for my lost time. Nobody has asked me 1 of the 100 questions take the comments away, recognise the need for common in the exam for the last 22 years. This guy”— sense to prevail and work with the industry to come to a the Financial Secretary— common-sense solution. “needs to get in the real world.” That leads me to my main contention: the proposals 8.35 pm and timetable to increase the qualifications needed to participate in this sector of the economy are not sensible. Heather Wheeler (South Derbyshire) (Con): I declare Exams and qualifications in the sector are not new, but my interest: I am an associate of the Chartered Insurance the proposal to introduce new rules that effectively force Institute, having studied for and passed my professional people to re-sit exams without taking account of their exams in 1985. Although I have not practised as an experience or, most importantly, clean regulatory record insurance broker since 1987, I wanted to speak tonight is patently unfair. Moreover, the sector will not be able because I recall the debate when I was studying about to absorb the cost of revalidation; instead, as other how the importance of exams was a strong factor in contributors have said, it will be passed on to the professionalising the insurance sector. At the time, I felt customer in the shape of higher fees. that that was an over-egging of the situation, and here we are 25 years later and the Financial Services Authority Others have also mentioned that many professional is using a sledgehammer to crack a nut. groups in the United Kingdom are not asked to revalidate, so I seriously wonder why we are trying to isolate this I am totally opposed to the new rules that the FSA is particular sector. Why, as other hon. Members have imposing on independent financial advisers. If I felt asked, do we want to take away that valuable experience that it was imposing them because there had been from that important part of the economy? bucket loads of horrendous examples of mis-selling, or because clients had been ripped off, or because there Our time is limited, and there is a limit of six minutes were statistics to show that the IFAs had been responsible on each contribution, but I too want to mention one for the majority of the complaints in the industry, individual who has contacted me in the lead-up to the perhaps I could understand. But none of that is true. As debate. He is an old friend of mine, a next-door neighbour, we have heard, the IFAs are responsible for only 2% of and it is important that we bring our experiences to the complaints from customers; the banks bear the brunt, House when we discuss such issues. Jim Hunter sells at 61%. financial products, and he contacted me, but he did not complain about the need for transparency, fairness or Mr Robin Walker (Worcester) (Con): I thank my hon. greater clarity. In fact, having done business with Jim, I Friend and congratulate my fellow Worcestershire Members know that he had all those ingredients many years ago. on having this debate. Does my hon. Friend realise that Indeed, I am sure that many people who have contacted the figures of 2% and 61% that she has just cited are hon. Members are in exactly the same boat. further strengthened by the fact that the proportion of Jim was talking to a colleague recently at a meeting. complaints against IFAs has gone down every year for The gentleman is 60 years old, with more than 30 years’ the past five years and the proportion of complaints experience in the industry, and if he sat the proposed against the banks has risen every year over the same exams he would be 63 before he finished them. Jim period? explained that that person would be lost to the industry and have to retire before his time, because he would not Heather Wheeler: My hon. Friend is correct. Is that study at that time of his life. There are many people like not interesting? Many of us have been trying to get to that, trying to make a living for themselves in difficult the background of why this retail distribution review times, and that ability to earn a living in this important was brought in and where the FSA was coming from. part of our economy will effectively be taken away from The statistics really speak for themselves, and I am them without any real benefit to the economy itself. astonished that we find ourselves in this position.

Tracey Crouch: Does the hon. Gentleman agree that, Alun Cairns: Even if the statistics were much worse although the RDR was introduced with every good than they are, does my hon. Friend believe that the intention, further work should be suspended until there proposals in the RDR would lead to improved and has been a full cost-benefit analysis of its impact on the safer advice for clients? I certainly do not believe that IFA community and, indeed, on consumers? they would, even if the statistics were worse. 613 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 614 (Regulation) (Regulation) Heather Wheeler: Absolutely. I thank my hon. Friend higher than the current requirement. The FSA will not for bringing up that point. It is clear that the baby is permit exemptions to this qualification structure, and it being thrown out with the bathwater. Nobody at the will not permit a gradual increase in qualifications FSA seems to want to explain why. IFAs that have vis-à-vis the risk and complexity of the product being offered solid advice for years, with unblemished records, advised on. The advisers at the Kensington and other should be granted grandfather rights. Like many other societies will be required to obtain degree-level qualifications Members, I have been trying to find other areas of to sell a simple endowment or whole of life policy for a business where new rules are to be introduced without maximum premium of £5.70 per week. This is the only any grandfather rights. I cannot. Even licensed properties— type of product that they sell, and the level of qualification pubs, to you and me—kept their grandfather rights required is disproportionate to the advice that they give. when the new licensing laws came in a little while ago. The syllabuses of the proposed qualifications are It has been estimated that the effect of the rules being irrelevant to the needs of those on low incomes. The introduced in 2013 will be that we will lose 30% of exams focus on trusts, inheritance tax, capital gains tax practising IFAs. Where will the business go? Yes, you and portfolio management. Those on low incomes may guessed it: to the banks—to the people who have the aspire to require this level of financial planning, but in record of providing 61% of the complaints from customers. the here and now they need advice on issues such as What is the FSA saying about that? Absolutely nothing. debt and benefits. The qualification requirements will We have to ask ourselves why the FSA is doing this. I mean that members of this society and others will be cannot find a credible reason. As we have heard, on its denied access to financial advice after 2012. The society own cost-benefit analysis, the cost of introducing these will be unable to recruit new members because its new rules has risen from £660 million to £1.4 billion to advisers will be unable to offer advice to prospective £1.7 billion. members. A lack of new members will mean that this I urge the Minister to reopen talks with the FSA, not society and others will close. As a result, their members to allow it to put 30% of IFAs out on the scrap heap will lose access to financial products that they can and not to reduce individuals’ choice of where to go for afford and, in all likelihood, will be excluded from financial advice. Finally, he should use all his charms—he financial services thereafter. knows that I know he has charm—on the FSA, because That outcome seems to contradict the aims of the the Government are new and “choice” and “fairness” FSA and the Government in tackling the issue of financial are the catchwords that represent us, not “draconian, exclusion. The RDR, while seeking to protect the interests bureaucratic, Stalinist centrists”. of high net worth consumers, is by default taking away one of the few opportunities that those on low and insecure incomes have to obtain financial products. If 8.39 pm the Government and the FSA are keen on promoting Tom Blenkinsop (Middlesbrough South and East financial inclusion and financial literacy, then the existence Cleveland) (Lab): I congratulate the hon. Member for of friendly societies like the Kensington is essential in Wyre Forest (Mark Garnier) on securing this important delivering such benefits to those on low incomes. The debate. I am pleased that the hon. Member for West concept of mutuality appears central to the idea of the Worcestershire (Harriett Baldwin) referred to the big society, yet the consequences of the RDR would be Kensington Friendly Collecting Society, which is a very to remove the remaining friendly societies that promote good organisation in my area. this notion. As a Co-operative Member, I represent the interests Jim Shannon (Strangford) (DUP): Does the hon. of some people on low incomes who have been denied Gentleman agree that the reduction in IFA numbers access to financial advice and products provided by would also have an impact on the volume of new friendly societies and mutuals as a result of the qualification insurance policies and the work that would come from requirements contained in the retail distribution review. that? The Kensington is a friendly society that has existed in Middlesbrough for 106 years. Mark Brooks, who is the Tom Blenkinsop: Yes, I certainly agree. We would lose chairman of its committee of management and a skills and experience, as well as putting people out of constituent of mine, and James Lancaster and Phil jobs for no good reason whatsoever. Carey wrote to me from the Kensington to raise their The qualification requirements would deliver no situation. The Kensington has 10,000 members throughout discernable benefit to the vast majority of consumers the Teesside postcode area. It provides savings and beyond the wealthiest few. Let me assure hon. Members insurance products to those members for as little as that by arguing against the proposed qualifications, I £1 per week and a maximum of £5.70 per week. It am not saying that such members deserve less than the provides opportunities for its members to obtain basic better-off, but merely stating that they require different financial products. Without this provision, members of things. the society would largely be excluded from financial The Kensington has increased its premium income by services and have to go to more expensive services, over 40% in the past seven years despite the fact that namely the banks, or to loan sharks. tax-exempt premium limits have not been increased The RDR is currently being finalised by the FSA. Its during this period. That indicates that there is a demand most likely outcome will be that the society will close for the service and the products. The Kensington delivers down, which will mean that 10,000 members will lose products that fulfil real needs for those on low incomes. their ability to save small sums of money for their For example, in the Teesside area, owing to bad debt funeral or for a rainy day. The reason is that the FSA is difficulties, undertakers will not proceed with a funeral proposing a blanket qualification for any person offering unless the deceased’s relatives can provide a deposit of financial advice—a qualification that is considerably £750. The Kensington, among others, can fulfil that 615 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 616 (Regulation) (Regulation) need because its minimum premium is £1 per week, which On damage to choice, Ernst and Youngestimates that is enough to generate £1,000 of death cover. It has a as a direct result of the proposals, there might be a local presence, which means that the agent can deliver a reduction of about 50% in the number of financial death claim cheque to the family directly within two advisers who are willing to carry on trading and that working days of the member dying, and the whole there might be as few as 10,000 fully accredited financial process is conducted by someone whom the family knows. advisers with about another 10,000 providing restricted The majority of members of the Kensington and services. Such a reduction is unacceptable. Even the other friendly societies in Teesside live in the poorest FSA states that there might be a loss of as much as 25% and most socially deprived council wards in the UK. in smaller firms who are willing to provide this service. Our people require honest and appropriately qualified It is difficult not to conclude from those figures that the agents who understand the benefits system, can provide proposals will affect choice. I find it hard to accept the advice on debt issues, and can generally assist in all FSA’s argument that it is bringing forward the proposals forms of financial planning for those with limited disposable to serve consumers and give them more protection and incomes. It is difficult to imagine that any such member choice. would ever require advice on IHT planning, trusts, corporate financial planning, portfolio management Andrew Bingham (High Peak) (Con): Does my hon. or CGT. Friend agree that as well as removing choice, the proposals The QCF level 4 is a disproportionate qualification might lead to people not bothering to save—at a time for the home service market operating within tax exempt when people need to save—because they cannot get limits. It will not add value to consumers, nor improve advice on how to do so or on where to put their money? the service that they receive. It will make home service sales forces even more expensive to run and will generate Guto Bebb: I accept that point. In particular, I believe further financial exclusion. A more considered qualification that those who are less wealthy in our society will be that focused on the real, everyday financial issues that discriminated against, even though there should be affect those on low incomes would be welcome. Current greater encouragement for them to save than other academic thinking reinforces my view, which I assume is people. That issue relates directly to the damage to shared by other hon. Members, that the only effective choice. method of accessing and engaging those on low incomes Although I share the Treasury’s view that there is a in savings and protection products is a direct sales force. need to ensure that advice is of a high quality and Indeed, the Department for Work and Pensions website accept that there has been mis-selling and bad advice—I states that tenant engagement teams are being piloted do not argue against the need for a degree of regulation—it to increase take-up of home contents insurance, is difficult to accept proposals that even the FSA accepts “particularly as all other traditional methods of promotion (leaflets, will result in a reduction in the services that are available flyers, competitions, prizes etc) have not resulted in large scale to the public. In particular, I remain unconvinced of the increases in the number of policy holders.” merits of the examination process being the be-all and In conclusion, the RDR qualification requirements end-all. Are structured learning and examinations really for advisers selling tax-exempt, small premium assurance a substitute for experience, integrity and honesty? If I products are disproportionate and irrelevant to the were looking for a financial adviser, those qualities, needs of those on low incomes. The RDR will reduce rather than an exam, would be the first on my list. the access of those on low incomes to basic assurance products at a time when significant amounts of energy Claire Perry: Does my hon. Friend agree that one and money are being invested in promoting financial way of taking the matter forward is to allow consumers inclusion in that area. to decide? We all believe in consumer choice. If the proposed laws were passed and financial advisers had to 8.46 pm have letters after their names, we could have a grandfathering clause so that the consumer had a choice. They could go Guto Bebb (Aberconwy) (Con): I congratulate my with experience or with somebody who had sat the hon. Friends the Members for West Worcestershire exams under the new regulations. (Harriett Baldwin) and for Wyre Forest (Mark Garnier) on instigating this debate. I was unable to attend the Westminster Hall debate on 20 October, but the transcript Guto Bebb: There is a lot of merit in that argument, indicates the quality of debate that we have in this and I would be encouraged if the FSA were to consider House on occasion. such an approach. Many issues have been discussed at length, so I will As a Member who represents a rural community, I attempt not to repeat what has been stated by other am well aware that the change will have a much greater hon. Members. However, I will highlight some areas of impact on smaller financial advisers. After all, the cost concern. I concur with hon. Members who believe that of regulation is estimated at about £6,000 per adviser. the FSA is taking a sledgehammer to deal with problems That could be taken as being reasonable in the context that are not great enough to warrant it. The FSA’s of a large, city-based financial advice firm, but for small proposals will damage choice and result in small businesses firms in my constituency such a regulatory burden being forced out of trading. It will affect the choice could be the difference between remaining in business available to people who live in rural communities in and leaving business. particular. As has been stated, the proposals discriminate At a time when the coalition Government are stating against older members of the financial advice community. clearly that they want the private sector to create jobs, There will be an effect on the availability of advice and and that they want to get rid of the red tape and support for those who are less wealthy in our society. bureaucracy that have stifled a generation of jobs in All those problems must be addressed. small businesses, I find it odd that the financial advice 617 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 618 (Regulation) (Regulation) [Guto Bebb] their money work and grow. I am speaking tonight on behalf of people who have a small sum of disposable sector is being earmarked for different treatment. The income and who wish to enhance their small pensions at financial advisers to whom I have been talking support retirement age and seek help and advice from financial the coalition fully in trying to reduce the red tape and advisers. They have asked me to speak on their behalf, bureaucracy that small businesses face, but they would and I happen to know that some of them are watching like to be included in the discussion. the Parliament channel to see that I say what I said I On rural services, we in Aberconwy have suffered in would say. many ways, such as the closure of small post offices. We One constituent sent me some background information, have also seen the legal aid franchise service stopped for which sets out the situation very clearly. The retail the time being, creating a real threat of no legal aid distribution review appears to offer solutions—at least services being available in any of the small towns in my on paper—to matters which the FSA has identified as constituency. I therefore believe that we should be very problematic within the industry. I am not aware of concerned about the further attack on small businesses those problems, which concerns me. The FSA believes in rural communities that we are discussing this evening. that the measures set out in the RDR proposals will In many small market towns, financial advice is part provide for greater consumer confidence and engagement and parcel of what people have come to expect. When within the industry. It is planned that all advisers attain they go into town on market day, they can do their the qualifications and credit framework level 4 qualification banking and go to the post office, the local shop and the by 31 December 2012. solicitor, but they can also go to the financial adviser. It A constituent of mine wrote: is not acceptable that people who live in a rural community “I have attended seminars at which RDR and the future of will have to drive to the nearest large town, or even Independent Financial Advisers are discussed. They all have the perhaps use the banks instead. Banks in rural communities, same line…segment your client base…they give guidelines how to and certainly in my constituency, are now nothing more do this so that we have an income stream from a fee base than counter services. It is a real problem that services structure. If I were to follow this suggestion I would have 3 clients left. When I question this approach, on every occasion the reply in rural areas are under threat. is…I need to change my market.” My hon. Friend the Member for Ipswich (Ben Gummer) Did anyone ever hear such advice in all their life? made the point about rural services very strongly in the Goodness me! Westminster Hall debate, and I agree with him, but I would go further. In Aberconwy, many professional Tom Blenkinsop: Building society closures and the firms work through the medium of Welsh. If rural exodus of the large phone service companies have reduced financial advice services are taken away from parts of almost to nil the supply of premium products for those my constituency, people will lose the ability to go to a on low incomes, particular the 4 million who still feel local financial adviser and deal with their problems in disengaged. What do the hon. Gentleman’s constituents the language of their choice. People in my community think about that? switch between Welsh and English in the same way that people go into a café and choose coffee or tea—it is quite natural for people to use their own language when Jim Shannon: I thank the hon. Gentleman for his dealing with their own affairs. I wonder whether larger comments. I have the same concerns. concerns in more anglicised towns on the coast, or It is estimated that it takes 400 hours to do the exams. further away in Cheshire, will take into account the That is approximately 10 weeks when people do not need to provide a Welsh-speaking service. have the opportunity to earn money or do what they normally do. Advisers in Strangford have painted a On discrimination against older financial advisers, I different picture to that painted by the retail distribution question why no grandfather rule is proposed. Why are review. Most of the customers of advisers in my we not willing to consider experience as being of constituency are working class. I have been informed by importance? I shudder at the thought of leaving people many financial advisers that they have spent time with in my constituency dependent on the banks rather than people without receiving any financial reward—we have having an IFA. If having an independent adviser is heard that from hon. Members on both sides of the good enough for some people in our society, it should House tonight. be good enough for people in my constituency. The proposals should be reconsidered, and I endorse the call One adviser offered advice to a female client who was for the FSA to think again about the damage that it is about to go through a separation. She was stressed out doing to a very important service in my communities. about her finances, but the adviser spent a lot of his time on the phone to her. For all his work, he earned not a penny. The road that the regulator is pushing 8.54 pm advisers down will mean that they will be unable to Jim Shannon (Strangford) (DUP): I congratulate the afford time if they do not get paid. Will we therefore hon. Members for West Worcestershire (Harriett Baldwin) end up with people being unable to afford sound financial and for Wyre Forest (Mark Garnier) on introducing advice, exactly as the hon. Gentleman said? this apt motion. It has certainly galvanised a lot of I represent a rural area, as do many hon. Members, interest in my constituency. Like all hon. Members, I including the hon. Member for Aberconwy (Guto Bebb). have received e-mails, letters and phone calls, and I have We are aware how the proposals will affect and impact held personal interviews, so I have had lots of information. on people in rural areas. Consumers will suffer substantial My constituents have made it clear to me from the and unprecedented detriment owing to the unintended outset that this is not just about advisers who provide consequences of the proposals. Would it not be wiser or help to wealthy people who can stay at home and watch better to protect grandparent rights, as at least two or 619 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 620 (Regulation) (Regulation) three hon. Members have intimated? Doing so would The UK can ill afford to lose 10,000 advisers. Such a give the protection that many need. A substantial portion catastrophe would intensify the existing problems. The of the adviser population will leave the industry. Various UK’s leading consumer champion, Martin Lewis, of surveys have been conducted and although there is no Money Saving Expert, remarked: consensus on the figures, it is obvious that adviser “There’s a worrying possibility that the FSA is about to kill numbers will fall drastically. off”— One of my constituents in Strangford wrote: his words— “I am 54 years of age…the heavy regulation is taking its toll. I “independent financial advice in the UK for all but the wealthy. I am ¾ of the way through the new exam structure. Many advisers do hope I’m wrong. I’m not convinced most people will want to are finding it impossible to pass these exams as many are over 55 pay for advice. The commission route has the advantage that you and are finding the stress unbearable.” don’t pay a fee each and every time you want information; you can go without the worry of laying out cash.” Another hon. Member referred to a 63-year-old adviser for whom contemplating exams will put him away in the That is an expert’s opinion. head. The result will be anxiety, depression and stress. I speak not only for the financial advisers in my area My constituent predicted a drastic fall over the next who have been forced out of their jobs, but for the wee three years in the number of independent financial man and the wee woman who have asked me to come advisers. He continued: here and fight their case for them. I also stand for the “Advisers are finding the regulations unbearable, and many are thousands of people in my constituency who benefit having problems due to” from the current system. People who are forced to pay for all advice offered will be unable to invest much, and what is taking place. He made a statement that I found therefore will not invest or, worse, will invest somewhere moving and honest: they should not, with dire consequences. I am aware “We are all starting to swallow the negativity thrown at us by that it is the FSA that is making these recommendations, the regulator over the past numbers of years, which is trying to and I ask the Minister to do the honourable thing and kill us off”. support the alternative proposals put forward. They Now IFAs are facing another obstacle and barrier. We would benefit the larger advisers, as the FSA is trying to cannot afford for any businesses to be lost, especially do. However, we also have to look after those disadvantaged ones that will take the financial burden off the state by consumers, so I urge the House to support them. enabling people to supplement their pensions and not need state aid and benefit. They are the people in my Several hon. Members rose— constituency and across Northern Ireland on whose behalf I wish to speak. Madam Deputy Speaker (Dawn Primarolo): Order. Robin Stoakley, head of intermediary business at May I remind hon. Members that I want to begin the Schroders, said: winding-up speeches at about 20 minutes to 10? There are 16 Members who still wish to speak in this important “I do see up to 30 per cent of the IFA market leaving”. debate, although there might be more—I have not seen How on earth could we support something that would them all. Hon. Members do not have to use the six take away 30% of the IFA market? Furthermore, Aviva minutes, but I am not going to reduce the time limit, UK Life marketing director, David Barral, said the firm because I appreciate that it is difficult to make the predicts that by 2013, IFA numbers will fall to 10,000, strong arguments hon. Members want to make in less leaving middle market consumers unserviced. time than that.

Andrea Leadsom (South Northamptonshire) (Con): 9.4 pm Does the hon. Gentleman agree that at a time when we desperately need small and medium-sized enterprises to Tessa Munt (Wells) (LD): I have taken feedback from be increasing their activity, not reducing it dramatically, my local independent financial advisers in rural Somerset. this is a disastrous thing to be happening? The general approach to the retail distribution review has fundamental flaws and will inevitably fail in one area—which is surely to encourage people to buy more Jim Shannon: I agree wholeheartedly with the hon. financial products and to take responsibility for their Lady. The one great thing about tonight’s debate is that financial futures. The RDR will fail because the regulator we have, I think, a united front—if that is the way to put is trying to impose on the industry an advice process it. All the parties are in agreement, which is good news. and a particular bids model without recognising or Time does not permit me to go through the long list understanding the realities of what the public want. of people in the industry agreeing with the prediction of Surely it would be better to find a way of developing a sharp decline in the number of advisers owing to these an environment in which product providers and advisers proposals. However, it is clear that there is a definite have the freedom to develop their own business models, problem with these regulations and their impact on providing that they were honest and straightforward IFAs. If the adviser population falls by about a third, as with clients and treated them fairly. That would allow predicted, it will leave millions of consumers without an innovation and would have some chance of success. The adviser. Some will migrate to other advisers—we understand whole situation is similar to what happens when central that—but a great many will be left without a trusted Government try rigidly to control everything, instead of source of advice. The UK currently suffers from the delegating responsibility to local authorities. Central largest saving retirement and protection gaps in its Government do not always understand the issues at the history, and it is essential that these gaps and the grass roots and may get it all wrong. This Government current over-reliance on the state are reduced. I think should move us away from a prescriptive approach to that many in the House are prepared to accept that. one that allows an element of freedom. 621 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 622 (Regulation) (Regulation) Neil Carmichael (Stroud) (Con): Will my hon. Friend regulator must lessen the threat of litigation by giving give way? clients the freedom, if they so wish, to take an element of personal responsibility in their decisions and to buy Tessa Munt: I want to be brief. from an IFA after those discussions. The regulator must We should consider what an IFA’s clients are seeking also stop telling IFAs how to structure their business to buy when they look at financial products, look at models and must allow them be innovative. Without the what they do not like about the present procedures and mountains of regulation, most experienced IFAs could consider whether the RDR will change anything. A significantly improve the service that they offer their constituent of mine has stated that when his clients buy clients while dramatically reducing their charges. Also, their financial service products, they are seeking a similar they could probably employ more people and could experience to that when they buy other goods. First, significantly improve the customer’s experience. they want the buying process to be a simple and pleasant I would like to quote from two small independent experience. If the Government wish the public to buy financial advisers in rural Somerset. One says: more financial products and take responsibility for their “If the RDR goes through in the current format I am likely to future, they should not forget that fundamental point. lose the adviser…I employ. He is highly intelligent (a university That is not easy to achieve in the current environment. graduate) and has over 20 years relevant experience. He is very For a start, most clients do not like to be issued with competent to undertake the work that he does. However, he is in mountains of complex paperwork. They find it quite his…fifties and is busy with two children still at home and another at university. At this stage of his life he simply does not intimidating. wish to use all of his spare time studying for further examinations. Secondly, a lot of people visit an IFA with a specific So this will be another person in your constituency without a purpose in mind—to invest some spare funds, to discuss job—so unnecessary.” their pension, and so on. They wish to restrict the The second person said: conversation to those points that they believe are relevant “I am lucky, I have all the necessary exams. I just hope they do and, having listened to what the IFA has to say about not raise the bar again. I really could not face the pressure of the matter, will wish to make up their own minds about having to pass more exams at my age. If it happened, I would have whether the product under discussion is suitable for to close and more people would lose their jobs.” their needs. However, once in discussions, people often The FSA in this case is judge, jury and executioner. I have to go through the IFA’s “advice process”, and are ask the Ministers to reconsider the rules for 2013, and no longer responsible for their own decisions. The IFA to reopen talks with the FSA, to make it possible for has to be sure that the product is right for them, so these independent financial advisers to offer the high-quality people find themselves undergoing a time-consuming service that they want to give to their customers. and irritating process, having to answer personal questions that they often consider an invasion of their privacy. 9.10 pm Thirdly, clients quite rightly seek value for money. Nia Griffith (Llanelli) (Lab): I recently met a group of Unfortunately, the whole regulatory procedure is so independent financial advisers who serve Llanelli and cumbersome that it is no longer cost-effective for those the surrounding area. They fully understand the need with limited funds to seek an IFA’s advice. The cost of to have a properly regulated industry, and the need to many financial products has risen dramatically. For improve consumer confidence. They want high standards, example, 30 years ago the annual management charge and I can assure hon. Members that they simply would on a unit trust was usually 0.25% or sometimes 0.375% not get away with it if they did not have high standards, per annum, but now it is usually 1.5% per annum. Much particularly in a close-knit community, where everyone of the increase has arisen purely as a result of regulatory knows whether they have done well or badly in their last costs. A significant part of the cost increase is driven by transaction. Their next custom really does depend on regulation, so everyone suffers. that. They also made the point that they already have Will the RDR change any of the above? Not in my certification. In addition, many of them have a great opinion: there is little evidence that any of those many years’ experience. They also accept that new fundamental issues will change as a result of the RDR. entrants to the profession need proper qualifications We are all in favour of raising standards, but further and training. examination passes will not address any of those issues. A number of difficulties have already arisen with the new scheme. The first relates to the availability of slots to Annette Brooke (Mid Dorset and North Poole) (LD): take the exams at the examination centres. One independent Does my hon. Friend agree that it is quite surprising financial adviser in my constituency is waiting for a slot that even where IFAs are well on their way to getting the to take an exam in January in Bristol. Now, Madam new qualifications, they are still against the system and Deputy Speaker, there is nothing wrong with Bristol, see the exams as pointless? The new qualifications will except for the fact that it is some considerable distance not weed anybody out, which might have been their from my constituency. There is also the inconvenience of objective, because everybody sees them as inappropriate having to travel there in the winter, to fill a particular for the job that these people do. slot for a particular examination. If that slot were not available, they would have to go somewhere else. Tessa Munt: Absolutely, and I thank my hon. Friend for her intervention. Andrew Bingham: Does the hon. Lady agree that, if The cost of paying for the IFA’s time will not change. grandfather rights were to be introduced, as many of us We are all in favour of raising standards, but further wish, it would not only be fair to existing IFAs but examination passes will not address any of the issues release more slots so that new ones could come into the that I have set out, and clients will not mind whether market, thereby increasing competition and choice for they pay commission or fees. To improve matters, the consumers? 623 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 624 (Regulation) (Regulation) Nia Griffith: Indeed, there are certainly issues about Mr Robert Buckland (South Swindon) (Con): I probably the way in which the whole system has been set up and know some of the constituents to whom the hon. Lady run, and about whether it can be worked properly. As has referred. Some of them have been in touch with me, the hon. Gentleman points out, to have so many people as well as with my local independent financial advisers. trying to take the exams in just two years is not particularly In other professions, when it comes to continuing practical. The time scales are extremely tight, and the professional development and examinations, those who independent financial advisers have to book into the specialise concentrate on their specialities, and therefore slots. Another problem, of course, is that they do not undergo tests that relate to their experience. The problem always pass the exams. with the RDR regime is that it is far too general. That That brings me to the nature of the exams. As I have puts people in a really difficult position, which is unfair. said, independent financial advisers already have certification, and I have seen some of the questions that Nia Griffith: My friend and compatriot is right. That they have to answer in order to gain that certification. is why those responsible refer such people to others. Many of them seemed to require a very different kind of They know that they do not know everything; they knowledge from the knowledge that the IFAs in my know what they do know, and they know what they do area usually need. Furthermore, IFAs are fully aware of not know. This is not about throwing the baby out with their own shortcomings. They know that they have the bathwater. It is not about abandoning the system limitations, and that they will sometimes need to pass a altogether. It is about getting it right: it is about having client on to someone else for specialist advice. another look, and establishing whether there are ways of implementing the system that will make sense. We One very experienced financial adviser in my area is a need an arrangement that will not create a time scale well respected member of the community who is very that is difficult to adhere to, will not depend on slots much involved in local town centre activities and in that are impossible to secure, and will not involve keeping the community alive. He recently failed one of questions the answers to which people will not need to these exams, however, which has knocked back his know in their professional lives. We need modifications morale and that of a number of other financial advisers to make the system much more manageable. who know him. He failed the exam not because he was not perfectly capable of doing his job or because he lacked intelligence or experience. That seems only 9.16 pm to confirm that the nature of the exams needs to be Geoffrey Clifton-Brown (The Cotswolds) (Con): I will reconsidered. We also need to take into account the speak very briefly. I will chuck away my notes, and see if enormous amount of time that has to be put into them I can do better than six minutes. I am delighted to be —400 hours has been mentioned, and that is probably able to speak in the debate. I was urged to do so by two the minimum—as well as the costs involved. constituents in particular—Roger Clark, who is listening I know from experience of developing new examination to the debate not far away, and Mr William Dixon—but schemes what happens in such circumstances. Everyone others have written to me as well. wants to put in their 5p worth and everyone wants extra The number of IFAs has fallen from 32,000 to 29,000 questions on their area, and the whole thing develops in the last two years. When Hector Sants, the excellent until it becomes so big and unmanageable that no one and much revered and admired chairman of the FSA, could possibly want it as a syllabus. Another problem is appeared before the Treasury Committee last week, he that people are often terribly worried about being thought estimated that between 10% and 20% of IFAs would go of as soft. They are worried that someone is going to out of business as a result of the RDR provisions. I ask tell them that standards are falling, so they decide to Mr Sants this: who are we—who is he—to put 5,800 put in harder and harder questions to try to counteract companies out of business with a stroke of the pen, and that. what is the problem that needs fixing? Many Members have quoted the figures this evening. Harriett Baldwin: Have any of the hon. Lady’s IFA complaints to the financial ombudsman’s office: constituents been able to observe how the qualifications 2%, of which 39% are upheld. Complaints about the might help to identify those independent financial advisers banks: 61%, of which 50% are upheld. No doubt my who might have a tendency to mis-sell, compared with hon. Friend the Minister will say that that is because the those who might not? banks offer a wider range of services. Of course they do, but I do not think that that explains such a large disparity. Nia Griffith: My constituents have made clear to me that many of the questions do not bear much relation to I want to make three points. The first relates to the what they do in their everyday work, and are certainly qualifications and credit framework level 4 qualifications. not a test of their integrity. That does not mean that I am a qualified chartered surveyor, but I cannot think they do not want regulation or do not like the idea of of a single professional body whose members would having proper qualifications and a respected profession, have to obtain a retraining qualification halfway through and it does not mean that we should abandon the RDR their careers. My hon. Friend and neighbour the Member altogether. What those people are saying is that we for West Worcestershire (Harriett Baldwin) mentioned should look at the detail again and create a workable nurses, and other hon. Friends have mentioned publicans. system that can be respected and is a useful tool, rather None of those have to retrain. than one rejected by the profession that will not help Let me say one or two things about these exams. I anyone in the long run because it will simply lead to an agree with others that there should be grandfather exodus that will have the impact on local communities rights, and I think that the implementation should be that many Members have described. put off for five years. As we all know from the home 625 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 626 (Regulation) (Regulation) [Geoffrey Clifton-Brown] 9.22 pm George Hollingbery (Meon Valley) (Con): I, too, will information pack debacle, it takes time to implement abandon my notes this evening, and restrict my remarks exam regimes of this kind. I think that 31 December to one or two brief points. 2012 is too soon. I also think that it would be perfectly reasonable to ask new entrants to the IFA profession to Most of the topics have been more than adequately undergo the exams, but to give grandfather rights to covered. There have been a great many well-made speeches existing practitioners, many of whom have had many in which many powerful points were made. There has years’ experience. been a lot of discussion about grandfathering, and I I understand that two kinds of qualification will be think it is worth pointing out that there are other ways granted under the new regime: a restricted qualification in which IFAs could be grandfathered into the industry and an independent qualification. Someone will go to other than just a blanket allowance so they can all carry an IFA who will say, “I can advise on mortgages but I on practising. For example, would it not be possible for cannot advise on pensions, because I have only a restricted IFAs with more than X years of experience to continue qualification.”I think that that is thoroughly unsatisfactory. advising clients who had been on their books for more than Y years, with their clients’ written consent? I can The second issue I want to talk about briefly is see no particularly good reason why people should not commission-based product withdrawal and the accusations be able to elect to do that. that it can lead to practitioner bias or product bias. The Financial Services Authority asked Charles River Associates Also, if an IFA has X years of experience with no to undertake a survey into the matter, and he concluded established complaint against their name, might they be that able to pay to have an independent examination of their “there was no evidence that moving to” records to establish whether they had been responsible for some of this alleged mis-selling which the FSA is so a fee-based model clear has been going on behind the scenes, but which “to the exclusion of a commission would lead to benefits since has not been recognised by many clients? It seems to me consumers choosing to pay on a fee basis do not receive better advice than those opting for a commission basis.” that there are ways forward that the FSA could follow to make sure we get the benefit of the experience that I also agree with those who said it will favour the exists in the IFA community, and which otherwise looks wealthy in society and put the poor at a disadvantage, as though it is going to be lost. because the poor cannot afford to pay this fee up front, while the idea of phasing it in over a number of weeks I am very worried that in the short term newly or months would be unfair to the IFAs. That proposal is qualified advisers may lose out on the chance to be therefore not very sensible either. mentored by experienced colleagues, particularly if large numbers leave the industry. We may well also find that a The third issue I want to raise is the cost of compliance. number of clients suddenly lose the person from whom Two years ago the cost was estimated to be £680 million; they have received advice very happily for a number of last year it was estimated to be £1.4 billion; today it is years, and they might not be at all confident or happy to estimated to be a staggering £1.7 billion. That is £6,000 change that adviser. At a time when clearly so many for every practitioner. For a sole trader or a small people have neglected to provide for their later years, it business, that is a huge amount of money, while for seems to me perverse that we should be reducing the large IFAs with a number of partners it does not matter number of suppliers in the market. quite so much. I therefore urge my hon. Friend the Financial Secretary to consider very carefully what has Sarah Newton (Truro and Falmouth) (Con): Does my been said today. I cannot remember a debate during my hon. Friend agree that at a time when the Government entire 18 years in Parliament where there has been such are making such welcome reforms to our pensions consensus of interest and so many Members have attended system, people will need independent advice more than when they do not have to be in the Chamber as there is ever, and if we press on regardless with these changes not a three-line Whip. there will be increased costs and less access to such I urge my hon. Friend to listen to what has been said independent advice? tonight, and I urge the FSA to think again, and to ask itself what the problem is that needs fixing. These are all George Hollingbery: My hon. Friend’s point is, of small businessmen and small traders; they are precisely course, very well made. With auto-enrolment schemes the people we were saying throughout the election campaign more advice, rather than less, is going to be needed, and that we wanted to help, yet these proposals of ours are there is no doubt in my mind that we need more advice likely to put large numbers of them out of business. right now. In short, the FSA still has not answered a Finally, I want to refer to the point made by my hon. large number of questions adequately, and I will certainly Friend the Member for Aberconwy (Guto Bebb). I not be convinced that the retail distribution review is represent a rural area, and I know that banks have adequate or worth while until we receive some of those closed many of their branches in the high streets of my answers. small market towns. If the IFAs are driven out as well, a lot of my poorer constituents will be left without any 9.25 pm form of independent financial advice at all, at a time Pauline Latham (Mid Derbyshire) (Con): I congratulate when the banks, if they are there at all, are offering a my hon. Friends the Members for Wyre Forest (Mark reduced service. Garnier) and for West Worcestershire (Harriett Baldwin) My hon. Friend the Financial Secretary is a reasonable on securing this debate and on the passion with which man, and I ask him, please, to listen carefully to what they made their points. Indeed, I congratulate all hon. has been said tonight. We need to have a rethink on this Members in the Chamber on their passion and strength matter. of feeling about this review. 627 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 628 (Regulation) (Regulation) I have been contacted by a large number of constituents be looking at providing choice for people. Leading who work in this sector and are worried that the retail critics suggest that the more lucrative financial advice distribution review will have many unforeseen negative roles will be moved to the banking sector, which will impacts on their employment. I hope that the review is mean that customers will be offered only options that not a knee-jerk reaction to the recent financial crisis. benefit the bank. Interestingly, the mystery shopping exercise carried Neil Carmichael: A recurring theme of this debate out by Which? across the industry concluded that its has been the heavy-handed nature of the Financial “surveys tend to show that IFAs perform better than banks.” Services Authority: people have said that a sledgehammer Based on all the evidence that we have heard tonight, I is being used and so on. Is it not time for us to recognise believe that, irrespective of whether it is the desired that it ought to be held properly accountable, just as outcome or it happens by mistake, the increase in the other quangos are and just as we intend them to be? role of the banks in the financial advice sector is wrong This persistent theme is at the heart of this discussion and worrying, and that we should be looking at providing and we need to address it. choice. Pauline Latham: I am sure that the Minister will take Richard Howells, the director of Zurich Life, said in my hon. Friend’s views forward, and I thank him for the June 2009: intervention. “The big question…is still around what benefit it will have for the ultimate consumer. I am still not convinced that all of these I believe it is right that the customer is always put first changes, when you sit down with a consumer and explain them, when it comes to their money. We cannot go back to the actually give rise to a consumer benefit that I can…hang my hat financial irresponsibility that led us into the crisis in on.” 2007, which we are, thankfully, just getting out of. I believe that the aim of the RDR is vital in ensuring Therefore, splitting the financial advice sector into two that the consumer is defended and our financial sector is probably a good thing, but we must make sure that is strengthened in the light of the recent crisis, but I do the advice given by advisers in the primary sector will not believe that the changes need to be made as the FSA not stop people moving into a financial position where says at the moment. I simply ask the Minister to ask the they will require the full range of services offered by the FSA to reconsider the outcomes of the review and to higher financial advice sector in the future. ensure that its original aims, set out when it began back My constituents have also suggested that the proposed in 2006, have outcomes that will be advantageous for regulation will force between 30 and 40% of financial the whole sector and, more particularly, for the customer, advisers to leave the sector, and many hon. Members whom we should be protecting. I am sure that the have mentioned figures of 20, 30 or 40%. It is vital that Minister will ensure that the passionate arguments made that does not happen. As my hon. Friend the Member in the Chamber tonight are taken forward and that they for The Cotswolds (Geoffrey Clifton-Brown) said, we will colour his views. are in the business of keeping small businesses and promoting them. We need to do that in this instance, 9.31 pm because we do not want all these people to be out of Mr Matthew Offord (Hendon) (Con): The FSA has work at a time when life is difficult. been held by some observers to be weak and inactive in Training and recognised qualifications are important, allowing irresponsible banking to precipitate the credit as they demonstrate to the customer that the financial crunch in 2007, which, as many Members will know, adviser they are employing to deal with their future can involved the shrinking of the UK housing market, be trusted. If we all agree that there should be a better increased unemployment, the public acquisition of qualification, surely it be for those new to the sector and Northern Rock, and the takeover of HBOS by Lloyds not for those who have had the years and years of TSB. I remain fundamentally concerned that we have experience that we have heard about in various examples. allowed the same organisation to undertake a review of If this proposed qualification is to be in place by 2013, independent financial advisers in this country. surely we will be rushing it and too many people will be As you are no doubt aware, Mr Speaker, the FSA has trying to do it, so there will not be enough providers to devoted massive resources to the RDR over the last allow this to happen. three years, during which time it had taken its eye off What will happen to all these people who leave the the ball so far as the banks were concerned. Ironically, sector in the rural areas and small towns? Very often the FSA’s light-touch regulation of the banks, which there are not many of these people in such places. It are, as many Members have said, responsible for the might be fine if this occurs in cities, where more choice vast bulk of consumer complaints, went on simultaneously is available, but there is not a lot of choice in rural areas. with the massive intensification in regulation of financial There is a worry that a lot of the people who will need advisers, who cause hardly any complaints to the Financial to take this qualification if it is imposed will not be able Ombudsman Service. to do so in the short time available to them before 2013. That all came at a time when the mortgage market Nick Cann, chief executive of the Institute of Financial virtually ceased to exist for financial adviser firms through Planning, has said that the FSA must develop a “catastrophe a combination of tighter lending criteria and positively strategy” in case it reaches June 2012 and half of the anti-competitive practices such as dual pricing by lenders. advisers are not meeting the RDR requirements. As a result, many financial advisers and mortgage advisers The other concern that the financial advisers in my have gone out of business and many more will face the constituency have mentioned is that the proposed changes same fate in the next few years. to the sale of financial advice will lead to customers The sector employs thousands of people, such as my being worse off, as they will not be given the range of constituent David Barnett who is listening not so far options currently on offer. Surely, if anything, we should away, and advises millions of others, such as me. Many 629 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 630 (Regulation) (Regulation) [Mr Matthew Offord] valuable and essential, so you should see an IFA and get some.” Instead it gives out the message, “Look how people will struggle in the years of austerity to come, much you’ll spend over the life of a policy,” without and those people—our electors—need us to help them addressing the benefits of that policy. to balance their budgets and avert financial disaster Independent financial advisers would like to be left to when the worst happens. They are looking to us to do get on with their jobs, employ people, pay their taxes that tonight. We must also look towards the financial and look after their clients. They create wealth, look advisers, many of whom are part of the creation of after our voters and, unlike the massive, over-complicated, small and medium-sized economies in rural areas and expensive and unnecessary changes proposed by the in some suburban areas, such as my constituency. FSA in the RDR, their requests are very small, simple, The RDR is a long and complex affair, and I shall not cost-free and necessary. They are just asking the repeat the details now. My understanding from my Government to direct the FSA to revise the outcome of constituents is that it boils down to two main themes— the RDR so that there is no change whatever to the remuneration and qualifications. As it stands, it looks current rules on remuneration and disclosure and to as though the entire remuneration system will be changed move the deadline for diploma qualification to 1 January to one that will cause confusion, confrontation and 2016. I ask the Minister to ensure the same. a loss of service to the mass market. Qualification requirements are being ramped up and thousands of advisers are under pressure to gain their diplomas before 9.37 pm 31 December next year. At the very time when business Anne Marie Morris (Newton Abbot) (Con): I will conditions have never been more difficult, advisers are make my comments brief because I am conscious that being forced to spend hundreds of hours earning diploma we are short of time. In my constituency, I have more points when they could be earning a living for their than 50 very small independent financial advisers, a families. number of whom have come to speak to me about this The latest directive from the FSA is a requirement issue because they are very concerned about the future that whenever a life assurance policy is sold financial of advice in our very needy constituency, which has four advisers must illustrate to the client the total premium towns and 30 tiny villages. Those people serve the cost over the entire policy term. The total cost of a life financial needs of the community. assurance policy is irrelevant—the only costs relevant in We need to consider the increasing overall need. the purchase of life cover are that the premiums for Students are increasingly going to need help to sort out the contract recommended are demonstrably fair and how to finance their education. People in or out of competitive for the type and extent of cover being work are increasingly going to have deal with redundancy bought when it is bought in a free market and that they and will want to know what to do when they suddenly consider the potential cost to the client and the client’s get that lump of money to keep them in health. People family of not having the cover if he or she suffers will want to know what to do with a small inheritance disabling ill health or death. Requiring an illustration of should they be so lucky to get one. For the elderly, the the total cost over a period of 20 to 25 years simply change in pension provision is extraordinary and we creates an off-putting and distorted impression to the will have to help people to deal with pension auto- consumer. Financial advisers are being asked to spell enrolment—should they fall out of it or stay with it? out the total theoretical cost of life cover and thereby to There is much to consider and much help is needed. accentuate its negative aspects. A simile for this would be vehicle manufacturers giving prospective purchasers Of course there are IFAs who have a bad reputation. the likely finance, running and maintenance costs of the Some sold products when it was inappropriate to do so vehicle they are selling over its projected life. The FSA just to maximise commission, some sold badly performing has gone too far. In fact, it went too far a long time ago, products and others mis-sold precipice bonds, which although it should certainly ensure that advisers are was unforgivable. With a cost of £45 million a year to competent and honest. the consumer, we need to address this issue, but what can we do? The retail distribution review is absolutely welcome, but we must strike a balance. We must get Richard Graham (Gloucester) (Con): Does my hon. something affordable and the FSA must enable IFAs to Friend agree with the former chief ombudsman that the remain in business while protecting consumers. How idea that complaints will go down after the RDR is can we do that? The Government have said that 50% of wishful thinking? Does he agree with the head of HBOS IFAs in the profession would already comply, so what that the main beneficiaries of RDR will be the bank of the other 50%? Clearly, there is an issue and we need assurers? We are looking at the law of unintended to make sure that more of those people stay in rather consequences. than fewer; otherwise, the predicted savings to consumers of £1.8 billion will not be made. That is not what this Mr Offord: I certainly do agree with my hon. Friend Government are all about, so we need to consider a and many others who have made the same point. The different way of proceeding. main beneficiaries will be the big banks, including many I spent 30 years in a profession that has parallels with of those that got us into the difficult situation that the this one and I should like to draw the House’s attention coalition Government are having to address. to some parallels that might help the Minister. In my I should like the FSA to keep its nose out of normal time as a lawyer, I looked at the changes that the Law commercial transactions and to leave business to Society wanted to bring about when it considered businessmen such as the many constituents who have introducing continuous professional development for been mentioned tonight. If the FSA should be giving older members of the profession. Instead of putting the public any message, it should be, “Protection is 35 hours in place immediately, the number of hours was 631 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 632 (Regulation) (Regulation) slowly ramped up over a five-year period. The scheme direction. However, there are some serious questions. did not just enable people to have out of office time; On balance, it is right that we move away from fee study time in the office and in the evening counted as structures that are, to a certain extent, hidden in the well, which was helpful. I suggest the Minister looks at margins, where sometimes commission may not be that system. We need to look at a modular approach for transparent for customers and products are recommended exams and at distance learning. As one of my hon. even though it does not necessarily say on the tin how Friends pointed out earlier, we need to look at qualifications much of the fee will be returned to the adviser, but— that are relevant to the business the individual is practising. I wholeheartedly support the comments that have Mr Graham Stuart: Will the hon. Gentleman give way? been made about experience and the idea of grandfathering. I was formerly a professional mentor, and with the Chris Leslie: I just want to make a point about the European Mentoring and Coaching Council I looked at ending of the commission system and the placing of how we might develop qualifications and accredit people the fee, perhaps straightaway, in an up-front form for already in a profession. We looked at a framework the consumer. There may be risks that are similar to model that enabled people to qualify when rules changed. those related to the argument about up-front tuition I certainly commend that to the Minister. fees, because people may be deterred from taking the The point about the big bang in 2013 when everything advice in the first place. They may feel that the system is will change is absolutely right. That is not an appropriate too difficult. As my hon. Friend the Member for Barrow way forward. I hope the Minister recognises that the and Furness (John Woodcock) said, we have to ensure businesses we are talking about are microbusinesses. that any fees are disbursed throughout the period of the Costs are crucial. Fees for IFAs have gone up by 4.8% product. this year, and I hope he is not thinking about the national financial advice service, at a cost of £50 million Mr Stuart: There will always be some form of bias in to the industry, replacing in any way the financial the system, at least conceptually, regardless of how we advisers who will undoubtedly fall out of the system. reward IFAs. Whether or not there is a fee-based system, they will still be more likely to receive a fee if they 9.41 pm propose the sale of a product. Does the hon. Gentleman believe that getting rid of commission is the right way to Chris Leslie (Nottingham East) (Lab/Co-op): I go? Why not regulate from the product end? Why not congratulate the hon. Member for Wyre Forest (Mark get rid of 10% commission, if that is felt to be a gross Garnier) on initiating this well-subscribed and, so far, abuse? Why not limit the size but allow commission, very moderate and well-tempered debate on behalf of which the public understand and quite like if it does not the 33,000 independent financial advisers in the industry. force them to pay up front, which it seems from surveys Clearly, the matter is of concern. I suspect the Minister they do not wish to do? is thanking his lucky stars that we do not have a votable motion at the end of tonight’s portion of the debate, as we did in the earlier section on banking reform. Chris Leslie: As I say, this is a good time to debate those matters. There are options that must be explored. The Financial Services Authority started the retail We have not bottomed out the debate. Perhaps the distribution review many years ago. A consultation Financial Services Authority can consider not necessarily paper came out in 2009. Earlier this year, we had the the hon. Gentleman’s suggestion in particular, but why proposals, although they will not come into force until commission changes are not being made across the 2012, so this is a useful period when the House should wider financial services sector. There have been historic debate and consider them. It is a matter of regret that problems with mis-selling of products, not solely from too few of these crucial regulatory issues are subject to an IFA perspective, and I can see why many people feel parliamentary scrutiny, as Government Members have that these changes are necessary. observed. Some extremely legitimate points have been made I would not counsel hon. Members to take issue with about the need for sensible transition—if we are to have every section of the RDR—many of those who spoke change—to new arrangements, which, in the words of in the debate did not. It is right, for example, that there the hon. Member for South Derbyshire (Heather Wheeler), should be proper clarity between independent and restricted do not throw the baby out with the bathwater. That is market advisers, and that rather than waiting for the one of the phrases in the debate that particularly comes customer to inquire, there should be full disclosure on to mind, but a number of points were very well made, that up front. especially when we think about the comments of the chief executive of the FSA. Is it really acceptable that Alun Cairns rose— between 10% and 20% of the profession could leave as a result of the retraining requirements, shrinking the Chris Leslie: I have only a couple more minutes. availability of independent advice? The hon. Member The crux of the matter must be the issue of for West Worcestershire (Harriett Baldwin) rightly qualifications—the A-level equivalent threshold for financial questioned what would happen if a Minister were to advice. Although I understand the move to a QCF level stand at the Dispatch Box and announce the demise of 4 standard, which seems entirely fair, it is sensible that a similar proportion of an industry. there should be a mechanism to allow some sort of It is important that we take a pro-consumer approach conversion of existing qualifications or existing experience to regulatory change—as the Opposition certainly do. to that new level 4 qualification. I cannot believe it is Undoubtedly, it is necessary from time to time to look beyond the wit of the FSA, Ministers and others to find at the framework within which consumers get that some way of doing that. Hon. Members such as the advice, and I do not begrudge the FSA’s moving in that hon. Member for Meon Valley (George Hollingbery) 633 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 634 (Regulation) (Regulation) [Chris Leslie] I counsel caution, however. It is all very well to think that we should engage in the regulatory regime when we spoke about how we should look at the grandfathering think we are going to help one group or another, but issue and what options there might be. It is important to there are times when regulators make difficult decisions move that forward. on behalf of Parliament and our constituents, so we need to think very carefully about where the balance is Alun Cairns rose— struck. It might be very attractive in the context of this debate for Parliament to take more responsibility, but Chris Leslie: I should like to conclude because I want hon. Members might feel it less appropriate at other times. the Minister to be able to explain in a way that he did not necessarily do in the first flush of debate on the Mr Stuart: Will my hon. Friend give way on that topic in Westminster Hall, and possibly reflect the views point? of the vast number of Conservative Members. I am still perplexed that the Financial Secretary to the Treasury Mr Hoban: No. chose that McDonalds diploma analogy. Perhaps he will reflect on that and recognise that some IFAs were Mr Stuart: On that point? slightly astounded by that reflection on their professional integrity. He might want to choose his words more Mr Hoban: No, I will not give way to my hon. Friend, carefully. because I have—[Interruption.] It is important that parliamentary accountability should be voiced. The more I reflect on these financial services Mr Speaker: Order. policy issues, the more it strikes me that there is a democratic deficit. No, we do not want to be embroiled Mr Hoban: I have about nine minutes to respond to in the day-to-day operational issues of regulation, but quite a long debate in which a number of points have policy is policy and we are accountable for that. Perhaps, been made, and I want to take the opportunity to as my hon. Friend the Member for Leeds East (Mr Mudie) address some of those issues. suggested, we can return to the issue when we come to Let me put on the record the importance that I place the FSA reform Bill and discuss amendments to that. on independent financial advisers. They play a key role Hon. Members will log and remember today’s debate in helping people make financial product purchases and and we can come to that later on in the day. financial choices. High-quality, independent financial It is a shame that there is no motion tonight on the advice is vital in ensuring that people are encouraged to issue. It would have been useful for Members to express save and plan for the future and make the most out of the formal position of the House of Commons on the their money. I have used independent financial advisers matter. This is a time for the Minister to listen to the and been happy with the service I have received, because debate and perhaps reflect carefully on the measured they have provided me with good-quality advice. and worthwhile comments that have been made by hon. I cannot overstate the detriment to consumers from Members across the Chamber. poor and biased advice. Indeed, the FSA estimates the detriment to consumers from inappropriate advice to be 9.48 pm £200 million per annum, and it thinks that the figure The Financial Secretary to the Treasury (Mr Mark could be significantly higher. Consumer detriment has Hoban): I congratulate my hon. Friend the Member for led organisations such as Which? and the consumer Wyre Forest (Mark Garnier) on the way in which he panel that advises the FSA to support the measures in opened the debate this evening. He gave a balanced the retail distribution review. We need to get that balance perspective on the changes that we are trying to make to right and to address some of the issues that undermine improve standards for consumers, how that sits with the consumer trust in the IFA sector, and the FSA has IFA sector and some of the challenges that a change in sought to do so through the RDR. standards will create. I have become very conscious—in particular, over the It is worth reflecting for a moment on the responsibilities past six or seven months as a Minister—of the financial of Parliament and of the FSA. Parliament set out the services sector’s increasing complexity, and consumers framework by which the FSA operates. The Financial must be confident that IFAs are fully up to date and Services and Markets Act 2000 sets out its objective, that their advice is underpinned by good technical powers and how it goes about exercising its responsibilities. knowledge. There can be few hon. Members who do not For example, there is a requirement to consult. As we support that stance or recognise the benefits that increased know, there has been a long process of consultation on professionalism can bring. Indeed, the FSA finds a the RDR since the previous chairman of the FSA clear link between increased qualifications for financial raised the matter in 2006. There have been a number of advisers and improved consumer outcomes. Under its iterations and debates about consultation documents reforms, consumers will be confident that their adviser and discussion papers. Consumer groups, product providers, has a minimum level of understanding and expertise IFAs and their trade bodies have participated in a very that is maintained each year through continuing professional lively debate, but the FSA is rightly responsible for development. implementing day-to-day regulations, and I know that We should also recognise that a number of IFAs it takes very seriously parliamentary scrutiny of its role. already comply with those standards. Just under half of I spoke to the chief executive this morning about IFAs already hold the required qualification and, indeed, the Treasury Committee’s scrutiny last week and the many go beyond QCF level 4. Some 89% of advisers debate this evening, so the authority is well aware of already meet the required hours each year for CPD, and parliamentarians’ concerns. It is right that the FSA gets we need to recognise the progress that has been made on with its job but listens to the issues being raised. since examinations were introduced in 2008. 635 Independent Financial Advisers 29 NOVEMBER 2010 Independent Financial Advisers 636 (Regulation) (Regulation) I recognise the strength of the debate about believe that transparency on IFAs’remuneration will also grandfathering, and it is an important debate to have, promote competition and provide a better understanding but we need to think about how much experience is of the value of advice. It will increase consumers’ sufficient for people to be grandfathers, and about how confidence in that area. we can ensure that that experience covers the range of We want to broaden the range of advice available. A products necessary to provide whole-of-market, independent number of hon. Members have raised the annual financial advice. We ask people to advise on a range of products, health check that CFEB is going to organise. Let me be such as pensions, insurance bonds and ISAs, and they clear. The cost of that will be borne by a social responsibility need such technical knowledge to do so. Consumers are levy that will be paid by institutions from Goldman entitled to know that their adviser has a high standard Sachs through to the high street insurance broker. The of technical knowledge, and a minimum qualification cost will not be borne by independent financial advisers standard should deliver that. alone. The biggest firms, such as Goldman Sachs or The increase in standards will not discriminate against Barclays, will make the biggest contributions, and they those who have kept up to date with market developments, will make a far bigger contribution than IFAs. Furthermore, and they should not have to commit a significant amount consumer credit organisations have also been brought of time to study. As I have said, 90% of advisers already into the scope of this; they will also have to pay their undertake the required number of hours for continuing share towards the annual financial health check. It is professional development, and I think that over the important that the burden should be shared. next two years the measure can be used to fill any gaps between existing and revised standards. As a consequence Mr Stuart: Will the Minister give way on that point? of lobbying by the IFA community, the FSA has relaxed the regulations, so there will be non-exam-based alternative Mr Hoban: I wish to conclude my remarks so that my assessments, rather than formal written exams. That is hon. Friend the Member for Wyre Forest, who opened an important move forward that the FSA has already the debate, can conclude. made, but high standards of technical knowledge will We want a more responsible savings culture in Britain, be crucial to help IFAs navigate their clients through in which people can plan confidently for their futures the increasingly complex choices that they have to make. and are better able to realise their plans. Financial I want to touch on the issue of adviser charging. I am advice has a key part to play in that, and I want to see strongly committed to increased transparency in financial improved levels of expertise and knowledge and much services; it is important that consumers—whatever they greater clarity over transparency. It is important that are buying, be it advice or a product—understand the the FSA should work closely with IFAs to get to that charges and the returns that they are likely to get. That point. This evening’s debate has helped the FSA understand underpins a whole range of work that we are doing at the concerns of Members of Parliament. I am grateful the moment in the Treasury. to my hon. Friends for securing this debate. Currently, financial advisers can earn different amounts as commission payments, depending on which product 9.58 pm they recommend and from which provider. How much they earn is not always transparent; indeed, Which? Mark Garnier: I am conscious that I have just over found that 82% of advisers failed either to explain the one minute to sum up this incredibly useful debate. “key facts of cost” document or have a meaningful There has been an extraordinary amount of unanimity discussion with their clients about how their advice on both sides of the Chamber; the debate has been would be paid for. It is important that remuneration completely unpolitical. We have talked about financial arrangements for advisers work in the best interests of inclusion for those who need help and about protecting consumers and promote independence of advice. smaller businesses. We have questioned why the RDR was necessary and talked about grandfathering. IFAs A number of IFAs have already moved away from are singular in the sense that they are not allowed to be commission to a fee-based approach. I know that AIFA, grandfathered; long-stopping is something else that they the trade association for IFAs, is helping IFAs change are singularly affected by. We have talked about pushing their business model. I do not doubt the integrity of the savers into the hands of the banks, even though the vast majority of advisers, but no one can doubt the banks have a worse track record than the IFAs. financial detriment caused to consumers as a consequence of mis-selling scandals of the past. Following the FSA’s Importantly, we have also talked about the fact that pensions review in 2002, 1.7 million consumers received we need more time to address this issue. I completely compensation totalling £11.8 billion due to pension appreciate that we have already had six years, but we are mis-selling alone. entering a period when European legislation will be affecting these matters as well. We are also seeing the Advisers should welcome changes in remuneration as FSA moving into areas covered by the Consumer Protection a clear way of building consumer trust in the sector. and Markets Authority and the Prudential Regulation Consumers already pay for advice, as commission is Authority. There are ongoing changes that give us an deducted from their premiums or initial investments. opportunity to extend the period. Advice is not free; that money comes out of the contribution that consumers make to their pensions, their investment I hope that three things have come out of the debate. bonds or their savings for the future. However, it is First, Parliament has not had a chance to do this before important that both the cost and the value of advice is because it is the first time that we have had such a clear to consumers. These reforms will provide clarity Back-Bench debate, so will the FSA please listen following on price and service and that will promote competition. this new development? We have the feeling— Just as we want transparency on interest rates paid on It being Ten o’clock, the motion lapsed (Standing ISAs to promote competition among ISA providers, I Order No.24A). 637 29 NOVEMBER 2010 638

Business without Debate Dental Practitioners Motion made, and Question proposed, That this House ESTIMATES do now adjourn.—(Bill Wiggin.) Motion made, and Question put forthwith (Standing 10 pm Order No. 145), Sir Paul Beresford (Mole Valley) (Con): I am particularly That this House agrees with the Report [24 November] of the glad, Mr Speaker, that you are here this evening. I am Liaison Committee.—(Bill Wiggin.) also glad that my hon. Friend the Minister is on the Question agreed to. Front Bench. I hope that he remains my hon. Friend by the end of the evening, but I have had some moments of COMMITTEES doubt. As my hon. Friend is aware, I have a declarable Mr Speaker: With the leave of the House, we will take interest in this subject. I am a very part-time practising motions 3 to 7 together. dentist. I am a member of the British Dental Association, Ordered, the British Dental Bleaching Society and the British Academy of Cosmetic Dentistry, and I have a link with Lockton, a dental indemnity insurer. COMMUNITIES AND LOCAL GOVERNMENT That George Freeman be discharged from the Communities Many of us in the real world of business had great and Local Government Committee and Mark Pawsey be added. hopes of the new Government, especially in the area of deregulation. Quangos were to be removed, or at least JUSTICE diminished in size, and bureaucracy was to be cut back. That Jessica Lee and Anna Soubry be discharged from the Indeed, many Departments have been spectacularly Justice Committee and Ben Gummer and Elizabeth Truss be successful in this respect. The Minister’s Department added. has shown an early positive approach, with plans to remove primary care trusts. Sadly, the Care Quality SCOTTISH AFFAIRS Commission, which was set up by the previous Government, That Mark Menzies and Julian Smith be discharged from the has slipped through the net. This organisation is now Scottish Affairs Committee and Mike Freer and Simon Reevell be displaying a cancerous bureaucratic growth that I would added. have expected from the combination of the previous Labour Government working hand in hand with some TREASURY overbearing Labour council. That David Rutley be discharged from the Treasury Committee In response to early consultation, members of the and Mr David Ruffley be added. dental profession, particularly through their organisations, accepted that there should be regulation of the dental WORK AND PENSIONS profession—they ought to, because there is plenty of That Richard Graham and Sajid Javid be discharged from the that already—but they did not expect the monster that Work and Pensions Committee and Andrew Bingham and Brandon is now descending upon them. All dental professionals Lewis be added.—(Geoffrey Clifton-Brown, on behalf of the Committee will be required to register with, and be regulated by, the of Selection.) CQC by April next year. The profession is being encouraged to do this online. The commission has made some efforts in that they undertook to warn dentists, and they even gave some dentists a registration number. Many dentists did not receive the notification; I am one of those. There are two stages that dentists need to complete. First, there is the enrolment form. To my mind, this form was relatively straightforward, but attached to it were barrel-loads of instructions—page upon page of confusing do’s and don’ts that were excessive and confusing. After registration is accepted, registrants need to complete the CQC permission and validation form. Included in the second stage is a requirement for a Criminal Records Bureau check. Members of the dental profession are not required to obtain a standard CRB check but have to obtain an enhanced CRB check. This is the first example of the enormous bureaucracy and unnecessary duplication involved. It costs money and time to acquire. Forms have to be obtained, filled in and processed through one of the 100 or so Crown post offices. The Post Office is paid for the service by the dentist, as is the CRB. From time immemorial, the General Dental Council has kept a legal watchful eye over dentists in judicial matters. Any dentist who is convicted of a criminal charge is reported to the General Dental Council—that is simpler and involves only those very few members of the profession who are criminally convicted. 639 Dental Practitioners29 NOVEMBER 2010 Dental Practitioners 640

As a dentist and MP, I witnessed the uproar that the Outcome 17, on complaints against dentists, was a last Government caused among the dental profession favourite of the Labour Government. It requires that with the change in the contract for NHS dentists. I have there is a complaints and comments system, that there to warn the Minister that the CQC is causing the same is support for complainants and that action is taken to uproar. The difference now is that the condemnation by address complaints. The General Dental Council also individual dentists and by every organisation related to requires a practice to have a complaints procedure, so dentistry is universal. These range from the British private practices and NHS practices are covered. An Dental Association and all the other similar professional offshoot of the GDC, the Dental Complaints Service, organisations through to, curiously, a group of solicitors deals specifically with patients’ complaints, whether in called the Dental Law Partnership. The intriguing thing the national health service or private. is that the Dental Law Partnership is a group of solicitors Outcome 10, on the safety and suitability of premises, with dental training who specialise in suing dentists—but duplicates matters under the jurisdiction of the Environment they are on side this time. Agency, water companies and the Health and Safety To quote Susie Sanderson of the British Dental Executive. The HSE has the power to enforce the Association, the CQC is currently seen as overbearing, requirement for practices to have a risk assessment. It inconsistent and duplicatory. The Health Department’s also has jurisdiction over equipment and its use to impact assessment of the regulation of primary, medical ensure that it is properly maintained and serviced. I am and dental care providers, on which the proposed regulation sure that the Minister will have done some homework of dental professionals by the CQC was based, failed to for tonight and will be aware that the fire prevention identify any sound evidence to support the proposition regulations also fall under CQC outcome 10. that the existing regulation of dental professionals or the systems in which they work in England, were ineffective. The Minister of State, Department of Health (Mr Simon There is no reliable evidence base for the proposition Burns) indicated assent. that the current regulation of the dental profession by the General Dental Council, among others, fails to Sir Paul Beresford: The Minister is nodding sagely so regulate the system of dental care, nor is there any perhaps I will believe him. The fire prevention regulations reliable evidence that failings of the GDC place patient are enforced by the local fire authority and any CQC care at risk. interest in that area is duplication. To my amazement, The attitude of the CQC at its explanatory road there is even duplication in the CQC requirements, shows around the country and at meetings has been some of which are addressed many times. For example, seen by those who have attended—I do not include evidence that practices have appropriate confidentiality myself—as overbearing and dictatorial. To make matters protocols in place must be provided to satisfy outcomes worse, its responses to questions at those meetings and 1, 2, 6 and 21. on its helplines have been inconsistent. There is an apparent lack of understanding of dentistry and the Dental providers must comply with 28 standards, but dental profession. Perhaps that was most clearly emphasised there is no guidance on what the CQC requires as at a lecture, when one of the CQC’s senior members of evidence of compliance. Furthermore, it is unclear who staff failed to understand the difference between the British the auditors of the process will be. To give an example Dental Association and the General Dental Council. provided by people who have lobbied me, the NHS Partners Network and the NHS Confederation state Even more maddening is that most, if not virtually that generally, their members have been subject to mixed all, of the proposed outcomes or targets set by the CQC messages and unclear instructions from the CQC about are duplicated in the existing regulations set out in the what to expect from it. They say that in the current General Dental Council’s “Standards for Dental financial climate, such uncertainty is particularly difficult Professions” of May 2005. To exemplify that, I will list for their members and runs the risk of adding significantly some of what the CQC calls outcomes—targets by any to costs without yielding safety and quality benefits. other name. Outcome 1 covers respect for individuals, The ultimate guillotine is having one’s practice shut outcome 2 is about consent to care and treatment and down for failure to comply with a potential deadline of outcome 3 relates to fees. Those outcomes duplicate the April next year, which is causing deep concern in the GDC’s existing regulations: standards 1, 2 and 3 of dental profession. “Standards for Dental Professionals” of May 2005, standards 1, 2 and 3 of “Principles of Patient Consent”, Finally, I turn to costs. The current situation is that and standards 1, 2 and 3 of “Principles of Patient there is no fee for CQC registration. In contrast, my fee Confidentiality”. The same applies to the outcomes to be paid this month to the General Dental Council is relating to personal care, treatment and support, £576, the same as for the majority of dentists. However, safeguarding and safety, and to outcomes 7, 8, 9, 10 and the CQC is consulting on proposed fees, which it wishes 11—all are covered by the GDC. The same also applies to divide up depending on the size of a provider. The to the three CQC outcomes on the suitability of staff fees proposed are disproportionate, as the lowest fee is quality and management. to be £1,500, for a provider with one location, such as Outcome 14 requires practitioners to demonstrate my own small, part-time surgery, whereas £48,000 is to that ongoing training is taking place. However, the be charged for a provider with 101 or more locations. GDC already regulates the professional development of One of the most glaringly ludicrous points is the dentists and other dental care professionals. Continuing extreme jump in fees from one level to another. For professional development is compulsory for registered example, if a dental firm has 100 practices it will pay dentists and dental care professionals to remain registered £24,000, but if it merely adds one more practice, its fees with the GDC and be permitted to practice. Dentists will double to £48,000. The situation has to be dealt must complete 250 hours of CPD every five years, of with, and it is in the hands of the Minister and his which 75 must be verifiable. colleagues to do so. The CQC is charging ahead blindly, 641 Dental Practitioners29 NOVEMBER 2010 Dental Practitioners 642

[Sir Paul Beresford] services will also be registered. From April 2012, providers of primary medical care will be brought into the registration apparently with little knowledge and with no response system. to concerns that have been expressed. It has finally There are a number of reasons why it is right to bring agreed to sit down with the General Dental Council in primary dental care providers into registration and to the next week or two and discuss the potential duplications require them to meet essential levels of safety and in registration costs. quality. First, the current regulatory systems for dentists I understand that there are organisations similar to focus on the competence of the individual. However, the CQC in Wales and Scotland, and both appear to be how organisations and systems are managed is just as working closely with the GDC without duplication. important in protecting the safety of patients. CQC The result is that the annual cost to Welsh dentists for registration will provide the framework to ensure that their organisation is not between £1,500 and £48,000, the provider, as well as the individuals within it, meet but probably in the region of £80 and certainly less than essential levels of safety and quality. £100. Secondly, increasingly complex treatments are being There is an opportunity for Ministers to act before it provided in primary care settings. For example, it is is too late, and before too much money is wasted. If likely that more oral surgery will be carried out in necessary, the forthcoming Public Bodies Bill will enable primary care in future, and the General Dental Council Ministers to remove the CQC from its role of regulating has seen an increase in complaints about harm caused dentists. I remind the Minister that all the problems that to patients by the placing of dental implants. Those it is having with dentists, and dentists with it, are likely developments make it even more important to ensure to be repeated, and more, in the case of general medical that providers have adequate systems in place to protect practitioners. They are next on the list. the safety of patients. Registration with the CQC will I await the Minister’s considered response, and I hope allow potential problems to be identified and addressed that he will take a step back and promise to consider the before they result in harm to patients. points made by me and, in particular, by the many organisations that have lobbied on the matter. It would be helpful if there were a serious meeting between Sir Paul Beresford: The Minister mentioned the GDC Ministers, the GDC, the CQC and the BDA. It is and complaints about dental implants. There has also overdue. been an increase in poor endodontic work, all of which can be dealt with adequately by the GDC. The situation does not need a huge, monolithic organisation such as 10.12 pm the CQC. The Minister of State, Department of Health (Mr Simon Burns): I begin by congratulating my hon. Friend the Mr Burns: I am very grateful to my hon. Friend for Member for Mole Valley (Sir Paul Beresford) on securing making that point. If he will bear with me, I will, at a this debate on an issue that I know is of some concern slightly later stage in the course of my remarks, address to him and other dentists throughout England. He said whether working together can minimise the level of at the beginning of his comments that he was a friend of overlap so that there is no unnecessary duplication. mine and hoped that he still would be by the end of my speech. I echo that, because I, too, hope that we are still Thirdly, registering primary dental care providers will on friendly, and hopefully speaking, terms by the end of ensure that the same levels of safety and quality are met the debate. irrespective of where care is provided. One patient could be treated in hospital where the quality and safety My hon. Friend will know that the coalition Government of their care is regulated by the CQC, while another do not believe in regulation for the sake of regulation. receives the exact same treatment elsewhere without However, there are areas in which regulation is important that same guarantee. Wholly private dental providers, for the interests of vulnerable people who are less able treating some 7 million patients, are currently subject to than others to defend their own interests. The provision no formal scrutiny of the service that they provide. of health care and adult social care services is one such area, and since 1 April 2009, the Care Quality Commission Finally—I know that my hon. Friend has raised this has been responsible for regulating those sectors under subject in the past—registration will provide greater the Health and Social Care Act 2008. controls on the decontamination of used dental instruments. The Government support the role of the CQC in Guidance on decontamination is set out in “Health ensuring that providers of health care and adult social Technical Memorandum 01-05”. Although that has no care provide services that, at the very least, meet the legal standing, the CQC can monitor whether providers, essential levels of safety and quality that every patient including those in the independent sector, meet its and service user has a right to expect. I am sure that my requirements by enforcing the cleanliness and infection hon. Friend would not argue with that, or with the control registration requirement. enforcement powers that the CQC can use when providers It is the view not just of the Government that the fail to meet essential levels of safety and quality. He will registration of dentists will bring benefits; that view is be aware that the Government are committed to shared by the dental profession. Responding to the strengthening the CQC’s role as an effective regulator of consultation on registration of dental providers with health and adult social care services in England. the CQC in June 2008, the GDC said: At the moment, NHS and private health care providers “We broadly welcome the establishment of the Care Quality are registered by CQC under the 2008 Act, as are Commission…Whilst we are responsible for the registration and providers of adult social care. From April next year, regulation of the whole dental team, whether they work in the providers of primary dental care and private ambulance private or public sector, there has been no additional means of 643 Dental Practitioners29 NOVEMBER 2010 Dental Practitioners 644 regulating wholly private dental services…up until now. We believe they do not duplicate actions and therefore create any that this role can be covered by the CQC and would further risk of double jeopardy. It is vital that CQC registration enhance patient protection”. complements the professional regulation of dentists by The British Dental Association was equally supportive, the GDC. The important word there is “complements”. saying: “Wholly private providers are currently unregulated (beyond Sir Paul Beresford: I spoke to the president of the individual professional regulation) and we believe it is essential GDC last week, and she said they are having a meeting for this to be addressed.” to discuss this for the first time. So the Minister’s information might have gone a little awry. Sir Paul Beresford: I actually touched on that at the beginning of my short address. The Minister has to Mr Burns: I take on board what my hon. Friend says. realise that the consultation came before the CQC moved However, the information I have been given, as I said into the area of dentistry, before the BDA realised what earlier, is that the two regulators have agreed and set out the CQC was going to do and before the monolithic a memorandum of understanding explaining how they and, what I called, almost cancerous growth of this will co-ordinate their activities and share information organisation. to ensure that they do not duplicate actions. I trust that that action is correct, I trust that they work closely Mr Burns: I am grateful to my hon. Friend for that together to achieve that aim, and I will certainly get intervention. As far as I know, however, the BDA was back to him if—despite what I have been led to believe—that aware at the time that dentists were going to be registered is not the case. under the CQC, and as I see it, the comments on the consultation process were made in the knowledge of My hon. Friend also referred to the proposed level of that information. registration fees for dental providers. As he is aware, the Care Quality Commission is currently consulting on its I know there has been concern among dentists about proposals for annual registration fees, which will apply the potential impact of registration with the CQC, and to all providers, including dentists, from April next year. my hon. Friend made an interesting and vigorous case I would like to emphasise that they are proposals for highlighting what he perceived to be some of the problems. consultation. I would certainly urge all dentists in England However, I have some sympathy with those dentists to make their views known to the CQC through the concerned that the process of registering with the CQC consultation process as soon as possible, and certainly will be onerous and time consuming. I can assure him, before it ends, on 17 January. I heard what my hon. however, that for the majority of dentists—those who Friend said, and I have seen the consultation document. already provide high-quality services—there will, to my I can only repeat—and repeat quite vehemently—that it mind, be no difficulty in meeting the essential levels of is important that all dentists take part in the consultation safety and quality. process and ensure that the CQC is fully aware of their The experience of HTM 01-05 demonstrates this views before it ends. I should also add that the CQC’s point. Before the introduction of the guidance, dentists final fees scheme is subject to the consent of the Secretary raised concerns about the burden that complying with it of State. It would obviously be wrong of me to prejudge would place on them. Only today, we have published the the consultation process or what will happen at its results of the dental national decontamination survey, conclusion. All I can do is advise my hon. Friend and showing that when HTM 01-05 was published in November the profession to ensure that they lobby the CQC as 2009, about 70% of practices were already meeting the part of the consultation, so that it is left in no doubt essential quality requirements for decontamination, with about the views and concerns of dentists on the issue. approximately a further 20% of practices very near the My hon. Friend also mentioned Criminal Records essential quality requirements. The remaining small minority Bureau checks, which I know have been a particular of practices were not. issue for some dentists. CRB checks are important to This experience will, I believe, be repeated with CQC ensure that those responsible for the delivery of services registration. Most dental providers already give their are fit to do so. In earlier registration rounds, CRB patients a high-quality service and will find that they checks have revealed convictions that were not otherwise already meet the registration requirements. In those declared. Those dentists who already have a CRB disclosure relatively small numbers of cases where dentists do not countersigned by their primary care trust can use it for meet essential levels of safety and quality, registration CQC registration. I know that there have been practical with CQC will force them to improve. This is the problems with getting the required CRB checks carried purpose of regulation, and such an outcome would out, and I understand the frustration that this has result in safer and better dental care for patients. caused for some dentists. As a result, the CQC has My hon. Friend has spoken about the potential for increased to 100 the number of post offices that can overlap in the role of the CQC and the General Dental process CRB disclosures on its behalf. That will go Council in the registration of dentists, and he raised it some way towards helping to deal with some of the again in his first intervention on me. I would like to practical difficulties experienced in getting a CRB check. address that point now. I read with interest the recent The CQC is also exploring with Post Office Ltd the letter from a number of dentists in The Daily Telegraph possibility of extending the service to the entire post making the same point as him. The CQC and the GDC office network. are working closely to ensure that the roles of the two Although there is a degree of anxiety among dentists regulatory bodies are closely co-ordinated. Indeed, the about CQC registration, I hope—although I am not two regulators have agreed and set out a memorandum convinced—that I have reassured my hon. Friend that of understanding that explains how they will co-ordinate the majority of dentists, who already provide good their activities and share information to ensure that services, have no need to fear CQC regulation. For the 645 Dental Practitioners29 NOVEMBER 2010 Dental Practitioners 646

[Mr Simon Burns] within three hours and that more than 400 applications for registration had been returned by the end of last small number who do not provide a safe service, registration week. With what I believe has been a good start, I am will provide an effective mechanism to bring about hopeful that the task of registering dental providers improvements for patients. Indeed, that is the very with the CQC will be completed on schedule by 1 April purpose of regulation. 2011, and that patients will have the assurance that In spite of the concerns, I am pleased to have been whichever dental practice they use, whether NHS or told by the CQC that the registration of primary dental private, they will receive care that meets essential levels care providers is so far proceeding smoothly. More than of safety and quality. 7,000 dentists, including nearly 1,600 who operate solely Question put and agreed to. in the private sector, have enrolled in the CQC’s registration process. The CQC has now invited those primary dental care providers to submit applications. I understand that 10.29 pm the first completed application was returned to the CQC House adjourned. 57WS Written Ministerial Statements29 NOVEMBER 2010 Written Ministerial Statements 58WS

For 2010-11, gross gilt issuance of £165.2 billion is Written Ministerial projected to be split as follows: £52.7 billion of short maturity gilt issuance (31.9% of total); Statements £38.2 billion of medium maturity gilt issuance (23.1% of total); £40.5 billion of long maturity gilt issuance (24.5% of total); Monday 29 November 2010 £33.8 billion of index-linked gilt issuance (20.5% of total); This proportionate split is unchanged from that announced in June 2010. Auctions will remain the Government’s primary method TREASURY by which gilts are issued. The Government will continue to use supplementary methods—syndication, mini-tenders Banking Act 2009 (Reporting) and the post-auction “top up” facility—to issue gilts in the remainder of 2010-11. For 2010-11, it is projected that: The Financial Secretary to the Treasury (Mr Mark £132.0 billion will be issued by pre-announced auctions Hoban): The Treasury has today published a report (79.9% of total); required under section 231 of the Banking Act 2009 £26.2 billion will be issued by syndication (15.9% of total); covering the period from 1 October 2009 to 31 March and 2010. Copies of the document are available in the Vote £7.0 billion will be issued by mini-tender (4.2% of total). Office and Printed Paper Office and have been deposited Consistent with provisions in the DMO’s financing in the Libraries of both Houses. remit relating to the post-auction “top-up” facility, average auction sizes in the remainder of the year will Debt Management Remit 2010-2011 (Revisions) be reduced but there will be no change to the number or timing of auctions scheduled for the remainder of 2010-11. The Financial Secretary to the Treasury (Mr Mark The Government are also publishing today a revised Hoban): The Government are today revising the Debt estimate of the fiscal impact of the spending review Management Office’s (DMO) 2010-11 financing remit 2010, based on the OBR’s autumn forecast. Copies of to reflect revisions to the net financing requirement. this document have been deposited in the Libraries of The net financing requirement for 2010-11 has been both Houses and are available in the Vote Office and revised upward—by £0.2 billion—from £162.5 billion at Printed Paper Office. the June Budget to £162.7 billion. The revisions to the Financing requirement 2010-11 net financing requirement arise from the net effect of: 2010-11 a reduction in the central Government net cash requirement (CGNCR) of £1.9 billion; June Autumn an increase in sterling financing for the official reserves of £ billion Budget statement £2.0 billion; and additional secondary gilt market purchases by the DMO of £0.1 billion. Central Government net cash 146.1 144.2 requirement The downward revision to the CGNCR is a reflection of revisions announced today by the Office for Budget Responsibility (OBR) to the fiscal aggregates, which Gilt redemptions 38.6 38.6 have a consequential impact on the CGNCR. The Financing for the official 4.0 6.0 revisions are set out in the OBR’s “Economic and fiscal reserves1 outlook, November 2010”, published today. Buy-backs2 0.1 0.2 The increased funding for the official reserves has Planned short-term financing -26.3 -26.3 been provided to meet potential calls under the UK’s adjustment3 IMF commitments. These commitments have recently expanded following parliamentary approval in July 2010 Gross financing requirement 162.5 162.7 of the UK’s increased contribution to the IMF’s New Less Arrangements To Borrow. This delivered the UK’s share Assumed net contribution 0.0 0.0 of the G20 agreement to treble the resources available from National Savings and to the IMF. Investments The increase in the net financing requirement of Net financing requirement 162.5 162.7 £0.2 billion will be met by an increase in the gilt issuance programme in 2010-11 of £0.2 billion. Gross gilt issuance Financed by: for 2010-11 is now projected at £165.2 billion. 1. Debt issuance by the Debt The planned Treasury bill stock as at 31 March 2011 Management Office is £60.8 billion—unchanged from the projection at the Treasury bills -2.5 -2.5 June 2010 Budget (and compares with levels as at: Gilts 165.0 165.2 31 March 2010—£63.3 billion; 31 March 2009—£44.0 billion). of which As at the June 2010 Budget, the Government are confirming the net finance target for National Savings Conventional Short 52.6 52.7 and Investments to be a zero net contribution to financing, Medium 38.2 38.2 within a range of +/- £2 billion. Long 40.4 40.5 59WS Written Ministerial Statements29 NOVEMBER 2010 Written Ministerial Statements 60WS

Financing requirement 2010-11 Lottery funding to support film will increase from 2010-11 about £27 million today to more than £40 million by 2014. June Autumn Film London will be entrusted with a UK-wide remit £ billion Budget statement to promote the UK as the best place to invest in film, Index-linked 33.8 33.8 working in partnership with the film industry. A consultation will be launched next year to consider 2. Other planned changes in how to build a more sustainable film industry and how short-term debt4 to develop the distribution and exhibition of British Changes in Ways and Means 0.0 0.0 films in the UK. This review will be led by the DCMS and the BFI and will include a review of lottery distribution and recoupment policy. Stakeholders will have the 3. Unanticipated changes in 0.0 0.0 opportunity to contribute their views through a formal short-term cash position5 consultation. The DCMS and BFI will work with broadcasters and Total financing 162.5 162.7 exhibitors on how to incentivise audiences to go and watch British films and increase their exposure, following Short-term debt levels at end of Odeon’s proposals today which we welcome. financial year The BFI will work with Film London, BBC Worldwide, and BAFTA on how BAFTA and BBC Worldwide Treasury bill stock in market 60.8 60.8 could support the distribution of British films abroad. hands6 Ways and Means 0.4 0.4 The BFI will go through a radical change to take up this challenge and become the flagship body for film DMO net cash position 0.5 0.5 policy. The chairman of the BFI will consult his board 1 The additional £2 billion of Sterling financing for the Official and detail his views on how this will be taken forward Reserves will be provided to meet potential calls on the Official very shortly. We are all clear that these changes will Reserves arising from the commitments made at the G20 London summit. need to be significant and far-reaching and include a 2 Purchases “rump” gilts which are older, small gilts, declared as review of their management structures to ensure they such by the DMO and in which gilt-edged Market Makers are properly equipped to take up these functions. (GEMMs) are not required to make two-way markets. The Government will not sell further amounts of such gilts to the market DCMS and the BFI will shortly agree the details of but the DMO is prepared, when asked by a GEMM, to make a price the new direct relationship that will be established, to purchase such gilts. including accountability mechanisms. Our own internal 3 To accommodate changes to the current year’s financing audit will simultaneously audit the BFI’s financial systems requirement resulting from: (i) publication of the previous year’s and processes to provide assurance that these are appropriate outturn CGNCR; (ii) an increase in the DMO’s cash position at the Bank of England; and /or (iii) carry over of unanticipated changes for the significant Exchequer and lottery funding the to the cash position from the previous year. BFI will be receiving going forward. 4 Total planned changes to short-term debt are the sum of: (i) the Due diligence work will start immediately between planned short-tern financing adjustment; (ii) net Treasury bill sales; UKFC, BFI and Film London in order to produce a and (iii) changes to the level of the Ways and Means advance. 5 A negative (positive) number indicates an addition to (reduction in) detailed transfer plan early next year to provide clarity the financing requirement for the following financial year. and certainty to all players, in particular to staff and to 6 The DMO has operational flexibility to vary the end-financial year lottery applicants. This plan will ensure that there is no stock subject to its operational requirements in 2010-11 gap in lottery distribution as the transfer progresses. In the meantime the UKFC remains in charge of lottery distribution. All existing commitments will be CULTURE, MEDIA AND SPORT honoured. Existing arrangements for lottery distribution will UK Film Policy remain in place during 2011-12 to allow time for the review of lottery distribution to take place and provide certainty and stability. The aim is that the conclusions The Parliamentary Under-Secretary of State for Culture, of the review will be implemented in 2012. Olympics, Media and Sport (Mr Edward Vaizey): In July The detailed timetable for the formal closure of the the Government announced their decision to abolish UKFC will be published following the due diligence the UK Film Council. work. Today I am announcing our proposals to support British film going forward. The British Film Institute will become the flagship DEFENCE body for film policy in the UK. The BFI will be nominated as the distributor of film lottery money via secondary legislation. Ground Close Combat Roles (Women) The BFI will be entrusted with the remit to support the film industry in the nations and the regions and to lead on audience development and education. Work in The Parliamentary Under-Secretary of State for Defence support of certification and the media desk will also be (Mr Andrew Robathan): In accordance with the transferred to the BFI. requirements of the EC equal treatment directive, the 61WS Written Ministerial Statements29 NOVEMBER 2010 Written Ministerial Statements 62WS

Ministry of Defence has carried out a review of the At the UK-India summit in New Delhi on 29 July current policy of excluding women from ground close- 2010, the Prime Minister and Indian Prime Minister combat roles. The policy was last formally reviewed in Dr Manmohan Singh welcomed the opportunities that 2002. had opened up for co-operation in the civil nuclear Considerably more direct evidence is available now power sector, including with regard to nuclear trade and than was the case when the previous review was carried exchanges between scientific institutions. out. However, the conclusions are mixed and do not The UK’s position is a reflection of the positive provide the basis for a clear recommendation either way approach that India is taking in addressing the issue of as to whether the current policy of excluding women nuclear proliferation, which is of mutual concern to from ground close-combat roles should be retained or both countries. It is also a reflection of the agreements rescinded. and commitments India has made; in particular, India’s The service chief’s view is that women are fundamental move towards separating its military and civil nuclear to the operational effectiveness of the UK armed forces, programmes and implementing IAEA safeguards at its bringing talent and skills across the board. Their capability civil nuclear facilities. in almost all areas is not in doubt, they win the highest Prior to the Nuclear Suppliers Group exception, the decorations for valour, and demonstrate that they are UK’s policy was to refuse export licences for all NSG capable of acting independently and with great initiative. trigger list items to India. But these situations are not those typical of the small In November 2008, the UK revised this policy, and tactical teams in the combat arms which are required has since assessed all export licence applications on a deliberately to close with and kill the enemy. The case-by-case basis against the NSG guidelines for nuclear consequences of opening up these small tactical teams transfers as applied to India, as well as our wider in close-combat roles to women are unknown. Other nuclear non-proliferation treaty obligations. In line with nations have very mixed experiences. the NSG guidelines, the UK will authorise the transfer In the light of the inconclusive results of the research of NSG trigger list exports to IAEA safeguarded civil and the views of the service chiefs, I have concluded nuclear facilities when satisfied that the transfers will that a precautionary approach is necessary. Accordingly, not contribute to the proliferation of nuclear weapons the current policy of excluding women from ground or nuclear explosives activities, or be diverted to acts of close-combat roles while ensuring that the maximum terrorism. numbers of trades are available to provide opportunity to those women who wish to serve their country will The UK will continue this policy. As set out in the continue. NSG guidelines: In parallel with this statement, I am publishing a full for an NSG trigger list export, we will continue to take into report on the review, including the research that was account whether its export is for peaceful purposes, whether it is destined for a nuclear facility safeguarded by the IAEA carried out, on the Department’s website at and whether there is an unacceptable risk of diversion to an http://www.mod.uk/DefenceInternet/AboutDefence/ unsafeguarded facility. To this end, the UK will seek assurances CorporatePublications/PersonnelPublications/ from the Indian Government that the export will be used EqualityandDiversity/Gender/WomenInCombat.htm. only for safeguarded nuclear activities which are not related to nuclear explosive activities; and FOREIGN AND COMMONWEALTH OFFICE for an NSG dual-use list export, we will continue to take into account whether its export is for a nuclear-related end use, UK Civil Nuclear Trade Policy (India) whether it is destined for a nuclear facility safeguarded by the IAEA and whether there is an unacceptable risk of diversion to an unsafeguarded nuclear fuel cycle activity. The Parliamentary Under-Secretary of State for Foreign The UK will therefore only license the export of and Commonwealth Affairs (Alistair Burt): On 6 September NSG controlled goods to nuclear fuel cycle activities 2008, the Nuclear Suppliers Group (NSG) granted India safeguarded by the IAEA, or for non-nuclear related an exception to its guidelines to permit exports to end uses where we do not assess there is an unacceptable Indian civil nuclear facilities under IAEA safeguards. risk of diversion to an unsafeguarded nuclear fuel cycle The UK was a long-standing and strong supporter of activity. the need for such an exception to allow India to develop its civil nuclear power sector for peaceful purposes. We will also favourably consider applications to export licensable items other than those controlled by the NSG Following this announcement, the UK has developed to India for a nuclear-related end use, including those a strong civil nuclear relationship with India, in line assessed as licensable under the WMD end-use control, with our non-proliferation commitments and international unless there are specific proliferation concerns related obligations. The UK-India civil nuclear co-operation to the export. In particular, such assessment will take declaration, signed on 11 February this year, was a joint into account: statement of our intent in this area. In light of our enhanced relationship following the recent high-level the utility of the items for export to a nuclear fuel cycle or visit, the UK Government would like to restate their nuclear explosive activity; policy towards nuclear-related exports to India, the the legitimacy and credibility of the stated end use; details of which are as follows. the nature and business of the stated end-user (including The UK is committed to allow the promotion and whether they are linked to unsafeguarded nuclear fuel cycle facilitation of trade and other commercial activities activity or nuclear explosive activity); and between India and the UK relating to the peaceful civil any diversionary concerns. use of nuclear energy to help India meet its energy In line with our international obligations, the UK is needs, taking into full account both India and the UK’s committed actively to encourage the UK’s nuclear scientific respective international commitments and obligations. institutions and universities to establish greater links 63WS Written Ministerial Statements29 NOVEMBER 2010 Written Ministerial Statements 64WS with Indian institutions, and to develop co-operation in decontamination away from where clinical care is delivered nuclear research and development of the civil uses of and the use of an automated washer-disinfector, for the nuclear energy technology. Where an export licence is cleaning of instruments. required for such co-operation, the UK will continue to All practices are expected to be operating at EQR assess applications on a case-by-case basis in line with essential quality requirements by the end of this year; the NSG guidelines. Such assessment will take into no timeframe has yet been set for the achievement of account whether the transfer is of information already best practice because of the need for further information in the public domain or is assessed as basic scientific to be obtained about the constraints imposed by the research, as well as the standard provisions of UK design and structure of some dental practices. export control legislation. I am very grateful to the primary care trusts (PCTs) and the dental practices which participated in this voluntary survey, and to the Health Protection Agency which HEALTH worked with the Department in bringing it to completion. In total 75 PCTs participated in the survey which involved nurses with training and experience in infection control Dental National Decontamination Survey 21010 visiting 487 randomly selected dental practices. Practices were assessed in relation to essential quality requirements and best practice at the time that the HTM was published. The Minister of State, Department of Health (Mr Simon Burns): In recent years we have gained a better The results of the survey showed that around 70% of understanding of the risks of transmission of infectious practices were already working at EQR with some 20% diseases like hepatitis from poorly maintained health of practices already achieving best practice. Approaching care premises and instruments which have not undergone 20% of practices were very near EQR with the remaining effective decontamination. The risk to individual dental minority operating at an unsatisfactory standard. patients is small but, with 1.5 million people undergoing These results show that the majority of practices dental treatment each week and some 500,000 people were meeting EQR and it is likely that this figure would infected with blood-borne viruses many of whom may have increased over the year as practices began to be unaware of their infection, we cannot afford to be implement the HTM. complacent. I was very encouraged to learn that well over two Because of this risk and evidence that some dental thirds of practices were already meeting EQR. As to the practices might not be achieving adequate standards, remainder, the survey data show a number of practices the Department issued health technical memorandum need to improve their cleaning of instruments which is a 01-05 “Decontamination in primary care dental practices” critical part of the decontamination cycle. The Department in November 2009. In implementing the HTM we have is encouraging practices to acquire automated washer- sought to strike a balance between protecting patients disinfectors, whose use is a feature of best practice, to and the constraints imposed by the layout and structure achieve a uniformly high standard of cleaning of dental of dental practices which, while being easily accessible instruments. in the high street, may have limited scope for expansion The Department has, in collaboration with the Infection and upgrading. Prevention Society, produced a self-assessment audit I am today publishing the report of the dental national tool to allow all dental practices to assess their level of decontamination survey which was undertaken at the compliance with the quality standards in the guidance. start of the year. The primary aim of this, the first By applying the audit tool, practices will be able to national survey of current standards of decontamination compare their standards to those included in the sample in primary care dental practices, was to provide a baseline survey. to compare standards in general dental practice at the The quality of local decontamination will be one of time of issue of the HTM 01-05 with those set in the the factors the Care Quality Commission (CQC) will guidance. The HTM is intended to encourage continuous take into account in monitoring standards when dental improvement in local decontamination by giving dental practices are brought within its remit from April 2011. practices a range of options to achieve the essential The CQC will wish to ensure that it only registers quality requirements (EQR) identified in the HTM and practices that can demonstrate local decontamination is progress to best practice. carried out to acceptable standards. EQR is a level of decontamination which will achieve The dental national decontamination survey report significant risk reduction, while best practice offers an has been placed in the Library. Copies are available for optimum level of protection. The main features of best hon. Members in the Vote Office and for noble Lords in practice are the provision of a dedicated room for the Printed Paper Office. 467W Written Answers29 NOVEMBER 2010 Written Answers 468W Written Answers to West midlands Councillor Salma Yaqoob(Birmingham City)—Respect Yorkshire and Humberside Questions Councillor Svetlana Rodgers—Liberal Democrat North-west Monday 29 November 2010 Councillor Mia Jones (Chester City)—Liberal Democrat North-east Thea Khamis (former councillor Derwentside)—Labour Wales WOMEN AND EQUALITIES Councillor Yvonne Jardine (Swansea)—Labour Equality and Human Rights Commission Scotland Neelam Bakshi (former councillor)—Labour. Mike Weatherley: To ask the Minister for Women Note: and Equalities what progress has been made on the This information is in the public domain through the BAME reform of the Equality and Human Rights Commission; Women Councillors Taskforce Report. To find further information and if she will make a statement. [27242] please click the following link for the full Report: http://www.equalities.gov.uk/pdf/Task%20Force Lynne Featherstone: We intend to reform the Equality %20Report%20Oct%202009.pdf and Human Rights Commission to focus it on its core regulatory and human rights functions, and provide Equal Pay: Gender better value for taxpayers’ money. Our plans for doing this include legislative proposals which we are preparing Shabana Mahmood: To ask the Minister for Women in the context of the Public Bodies Bill, currently in the and Equalities when she expects the gender pay gap to other House. We intend to consult on our proposals be closed. [18543] early next year. Lynne Featherstone: In 2009, the gap between full-time Black Asian and Minority Ethnic Women Councillors men’s and women’s median earnings was 12.2% rising Taskforce: Expenditure to 22% when comparing median earnings for all men and women. The Government do not produce a forecast Priti Patel: To ask the Minister for Women and of the gender pay gap and has made no assessment as to Equalities pursuant to the answer of 22 November when the gap will close. The Government are committed 2010, Official Report, columns 81-82W, on ethnic to tackling the gender pay gap and is taking a range of minorities, who the members of the Black, Asian and measures to improve women’s position in the labour Minority Ethnic Women Councillors Task Force have market including making pay secrecy clauses unenforceable, been in each year since it was established. [27470] extending the right to request flexible working to all employees, consulting on a new system of parental Lynne Featherstone: The cross-party Black, Asian leave, and promoting gender equality on company boards and Minority Ethnic (BAME) Women Councillors Task including asking Lord Davies to fully investigate the Force consisted of 16 current and former councillors issue. representing all the main political parties and all the 1 Source: regions in England, in addition to Wales and Scotland. ONS. The taskforce was set up in May 2008 until July 2009 and membership of the group did not change over this period. The taskforce members were as follows: Equality: Public Bodies Chair Mr Bain: To ask the Minister for Women and Baroness Uddin Equalities if she will publish each representation she London has received relevant to her decision not to implement Councillor Lurline Champagnie (Harrow)—Conservative section 1 of the Equality Act 2010. [25927] Councillor Maya de Souza (Camden)—Green Councillor Meral Ece (Islington)—Liberal Democrat Lynne Featherstone: The Government have received a Councillor Dr Anwara Ali (Tower Hamlets)—Labour small amount of correspondence on this issue, as they Councillor Lorna Campbell (Lambeth)—Labour do on most issues. As the correspondence was mostly from individuals, and not in response to a public South-east consultation, I have no plans to publish it. Councillor Humaira Khan(Windsor and Maidenhead)—Liberal Democrat Mr Bain: To ask the Minister for Women and Councillor Mimi Harker (Chiltern District)—Conservative Equalities if she will publish each representation made South-west by the public bodies listed in section 1(3) and (4) of the Carol Francis(Former Cllr, Gloucester)—Labour Equality Act 2010 on compliance with the duty under East of England section 1. [25928] Councillor Sherma Batson (Stevenage and Hertfordshire)—Labour Lynne Featherstone: The previous Administration released East midlands information regarding their engagement with the public Councillor Manjula Sood (Leicester City)—Labour bodies referred to. I have received no such representations. 469W Written Answers29 NOVEMBER 2010 Written Answers 470W

Mr Bain: To ask the Minister for Women and Equalities Post Offices whether she plans to bring forward proposals to repeal section 1 of the Equality Act 2010. [25929] Mr Andrew Turner: To ask the Secretary of State for Scotland what discussions he has had with ministerial Lynne Featherstone: I have made clear that the colleagues on the future of the Post Office network in Government are not implementing the duty. We are Scotland. [26767] exploring opportunities to repeal it, which would require primary legislation. David Mundell: The Secretary of State for Scotland and I have regular exchanges with ministerial colleagues on a range of issues. The Government are committed to NORTHERN IRELAND a stable and sustainable post office network and through the Post Office Bill we will be putting the Post Office on Irish Arms Trial: Disclosure of Information a more secure financial footing. David Simpson: To ask the Secretary of State for Universities: Visits Northern Ireland whether any papers held by his Department relating to the Irish Arms crisis and Cathy Jamieson: To ask the Secretary of State for subsequent trial have not yet been published. [26310] Scotland pursuant to the answer of 16 November 2010, Official Report, column 658W, on universities: visits, on Mr Paterson: The events in question pre-date the what date he plans to visit the university of Edinburgh; creation of the Northern Ireland Office (NIO) in 1972. and how many (a) special advisers, (b) civil servants The NIO does not hold any papers on the issue. and (c) press officers he expects to accompany him on that visit. [26915]

WALES Michael Moore: I plan to visit the university of Edinburgh early in the new year and will have the appropriate level Departmental Sponsorship of official support on the day. Voluntary Organisations Priti Patel: To ask the Secretary of State for Wales what expenditure her Department incurred on sponsorship in each year since 1997 for which figures Cathy Jamieson: To ask the Secretary of State for are available. [27527] Scotland when he last met representatives of the Scottish Council of Voluntary Organisations; and what Mr David Jones: Nil. matters were discussed. [26912]

EU Law David Mundell: The Secretary of State for Scotland has met representatives from the Scottish Council of Priti Patel: To ask the Secretary of State for Wales Voluntary Organisations on a number of occasions. how many EU directives are pending transposition into Among the topics discussed were unemployment and domestic legislation by her Department; and what welfare reform, fiscal and tax issues relating to that estimate she has made of the cost of each such organisation and the wider voluntary sector. transposition. [27509]

Mr David Jones: There are no EU directives pending transposition into domestic legislation by the Wales COMMUNITIES AND LOCAL GOVERNMENT Office. Affordable Housing: Construction FIFA: Finance Mr Jim Cunningham: To ask the Secretary of State Graham Evans: To ask the Secretary of State for for Communities and Local Government how many of Wales how much her Department spent on the proposed new affordable homes to be built in the entertainment activities related to the 2010 FIFA next four years he expects to be built in (a) Coventry, World Cup. [27370] (b) the West Midlands and (c) London; and if he will make a statement. [26342] Mr David Jones: Nil. Andrew Stunell: The Department does not forecast levels of future house building, and delivery will be SCOTLAND determined by local housing plans. In the spending review we announced investment of over £6.5 billion in FIFA: Finance housing. This includes over £2 billion to make existing social homes decent and almost £4.5 billion investment Graham Evans: To ask the Secretary of State for in new affordable housing to deliver up to 150,000 Scotland how much his Department spent on entertainment affordable homes. We are giving housing associations activities related to the 2010 FIFA World Cup. [27358] much more flexibility on rents and use of assets, so our aspiration is to deliver as many as homes as possible David Mundell: The Scotland Office has not spent through our investment and reforms. On 22 November any money on entertainment relating to the activities of we published our consultation document “Local decisions: the 2010 FIFA World Cup. a fairer future for social housing” which set out our 471W Written Answers29 NOVEMBER 2010 Written Answers 472W plans for radical reform of the social housing system. for social and intermediate rent and for low cost home We will be publishing further details on affordable rent ownership. Not all affordable housing is provided through in the new year. new build completions as supply can also come from The New Homes Bonus, subject to consultation, also the acquisition and refurbishment of private sector homes. will provide additional financial incentives for building The sales of social stock are sales of dwellings owned more affordable homes. by local authorities or registered social landlords that are sold to sitting tenants (through right to buy, right to Ian Swales: To ask the Secretary of State for acquire and social homebuy) and registered social landlords Communities and Local Government how many units stock sold to non-sitting tenants through low cost home of social housing were (a) built and (b) sold in (i) the ownership products. North East and (ii) Redcar constituency in each year Sales generated within a financial year may not since 1997. [26963] correspond directly to the supply of new build homes shown in the table for the same year as they may have Andrew Stunell: Information for the north east region been built in a preceding year. Shared ownership sales and for Redcar and Cleveland local authority is provided are counted in the figures at the point of purchase of in the following table. the initial share purchased only. The figures exclude The new build figures are based on the Department’s demolitions and also disposals of registered social landlord affordable housing statistics which include homes built stock to the private sector.

New build affordable homes supplied Sales of social stock North East Redcar and Cleveland North East Redcar and Cleveland

1997-98 1,250 60 4,090 30 1998-99 950 10 3,400 110 1999-2000 790 80 4,650 160 2000-01 560 60 5,040 160 2001-02 820 50 5,490 180 2002-03 300 10 6,840 130 2003-04 560 30 9,830 310 2004-05 690 10 7,020 210 2005-06 930 10 4,110 190 2006-07 1,230 50 3,090 150 2007-08 820 0 1,780 100 2008-09 1,300 150 570 30 2009-10 1,990 70 450 30 Note: The figures are rounded to the nearest 10 homes. Sources: New build homes from Homes & Communities Agency; Sales from local authorities (LA sales) and the Tenant Services Authority (RSL sales).

Affordable Housing: West Midlands Arm’s Length Management Organisations: Audit

Paul Uppal: To ask the Secretary of State for Mr Umunna: Toask the Secretary of State for Communities Communities and Local Government what steps he and Local Government what processes his Department plans to take to meet levels of need for social housing plans to put in place to (a) inspect, (b) evaluate and (c) in (a) the West Midlands and (b) Wolverhampton audit arm’s length management organisations following South West constituency. [26647] the abolition of the Audit Commission. [26664] Andrew Stunell: The Department does not forecast Andrew Stunell: We have abolished the Audit Commission levels of future house building, and delivery will be reflecting the Government’s commitment to reducing determined by local housing plans. In the spending regulatory burdens on local authorities. In future it will review we announced investment of over £6.5 billion in be for local authorities to consider whether the performance housing. This includes over £2 billion to make existing of their arm’s length management organisations should social homes decent and almost £4.5 billion investment be evaluated by inspection. in new affordable housing to deliver up to 150,000 affordable homes. We are giving housing associations Audit Commission much more flexibility on rents and use of assets, so our aspiration is to deliver as many homes as possible Richard Fuller: To ask the Secretary of State for through our investment and reforms. On 22 November Communities and Local Government what (a) evidence we published our consultation document ‘Local decisions: his Department took into account and (b) methodology a fairer future for social housing’ which set out our his Department used in determining its forecast of £50 plans for radical reform of the social housing system. million saving arising from the abolition of the Audit We will be publishing further details on affordable rent Commission; and if he will make a statement. [26548] in the new year. Subject to consultation, the New Homes Bonus will Robert Neill: As we stated in the 13 August include an additional incentive to encourage the announcement, we forecast savings of £50 million a construction of more affordable homes. year, having regard to the Commission’s published annual 473W Written Answers29 NOVEMBER 2010 Written Answers 474W reports and audited accounts, and recognising that in Council Tax: Private Rented Housing future councils will be able to appoint their own auditors from a more competitive and open market among audit Graham Jones: To ask the Secretary of State for firms. Communities and Local Government how many private landlords in (a) England, (b) Hyndburn and (c) Charities: Shops Haslingden have been required to pay council tax arrears by local authorities in the latest period for which figures Simon Danczuk: To ask the Secretary of State for are available. [26184] Communities and Local Government pursuant to the answer of 8 November 2010, Official Report, column Robert Neill: This information is not held centrally. 30W, on charity shops, if he will consider the merits of introducing powers for local authorities to regulate the Departmental Disciplinary Proceedings (a) number and (b) location of charity shops in their areas. [26774] Caroline Flint: To ask the Secretary of State for Communities and Local Government whether any (a) Robert Neill: The Use Classes Order is concerned civil servants and (b) politically-appointed staff in his with the land-use impacts of development rather than Department have been disciplined since 8 September the owner or occupier of the premises. The order is 2010; and if he will make a statement. [26445] intended to be a deregulatory mechanism which removes unnecessary applications from the planning system because Robert Neill: Six civil servants and no politically the impacts would be minimal or similar to the pre-existing appointed staff in the Department for Communities development. It is not the role of the planning system to and Local Government have been disciplined since 8 give preference to one type of retailer over another. September 2010. As I outlined in my previous answer, charity shops deliver a public benefit to society. Singling them out for Departmental Legal Costs extra regulation and effectively banning them from opening would be a disproportionate and heavy-handed Alison Seabeck: To ask the Secretary of State for statist intervention. Communities and Local Government what legal costs were incurred by his Department in the case of CALA Council Housing: Finance Homes v Secretary of State. [26011]

Austin Mitchell: To ask the Secretary of State for Greg Clark: Costs are currently a matter before the Communities and Local Government if he will publish courts. I also refer the hon. Member to the answer given (a) the research referred to in paragraph 3.20 of his on 22 November 2010, Official Report, column 52W, to Department’s consultation paper on Reform of the hon. Member for West Bromwich East (Mr Watson), Council Housing Finance and (b) the working papers on costs relating to legal issues inherited from the produced as part of his Department’s review of council previous Administration. housing finance. [26135] Fire Services Andrew Stunell: The research and working papers from the previous Government’s Review of Council John Mann: To ask the Secretary of State for Housing Finance were published on my Department’s Communities and Local Government how many fire website in July 2009. They are available at: stations there were on the latest date for which figures http://www.communities.gov.uk/publications/housing/ are available; and how many fire stations he expects councilhousingconsultation there to be in 2015. [26439]

Austin Mitchell: To ask the Secretary of State for Robert Neill: Latest data are for 31 March 2010, and Communities and Local Government when he plans to these show that there were 1,438 fire stations in England. publish a draft revised Circular 8/95 on the operation The future provision of fire stations is for individual of the Housing Revenue Account ring-fence. [26136] fire and rescue authorities to determine in accordance with integrated risk management planning, with resources Andrew Stunell: We intend to publish a policy document being allocated on the basis of the evaluation of local with full details of our proposals for Housing Revenue risk. Account reform in January. This will include our policy on the operation of the ring-fence. I also refer the hon. Member to the answer given to him on 25 October 2010, Official Report, columns Austin Mitchell: To ask the Secretary of State for 88-89W, outlining how fire and rescue authorities can Communities and Local Government if he will bring make savings without impacting on the quality or breadth forward proposals to allow local authorities to spend of services offered to their communities. all receipts under Right to Buy legislation on Housing Revenue Account housing. [26137] Fire Services: East of England

Andrew Stunell: I refer the hon. Member to the Dr Poulter: To ask the Secretary of State for Communities answer I gave to my hon. Friend the Member for and Local Government what his plans are for future Colchester (Bob Russell) on 23 November 2010, Official Fire Service (a) provision and (b) control centres in (i) Report, column 197W. East Anglia and (ii) Suffolk. [26477] 475W Written Answers29 NOVEMBER 2010 Written Answers 476W

Robert Neill: The future provision of fire and rescue Number of stations in Cleveland, County Durham and Darlington, services, including prevention, protection and response Northumberland and Tyne and Wear at 31 March 2006 to 2010 measures, is for individual fire and rescue authorities to Fire and Rescue determine in accordance with integrated risk management Authority 2006 2007 2008 2009 2010 planning, and resources being allocated on the basis of Tyne&Wear1717171717 the evaluation of local risk. In this way local requirements Source: are determined by local people according to local Annual Returns in DCLG/Chartered Institute for Public Finance circumstances. Accountancy (CIPFA). Numbers of new fire stations and fire station closures The provisional local government finance settlement were also collected for each Fire and Rescue Service for the period 2011-12 will be announced in December, until 2009. These showed no new station and no closures as in previous years. This includes the provisional grant during 2005 to 2009 in each of these areas. allocations for fire and rescue authorities in East Anglia. Fire and rescue authorities will then set their budgets Ian Lavery: To ask the Secretary of State for Communities taking into account the amount of grant that they will and Local Government how many (a) whole-time and receive and the income that they can raise through (b) retained fire fighters were employed by (i) Cleveland, council tax. (ii) County Durham and Darlington, (iii) Northumberland The FiReControl project, initiated by the last and (iv) Tyne and Wear Fire and Rescue Service in the Government, is over-budget and behind schedule. In latest period for which figures are available. [26933] June this year we activated a key milestone in our Robert Neill: The numbers of (a) whole-time and contract with the main contractor, EADS (now branded (b) retained fire fighters employed by Cleveland, County Cassidian), for delivery of the FiReControl project. Durham and Darlington, Northumberland and Tyne This required EADS to complete the main system in and Wear Fire and Rescue Services for 2009-10 are three control centres by mid-2011. shown in the table. Because their record has not improved on delivery of Whole-time and retained firefighters (headcount) employed by the project, we informed EADS on 8 November that we Cleveland, County Durham and Darlington, Northumberland and Tyne consider them to be in material breach of their obligations and Wear in 2009-10 under the contract and required them to remedy the Fire and Rescue Authority Whole-time Retained position in 20 working days. As with all major Government projects, FiReControl Cleveland 505 90 is being reviewed to ensure value-for-money for the County Durham & 392 162 Darlington taxpayer. We have been clear that EADS must deliver to time, cost and quality.The new Government are committed Northumberland 202 206 to ensuring value for money for the taxpayer, improving Tyne and Wear 867 20 resilience and stopping the forced regionalisation of the Source: Annual Returns to DCLG fire service. Fires: Insurance

Fire Services: North East Tom Blenkinsop: To ask the Secretary of State for Communities and Local Government whether he has made a recent estimate of the effect on insurance costs Ian Lavery: To ask the Secretary of State for consequent of a fire of the time taken by firefighters to Communities and Local Government how many fire reach the scene of that fire. [26693] stations there were in (a) Cleveland, (b) County Durham and Darlington, (c) Northumberland and Robert Neill: Estimates for the relationship between (d) Tyne and Wear Fire and Rescue Service area (i) on response times and property losses have been made, and the latest date for which figures are available and (ii) in these are available in the report, “Review of Fire and each of the last five years; and how many new stations Rescue Service Response Times” available on the DCLG were built in each area in each of those years. [26786] website at: http://www.communities.gov.uk/publications/fire/ Robert Neill: The numbers of fire stations in Cleveland, frsresponsetimes County Durham and Darlington, Northumberland and Fires: North East Tyne and Wear Fire and Rescue Service areas are shown in the table for the latest date for which centrally held Ian Lavery: To ask the Secretary of State for figures are available and in each of the last five years. Communities and Local Government how many deaths Number of stations in Cleveland, County Durham and Darlington, from fire were recorded in (a) Cleveland, (b) County Northumberland and Tyne and Wear at 31 March 2006 to 2010 Durham and Darlington, (c) Northumberland and Fire and Rescue (d) Tyne and Wear Fire and Rescue Service area in Authority 2006 2007 2008 2009 2010 each of the last five years. [26787] Cleveland 15 15 15 15 15 Robert Neill: The latest statistics for deaths from fire County Durham & 15 15 15 15 15 in (a) Cleveland, (b) County Durham and Darlington, Darlington (c) Northumberland and (d) Tyne and Wear Fire and Northumberland 18 18 18 18 18 Rescue Service area are shown in the table.

Deaths recorded in FRS areas Cleveland, Durham, Northumberland, and Tyne and Wear 2005-06 to 2009-101 FRS area 2005-06 2006-07 2007-08 2008-092 2009-101

Cleveland 3 4 3 2 5 477W Written Answers29 NOVEMBER 2010 Written Answers 478W

Deaths recorded in FRS areas Cleveland, Durham, Northumberland, and Tyne and Wear 2005-06 to 2009-101 FRS area 2005-06 2006-07 2007-08 2008-092 2009-101

Durham 3 5 1 5 0 Northumberland 3 5 3 5 1 Tyne and Wear 7 5 8 7 4 1 Provisional 2 Revised provisional Source: Fire and Rescue Incident Statistics Databases, DCLG

Homelessness: Finance Grant Shapps: On 12 November the Government launched a consultation on the New Homes Bonus Alison Seabeck: To ask the Secretary of State for which includes the option of including empty homes Communities and Local Government what funding he within the scheme. The consultation is available at: plans to allocate to the prevention of homelessness in www.communities.gov.uk/publications/housing/ each year of the spending review period. [26141] newhomesbonusconsult This could provide local authorities with a powerful Grant Shapps: We have protected homelessness grant incentive to tackle empty homes as part of their overall funding, with £400 million over the next spending review approach to meeting housing need. There have been no period to support the most vulnerable and tackle discussions specifically in relation to Hyndburn but we homelessness. Preventing homelessness grant allocations would welcome views of all those with an interest in this to local housing authorities for 2011-12 will be announced consultation which ends on 24 December. alongside the provisional local government finance In addition we will provide £100 million for housing settlement in early December. associations and local authorities to bring over 3,000 empty homes back into use as affordable rented housing. Housing Associations This will enable local authorities to tackle the most difficult properties by providing renovation works and Mr Jim Cunningham: To ask the Secretary of State management support. for Communities and Local Government what recent We are also working with the Homes and Communities assessment he has made of the effectiveness of the Agency and with “Empty Homes” (a leading charity) to bidding system for prospective tenants operated by help ensure that local authorities have the information housing associations; and if he will make a statement. and expertise they need to take enforcement action [26343] where necessary.

Andrew Stunell: Research into the longer term impacts Mr Meacher: To ask the Secretary of State for of choice based lettings (CBL) was carried out by Communities and Local Government how many (a) Heriot Watt university for the Department for Communities private, (b) local authority and (c) registered social and Local Government and the report of the findings, landlords new build housing completions there were in “Monitoring the longer term impacts of choice based (i) each year from 1990 to 2009 and (ii) in 2010 to the letting”, was published by the Department in October latest date for which figures are available. [26314] 2006. The research assessed the impacts of choice based lettings across a range of issues, including tenancy Andrew Stunell [holding answer 25 November 2010]: sustainment, community cohesion, tenant mobility, demand The latest annual figures showing how many new build for social housing and cost-effectiveness, and the report housing completions there were in all calendar years, included the following findings: 1946 to 2009 are shown in live table 244 on the DCLG in the context of multi-ethnic areas, choice based letting tends website. These split total house building completions by to reduce rather than compound ethnic segregation tenure, including completions by private owners, local outcomes for homeless households are largely positive, eg authorities and housing associations. ‘Registered social under choice based lettings they are more likely to be housed in landlords’ are now referred to as ‘housing associations’. high demand areas choice based lettings generates improved tenancy sustainment http://www.communities.gov.uk/documents/housing/xls/ 1473507.xls choice based lettings encourages applicants to think more flexibly about their housing choices More recent quarterly figures for new build completions choice based lettings set-up costs can be off-set by housing (Q1, Q2 and Q3 in 2010) were published in live table 213 management efficiencies. in November 2010. These quarterly figures are for England only. Housing: Construction http://www.communities.gov.uk/documents/housing/xls/ 1473517.xls

Graham Jones: To ask the Secretary of State for Housing: Empty Property Communities and Local Government what recent discussions he has had on the effect of the New Homes Bonus Scheme on areas with high numbers of empty Simon Hughes: To ask the Secretary of State for properties in (a) Hyndburn constituency and (b) Communities and Local Government how many elsewhere; and what steps he is taking to bring such residential properties in (a) Greater London and (b) empty properties into use. [26173] England owned by local authorities are empty. [25611] 479W Written Answers29 NOVEMBER 2010 Written Answers 480W

Andrew Stunell: In 2009 there were 9,300 vacant multiple occupation licence renewals. The current dwellings in total owned by local authorities within regulations prescribe the minimum content required for Greater London. In the same year in England there a licence application. Local Government Regulation were in total 34,600 vacant local authority dwellings. are providing support to local authorities through the Figures on vacant local authority dwellings are available renewal process. However, more broadly, Ministers are from the DCLG website, linked as follows. Table 611 happy to receive representations on the potential for shows numbers of local authority vacant dwellings by reducing red tape and unnecessary form-filling. region, based on returns to DCLG. Figures for 2010 will be published on 30 November 2010. National Park Authorities http://www.communities.gov.uk/housing/housingresearch/ housingstatistics/housingstatisticsby/stockincludingvacants/ Simon Hart: To ask the Secretary of State for livetables/ Communities and Local Government whether he has Local Government Finance assessed the merits of merging National Park Authorities’ and local authority planning departments. [27005]

Bob Russell: To ask the Secretary of State for Robert Neill: The Department for Environment, Food Communities and Local Government if he will bring and Rural Affairs issued a consultation on the Governance forward the announcement of the Local Government Arrangements for the National Parks and the Broads Grant Settlement in order to give local authorities Authority on 9 November, the consultation concludes more time to prepare their budgets for the 2011-12 on 1 February 2011 and can be found at the following financial year; and if he will make a statement. [25888] link: http://www.defra.gov.uk/corporate/consult/nationalpark- Robert Neill: We will announce our proposals for the governance/index.htm local government finance settlement in the usual manner, giving local authorities sufficient time to set budgets, in In addition, Ministers believe there is a significant due course. scope for different local authorities to share back office functions, including planning services. Local Government: Regulation Planning Permission: Appeals Andrew Jones: To ask the Secretary of State for Communities and Local Government which statutory Bob Russell: To ask the Secretary of State for duties and requirements upon local authorities he plans Communities and Local Government if he will make it to rescind. [26378] his policy to introduce a third party right of appeal in the planning system. [26154] Robert Neill: The Government are committed to reducing centrally imposed barriers and burdens on local authorities Greg Clark: The Government’s reforms to the planning such as legislation, guidance and other forms of system seek to avoid the need for appeals to the Planning prescription. DCLG will work with the local government Inspectorate by all parties. sector to identify and assess these with a view to removing Planning permission should be secured by consistency those which are unnecessary. with plans rather than by development control. I also refer my hon. Friend to my answer on the The Localism Bill will confirm a new regime of regulatory burdens already removed which was given to neighbourhood planning to allow local residents’ my right hon. Friend the Member for Wokingham requirements to be set out in plans with which new (Mr Redwood) on 24 November 2010, Official Report, developments will need to comply. columns 304-05W. Members: Correspondence Public Houses

Mr Baron: To ask the Secretary of State for Julian Sturdy: To ask the Secretary of State for Communities and Local Government when he plans to Communities and Local Government what support his reply to the letters from the hon. Member for Basildon Department provides to public houses. [26129] and Billericay of (a) 6 September and (b) 20 October 2010 on MK Electrical Devices and Systems. [27258] Robert Neill: The Department for Communities and Local Government believes that community pubs are Andrew Stunell: A reply was sent to my hon. Friend important local assets and they, along with other institutions on 15 November 2010. such as village shops and community centres, play an important role in strengthening community relationships Multiple Occupation: Licensing and encouraging wider social action. The Department is currently undertaking a range of actions to support Mike Weatherley: To ask the Secretary of State for the sector. Communities and Local Government if he will provide for As part of our determination to shift power to local a simplified application form for renewal of homes in neighbourhoods, we aim to ensure through the Localism multiple occupation licences from spring 2011. [26282] Bill that community organisations have a fair chance to bid to take over assets and facilities that are important Grant Shapps: The Department for Communities and to them, including local pubs. As part of this, we are Local Government has no current plans to revise regulations working with Co-operatives UK to pilot the use of to enable a simplified application form for homes in community shares as a means to develop community 481W Written Answers29 NOVEMBER 2010 Written Answers 482W finance. A number of community-owned pubs have Grant Shapps: We are planning to publish guidance already used community share issues to develop their early next year on the delivery of affordable housing, business. jointly with the Homes and Communities Agency. The Department is currently considering proposals Social Rented Housing: Standards under the Sustainable Communities Act to prohibit the imposition of restrictive covenants on pubs when they are sold. We intend to make an announcement about Graham Jones: To ask the Secretary of State for this later in the year. Communities and Local Government how many properties in (a) England, (b) Hyndburn and (c) Haslingden do We are also committed to helping firms with business not meet the Decent Homes standard. [26183] rates: simplifying the process and making small business rate relief automatic; introducing a more generous small Andrew Stunell: Comparable local and national statistics business rate relief scheme for a year from October; and are available only for social housing. Landlord returns considering proposals to give councils powers to levy indicate that at 31 March 2010 there were 531 (10.8%) discretionary business rate discounts—which could, for social sector non-decent homes in Hyndburn and 491 example, be used to support local pubs. (10.7%) in Rossendale. Both these local authorities have Support for public houses remains a cross-Government transferred their stock. At the same time there were issue and we will continue to work closely with colleagues 410,000 (10.2%) social sector non-decent dwellings in across Whitehall to champion the place of local pubs as England. the social heartbeat of life in our towns and villages. Youth Services: Expenditure The Government are also to ban the sale of alcohol below cost price, helping protect local pubs from unfair “loss leading” by some shops. Licensing rules will be Ms Buck: To ask the Secretary of State for reformed to make it easier to play live music in local Communities and Local Government what estimate he pubs, and the Government have already scrapped the has made of levels of expenditure per 1,000 people on planned 10% rise in cider duties (the so-called cider youth services in each local authority in England in (a) tax). 2008-09 and (b) 2009-10. [26896] Robert Neill: I have today placed in the Library of the Right to Acquire Scheme House a table that gives, by each local authority in England, the net current expenditure per 1,000 people Richard Fuller: To ask the Secretary of State for on youth education services for the financial years Communities and Local Government if he will take 2008-09 and 2009-10. steps to increase the availability of access to sharia- compliant financing to facilitate right to acquire purchases from housing associations. [26522] TRANSPORT BRB (Residuary): Wales Andrew Stunell: We do not wish to preclude the use of sharia-compliant finance by social tenants who wish to Jonathan Edwards: To ask the Secretary of State for buy their homes under the right to acquire scheme. Transport what assets BRB (Residuary) Ltd. holds in However, the issues raised by such finance are complex each local authority area in Wales; and what plans he and we have not yet found a way to both protect the has for the disposal of such assets. [25937] rights of individuals and provide security for Government Mrs Villiers [holding answer 23 November 2010]: funds, under the terms of the right to acquire legislation Land owned freehold by BRB (Residuary) Ltd. is listed which requires that ownership of a property passes on the company’s website at: direct from landlord to purchasing tenant. www.brbr.co.uk/property/property_listings It is possible to select sites by county or unitary council Social Rented Housing: Rents area. In addition, the company holds most of the trackbed of the former railway from Crosskeys to Markham on Mr Jim Cunningham: To ask the Secretary of State lease. for Communities and Local Government what recent In total BRB (Residuary) owns 389 bridges, tunnels discussions he has had with the Secretary of State for and other structures in Wales, details of which have Work and Pensions on future levels of social housing been placed in the Libraries of the House. rents; and if he will make a statement. [26341] BRB (Residuary) is under instruction to continue its strategy to dispose of assets that have no further transport Grant Shapps: My Department has regular discussions use in accordance with the guidance issued by the at ministerial and official level with the Department for Department for Transport (see link). Work and Pensions. These meetings cover a broad http://www.brbr.co.uk/land_disposal range of topics including social housing. Departmental Contracts

Julie Hilling: To ask the Secretary of State for Ian Austin: To ask the Secretary of State for Transport Communities and Local Government pursuant to the what the monetary value is of contracts his Department answer of 17 November 2010, Official Report, column has awarded to each (a) management consultancy and 807W, on social rented housing: construction, when (b) IT company since 7 May 2010. [16176] and in what form more detail on the implementation of new affordable rent tenure will be published. [26373] Norman Baker: The information is as follows: 483W Written Answers29 NOVEMBER 2010 Written Answers 484W

(a) Contract award values—management consultants—7 May to 30 September 2010 Supplier Award value (£) Organisation

1 AECOM 130,000 DfT(c)—Rail vfm1 2 Amtec 99,000 DfT(c)—Rail vfm 3 Atkins 290,000 DfT(c)—Rail vfm 4 Booz & Co 59,600 DfT(c)—Rail vfm 5 Capita 64,500 DfT(c)—Rail vfm 6 Civity 113,000 DfT(c)—Rail vfm 7 DTZ 50,800 DfT(c)—Rail vfm 8 Marsh Ltd 50,000 HA 9 Mott Macdonald Ltd 43,000 DfT(c)—Rail vfm 10 Oxera 128,400 DfT(c)—Rail vfm 11 SDG/Investors in Excellence 90,000 DfT(c)—Rail vfm Total 1,118,300 1 Sir Roy McNulty’s Rail Value for Money (vfm) review was established by the Secretary of State in December 2009 as an independent study to look at the cost structure of all elements of the railway sector and to identify options for improving value for money for passengers and the taxpayer. Consultants have been appointed because the use of consultants ensures a level of independence that cannot be achieved and certainly not demonstrated using in-house resources alone. In addition, the work has called for skill sets and knowledge beyond those available within the sponsoring organisations. (b) Contract award values—IT suppliers—7 May to 30 September 2010 Supplier Award value (£) Organisation

1 Amtec Consulting Plc 500,000 MCA 2 ANS Group 25,144 VCA 3 Arquiva 1,700 MCA 4 Banctec 360,000 DVLA 5 Cable & Wireless 49,000 DfT(c) 6 Computacenter 89,500 MCA/DfT(c) 7 Diagonal Consulting 5,700 MCA 8 EMC Computer Systems (UK) Ltd 1,197,126 DVLA 9 Engineering Ingeneria Informatica 502,900 MCA 10 Epic Group PLC 16,795 HA 11 Equanet 18,700 MCA 12 ESRI (UK) Ltd 9,400 MCA 13 Frontrange Ltd 15,893 DfT(c) 14 HIS Fairplay 6,500 MCA 15 IBMUKLtd 19,300 MCA 16 Insight Ltd 153,233 MCA/DfT(c) 17 Microsoft Ltd 53,300 DfT(c) 18 Oracle 64,800 MCA 19 PC Maritime 1,400 MCA 20 Phoenix Software Ltd 5,805 DfT(c) 21 PRGX 91,276 DfT(c) 22 QAS Experian Ltd 7,000 MCA 23 Q-Max Systems Ltd 8,825 DVLA 24 Scanoptics 418,106 DVLA 25 SFW Ltd 52,870 VCA 26 SoftBox Ltd 81,486 MCA/DfT(c) 27 Telewest Business 45,000. DfT(c) 28 The Corporate IT Forum 85,000 DfT(c) 29 Vamosa Ltd 10,000 DfT(c) 30 Vega Consulting 9,279 DfT(c) Total 3,905,038 Key: DFT(c)—Department for Transport (Centre) DVLA—Driver and Vehicle Licensing Agency HA—Highways Agency MCA—Maritime and Coastguard Agency VCA—Vehicle Certification Agency

Departmental Lobbying (2) which of his Department’s non-departmental public bodies have undertaken activities to influence public Robert Halfon: To ask the Secretary of State for policy for which they engaged (a) public affairs and Transport (1) how much his Department’s agencies and (b) public relations consultants in each year since 1997; non-departmental public bodies spent from the public and at what monetary cost in each such year. [23782] purse on influencing public policy through (a) employing external (i) public affairs companies, (ii) strategic Norman Baker: The Department for Transport was consultancies and (iii) corporate communications firms, formed in May 2002 and information is provided from (b) external marketing and (c) other activities in each that date or the date an agency/non-departmental public of the last 10 years; [23764] body was formed, if later. 485W Written Answers29 NOVEMBER 2010 Written Answers 486W

None of the seven executive agencies of the Department Mike Penning: The Department for Transport’s capital has spent any money from the public purse on influencing budget (from which Freight Facilities Grant (FFG) is public policy through (a) employing external (i) public funded) was discussed with the Chancellor and Chief affairs companies, (ii) strategic consultancies and (iii) Secretary in the recent spending review. corporate communications firms, (b) external marketing Following the spending review settlement, we are and (c) other activities. currently considering what budgets will be available The following non-departmental public bodies have across a number of the Department’s smaller programmes not undertaken activities to influence public policy for (including FFG). which they engaged (a) public affairs and (b) public relations consultants nor spent money from the public Invalid Vehicles purse on influencing public policy through (a) employing external (i) public affairs companies, (ii) strategic Bob Russell: To ask the Secretary of State for consultancies and (iii) corporate communications firms, Transport what estimate he has made of the number of (b) external marketing and (c) other activities: (a) fatalities, (b) serious injuries and (c) minor Cycling England injuries sustained by (i) users of mobility scooters and Northern Lighthouse Board (ii) people hit by mobility scooters in each of the last five years; and if he will make a statement. [25146] Trinity House Lighthouse Service Renewable Fuels Agency Norman Baker: I have discussed this matter with my Directly Operated Railways colleague, the Under-Secretary of State for Transport, Railway Heritage Committee the hon. Member for Hemel Hempstead (Mike Penning) British Transport Police Authority and with officials as part of a wider consideration of the topic of mobility scooters. Passenger Focus spent £10,662 in 2005-06 and £6,021 in 2006-07 on activities to influence public policy for Road casualty statistics do not currently include mobility which they engaged public affairs consultants on advice scooters as a separate vehicle category, so we have no and support on parliamentary affairs, but no specific central data on the number of these vehicles involved in activities or lobbying were undertaken. They also spent accidents although we are aware of specific incidents. £18,674 in 2008-09 on employing external public affairs We are also aware that the number of mobility vehicles companies for support organising fringe events at party is on the increase. In 2010, the Department for Transport conferences. initiated a survey to help assess the number of mobility scooter users and the extent to which their use may have Departmental Postal Services injured people. I will be considering its conclusions as part of an overall review of the laws governing the use of mobility vehicles. The results of the survey can be Brandon Lewis: To ask the Secretary of State for viewed on the Department’s website at: Transport what steps his Department has taken to http://www.dft.gov.uk/adobepdf/162469/221412/221513/ identify those of its services that could be provided mobilityscoooters/attitudestowardsmobilityscooters1.pdf through the Post Office network. [24945] Members: Correspondence Norman Baker: The Driver Vehicle and Licensing Agency (DVLA) already has a large contract with Post Mr Baron: To ask the Secretary of State for Transport Office Ltd (POL). This includes the long established when he plans to reply to the letters from the hon. motor vehicle taxation services and driver licensing Member for Basildon and Billericay of (a) 12 October services. and (b) 10 November 2010 on a constituent, Mr Lilly. DVLA with the central Department, has additionally [27257] recently been engaged alongside other Government Departments in the Cabinet Office sponsored meetings Mike Penning: A response to the letter of 12 October to review the potential for POL to provide wider counter 2010 was despatched on 18 November 2010. The services across Government. Department for Transport has no record of the letter of 10 November 2010. Freight Facilities Grant Public Transport: Disability

Cathy Jamieson: To ask the Secretary of State for Paul Uppal: To ask the Secretary of State for Transport Transport what recent discussions he has had with the if he will take steps to improve access to public transport Scottish Government on the operation of the Freight for (a) blind people and (b) people with other disabilities Facilities Grant. [26904] in (i) the West Midlands, (ii) Wolverhampton South West constituency and (iii) nationally. [26286] Mike Penning: No recent discussions have taken place with the Scottish Government on the operation of the Norman Baker: The Department for Transport is Freight Facilities Grant. committed to improving access to transport for all disabled people. Cathy Jamieson: To ask the Secretary of State for By way of improvements to physical accessibility, Transport what recent discussions he has had with the national deadlines ranging between 2015 and 2020 are Chancellor of the Exchequer on funding for the in place for public transport vehicles to meet modern Freight Facilities Grant. [26906] accessibility standards. In addition, I am currently 487W Written Answers29 NOVEMBER 2010 Written Answers 488W considering plans for implementation of provisions in Mrs Villiers: Statistics on train crowding are published the Equality Act 2010 which aim to ensure better levels by the Office of Rail Regulation (ORR) in the National of wheelchair access to taxis both in terms of availability Rail Trends (NRT) Yearbook, which is available in the and assistance. I will be making an announcement in House Library, or from the ORR website: due course. www.rail-reg.gov.uk In the recent spending review, the Government also The NRT Yearbook contains ‘passengers in excess of confirmed their commitment to continue to protect capacity’ (PiXC) statistics showing overcrowding on concessionary travel, from which many disabled people London commuter services. Summary statistics on crowding benefit. levels into selected regional cities will be released at a By 2015, nine rail stations in the West Midlands will later date. receive an accessible, step-free route as part of the The PiXC crowding measure is derived from the Access for All programme. A further 90 stations have number of passengers travelling in excess of capacity on been offered funding for a variety of smaller scale all services. access improvements including the installation of tactile The main source of data used to derive the PiXC surfaces, lighting upgrades, public address systems, signage measure is obtained from the counts carried out in the and automatic doors. In line with the Coalition’s localism autumn of each year. These are derived from a mix of agenda, it will be for local partnerships—integrated manual and automatically generated passenger counts. transport authorities working with local authorities and communities to identify solutions for local Road Safety Markings Association improvements. Mr Watson: To ask the Secretary of State for Transport Railways: Freight what recent meetings he has had with representatives of the Road Safety Markings Association; and if he will make a statement. [26397] Alex Cunningham: To ask the Secretary of State for Transport what plans he has for development of rail Mike Penning: I met with representatives of the Road freight services (a) in Stockton North constituency and Safety Markings Association in my office on 14 October. (b) in Teesside; and what his policy is on (i) freight capacity and (ii) rail freight safety in such development. Roads: Safety [27033]

Mrs Villiers: The development of rail freight services Jim Fitzpatrick: To ask the Secretary of State for is commercial matter for the private sector rail freight Transport what proportion of his Department’s capital operators. The provision of freight capacity and rail grant for road safety the proposed reduction of £17.2 million freight safety are operational matters for Network Rail. in the comprehensive spending review represents; and if Capacity allocation and rail safety is overseen by the he will make a statement. [22594] independent Office of Rail Regulation. Mike Penning: As part of the coalition Government’s commitment to decentralising power and financial Railways: Overcrowding autonomy to local government and communities, the Department for Transport (DfT) is radically simplifying its funding for 2011-12, moving from 26 different grant Julian Smith: To ask the Secretary of State for streams to just four. This has included discontinuing the Transport what recent estimate he has made of the level dedicated capital grant for road safety. of overcrowding on rail routes in Yorkshire. [25530] It is for local authorities to decide how to invest the funding support provided in the comprehensive spending Mrs Villiers: The Office for Rail Regulation (ORR) review period. The planned Department for Transport publishes statistics on passengers in excess of capacity funding to support local authorities’ capital investments in National Rail Trends (NRT). These figures were for the period is summarised in the following table. updated in July 2010 for London commuter services, More details have been provided in an answer given to and will be published for other regional centres when the hon. Member for Sheffield South East (Mr Betts) this information is available. on 25 November 2010, Official Report, columns 386-87W. More detailed crowding information on the requested Total DfT capital funding for local authorities (excluding TfL) services may be available directly from the operators at £ million the following addresses: 2011-12 1,554 Northern Rail Ltd., Northern House, 9 Rougier Street, York, 2012-13 1,503 YO1 6HZ. 2013-14 1,465 Customer Relations, First TransPennine Express, Freepost, 2014-15 1,664 ADMAIL 3878, Manchester, M1 9YB.

Andrew Gwynne: To ask the Secretary of State for Roads: Snow and Ice Transport what methodology his Department uses to collate data on passenger overcrowding on the rail John Woodcock: To ask the Secretary of State for network in (a) London, (b) non-metropolitan urban Transport what assessment he has made of the effects areas and (c) metropolitan areas. [25794] on the national road network of an increased frequency 489W Written Answers29 NOVEMBER 2010 Written Answers 490W of abnormal weather conditions arising from climate biofuel deployment options across transport modes, change; and whether he has made an estimate of future including in the road transport sector, which is due to resource requirements to ensure network resilience. report in the spring. [25600] Tintwistle Hollingworth and Mottram Bypass

Norman Baker: The Highways Agency manages the Andrew Bingham: To ask the Secretary of State for strategic road network in England. They have used the Transport whether he undertook a cost-benefit analysis latest scenarios from the UK Climate Projections and of the construction of a Mottram and Tintwistle bypass developed a climate change risk assessment methodology prior to determining the schemes to be approved under as part of a Climate Change Adaptation Strategy. This the Investment in Highways and Local Transport will enable incorporation of climate change considerations programme. [22273] into design standards and specifications, routine maintenance, operating procedures, and the development Norman Baker: The Mottram and Tintwistle bypass of contingency plans; ensuring that the Highways Agency scheme was removed from the roads programme by the continues to operate a dynamic and resilient network. previous administration in 2009. The Secretary of State’s In support of the Adaptation Strategy, the Highways announcement to the House on 26 October and the Agency has developed an Adaptation Framework, designed associated document ″Investment in Local Major Transport to meet the needs of the network and to address the Schemes″, relate only to projects in the current programme aims of the adaptation provisions of the Climate Change and projects submitted to the Department prior to the Act 2008. suspension announced in June 2010. The Mottram and The management of local roads in England is a Tintwistle bypass does not fall into either category and matter for local highway authorities. It is for each therefore was not considered in making the statement of authority to assess how the maintenance of their roads 26 October. should take account of climate change. The Department Transport: Concessions for Transport has, in conjunction with the UK Roads Board, published “Maintaining pavements in a changing Andrew Gwynne: To ask the Secretary of State for climate”. This includes guidance on maintenance practices Transport what special grant funding for the national which improve the resilience of roads to climate change. concessionary travel scheme he has allocated to each integrated transport authority for the purpose of its Taxis: Fuels statutory duty to fund the national concessionary travel scheme in each of the last three years. [26174] Mr Bain: To ask the Secretary of State for Transport Norman Baker: Currently, the bulk of concessionary whether his Department has carried out research on travel funding that Integrated Transport Authorities the opportunities for use of alternative fuels in taxis; (ITAs) receive is provided through levies from the relevant and if he will make a statement. [25918] local authorities—who receive funding via Formula Grant from Communities and Local Government. The Norman Baker: The Department for Transport has remainder of funding is provided through special grant not carried out research which looks specifically at the from the Department for Transport. opportunities for use of alternative fuels in taxis. However, ITAs received the following special grant payments the Department has commissioned work to look at from Department for Transport in the last three years:

£ million 2008-09 2009-10 2010-11 Total last three years

Greater Manchester ITA 10.5 10.8 11.1 32.4 Merseyside ITA 6.5 6.7 8.0 21.2 South Yorkshire ITA 5.1 5.3 5.4 15.8 Tyne And Wear ITA 5.4 5.5 5.7 16.5 West Midlands ITA 12.4 12.6 13.0 38.0 West Yorkshire ITA 8.7 8.9 9.1 26.7 Total for all ITAs 48.6 49.7 52.3 —

Transport: Local Enterprise Partnerships JUSTICE

Community Orders: Finance Julian Sturdy: To ask the Secretary of State for Transport whether his Department plans to delegate Mr Charles Walker: To ask the Secretary of State for responsibility for regional transport strategy to local Justice what assessment he has made of the effects of enterprise partnerships. [25006] the outcomes of the comprehensive spending review on the future viability of (a) sex offender treatment programmes, (b) thinking skills programmes, (c) unpaid Norman Baker: Local Enterprise Partnerships will be work orders, (d) supervision orders, (e) domestic violence free to bring forward their own transport strategies if interventions and (f) other sentencing options for lower they so wish. tier offenders in the community. [26246] 491W Written Answers29 NOVEMBER 2010 Written Answers 492W

Mr Blunt: Internal resource allocations for the spending Mr Djanogly: The Ministry of Justice has responsibility review 2010 period have not yet been decided, but we for coroner law and policy, but no operational role in have made it clear that we expect savings to be achieved the service delivered by coroners. Local authorities (and, in large part through improvements in efficiency and by in some districts, police authorities) are responsible for streamlining administration. We will publish a Green funding and staffing the coroner service. Paper before the end of the year, setting out our plans My officials will continue to work with local and to reform sentencing options and rehabilitate offenders police authorities, and the Coroners’ Society to ensure more effectively, which we expect will have a positive that coroners have access to appropriate facilities to impact on the viability of all the disposals and programmes hold inquests as part of their investigations into sudden available. and unexpected death. In my statement of 14 October 2010, Official Report, columns 37-38WS, I set out our proposals for taking Coroners forward coronial reform. We are reviewing what provisions within the 2009 Act we may commence, and this will Caroline Nokes: To ask the Secretary of State for include provisions which relate to staff and accommodation. Justice (1) what guidance he plans to issue to local Dog Fouling authorities on enforcement of new legislative provision in respect of coroners; [26446] Mark Tami: To ask the Secretary of State for Justice (2) what estimate he has made of the cost to local (1) how many individuals were prosecuted for the authorities of managing the Coroners’ Service in (a) offence of dog fouling in each local authority area in England in each of the last five years; [26516] 2010-11 and (b) 2011-12. [26447] (2) how many individuals were given a fixed penalty fine for the offence of dog fouling in each local Mr Djanogly: The Ministry of Justice has responsibility authority area in England in each of the last five years. for coroner law and policy only. The financial costs of the coronial service fall to the individual relevant authorities. [26517] We aim to issue improved guidance on important Mr Blunt: The number of defendants proceeded against procedures such as the conduct of post-mortem at magistrates courts in England for offences under examinations, while supporting the local management section 3 of the Dogs (Fouling of Land) Act 1996, from and delivery of the service. We will continue to work 2005 to 2009 (latest available) can be viewed in the table. collaboratively with coroners, their staff, local government, Figures are presented for police force area in England police authorities and the senior judiciary to deliver as data held on the Ministry of Justice’s Court Proceedings service improvements. Database are not available at local authority area level. The Department for Environment, Food and Rural Robert Flello: To ask the Secretary of State for Justice Affairs (DEFRA) advise that records on fixed penalty what steps he plans to take to provide additional assistance fines for the offence of dog fouling are not held centrally to those coroners who report a lack of adequate facilities and would need to be obtained from each separate local in 2010-11; and when he plans to bring into force those authority. provisions in the Coroners and Justice Act 2009 which Court proceedings data for 2010 are planned for relate to such facilities. [26816] publication in spring 2011.

Number of persons proceeded against at magistrates courts for offences under section 3 of the Dogs (Fouling of Land) Act 1996, by police force area, England, 2005- 091, 2, 3 Police force area 2005 2006 2007 2008 2009

Avon and Somerset 11 11 5 7 5 Bedfordshire 2 — — — — Cambridgeshire — — 3 1 1 Cheshire 5 1 3 2 1 Cleveland 25 18 43 29 53 Cumbria 13 17 12 9 12 Derbyshire 13 14 11 9 6 Devon and Cornwall — 3 7 8 7 Dorset — 4 2 1 4 Durham — — 3 16 38 Essex 12 2 1 4 4 Gloucestershire 1 — 1 3 1 Greater Manchester 132 92 59 19 26 Hampshire 1 3 1 20 8 Hertfordshire 1 1 2 — — Humberside — — 2 — 1 Kent — — 1 16 24 Lancashire 37 19 27 27 59 Leicestershire 1 2 2 2 3 Lincolnshire 9 6 3 3 4 Merseyside 27 20 11 106 195 Metropolitan Police 47 49 25 48 29 493W Written Answers29 NOVEMBER 2010 Written Answers 494W

Number of persons proceeded against at magistrates courts for offences under section 3 of the Dogs (Fouling of Land) Act 1996, by police force area, England, 2005- 091, 2, 3 Police force area 2005 2006 2007 2008 2009

Norfolk — 3 — — 1 North Yorkshire 3 5 7 3 4 Northamptonshire 5 2 1 6 6 Northumbria 48 59 57 50 61 Nottinghamshire 2 1 1 2 10 South Yorkshire 18 17 23 13 4 Staffordshire — — — 3 1 Suffolk 3 — — — — Surrey — — 1 — 1 Sussex — 1 1 2 15 Thames Valley 2 — — 1 4 Warwickshire 1 1 1 — 2 West Mercia — 1 1 1 1 West Midlands 2 10 2 4 8 West Yorkshire 7 6 4 14 26 Total 428 368 323 429 625 1 The figures given in the table relate to persons for whom these offences were the principal offences for which they were dealt with. When a 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 for two or more offences, the offence selected is the offence for which the statutory maximum penalty is the most severe. 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 extractedfrom 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. 3 Only those police force areas are shown where data have been reported. Source: Justice Statistics Analytical Services—Ministry of Justice.

Land Registry It is not possible to answer this question in full in respect of civil legal aid contracts at this time. Following Mr Laurence Robertson: To ask the Secretary of the tender process undertaken earlier in the year, the State for Justice what terms of reference have been set LSC has awarded contracts for all civil categories of law for the feasibility study on the future of the Land except Family (and Family with Housing) that came Registry; and if he will make a statement. [27140] into effect on 15 November 2010. The LSC is currently finalising the contract documentation, after which time Mr Djanogly: The feasibility study is tasked with the final number of organisations delivering services identifying the opportunities for private sector involvement under these contracts will be available by procurement in HMLR. area and access point. It is currently estimated that The project is expected to deliver a written study that there will be in the region of a thousand contracts in will contain sufficient detail to enable Ministers to total for non-family civil legal aid, some of which will make a decision on the future direction of Land Registry be with organisations with multiple locations and/or for in early 2011, so that any financial benefits may be multiple categories of law. I will write to you once the realised within the 2010 spending review period. final information is available. The completed study should fully articulate all of the potential benefits, costs, risks, issues and legislative Tenders for Family and Family with Housing services requirements that may follow from the options for were set aside following judicial review proceedings by private sector involvement. The work will identify the the Law Society. At the end of financial year 2009-10, steps required and time frames for the execution of the there were 2,434 offices with family legal aid contracts necessary transition for each of the future business and numbers of family providers will be broadly consistent model options explored and any alignment or conflict with this as family providers continue to operate under with wider government initiatives. the Unified Contract (Civil) which was introduced on 1 April 2007 and has been extended until 30 November Legal Aid Scheme 2011. Mr Slaughter: To ask the Secretary of State for Justice how many organisations in each constituency Mr Slaughter: To ask the Secretary of State for have legal aid contracts (a) in total, (b) for criminal Justice what research his Department has (a) commissioned work only, (c) for civil work only and (d) for criminal and (b) evaluated on the (i) financial and (ii) social and civil work. [26482] effects of withdrawing the availability of legal aid for cases relating to education provision. [26615] Mr Djanogly: I understand that the Legal Services Commission (LSC) does not hold this information in the format requested. Mr Djanogly: The Department did not commission The LSC has contracts with 1,750 solicitors firms for research, or carry out a formal evaluation of research. criminal legal aid work in England and Wales. Some of Although an impact assessment was published with the these firms provide services in a number of different consultation paper on 15 November and can be found locations. I have placed in the Library a table showing on the Ministry of Justice website at: the number of criminal legal aid providers in each local http://www.justice.gov.uk/consultations/legal-aid-reform- authority area in England and Wales. 151110.htm 495W Written Answers29 NOVEMBER 2010 Written Answers 496W

Mr Slaughter: To ask the Secretary of State for National Offender Management Service: Secondment Justice what estimate he has made of the effects of the implementation of his proposals for the future of (a) Lisa Nandy: To ask the Secretary of State for Justice legal aid and (b) conditional fee agreements on the how many staff were on secondment to the National cost to the public purse of very high cost cases in the Offender Management Service on the latest date for spending review period. [26616] which figures are available. [26426] Mr Djanogly: The Ministry of Justice published initial Impact Assessments and Equality Impact Assessments Mr Blunt: There is no reliable information centrally alongside the consultation papers “Proposals for the available on the number of staff on secondment into the Reform of Legal Aid in England and Wales” and National Offender Management Service. To obtain the “Proposals for Reform of Civil Litigation Funding and information would entail contacting a large number of Costs: Implementation of Lord Justice Jackson’s individual units, which would entail disproportionate Recommendations”which were published on 15 November cost. 2010, available at: www.justice.gov.uk Office of the Public Guardian: Lost Property The proposals on which we are consulting, which cover every aspect of legal aid, including scope, eligibility, remuneration and very high cost cases, will radically Robert Flello: To ask the Secretary of State for Justice reform the system. They will aim to tackle the spread of pursuant to the answer of 27 October 2010, Official expensive and unnecessary litigation into everyday society Report, column 357W, on the Office of the Public at taxpayers’ expense. The Government accept Lord Guardian, what estimate he has made of the (a) frequency Justice Jackson’s assessment that the costs of civil litigation and (b) cost to the public purse of the loss of documents are too high and that the current arrangements impact by the Office of the Public Guardian in the last 12 disproportionately on defendants. months. [26815] Final impact assessments will be published alongside the Government response to both consultations next Mr Djanogly: As per my answer on 27 October 2010, spring. Official Report, column 357W, the Office of the Public Guardian (OPG) is not able to collate statistics in respect of numbers of lost original documents without Legal Aid Scheme: Contracts reference to individual cases. Thus, estimates as to frequency would be no more than speculative. Lisa Nandy: To ask the Secretary of State for Justice As with any process reliant on the submission of how much money from the public purse the Learning paper material, the loss of original documents will, and Skills Council has spent on legal costs in respect of unfortunately, occur on occasion. The OPG takes tendering contracts for legal aid since May 2010. information security very seriously and focuses consistently [26699] on minimising the potential risk. Mr Djanogly: The Legal Services Commission (LSC) However where original documents are lost, the cost has operational responsibility for tendering contracts to be borne is minimal. The OPG scans all applications for legal aid. on receipt and therefore where an original copy is The LSC has an in-house legal team and it also misplaced, an office copy of the instrument can be instructs counsel where necessary on particular cases. provided. Where the original is subsequently identified, The LSC in-house lawyers do not have a computerised measures are in place to ensure it is then forwarded to time recording system and where no claim for costs is to the applicant. Office copies are afforded the same weight be made by the LSC, a breakdown of the time spent by in law as the original. Costs are therefore limited to the the in-house legal team has not been prepared. In resource to produce and issue any replacement material. addition, the LSC has not yet paid for all of the work done by counsel and so therefore does not currently hold the information requested. Prisoners

Legal Aid Scheme: North West Mr Charles Walker: To ask the Secretary of State for Justice whether he has plans to ensure that prisoners in Lisa Nandy: To ask the Secretary of State for Justice working prisons are (a) placed close to their families how many (a) asylum and (b) non-asylum matter and (b) offered skills training relating to industries that starts were allocated to each provider in each access are prevalent in that area; and if he will make a area in the North West procurement area for the 2010 statement. [26242] contract for such matter starts. [26427] Mr Blunt: The Government have made clear their Mr Djanogly: The Legal Services Commission (LSC) intention to make prisons places of hard work and is currently finalising the contract documentation after discipline. We will be publishing our proposals for which time the final numbers of organisations delivering consultation in the forthcoming Sentencing and services under the 2010 Standard Civil Contract, and Rehabilitation Green Paper. As we develop our proposals the volume of work they will be delivering, will be we will need to consider how best to achieve the working available. prison within the confines of the prison estate and how I will write to the hon. Member when the information best to work with the private and voluntary sectors to has been published on the LSC website. provide work and training opportunities for prisoners. 497W Written Answers29 NOVEMBER 2010 Written Answers 498W

Prisoners’ Release Lisa Nandy: To ask the Secretary of State for Justice whether he has made a recent assessment of the merits Mr Charles Walker: To ask the Secretary of State for of appointing a Director of Probation for England and Justice (1) what assessment he has made of the adequacy Wales. [26425] of existing housing stock to accommodate the release of 3,000 prisoners as part of his Department’s structural Mr Blunt: As probation trusts are independent, arm’s reform plan; and if he will make a statement; [26243] length bodies, operating under contract with the Secretary (2) with reference to his Department’s structural of State, a Director of Probation could not perform the reform plan for the reintroduction of prisoners into the same functions as under the earlier, centralised community, how such reintroduction will be supervised; arrangements. and by what mechanism it will contribute to a reduction However, we recognise that probation trusts need a in reoffending rates. [26244] consistent point of reference and representation within the National Offender Management Service. The new Mr Blunt: No measures will be introduced to release structure we are putting in place from April 2011 will existing prisoners early. The Government will publish a include a Director of Probation and Contracted Services, Green Paper in December setting out proposals for who will be responsible not only for holding trusts to more effective sentencing policies and rehabilitation account against their contracts, but also for ensuring including action on drugs, alcohol, mental health they have the support they need to be effective public employment and housing. We expect the prison population sector providers. to fall by around 3,000 from the current level as a result of these policies. We will consider the provision of Reoffenders departmental resources in the light of consultation responses to our proposals. Prisoners: Voting Rights Mr Charles Walker: To ask the Secretary of State for Justice what steps he is taking to reduce reoffending Thomas Docherty: To ask the Secretary of State for rates among (a) Tier 1 and (b) Tier 2 offenders; and if Justice pursuant to the answer of 23 November 2010, he will make a statement. [26245] Official Report, column 165, if he will publish each item of correspondence between him and Scottish Mr Blunt: All offenders on community orders are Ministers on prisoners’ voting rights. [27172] managed according to their assessed risks and offending related needs in order to reduce their likelihood of Mr Kenneth Clarke: I will reply to the hon. Member reoffending. Individual sentence plans are drawn up for as soon as possible. each offender to focus on objectives to reduce their risk Probation of reoffending and causing harm. The forthcoming Green Paper will include details of Lisa Nandy: To ask the Secretary of State for Justice the Government’s plans to reform sentencing and introduce what plans he has for the future of the Accredited new measures to rehabilitate offenders. Programmes Panel for programmes run by the Probation Service. [26423] Roads: Accidents Mr Blunt: The Correctional Services Accreditation Panel (CSAP) is a non-statutory body that sits within Mark Tami: To ask the Secretary of State for Justice the Justice Policy Group. Its main role is to accredit how many individuals were prosecuted for failing to programmes that have been designed for offenders both report injuries to or killing a dog in a road traffic in prisons and the community. incident in England and Wales in each of the last five There are currently no plans to change the remit of years. [26520] CSAP or the way in which programmes are accredited. However, we will be keeping this area of work under Mr Blunt: Under section 170 of the Road Traffic Act review in light of the Green Paper due to be published 1988 it is an offence to fail to stop, or report within 24 this autumn. hours, an accident where personal injury or damage is caused. Data held centrally on the Ministry of Justice’s Lisa Nandy: To ask the Secretary of State for Justice Court Proceedings database do not include the how many people who were given a determinate circumstances of each case other than those specified in sentence in each year since 2005 did not take part in the statute and it is not possible to identify details of offender programmes while in prison. [26424] these offences which include injuries or death to a dog.

Mr Blunt: The National Offender Management Service Squatting delivers a broad range of interventions to address the particular risks and needs of offenders. Information on all the activities undertaken by individual prisoners is David Rutley: To ask the Secretary of State for not centrally collated and details on those who did not Justice what steps he is taking to assist property owners take part in offender programmes could be obtained to remove squatters occupying their property; and if he only at disproportionate cost by analysing offender files will make a statement. [26368] and local data systems, validating the information and collating in a common format. Whether a prisoner Mr Blunt: I refer the hon. Member to my previous needs to participate in a particular programme will answer of 3 November 2010, Official Report, column 835W, depend on assessment locally. to the hon. Member for Tamworth (Christopher Pincher). 499W Written Answers29 NOVEMBER 2010 Written Answers 500W

We are reviewing with other Government Departments However the cost of public expense removals (PERs) whether the law in relation to squatting and the way it is paid by the UK Border Agency has been as follows: enforced, should be strengthened, but we have yet to reach a conclusion. £ million Victim Support Schemes 2006-07 20.2 2007-08 22.3 Nic Dakin: To ask the Secretary of State for Justice 2008-09 27.0 what plans he has to establish procedures to support 2009-10 27.5 victims of white collar crime. [26248] These costs include the cost of tickets for both returnees and escorts, but not the actual escorting costs. PERs Mr Blunt: The Government take white collar crime as include individuals who are not failed asylum seekers, seriously as other crime. Those victims can access support such as foreign national prisoners and illegal immigrants. both inside and outside court. In addition, the creation Some failed asylum seekers are removed at carriers’ of a new Economic Crime Agency, as outlined in the expense so their costs are not included in the figures coalition agreement, will be a significant step forward in above. helping to better tackle economic crime. In addition to the costs above the removal of a failed asylum seeker may involve costs related to caseworking and detention which will vary from case to case. HOME DEPARTMENT In addition to enforced removals UKBA also operate various voluntary removal schemes, where failed asylum Alcoholic Drinks: Crime seekers and illegal migrants are encouraged to return voluntarily to their country of origin. Expenditure on Patrick Mercer: To ask the Secretary of State for the these schemes was as follows during the period in Home Department (1) how many people have been (a) question: prosecuted and (b) convicted of offences relating to the sale of alcohol to a person aged under 18 years in £ million each of the last five years; [26029] 2006-07 12.4 (2) how many people have been (a) prosecuted and 2007-08 9.7 (b) convicted for the offence of being drunk and 2008-09 10.0 disorderly in each of the last five years; [26030] 2009-10 16.0 (3) how many people have been (a) prosecuted and (b) convicted of offences related to purchasing alcohol Asylum: Iraq on behalf of a person aged under 18 years in each of the last five years; [26031] Mr MacNeil: To ask the Secretary of State for the (4) how many people have been (a) prosecuted and Home Department how many asylum seekers from (b) convicted for the sale of alcohol to a drunk person Iraq were admitted to the UK in 2008-09; and whether under section 141 of the Licensing Act 2003 in each she has made an estimate of the number of those year since the implementation of that Act. [26032] admitted who were Christians. [26371]

James Brokenshire: Data showing the number of Damian Green: The figures in the table are for asylum cautions, prosecutions and convictions for various alcohol applications and initial decisions on asylum applications offences from 2005-09 are provided in the table which made at port and in country. These data exclude all will be placed in the Libraries of the House. Data for subsequent decisions. Asylum applications are given by the offence of sale of alcohol to a drunk person are year of application; asylum initial decisions are given available from 2004, there was one caution for the by year of decision, as initial decisions by year of offence during this year. application are not available. Totals are given by financial year 2008-09. Asylum: Deportation Information on the number of asylum seekers who were Christians is not available. This could be obtained Julian Sturdy: To ask the Secretary of State for the only by examination of individual case records at Home Department what the cost was of deporting disproportionate cost. unsuccessful asylum seekers in (a) 2007, (b) 2008 and (c) 2009. [26602] Information on asylum is published annually and quarterly in the Control of Immigration: Statistics United Damian Green: The UK Border Agency (UKBA) Kingdom bulletins which are available from the Library seek to remove all those with no legal basis to be in the of the House and from the Home Office Research, UK, this includes foreign national prisoners, illegal Development and Statistics Directorate website at: immigrants and failed asylum seekers. http://www.homeoffice.gov.uk/rds/immigration-asylum- It is not possible to provide a comprehensive figure stats.html for the actual cost of removals and deportations of Asylum applications1 received in the United Kingdom, excluding dependants, and 2 failed asylum seekers because there is no specific budget initial decisions on applications, 2008-09 financial year totals, nationals of Iraq dedicated solely to their removal. Principal applicants Financial year 2008-093 We are unable to disaggregate the specific costs and any attempt to do so would incur disproportionate cost. Applications 501W Written Answers29 NOVEMBER 2010 Written Answers 502W

Asylum applications1 received in the United Kingdom, excluding dependants, and initial decisions2 on applications, 2008-09 financial year totals, nationals of Iraq Offence type Unmatched Matched Principal applicants Documents 0 4 Financial year 2008-093 Driving After Consuming Drugs 1 13 Total 1,505 Drugs 5 0 Port 80 Drugs Services—Other 304 974 In country 1,430 Expert Evidence 0 1 Total decisions 1,475 Explosives 20 14 Firearms 0 28 Fraud 0 6 Decisions GBH Assault 14 18 Grants of asylum 160 High Value Fraud/Forgery 33 50 Grants of humanitarian protection 10 Import Drugs (Customs and 32 Grants of discretionary leave 235 Excise) Total refusals 1,075 Import/Export Controlled Drugs 28 41 1 Figures rounded to the nearest 5 and may not sum to the totals shown because Less Serious Assault 1,901 4,780 of independent rounding. 2 Information is of initial decisions, excluding the outcome of appeals or other Low Value Fraud/Forgery 332 642 subsequent decisions. Murder/Manslaughter 2,088 1,931 3 Provisional figures. Other Burglary 27,469 42,253 Other Serious 1,855 1,432 Crime: Databases Other Sexual Offences 779 986 Other Specialist Services 3 6 Other Suspicious Death 129 119 Philip Davies: To ask the Secretary of State for the Other Vehicle Crime 3,214 6,428 Home Department pursuant to the answer of 8 Other Volume Crime 3,256 4,949 November 2010, Official Report, columns 114-15W, on Possession of Controlled Drugs 209 953 crime: databases, in how many cases in each category of Possession of Firearms 181 361 crime there was (a) a match and (b) no match on the Production of Controlled Drugs 696 1,842 National DNA Database. [24548] Public Order 77 250 Rape 2,441 3,460 James Brokenshire: As at 12 November 2010, there Robbery 7 15 were 369,253 crime scene sample profiles on the National Robbery Serious 2,666 3,228 DNA Database (NDNAD) submitted by police forces Robbery Volume 3,796 4,886 in England and Wales, of which an estimated 221,401 Road Traffic Accident—Alcohol 5 37 had been matched to subject sample profiles and an Sexual Offences 16 27 estimated 147,852 had not. The offence types recorded Supply of Controlled Drugs 926 3,131 against these crime scene sample profiles are shown in Suspicious Death/Abortion 0 3 the following table. Terrorism 33 13 Since April 2002, records have been captured on the Theft 52 43 NDNAD Match Reporting Management Information Theft From a Vehicle 6,931 13,012 Database (MID) on matches between crime scene sample Theft inc Handling Stolen Goods 2,975 7,519 profiles and subject sample profiles. The figures provided Theft of a Vehicle 31,045 33,492 are estimates, as it is possible that some crime scene Threat to Kill/Malicious 02 profiles were matched before 2002 and therefore not Communication captured on the MID. The number of unmatched crime Traffic 0 10 scene profiles may therefore be lower than indicated. In Traffic Offences Fatal 67 121 cases where a crime scene sample profile on the NDNAD Traffic Offences Non-fatal 1,227 3,107 has not matched to a subject sample profile, the crime Unclassified/ Unknown 76 16 may nevertheless have been detected through other Using/Trading in/Shortening/ 404 659 evidence. Converting Firearms Wounding/GBH 1,203 2,497 The data provided are management information and Total 147,852 221,401 have not been formally assessed for compliance with the Code of Practice for Official Statistics.

Offence type Unmatched Matched Crime: Hate Abduction and Kidnapping 359 540 Aggravated Burglary 1,238 1,640 Robert Halfon: To ask the Secretary of State for the Alcohol Technical Defences 3 5 Home Department what objectives her Department Arson/Fire 1,102 1,305 has set for its policy on hate groups operating in the Attempted Murder 554 744 UK. [24582] Auto-Crime 4,308 5,725 Blackmail 56 54 Break in Offences 497 357 James Brokenshire: The Coalition programme for Burglary in a Dwelling 34,217 47,265 government outlines our objectives to deny public funds Criminal Damage 9,049 20,403 to any group that has recently espoused or incited Customs and Excise 2 2 violence or hatred; and to improve the recording of hate crime offences. 503W Written Answers29 NOVEMBER 2010 Written Answers 504W

The Home Secretary also has the power to exclude Deportation: Iran (i.e. ban) an individual from coming to the United Kingdom where she considers that the individual’s presence Tim Farron: To ask the Secretary of State for the here would not be conducive to the public good. This Home Department what recent representations she has may include those who display unacceptable behaviour received on the forced deportation of Child M and his by inciting hatred. family to Iran; and if she will make a statement. We are currently consulting the police on how hate [26458] crime information can best be collected. This commitment has been included in the Home Office’s Business Plan. Damian Green [holding answer 25 November 2010]: It is intended that the police will begin the collection of Information contained in individual records held by the this data from April 2011. As with a whole raft of UK Border Agency is treated as being confidential and Government and police data, we will make information is not normally disclosed to third parties. This is, of available in a transparent and accessible format. course, unless they are authorised representatives of the individual concerned. The UK Border Agency has no The coalition agreement also includes the aim to record that the family has authorised the hon. Member restore rights to non-violent protest. We will review the to act on their behalf. This is not a question of secrecy law to ensure that the police continue to have the for its own sake but simply a matter of protecting the powers they need to protect local communities from privacy of the individual. intimidation and threatening behaviour and to deal with individuals and groups that espouse or incite violence. As he may be aware, Child M and his family are already represented by their constituency MP, my right The Department for Communities and Local hon. Friend the Member for Manchester, Gorton (Sir Government is leading further work across Government Gerald Kaufman). I have already responded to him to tackle non-violent extremism as part of our aim of about this case in full. promoting wider community integration. We have announced a review of the Prevent strategy, Detainees: Children aimed at tackling violent extremism and terrorism, with the objective of ensuring that it is more effective and Annette Brooke: To ask the Secretary of State for the properly focused. The review will consider whether the Home Department (1) what progress has been made in Prevent strategy should be expanded to include other ending the practice of child detention through (a) pilot forms of violent extremism. A revised strategy is due to schemes to find alternatives to child detention and (b) be published in the new year. recent representations made to her on alternatives to child detention; [27269] Cybercrime: Human Rights (2) when she expects the use of child detention centres to cease. [27271] Neil Parish: To ask the Secretary of State for the Damian Green: The Government are committed to Home Department what steps her Department is ending the detention of children for immigration purposes. taking to protect human rights groups operating within A review is currently under way to consider how this the UK from cyber-attack by foreign states. [25268] can be done in a way which protects the welfare of children while ensuring the departure of families who Nick Herbert: Information and advice on cyber security have no right to be in the UK. We need to be sure that threats and cyber security protective security measures any new process works in practice so we are testing out is publicly available on the Centre for the Protection of a range of new approaches aimed at keeping families National Infrastructure (CPNI) website. This information with children in the community. We have also been is aimed at the businesses and organisations which working closely with a range of interested parties in the comprise the UK’s national infrastructure but is also voluntary and statutory sectors who have experience useful for any organisation seeking to protect itself and expertise in this area. against threats of this nature. Alerts to the public, small businesses and other organisations, including charities In the meantime, detention is being used only as a and lobby groups, are available through the getsafeonline.org last resort after families have exhausted their appeal website which also offers comprehensive advice and rights, refused an offer of assisted return and failed to guidance on internet security. comply with arrangements put in place by the UK Border Agency for their departure. The number of Departmental Food families detained in immigration removal centres has reduced significantly during the course of the review, and it is no longer the case that families are detained for Julian Smith: To ask the Secretary of State for the long periods of time. Home Department whether her Department has guidelines on ensuring that food used for her Annette Brooke: To ask the Secretary of State for the Department’s official functions is of domestic origin. Home Department what estimate she has made of the [25535] average amount of time a child spent in an immigration removal centre in the latest period for which figures are Nick Herbert: The Home Department complies with available; and if she will make a statement. [27270] the cross government procurement guidelines published by the Department for Environment, Food and Rural Damian Green: Rather than calculate the average Affairs. The Home Department’s facilities management statistic for time spent in detention, the Home Office provider Ecovert has reported that currently 81% of presents the data as ranges because this is a more food purchases for the staff restaurant and hospitality informative overview and is not subject to distortions events are farm assured produce. by a small number of cases with large values. 505W Written Answers29 NOVEMBER 2010 Written Answers 506W

The latest published statistics show that as at 30 The number of such applications that were granted September 2010 there were five children, detained solely was 451. under Immigration Act powers, in UK Border Agency The number of applicants for indefinite leave to removal centres and short-term holding facilities. All remain in the UK that had their last known address in five had been detained for seven days or less. This figure Greater London was 46,245. is rounded to the nearest five and is of people recorded The number of such applications that were granted as being under 18 on 30 September 2010. These figures was 38,188. will overstate if any applicants aged 18 or over claim to be younger. This is internal management information and is subject to change. This information has not been quality assured Information on children detained solely under under National Statistics protocols. Immigration Act powers are available in the Control of Immigration: Quarterly Statistical Summary, United Football: South Africa Kingdom, July-September 2010 on the Home Office’s Research, Development and Statistics website at: Graham Evans: To ask the Secretary of State for the www.homeoffice.gov.uk/rds/immigration-asylum-stats.html Home Department how much her Department spent The Government have been clear in their commitment on attendance at the 2010 FIFA World Cup. [26148] to end the detention of children. We therefore continue to work with our corporate partners to find an alternative James Brokenshire: The Home Office accounting system that protects the welfare of children, without undermining does not identify separately expenditure on attendance our immigration laws. at the World Cup. However, the Home Office did not send any observers to the World Cup.

Entry Clearances Immigration

Paul Uppal: To ask the Secretary of State for the Dr Huppert: To ask the Secretary of State for the Home Department if she will establish a pilot scheme Home Department what plans she has to allow to enable sponsors of visitors to the UK on short-term students from Commonwealth countries to remain in visas to post a security bond; and if she will make a the UK after they graduate. [27174] statement. [26285] Damian Green: As the Secretary of State for the Damian Green: The main requirements for entry to Home Department, my right hon. Friend the Member the UK as a general visitor are to satisfy the Border for Maidenhead (Mrs May) announced in her statement Force officer that they intend to stay for a limited to Parliament of 23 November 2010, Official Report, period and leave the UK at the end of their stay, that columns 169-86, the Government will shortly launch a they do not intend to work or study and that they can public consultation on proposed changes to the student support and accommodate themselves and any dependants visa arrangements. The consultation will seek views on from funds available to them and without recourse to the future of the Tier 1 Post Study Work category, the public funds. current scheme that allows international students who For family visitors, the UK Border Agency check have achieved certain qualifications to stay in the UK that they generally intend to visit their sponsor in the and work for up to two years after they have completed UK, and that if necessary the sponsor will be able to their studies. maintain and accommodate them. We have no plans to go beyond this with further formal requirements such Police and Criminal Evidence Act 1984 Code of as a security bond. Practice A Richard Fuller: To ask the Secretary of State for the Entry Clearances: Greater London Home Department (1) what steps she has taken to ensure that the proposed changes to section 60 powers in the Police and Criminal Evidence Act 1984 Code of Mr Evennett: To ask the Secretary of State for the Practice A comply with (a) race relations and equality Home Department how many applicants for indefinite legislation and (b) Articles 8 (right to privacy) and 14 leave to remain in the UK had their last known address (non-discrimination) of the Human Rights Act 1998; in (a) the borough of Bexley and (b) Greater London [25467] in the latest period for which figures are available; and how many such applicants were successful. [26270] (2) what proposals she is considering to improve the safeguards in respect of section 60 powers under the Damian Green: The UK Border Agency is unable to provisions of the Criminal Justice and Public Order provide definitive data on the applicants address at the Act 1994. [25273] time of application. The information provided is therefore based on the applicants last known address. Nick Herbert: Powers under section 60 of the Criminal Justice and Public Order Act 1994 contain important The latest period for which figures are available is for safeguards to prevent their misuse. All authorisations applications made between 1 May 2009 and 30 April are intelligence based and approved by a police officer 2010. of at least inspector rank. The power is only used in a The number of applicants for indefinite leave to ‘locality’ within a police area, and only for 24 hours remain in the UK that had their last known address in (with the option to extend this to 48 hours if authorised the borough of Bexley was 584. by a superintendent). 507W Written Answers29 NOVEMBER 2010 Written Answers 508W

However previous guidance did not place any restrictions Police: Manpower on its use within the locality of an authorisation. The code now includes new requirements to ensure that Ed Balls: To ask the Secretary of State for the Home officers do not stop and search individuals unconnected Department pursuant to the answer of 16 November with the purpose of a section 60 authorisation. 2010, Official Report, columns 724-26W, on police: Furthermore, following a period of statutory consultation, manpower, what estimate she has made of the number we have amended the guidance so that it now clearly of police officers with 30 years service or more on 31 states that when selecting persons or vehicles to be March 2010 who had specialist roles. [26076] stopped officers must take care not to discriminate unlawfully against anyone on the grounds of any of the Mrs May [holding answer 23 November 2010]: The protected characteristics set out in the Equality Act information is not collected centrally. 2010. In addition to this we are currently examining the guidance and safeguards around section 60 in light of Police: Offenders the judgment in Gillan and Quinton v. the United Kingdom to see if any further work is appropriate. Andrew Stephenson: To ask the Secretary of State for the Home Department how many police officers were Police Community Support Officers convicted of a criminal offence in each of the last five years. [25907]

Alun Cairns: To ask the Secretary of State for the Nick Herbert: The Home Office neither collates nor Home Department what funding her Department collects the statistical information requested. plans to provide for police community support officers in each of the next three years. [25696] Police: Ports

Nick Herbert: Police community support officers Jackie Doyle-Price: To ask the Secretary of State for (PCSOs) make an important contribution to the Home Department what her policy is on the future neighbourhood policing and the visible and available of port police forces; and if she will make a statement. policing in communities the public wish to see. The [26041] spending review set out the overall settlement for policing. There will be an announcement to Parliament in early Nick Herbert: We continue to explore the potential December setting out the details of allocations of grant benefits that the employment and usage of ports police to all forces, including any specific grant. provide. We have committed to creating a dedicated border police command, within the new National Crime Agency, to enhance national security, improve immigration Police: Cybercrime controls, and crack down on the trafficking of people, weapons and drugs. This command will have responsibility Mr Watson: To ask the Secretary of State for the for tasking and coordinating those border enforcement Home Department how many arrests the Police Central operational staff who together will form the new Border e-Crime Unit made in the course of investigations into Police capability, and will strengthen collaboration of cyber attacks on Government Departments in the last all law enforcement agencies operating at the border. 12 months. [26927] Stop and Search

Nick Herbert [holding answer 25 November 2010]: Ms Buck: To ask the Secretary of State for the Home The Police Central e-crime Unit has made a significant Department (1) how many stop and searches there were number of arrests over the past 12 months, and has in (a) each police authority area and (b) each London been very successful in tackling organised crime groups local authority area in each of the last five years; [23738] targeting the UK through the internet. Such criminals (2) in what proportion of stop and searches in each will attack multiple targets, including Government, and (a) police authority area and (b) London local authority it is not possible to identify separately those arrested for area the subject was from a (i) white, (ii) Black, (iii) attack on Government Departments. Asian and (iv) other ethnic minority background in each of the last five years. [23739]

Police: Disciplinary Proceedings Nick Herbert [holding answer 12 November 2010]: Figures by police force area for each year from 2004-05 Stephen Barclay: To ask the Secretary of State for the to 2008-09 (latest available) are contained in the tables Home Department how many and what proportion of placed in the House Library. These data are not collected (a) police community support officers and (b) police centrally at local authority level. officers in (i) the Metropolitan Police Service and (ii) Figures are provided separately for stops and Cambridgeshire constabulary have been subject to searches under s1 of the Police and Criminal Evidence disciplinary proceedings in each of the last three years. Act 1984 and stops and searches in anticipation of [26450] violence under s60 of the Criminal Justice and Public Order Act 1994. Nick Herbert [holding answer 25 November 2010]: Figures on ethnicity of those stopped and searched The Home Office does not collect the information use self-defined ethnicity for 2006-07 onwards. Figures requested. on this basis for 2004-05 and 2005-06 are incomplete 509W Written Answers29 NOVEMBER 2010 Written Answers 510W and therefore figures have been provided on ethnic and gives further guidance on those characteristics, appearance instead, which means that the categories do which include ethnicity. not match directly. Any comparisons before and after 2006-07 should therefore be made with caution. Figures for total stops and searches appear in the Stop and Search: Terrorism annual Home Office bulletin ‘Police Powers and Procedures England and Wales’. The 2008-09 edition is available Ms Buck: To ask the Secretary of State for the Home online at: Department (1) how many stop and searches were www.homeoffice.gov.uk/rds/pdfs10/hosb0610.pdf carried out under Section 44 of the Terrorism Act 2000 Figures for ethnicity of those stopped and searched in (a) each police authority area and (b) each London appear in the annual Ministry of Justice publication borough in each of the last five years; [23740] ‘Race and the Criminal Justice System’. The 2008-09 (2) in what proportion of stop and searches edition is available online at: conducted under Section 44 of the Terrorism Act 2000 www.justice.gov.uk/publications/raceandcjs.htm the subject was from (a) a white, (b) a Black, (c) an Stop and Search: Ethnic Groups Asian and (d) another ethnic minority background in each (i) police authority area and (ii) London local authority area in each of the last five years; [23741] Richard Fuller: To ask the Secretary of State for the Home Department what steps she plans to take to (3) how many arrests there were as a direct result of a reduce the number of (a) Black and (b) Asian people stop and search under Section 44 of the Terrorism Act stopped and searched under section 1 of the Police and 2000 in each (a) police authority area and (b) London Criminal Evidence Act 1984. [25270] local authority area in each of the last five years. [23742] Nick Herbert: The Government share the concerns about disproportionality in the use of stop and search Nick Herbert [holding answer 12 November 2010]: powers. We are working with the police service to help Figures by police force area for each year from 2004-05 ensure that stop and search powers are used appropriately. to 2008-09 are contained in the tables placed in the There is, however, no single cause of disproportionality. House Library. These data are not collected centrally by It is important, therefore, to look at levels of London borough level. Further data has been provided disproportionality, and any specific demographic or which details the number of stop and searches in 2009-2010. other factors, in individual forces. Figures on ethnicity of those stopped and searched The National Policing Improvement Agency (NPIA) use self-defined ethnicity for 2006-07 onwards. Figures have developed ‘Next Steps’, a diagnostic tool to ensure on this basis for 2004-05 and 2005-06 are incomplete that a force’s use of Stop and Search is not driven by and therefore figures have been provided on ethnic unjustified factors such as discrimination or stereotyping. appearance instead, which means that the categories do ‘Next Steps’ is currently focused on Section 1 of the not match directly. Any comparisons before and after Police and Criminal Evidence Act 1984 (PACE). The 2006-07 should therefore be made with caution. NPIA will support forces to implement ‘Next Steps’ Figures for total stops and searches appear in the and will target forces with high levels of disproportionality. annual Home Office bulletin “Police Powers and Procedures The NPIA has recently commenced the roll out of England and Wales”. The 2008-09 edition is available ‘Next Steps’ in Dorset, Merseyside, and one borough of on-line at: the Metropolitan police service. www.homeoffice.gov.uk/rds/pdfs10/hosb0610.pdf Richard Fuller: To ask the Secretary of State for the Figures for total stops and searches under Section 44 Home Department (1) what steps she plans to take to also appear in the Home Office bulletin “Operation of reduce the number of (a) Black and (b) Asian people Police Powers under the Terrorism Act 2000 and Subsequent stopped and searched under section 60 of the Criminal Legislation: Arrests, Outcomes and Stops & Searches”. Justice and Public Order Act 1994; [25271] The 2009-10 edition is available on-line at: (2) what research her Department has undertaken to www.homeoffice.gov.uk/rds/pdfs10/hosb1810.pdf identify the causes of the disproportionate number of Black and Asian people stopped and searched under Figures for ethnicity of those stopped and searched section 60 of the Criminal Justice and Public Order Act appear in the annual Ministry of Justice publication “Race and the Criminal Justice System”. The 2008-09 1994. [25272] edition is available on-line at: Nick Herbert: My Department has not undertaken www.justice.gov.uk/publications/raceandcjs.htm any research on the causes of disproportionality in the use of section 60 stop and search powers. Visas Amendments to Code of Practice A, made under the Police and Criminal Evidence Act (PACE) 1984, which were laid before the House on 17 November 2010, Dr Huppert: To ask the Secretary of State for the provide further guidance to front-line police officers on Home Department what criteria she has set for measuring the use of section 60 stop and search powers. That the requirement that a Tier 1 visa applicant has achieved guidance makes clear that, in using section 60 powers: international recognition or is likely to do so. [27173] “officers must take care not to discriminate unlawfully against anyone on the grounds of any of the protected characteristics set Damian Green: We will announce details of the criteria for out in the Equality Act 2010” Tier 1 applicants of exceptional talent in due course. 511W Written Answers29 NOVEMBER 2010 Written Answers 512W

Yarl’s Wood Detention Centre: Children on the Electoral Commission for written answer on a named day were answered substantively before or on Annette Brooke: To ask the Secretary of State for the the day named for answer (a) in Session 2009-10 and Home Department what (a) health, (b) recreational, (b) since May 2010; how many such questions tabled (c) educational and (d) religious facilities are available between May 2010 and 12 November 2010 had not for children in the Yarl’s Wood detention centre. received a substantive answer by 18 November 2010; [27272] and what estimate he has made of the average cost of answering a question for written answer on a named Damian Green: Yarl’s Wood, like all immigration day on the day named for answer in the latest period for removal centres, provides free onsite primary healthcare which figures are available. [25989] to the same level of care as NHS general practices in the community. This involves access to nursing care 24 hours Mr Streeter: Statistics on the handling of parliamentary per day, and visiting GPs who are on call outside of questions are kept by the Speaker’s Committee in normal hours. All detainees, including children, are connection with its statutory responsibility to report to seen by a nurse within two hours of their arrival, and the House on the exercise of its functions. are provided with an appointment to see the GP within In Session 2009-10, there were 10 questions tabled for 24 hours. The nurse may make an earlier appointment if answer on a named day, of which four (40%) received a necessary. substantive answer on the day named. Since May 2010 The centre also provides dedicated services to meet there have been eight named day questions, all of which the needs of families and children including a paediatric received a substantive answer on the day named. All nurse, health and midwife visitors, weight and immunisation questions tabled between May 2010 and 12 November 2010 clinics which are able to prescribe malarial prophylaxis had received a substantive answer by 18 November 2010. for identified risk groups, access to children’s acute mental health services (CAMH) and counselling services. Neither the Speaker’s Committee nor the Electoral Commission has made an estimate of the average cost The GP refers detainees to the local primary care of answering a named day question on the day named trusts where secondary treatment is required. for answer but it is noted that HM Treasury has established Yarl’s Wood provides a wide range of recreational the cost of a written PQ as £149.00: facilities for children including a cinema, youth club overseen by a qualified youth worker, grassed and hard http://www.cabinetoffice.gov.uk/parliamentary-clerk-guide/ chapter7.aspx play areas with swings and climbing frames, an area for football and netball and a covered outdoor area with an Sir Paul Beresford: To ask the hon. Member for all-weather pitch. The centre’s crèche has a bouncy castle South West Devon, representing the Speaker’s Committee and a children’s pet area with guinea pigs and rabbits. on the Electoral Commission, how many and what Yarl’s Wood has an Ofsted-registered crèche and proportion of questions tabled to the Speaker’s Committee school with four classrooms and play area delivering 30 on the Electoral Commissioners for ordinary written hours per week of tuition by qualified teachers for answer (a) in Session 2009-10 and (b) since May 2010 children aged 5-16 years. The crèche is staffed seven were answered within (i) seven days and (ii) 14 days of days a week from 9-5 by appropriately qualified child tabling; how many such questions tabled between May care professionals for children under school age. The 2010 and 12 November 2010 remained unanswered by centre’s gym and sports hall are available for five hours 18 November 2010; and what estimate he has made of PE Monday to Friday during school hours as part of the average cost of answering a question for ordinary the delivery of the national curriculum. written answer within seven days of tabling in the latest The centre provides for the varied range of faiths and period for which figures are available. [25990] celebrates various religious festivals/cultural events. Multi faith rooms are available daily as are holy books of Mr Streeter: Statistics on the handling of parliamentary different faiths. The centre’s resident faith ministers are questions are kept by the Speaker’s Committee in accessible to all, including children. connection with its statutory responsibility to report to While the facilities at Yarl’s Wood are of a high the House on the exercise of its functions. standard, the Government have committed to ending In Session 2009-10, there were 30 questions tabled for the detention of children for immigration purposes as ordinary written answer, of which 16 (53%) were answered part of their coalition agreement. In July, the Deputy within seven days and 21 (70%) were answered within Prime Minister, the right hon. Member for Sheffield, 14 days. Between May 2010 and 12 November 2010 Hallam (Mr Clegg) announced the closure of the family there were 22 questions tabled for ordinary written unit at Yarl’s Wood. We will agree a timetable for answer, of which 14 (64%) received a substantive answer closing the unit when we announce the new model for within seven days and 18 (82%) received a substantive managing family cases which support the Government’s answer within 14 days. These periods include non-sitting immigration policies. However, in the meantime, we Fridays, weekends and parliamentary recesses. All questions must continue to ensure families those applications tabled between May 2010 and 12 November 2010 had have failed continue to leave the UK promptly. received a substantive answer by 18 November 2010. Neither the Speaker’s Committee nor the Electoral ELECTORAL COMMISSION COMMITTEE Commission has made an estimate of the average cost Departmental Written Questions of answering an ordinary written question within seven Sir Paul Beresford: To ask the hon. Member for days of tabling but it is noted that HM Treasury has South West Devon, representing the Speaker’s Committee established the cost of a written PQ as £149.00: on the Electoral Commission, how many and what http://www.cabinetoffice.gov.uk/parliamentary-clerk-guide/ proportion of questions tabled to the Speaker’s Committee chapter7.aspx 513W Written Answers29 NOVEMBER 2010 Written Answers 514W

EDUCATION Children: Hearing Impairment

Academies Mr Buckland: To ask the Secretary of State for Education what assessment he has made of the (a) Ed Balls: To ask the Secretary of State for Education level and (b) effectiveness of the provision of specialist with reference to his announcement of 1 September support services for deaf children by local authorities. 2010, whether all the schools listed as converting [22420] from outstanding maintained school status have signed the model funding agreement published on his Department’s website. [15416] Sarah Teather: The Department does not require local authorities to provide specific information on deaf Mr Gibb [holding answer 14 September 2010]: All children. However, the Special Educational Needs (Provision funding agreements will be published on the Department of Information by local Education Authorities) Regulations for Education’s website: 2001 and the School Information Regulations 2008 http://www.education.gov.uk/schools/leadership/ require local authorities to publish their arrangements typesofschools/academies/fundingagreements and policies on the provision available for children with special educational needs, which will include deaf children. Boarding Schools The Special Educational Needs Information Act (2008) requires the annual publication of information about Mrs Grant: To ask the Secretary of State for children in England with special educational needs. The Education whether his Department has made an information published includes local authority data on assessment of the adequacy of the inspection regime outcomes for these children by SEN type, including for the state boarding school sector. [24534] hearing impairment, at key stages 2 and 4 in English, Maths and Science. Mr Gibb [holding answer 16 November 2010]: The Department has not made an assessment of the adequacy of the inspection regime for the state boarding sector. Mr Buckland: To ask the Secretary of State for Education whether his Department requires local authorities to All boarding schools, whether in the maintained or provide parents of deaf children with information on independent sector, are subject to welfare inspections (a) specialist provision for deaf children, (b) eligibility by Ofsted who inspect against the National Minimum criteria for support from the specialist support service Standards for Boarding Schools. for deaf children, (c) the (i) level and (ii) effectiveness of Inspections should be conducted to the highest possible the specialist support service for deaf children and (d) standards and should enjoy the confidence of schools the outcomes achieved by deaf children in their area. and parents. HM chief inspector, as the head of an [22421] independent inspectorate, is responsible for the overall quality of these inspections and ensuring that they are fair and robust. Sarah Teather: The Department does not require local authorities to provide specific information on deaf Mrs Grant: To ask the Secretary of State for children. However, the Special Educational Needs (Provision Education what plans he has to expand the provision of of Information by Local Education Authorities) state boarding school places; and if he will make a Regulations 2001 and the School Information Regulations statement. [24535] 2008 require local authorities to publish their arrangements and policies on the provision available for children with Mr Gibb [holding answer 16 November 2010]: The special educational needs, which will include deaf children. Government support state boarding schools in England The Special Educational Needs Information Act (2008) and wants to see the sector continue to thrive. We requires the annual publication of information about recognise that boarding provision increases the diversity children in England with special educational needs. The of maintained school provision, contributes to inclusion information published includes local authority data on and can help raise standards. outcomes for these children by SEN type, including There are three academies developing boarding provision hearing impairment, at key stages 2 and 4 in English, which are all due to open in September 2011. They are: Maths and Science. Harefield Academy in Hillingdon, London—50 boarders Priory LSST Academy in Lincolnshire—60 (post 16) boarders Wellington Academy in Wiltshire—100 boarders Children: Service Personnel Bookstart Programme: Finance Claire Perry: To ask the Secretary of State for Education whether his Department plans to allocate a Mr Offord: To ask the Secretary of State for Education supplement to the proposed pupil premium in respect if he will allocate funding to the Bookstart programme of the children of service personnel. [24367] for (a) 2011-12 and (b) subsequent years. [22220]

Sarah Teather: The Department for Education’s overall Mr Gibb [holding answer 16 November 2010]: We are funding settlement was announced on 20 October 2010. considering the responses to the consultation on school We are working through the details of that settlement funding which ended on 18 October 2010, which included and the funding implications for individual policy and proposals to extend the pupil premium to the children programmes, including the funding of Bookstart. We of service personnel. We expect to announce our decisions will make further announcements over the coming weeks. on this shortly. 515W Written Answers29 NOVEMBER 2010 Written Answers 516W

Curriculum Departmental Pay

Mr Stewart Jackson: To ask the Secretary of State for Andrew Selous: To ask the Secretary of State for Education pursuant to the answer of 2 November 2010, Education whether all contracted staff working for his Official Report, columns 728-9W,on environmental protection: Department are paid at the level of the London living curriculum, when he expects to announce further details wage or above. [25473] of the plans to review the curriculum; whether he expects that review to include a public consultation exercise; Tim Loughton [holding answer 19 November 2010]: and if he will make a statement. [25335] All contracted staff working for the Department for Education in London are paid at the level of the London Mr Gibb [holding answer 22 November 2010]: Further living wage or above. This does not apply to contracted details of our plans to review the National Curriculum staff working at our regional headquarter offices who are will be announced shortly. We intend that the review paid at the level of the National Minimum Wage or above. process will be open and transparent and can confirm that we will be consulting widely, including launching a public call for evidence. Education Maintenance Allowance Departmental Grants Mr Winnick: To ask the Secretary of State for Education how many people in (a) England, (b) the Anas Sarwar: To ask the Secretary of State for Education West Midlands and (c) Walsall Borough receive how much funding his Department has allocated in education maintenance allowance. [23265] grants for (a) 2009-10 and (b) 2010-11; and how much such funding he plans to allocate for 2011-12. [25818] Mr Gibb [holding answer 11 November 2010]: This is a matter for the YoungPeople’s Learning Agency (YPLA) Tim Loughton [holding answer 22 November 2010]: who operate the Education Maintenance Allowance for The information requested is as follows: the Department for Education. Peter Lauener the YPLA’s Chief Executive, has written to the hon. Member for (a) The published Resource Accounts for 2009-10 show that we allocated £54.8 billion in grants that year. Walsall North with the information requested and a copy of his reply has been placed in the House Libraries. (b) The Departmental Main Estimate shows that we expect to award £56.8 billion in grants in 2010-11. Letter from Peter Lauener, dated 17 November 2010: Grant to be awarded in 2011-12 are not yet finalised. I am writing in response to your Parliamentary Question PQ23265 that asked: Departmental Official Hospitality “How many people in (a) England (b) the West Midlands and (c) Walsall Borough receive education maintenance allowance.” Greg Mulholland: To ask the Secretary of State for EMA take-up is defined as young people who have received Education how much his Department spent on one or more EMA payments in the academic year. hospitality for events hosted by each Minister in the As at 31st October 2010 the take-up figures for young people Department in each of the last three years. [13475] who have received EMA during the 2010/11 academic year are: England 514,179 Tim Loughton: The total spend on official hospitality West Midlands 64,308 by the Department for Children, Schools and Families’ Walsall Borough 3,738 Ministers in each of the last three financial years is: EMA take-up data showing the number of young people who have received one or more EMA payments during 2004/05, 2005/06, £ 2006/07, 2007/08 2008/09 and 2009/10 is available on the YPLA 2007-08 9,000 website, at the following address: 2008-09 4,763 http://ema.ypla.gov.uk/resources/research/takeup/ 2009-10 8,998 Catherine McKinnell: To ask the Secretary of State All departmental expenditure relating to official for Education how many young people in (a) Newcastle hospitality is incurred in accordance with the principles upon Tyne North constituency, (b) the North East and of Managing Public Money and the Treasury handbook (c) England received education maintenance allowance on Regularity and Propriety. in each year since its inception. [24443]

Ian Austin: To ask the Secretary of State for Mr Gibb: This is a matter for the Young People’s Education how much his Department spent on Learning Agency (YPLA) who operate the education hospitality for events hosted by each of its Ministers in maintenance allowance for the Department for Education. (a) September and (b) October 2010. [21778] Peter Lauener the YPLA’s chief executive, has written to the hon. Member for Newcastle upon Tyne North Tim Loughton: The Secretary of State and Ministers with the information requested and a copy of his reply hosted seven briefing events during this period, involving has been placed in the House Libraries. approximately 72 stakeholders from across the education Letter from Peter Lauener, dated 23 November 2010: and children’s sectors to outline policy priorities and I am writing in response to your Parliamentary Question PQ24443 listen to their views. The total amount spent was £382. that asked: All expenditure is incurred in accordance with the “How many young people in (a) Newcastle Upon Tyne North principles of Managing Public Money and the Treasury constituency, (b) the North East and (c) England received Education handbook on Regularity and Propriety. Maintenance Allowance in each year since its inception.” 517W Written Answers29 NOVEMBER 2010 Written Answers 518W

Information on the number of young people who have received I am writing in response to your Parliamentary Question Education Maintenance Allowance (EMA) is available at Local PQ24865 that asked: Authority Level, but not at constituency level. EMA take-up is “How many pupils in Birmingham received education maintenance defined as young people who have received one or more EMA allowance in the last year for which figures are available.” payments in the academic year. Information on the number of young people who have received The following table shows EMA take-up during each academic Education Maintenance Allowance (EMA) is available at Local year since inception for England, the North East and Newcastle Authority (LA) level. The take-up is defined as young people who Upon Tyne Local Authority area. have received one or more EMA payments in the academic year and is based on the learners’ home address and postcode. Newcastle upon The current EMA take up for Birmingham LA for the 2010/11 England North East Tyne academic year to date (as at 31/10/10) is 15,896. 2004/05 297,568 19,409 1,165 For the last full academic year (2009/10) the take-up was 2005/06 430,327 25,755 2,168 19,862 (as at 31/08/10). 2006/07 526,808 32,360 3,051 Education Maintenance Allowance: North Tyneside 2007/08 547,235 33,803 3,282 2008/09 576,144 34,934 3,445 Mrs Glindon: To ask the Secretary of State for 2009/10 644,497 39,102 3,726 1 Education how many students in North Tyneside 2010/11 515,726 31,578 2,982 receive education maintenance allowance (EMA); and 1 To 31 October 2010. In comparing across years, it is important to understand that what steps his Department is taking to assist those national roll-out was phased over several years. In the first year students who will no longer receive EMA in the next EMA was available to all 16-year-olds across England and to 17 academic year to understand and prepare for the new and 18-year-olds in former pilot areas. In 2005/06 EMA was system to replace EMA. [24799] available to all 16 and 17-year-olds nationally. From 2006/07 EMA was available to all 16, 17 and 18-year-olds nationally. Mr Gibb [holding answer 25 November 2010]: Figures on current take-up of education maintenance allowance Mr Ainsworth: To ask the Secretary of State for (EMA) are a matter for the Young People’s Learning Education how many people claimed education Agency (YPLA) who operate the scheme for the maintenance allowance in each year since its introduction Department for Education. Peter Lauener, the YPLA’s in (a) England, (b) the West Midlands and (c) Coventry. chief executive, will write to the hon. Member with the [24860] information requested and a copy of his reply will be placed in the Libraries of both Houses. Mr Gibb: This is a matter for the Young People’s Young people who are currently receiving the EMA Learning Agency (YPLA) who operate the education will continue to receive it to the end of this academic maintenance allowance for the Department for Education. year. Those who are continuing their education next Peter Lauener the YPLA’s chief executive, has written September and need financial help with learning costs to the hon. Member for Coventry North East with the may be eligible for support from the enhanced discretionary information requested and a copy of his reply has been learner support fund that will be administered by their placed in the House Libraries. school, college or training provider. The Department Education Maintenance Allowance: Birmingham will consult with schools, colleges and training providers about the arrangements for the enhanced discretionary learner support scheme that will replace EMA, including Richard Burden: To ask the Secretary of State for how to communicate the changes to students. Education how many pupils in Birmingham received education maintenance allowance in the last year for Free School Meals: Northumberland which figures are available. [24865] Ian Lavery: To ask the Secretary of State for Mr Gibb: This is a matter for the Young People’s Education how many children were in receipt of free Learning Agency (YPLA) who operate the Education school meals in (a) Wansbeck constituency and (b) Maintenance Allowance for the Department for Education. Northumberland on the latest date for which figures Peter Lauener the YPLA’s Chief Executive, has written are available. [22931] to the hon. Member for Birmingham, Northfield with the information requested and a copy of his reply has Mr Gibb: Information on free school meal eligibility been placed in the House Libraries. is shown in the table. This includes full-time pupils aged Letter from Peter Lauener, dated 23 November 2010: 0 to 15 and part-time pupils aged five to 15.

Maintained nursery, maintained primary1, state-funded secondary1,2 and special3 schools: School meal arrangements4,5—As at January 2010 in Wansbeck parliamentary constituency, Northumberland local authority and England Wansbeck parliamentary constituency Northumberland local authority England No. of No. of No. of pupils pupils pupils known to % known to known to % known to known to % known to be eligible be eligible be eligible be eligible be eligible be eligible for free for free for free for free for free for free No. on school school No. on school school No. on school school roll4,5 meals4,5 meals roll4,5 meals4,5 meals roll4,5 meals4,5 meals

Maintained nursery 3,340 640 19.2 15,490 2,390 15.4 3,838,680 711,410 18.5 and maintained primary1 519W Written Answers29 NOVEMBER 2010 Written Answers 520W

Maintained nursery, maintained primary1, state-funded secondary1,2 and special3 schools: School meal arrangements4,5—As at January 2010 in Wansbeck parliamentary constituency, Northumberland local authority and England Wansbeck parliamentary constituency Northumberland local authority England No. of No. of No. of pupils pupils pupils known to % known to known to % known to known to % known to be eligible be eligible be eligible be eligible be eligible be eligible for free for free for free for free for free for free No. on school school No. on school school No. on school school roll4,5 meals4,5 meals roll4,5 meals4,5 meals roll4,5 meals4,5 meals

State-funded 8,450 1,530 18.1 24,890 3,290 13.2 2,864,350 441,140 15.4 secondary1,2 Special3 200 60 32.5 450 160 35.9 78,330 27,330 34.9 1 Includes middle schools as deemed. 2 Includes city technology colleges and academies. 3 Includes maintained and non-maintained special schools. Excludes general hospital schools. 4 Includes sole and dual (main) registrations. 5 Includes pupils who have full-time attendance and are aged 15 or under, or pupils who have part-time attendance and are aged between five and 15. Note: Figures have been rounded to the nearest 10. Source: School Census

Free Schools of the total number of pupils entered for A-levels in each such case; [20224] Lisa Nandy: To ask the Secretary of State for (2) how many pupils in further education colleges Education whether his Department’s free schools were entered for a chemistry A-level in (a) comprehensive group provides advice to the public on setting up free schools, (b) maintained selective schools and (c) schools. [24757] independent schools in each year since 1997; and what proportion this represented of the total number of Mr Gibb: The Department for Education is committed pupils entered for A levels in each such case; [20232] to providing advice and support to those with an interest (3) how many pupils in further education colleges in Free Schools and to those who are developing proposals. were entered for a psychology A-level in (a) comprehensive In addition to the inquiry services provided by the schools, (b) maintained selective schools and (c) Department, the New Schools Network acts as first independent schools in each year since 1997; and what point of contact for groups and individuals interested proportion this represented of the total number of in setting up a Free School. pupils entered for A levels in each such case; [20233] (4) how many pupils in further education colleges GCE A-level were entered for physics A-level in (a) comprehensive schools, (b) maintained selective schools and (c) Chris Skidmore: To ask the Secretary of State for independent schools in each year since 1997; and what Education (1) how many pupils in further education proportion this represented of the total number of colleges were entered for a modern foreign languages pupils entered for A levels in each such case. [20239] A-level in (a) comprehensive schools, (b) maintained selective schools and (c) independent schools in each Mr Gibb: The information is shown in the following year since 1997; and what proportion this represented tables.

Number and percentage of students in further education who were entered for a modern foreign languages A-level by type of institution Comprehensive schools Maintained selective schools Independent schools Number Percentage Number Percentage Number Percentage

1997 13,436 14.6 4,031 23.8 11,117 30.6 1998 13,022 13.4 3,898 22.2 10,907 29.8 1999 12,374 12.5 3,614 20.4 10,664 29.0 2000 10,897 11.0 3,386 18.9 9,965 28.0 2001 11,080 10.7 3,538 19.3 9,902 28.8 2002 9,695 8.8 3,339 18.3 9,525 29.0 2003 9,257 8.0 3,094 16.4 9,667 28.3 2004 8,984 7.7 3,073 15.9 9,535 27.4 2005 8,897 7.6 3,061 15.3 9,225 27.5 2006 9,609 8.2 3,071 15.3 9,423 27.9 2007 9,814 8.7 3,350 16.2 9,168 27.5 2008 10,318 8.8 3,416 16.1 9,560 27.7 2009 10,184 8.5 3,213 15.2 10,022 28.4 20101 10,839 8.6 3,571 16.2 9,087 25.5 521W Written Answers29 NOVEMBER 2010 Written Answers 522W

Number and percentage of students in further education who were entered for a chemistry A-level by type of institution Comprehensive schools Maintained selective schools Independent schools Number Percentage Number Percentage Number Percentage

1997 14,460 15.7 3,961 23.4 8,703 24.0 1998 14,718 15.2 4,200 23.9 8,996 24.6 1999 14,333 14.5 4,162 23.5 8,833 24.0 2000 14,318 14.4 4,248 23.7 8,521 24.0 2001 13,601 13.1 4,307 23.4 8,326 24.2 2002 13,236 12.0 4,264 23.3 7,922 24.1 2003 12,202 10.6 4,246 22.5 7,788 22.8 2004 12,528 10.7 4,405 22.8 8,185 23.5 2005 13,031 11.2 4,532 22.7 7,980 23.8 2006 13,592 11.7 4,858 24.2 8,072 23.9 2007 13,861 12.3 5,013 24.3 7,850 23.6 2008 14,286 12.2 5,396 25.5 7,966 23.0 2009 14,770 12.3 5,321 25.1 7,968 22.6 20101 16,674 13.3 6,019 27.4 8,078 22.7

Number and percentage of students in further education who were entered for a psychology A-level by type of institution Comprehensive schools Maintained selective schools Independent schools Number Percentage Number Percentage Number Percentage

1997 6,230 6.8 837 4.9 463 1.3 1998 7,782 8.0 1,021 5.8 575 1.6 1999 8,586 8.7 1,168 6.6 595 1.6 2000 9,669 9.8 1,283 7.1 790 2.2 2001 11,109 10.7 1,468 8.0 751 2.2 2002 14,066 12.8 2,034 11.1 1,404 4.3 2003 16,830 14.6 2,702 14.3 2,033 6.0 2004 19,484 16.7 3,113 16.1 2,505 7.2 2005 21,696 18.6 3,585 17.9 2,507 7.5 2006 23,003 19.7 3,883 19.4 2,799 8.3 2007 22,743 20.1 3,890 18.9 2,820 8.5 2008 23,379 20.0 3,948 18.6 3,035 8.8 2009 23,910 19.9 3,821 18.0 3,134 8.9 20101 25,604 20.4 4,264 19.4 3,315 9.3

Number and percentage of students in further education who were entered for a physics A-level by type of institution Comprehensive schools Maintained selective schools Independent schools Number Percentage Number Percentage Number Percentage

1997 12,126 13.2 3,305 19.5 6,454 17.8 1998 12,546 12.9 3,582 20.4 6,648 18.2 1999 12,694 12.8 3,575 20.2 6,734 18.3 2000 12,098 12.2 3,622 20.2 6,467 18.2 2001 12,052 11.6 3,568 19.4 6,455 18.7 2002 12,221 11.1 3,603 19.7 6,190 18.9 2003 11,175 9.7 3,537 18.8 6,143 18.0 2004 10,202 8.7 3,298 17.1 6,037 17.3 2005 10,313 8.9 3,339 16.7 5,469 16.3 2006 9,916 8.5 3,167 15.8 5,651 16.7 2007 9,921 8.8 3,291 16.0 5,423 16.3 2008 10,118 8.7 3,491 16.5 5,627 16.3 2009 10,748 9.0 3,527 16.7 5,796 16.4 20101 11,875 9.5 3,817 17.4 6,144 17.2 1 Figures for 2010 are provisional, all other years are final. Source: Achievement and Attainment Tables (AATs).

Tristram Hunt: To ask the Secretary of State for (3) whether he has made an estimate of the number Education (1) whether he has made an estimate of the of students who re-sat (a) AS and (b) A2 examinations proportion of students who attained A to C grades in (i) 2009 and (ii) 2010 who attained a mark higher overall in A-levels in (a) 2009 and (b) 2010 who had than their original grade; [24627] not re-sat any examination; [24625] (4) whether he has made an estimate of the proportion (2) how many students re-sat (a) AS and (b) A2 of students who attained A to C grades overall in examinations in (i) 2009 and (ii) 2010; [24626] 523W Written Answers29 NOVEMBER 2010 Written Answers 524W

A-levels in (a) 2009 and (b) 2010 who had re-sat (i) one Mr Gibb: The formal grant agreement (not a contract) and (ii) more than one AS examination; [24674] with New Schools Network (NSN), an independent (5) what proportion of students attaining A grades charity, was signed on 8 November 2010. It contains overall in (a) 2009 and (b) 2010 re-sat (i) no appropriate clauses regarding conflicts of interest, examinations, (ii) one A2 examination, (iii) more than performance indicators and the provision of information one A2 examination, (iv) one AS examination and (v) among others, as is usual practice. more than one AS examination; [24676] The Department considered carefully the options for (6) how many students who re-sat more than one (a) securing the requisite services from an external organisation. AS and (b) A2 examination in (i) 2009 and (ii) 2010 Given the need for specialist skills and experience to be achieved a mark higher than that of their original in place quickly, it was decided to award a time-limited grade; [24677] grant to NSN. In doing so the Department took account of the UK Public Procurement Regulations 2006 and (7) how many students who sat (a) AS and (b) A2 the Compact Commissioning Guidance. There have not examinations in (i) 2009 and (ii) 2010 attained higher been any discussions with the Cabinet Office relating to grades overall as a result of re-sitting examinations. this award. [24678] NSN has championed the development of parent Mr Gibb: The information can currently be provided and teacher promoted schools and has been providing only at disproportionate cost. However we are interested advice and support to those interested in establishing in how re-sitting affects results and will be looking to new schools since 2009. It has also been developing assess the impact of recent changes which have reduced networks among interested groups and individuals. This the number of units for most A and AS levels. experience makes it ideally placed to fulfil the role. The Department has given similar grants in the past, such as Music: Finance to the NSPCC, the Holocaust Education Trust, the Specialist Schools and Academies Trust and the Youth Sport Trust. Bob Stewart: To ask the Secretary of State for Education what assessment he has made of the effect Personal, Social, Health and Economic Education of changes in his Department’s funding of the Music Standards Fund on the core grant for (a) the Bromley Mr Amess: To ask the Secretary of State for Education Youth Music Trust and (b) other independent music pursuant to the answer of 4 November 2010, Official councils. [20389] Report, column 920W, on the Children, Schools and Families Act 2010, if he will place in the Library a copy Mr Gibb: The Secretary of State’s recent announcement of each document on each file on Clauses 11 to 14 that of changes to the Music Standards Fund is about the relate to (a) sex education and (b) general PSHE route by which local authorities currently receive funding policy; and if he will make a statement. [23713] for music, not about the funding itself. The review that Darren Henley has been asked to Mr Gibb: Clauses 11 to 14 of the Children, Schools carry out will make recommendations on any new route and Families Act 2010 relate to: by which that funding will be made available. Following Family Proceedings the spending review the Government have protected frontline spending on schools so that we can ensure that 11. Restriction on publication of information relating to family proceedings investment reaches schools directly. We have signalled that we will be cutting back on centrally funded programmes 12. Authorised publication of court orders and judgments but no decisions have yet been made on the level of 13. Authorised news publications funding that will be made available specifically for 14. Permitting publication for purposes of section 13; general music education. None of these clauses refer to sex education or general PSHE policy. New Schools Network Primary Education Lisa Nandy: To ask the Secretary of State for Education (1) for what reasons he decided not to put Nicola Blackwood: To ask the Secretary of State for the contract eventually awarded to the New Schools Education what steps his Department is taking to Network out to competitive tender; [24813] improve Key Stage 1 results. [26386] (2) for what reasons he decided not to develop a formal funding agreement with the New Schools Network Mr Gibb: Too many young children are not achieving in respect of the services it has been contracted to the standards expected in early literacy and numeracy. In order to raise standards we will provide the resources provide; [24814] to support the teaching of systematic synthetic phonics; (3) whether he had discussions with the Minister for introduce a new year 1 phonics screening check to the Cabinet Office on the decisions to (a) award a confirm whether children have acquired the basics of contract to the New Schools Network without phonic decoding and identify those needing additional competitive tendering and (b) not to develop a formal support; and, as part of the review of the National funding agreement with the New Schools Network Curriculum, make sure that children are able to grasp following the award of that contract; [24815] the core arithmetical functions by the time they leave (4) if he will assess the level of independence of the primary school. We are also introducing a pupil premium New Schools Network in respect of its delivery of the to provide extra funding for those schools with the most services he has contracted it to provide. [24816] challenging intakes. 525W Written Answers29 NOVEMBER 2010 Written Answers 526W

Further details of these and additional reforms to role in supporting schools to develop their approaches improve standards are set out in The Importance of to tackling bullying, and supporting the victims of Teaching, Schools White Paper which was published on bullying. 24 November 2010. On Tuesday 9 November I met with eight organisations that have an interest in tackling bullying, to discuss the Primary Education: Curriculum coalition Government’s approach to tackling bullying and to draw on their expertise and experience. They Stephen McPartland: To ask the Secretary of State were the Anti-Bullying Alliance, Diana Award, Schools for Education whether the remit of his Department’s Out, Council for Disabled Children, Mencap, Educational review of the national curriculum in primary schools Action Challenging Homophobia (EACH), Stonewall includes a review of the use of a cross-curricular and Beatbullying. At the end of the meeting, I asked teaching approach; what recent representations he has them to send me their ideas on how together we can received opposing any prohibition on a cross-curricular support schools in tackling bullying. approach; and if he will made a statement. [23730] Pupils: Disadvantaged Mr Gibb: We will be announcing detailed plans for a review of the national curriculum before the end of the year. There are no plans, however, to review the use of a Mrs Hodgson: To ask the Secretary of State for cross-curricular teaching approach. Education whether his proposed pupil premium payment will be paid to schools in addition to any It is not the role of the national curriculum to prescribe funding already allocated to a pupil with a statement of how teachers should teach or how schools should organise special educational need. [22919] their curriculum. We intend to give schools greater freedom over the curriculum by focusing the national curriculum on core knowledge and understanding in Mr Gibb [holding answer 9 November 2010]: The subject disciplines, whilst allowing schools to decide pupil premium will be based on figures from the previous how best to teach and organise their curriculum to January school census for relevant pupils in years from ensure that children acquire that knowledge and reception to year 11, irrespective of whether they have a understanding. statement or not. The grant will be paid to local authorities and they will be required to pass the premium on in its We have received no recent representations opposing entirety to maintained mainstream schools. any prohibition on a cross-curricular approach.

Pupils: Bullying Miss McIntosh: To ask the Secretary of State for Education how his proposed pupil premium will apply in rural areas; and if he will make a statement. [23611] Mr Amess: To ask the Secretary of State for Education what steps he is taking to promote anti-bullying week; Mr Gibb: The pupil premium will operate in all areas and if he will make a statement. [24866] of the country, including rural areas. We are considering the responses to the consultation on school funding Mr Gibb: The annual anti-bullying week presents a which ended on 18 October, including the question of unique opportunity to focus the nation’s attention on which deprivation indicator to use. Once we have selected bullying issues and how to tackle it. During this year’s a deprivation indicator it will be the same across the anti-bullying week, the coalition Government are sending country. key messages to schools, young people and anti-bullying organisations regarding our commitment to tackling all forms of bullying through different mediums. Conor Burns: To ask the Secretary of State for Education how many pupils in Bournemouth West On 12 November 2010 I did an interview with the constituency are expected to receive the pupil premium BBC in conjunction with Beatbullying on how to address in the next 12 months. [23708] bullying in schools. On 17 November 2010, the Deputy Prime Minster met a delegation from Beatbullying, receiving their petition on behalf of the Government. Mr Gibb: We are considering the responses to the He also published a video message on YouTube to consultation on school funding which ended on 18 reinforce the importance of tackling homophobic bullying October, including the question of which deprivation in schools and the wider society. On the same day, the indicator to use. The number of children eligible, either Parliamentary under Secretary of State for Children, in a constituency or in England as a whole, will depend Tim Loughton addressed the Anti-Bullying Alliance on this decision. youth summit on behalf of the Government. Dr Thérèse Coffey: To ask the Secretary of State for Mr Amess: To ask the Secretary of State for Education what assessment he has made of the effect Education what recent representations he has received of his proposed pupil premium on children in (a) on reducing the levels of bullying in schools; what Suffolk Coastal constituency and (b) England. [23962] response his Department provided; and if he will make a statement. [24884] Mr Gibb [holding answer 15 November 2010]: We are considering the responses to the consultation on school Mr Gibb: The Government are committed to tackling funding which ended on 18 October, including the all forms of bullying and want schools to take a zero- question of which deprivation indicator to use. The tolerance approach to tackling bullying in and outside number of children eligible, either in a constituency or the school. Anti-bullying organisations play an invaluable in England as a whole, will depend on this decision. 527W Written Answers29 NOVEMBER 2010 Written Answers 528W

Laura Sandys: To ask the Secretary of State for tables. The information for the 2009/10 academic year Education what assessment he has made of educational will be available after the publication of the Key Stage 2 attainment by pupils eligible for free school meals in and GCSE and Equivalent Attainment by Pupil (a) South Thanet constituency and (b) England. Characteristics Statistical First Releases in December. [24588]

Mr Gibb: The latest available information for the 2008/09 academic year is provided in the following

Percentage of pupils1,2 achieving the expected level in English and Maths, and Reading, Writing and Maths, at Key Stage 2 in 2008/093 Pupils eligible for free school meals Pupils not eligible for free school meals Percentage achieving the Percentage achieving the expected level in Percentage achieving the Percentage achieving the expected level in English Reading, Writing and expected level in English and expected level in Reading, and Mathematics Mathematics Mathematics Writing and Mathematics

South Thanet 41 33 66 57 England 53.6 41.5 75.7 65.4 1 Includes pupils attending maintained schools including CTCs and academies. 2 Overseas pupils are excluded from the parliamentary constituency figures. They are however included in the national figures. 3 Data are final. Source: National Pupil Database Percentage of pupils1,2 achieving 5+ A*-C grades at GCSE or equivalent, and 5+ A*-C grades at GCSE or equivalent including English and Maths GCSEs, 2008/093 Pupils eligible for free school meals Pupils not eligible for free school meals Percentage achieving 5+ Percentage achieving 5+ Percentage achieving 5+ A*-C grades including Percentage achieving 5+ A*-C grades including A*-C grades English and Maths A*-C grades English and Maths

South Thanet 52.5 21.9 77.8 56.0 England 48.9 26.5 72.8 54.3 1 Includes pupils attending maintained schools including CTCs and academies. 2 Overseas pupils are excluded from the parliamentary constituency figures. They are however included in the national figures. 3 Data are final. Source: National Pupil Database

Laura Sandys: To ask the Secretary of State for Mr Gibb: We are considering the responses to the Education what estimate he has made of the effects of consultation on school funding which ended on 18 his proposed pupil premium in (a) South Thanet October, including the question of which deprivation constituency and (b) England. [24595] indicator to use. The number of children eligible, either in a constituency or in England as a whole, will depend Mr Gibb: We have made no assessment of the effect on this decision. of the pupil premium in specific constituencies. We are considering the responses to the consultation on school Amber Rudd: To ask the Secretary of State for Education funding which ended on 18 October, including the what indicators of deprivation apart from free school question of which deprivation indicator to use. We meals his Department uses to measure levels of deprivation expect the effect of introducing the pupil premium for school children; and what the level of deprivation across England to be one of raising the attainment of for school children in (a) Hastings and Rye constituency, those children who are eligible for it. (b) East Sussex and (c) England is according to each of those indicators. [25274] Laura Sandys: To ask the Secretary of State for Education what estimate he has made of the number of Mr Gibb: The Department for Education uses the children in (a) South Thanet constituency and (b) Income Deprivation Affecting Children Index 2007 (IDACI) England who will receive the proposed pupil premium. to measure levels of deprivation alongside the information [24598] the Department collects about free school meal eligibility.

Numbers and percentage of resident pupils1 by IDACI decile Hastings and Rye constituency East Sussex England IDACI decile Number Percentage Number Percentage Number Percentage

0-10% most 227 1.9 2,499 3.9 986,773 13.2 deprived 10-20% 3,041 26.0 6,052 9.4 865,456 11.6 20-30% 1,981 17.0 7,747 12.0 781,074 10.4 30-40% 1,422 12.2 7,397 11.5 729,243 9.8 40-50% 1,351 11.6 7,387 11.5 705,556 9.4 50-60% 775 6.6 6.356 9.9 689,114 9.2 529W Written Answers29 NOVEMBER 2010 Written Answers 530W

Numbers and percentage of resident pupils1 by IDACI decile Hastings and Rye constituency East Sussex England IDACI decile Number Percentage Number Percentage Number Percentage

60-70% 965 8.3 9,441 14.6 678,145 9.1 70-80% 645 5.5 9,915 15.4 684,317 9.2 80-90% 911 7.8 5,119 7.9 684,564 9.2 90-100% least 361 3.1 2,591 4.0 674,252 9.0 deprived 1 Includes solely registered and main registration of dually registered pupils attending maintained primary, secondary, special, non-maintained special, CTCs and academies. Source: School Census January 2010.

Amber Rudd: To ask the Secretary of State for Education We know that boys in particular seem to experience what assessment he has made of the effectiveness of problems with reading and writing and subjects that RAISEonline as an indicator of deprivation; and whether depend most heavily on those skills. Our emphasis on he plans to adopt this mechanism to allocate funds early mastery of the basics, including through systematic through the pupil premium. [25278] synthetic phonics teaching, will give all children a firm foundation on which to build their future learning and Mr Gibb: RAISEonline is an interactive web-based should particularly benefit boys who are struggling. database used by schools to support their school self evaluation—it is a system rather than an indicator. It Pupils: Health does hold some data on pupil characteristics including eligibility for FSM which is one of the options being Stephen McPartland: To ask the Secretary of State considered as a deprivation indicator. for Education what discussions Ministers in his Amber Rudd: To ask the Secretary of State for Education Department have had with ministerial colleagues in the what indicators of deprivation he is considering for use Department of Health on the preparation of guidance as the mechanism for allocating funds through the pupil for schools that clarifies expectations and statutory premium. [25279] responsibilities, including the roles and responsibilities of key staff members, on the management by schools Mr Gibb: The indicators of deprivation being considered of long-term health conditions, such as asthma. [25055] are those set out in the ‘Consultation on school funding 2011-12: Introducing a pupil premium’. They are free Mr Gibb: The Departments of Health and Education school meal eligibility—which could be current eligibility are working together to produce concise guidance about or a measure of whether a pupil is currently or has been the management by schools of long-term health conditions, eligible for FSM; tax credit indicator—pupils in families such as asthma. This aims to clarify expectations and in receipt of out of work tax credit; and Mosaic or statutory responsibilities, and to provide a clear explanation Acorn—commercial packages based on classifications of the roles and responsibilities of key staff members. It of postcodes. will replace the existing guidance: “Managing Medicines Pupils: Electoral Register in Schools and Early YearSettings”, which was published jointly by the Department of Health and the Department Luciana Berger: To ask the Secretary of State for for Education and Skills in 2005. Education whether he plans to take steps to ensure that schools assist all eligible pupils to register to vote. [24077] Resits: Free School Meals Mr Gibb: The Government are keen to promote opportunities for young people to participate in politics, Tristram Hunt: To ask the Secretary of State for but we have no plans to do this via schools. We are Education what the cost to the public purse was of committed to reducing bureaucracy in schools to allow re-sit examinations in the academic year 2009-10; and them to concentrate on their core business, which is to whether he made an estimate of the number of raise standards of attainment. Electoral registration students eligible for free school meals who re-sat officers (EROs) are under a statutory duty to compile examinations in that year. [24675] and maintain comprehensive and accurate electoral registers. Information about registering to vote is available locally Mr Gibb: The Department does not collect this through local authority websites and on the Electoral information. Decisions on re-taking examinations are Commission website at: taken at school level, on academic grounds, by teachers, http://www.aboutmyvote.co.uk/ pupils, and their parents or carers. and on: Schools http://www.direct.gov.uk/ Pupils: Equality Rehman Chishti: To ask the Secretary of State for Conor Burns: To ask the Secretary of State for Education Education if he will issue guidance to schools on his what plans he has to reduce the difference between the priorities for the state sector. [22278] attainment levels of boys and girls in schools. [25289] Mr Gibb: The Schools White Paper, ″The Importance Mr Gibb: We are committed to raising the attainment of Teaching″, published on 24 November, sets out our of all pupils in schools, regardless of their gender, plans to raise educational standards to the levels of the ethnicity and special educational needs. best performing countries and narrow the attainment 531W Written Answers29 NOVEMBER 2010 Written Answers 532W gap between pupils from rich and poor backgrounds. Through investment in BSL courses for interpreters An Education Bill will follow to introduce the legislation and tutors and the development of a new Level 3 needed to make the vision set out in the White Paper a Certificate in Learning Support (Communication Support reality. The Government trust head teachers and want Worker), the I Sign pilot aims to help improve the to give schools the freedom and flexibility to make the educational attainment of deaf and hearing impaired right decisions to deliver high quality education to all pupils by increasing the BSL skills of the workforce for children and young people. This means freeing schools ail those who work with deaf children and families, from excessive central prescription and significantly including those in mainstream settings. reducing the amount of guidance and advice given to Mainstream schools have a duty to use best endeavours schools. We are currently reviewing the thousands of to make the provision that a child’s learning difficulties pages of guidance issued to schools and will remove any requires. We will be publishing a Green Paper on special unnecessary documents. We will also significantly strip educational needs and disabilities which will look at back and consolidate what remains into a small number how to improve families’ experience of the SEN system. of clear, readable and useful guides on key issues. As part of that, we will be looking at how to increase local solutions to better enable localities to develop provision that makes the best use of staff and specialist Schools: Capital Investment resources. The Government value the important contribution Mr Ainsworth: To ask the Secretary of State for from those organisations and individuals working to Education how much funding excluding funding support deaf children and their families and welcome previously allocated to the Building Schools for the their input into how the needs of these children can best Future programme he plans to allocate to rebuilding or be met. The recent National Deaf Children’s Society’s refurbishing (a) primary schools and (b) secondary Hands up for Help! report, as well as contributions schools in (i) England, (ii) the West Midlands and (iii) received during the recent Green Paper call for views, Coventry in each of the next five years. [22785] will be considered in informing the development of the forthcoming Green Paper. Mr Gibb: Decisions about future capital funding including funding for primary and secondary schools will be determined in the light of the capital review Schools: Sports announced by the Secretary of State on 5 July. The capital review team will complete its work by the end of the calendar year. Joan Walley: To ask the Secretary of State for Education with reference to his letter of 20 October In the spending review announcement on 20 October 2010 to the Youth Sport Trust, whether he plans to (a) 2010, the Chancellor announced that DfE capital spending redirect to and (b) ring-fence in school budgets the will be: funding presently allocated to the Youth Sport Trust; what his policy is on the development of school sport; £ billion and if he will make a statement. [22098] 2011-12 4.9 2012-13 4.2 Mr Gibb: The grant currently allocated to the Youth 2013-14 3.3 Sport Trust by the previous Government funds them to 2014-15 3.4 work on a range of policy areas in connection with PE and sport in schools. The Department’s grant funding agreement with the Trust expires at the end of March Schools: Hearing Impairment 2011. In his letter to the Youth Sport Trust of 20 October 2010, the Secretary of State explained that he had no plans to commission further work from the Valerie Vaz: To ask the Secretary of State for Youth Sport Trust in these areas. The money saved will Education (1) what steps he is taking to ensure that not be fed through the Dedicated Schools Grant and deaf children are able to receive high-quality teaching further details on the Coalition Government’s approach in British sign language in mainstream schools; [21148] to school sport will be announced shortly. (2) what steps he is taking to ensure access to This Government’s approach to PE and school sport appropriate learning resources for deaf children differs fundamentally from that of the last Government. attending mainstream schools; [21149] While the network of school sport partnerships has (3) what recent representations he has received on helped schools to increase participation rates in areas the quality and availability of educational support and targeted by the previous Government, the fact remains resources for deaf children. [21150] that the proportion of pupils playing competitive sport regularly has remained disappointingly low. Only around Sarah Teather: High quality teaching is the cornerstone two in every five pupils play competitive sport regularly to improving the educational outcomes for all children. within their own school, and only one in five plays The Government currently sponsor the I Sign project—a regularly against other schools. Through the comprehensive three-year pilot led by the Royal National Institute for spending review, the Secretary of State has ensured that Deaf People and the National Deaf Children’s Society— front line budgets for schools have been protected. The which supports our position of giving parents greater removal of centrally driven, top down programmes will choice by putting in place the British Sign Language mean that schools will have more flexibility to use their (BSL) skills infrastructure necessary to make BSL a funding in areas which they identify as their own priorities. viable option for families. This includes competitive sport. 533W Written Answers29 NOVEMBER 2010 Written Answers 534W

The Coalition Government will encourage more £ competitive sport through the creation of an Olympic-style Local authority 2008-09 2009-10 2010-11 school sport competition. Over the next year, the Department for Education will work closely with the Dorset 2,822,958 2,961,884 3,020,302 Department for Culture, Media and Sport to develop a Dudley 3,031,490 3,029,173 3,023,431 model to take this forward. Durham 4,956,762 4,999,034 5,003,606 Ealing 2,514,411 2,573,209 2,588,967 East Riding of Yorks 2,395,442 2,513,329 2,539,149 Schools: Vocational Guidance East Sussex 3,996,083 4,127,521 4,133,868 Enfield 3,048,524 2,942,302 2,946,685 Essex 10,837,768 10,731,707 10,788,610 Ian Mearns: To ask the Secretary of State for Education Gateshead 1,910,170 2,004,175 2,118,030 how much funding his Department provided to each Gloucestershire 4,846,892 4,601,097 4,288,908 local authority in England for careers and connexions Greenwich 2,868,202 3,009,355 3,168,221 services in (a) 2008-9 and (b) 2009-10 and what equivalent Hackney 2,609,071 2,737,472 2,888,913 expenditure he expects to incur in 2010. [25141] Halton 1,603,374 1,682,281 1,718,540 Hammersmith and 1,475,346 1,547,953 1,592,527 Mr Gibb: Connexions funding is paid to local authorities Fulham as part of the Area Based Grant (ABG). Local authorities Hampshire 9,515,254 9,399,152 9,393,133 are free to use the un-ringfenced ABG as they see fit to Haringey 2,476,065 2,593,898 2,588,100 support the delivery of local, regional and national Harrow 1,879,255 1,874,784 1,846,840 priorities in their areas. The Connexions allocations for Hartlepool 1,113,733 1,168,543 1,284,543 each local authority in 2008-09, 2009-10 and 2010-11 Havering 2,255,523 2,141,141 2,087,035 are shown in the following table: Herefordshire 1,548,216 1,469,703 1,394,246 Hertfordshire 8,576,130 8,141,218 8,184,407

£ Hillingdon 2,863,097 2,717,904 2,588,297 Local authority 2008-09 2009-10 2010-11 Hounslow 2,295,067 2,289,625 2,275,528 Hull 3,220,085 3,376,466 3,363,553 Barking and 2,135,835 2,240,946 2,307,413 Isle of Wight 1,304,907 1,332,546 1,332,634 Dagenham Isles of Scilly 25,000 25,000 25,000 Barnet 2,859,769 2,714,745 2,620,723 Islington 2,092,847 2,195,843 2,413,822 Barnsley 2,205,107 2,313,628 2,543,299 Kensington and 1,793,254 1,702,315 1,531,065 Bath and North East 1,403,928 1,370,345 1,363,043 Chelsea Somerset Kent 11,537,262 11,796,670 11,836,047 Bedfordshire1 3,505,688 — — Kingston Upon 1,187,361 1,146,488 1,127,058 Bedford borough — 1,465,059 1,462,201 Thames Central Bedfordshire — 1,965,163 1,976,288 Kirklees 3,752,250 3,936,910 3,960,221 Bexley 2,258,109 2,224,658 2,241,851 Knowsley 1,996,839 2,095,110 2,303,089 Birmingham 11,598,496 11,054,022 11,041,218 Lambeth 2,439,164 2,527,658 2,540,147 Blackburn with 1,897,017 1,944,424 1,942,646 Lancashire 9,332,495 9,692,878 9,695,711 Darwen Leeds 6,985,015 6,630,791 6,529,176 Blackpool 1,847,217 1,837,938 1,827,692 Leicester (City) 4,361,000 4,139,845 3,723,384 Bolton 2,951,714 3,096,977 3,126,891 Leicestershire 4,231,167 4,439,395 4,471,790 Bournemouth 1,322,610 1,387,700 1,417,809 Lewisham 2,859,414 2,786,385 2,787,305 Bracknell Forest 1,248,546 1,185,230 1,065,998 Lincolnshire 5,542,404 5,261,338 5,264,350 Bradford 4,999,312 5,231,922 5,261,420 Liverpool 5,619,996 5,366,083 5,333,680 Brent 2,601,070 2,483,963 2,469,858 Luton 2,034,424 2,134,545 2,153,194 Brighton and Hove 2,180,983 2,189,813 2,167,918 Manchester 5,480,855 5,202,910 5,121,423 Bristol 3,576,383 3,484,002 3,447,371 Medway 2,333,652 2,448,498 2,550,283 Bromley 2,499,349 2,403,908 2,408,810 Merton 1,628,829 1,546,228 1,473,135 Buckinghamshire 3,784,634 3,592,708 3,455,960 Middlesbrough 1,883,863 1,976,574 2,133,493 Bury 1,656,126 1,737,629 1,887,805 Milton Keynes 2,326,563 2,240,110 2,246,998 Calderdale 2,073,434 2,046,741 2,057,580 Newcastle upon Tyne 3,041,855 3,000,199 2,973,710 Cambridgeshire 4,536,860 4,306,787 4,066,514 Newham 3,395,303 3,471,609 3,472,979 Camden 1,925,970 2,020,753 2,079,846 Norfolk 6,969,810 6,616,357 6,389,342 Cheshire1 5,350,028 — — North East 1,845,876 1,936,718 2,070,292 Cheshire East — 2,490,744 2,504,255 Lincolnshire Cheshire West and — 2,738,198 2,739,897 North Lincolnshire 1,558,786 1,635,499 1,721,465 Chester North Somerset 1,466,477 1,538,647 1,558,615 City of London 217,476 228,178 250,829 North Tyneside 1,881,708 1,974,312 1,986,382 Cornwall 3,965,389 4,123,537 4,120,511 North Yorkshire 4,474,612 4,247,696 4,216,686 Coventry 3,342,950 3,173,422 3,158,928 Croydon 3,205,064 3,209,614 3,211,589 Northamptonshire 6,173,383 5,860,319 5,648,861 Cumbria 4,442,949 4,217,638 4,093,511 Northumberland 3,190,975 3,029,154 2,813,002 Darlington 995,950 1,044,964 1,148,696 Nottingham (City) 3,319,723 3,162,497 3,128,087 Derby (City) 2,364,299 2,453,271 2,458,612 Nottinghamshire 6,639,216 6,302,528 6,257,359 Derbyshire 6,058,264 5,906,203 5,955,901 Oldham 2,486,158 2,608,510 2,685,121 Devon 5,387,090 5,220,313 5,227,787 Oxfordshire 4,913,800 4,669,339 4,657,858 Doncaster 3,134,965 3,289,247 3,347,957 Peterborough 1,788,971 1,877,012 1,962,997 535W Written Answers29 NOVEMBER 2010 Written Answers 536W

£ £ Local authority 2008-09 2009-10 2010-11 Local authority 2008-09 2009-10 2010-11

Plymouth 2,353,042 2,468,127 2,449,832 West Berkshire 1,214,237 1,273,993 1,390,903 Poole 1,183,921 1,189,791 1,173,789 West Sussex 5,704,250 5,445,474 5,477,332 Portsmouth 1,845,179 1,928,417 1,920,840 Westminster 2,238,826 2,125,291 1,911,490 Reading 1,216,312 1,276,171 1,321,260 Wigan 3,120,097 3,273,647 3,298,656 Redbridge 2,181,020 2,167,227 2,172,357 Wiltshire 3,423,148 3,342,973 3,371,102 Redcar and Cleveland 1,712,832 1,797,126 1,825,497 Windsor and 1,193,378 1,166,154 1,159,487 Richmond upon 1,323,865 1,256,730 1,163,227 Maidenhead Thames Wirral 3,689,000 3,501,924 3,299,236 Rochdale 2,264,862 2,376,323 2,506,746 Wokingham 1,236,931 1,174,204 1,136,637 Rotherham 2,749,965 2,885,300 3,101,497 Wolverhampton 2,619,554 2,748,470 2,890,404 Rutland 269,331 282,585 310,637 Worcestershire 4,406,206 4,263,443 4,268,515 Salford 2,504,047 2,581,857 2,576,179 York 1,391,800 1,418,001 1,396,446 Sandwell 3,396,071 3,558,512 3,577,380 Total England 468,732,000 466,732,000 466,732,000 Sefton 2,883,000 2,804,102 2,797,167 1 From 1 April 2009 four new local authorities were created: Bedfordshire LA Sheffield 4,801,931 4,955,465 4,957,247 split into Bedford borough and Central Bedfordshire and Cheshire LA split into Cheshire East and Cheshire West and Chester. Shropshire 2,328,714 2,216,296 2,202,159 Slough 1,206,360 1,265,729 1,285,588 Solihull 2,127,535 2,089,791 2,093,279 Alison McGovern: To ask the Secretary of State for Somerset 4,302,492 4,084,304 3,960,444 Education whether he plans to allocate funding to local South Gloucestershire 2,127,551 2,019,659 2,011,391 authorities to wind up the careers and connexions South Tyneside 1,820,008 1,873,976 1,875,510 services, including for any necessary redundancy [25388] Southampton 2,010,141 2,109,067 2,185.394 payments. Southend on Sea 1,500,644 1,574,496 1,636,062 Southwark 3,179,484 3,161,844 3,178,853 Mr Gibb: Funding allocations for the next spending St Helens 2,079,205 2,090,147 2,089,913 review period have not yet been determined. Any changes Staffordshire 6,737,879 6,744,172 6,737,109 that may be necessary in local service provision as a Stockport 2,390,783 2,508,441 2,520,061 result of the establishment of the all-age careers service Stockton on Tees 1,932,205 2,027,295 2,065,879 will be for local authorities to work through, involving, Stoke on Trent 2,761,049 2,896,929 3,080,460 where appropriate, Connexions service providers. We Suffolk 5,776,012 5,508,235 5,531,601 will work with local authorities and with contracted Sunderland 3,340,512 3,333,282 3,336,564 Connexions service providers to support them over the Surrey 8,628,887 8,191,299 7,367,269 transition period as we move to establish an all-age Sutton 1,602,425 1,654,444 1,660,234 careers service. Swindon 1,844,348 1,846,214 1,847,666 Tameside 2,375,322 2,492,219 2,499,106 Science: GCSE Telford and Wrekin 1,773,089 1,798,599 1,803,889 Thurrock 1,453,580 1,525,116 1,657,326 Torbay 1,148,857 1,205,396 1,300,057 Julian Smith: To ask the Secretary of State for Education Tower Hamlets 2,716,974 2,850,684 3,133,669 how many and what proportion of pupils in (a) Skipton Trafford 1,819,698 1,886,908 1,892,281 and Ripon constituency, (b) North Yorkshire and (c) Wakefield 3,277,829 3,386,663 3,399,169 England were entered for (i) chemistry, (ii) physics and Walsall 2,919,640 3,061,227 3,068,488 (iii) biology as separate subjects at (A) GCSE and (B) Waltham Forest 2,434,491 2,457,014 2,459,481 A-level in each of the last five academic years. [17232] Wandsworth 2,166,382 2,168,526 2,153,211 Warrington 1,720,152 1,754,915 1,767,568 Mr Gibb: The information requested is given in the Warwickshire 4,220,230 4,105,983 4,098,631 following tables:

Number and percentage of pupils in the Skipton and Ripon constituency who were entered for selected subjects in GCSE and A level for the period 2006-10 Biology Chemistry Physics % (of those at % (of those at end of % (of those at end of end of KS4 or Qualification Number KS4or KS5) Number KS4or KS5) Number KS5)

GCSE 2006 228 20.5 228 20.5 229 20.6 2007 230 20.1 229 20.0 230 20.1 2008 344 29.2 343 29.1 343 29.1 2009 374 31.5 370 31.1 370 31.1 2010 n/a n/a n/a n/a n/a n/a

A level 2006 102 14.6 117 16.8 62 8.9 2007 114 15.5 136 18.5 70 9.5 2008 128 16.9 127 16.8 70 9.2 2009 126 15.9 130 16.5 75 9.5 537W Written Answers29 NOVEMBER 2010 Written Answers 538W

Number and percentage of pupils in the Skipton and Ripon constituency who were entered for selected subjects in GCSE and A level for the period 2006-10 Biology Chemistry Physics % (of those at % (of those at end of % (of those at end of end of KS4 or Qualification Number KS4or KS5) Number KS4or KS5) Number KS5)

2010 n/a n/a n/a n/a n/a n/a Source: Achievement and Attainment Tables (AATs)

2010 constituency data are not available as school level data have not yet been published.

Number and percentage of pupils in North Yorkshire who were entered for selected subjects in GCSE and A level for the period 2006-101 Biology Chemistry Physics % (of those at % (of those at end of % (of those at end of end of KS4or Qualification Number KS4or KS5) Number KS4or KS5) Number KS5)

GCSE 2006 581 7.9 580 7.9 581 7.9 2007 576 7.9 575 7.9 577 7.9 2008 858 11.7 838 11.4 836 11.4 2009 986 14.1 954 13.6 947 13.5 20101 1,269 18.3 1,273 18.3 1,274 18.4

A level 2006 583 16.6 444 12.6 317 9.0 2007 644 17.8 490 13.5 291 8.0 2008 594 16.4 437 12.1 356 9.8 2009 593 15.6 496 13.0 341 8.9 20101 680 17.1 493 12.4 362 9.1 Source: Achievement and Attainment Tables (AATs) Number and percentage of pupils in England (maintained sector) who were entered for selected subjects in GCSE and A level for the period 2006-101 Biology Chemistry Physics % (of those at end of % (of those at end of % (of those at end Qualification Number KS4or KS5) Number KS4or KS5) Number of KS4or KS5)

GCSE 2006 35,441 6.0 34,598 5.8 34,281 5.8 2007 38,049 6.4 36,771 6.1 36,598 6.1 2008 58,614 9.8 53,839 9.0 53,309 8.9 2009 72,125 12.5 67,819 11.8 67,713 11.7 20101 99,762 17.3 96,241 16.7 96,220 16.7

A level 2006 37,698 13.6 26,323 9.5 17,928 6.5 2007 38,278 13.6 27,227 9.6 18,464 6.5 2008 39,835 13.5 28,342 9.6 18,925 6.4 2009 39,530 12.5 29,173 9.3 19,824 6.3 20101 43,883 12.6 32,299 9.3 21,646 6.2 1 2010 data for North Yorkshire and England are provisional. Source: Achievement and Attainment Tables (AATs).

The GCSE figures relate to pupils at the end of key were entered for three separate GCSEs in physics, stage 4 in maintained schools only. chemistry and biology in each local authority in 2009. The A level figures relate to students at the end of [24241] advanced level of study in maintained schools and FE colleges. Chris Skidmore: To ask the Secretary of State for Mr Gibb: The requested information is shown in the Education how many and what proportion of pupils following table.

Number and percentage of pupils at the end of key stage 4 who were entered for three separate GCSEs in physics, chemistry and biology in each local authority in 2009 2009 Number of pupils entered for GCSEs in Percentage of pupils entered for GCSEs in physics, chemistry and biology Number of pupils at the end of key stage 4 physics, chemistry and biology

Total (maintained sector) 66,386 576,421 11.5 539W Written Answers29 NOVEMBER 2010 Written Answers 540W

Number and percentage of pupils at the end of key stage 4 who were entered for three separate GCSEs in physics, chemistry and biology in each local authority in 2009 2009 Number of pupils entered for GCSEs in Percentage of pupils entered for GCSEs in physics, chemistry and biology Number of pupils at the end of key stage 4 physics, chemistry and biology

North East 3,209 30,670 10.5 Darlington 113 1,188 9.5 Durham 256 5,740 4.5 Gateshead 240 2,160 11.1 Hartlepool 51 1,244 4.1 Middlesbrough 187 1,741 10.7% Newcastle upon Tyne 275 2,725 10.1 North Tyneside 231 2,290 10.1 Northumberland 809 3,800 21.3 Redcar and Cleveland 265 1,914 13.8 South Tyneside 137 1,913 7.2 Stockton-on-Tees 157 2,430 6.5 Sunderland 488 3,525 13.8

North West 8,437 83,352 10.1 Blackburn with Darwen 60 1,803 3.3 Blackpool 57 1,648 3.5 Bolton 601 3,611 16.6 Bury 169 2,221 7.6 Cheshire East 479 4,013 11.9 Cheshire West and Chester 454 3,979 11.4 Cumbria 730 6,077 12.0 Halton 120 1,542 7.8 Knowsley 20 1,645 1.2 Lancashire 1,660 13,657 12.2 Liverpool 542 5,357 10.1 Manchester 243 4,685 5.2 Oldham 289 3,036 9.5 Rochdale 20 2,612 0.8 Salford 148 2,347 6.3 Sefton 225 3,537 6.4 St. Helens 114 2,156 5.3 Stockport 346 3,041 11.4 Tameside 215 2,994 7.2 Trafford 576 2,895 19.9 Warrington 271 2,570 10.5 Wigan 264 3,929 6.7 Wirral 834 3,997 20.9

Yorkshire & Humber 6,036 60,857 9.9 Barnsley 148 2,642 5.6 Bradford 386 5,876 6.6 Calderdale 248 2,630 9.4 Doncaster 339 3,681 9.2 East Riding of Yorkshire 463 4,015 11.5 Kingston upon Hull, City 86 2,914 3.0 of Kirklees 486 4,708 10.3 Leeds 999 8,272 12.1 North East Lincolnshire 152 1,955 7.8 North Lincolnshire 172 2,030 8.5 North Yorkshire 940 6,990 13.4 Rotherham 376 3,676 10.2 Sheffield 687 5,740 12.0 Wakefield 363 4,014 9.0 York 191 1,714 11.1

East Midlands 6,028 51,663 11.7 Derby 350 2,862 12.2 Derbyshire 994 8,909 11.2 Leicester 255 3,496 7.3 Leicestershire 829 7,391 11.2 541W Written Answers29 NOVEMBER 2010 Written Answers 542W

Number and percentage of pupils at the end of key stage 4 who were entered for three separate GCSEs in physics, chemistry and biology in each local authority in 2009 2009 Number of pupils entered for GCSEs in Percentage of pupils entered for GCSEs in physics, chemistry and biology Number of pupils at the end of key stage 4 physics, chemistry and biology

Lincolnshire 1,185 8,473 14.0 Northamptonshire 1,122 8,027 14.0 Nottingham 214 2,788 7.7 Nottinghamshire 1,011 9,243 10.9 Rutland 68 474 14.3

West Midlands 6,683 64,883 10.3 Birmingham 1,617 12,292 13.2 Coventry 163 3,534 4.6 Dudley 162 3,965 4.1 Herefordshire 214 1,920 11.1 Sandwell 122 3,615 3.4 Shropshire 230 3,214 7.2 Solihull 403 3,074 13.1 Staffordshire 1,112 9,853 11.3 Stoke-on-Trent 260 2,720 9.6 Telford and Wrekin 316 2,115 14.9 Walsall 460 3,710 12.4 Warwickshire 927 5,942 15.6 Wolverhampton 267 2,742 9.7 Worcestershire 430 6,187 7.0

East of England 8,334 65,171 12.8 Bedford 174 1,859 9.4 Cambridgeshire 1,118 5,843 19.1 Central Bedfordshire 263 2,867 9.2 Essex 2,322 16,136 14.4 Hertfordshire 1,957 13,000 15.1 Luton 169 2,410 7.0 Norfolk 860 8,922 9.6 Peterborough 264 2,287 11.5 Southend-on-Sea 245 2,203 11.1 Suffolk 850 7,772 10.9 Thurrock 112 1,872 6.0

London 27,659 219,825 12.6 Inner London 2,293 22,960 10.0 Camden 157 1,442 10.9 Hackney 83 1,346 6.2 Hammersmith and Fulham 198 1,051 18.8 Haringey 249 2,160 11.5 Islington 33 1,414 2.3 Kensington and Chelsea 0 569 0.0 Lambeth 228 1,560 14.6 Lewisham 282 2,136 13.2 Newham 111 3,401 3.3 Southwark 191 2,366 8.1 Tower Hamlets 246 2,353 10.5 Wandsworth 431 1,854 23.2 Westminster 84 1,308 6.4

Outer London 6,010 50,761 11.8 Barking and Dagenham 176 2,044 8.6 Barnet 392 3,236 12.1 Bexley 385 3,187 12.1 Brent 449 2,793 16.1 Bromley 535 3,509 15.2 Croydon 269 3,651 7.4 Ealing 276 2,793 9.9 Enfield 249 3,622 6.9 Greenwich 130 2,415 5.4 543W Written Answers29 NOVEMBER 2010 Written Answers 544W

Number and percentage of pupils at the end of key stage 4 who were entered for three separate GCSEs in physics, chemistry and biology in each local authority in 2009 2009 Number of pupils entered for GCSEs in Percentage of pupils entered for GCSEs in physics, chemistry and biology Number of pupils at the end of key stage 4 physics, chemistry and biology

Harrow 212 2,155 9.8 Havering 179 3,024 5.9 Hillingdon 359 2,919 12.3 Hounslow 234 2,542 9.2 Kingston upon Thames 333 1,487 22.4 Merton 197 1,561 12.6 Redbridge 512 3,241 15.8 Richmond upon Thames 195 1,407 13.9 Sutton 826 2,595 31.8 Waltham Forest 102 2,580 4.0

South East 12,344 89,497 13.8 Bracknell Forest 62 1,112 5.6 Brighton and Hove 124 2,289 5.4 Buckinghamshire 1,523 5,584 27.3 East Sussex 753 5,197 14.5 Hampshire 1,917 14,084 13.6 Isle of Wight 187 1,513 12.4 Kent 2,605 16,698 15.6 Medway 318 3,385 9.4 Milton Keynes 276 2,642 10.4 Oxfordshire 754 6,309 12.0 Portsmouth 128 1,993 6.4 Reading 252 958 26.3 Slough 191 1,488 12.8 Southampton 177 2,257 7.8 Surrey 1,516 10,511 14.4 West Berkshire 236 2,000 11.8 West Sussex 767 8,230 9.3 Windsor and Maidenhead 313 1,542 20.3 Wokingham 245 1,705 14.4

South West 7,012 56,607 12.4 Isles of Scilly 1—151— Bath and North East 342 2,172 15.7 Somerset Bournemouth 346 1,780 19.4 Bristol, City of 304 3,131 9.7 Cornwall 682 5,987 11.4 Devon 743 7,704 9.6 Dorset 746 4,366 17.1 Gloucestershire 1,134 6,882 16.5 North Somerset 260 2,265 11.5 Plymouth 332 2,966 11.2 Poole 329 1,684 19.5 Somerset 445 5,688 7.8 South Gloucestershire 425 3,107 13.7 Swindon 180 2,259 8.0 Torbay 1— 1,518 1— Wiltshire 739 5,083 14.5 1 Figures suppressed due to small numbers.

Specialised Diplomas removing the entitlement, removing the requirement for schools and colleges to be in consortia and removing the need for schools and colleges to go through the Lisa Nandy: To ask the Secretary of State for time-consuming Diploma Gateway process. Education what his Department’s policy is on the 14 to 19 diploma. [24761] Working with Ofqual and the awarding organisations, we are now planning to reform the Diploma further to Mr Gibb: We are firmly committed to freeing schools make it simpler to teach and award so that it can take its and colleges from centralised control and reducing place alongside other qualifications, without the need bureaucratic burdens. We have already made a number for additional support. This is part of our commitment of changes to make it easier to offer the Diploma— to improve vocational education, and we will consider 545W Written Answers29 NOVEMBER 2010 Written Answers 546W any decision on the reform of the Diploma in the light area. The duty applies in relation to children of compulsory of Professor Wolf’s review of vocational education, school age who are not on a school roll, and who are which we expect in the spring. not receiving a suitable education otherwise than being at school (for example, being educated at home, privately Specialist Schools educated or in alternative provision). It is important that schools and local authorities Karen Lumley: To ask the Secretary of State for implement the systems and regulations and follow the Education what plans his Department has for future guidance in place around keeping registers, excluding funding of specialist schools. [22235] pupils and removing pupils from the school roll. Schools must fulfil their requirement to inform local authorities Mr Gibb: Funding for specialist schools, including when pupils are deleted from the school roll or have for High Performing Specialist Schools (HPSS), will be ″disappeared″ following 10 days unauthorised absence mainstreamed from April 2011. This funding, approximately from the school. Notifying the local authority is important £450 million for 2010-11, is not being removed from the because the local authority can then attempt to trace schools system and will continue to be routed to schools the children and ensure that any pupils that are removed through the Dedicated Schools Grant. All schools will from the roll of a school are receiving a suitable education. be free to decide how to develop specialisms in the light of the total resources available to them. Wines Technology: Teachers

Dr Pugh: To ask the Secretary of State for Education Matthew Hancock: To ask the Secretary of State for what steps his Department is taking to increase the Education how much his Department and its number of (a) specialist technology teachers and (b) predecessors spent on wine in each year since 1997. primary class teachers with technology training. [24172] [12829]

Mr Gibb: The Department has several strategies in Tim Loughton: The accounting systems of the place to increase the number of specialist design and Department and its predecessors do not record information technology teachers. Training bursaries of £9,000 are separately on this type of expenditure and it could be available to people taking up postgraduate Initial Teacher obtained only at disproportionate cost. Training (ITT) places for design and technology as this Any expenditure on wine is made in accordance with is one of the shortage subjects. In addition, the Specialist published departmental guidance on financial procedures Schools and Academies Trust (SSAT) are funded to and propriety, based on principles set out in Managing train 400 existing teachers by March 2011 in teaching Public Money and the Treasury handbook on Regularity practical cooking within the design and technology and Propriety. curriculum. Many of these teachers are not existing design and technology teachers. The Department also funds continuing professional Work Experience development for secondary design and technology teachers to improve their subject specific knowledge and keep Rehman Chishti: To ask the Secretary of State for them up to date with latest developments. Education whether his Department plans to review its The latest vacancy rate for design and technology policy on work experience provision for secondary posts (at 0.4%) is slightly below the rate for all subjects school students. [25064] (at 0.5%) in 2010. A snapshot in 2010 showed that there were 50 advertised vacancies for full-time design and Mr Gibb: We currently have no plans to review the technology permanent appointments or appointments policy on work experience provision for secondary school of at least one term’s duration. students. We do not collect information centrally on the number of primary class teachers with technology training. Youth Services: Manpower Travellers: Education

Bill Esterson: To ask the Secretary of State for Toby Perkins: To ask the Secretary of State for Education what estimate his Department has of the Education how many Joint Negotiating Committee- number of children in Gypsy, Roma and Traveller of qualified full-time youth workers are employed in each Irish Heritage communities who are not in full-time local authority. [21379] education; and what steps his Department plans to take to ensure that all children in such communities Tim Loughton: The Department for Education does receive full-time education. [25395] not collect this data. However, the Children’s Workforce Development Council (CWDC) published an audit of Mr Gibb [holding answer 19 November 2010]: We do the workforce in December 2009 and this includes some not have information about the number of children who national level estimates of the numbers of youth and are not in full-time education. community workers. The report is available on CWDC’s Local authorities in England and Wales have had, website at: since February 2007, a statutory duty to make arrangements http://www.cwdcouncil.org.uk/young-peoples-workforce/ to identify all children missing from education in their state-of-the-young-peoples-workforce-report 547W Written Answers29 NOVEMBER 2010 Written Answers 548W

ENERGY AND CLIMATE CHANGE (b) Feed-in tariffs The FITs scheme will be subject to periodic review which will EU Emissions Trading Scheme include consideration of the eligibility of different technologies. We are continually collecting data which, as we learn more, will be fed into the review process. John Stevenson: To ask the Secretary of State for (c) Renewables obligation (RO) Energy and Climate Change what assessment he has made of the effectiveness of the rules in the European Bioliquids are currently supported in the RO but are not grandfathered. We recognise there are potential benefits from Union Emissions Trading Scheme which make provision grandfathering some waste derived bioliquids and are considering for allowances to be retained during temporary closure how we might do this. This is being fed into the work currently or pending rationalisation in taking account of changes under way on the RO banding review. in the economic situation in respect of (a) trading and (b) availability of finance. [25408]

Gregory Barker: The temporary closure and FOREIGN AND COMMONWEALTH OFFICE rationalisation rules of the EU Emissions Trading System (EU ETS) are intended to incentivise industry to maintain Afghanistan: Children production at their most efficient installations. The provision to retain full allocation during periods where Mr Winnick: To ask the Secretary of State for Foreign a company is rationalising production or temporally and Commonwealth Affairs what discussions he has shutting down production provides flexibility for companies had with the NATO Civilian Representative in Afghanistan to move their allocation to the sites that are still at full on the Representative’s assessment of the safety of production in order to meet their compliance needs. children in (a) Kabul and (b) London. [26888] Companies can also sell their allowances in order to raise finance in response to the economic situation. Alistair Burt: I have not discussed the North Atlantic The EU ETS Directive was amended in 2009 for Treaty Organisation (NATO) senior civilian representative’s phase III (which runs from 2013-20). The rules for assessment of the situation of children in Kabul and closures are currently being discussed in Europe, but London with him. The situations in London and Kabul there will be rules which cover significant capacity are very different. While we are making progress in reductions, partial and full cessation of activities to Afghanistan and Kabul has seen a reduction in crime ensure that installations do not benefit from continued and violent incidents, clearly there is more work to be free allocation when they are not carrying out an EU done to ensure progress continues in improving the ETS activity. security environment for all Afghans, including children.

Renewable Energy: Heating Afghanistan: Christianity

Ann Coffey: To ask the Secretary of State for Energy Mr Clappison: To ask the Secretary of State for and Climate Change what recent assessment he has Foreign and Commonwealth Affairs what recent reports made of the effects of sustainable bioliquids in providing he has received on the treatment of Christians in renewable heat under the Renewable Heat Incentive. Afghanistan; and if he will make a statement. [26367] [26467] Alistair Burt: We are aware of recent reports concerning Charles Hendry: As part of the spending review Christian converts from Islam. Our embassy in Kabul is process we have looked at the Renewable Heat Incentive monitoring these events closely. scheme to target the scheme more effectively. The details The Government strongly support the right to freedom of the scheme, including decisions on sustainable waste of religion or belief. We are working to support all derived bioliquids, will be announced shortly. individuals who face discrimination and persecution on the basis of religion, including Christians, wherever Ann Coffey: To ask the Secretary of State for Energy they are in the world. Article Two of the Afghan and Climate Change if he will assess methods by which constitution provides for freedom of religion, and we sustainable waste derived bioliquids could be included expect the Afghan Government to fully implement this. in (a) the renewable heat incentive scheme and (b) The international community have a regular dialogue feed-in tariffs grandfathered under the renewables with the Afghan Government on human rights, including obligation. [26468] on the need to ensure the security of all Afghans, regardless of religion. Charles Hendry: The Department is responsible for Afghanistan: Police three renewable financial incentives: the renewable heat incentive (RHI), the feed in tariff (FIT) for small scale electricity and the renewables obligation (RO) for large Yvette Cooper: To ask the Secretary of State for scale electricity. Taking each of these incentives in turn, Foreign and Commonwealth Affairs (1) how many the position of sustainable waste derived bioliquids is as Afghan National Police officers have been recruited in follows: 2010; [27447] (a) Renewable heat incentive (2) how many Afghan National Police officers recruited in 2010 have left that police force; [27448] The details of the renewable heat incentive (RHI) scheme, including decisions on sustainable waste derived bioliquids, will (3) what his most recent estimate is of the number of be announced shortly. officers in the Afghan National Police. [27449] 549W Written Answers29 NOVEMBER 2010 Written Answers 550W

Mr Hague: An estimated 31,343 Afghan National Further information can be obtained from the Director Police (ANP) officers have been recruited by the North of the MRCU, Dr William D Petrie, who can be contacted Atlantic Treaty Organisation (NATO) Training Mission at: Afghanistan (NTM-A) between January and October [email protected]. 2010. ANP attrition has been decreasing over time and is currently at approximately 18% per annum, with Zac Goldsmith: To ask the Secretary of State for monthly attrition at 1.5%. There are no specific data Foreign and Commonwealth Affairs whether his available on the number of ANP officers who were Department was notified prior to (a) shipments by recruited in 2010 and have subsequently left the force. Oxitec of genetically-modified mosquito eggs to Grand The total strength of the Afghan National Police (ANP) Cayman for use and (b) the release of such mosquitos stood at 116,367 in October 2010. The growth target of in experimental trials in 2009 and 2010. [26348] 109,000 by October 2010 has been exceeded, and a number of initiatives to encourage more effective Mr Bellingham: Responsibility for environmental matters recruitment have been implemented, including tripling is devolved to the Government of the Cayman Islands. the number of recruiters, setting up a Recruiting Command My Department was not therefore notified in advance and setting up mobile sub-recruiting stations. of the shipments of genetically-modified mosquito eggs nor the release of such mosquitoes in experimental Auschwitz Restoration Project trials in the Cayman Islands. Further information about this subject can be obtained Mike Freer: To ask the Secretary of State for Foreign from Dr William D Petrie, Director of the Mosquito and Commonwealth Affairs what plans he has to Research and Control Unit (MRCU), at: provide funding to the Auschwitz restoration project. [email protected]. [25640] Colombia: Homicide

Mr Bellingham: The Auschwitz-Birkenau Foundation Jim McGovern: To ask the Secretary of State for has been speaking to a number of countries and a Foreign and Commonwealth Affairs pursuant to the significant amount has already been pledged. The answer of 8 November 2010, Official Report, column Government support the long term preservation of 85W, what information his Department holds on the Auschwitz-Birkenau and other historic sites. Ministers number of trade unionists assassinated in Colombia in are currently considering how support might be offered 2010. [26324] and intend to make a decision shortly. Mr Lidington: The only figures the Department holds Bahrain: Foreign Relations on the number of trade unionists killed in 2010 are the official figures referred to in the answer given by the Conor Burns: To ask the Secretary of State for Foreign Minister of State, Foreign and Commonwealth Office, and Commonwealth Affairs what plans he has to mark the Member for Taunton Deane (Mr Browne) to the the 40th anniversary of the UK-Bahrain Treaty of hon. Member on 8 November 2010, Official Report, Friendship. [26381] column 85W. Since that answer we have received an update from the Colombian authorities to cover the Alistair Burt: The 40th anniversary of the 1971 Treaty period from January to October which suggests 25 trade of Friendship will be an important milestone in our unionists were killed. bilateral relationship with Bahrain. We look forward to Mrs Hodgson: To ask the Secretary of State for celebrating the anniversary together, both in the UK Foreign and Commonwealth Affairs what representations and in Bahrain. In the context of the Gulf Initiative and he has made to the Colombian government on the the launch of the UK-Bahrain Joint Steering Committee, recent killing of Elizabeth Silva Aguilar. [27377] our Ministers will be keen to contribute to celebrations. Mr Lidington: We have not to date made any Cayman Islands: Genetically Modified Organisms representations to the Colombian Government over the killing of Elizabeth Silva Aguilar since there remains Zac Goldsmith: To ask the Secretary of State for some uncertainty about the facts. Foreign and Commonwealth Affairs whether his Our embassy in Bogota is aware of this case and will Department (a) had discussions with Oxitec prior to raise the matter with the Colombian authorities should and (b) holds information on the (i) consent procedures it prove necessary. in place for and (ii) environmental impact assessment of the experimental release of genetically-modified mosquitoes Mrs Hodgson: To ask the Secretary of State for in Grand Cayman in 2009 and 2010. [26347] Foreign and Commonwealth Affairs what recent reports he has received of military involvement in the deaths of Mr Bellingham: Responsibility for environmental affairs children in Caqueta province, Colombia. [27378] is devolved to the Government of the Cayman Islands. My Department did not therefore have discussions with Mr Lidington: On 5 November 2010 a three-year-old the parties concerned. boy was allegedly shot dead during a confrontation However, the Mosquito Research and Control Unit between the Colombian Army and guerrillas from the (MRCU) in Grand Cayman has confirmed that it is Revolutionary Armed Forces of Colombia (FARC). working in collaboration with Oxitec; that it provided a The Colombian Minister for Defence, Rodrigo Rivera, risk analysis and an environmental impact assessment; issued a statement regretting the child’s death and confirmed and that it complied with regulatory procedures provided that the incident was being investigated by both the for in local legislation. Attorney-General’s Office and the armed forces. 551W Written Answers29 NOVEMBER 2010 Written Answers 552W

Colombia: Military Aid These are by far the greatest beneficiaries of FCO grants. Smaller grants have also been made to project Jim McGovern: To ask the Secretary of State for implementers and other organisations around the world Foreign and Commonwealth Affairs (1) pursuant to the to help deliver UK foreign policy objectives. Budgets in answer of 4 November 2010, Official Report, column 913W, the FCO are devolved to over 260 posts and details of whether the dismissed military personnel had previously these payments are not held centrally. As a result, this participated in British military or counternarcotics assistance information could be obtained only at disproportionate programmes in Colombia; [26323] cost. (2) pursuant to the answer of 8 November 2010, In 2011-12, the FCO will be making the following Official Report, column 84W,whether those Colombian grant in aid funding to the BBC World Service and soldiers accused of involvement in drug trafficking, British Council: extrajudicial killings and working with illegal paramilitary groups had previously participated in British military 2011-12 £ million or counternarcotics assistance programmes to Colombia. BBC World Service 253 [26325] British Council 180

Mr Jeremy Browne: Our counter-narcotics work in Other allocations for 2011-12 and beyond are still to Colombia is scrupulously monitored to ensure it cannot be decided in the light of the recent spending round contribute to any human rights abuses. We do not settlement. discuss the detail of this narcotics work publicly as doing so risks putting UK and Colombian lives in danger. Departmental Lobbying

Departmental Allowances Robert Halfon: To ask the Secretary of State for Foreign and Commonwealth Affairs how much his Bob Russell: To ask the Secretary of State for Foreign Department’s agencies and non-departmental public and Commonwealth Affairs how long on average he bodies spent from the public purse on influencing spends managing expenses and allowances claims; and public policy through (a) employing external (i) public if he will make a statement. [24519] affairs companies, (ii) strategic consultancies and (iii) corporate communications firms, (b) external Alistair Burt: The Parliamentary Office manage the marketing and (c) other activities in each of the last 10 expenses of the Secretary of State for Foreign and years. [23760] Commonwealth Affairs, the right hon. Member for Richmond (Yorks) (Mr Hague). Management of these Alistair Burt: We have no record of any expenditure expenses does not require a significant amount of the by the Foreign and Commonwealth Office’s agencies Foreign Secretary’s time. and non-departmental public bodies on influencing UK public policy, which we understand to mean lobbying. Departmental Grants Robert Halfon: To ask the Secretary of State for Anas Sarwar: To ask the Secretary of State for Foreign Foreign and Commonwealth Affairs which of his and Commonwealth Affairs (1) what grants his Department Department’s non-departmental public bodies have has awarded in 2010-11 to date; what grants he plans to undertaken activities to influence public policy for award in each of the next two years; what the monetary which they engaged (a) public affairs and (b) public value is of each such grant; and to which organisations relations consultants in each year since 1997; and at such grants are to be made; [26582] what monetary cost in each such year. [23785] (2) what the monetary value was of grants awarded by his Department in 2009-10; and how much his Alistair Burt: We have no record of any of the Foreign Department plans to award in such grants in (a) and Commonwealth Office’s non-departmental public 2010-11 and (b) 2011-12. [26584] bodies having engaged public affairs or public relations consultants to influence public policy, which we understand Mr Bellingham: The Foreign and Commonwealth to mean lobbying. Office (FCO) has provided the following grant in aid funding to the BBC World Service, British Council, the Government Hospitality: Wines Westminster Foundation for Democracy (WFD), the Great Britain China Centre (GBCC) and the Marshall Mr Watson: To ask the Secretary of State for Foreign Aid Commemoration Commission (MACC). and Commonwealth Affairs what the cost to the public purse has been of (a) red wine, (b) white wine, (c) £ million champagne and (d) fortified wine purchased for the 2009-10 2010-11 Government wine cellar since his appointment. [26874] BBC World Service 268 262.5 British Council 200.8 188 Mr Bellingham: Government Hospitality buys wines WFD 4.1 3.4 when they are relatively less expensive, and stores them GBCC 0.3 0.27 until they are ready to use. Government Hospitality has spent £25,043 on new stock for the cellar since May MACC 2.2 2.2 2010, all of which has been on white wine only. 553W Written Answers29 NOVEMBER 2010 Written Answers 554W

Guatemala we believe Israel has every right to defend itself, we believe that barriers are not the best way to achieve this Katy Clark: To ask the Secretary of State for Foreign in the 21st century. Where it is constructed outside of and Commonwealth Affairs whether the Minister of Green Line Israel, the Israeli separation barrier is illegal State with responsibilities for Latin America plans to both according to international and Israeli law. It is meet representatives of Peace Brigades International worth noting that the barrier on some 40% of the during his visit to Guatemala. [26849] intended route remains unbuilt. We judge that Prime Minister Fayyad’s reform of the Palestinian security Mr Jeremy Browne: One of the UK’s top priorities in sector has played the most significant part in reducing Guatemala is to support good governance and human the violence committed by Palestinian groups against rights which are essential to improving the deteriorating targets in Israel. The best way of ensuring Israel’s security situation in the country. During my visit to security is to come to a comprehensive, just and lasting Guatemala I met with civil society organisations and peace agreement with its neighbours. young leaders—including young indigenous women— during an event to promote a national campaign against Israel: Foreign Relations domestic violence which the UK is actively supporting. I did not have a separate meeting with representatives Mr Slaughter: To ask the Secretary of State for of Peace Brigades International in Guatemala on this Foreign and Commonwealth Affairs what bilateral (a) occasion, but I did raise human rights issues with the agreements and (b) programmes exist between the UK Guatemalan Government and I am aware of the work and Israeli governments. [25636] Peace Brigades International does in Guatemala and around the world. Alistair Burt: The UK-Israel bilateral relationship is based on deep connections between our two countries. Guatemala: Ethnic Groups From the Balfour Declaration to the recent bilateral film treaty, our relationship has a rich heritage, embracing Katy Clark: To ask the Secretary of State for Foreign a wide range of activities over many years. The UK and and Commonwealth Affairs (1) whether the Minister Israel share a long history of agreement and cooperation of State with responsibilities for Latin America plans across political, economic, scientific, commercial and to raise the matter of consultation with indigenous cultural areas both bilaterally and multilaterally. You communities on major development projects during his can find details of UK Israel-agreements at the website visit to Guatemala; [26847] of our embassy in Israel (2) whether the Minister of State with responsibilities http://ukinisrael.fco.gov.uk/en/about-us/working-with-israel/ for Latin America plans to raise the matter of the uk-israel-relations/. effects of major development projects on indigenous The underlying objective of any of our programmes in communities during his visit to Guatemala. [26848] Israel is to enrich the friendship between our two nations and to support efforts to achieve a two-state solution, Mr Jeremy Browne: One of the UK’s top priorities in that will see a viable Palestinian state existing in peace Guatemala is to support good governance and human and security alongside Israel. rights which are essential to improving the deteriorating security situation in the country. During my short visit Kashmir to Guatemala I raised human rights and our concern about the death penalty, the importance of tacking violence and organised crime as well as the impact of Julie Hilling: To ask the Secretary of State for climate change with the Guatemalan Government. I Foreign and Commonwealth Affairs what recent also met civil society organisations and young leaders— discussions he has had with his counterparts in India including young indigenous women—during an event and Pakistan on the future of Kashmir; and what to promote a national campaign against domestic violence recent reports he has received on progress towards which the UK is actively supporting. self-determination for the people of Kashmir. [27171] Our embassy in Guatemala City and officials in London will continue to maintain a dialogue with both Alistair Burt: Officials in our high commissions in the Guatemalan Government and civil society groups Islamabad and New Delhi regularly discuss India-Pakistan on the human rights of the indigenous communities of relations, including Kashmir, with their counterparts. Guatemala. However the long standing position of the UK is that it is for India and Pakistan to find a lasting resolution to Israel: Borders the situation in Kashmir, one which takes into account the wishes of the Kashmiri people. It is not for the UK Mr Amess: To ask the Secretary of State for Foreign to prescribe a solution or to mediate in finding one. My and Commonwealth Affairs what recent reports he has right hon. Friend the Foreign Secretary reiterated this received on the effectiveness of the Security Fence in in the Foreign Affairs debate on 27 May 2010 and Israel in reducing the number of (a) suicide bombings during his visit to Pakistan in June. and (b) other terrorist incidences in the State of Israel; We continue to call for an improvement in the human and if he will make a statement. [26611] rights situation on both sides of the line of control and for an end to external support for violence in Kashmir. Alistair Burt: There are no reliable statistics on the UK funding supports human rights, conflict prevention effectiveness of Israel’s security barrier, which was and peace building efforts on both sides of the line of commissioned following the 2nd intifada of 2000. Although control. 555W Written Answers29 NOVEMBER 2010 Written Answers 556W

MI6: Finance Religious Freedom

Mr Laws: To ask the Secretary of State for Foreign Angie Bray: To ask the Secretary of State for Foreign and Commonwealth Affairs what the budget was of and Commonwealth Affairs how many people have the Secret Intelligence Service in (a) 2005-06, (b) used his Department’s toolkit advising on the promotion 2008-09 and (c) 2009-10; and what his latest estimate is and protection of religion or belief internationally; and of that budget for 2010-11. [25165] what assessment he has made of its effectiveness. [26377] Alistair Burt [holding answer 19 November 2020]: Mr Bellingham: The Foreign and Commonwealth For national security reasons, details of individual Office’s freedom of religion or belief toolkit has been intelligence agency budgets are not disclosed. The Secret circulated to all the Foreign and Commonwealth Office’s Intelligence Service is funded through the Single Intelligence overseas missions. Our posts have been encouraged to Account (SIA), along with the Security Service and use it in their work to promote freedom of religion or Government Communications Headquarters. belief. The toolkit has also been distributed within the The SIA actual spend (as per the published financial EU and was presented at a public hearing on ‘Freedom statements) for 2005-06 was £1.2 billion resource and of religion or belief in the EU’s external relations’ held £0.2 billion capital, for 2008-09 it was £1.6 billion in the European Parliament in March this year. resource and £0.3 billion capital and for 2009-10 it was The Foreign and Commonwealth Office’s overseas £1.8 billion resource and £0.3 billion capital. missions have a responsibility to monitor and raise The SIA budget for 2010-11 is £1.7 billion resource and human rights in their host countries. They do so on a £0.3 billion capital as set out in the spending review 2010. case by case basis and we do not hold this information centrally. In order to answer your question a Foreign Middle East: Armed Conflict and Commonwealth Office wide search would be required and this search would incur disproportionate cost. Mr Amess: To ask the Secretary of State for Foreign and Commonwealth Affairs what recent assessment he Shaker Aamer has made of the extent of arms smuggling into Gaza; what discussions he has had with the government of Mr Bain: To ask the Secretary of State for Foreign (a) Israel and (b) Egypt on this issue since September and Commonwealth Affairs what recent discussions he 2010; and if he will make a statement. [25053] has had with the US Secretary of State on a possible timetable for the return of Shaker Aamer to the UK; Alistair Burt: Despite the efforts of Israel, Egypt and and if he will make a statement. [26563] the international community, weapons continue to be smuggled into Gaza, which is a cause of great concern. Alistair Burt: My right hon. Friend the Foreign Secretary We continue to work with the international community reiterated the Government’s request for the release and to support all efforts to implement the steps set out in return to the UK of Shaker Aamer when he met the US UN Security Council Resolution 1860 of January 2009, Secretary of State in Washington on 17 November including the prevention and interdiction of illicitly 2010. The decision on Mr Aamer’s future lies solely trafficked arms into Gaza and the alleviation of the with the US Government. The outcome of our humanitarian and economic situation. government-to-government discussions is not certain.

Mr Clappison: To ask the Secretary of State for Sherif Hassan Abdelwahab Foreign and Commonwealth Affairs what recent steps he has taken to bring about the release of Gilad Shalit; Mr Andrew Smith: To ask the Secretary of State for and if he will make a statement. [27339] Foreign and Commonwealth Affairs if he will make representations to the government of Egypt on the detention Alistair Burt: My right hon. Friend the Foreign Secretary at Cairo airport on 9 November 2010 of Sherif Hassan recently met with Gilad Shalit’s family while on his visit Abdelwahab Muhammad and the deportation of his to the region, making clear that we continue to call for wife Emma Hassan. [27446] Hamas to unconditionally release Gilad Shalit and that we consider it utterly unacceptable that he is denied Alistair Burt: We have been in touch with the EU International Committee of the Red Cross (ICRC) access. delegation in Egypt on this issue. The EU delegation My right hon. Friend the Foreign Secretary made the intends to raise the case of Mr Sherif Hassan Abdelwahab following statement on 25 June, the fourth anniversary Muhammad with the Egyptian authorities. of Shalit’s capture: We are determined to uphold British values abroad “Today marks the fourth anniversary of the abduction of and condemn all instances of discrimination, arbitrary Israeli soldier, Staff Sergeant Gilad Shalit. My thoughts are with detention or persecution against individuals and groups Gilad’s parents today. I sincerely hope that they will soon be able because of their religion or belief. The protection of to welcome their son home. human rights, including freedom The UK has long called for Gilad Shalit’s immediate and of religion, is a central component of Egypt’s ongoing unconditional release and we reiterate that call today. It is also dialogue with the European Union. vital that Hamas allows the International Committee of the Red Cross to visit Gilad immediately and ensure that he is in good Spain: Deaths health. His continued captivity without any ICRC access and with only very occasional, minimal contact with his family is utterly unacceptable. We continue to call on Hamas to renounce Robert Flello: To ask the Secretary of State for violence and take immediate and concrete steps towards the Foreign and Commonwealth Affairs what discussions Quartet principles and to free Gilad Shalit without delay.” he has had with the Government of Tenerife on the 557W Written Answers29 NOVEMBER 2010 Written Answers 558W death of Jordan Walchester; what consular assistance Taiwan: Climate Change Convention has been provided to Mr Walchester’s family; and if he will make a statement. [26817] Robert Halfon: To ask the Secretary of State for Foreign and Commonwealth Affairs what his policy is Mr Lidington: My right hon. Friend the Secretary of on the attendance of the Environmental Protection State for Foreign and Commonwealth Affairs (Mr Hague) Administration of Taiwan as an observer at the United has made no representations to the Government of Nations Framework Convention on Climate Change Tenerife on the tragic death of Jordan Walchester in Conference of the Parties; and if will he make a statement. Arona, Tenerife. I was very sorry to learn of Jordan’s [26422] death and would like to extend my sincere condolences to the Walchester family. Mr Bellingham: The Government support Taiwan’s Consular officials have maintained regular contact practical participation in international organisations with the Walchester family, providing bereavement guidance where this does not require statehood. and information and advice about local procedures and The Government attach importance to engagement regulations. Consular officials have also been in contact with Taiwan on climate change issues and have regular with the local authorities and will continue to monitor exchanges with the Taiwanese authorities about low the ongoing judicial proceedings into the death of Mr carbon development. Taiwan’s shift towards a greener Walchester. economy is gaining momentum and we are actively supporting this transition.

Sri Lanka: Administration of Justice Helen Jones: To ask the Secretary of State for Foreign and Commonwealth Affairs what his policy is on Taiwan’s participation in the UN Framework Convention on Katy Clark: To ask the Secretary of State for Foreign Climate Change; and if he will make a statement. and Commonwealth Affairs whether he has made an assessment of the International Commission of Jurists [27397] report on administrative detention in Sri Lanka. [26799] Mr Jeremy Browne: The Government support Taiwan’s practical participation in international organisations Alistair Burt: The report reinforces our concerns on where this does not require statehood. the lack of humanitarian access to former combatants and the continued lack of clarity over their legal status. The Government attach importance to engagement My right hon. Friend the Foreign Secretary and I raised with Taiwan on climate change issues and has regular these concerns with the Sri Lankan Foreign Minister exchanges with the Taiwanese authorities about low during his visit to the UK on 19/20 October. Our high carbon development. Taiwan’s shift towards a greener commissioner in Colombo also regularly raises these economy is gaining momentum and we are actively issues with the Sri Lankan Government. supporting this transition. Since the publication of the International Commission Uganda: Prisoners of Jurists report, several thousand detainees have been released. Sri Lanka’s Lessons Learnt and Reconciliation Commission has also called for a speedy resolution of Jim McGovern: To ask the Secretary of State for remaining cases and improved transparency over detainees’ Foreign and Commonwealth Affairs whether he has whereabouts. But we and the international community made recent representations to the Ugandan Government continue to have concerns. We hope the Sri Lankan on the arrest and detention of Al Amin Kimathi. [26621] Government will take swift action to address these. Mr Bellingham: I refer the hon. Member to the answer my noble Friend Lord Howell of Guildford gave to the noble Lord Chidgey on 15 November 2010, Official Sri Lanka: Human Rights Report, House of Lords, column WA172.

Katy Clark: To ask the Secretary of State for Foreign Western Sahara: Human Rights and Commonwealth Affairs what recent discussions he has had with his Sri Lankan counterpart on human Mr Mike Hancock: To ask the Secretary of State for rights in Sri Lanka. [26798] Foreign and Commonwealth Affairs with reference to the recent UN Security Council briefing on Western Alistair Burt: The Secretary of State for Foreign and Sahara, what mechanisms will be put into place to Commonwealth Affairs, my right hon. Friend the Member monitor human rights in El Aauin, Western Sahara. for Richmond (Yorks) (Mr Hague) and I discussed with [26607] the Sri Lankan Foreign Minister on 19 and 20 October 2010 the importance of improving the human rights Alistair Burt: We remain committed to using our situation in Sri Lanka. We emphasised in particular the presidency of the UN Security Council to encourage need for Sri Lanka to demonstrate its commitment both the parties and the Group of Friends to consider a towards freedom of speech and to ensure a credible and range of options for independent verification of the independent process to address allegations of violations human rights situation in Western Sahara and identify of international humanitarian and human rights law the international actor or body which is best placed to during the conflict. Our high commissioner in Colombo deliver that function. I intend to discuss both recent also regularly raises these issues with the Sri Lankan violence in Western Sahara and human rights monitoring Government. when I visit Morocco later this month. 559W Written Answers29 NOVEMBER 2010 Written Answers 560W

Western Sahara: Politics and Government named for answer (i) in Session 2009-10 and (ii) since May 2010; how many such questions tabled between Katy Clark: To ask the Secretary of State for Foreign May 2010 and 12 November 2010 had not received a and Commonwealth Affairs what reports he has received substantive answer by 18 November 2010; and what of the denial of entry into Morocco of two Spanish estimate he has made of the average cost to his Department MPs and one MEP on a visit to El Aauin, Western of answering a question for written answer on a named Sahara; and if he will make a statement. [26797] day on the day named for answer in the latest period for which figures are available. [25985] Alistair Burt: We have not received any official reports from either the Spanish or Moroccan Ministries of Mr Maude: This Session, in the period specified the Foreign Affairs. However, we are aware of media reporting Cabinet Office has received 585 ordinary written questions. of this matter and officials are monitoring the situation In respect of those questions 501 (86%) were answered closely. within five sitting days; 73 (12%) were answered after five sitting days and 11 remain unanswered. Western Sahara: Violence In the same period the Cabinet Office received 142 named day questions. In respect of those questions 117 (82%) Mr Mike Hancock: To ask the Secretary of State for were answered on the specified date, 22 (15%) were Foreign and Commonwealth Affairs with reference to answered after the specified date and three questions the recent UN Security Council briefing on Western remain unanswered. Sahara, what recent assessment he has made of reports The Government have committed to providing the of violence in Western Sahara; and if he will make a Procedure Committee with Sessional statistics in a standard statement. [26608] format on the time taken to respond to written parliamentary questions for the 2009-10 Session. This Alistair Burt: We chaired a meeting of the UN Security information will be submitted to the Procedure Committee Council on 16 November 2010 to gather evidence about shortly. recent events from Assistant Secretary-General for The Cabinet Office does not hold data relating to the Peacekeeping Operations, Atul Khare, and UN envoy cost of parliamentary questions. However HM Treasury to Western Sahara ambassador Christopher Ross. However, conducts an annual indexation exercise of the cost of due to restrictions on access for international observers, written and oral parliamentary questions so as to ensure including United Nations Mission for the Referendum that these average costs are increased in line with increases in Western Sahara (MINURSO), we are not yet able to in underlying costs. The estimated costs that have applied make a firm assessment of the situation. from 20 January 2010 are: Written question—£154 DEPUTY PRIME MINISTER Oral question—£425 Members: Correspondence The disproportionate cost threshold (DCT), the level above which Departments can refuse to answer a written Mr Sanders: To ask the Deputy Prime Minister when PQ is £800. he plans to reply to the letter from the hon. Member for The Treasury, in making its assessment of the cost of Torbay of 29 September 2010 on the payment of answering questions, does not differentiate between the interns. [27454] types of written questions. The Deputy Prime Minister: I replied to the correspondence from the hon. Member regarding the IPSA: Parliamentary Commissioner for Administration payment of interns on 23 November. I apologise for the delay in responding. Sir John Stanley: To ask the Minister for the Cabinet Office if he will bring the Independent Parliamentary Standards Authority within the statutory remit of the CABINET OFFICE Parliamentary Commissioner for Administration. Departmental Written Questions [25882] Sir Paul Beresford: To ask the Minister for the Cabinet Mr Maude: The remit of the Parliamentary Office (1) how many and what proportion of questions Commissioner for Administration (the Parliamentary tabled to the Minister for the Cabinet Office for ordinary Ombudsman) is updated annually. As part of this exercise, written answer (a) in Session 2009-10 and (b) since consideration is given to whether bodies established in May 2010 were answered within (i) seven days and (ii) year should be brought within the Parliamentary 14 days of tabling; how many such questions tabled Ombudsman’s remit. between May 2010 and 12 November 2010 remained unanswered by 18 November 2010; and what estimate he has made of the average cost to his Department of NDPBs: Finance answering a question for ordinary written answer within seven days of tabling in the latest period for which Dr Pugh: To ask the Minister for the Cabinet Office figures are available; [25986] what steps he takes to encourage arms-length bodies (2) how many and what proportion of questions and non-departmental public bodies to (a) improve tabled (a) to the Minister for the Cabinet Office and their cash management and (b) increase the level of (b) the Prime Minister for written answer on a named funds deposited with the Exchequer for the purpose of day were answered substantively before or on the day reducing interest on Government debt. [11647] 561W Written Answers29 NOVEMBER 2010 Written Answers 562W

Justine Greening: I have been asked to reply. Mr Vaizey: The Department does not provide direct The Treasury co-ordinates departmental cashflow funding for arts organisations visiting the UK or to information so it can provide the Debt Management British based organisations visiting overseas. All arts Office (DMO) with the best possible estimate of the funding is allocated through Arts Council England Government’s net cash position at the end of the day, so (ACE). ACE have supplied the information in the table, that the DMO can borrow or lend the expected shortfall showing arts organisations abroad who have been allocated or surplus. The Treasury works with Departments to money in 2009-10, where there have been substantial improve forecasting performance and to minimise benefits for English artists and audiences: commercial balances. Amount Government Departments submit cashflow forecasts Name of applicant/organisation awarded (£) including data relating to public bodies they are responsible for to the Treasury. The Treasury applies financial charges Agnieszka Kurant 1,500.00 or rebates at the end of the year depending on departmental Bildmuseet, Umea University 5,000.00 performance. Individual Departments are responsible Carsten Nicolai 15,000.00 for ensuring all their public bodies provide them with Foundation 4.99 2,400.00 the necessary data so that the Treasury can provide International Association for the Biennial of Young 75,000.00 accurate forecasts to the DMO. Artists of Europe and Mediterranean Treasury guidance contained in “Managing Public Linda Tedsdotter 3,300.00 Money” states that all public bodies should minimise Olaf Brzeski 1,330.00 commercial balances. Individual Departments are Orpheus Di Andrea Marini (artist management 42,935.00 responsible for ensuring the public bodies follow this organisation) guidance. Simon H. Fell 1,290.00 Additionally, under reciprocal arrangements, ACE CULTURE, MEDIA AND SPORT funded outside UK-based ‘Shademakers’ £56,903 in 2009-10. This collaboration and co-organisation works London Olympics: Sporting Legacy between Germany and London to deliver carnival work to UK audiences at places including the Notting Hill 16. Nicky Morgan: To ask the Secretary of State for Carnival. They collaborated with artists with an EU Culture, Olympics, Media and Sport what steps his remit, their activities mainly focused in London and Department has taken to secure a sporting legacy from Liverpool. the London 2012 Olympics. [26749] Hugh Robertson: I asked Sport England to develop their £135 million Places People Play strategy which, Arts Council: Finance along with the investment in the Olympic Park, will mean a new generation of iconic facilities; protection John McDonnell: To ask the Secretary of State for for our local playing fields; and the Gold Challenge will Culture, Olympics, Media and Sport whether his both raise money for charity and get people playing Department has undertaken an impact assessment of more Olympic sports. The School Olympic style competition the economic effects of the reduction in lending for the will get competitive sport back in our schools. All of arts sector proposed in the comprehensive spending this is supported by protecting the Whole Sport Plan review funding of organisations in Greater London and elite athlete funding in the spending review. which are funded by the Arts Council. [26420] Creative Industries: Scotland Mr Vaizey: Arts Council England (ACE) allocates Mr Bain: To ask the Secretary of State for Culture, Government funding as grants, and does not lend funds. Olympics, Media and Sport what assessment he has As part of the spending review, the Department will be made of the likely effects on the creative industries in reducing its own administrative budget by 50% and has Scotland of his decision not to grant Scottish asked a number of its arm’s length bodies, including Television independent producer status. [26744] ACE, to do the same. At a difficult time our aim has been to ensure that the maximum amount of funding is Mr Vaizey: The Department undertook an impact spent at the front line, rather than on bureaucracy. We assessment as part of the public consultation on the had regular discussions with those arm’s length bodies potential reclassification of production companies owned during the spending review and those discussions continue. by Channel 3 licence holders. This was published on the We are confident that in cutting administration in order departmental website as part of the consultation: to limit cuts to the front line, arts organisations across http://webarchive.nationalarchives.gov.uk/+/http:// the country, including those in Greater London, will www.culture.gov.uk/reference_library/consultations/6415.aspx continue to thrive. Arts Kelvin Hopkins: To ask the Secretary of State for Mr Nicholas Brown: To ask the Secretary of State for Culture, Olympics, Media and Sport whether his Culture, Olympics, Media and Sport what financial Department has undertaken an impact assessment in assistance his Department provides to arts organisations respect of the economic effects on the arts sector of the visiting the UK; and what UK-based organisations reduction in funding resulting from the outcomes of have received assistance from his Department and its the Comprehensive Spending Review for organisations agencies for overseas visits under reciprocal arrangements. funded by the Arts Council in the East of England; and [26625] if he will make a statement. [26565] 563W Written Answers29 NOVEMBER 2010 Written Answers 564W

Mr Vaizey: As part of the spending review, the has made of the change in the level of his Department’s Department will be reducing its own administrative funding for each arts sector in each region in each of the budget by 50% and has asked a number of its arm’s last five years. [26687] length bodies to do the same. At a difficult time our aim has been to ensure that the maximum amount of funding is spent at the front line, rather than on bureaucracy. We had regular discussions with those arm’s length bodies Mr Vaizey: The Department’s funding for the arts is during the spending review and those discussions continue. awarded through Arts Council England (ACE) at arm’s We are confident that in cutting administration in order length from Government. ACE has supplied in the table to limit cuts to the front line, arts organisations across the estimated change in levels of funding for each the country, including those in the eastern region, will artform in each region for the last five years. continue to thrive. Arts: Finance Mr Nicholas Brown: To ask the Secretary of State for Culture, Olympics, Media and Sport what estimate he

Estimated changes in amounts awarded (%) From financial year From financial year From financial year From financial year 2005-06 to financial 2006-07 to financial 2007-08 to financial 2008-09 to financial Region Artform year 2006-07 year 2007-08 year 2008-09 year 2009-10

East Combined arts 63 -18 15 36 Dance 40 -30 31 13 Literature 93 -46 25 -25 Music -18 -6 32 7 Not art form specific 0 -75 -8 -65 Theatre 19 -4 -1 2 Visual arts 7 -30 23 45 Total 17 -21 15 14

East Midlands Combined arts 19 -43 -10 53 Dance 50 -13 -22 46 Literature 7 -67 170 -22 Music 23 -23 0 -12 Not art form specific 36 107 21 -56 Theatre -4 -1 0 46 Visual arts -4 -3 38 21 Total 8 -15 8 28

London Combined arts 6 -2 3 7 Dance -2 -4 0 14 Literature 36 -27 19 13 Music 5 -2 2 22 Not art form specific -2 4 -29 -3 Not known -59 -100 0 0 Theatre 4 0 3 14 Visual arts -2 -2 -4 24 Music 0 0 0 0 Total 3 -2 1 14

North East Combined arts 57 -23 50 28 Dance 19 15 -25 5 Literature -19 5 -10 26 Music 17 0 3 -3 Not art form specific 1 0 -13 243 Not known -58 -100 0 0 Theatre 6 -7 0 54 Visual arts 19 -8 12 12 565W Written Answers29 NOVEMBER 2010 Written Answers 566W

Estimated changes in amounts awarded (%) From financial year From financial year From financial year From financial year 2005-06 to financial 2006-07 to financial 2007-08 to financial 2008-09 to financial Region Artform year 2006-07 year 2007-08 year 2008-09 year 2009-10

Total 12 -6 5 33

North West Combined arts 5 -40 9 12 Dance 7 -14 -14 11 Literature 2 -15 -23 16 Music -11 1 5 43 Not art form specific 130 -56 -26 9 Theatre 4 -11 0 23 Visual arts 1 -12 -5 38 Total 8 -20 -2 27

South East Combined arts 32 -7 17 -5 Dance 8 -15 -7 32 Literature 15 -36 27 20 Music 14 -8 -1 41 Not art form specific 40 -66 29 -23 Theatre 11 -5 -18 48 Visual arts 3 8 -22 37 Total 14 -9 -8 28

South West Combined arts 36 -30 -7 65 Dance 16 -23 -6 19 Literature -20 -24 -26 106 Music 6 -8 0 25 Not art form specific -21 42 -9 12 Theatre -3 -9 17 23 Visual arts 9 -9 -8 30 Total 6 -12 1 31

West Midlands Combined arts 14 -11 0 28 Dance 7 1 -2 13 Literature 3 -26 -32 43 Music 13 -6 0 15 Not art form specific 73 -53 -3 -9 Theatre 5 -1 2 5 Visual arts 2 -15 13 7 Total 9 -7 1 10

Yorkshire and Combined arts 31 -16 16 24 The Humber Dance -5 -1 5 19 Literature 46 -23 -16 26 Music 10 -3 2 15 Not art form specific 90 -64 53 20 Theatre 5 -11 5 14 Visual arts 13 -15 10 44 Total 11 -11 6 20

Broadcasting: Scotland 132W, on broadcasting: Scotland, for what reasons he rejected the recommendations of Ofcom in respect of Ann McKechin: To ask the Secretary of State for the award of qualified independent producer status to Culture, Olympics, Media and Sport pursuant to the Scottish Television. [27170] answer of 22 November 2010, Official Report, column 567W Written Answers29 NOVEMBER 2010 Written Answers 568W

Mr Vaizey: The recommendation from the Digital 2010; and what estimate he has made of the average Britain White Paper is not being taken forward because, cost to his Department of answering a question for on balance, the potential benefits of implementing the ordinary written answer within seven days of tabling in proposal do not outweigh the likely negative effects, the latest period for which figures are available. [25976] particularly on the existing Scottish independent production sector. John Penrose: From May 2010 to 12 November 2010, 444 (82.4%) of the questions tabled to the Department Departmental Degrees for ordinary written answer were answered within seven days of tabling and 95 (17.62%) were answered within Chi Onwurah: To ask the Secretary of State for 14 days of tabling. Culture, Olympics, Media and Sport pursuant to the All ordinary written questions tabled to the Department Official Report, answer of 26 July 2010, column 604W, for answer by 18 November have been answered. on Departmental degrees, what information his Department records on the qualifications and expertise The Government have agreed a process with the of its staff. [27130] House (through the Procedure Committee) that detailed information on 2009-10 performance will be provided John Penrose: At present the Department does not to the Committee shortly. systematically store this information, although recent The Department do not record the costs incurred by IT upgrades should enable us to do so in the future. answering an ordinary written parliamentary question. Currently there is no requirement to hold information We do however apply a cost limit of £800 when providing relating to staff qualifications or expertise on their each answer. personal files unless the member of staff has been recruited into a specialist position. Some staff files will Olympic Games 2012 contain this information, but to extract the information manually would incur disproportionate cost. Heidi Alexander: To ask the Secretary of State for Culture, Olympics, Media and Sport what recent Departmental Written Questions estimate he has made of the likely sale price of a post-conversion (a) one, (b) two and (c) three- Sir Paul Beresford: To ask the Secretary of State for bedroom flat in the Olympic Village. [26478] Culture, Olympics, Media and Sport how many and what proportion of questions tabled to the Secretary of Hugh Robertson: While assumptions have been made State for written answer on a named day were answered regarding the overall potential income from sales, it is substantively before or on the day named for answer not possible, at this time, to estimate accurately the (a) in Session 2009-10 and (b) since May 2010; how likely sale price of individual homes in the Olympic many such questions tabled between May 2010 and Village. The price of residential units will be dependent 12 November 2010 had not received a substantive on the state of the housing market at the time of sale. answer by 18 November 2010; and what estimate he has made of the average cost to his Department of Olympic Games 2012: Employment answering a question for written answer on a named day on the day named for answer in the latest period Lyn Brown: To ask the Secretary of State for Culture, for which figures are available. [25975] Olympics, Media and Sport what estimate he has made of the number of residents of Newham employed as a John Penrose: From May 2010 to 12 November 2010, direct result of the London 2012 Olympics. [26486] 79 (73.1%) of the questions tabled to the Department for answer on a named day were answered on time. Hugh Robertson: The Olympic Delivery Authority Named day questions cannot be answered before the (ODA) target is for the Olympic Park construction named day given by the Member. workforce to be comprised of at least 10-15% of people All named day questions tabled to the Department resident in the five host boroughs, including Newham. for answer by 18 November have received a substantive Employment figures for the Olympic Park workforce answer. since 2008 show that the host borough workforce has The Government have agreed a process with the ranged between 18-28%, consistently exceeding the set House (through the Procedure Committee) that detailed target. The last reported figures show that during September information on 2009-10 performance will be provided 2010 6,243 people were working on the Olympic Park. to the Committee shortly. Of these, 484 people were resident in the borough of Newham. The Department do not record the costs incurred by answering a named day parliamentary question. We do The ODA has recorded cumulative figures on the however apply a cost limit of £800 when providing each Olympic Park since April 2008 and on the Olympic answer. Village since April 2010. These show that during these periods 26,930 people have worked on the Olympic Sir Paul Beresford: To ask the Secretary of State for Park and/or Olympic Village for five days or more. Of Culture, Olympics, Media and Sport how many and these, 1,909 have been resident in the borough of Newham. what proportion of questions tabled to the Secretary of Residents of the host boroughs have benefited from State for ordinary written answer (a) in Session priority access to training and vacancies on the Olympic 2009-10 and (b) since May 2010 were answered within Park, with vacancies offered exclusively and equally to (i) seven days and (ii) 14 days of tabling; how many each of the five host borough employment brokerages such questions tabled between May 2010 and 12 and Jobcentre Plus (JCP) offices in the area for a period November 2010 remained unanswered by 18 November of 48 hours. 569W Written Answers29 NOVEMBER 2010 Written Answers 570W

Radio Frequencies Sir George Young: The information relating to the years 2001-02 to 2008-09 is available through the Bob Russell: To ask the Secretary of State for parliamentary website at: Culture, Olympics, Media and Sport if he will re-issue http://www.parliament.uk/mps-lords-and-offices/members- those licences for radio frequencies held by the parent allowances/house-of-commons/house-of-commons-scheme- company of Heart Radio where local radio stations guides/hocallowances07/members-allowance-and-travel- breakdown-/ have been closed. [25885] The data for 2009-10 will be published online in due Mr Vaizey: Decisions on radio licensing are a matter course as part of the House’s publication scheme. I have for Ofcom. However, we are not aware of any current also placed this information in the House of Commons plans to re-issue the licences of Global Radio, which Library. owns the Heart network, except where any licences are Oral Questions due to expire. Royal Parks Agency Fiona Mactaggart: To ask the Leader of the House if he will ensure that the number of different bodies Nicholas Soames: To ask the Secretary of State for answering questions for oral answer on the same day Culture, Olympics, Media and Sport what objectives he does not exceed the number of questions an hon. Member has set for the Royal Parks Agency for the next five is entitled to submit for oral answer on that day. [26729] years. [26770] Sir George Young: The current rota for oral questions John Penrose: The Royal Parks’ corporate objectives, operates on a five-week cycle of 20 sitting days. On two which the Secretary of State has approved, are: of these days, the number of bodies answering questions 1. Conserve and enhance the natural and built environment, for oral answer exceeds the maximum number of questions historic landscape and bio-diversity of the parks for the benefit of which an hon. Member is entitled to submit for answer current visitors and future generations. on the same day: 2. Deliver a broad array of activities and amenities for our (a) on one Monday when questions to the Department diverse audiences. for Culture, Media and Sport are followed by combined 3. Improve organisational effectiveness and deliver better value questions to the Leader of the House and the House of for money. Commons Commission; and He also agrees the agency’s key performance targets (b) on one Tuesday when questions to the Deputy annually. For 2010-11 these are: Prime Minister are followed by questions to the Attorney- 1. Maintain Green Flag status in all parks. General, which are in turn followed by combined questions 2. Maintain ISO 14001 for environmental quality. to the Church Commissioners, the Public Accounts 3. Recycle 90% of uncontaminated green waste by volume. Commission and the Speaker’s Committee on the Electoral 4. Increase cultural offer by delivering a London 2012 Inspire Commission. Programme major arts event, to coincide with the London 2012 The number of different bodies answering questions Open Weekend. on the same day could be reduced to two only by 5. Generate an earned income, including donated assets, of reducing the frequency with which oral questions are £13 million. answered, reducing the total number of bodies on behalf of which questions are answered, or reducing the time Nicholas Soames: To ask the Secretary of State for available for questions to one or more Departments. Culture, Olympics, Media and Sport what guidance he I believe that the current arrangements strike the has issued to the Royal Parks Agency on the holding of right balance between these different factors. large-scale commercial events in the Royal Parks. [26771] DEFENCE John Penrose: The Chief Executive has operational responsibility for events in The Royal Parks. The Secretary Afghanistan: Peacekeeping Operations of State has not issued specific guidance but The Royal Parks has published a Major Events Strategy which is Paul Flynn: To ask the Secretary of State for Defence available on its website: what estimate he has made of the average cost of re-integrating a former hostile soldier in Afghanistan in http://www.royalparks.org.uk/docs/ the latest period for which figures are available; and Major%20Events%20Strategy%202008%20-%202012.pdf under what budgetary headings such expenditure is incurred. [21153]

LEADER OF THE HOUSE Dr Fox: The Afghan Peace and Reintegration Programme (APRP) has a budget of US$782 million for a five-year Members: Allowances period. The APRP is designed to reach 4,000 communities in 22 provinces in Afghanistan, at an estimated average Mr Donaldson: To ask the Leader of the House how cost of $195,500 per community; it is not possible to much has been paid to each Member representing Sinn provide an average per hostile soldier as requested. Fein under each category of Parliamentary allowance It is open to both insurgents and their communities in each financial year since the date of the Resolution who meet the Afghan Government’s conditions: to cut of the House authorising payment of allowances to ties with al-Qaeda; renounce violence; and agree to live Members who have not taken their seats. [27273] within the Afghan constitutional framework. The APRP 571W Written Answers29 NOVEMBER 2010 Written Answers 572W is funded by the international Peace and Reintegration Other elements of the RAF SAR Force are subject to Fund, whose donors include Japan, Germany, US, UK, further work resulting from the outcome of the strategic Spain, Australia and the Republic of Korea, and falls defence and security review. under the overall decision-making authority of the Peace and Reintegration Programme’s Joint Secretariat. Air Forces: Military Bases

David Simpson: To ask the Secretary of State for Mr McCann: To ask the Secretary of State for Defence how many military personnel injured during Defence what estimate he has made of the cost to the operations in Afghanistan were from Northern Ireland. defence budget of (a) proceeding with the Nimrod [26674] MRA4 order and (b) maintaining the support base at RAF Kinloss over the next five years and the period Nick Harvey: The Ministry of Defence is unable to over which figures are based. [20370] identify Service personnel that are from Northern Ireland or that currently reside in Northern Ireland, as for most Peter Luff: As previously announced, we expect to Service personnel the Joint Personnel Administration save in the region of £2 billion over the next 10 years by (JPA) system (the military personnel database) holds not bringing Nimrod MRA4 into service. Release of information on individuals’ stationed location and not further detail may prejudice the Ministry of Defence’s their residential address. This information could be negotiating position with its commercial suppliers. The obtained only through a manual search of every personnel future use of RAF Kinloss is subject to further study as record, which would incur disproportionate cost. Defence examines the overall basing and estate implications of the strategic defence and security and comprehensive Eric Joyce: To ask the Secretary of State for Defence spending reviews (including the move back to the UK (1) how many armed forces personnel have been of the Army in Germany). The outcome of this complex diagnosed with (a) active and (b) latent tuberculosis piece of work is not expected until spring 2011. following a tour of duty in Afghanistan since 2001; [26889] Armed Forces: Deployment (2) whether armed forces personnel retiring from tours of duty in Afghanistan are routinely tested for Mr Ainsworth: To ask the Secretary of State for (a) active and (b) latent tuberculosis. [26890] Defence when he expects to announce his plans for the implementation of the re-basing of military personnel Mr Robathan: Armed forces personnel returning from in Germany; and whether he has made an estimate of tours of duty in Afghanistan are not routinely tested for the costs to his Department on such re-basing. [27141] either active or latent tuberculosis. Our policy is that all new recruits to the UK armed forces are offered the Nick Harvey: Detailed work on how the re-basing Bacillus Calmette Guerin (BCG) tuberculosis vaccine, will be implemented is under way as part of a wider if they do not have evidence of previous vaccination analysis of the overall Defence basing and estate (e.g. presence of a BCG scar) and no evidence of implications of the comprehensive spending review and current immunity to tuberculosis (indicated by the result strategic defence and spending review. No decisions are of a Mantoux Test). expected before spring 2011. Our records show that we are aware of 11 service personnel identified as having tuberculosis at some Armed Forces: Housing point subsequent to their deployment to Afghanistan. It is not possible specifically to attribute a diagnosis of tuberculosis to an operational deployment. Mr Reid: To ask the Secretary of State for Defence how many accommodation units of each (a) type and Air Force: Rescue Services (b) number of bedrooms his Department owns in each location in Argyll and Bute constituency; and whether Mr Laurence Robertson: To ask the Secretary of each such unit is occupied. [27259] State for Defence what plans he has for the future of RAF Rescue services. [27139] Mr Robathan: There are currently around 2,260 single living accommodation bed spaces at HM Naval Base Nick Harvey: The future of UK-based Search and Clyde. Records do not indicate whether a bed space is Rescue Helicopter (SAR-H) flights are being considered occupied at any point in time. in the review of the SAR-H private finance initiative There are a total of 515 service family accommodation project which is due to be completed in the near future. properties at HMNB Clyde, broken down as follows:

Type Number of bedrooms Total Occupied Not occupied

Officers

II (Rear Admiral, Commodore) 2 x double, 2/3 x single 5 5 0

III (Captain RN, Commander) 2 x double,2xsingle 38 24 14

IV (Lt Commander) 2 x double, 2 x single 16 5 11

V (Lieutenant and below) 2 x double,1xsingle 30 25 5 573W Written Answers29 NOVEMBER 2010 Written Answers 574W

Type Number of bedrooms Total Occupied Not occupied

Other ranks D 3 x double,1xsingle 36 28 8 C 2 x double, 1 x single 244 173 71 B 2 x double 146 98 48

In addition, there are a further 80 void maisonettes at There are a total of 515 service family accommodation Rhu, 48 of which are type D and 32 type V. These are properties at HMNB Clyde, broken down as follows: not currently occupied by families. There are currently around 2,260 single living accommodation bed spaces at HMNB Clyde. Records do not indicate whether a bed space is occupied at any point in time.

Type Number of bedrooms Total Occupied Not occupied

Officers II (Rear Admiral, Commodore) 2 x double, 2/3 x single 5 5 0 III (Captain RN, Commander) 2 x double,2xsingle 38 24 14 IV (Lt Commander) 2 x double, 2 x single 16 5 11 V (Lieutenant and below) 2 x double,1xsingle 30 25 5

Other ranks D 3 x double,1xsingle 36 28 8 C 2 x double, 1 x single 244 173 71 B 2 x double 146 98 48

In addition, there are a further 80 void maisonettes at Armed Forces: Pensions Rhu, 48 of which are type D and 32 type V. These are not currently occupied by families. Richard Fuller: To ask the Secretary of State for Defence how many foreign services personnel are affected Armed Forces: Manpower by the post-1978 service rule relating to pension entitlements of post-retirement servicemen’s widows; and what estimate Thomas Docherty: To ask the Secretary of State for he has made of the cost to his Department of rescinding Defence how many service personnel at each rank there that rule in 2011-12. [26542] were in financial year 2009-10. [26364] Mr Robathan: The information on the number of Nick Harvey [holding answer 25 November 2010]: widow(er)s who are not eligible for a pension is not The Defence Analytical Services and Advice (DASA) held. Consequently we are also unable to estimate costs. publish the United Kingdom Defence Statistics each Armed Forces: Young People year. This is available in the Library of the House and Chapter 2 contains the number of personnel in each rank as at 1 April since 1997. Dr Huppert: To ask the Secretary of State for Defence what assessment he has made of the effect of regulations In the DASA Publication TSP 09, also available in limiting the rights of discharge of under 18-year-olds the Library of the House, the number of personnel in from the armed services on the UK’s compliance with each rank and by service as at 1 April since 2006 is listed the provisions of International Labour Organisation on page 6. Convention No. 29 on forced labour. [27374] The full documents can also be found at: www.dasa.mod.uk Mr Robathan: The Ministry of Defence does not consider the regulations governing the rights of discharge Armed Forces: Northern Ireland for those under the age of 18 years to be in breach of the International Labour Organisation Forced Labour Convention. David Simpson: To ask the Secretary of State for Defence how many citizens of the Republic of Ireland Atomic Veterans and the Health Protection Agency’s have been recruited into each of the armed services in Mortality Study each of the last five years. [26675] Thomas Docherty: To ask the Secretary of State for Mr Robathan: I refer the hon. Member to the answer Defence what recent discussions he has had with the given on 24 November 2010, Official Report, House of Secretary of State for Health on atomic veterans and Lords, column WA333, in another place, to the noble the Health Protection Agency’s mortality study; and if Lord, Baron Dubs of Battersea. he will make a statement. [26604] 575W Written Answers29 NOVEMBER 2010 Written Answers 576W

Mr Robathan: Defence Ministers have held no recent Departmental Grants discussions with the Department of Health on atomic veterans and the Health Protection Agencies (HPA) mortality study. Ministry of Defence Officials have Anas Sarwar: To ask the Secretary of State for recently discussed future options for renewal of the Defence how much funding his Department has database contract it has with the HPA which supports allocated in grants for (a) 2009-10 and (b) 2010-11; this study. and how much such funding he plans to allocate for 2011-12. [25814] I also refer the hon. Member to the answer given to him on 24 November 2010, Official Report, columns 325-26W,by the Parliamentary Under-Secretary of State Dr Fox [holding answer 22 November 2010]: The for Health, the hon. Member for Guildford (Anne departmental figures for FY 2009-10 are the outturn; Milton). for FY 2010-11 the figures are forecast payments to be made this financial year. The funding allocation for the AWE Aldermaston forward year has still to be agreed. £ million Dr Huppert: To ask the Secretary of State for Name of grant/grant in aid FY 2009-10 FY 2010-11 Defence what plans he has for the future of the proposed new hydrodynamic facility Hydrus at AWE Veterans Challenge Fund 0.401 0.280 Aldermaston. [26417] Armed Forces Day 0.280 0.290 Reserve Forces and Cadets 112.051 105.489 Association—tri-service activities Peter Luff: The recently signed treaty with France Sports Board—n support of tri- 0.770 0.811 agreeing to the joint construction and operation of a service activities new hydrodynamics facility at Valduc in France, and a Museums, e.g. Army, Air, Navy 20.134 20.568 technology development centre at the Atomic Weapons Welfare Grants 2.350 2.457 Establishment (AWE) in the UK means that plans for a St Clement Danes Church 0.010 0.020 UK-only facility at AWE Aldermaston—project Hydrus— Royal Navy Historic Flight 0.220 0.225 will not now proceed as originally envisaged. However, Commonwealth War Graves 47.845 44.641 the full implications for Hydrus and the means of Commission transitioning to the planned new joint facilities are National Memorial Arboretum 0.511 0.523 under review. Grants to the Royal British Legion 0.181 0.115 Scott Polar Research Institute 0.035 0.035 Dr Huppert: To ask the Secretary of State for Skill Force 0.250 Closed Defence what estimate he has made of the cost to the Gurkha Welfare Trust 0.938 1.155 public purse of building and operating the proposed Royal Hospital Chelsea 10.824 10.838 new (a) EPURE nuclear warhead testing facilities at Royal Irish Benevolent Fund 0.124 0.127 Valduc in France and (b) TEUTATES technology Council of Voluntary Welfare 0.030 0.031 development centre at AWE Aldermaston. [26418] Work in Germany (Welfare Council) Peter Luff: The design, construction, operating and RMB Chivenor Nursery 0.015 0.015 dismantling costs of both EPURE and the technology Duke of York’s Royal Military — 0.786 development centre will be shared equitably by the UK School and France. This co-operation has the potential to save The Victoria and George Cross — 0.040 considerable sums for both parties compared to developing separate national facilities. However, due to the immaturity of present cost estimates and the need to protect commercial Departmental Pay sensitivities I am unable to be more specific at the present time on the potential cost to the public purse. Philip Davies: To ask the Secretary of State for Defence what the average annual salary equivalent has been for Caroline Lucas: To ask the Secretary of State for Territorial Army (a) privates, (b) lance corporals, (c) Defence whether his Department plans to submit planning corporals and (d) sergeants on operational deployments applications for (a) the proposed Anglo-French Teutates in each of the last five years. [26284] Technology Development Centre and (b) the new solid intermediate level waste treatment plant at the Atomic Weapons Establishment Aldermaston to the local planning Mr Robathan: Data on actual payments to all individual authority. [26597] TA soldiers deployed over the last five years are not held centrally, and could be provided only at Peter Luff: Planning, for the proposed Anglo-French disproportionate cost. Teutates technology development centre and the new The following table shows equivalent annual salaries solid intermediate level waste treatment plant at the based on the pay bands for Infantry personnel in the Atomic Weapons Establishment Aldermaston, is at an relevant ranks. For mobilised Territorial Army (TA) early stage. It is, therefore, too soon to define what personnel, the pay bands are the same as for their planning approvals will be necessary. The Ministry of Regular Army counterparts. There are a number of Defence, however, will ensure compliance with all legislative levels within each pay band, and the figures in the table requirements including the Town and Country Planning represent broadly the middle of the range for a typical Act (1990). Regular soldier. 577W Written Answers29 NOVEMBER 2010 Written Answers 578W

I can confirm, however, that any civilian staff £ redundancies that do arise will be included in the 25,000 2006 2007 2008 2009 2010 civilian staff reductions announced in the strategic defence Private 16,005 16,545 17,152 17,605 17,957 and security review on 19 October 2010, Official Report, Lance 23,535 24,328 25,128 25,887 26,405 column 797. Corporal Corporal 27,057 27,970 28,951 29,761 30,357 Mr Jim Murphy: To ask the Secretary of State for Sergeant 30,711 31,746 32,860 33,780 34,456 Defence (1) how many redundancies will arise from reducing the communications and logistics support to The actual amount paid to each, individual would Headquarters Allied Rapid Reaction Corps; and depend on a number of factors, including the length of whether such redundancies are included in the 25,000 mobilisation. Typically, a TA soldier will receive eight civilian staff redundancies announced in his months’ salary, based on a six-month deployment, one Department’s strategic defence and security review; month of pre-tour training and one month of post-tour [26299] leave. (2) how many redundancies will arise from the In addition to the basic salary, a mobilised TA soldier conversion of the second of the operational divisional may also be entitled to claim the following allowances headquarters to a force preparation role; and whether in accordance with the regulations applicable to Regulars, such redundancies are included in the 25,000 civilian the sums for which are shown at daily rates: staff redundancies announced in his Department’s strategic defence and security review. [26300] £ 2006 2007 2008 2009 2010 Nick Harvey: Implementation of the strategic defence Operational 14.51 14.51 14.51 14.51 29.02 and security review began in the autumn and will continue allowance into 2011, using the strategy for defence and planning Longer separation 6.02 6.22 6.38 6.56 6.69 round processes and the work of the defence reform allowance (level 1 of unit. Detailed planning and analysis is still under way, 15 levels) and it is too early to say how many redundancies might Unpleasant work 2.25 2.32 2.38 2.45 2.50 arise from the reduction in communications and logistics allowance (level 1 of support to Headquarters Allied Rapid Reaction Corps 3 levels) or as a result of the conversion of the second of the Unpleasant living ————3.34 operational divisional headquarters to a force preparation allowance role. In cases where mobilised TA soldiers’ military pay, I can confirm, however, that any civilian staff less operational allowance, falls short of what they redundancies that do arise will be included in the 25,000 would be paid in their regular employment, they are civilian staff reductions announced in the strategic defence entitled to claim the difference subject to an upper daily and security review on 19 October 2010, Official Report, limit of £822 per day for medical consultants whose TA column 797. service is within the Defence Medical Services as a consultant, and £548 per day for all other reservists. Departmental Research

Departmental Redundancy Chi Onwurah: To ask the Secretary of State for Defence pursuant to the answer of 1 November 2010, Official Report, column 597W,on departmental research, Mr Jim Murphy: To ask the Secretary of State for what estimate he has made of his Department’s expenditure Defence (1) how many redundancies will arise as a on research and development in (a) 2011-12, (b) 2012-13 result of the closure of the four regional divisional and (c) 2013-14. [27133] headquarters; and whether such redundancies are included in the 25,000 civilian staff redundancies Peter Luff: At present, the Ministry of Defence expects announced in his Department’s strategic defence and that the research budget will rise slightly in cash terms security review; [26296] over the comprehensive spending review period. However, (2) how many regional brigade headquarters will no final decisions have been taken on the level of close as a result of the implementation of the proposals research and development funding in the Ministry of of his Department’s strategic defence and security Defence’s planning round 2011 programme which is review; how many redundancies will arise as a result of expected to conclude in early 2011. the closures; and whether such redundancies are included in the 25,000 civilian staff redundancies Nimrod Aircraft announced in the strategic defence and security review. [26298] Mr Ainsworth: To ask the Secretary of State for Defence what discussions he has had on other Nick Harvey: I refer the hon. Member to the answer I countries fulfilling the role that would have been gave on 27 October 2010, Official Report, column 370W, performed by Nimrod MRA4 aircraft. [27142] to the hon. Member for Glasgow South West (Mr Davidson). The detailed work of the project team continues Peter Luff: I refer the hon. Member to the answer I and is not due to conclude until the middle of next year. gave him on 28 October 2010, Official Report, columns It is too early to say, therefore, what redundancies might 450-51W, and the hon. Members for East Kilbride, arise as a result of the closures of four divisional Strathaven and Lesmahagow (Mr McCann), and North headquarters and at least two regional brigade headquarters. Durham (Mr Jones). 579W Written Answers29 NOVEMBER 2010 Written Answers 580W

Nuclear Submarines Mr Jim Murphy: To ask the Secretary of State for Defence what additional funding his Department plans Dr Huppert: To ask the Secretary of State for to allocate to increase the Government’s capacity to Defence what the design life is in effective full-power respond to civil emergencies in each year of the years of the PWR2 (a) reactor pressure vessel and (b) spending review period. [26683] nuclear steam raising plant. [26419] Nick Harvey: As set out in the strategic defence and Peter Luff: I refer the hon. Member to the answer I security review, the Government consider it a priority gave him on 22 November 2010, Official Report, column for the UK to be resilient to all kinds of emergencies. 38W. Defence has a long standing record of providing assistance in the event of a civil emergency, providing specialist Nuclear Weapons: Finance capabilities which may not be available in the civil community or augmenting civil capacity if it is overwhelmed by the scale of an event. Military assistance is normally Dr Huppert: To ask the Secretary of State for provided on a reimbursement basis at the request of, Defence what (a) contracts have been signed and (b) and in support of, other Government Departments. other agreements have been made with (i) BAE and (ii) other companies in respect of the Future Submarine Rescue Services Programme. [26414]

Peter Luff: Contracts to support the Concept Phase Michael Dugher: To ask the Secretary of State for of the Future Submarine Programme have been signed Defence what alternative options for meeting the search with BAE Systems Marine Ltd, Babcock (Devonport and rescue requirement his Department considered as Royal Dockyard Ltd) and Rolls-Royce Power Engineering part of its review of the search and rescue (helicopter) plc. programme. [26659] Other contracts to support the concept phase have Peter Luff: The review of the search and rescue been placed with companies including QinetiQ, Deloitte helicopter project is considering a full range of alternative and Wragge & Co Limited Liability Partnership. It is options including extending the current capability, not possible to provide details of all of the smaller value acquisition of capital assets, and shorter and longer contracts placed by the Ministry of Defence as this term service arrangements to meet the UK helicopter information is not held centrally and could be provided Search and Rescue capability. Until this is concluded it only at disproportionate cost. would be inappropriate to comment further on any In addition, contracts for the design of a common specific aspects of the review. missile compartment have been placed with Electric Boat by the United States Government. Michael Dugher: To ask the Secretary of State for Defence what estimate his Department has made of the Public Expenditure cost to the public purse of extending beyond 2016 the life of the Sea King helicopters currently used by Mr Jim Murphy: To ask the Secretary of State for the RAF and Royal Navy for search and rescue Defence how much additional funding his Department operations. [26660] plans to allocate for the purposes of enhancing simulated training, as referred to in the Strategic Peter Luff: Extending the current Search and Rescue Defence and Security Review, in each year of the Sea King helicopters is being considered as part of the spending review period. [26680] Review of the Search and Rescue-Helicopter Project. Until this is concluded it would be inappropriate to Nick Harvey: The strategic defence and security review comment on any specific aspects of the Review. announced that there would be enhancements to simulated training to produce a more efficient and cost-effective Michael Dugher: To ask the Secretary of State for training environment. The Ministry of Defence is in the Defence what information his Department holds on process of completing its annual planning round which Sikorsky’s programme to extend the life of the US will allocate programme budgets. This is expected to variant of the Sea King helicopter; whether his review conclude in early 2011. of the search and rescue (helicopter) programme took account of that information; and if he will make a Mr Jim Murphy: To ask the Secretary of State for statement. [26661] Defence what additional funding his Department plans to allocate for the development of and use of (a) Peter Luff: The Ministry of Defence does not hold sensors and (b) nanotechnology in each year of the information on a Sikorsky programme to extend the life spending review period. [26682] of the US variant of the Sea King helicopter. The UK Sea Kings were built and are supported by AgustaWestland Peter Luff: The strategic defence and security review and the review of the Search and Rescue-Helicopter made clear that we will continue the most essential Project includes consideration of extending the life of investment in science and technology, which will include these helicopters. focusing investment on developing capabilities in key areas, such as, sensors and nanotechnology. The Ministry Michael Dugher: To ask the Secretary of State for of Defence is in the process of completing its annual Defence what assessment he has made of the likely planning round which will allocate programme budgets. effects of the implementation of the proposal to de-militarise This is expected to conclude in early 2011. the search and rescue (helicopter) programme on (a) 581W Written Answers29 NOVEMBER 2010 Written Answers 582W

RNAS Culdrose, (b) RAF Chivenor, (c) RAF Boulmer, Peter Luff: I refer the hon. Member to the answer (d) RAF Leconfield, (e) RAF Wattisham, (f) RAF given by my hon. Friend the Minister for Defence Prestwick, (g) RAF Valley and (h) RAF Lossiemouth; Personnel, Welfare and Veterans (Mr Robathan) on 19 and if he will make a statement. [26662] November 2010, Official Report, column 968W, to the right hon. Member for Coventry North East (Mr Peter Luff: I refer the hon. Member to the answer Ainsworth). given by my hon. Friend the Minister for Defence Personnel, Welfare and Veterans (Mr Robathan) on 19 Special Forces: Public Expenditure November 2010, Official Report, column 968W, to the right hon. Member for Coventry North East (Mr Ainsworth). Mr Jim Murphy: To ask the Secretary of State for Defence what additional funding his Department plans Michael Dugher: To ask the Secretary of State for to allocate to the Special Forces in each year of the Defence what the monetary value was of contractual spending review period. [26681] liabilities incurred by his Department in respect of Soteria at the time of the suspension of the search and Nick Harvey: The recently published strategic defence rescue (helicopter) programme. [26666] and security review highlighted the contribution of our Special Forces to a wide range of intervention operations Peter Luff: Soteria is the Preferred Bidder for the and the vital support they provide to stabilisation operations Search and Rescue Helicopter project and there are no and other commitments. We have taken the decision to contractual liabilities as no contract has been awarded. provide further investment in this area to significantly enhance support capabilities. Following the long-standing Michael Dugher: To ask the Secretary of State for precedent regarding Special Forces, no further details will Defence what the range is of the helicopter selected by be provided to help to protect operational capability. Soteria for the search and rescue (helicopter) requirement; and whether that helicopter has an in-flight refuelling Strategic Defence and Security Review capability. [26667] Mr Jim Murphy: To ask the Secretary of State for Peter Luff: The maximum range of the Sikorsky S92 Defence with reference to the strategic defence and helicopter in search and rescue configuration is 634 security review, whether his Department has made an nautical miles. This more than meets the search and estimate of the level of savings which will accrue from rescue (helicopter) coverage requirement for the UK. the rationalisation of wider equipment holdings in light Therefore an in-flight refuelling capability is not required. of experience on operations and fleet management during the comprehensive spending review period. [26302] Michael Dugher: To ask the Secretary of State for Defence what assessment his Department has made of Peter Luff: The Ministry of Defence (MOD) made the likely effects of the withdrawal of Nimrod maritime estimates of the cost savings accrued from measures in patrol aircraft on the (a) required fleet mix for the the strategic defence and security review for the purposes search and rescue (helicopter) programme and (b) of formulating policy. Some of these have been published operational capabilities of the helicopter platform to help inform the public debate. Release of further selected by Soteria. [26668] detail may prejudice the MOD’s negotiating position with its commercial suppliers. Furthermore, final savings Peter Luff: The search and rescue helicopter requirement figures will depend on detailed implementation, which is not dependent on the Nimrod maritime patrol aircraft will generally be subject to full consultation with all and there are no plans to change it as a result of not relevant parties, including the trade unions and the bringing the Nimrod into service. devolved Administrations, as well as the results of mandatory assessments on the impact that the measures Michael Dugher: To ask the Secretary of State for will have on sustainability, equality and diversity and Defence what role Nimrod maritime patrol aircraft health and safety. The MOD is therefore not able to play in maritime search and rescue missions; and if he release more detailed figures at this time. will make a statement. [26670] Mr Jim Murphy: To ask the Secretary of State for Peter Luff: None. Although the Nimrod MR2 was Defence (1) how many submissions to the strategic designed to undertake a wide variety of roles including defence and security review his Department received a long-range search and rescue capability, it was withdrawn from the general public; [26311] from service in March 2010. Following the Strategic Defence and Security Review, the Nimrod MRA4 will (2) how many submissions to the strategic defence no longer be brought into service. The UK will continue and security review from members of the public were to provide search and rescue services using a range of (a) read, (b) acknowledged and (c) replied to assets depending on the response required. substantively. [26960]

Mr Stewart Jackson: To ask the Secretary of State Dr Fox: The Ministry of Defence received over 1,000 for Defence when he expects his Department’s review letters from the public on aspects of the strategic defence of proposals for helicopter search and rescue under the and security review during the period of the review. All Private Finance Initiative to be concluded; and if he were read on receipt, and either have received or will will make a statement. [27373] receive replies. 583W Written Answers29 NOVEMBER 2010 Written Answers 584W

These are in addition to over 6,000 responses from Peter Luff: Following the announcement at the industry, public submissions to the Cabinet Office Coalition UK-France Defence and Security Co-operation summit Partnership Agreement, academics, Members of on 2 November that we had agreed to collaborate on Parliament, members of the armed forces, and public the assessment phase of the next generation of Medium servants within and beyond Defence. Altitude Long Endurance Unmanned Air Surveillance Systems; our officials are working together to agree Mr Jim Murphy: To ask the Secretary of State for joint requirements and plans. Defence whether all meetings on the strategic defence Territorial Army and security review attended by Ministers in his Department were minuted. [26313] Philip Davies: To ask the Secretary of State for Dr Fox [holding answer 25 November 2010]: All Defence pursuant to the answer of 15 November 2010, meetings of the Defence Strategy Group, which I chaired, Official Report, column 565W, on the Yorkshire were minuted. There was also an ongoing dialogue Regiment, what other roles have been suspended from between Ministers and service chiefs outside the Group Territorial Army infantry units. [26645] which did not require a formal record. Mr Robathan: In the light of current operational Mr Jim Murphy: To ask the Secretary of State for requirements, the Territorial Army Infantry’s Javelin Defence (1) what training schemes will be deleted to (anti-tank) role has also been suspended. find efficiencies in military training, as referred to in World War II: Anniversaries the strategic defence and security review; [26678] (2) what enhancements his Department plans to Mr Amess: To ask the Secretary of State for Defence make to simulated training, as referred to in the what preparations his Department has made in respect strategic defence and security review. [26679] of the commemoration of the 70th anniversary of the Battle of Britain; and if he will make a statement. Nick Harvey: We will enhance the training environment [24892] and use the most effective method of preparing our armed forces for what we ask them to do. This will Mr Robathan: In conjunction with Service charities, mean that some outdated training methods will be veterans’ organisations and associations, the Royal Air replaced by modern simulators and training techniques, Force developed a comprehensive series of events to but we do not plan to delete whole training schemes commemorate and celebrate the 70th anniversary of the unless there is no longer a need for them. Battle of Britain culminating in September this year. The key tenet that underpinned these events was to Surveillance allow veterans to participate as fully as possible in this anniversary. Events were held all over the country but Mr Jim Murphy: To ask the Secretary of State for the principal events of celebration were the unveiling of Defence what recent discussions his Department has a memorial statue to Sir Keith Park in Waterloo Place had with its US counterparts on co-operation on on 15 September and a Service of Commemoration and surveillance platforms. [26303] Dedication held in Westminster Abbey on 19 September. The RAF is considering the appropriate level of Peter Luff: Ministers and officials from both countries commemoration for the 75th anniversary of this historic regularly discuss co-operation on surveillance platforms. event in 2015 but it is too early to confirm any plans at this point. Mr Jim Murphy: To ask the Secretary of State for Defence (1) what assessment his Department has made of the UK’s surveillance needs up to 2020; [26304] HOUSE OF COMMONS COMMISSION (2) what arrangements his Department has put in place to ensure the UK can meet its surveillance needs Savings Programme: Consultation up to 2020. [26305] Thomas Docherty: To ask the hon. Member for Caithness, Peter Luff: The strategic defence and security review Sutherland and Easter Ross, representing the House of reviewed the UK’s capability requirements, including Commons Commission, which representative bodies of airborne surveillance, through to 2020. To meet them a (a) hon. Members, (b) hon. Members’ staff and (c) number of projects at various stages of maturity are staff of the House were consulted before the proposals currently under way. These include projects to deliver in respect of the House’s savings programme were and/or support unmanned systems such as Watchkeeper, communicated. [26723] and manned platforms such as E-3D Sentry, Rivet Joint and the replacement for the Sea King Mk 7 Airborne John Thurso: Following the Commission’s request to Surveillance and Control helicopter. We are content the Management Board to develop savings options, that we have adequate surveillance capability up to consultation on the Management Board’s list of possible 2020. initial savings is currently under way involving all of the groups referred to in the hon. Member’s question. The Mr Jim Murphy: To ask the Secretary of State for list was sent first to the Finance and Services Committee. Defence what recent discussions his Department has The Chair of the Finance and Services Committee had with its French counterparts on co-operation on wrote to hon. Members on 15 November seeking their surveillance platforms. [26306] views and also wrote to the Administration, Liaison 585W Written Answers29 NOVEMBER 2010 Written Answers 586W and Procedure Committees; the Management Board for answer since May 2010; how many such questions has held all-staff meetings for House staff in addition tabled between May 2010 and 12 November 2010 had to intradepartmental meetings; and views are actively not received a substantive answer by 18 November being sought from trade unions and Members’ staff 2010; and what estimate he has made of the average representative bodies. cost of answering a question for written answer on a named day on the day named for answer in the latest 10:10 Campaign period for which figures are available. [25987]

Simon Hughes: To ask the hon. Member for Mr Charles Walker: The Speaker’s Committee for the Caithness, Sutherland and Easter Ross, representing Independent Parliamentary Standards Authority agreed the House of Commons Commission, whether the on 30 June 2010 to accept questions for written answer House of Commons Commission plans to participate with effect from 5 July 2010. The Speaker’s Committee in the 10:10 campaign to reduce its carbon emissions for the IPSA keeps statistics on the numbers of questions by 10% in one year; and if he will make a statement. dealt with in order that the procedures of the Speaker’s [26759] Committees should remain broadly consistent with each other. John Thurso: The Commission applauds the aims of Since 5 July there have been 41 named day questions the 10:10 campaign, and recognises the significance of to the Committee, of which 32 (78%) were answered the targets it promotes, but does not plan to join it. In substantively on or before the day named; all named October 2009 the Commission agreed it should avoid day questions tabled between May and 12 November lending the House’s name to particular campaigns and have received substantive answers. should participate only in exceptional circumstances. Neither the Speaker’s Committee nor the Independent The House has set a target to reduce its carbon Parliamentary Standards Authority has made an estimate emissions from energy by 7% by 2010-11, relative to of the average cost of answering a named day question 2008-09. In the 12 month period to the end of October on the day named for answer but it is noted that HM 2010 the House has recorded a 5.6% reduction in its Treasury has established the cost of a written PQ as carbon emissions. £149.00: Utilities http://www.cabinetoffice.gov.uk/parliamentary-clerk-guide/ chapter7.aspx

Ms Bagshawe: To ask the hon. Member for Sir Paul Beresford: To ask the hon. Member for Caithness, Sutherland and Easter Ross, representing Broxbourne, representing the Speaker’s Committee for the House of Commons Commission, what the the Independent Parliamentary Standards Authority, combined cost of heating and water utilities was for the how many and what proportion of questions tabled to House of Commons portion of the Parliamentary the Speaker’s Committee for the Independent Parliamentary Estate in each year since 2005. [26015] Standards Authority for ordinary written answer since May 2010 were answered within (a) seven days and (b) John Thurso: The cost of heating alone cannot be 14 days of tabling; how many such questions tabled provided as electricity and gas charges include heating, between May 2010 and 12 November 2010 remained hot water and catering usage and cannot be broken unanswered by 18 November 2010; and what estimate down into these categories. he has made of the average cost of answering a question The water and sewerage charges paid by the House of for ordinary written answer within seven days of tabling Commons for its portion of the Estate for each financial in the latest period for which figures are available. year since 2005 are as follows. [25988]

£ Mr Charles Walker: The Speaker’s Committee for the 2005-06 312,100 Independent Parliamentary Standards Authority agreed 2006-07 278,800 on 30 June 2010 to accept questions for written answer with effect from 5 July 2010. The Speaker’s Committee 2007-08 318,800 for the IPSA keeps statistics on the numbers of questions 2008-09 256,900 dealt with in order that the procedures of the Speaker’s 2009-10 195,800 Committees should remain broadly consistent with each other. Since 5 July there have been 95 questions for ordinary INDEPENDENT PARLIAMENTARY written answer to the Committee. Of these, 42 (44%) STANDARDS AUTHORITY COMMITTEE were answered within seven days of tabling (one with additional material supplied 13 days later). 62 (65%) Departmental Written Questions were answered within 14 days of tabling. These periods include non-sitting Fridays, weekends and parliamentary Sir Paul Beresford: To ask the hon. Member for recesses. Two questions tabled between July and Broxbourne, representing the Speaker’s Committee for 12 November, on 11 November, did not receive substantive the Independent Parliamentary Standards Authority, answers by 18 November but were both answered how many and what proportion of questions tabled to substantively on 19 November. the Speaker’s Committee for the Independent Parliamentary Neither the Speaker’s Committee nor the Independent Standards Authority for written answer on a named day Parliamentary Standards authority has made an estimate were answered substantively before or on the day named of the average cost of answering a named day question 587W Written Answers29 NOVEMBER 2010 Written Answers 588W on the day named for answer but it is noted that HM over £25.5 million for providers based in the West Ham Treasury has established the cost of a written PQ as constituency and £722,000 for providers based in the £149.00: Newham constituency. These figures are drawn from http://www.cabinetoffice.gov.uk/parliamentary-clerk-guide/ allocations to individual providers based in these areas; chapter7.aspx the provider could choose to deliver provision in other areas of the country. Email As set out in “Investing in Skills for Sustainable Growth” (16 November 2010), in the 2011-12 financial Mr Winnick: To ask the hon. Member for Broxbourne, year we will invest £3.9 billion in post-19 further education representing the Speaker’s Committee for the Independent (FE) and skills. The allocation of funding for the 2011/12 Parliamentary Standards Authority, what procedure is academic year will be carried out by the Skills Funding followed in handling emails sent by hon. Members to Agency, over the coming months, in line with the overall the chief executive of the Independent Parliamentary post-19 FE and skills funding envelope. Standards Authority; what arrangements are made to ensure that the chief executive sees such correspondence; Agriculture: Research and what target time is set for the provision of a response. [26780] Mr Meacher: To ask the Secretary of State for Mr Charles Walker: The information requested falls Business, Innovation and Skills what research projects within the responsibility of the Independent Parliamentary designed to assist (a) the development of organic Standards Authority. I have asked IPSA to reply. agriculture and (b) farmers (i) mitigate the effects of and (ii) adapt to climate change have been funded by Letter from Andrew McDonald: (A) each research council and (B) the Science and As Interim Chief Executive of the Independent Parliamentary Technology Facilities Council since 1997; what the (1) Standards Authority, I have been asked to reply to your Parliamentary research topic, (2) start date, (3) cost and (4) project Question asking about the procedure for the handling of emails sent to the Chief Executive (26780). code was of each such project; what the lead institution was in each case; and which such projects have been The majority of correspondence sent to the Independent Parliamentary Standards Authority is dealt with by the Information completed to date. [8039] Team, who have the information and the authority to deal with most queries. Members of this team pass on correspondence Mr Willetts: The Biotechnology and Biological Research when appropriate. Council (BBSRC) and the Economic and Social Research Emails sent direct to me, as Chief Executive, are handled Council (ESRC) have funded projects in both areas, and according to the nature of the query. Routine queries are passed details of these will be placed in the Libraries of the to the Information Team for reply; complaints are handled under House. Some of the data sets do not run for the full IPSA’s complaints procedure; and, in a small number of cases, period since 1997; this is because data for the years queries are dealt with either by my office on my behalf, or by me which are not provided can be obtained only at direct. disproportionate cost. The overall target for correspondence within the organisation is to resolve 90% within five working days. Correspondence to be The Natural Environmental Research Council (NERC) answered by me or by my office specifically is, by its nature, more funded two grants since 1997 whose research included complicated and tends to raise broader policy issues. Consequently, GM plants. Details of these will also be placed in the the expectation is that more items in this category will fall outside Libraries of the House. the overall five-day target. The Arts and Humanities Research Council (AHRC), I approve all letters sent under my name. Engineering and Physical Sciences Research Council (EPSRC), Medical Research Council (MRC) and Science and Technology Facilities Council (STFC) have not funded any projects of the types listed. BUSINESS, INNOVATION AND SKILLS Adult Education: Greater London Aimhigher Programme

Lyn Brown: To ask the Secretary of State for Business, Mr Lammy: To ask the Secretary of State for Business, Innovation and Skills what plans he has for the future Innovation and Skills how many interventions were provision of adult education in (a) West Ham constituency, made by Aimhigher UK in each local education authority (b) Newham and (c) London. [26272] area in England in the last year for which figures are available. [26653] Mr Hayes: The newly published strategy for skills, “Skills for Sustainable Growth”, is based on the coalition Mr Willetts: Information on the number of interventions principles of freedom, fairness and responsibility. Funding made by Aimhigher is gathered by Aimhigher partnerships for adult education will be refocused on those who need on an area basis. This information is not disaggregated it most. Employers and citizens will be asked to take by local authority area. Information provided by greater responsibility for ensuring their own skills needs partnerships showing the number of activities in each are met. And control will be devolved to communities partnership area in the 2009/10 academic year is summarised so they can play a greater role in shaping services. in the following table. For the 2010/11 academic year, over £567 million has In addition, the national roadshow held 4,850 sessions been allocated to further education (FE) colleges and for approximately 70,000 learners. It is not possible to providers based in the London region to support the disaggregate this to show the number of learners per delivery of post 19 FE and skills provision. This included partnership area. 589W Written Answers29 NOVEMBER 2010 Written Answers 590W

The coalition Government is committed to providing colleges, schools and academies showed that involvement a new impetus for social mobility in this country and in the activities provided through Aimhigher was associated will be investing in raising the attainment and aspiration with higher than predicted attainment at GCSE and of young people from disadvantaged backgrounds. greater confidence among learners that they were able Universities and schools have learned a lot from the to achieve. Aimhigher programme about “what works” and can In addition, HEFCE undertook a consultation with build on this in a way that best supports their pupils and 20 schools and academies over the summer. The students. consultation found that schools and academies valued Aimhigher: number of activities by partnership campus visits and summer schools as having the most Partnership Number of activities impact on learners. The coalition Government are committed to providing Aspire 430 a new impetus for social mobility in this country and Bedfordshire and Luton 1,528 will be investing in raising the attainment and aspiration Berkshire 248 of young people from disadvantaged backgrounds. Birmingham and Solihull 1,793 Universities and schools have learned a lot from the The Black Country 3,283 Aimhigher programme about ″what works″ and can Cambridgeshire 580 build on this in a way that best supports their pupils and Cheshire and Warrington 291 students. Coventry and Warwickshire 623 Essex 4,581 Apprentices Greater Manchester 3,790 Greater Merseyside 988 Andrew Stephenson: To ask the Secretary of State for Hampshire and Isle of Wight 1,368 Business, Innovation and Skills what steps he is taking Herefordshire and Worcester 444 to encourage small and medium-sized enterprises to Hertfordshire 555 take on apprentices. [25901] Kent and Medway 929 LIFE—Bournemouth and Poole 852 Mr Hayes: We want to make it easier for businesses of London North West and Central 1,270 all sizes to take on apprentices and access the benefits London East Thames Gateway 463 they can bring to the workplace, which is why one of London South 783 our first announcements was to redeploy £150 million Milton Keynes 1,156 from Train to Gain to create 50,000 more apprenticeship Norfolk 395 places. Just last month, we built on this by confirming North Yorkshire 1,122 that we will boost spending on apprenticeships by up to Peninsula 898 £250 million above the funding inherited from the last Government, before the end of the spending review Shropshire 300 period. Staffordshire 1,163 Suffolk 409 Small businesses are the cornerstone of our economy Surrey 258 and high quality training opportunities like apprenticeships Sussex 5,402 are key to supporting their growth and success. I know Tyne and Wear and 862 that small businesses place great value on apprenticeships Northumberland and are prepared to invest in them. Lincolnshire and Rutland 865 Group training models have an important role to Derbyshire 1,339 play in helping us to reach more small and medium-sized County Durham 311 businesses—providing them with a means of sharing Cumbria 480 the administrative burdens and costs. I am an advocate Lancashire 1,428 of the Group Training Association (GTA) model and Leicestershire 665 recently asked the Skills Funding Agency (SFA) to look Northamptonshire 545 at what they could do to further support the GTA Nottinghamshire 1,039 network in England. South Yorkshire 3,590 Apprentices: Public Sector Tees Valley 1,696 The Humber 1,314 Paul Uppal: To ask the Secretary of State for West Yorkshire 2,944 Business, Innovation and Skills if he will take steps to West Area 1,564 increase the number of apprenticeships available in the Total 54,544 public sector; and if he will make a statement. [26289]

Mr Lammy: To ask the Secretary of State for Mr Hayes: As set out in our recently published strategy Business, Innovation and Skills what assessment his Skills for Sustainable Growth, this Government are Department has made of the satisfaction level among committed to expanding apprenticeships. By 2014-15, schools participating in the Aimhigher programme. we will have in place sufficient funding to train 75,000 [26663] more adult apprentices than the previous Government were providing. Mr Willetts: Research conducted by the National While Government funding supports training for Foundation for Educational Research (NFER) for HEFCE apprentices, we rely on employers to make the opportunities published earlier this year reported that evidence from available to their new and existing staff. As employer of 591W Written Answers29 NOVEMBER 2010 Written Answers 592W around one-fifth of the country’s work force, the public whether or not it will be able to offer support for UK sector will be a key part of this. Apprenticeships are companies to attend the Ceramics China Exhibition in now available in around 200 job roles and are no longer light of the spending review outcome. only about traditional trades in the private sector. I want to see an increase in public sector apprenticeships Commodities Trading because they improve productivity and offer a great way to meet the skills needs of the work force, which will Mr McCann: To ask the Secretary of State for ultimately result in better public service delivery. Business, Innovation and Skills what his policy is on However, I do not believe we should try to achieve the regulation of commodities derivatives trading in that through arbitrary central Government targets. Instead, the EU. [26402] Government should encourage and enable public sector Mr Hoban: I have been asked to reply. employers to take advantage of apprenticeships. That is why the National Apprenticeship Service has representatives There are a number of EU initiatives under way in place in every region of the country to support public relevant to the regulation of commodity derivatives. sector employers with advice and guidance. We have These include the review of the Markets in Financial also ensured that within central Government apprentices Instruments Directive (MiFID), on which a consultation are exempt from the civil service-wide recruitment freeze. document is expected shortly from the European I was also pleased to offer my support to the Department Commission, and the proposed Regulation on Over the for Health who announced earlier this month that the Counter (OTC) Derivatives, Central Counterparties and NHS apprenticeship programme will receive £10 million Trade Repositories. The Government are actively engaged to create around 6,000 new NHS apprenticeships. in these processes. In addition I refer the hon. Member to the answer I Business: Departmental Co-ordination gave on 11 November 2010, Official Report, column 475W, to the hon. Member for Sefton Central (Bill Esterson). Julian Smith: To ask the Secretary of State for Business, Innovation and Skills what mechanisms are Co-operatives in place for the (a) management and (b) cross- departmental co-ordination of the Government’s Grahame M. Morris: To ask the Secretary of State relationship with UK FTSE 100 companies. [25417] for Business, Innovation and Skills what progress he has made in supporting the creation and expansion of Mr Davey: Most day-to-day stakeholder engagement co-operatives; and what his policy is on the provision of on specific areas of policy development, implementation Government support for the establishment of new and review is led by policy officials—this includes but is co-operatives. [24898] not limited to FTSE 100 companies. A central stakeholder engagement team is responsible for ensuring that BIS Mr Davey: The Government are committed to adopts a well co-ordinated approach to engaging with encouraging new and existing businesses to consider the BIS stakeholders. The stakeholder engagement team benefits of models—including co-operatives—which enable gives the Department a strategic oversight, ensuring co-ownership and engagement by employees, by customers effective use of resource across the Department and its or by wider communities—while acknowledging that priorities, and identifying gaps and opportunities. such models will not be appropriate for all businesses. The Department for Business, Innovation and Skills Ministers and senior officials have regular and is currently examining the information made available appropriate contact through co-ordinated and effective on: visits and events, which CEOs and Chairs of FTSE companies regularly attend. www.Businesslink.gov.uk to ensure that businesses and other organisations are Across Whitehall, formal and informal networks exist able to make appropriate choices about the legal forms to share information and co-ordinate where issues and and ownership structures that best suit their operations. policies impact on core stakeholders. This happens at policy level and across stakeholder engagement teams. The Government are also developing a suite of new Rights to Provide for public sector workers to form employee-led mutuals to take over the services they Ceramics: Trade Fairs deliver. The Cabinet Office is leading work with Departments to explore in detail how such rights can be Robert Flello: To ask the Secretary of State for applied across the public sector, including by building Business, Innovation and Skills if his Department will on the lessons emerging from 12 pathfinder mutuals provide assistance to (a) Anderen Ltd in Stoke-on- launched in August. In support of this commitment a Trent South constituency and (b) other ceramics number of leading organisations in the mutual sector companies to attend the Ceramics China Exhibition in have now launched a freely available phone and web-based May 2011. [26802] information service for those interested in taking this agenda forward. The Government will announce further Mr Prisk: Anderen Ltd is in contact with UK Trade progress with this policy in a White Paper on Public and Investment (UKTI), and a UKTI international Service Reform in early 2011, and will continue to trade adviser is currently working with them. develop the necessary support and guidance in this Staffordshire chamber of commerce has actively context. supported the development of international trade The Government are also committed to further opportunities for the ceramics industry in certain key modernisation of the legislative framework for co-operatives, markets, including China. UKTI is currently considering including by bringing forward the necessary legislation 593W Written Answers29 NOVEMBER 2010 Written Answers 594W to implement the Co-operative and Community Benefit Mr Willetts: As set out in, “Investing in Skills for Societies and Credit Unions Act 2010, and by relaying Sustainable Growth” strategy document, over the next The Legislative Reform (Industrial and Provident Societies few months we will engage with colleges, training and Credit Unions) Order 2010. organisations and other stakeholders on how a discretionary learner support fund should be managed in the future. Departmental Public Expenditure This will ensure the fund recognises the characteristics of different types of learners and identifies the particular Ian Lucas: To ask the Secretary of State for Business, delivery arrangements appropriate for the FE and Skills Innovation and Skills what items of expenditure sector. Statutory duties do not apply to this Fund and Ministers in his Department have authorised since his we have no plans that they will apply in the future. appointment. [21728] FE institutions are not required to fulfil any statutory duties in relation to the Discretionary Learner Support Mr Davey [holding answer 4 November 2010]: Fund and we have no plans that they will be required to Expenditure by my Department for both the current do so in the future. and previous Administrations was approved by Parliament through the parliamentary estimates process. Budgets Economic Growth are delegated to the accounting officers of departments by the Treasury in line with the approved estimates. John Mann: To ask the Secretary of State for Accounting officers are responsible for expenditure within Business, Innovation and Skills on what date he expects departments. Some specific items of expenditure have his Department to publish its White Paper on Growth. to be individually authorised by Ministers under the [27475] legislation relating to that expenditure, or as an HM Treasury requirement. Mr Prisk: Returning the UK economy to sustainable Since my appointment, Ministers in my Department growth is the overriding priority of this coalition have authorised the following: Government. BIS and HM Treasury are jointly leading Additional Hours of Advice project—to extend the opening work to explore routes to a more balanced and sustainable hours within the Citizen’s Advice local offices. model for growth. “The path to strong, sustainable and Blackpool Leisure Assets—a joint public sector-led proposal balanced growth” published today (29 November 2010), to acquire Blackpool Tower and Winter Gardens involving the launched a comprehensive review of the Government’s north west development agency. work to encourage economic growth. The review will Bristol and Bath Science Park—a proposal by the south west last the whole Parliament, with a first report by Budget regional development agency to develop a science park on the 2011. home of the National Composite Centre. The student support grant and loan regulations which are EU Emissions Trading Scheme authorised in the summer preceding the academic year to which they apply. Ian Swales: To ask the Secretary of State for The annual Skills Investment Strategy setting out the allocations Business, Innovation and Skills whether he has had for further education for the next financial year. discussions with the Secretary of State for Energy and UK-China links. Climate Change on ensuring that Phase 2 of the Scholarships for service leavers. European Union Emissions Trading Regime allows for Digital life skills. the expansion of carbon-efficient UK manufacturing All proposed consultancy expenditure and expenditure outside companies. [26586] the freeze on recruitment and marketing, and remuneration above the Prime Minister’s salary. Mr Prisk [holding answer 25 November 2010]: The Department had extensive discussions with the Department Departmental Regulation of Energy and Climate Change and its predecessor DEFRA when setting the UK National Allocation Mr Redwood: To ask the Secretary of State for Plan for Phase 2 of the EU Emissions Trading System. Business, Innovation and Skills what regulations The plan includes rules for allocating allowances to sponsored by his Department have been revoked in the significant capacity extensions. The plan was approved last six months. [24383] by the European Commission prior to the commencement of Phase 2 in 2008. Mr Prisk: This Department has not yet revoked any My officials are in close discussion with DECC and significant regulatory measures. However, we have launched the European Commission to ensure the needs and a review of employment law, and are conducting a concerns of carbon-efficient UK manufacturing companies major fundamental review scrutinising the overall stock are taken into account in setting the rules for significant of BIS regulation, alongside legacy measures inherited expansions in future phases of the EU Emissions Trading from the previous Administration. System.

Discretionary Learner Support Fund Export Credit Guarantees

Lisa Nandy: To ask the Secretary of State for Graham Jones: To ask the Secretary of State for Business, Innovation and Skills whether further Business, Innovation and Skills what steps the Export education institutions will be required to fulfil any Credits Guarantee Department is taking to support statutory duties under his plans for the Discretionary local businesses to compete in international export Learner Support Fund. [26975] markets. [26171] 595W Written Answers29 NOVEMBER 2010 Written Answers 596W

Mr Davey: ECGD engages directly with exporters, OECD Council Recommendation on Common exporter representative bodies and banks that provide Approaches on the Environment and Officially Supported export finance to raise awareness of its services and Export Credits that establishes the basis upon which the products. ECGD also markets its facilities overseas so environmental, social and human rights impacts of that projects sponsors and buyers are aware of the projects must be addressed. availability of export finance to assist the purchase of supplies from the UK. Flexible Working

Graham Jones: To ask the Secretary of State for Mike Weatherley: To ask the Secretary of State for Business, Innovation and Skills what estimate he has Business, Innovation and Skills what consultation his made of the financial benefit to the UK of loans Department has undertaken with the public sector and underwritten by the Export Credits Guarantee private sector employers on his plans to extend the Department in 2010-11. [26175] right to request flexible working to all employees. [27243] Mr Davey: No specific assessment has been made of the financial benefit to the UK economy of loans Mr Davey: I will consult on the extension to the right underwritten by ECGD in 2010-11, and there are no to request flexible working to all employees in the new plans to do so. ECGD’s statutory purpose is to support year. exports which it achieves by guaranteeing loans made available from eligible banks to finance export contracts Fulbright Commission obtained by UK exporters and insuring exporters against non-payment. Such export contracts benefit the exporters Mr Kennedy: To ask the Secretary of State for involved and also companies in their supply chains Business, Innovation and Skills pursuant to the answer including SMEs. ECGD is tasked to operate so as to from the Parliamentary Under-Secretary of State of 22 break even over time; presently, it is a net financial November 2010, Official Report, House of Lords, contributor to the Exchequer. column 959, what legal status the agreement signed on 22 September 1948 establishing the US-UK Fulbright Graham Jones: To ask the Secretary of State for Commission has; whether the agreement constitutes a Business, Innovation and Skills what the total risk legally binding treaty; and if he will make a statement. liability of overseas loans guaranteed by the Export [26892] Credits Guarantee Department is. [26178] Mr Willetts: I confirm that the agreement, as amended, Mr Davey: The Export Credits Guarantee Department’s constitutes a legally-binding treaty. While the terms of contingent liability in respect of overseas loans it has the agreement are binding, the level of annual funding guaranteed as at 31 October 2010 is £12,329 million. of the Fulbright scholarship programme is not stipulated in the treaty. The Government support the programme Graham Jones: To ask the Secretary of State for and we are committed to providing it with the best Business, Innovation and Skills how much the Export possible settlement. Credits Guarantee Department has allocated to Further Education: Finance support loans from British banks in 2010-11. [26179]

Mr Davey: ECGD does not allocate any particular Teresa Pearce: To ask the Secretary of State for amounts to support loans from British banks. It guarantees Business, Innovation and Skills (1) what estimate he loans made available by eligible banks to finance specific has made of the likely effect of the proposed reduction export contracts obtained by UK exporters according in funding available to support students in further to its risk capacity for a particular country, the education on the number of students who will study at creditworthiness of the buyer/borrower and on terms a further education institution in the next academic and conditions that are appropriate to the export transaction year; [26506] being financed. (2) if he will undertake an equality impact assessment of the proposed reduction in funding for Export Credits Guarantee Department financial support for students in further education in academic year 2011-12. [26507] Gemma Doyle: To ask the Secretary of State for Business, Innovation and Skills if he will (a) review the Mr Hayes: As outlined in “Investing in Skills for operation of the Export Credits Guarantee Department Sustainable Success” published on 16 November 2010 (ECGD) and (b) ask that review to consider the merits the 2010-11 baseline for adult learner support was of requiring future projects supported by the ECGD to £144,398,000, this will increase to £151,398,000 in 2011-12. be assessed in relation to environment sustainability We have also published an indicative budget for 2012-13 and human rights standards. [26369] of £163,768,000. An equality impact assessment for “Skills for Sustainable Mr Davey: I will reply to the hon. Member as soon as Growth” and “Investing in Skills for Sustainable Success” possible. was also published on 16 November 2010. The Government have no plans to change to ECGD’s role and status. Teresa Pearce: To ask the Secretary of State for It is ECGD’s policy to comply with international Business, Innovation and Skills (1) whether the agreements which apply to the operations of Export methodology used to determine the level of payments Credit Agencies. In this respect, ECGD applies the from the Discretionary Learner Support Fund will take 597W Written Answers29 NOVEMBER 2010 Written Answers 598W into account the number of young people in a their institution’s Discretionary Learner Support Fund household who are in further or higher education in the in the 2011-12 academic year. [26513] academic year 2011-12; [26508] (2) whether work-based learners will be eligible to Mr Hayes: Currently, each college has a published access the Discretionary Learner Support Fund in the policy on how discretionary learner support funds are 2011-12 academic year; [26509] distributed. Learners who are dissatisfied with that procedure can lodge an appeal using the college’s own (3) whether students who had not completed a internal appeal system. If they are still dissatisfied with course in a previous academic year will be eligible for that outcome they can access/utilise the Skills Funding support from the Discretionary Learner Support Fund Agency appeals procedure. It is expected that the same in the 2011-12 academic year. [26510] or a similar approach will be adopted for the 2011/12 academic year. Mr Hayes: The Government are committed to providing targeted financial support to enable students to access Teresa Pearce: To ask the Secretary of State for learning and training. “Investing in Skills for Sustainable Business, Innovation and Skills what audit procedures Growth”, published on 16 November 2010, announced will be put in place in respect of the administration by that the current arrangements for learner support will individual institutions of the Discretionary Learner start to change from the 2011/12 academic year. An Support Fund in the 2011-12 academic year. [26514] enhanced discretionary learner support fund will be created within the next two years. We will work closely Mr Hayes: The Government have announced that the with the sector on these changes and will announce current arrangements for learner support will start to more detail on the allocation of funds in due course. change from the 2011/12 academic year. Providers currently in receipt of Government support must have administrative Teresa Pearce: To ask the Secretary of State for procedures that record the details of learner applications Business, Innovation and Skills what assessment he has for financial assistance. They are also required to submit made of the likely effects on equality of access to information detailing how funds have been used. The (a) (b) further education at local and regional level of data is used to demonstrate the efficacy of and to further education institutions making available demonstrate probity in the use of public funds. different levels of funding to assist students. [26512] Further Education: Student Numbers Mr Hayes: The equality impact assessment, recently carried out by BIS on the funding systems for 2011/12 Lisa Nandy: To ask the Secretary of State for and 2012/13, was published following a consultation on Business, Innovation and Skills what estimate he has the funding process. This can be referred to at made of the number of people who started a course of http://www.bis.gov.uk/assets/biscore/further-education-skills/ study at a further education college in January of each docs/s/10-1284-skills-for-sustainable-growth-investing- of the last five years. [26430] equality-impact.pdf Mr Hayes: The following table shows the number of Teresa Pearce: To ask the Secretary of State for learners participating on further education courses in Business, Innovation and Skills whether there will be a England by provider type in 2004/05 to 2008/09, the central appeals system for students who wish to dispute latest year for which full year data are available. Information a funding decision in respect of an allocation from is not available specifically for starts in January.

Participation on further education courses by provider type, 2004/05 to 2008/09 2004/05 2005/06 2006/07 2007/08 2008/09

General FE colleges 2,960,300 2,632,200 2,204,300 2,205,700 2,430,600 Total further education 5,712,500 5,022,400 4,231,900 4,360,700 4,837,100 Notes: 1. All figures are rounded to the nearest 100. 2. Information in this table is based on all Government-funded learners. 3. These data include FE, Apprenticeships/Work Based Learning, Adult Safeguarded Learning, Train to Gain and University for Industry funding streams. 4. All further education includes participation in general further education colleges, sixth form colleges, special colleges, private sector/public funded and other public funded providers i.e. local authorities and higher education institutions. 5. Figures for general further education colleges do not include sixth form colleges and special/specialist colleges. Source: Individualised Learner Record

Information on the number of learners participating recent estimate of the average cost of travel per day for in further education is published in a quarterly statistical a student at a further education institution in (a) first release (SFR). The latest SFR was published on 16 England and (b) each region. [26434] November 2010: http://www.thedataservice.org.uk/statistics/statistical firstrelease/ sfr_current Mr Hayes: Research published in 2003 estimated the Further Education: Transport average travel costs per month for all students (young people and adults) attending further education institutions Lisa Nandy: To ask the Secretary of State for as £42 for full-time students and £21 for part-time Business, Innovation and Skills whether he has made a students (DFES (2003) A study of learners in further 599W Written Answers29 NOVEMBER 2010 Written Answers 600W education). No more recent estimate has been made, Goldsmiths College and no estimate has been made of average travel costs per day by region. Nicholas Soames: To ask the Secretary of State for Business, Innovation and Skills what recent representations he has received on the governance of Goldsmiths College; and if he will make a statement. Lisa Nandy: To ask the Secretary of State for Business, [26761] Innovation and Skills what financial assistance will be available to help students in further education meet Mr Willetts: The Department has not received any travel costs in the academic year 2011-12. [26435] representations on this matter. Nicholas Soames: To ask the Secretary of State for Business, Innovation and Skills what research grants Mr Hayes: As outlined in the strategy document has his Department given to Goldsmiths College in ‘Investing in Skills for Sustainable Growth’, published each of the last five years; and for what projects. on 16 November 2010, the current arrangements for [26762] learner support will start to change from the 2011/12 academic year. An enhanced discretionary learner support Mr Willetts: This Department does not directly provide fund will be created within the next two years. We will research grants to Goldsmiths College. The Engineering work closely with the sector on these changes to ensure and Physical Sciences Research Council, the Economic funds are targeted on helping those learners facing and Social Research Council and the Arts and Humanities financial difficulties. As with the current funding Research Council provided 38 grants for a range of arrangements, this may include support for travel costs research at a value of £8,368,310 in the period 2005-10. where local authority funding is not available. A full breakdown is as follows.

AHRC awards made at Goldsmiths College 2005 to 2010 Amount Start date Principal investigator Department Project title awarded (£)

1 April 2005 Professor Nicholas Thomas Department of Melanesian art: objects, narratives 530,221.00 Anthropology and indigenous owners

1 April 2006 Professor Vikki Bell Department of ‘Justice Demands’ and the negotiated 31,901.00 Sociology process of art-work production in Argentina and Northern Ireland

1 January 2007 Dr Andrea Phillips Department of Visual Curating Architecture: researching 153,730.00 Arts the influence of architectural ideas in contemporary curatorial practice

1 March 2007 Professor Janis Jefferies Constance Howard E-Static Shadows 146,873.00 Resource and Research Centre in Textiles

1 September 2007 Dr Nirmal Puwar Department of Noise of the Past 165,938.00 Sociology

12 January 2009 Professor Robert Gordon Pinter Centre for Beyond the Linear Narrative: 402,998.05 Performance and Fractured Narratives in Writing and Creative Writing Performance in the Postcolonial Era

1 April 2009 Dr Gavin Butt Visual Cultures Performance Matters 349,665.00

Total 1,781,326.05

Nicholas Soames: To ask the Secretary of State for Skills Funding Agency (SFA); and other grants from Business, Innovation and Skills how much Goldsmiths central Government and public bodies such as local College received from the public purse in each of the authorities and health authorities, and the EU Commission. last five years; and how many (a) staff and (b) students it had in each such year. [26763] Higher education institutions have many other sources of income, such as research funding and donations so the total income of universities cannot be assumed Mr Willetts: The information is in the table. from this table. More detailed breakdowns of income Total public funding has been defined as: tuition fee sources are published by HESA in volumes such as ‘HE categories which are predominantly publicly funded; all Finance Plus and Resources of Higher Education Funding Council grants—including grants from the Institutions’. Higher Education Funding Council for England (HEFCE), the Training and Development Agency (TDA) and the 601W Written Answers29 NOVEMBER 2010 Written Answers 602W

Total staff (excluding Higher education Public income (£000) Academic staff Non-academic staff atypical) students

2004/05 33,006 370 515 885 7,270 2005/06 37,546 385 480 860 7,400 2006/07 43,539 435 540 970 7,450 2007/08 47,546 565 525 1,090 7,495 2008/09 48,425 585 555 1,140 7,655 Source: Higher Education Statistics Agency (HESA).

Higher education students includes postgraduates academy schemes, such as the University Research and undergraduates Staff and student figures represent Fellowships, Newton International Fellowships, and headcounts of students, rather than full-time equivalents. Dorothy Hodgkins Fellowships, which seek to attract Atypical staff are those whose working arrangements the best early career researchers from around the world are not permanent, involve complex employment to UK institutions. Research Councils UK (RCUK) are relationships and/or involve work away from the supervision also working to ensure the quality of research skills is of the normal work provider. improved and that researcher training will become increasingly part of mainstream research practise. Graduates: Teachers RCUK remains fully committed to the maintenance of a high level skills agenda through its research careers Mr Jim Cunningham: To ask the Secretary of State activities, support for the Concordat to Support the for Business, Innovation and Skills what steps he plans Career Development of Researchers. RCUK also recognises to take to ensure that lectureships in further and higher significant progress made by the sector since 2002. education institutions remain an attractive career choice for graduates; and if he will make a statement. [27095] Higher Education

Mr Hayes: Further education institutions are responsible Jake Berry: To ask the Secretary of State for for recruiting their own staff. Teaching in the FE sector Business, Innovation and Skills how many people were is generally not a choice of first career for graduates. in higher education in (a) England, (b) Lancashire For the majority of teachers and trainers in the sector, it and (c) Rossendale and Darwen constituency in each is a second or third career. year from January 2005 to January 2010. [25262] The sector requires highly skilled professionals from all walks of working life—plumbers, engineers, technicians, Mr Willetts: The latest available information on the beauty therapists—to have reached the stage of their numbers of enrolments from England, Lancashire local first career where they have the capability and capacity authority, and Rossendale and Darwen constituency on to train future generations. higher education courses at UK higher education Measures have been taken to enhance and recognise institutions is shown in the table. Figures for the 2009/10 professional status. From September 2007 regulations academic year will become available from the Higher have required all new teachers to the FE sector to be Education Statistics Agency in January 2011. Comparable appropriately qualified in their own subject specialism figures for students enrolled on higher education courses and hold or work towards achieving the required teaching at further education colleges are not available. qualifications and gain qualified teaching learning skills The Department has recently received updated postcode (QTLS) status. Around 40% of FE teachers have a information; therefore figures may not match those degree, but many hold a wide range of other qualifications previously published. that are relevant to their area of vocational expertise. Enrolments1 from England2, Lancashire local authority3 and Following the completion of their diploma in teaching, Rossendale and Darwen parliamentary constituency3: UK higher the teacher undergoes professional formation to education institutions4 academic years 2004/05 to 2008/09 demonstrate effective teaching practice in order to gain Rossendale full professional status of qualified teacher learning Academic year England Lancashire and Darwen and skills (QTLS) which is conferred by the Institute for 2004/05 1,433,010 37,815 2,815 Learning (IfL). 2005/06 1,466,660 38,045 2,860 Higher education institutions are responsible for 2006/07 1,461,895 38,710 2,915 recruiting their own staff and promoting higher education 2007/08 1,454,995 31,900 2,515 as a positive career option, to graduates and others. The 2008/09 1,504,500 34,340 2,765 higher education sector has published a report outlining 1 Covers enrolments to all levels and modes of study. the benefits of working on the sector, which is available 2 Covers English-domiciled enrolments. here 3 Excludes those enrolments whose local authority or constituency http://www.ucea.ac.uk/objects_store/ information could not be established due to missing or invalid postcode where_are_we_now._the_benefits_of_working_in_he.pdf information. 4 Excludes the Open University due to inconsistencies in their coding The report highlighted the quality of working life in of students across the time series. higher education and indicated it compared well with Note: other sectors. Figures are based on a HESA standard registration population and have been rounded to the nearest five. However, the UK Government fund a number of Source: dedicated postdoctoral fellowship schemes, notably national Higher Education Statistics Agency (HESA) 603W Written Answers29 NOVEMBER 2010 Written Answers 604W

Higher Education: Admissions to ensure any future funding builds on the report’s recommendations, particularly in terms of securing even Lyn Brown: To ask the Secretary of State for greater value for money and strengthen the governance Business, Innovation and Skills how many young of the project. people (a) from low income families and (b) in total resident in (i) West Ham constituency, (ii) Newham and (iii) London attended (A) university and (B) a Russell Industry: Academics Group university in (1) 2008, (2) 2009 and (3) 2010. [26492] Simon Kirby: To ask the Secretary of State for Business, Innovation and Skills what his most recent Mr Willetts: The latest available information from estimate is of the contribution to gross national the Higher Education Statistics Agency (HESA) is shown product generated by collaboration between industry in the table. Figures for young people from low income and academia. [25458] families are not available, therefore figures for young people from the bottom four socio-economic classes Mr Willetts: The Department does not undertake (SECs) has been provided as an alternative. Figures for estimates along the lines requested. However, overall, the 2009/10 academic year will be available in January universities are estimated to be worth £59 billion1 to the 2011, and for 2010/11 in January 2012. economy, putting the higher education sector ahead of The Department has recently received updated postcode agriculture, advertising, pharmaceutical and postal information therefore figures may not match those industries. previously published. Due to issues with SEC data in 1 “The impact of universities on the UK economy, 4th edition, 2008/09, figures in the answer are not comparable with published in November 2009 by Universities UK” SEC data for any earlier years. Young1 undergraduate enrolments by socio-economic class (SEC) and type of institution from West Ham parliamentary constituency2 , Internet Newham local authority2 and London Government office region2 UK higher education institutions, academic year 2008/09 Gregg McClymont: To ask the Secretary of State for SECs 4-73 All enrolments Business, Innovation and Skills what the Government’s Russell Russell policy is on the principle of internet neutrality; and if Group Group he will make a statement. [26821] UK HEIs HEIs UK HEIs HEIs

West Ham 500 35 1,605 140 Mr Vaizey: The Government are absolutely committed Newham 1,350 95 4,285 370 to an open internet. The internet has brought huge London 24,075 3,675 103,935 24,060 economic and social benefits across the world precisely 1 Covers enrolments under 21 years old. because of its openness, and that must continue. 2 Excludes enrolments whose local area could not be established due The Government expect all operators providing an to missing or invalid postcode information. 3 For all young undergraduate enrolments, 31% of data on SEC was internet access service—both fixed and mobile—to offer missing. all legal content. Consumers should always be able to Note: access any content or service they want to and content Figures are based on a HESA standard registration population and providers and applications should be able to access have been rounded to the nearest five. consumers. ISPs should not be able to discriminate Source: unfairly against services or users. That means no blocking Higher Education Statistics Agency (HESA). or discriminatory degradation of services or applications Higher Education: Pay for commercial reasons. There is not yet any evidence that discriminatory Dr Pugh: To ask the Secretary of State for Business, practices are emerging, or that there is a problem with Innovation and Skills what information his Department regards to how ISPs or networks manage the traffic that holds on the salary level of each vice-chancellor of a flows over them (something they all engage in for technical university. [24171] reasons to deliver the best possible service to consumers). And this is enforced by the initial responses to Ofcom’s Mr Willetts: The Department does not hold this recent consultation on the issue. In addition, under new information centrally. Higher education institutions are provisions in the Electronic Communications Framework required to disclose remuneration of the head of institution review operators must present information about their in their financial statements. service, including the nature and extent of their traffic management policies and their impact on service quality Illegal Money Lending in a clear, visible and easy to understand form for all their customers. Margaret Hodge: To ask the Secretary of State for A contributing factor to the success of the internet Business, Innovation and Skills what plans he has for has been the lack of legislative restraints that have been the future funding of the illegal money lending project. placed on it. It is our belief that improved transparency, [26384] along with a competitive market place and the ability to switch providers will mean that regulation in this area Mr Davey: The future of the illegal money lending will be unnecessary. It is important that we give the project is currently being considered as we work through market the opportunity to self regulate but Ofcom will the implications of the spending review. We have carried closely monitor how the market develops and if it out an in-depth evaluation of the project and will work develops in an anti-competitive way they will intervene. 605W Written Answers29 NOVEMBER 2010 Written Answers 606W

Manufacturing Industries: Qualifications Mr Willetts: In 2008/09, the latest year for which student numbers data are available, there were 251,310 Paul Uppal: To ask the Secretary of State for students. This figure relates to students studying in Business, Innovation and Skills if he will take steps to higher education institutions and comes from the Higher meet demand for manufacturing skills through the Education Statistics Agency (HESA). It does not include Business Improvement Techniques National students at further education colleges, English language Vocational Qualification. [26287] schools and independent institutions. Limited data are available on the value of international Mr Hayes: The National Vocational Qualification in (non-EU) students to the UK economy, particularly for Business Improvement Techniques is available on the students studying below higher education level. The Qualifications and Credit Framework and has been Department has commissioned research seeking to address developed with SEMTA, the Sector Skills Council for this, which is expected to be available early in 2011. Engineering, to meet the skills needs of the sector. The Universities UK published a report entitled “The impact Skills Funding Agency has confirmed funding for this of universities on the UK Economy”, in November qualification for this academic year and plans to confirm 2009 which indicated that universities received £1.9 billion future funding arrangements by January 2011. in funding from international student tuition fees in 2007/08 and estimated that international students Office of Fair Trading: Competition Commission contributed a further £2.3 billion to the economy in other expenditure. Mr Andrew Turner: To ask the Secretary of State for A copy of this report has been placed in the House of Business, Innovation and Skills what assessment he has Commons Library. made of the effects of merging the Office of Fair The £1.9 billion figure from tuition fee funding comes Trading and the Competition Commission on the time from data collected by HESA. In 2008/09, the latest taken to complete investigatory procedures. [26881] year for which student numbers data are available, universities received £2.2 billion in tuition fees from Mr Davey: In considering merging the Competition non-EU students. Commission with the competition functions of the The figures for income from tuition fees and student Office of Fair Trading to create a single competition enrolments refer to the academic year, and not the and markets authority, one of Government’s primary financial year. aims is to deliver more streamlined and consistent processes for businesses that are subject to its investigations. The Government will fully consult on their proposals in the new year and will also publish a draft impact assessment Phoenix Companies for consultation. Mr Spencer: To ask the Secretary of State for Overseas Companies: Taxation Business, Innovation and Skills if he will bring forward proposals to restrict the practice of establishing Paul Uppal: To ask the Secretary of State for phoenix companies. [27108] Business, Innovation and Skills (1) if he will bring forward proposals to require UK-based companies to Mr Davey: Financial failure and wrongdoing should report on their tax liabilities in developing countries; not be considered to be the same thing and the current and if he will make a statement; [26288] legal framework seeks to strike the right balance between (2) what recent progress has been made on the interests of creditors and the need to promote implementing country-by-country reporting on the entrepreneurial activity. A phoenix company does not necessarily involve wrongdoing. When a company fails, financial affairs of multinational companies. [26290] it may be that the directors offer the best price for the assets and that is the best deal for the creditors of the Mr Davey: The OECD’s task force on tax and failed company. It may also provide opportunities for development is currently conducting a detailed examination employees. of the issue of country-by-country reporting. This task force is expected to report within a year. The Government However we must have a regime which enables support this work and await the outcome. While this appropriate action to be taken against those who are work is in progress we remain of the view that voluntary unfit to have the protection of limited liability. I assure initiatives are effective tools. my hon. Friend that we do have in place, and make use of, such a regime. In addition the EU Commission has recently launched a public consultation to gather views on financial reporting In 2009-10 an average of just over five directors were on a country-by-country basis by multinational companies. disqualified every working day, removing them from the marketplace and making it safer for people to do business. Overseas Students

Dr Huppert: To ask the Secretary of State for Post Offices Business, Innovation and Skills how many non-EU students studied in the UK in the latest year for which Brandon Lewis: To ask the Secretary of State for figures are available; what estimate he has made of the Business, Innovation and Skills if he will assess the contribution to the UK economy of such students in merits of establishing a Post Office Diversification Fund that year; and how much funding universities received for England akin to those in operation in Scotland and from fees paid by such students. [27175] Wales; and if he will make a statement. [25887] 607W Written Answers29 NOVEMBER 2010 Written Answers 608W

Mr Davey: “Securing the Post Office Network in the Mr Willetts: The European Council endorsed in June digital age” was published on 9 November 2010 and sets the EU target of spending 3% of EU gross domestic out this Government’s strategy for the post office network product on research and development by 2020. At the over the spending review period. We are committed to national level we will be monitoring business expenditure the future of the network, and will develop new revenues on research and development as an indicator of UK for sub postmasters through the Post Office becoming a research and development activity. front office for Government, expanding its financial services offering, and modernising its network. This is South East England Development Agency supported by £1.34 billion of funding. There are no current plans to provide additional funding for a Mark Reckless: To ask the Secretary of State for diversification fund in England. Business, Innovation and Skills what plans he has for the future of assets owned by the South East England Post Offices: ICT Development Agency in Medway following the closure of that Agency. [26130] Mr Nicholas Brown: To ask the Secretary of State for Business, Innovation and Skills what recent assessment Mr Prisk: As set out in the White Paper on local he has made of the performance of the Horizon growth, regional development agency assets and liabilities computer programme; and what (a) errors relating to will be disposed of in line with a clear set of shared the reconciliation of accounts were reported to his principles which include a key aim of achieving the best Department and (b) remedial action was taken in the possible outcome for the region consistent with achieving latest period for which figures are available. [26688] value to the public purse.

Mr Davey: The performance of the Horizon computer Students: Fees and Charges system is an operational matter for Post Office Ltd. I have therefore asked Paula Vennells, the managing Mr Jim Cunningham: To ask the Secretary of State director of Post Office Ltd, to respond directly to the for Business, Innovation and Skills what plans he has right hon. Member and a copy of her reply will be for the long-term future of the cap on university tuition placed in the Libraries of the House. fees; under what circumstances higher education institutions may disregard the cap; and how he expects Research application of the real interest taper to affect (a) educational institutions and (b) students attending Mr Jim Cunningham: To ask the Secretary of State such institutions. [27089] for Business, Innovation and Skills what steps he plans to take to encourage small and medium-sized enterprises Mr Willetts: The Government have set out progressive to continue to undertake research and development. plans for reforms to higher education and student finance [27091] to ensure that we maintain England’s world class university sector. Mr Willetts: This Government are committed to We are proposing a basic threshold of £6,000 a year working with partners in industry and academe to for tuition charges, and it will be up to individual HEIs enhance the effectiveness of the innovation system to to decide what they charge up to this level, including support successful UK innovation and we are considering whether they charge different levels for different courses. the recommendations from Sir James Dyson’s Report, Universities or colleges wishing to charge students “Ingenious Britain”. more than £6,000 a year, up to a ceiling of £9,000, will We will consult with business in the autumn on the be expected to draw up an access agreement with the taxation of intellectual property and the support that R Office for Fair Access in order to widen participation in and D tax credits provide for innovation. higher education. We will continue to invest in business led technology We do not believe that our proposals to apply the real innovation where there is greatest scope for boosting interest rate taper will affect educational institutions. UK growth and productivity through the Technology The progressive real interest taper will affect those Strategy Board and will incentivise our universities to borrowers who are due to repay, and are earning over work with industry. Through these measures, we are £21,000. For graduates earning below £21,000, the real supporting small and medium-sized enterprises and rate of interest will remain at zero. For graduates earning enabling some of them to become the big businesses of between £21,000 and around £41,000, a real rate of tomorrow. interest will be tapered in to reach a maximum of We have also, through the spending review, provided inflation plus 3%, subject to parliamentary approval. over £200 million to establish a network of technology and innovation centres to help to commercialise new Students: Income and emerging technologies. Mr Nicholas Brown: To ask the Secretary of State for Research: Finance Business, Innovation and Skills what recent estimate he has made of the average annual income of undergraduate Chi Onwurah: To ask the Secretary of State for students; and if he will publish the figures his Department Business, Innovation and Skills pursuant to the answer collates on undergraduate income. [26689] of 2 November 2010, Official Report, column 753W, on research and development, what his policy is on the EU Mr Willetts: The Student Income and Expenditure target of 3% of gross domestic product to be spent on Survey 2007/08, published on the 21 April 2009, includes research and development. [27134] estimates of the income of undergraduate higher education 609W Written Answers29 NOVEMBER 2010 Written Answers 610W students attending higher education institutions and has subsequently met with Mr Viriyaprapaikit here in further education colleges in England and Wales. The the UK on 29 October and in Bangkok on 16 November. full report will be placed in the Libraries of the House The ambassador will also be accompanying the Thai and is available on the BIS website: Minister for Foreign Affairs on a visit to Teesside Cast www.bis.gov.uk/assets/biscore/corporate/migratedd/ Products on 27 November. publications/d/dius_rr_09_05.pdf Furthermore BIS officials held an introductory meeting Full-time England-domiciled students’ average (mean) with representatives of SSI and their consultants on total income during the 2007/08 academic year was 26 October and have continued to maintain contact £10,425. Part-time England-domiciled students received with them as necessary. around 30% more than full-timers, on average, with a total income of £13,511—higher due to their greater UK Trade and Investment: Manpower earnings from paid work during the academic year.

Students: Loans Julian Smith: To ask the Secretary of State for Business, Innovation and Skills how many staff who are (a) employed by UK Trade and Investment Richard Fuller: To ask the Secretary of State for (UKTI) and (b) undertaking UKTI-related work for Business, Innovation and Skills what estimate he has the Foreign and Commonwealth Office are based in made of the likely change in credit default rates among each country. [25413] further education students resulting from taking out loans to cover the full cost of tuition fees in each of the Mr Prisk: UKTI is not an employer in its own right; next three years; and what guidance his Department for the majority of its human resource requirements it has issued to further education colleges on steps to draws on civil service staff employed by one or other of mitigate the adverse effects on them of any such its two parent departments—the Department for Business, change. [26529] Innovation and Skills (BIS) and the Foreign and Commonwealth Office (FCO). UKTI has Overseas Trade Mr Hayes: “Investing in Skills for Sustainable Growth” Teams in 96 markets representing some 98% of global (16 November 2010) sets out the funding strategy for GDP. The numbers of FCO people directly recorded as post-19 further education (FE) and skills. This includes working on UKTI activities is shown in the following the introduction of new fee loans from the 2013/14 table (these are shown as full time equivalents). academic year, providing the opportunity for FE learners to access the funds they need to gain intermediate and Market FTE slots higher-level skills. We recognise that this is a significant reform and that is why we will over the next few months Abu Dhabi 9 engage with colleges, training organisations and others Algeria 3.1 on the details of how fee loans will be implemented. Angola 2.2 The changes will be phased in over the spending review Argentina 6.95 period to provide the sector with sufficient time to plan Australia 29.73 effectively. Austria 6.85 We have however, set out the key principles that we Azerbaijan 2.07 propose to base the implementation of fee loans in FE. Bahrain 4.2 One of principles is that the loan will be repaid on an Bangladesh 3.9 income contingent basis in line with the recently announced Barbados 3.3 approach for higher education fee loans. This includes a Belgium 9.71 repayment threshold of £21,000 and writing off any Bosnia and Herzegovina 2.1 outstanding loan amount after a period of 30 years. Brazil 37.53 We have assumed that as with higher education, the Bulgaria 5.1 repayment of these loans will be handled through HM Canada 30.15 Revenue and Customs so there will be limited scope for Chile 6.2 default for those earning over the repayment threshold. China 109.37 Colombia 5.1 Teesside Cast Products Costa Rica 1.95 Croatia 3.1 Ian Swales: To ask the Secretary of State for Business, Cuba 2.3 Innovation and Skills what (a) meetings and (b) discussions Cyprus 3.15 his Department has had with representatives of SSI Ltd Czech Republic 11.4 on its proposed purchase of Tata Steel Europe’s Teesside Denmark 9.93 Cast Products business. [26587] Dominican Republic 2.05 Dubai 14 Mr Prisk: On 8 November I met with Win Ecuador 1.7 Viriyaprapaikit, President of Sahaviriya Steel Industries Egypt 10.9 public company limited (SSI). Estonia 5.5 In addition, since the announcement of the Ethiopia 2.1 Memorandum of Understanding on the potential sale Finland 8.88 of Teesside Cast Products was announced on 27 August, France 37.45 the British embassy in Bangkok has had a number of Germany 40.98 discussions with SSI officials. The new UK ambassador 611W Written Answers29 NOVEMBER 2010 Written Answers 612W

Market FTE slots Market FTE slots

Ghana 4.1 Vietnam 14.15 Greece 8.2 Yemen 1.05 Hong Kong 23.37 Total 1,278.55 Hungary 11 Iceland 2.27 In the markets where there is no UKTI Trade Team, India 86.05 FCO staff provide political support in-market to UK companies. Indonesia 12.1 Iraq 4 Ireland 8.5 Union Learning Fund Israel 7.58 Italy 25.31 Dan Byles: To ask the Secretary of State for Business, Jamaica 3.08 Innovation and Skills how much funding he plans to Japan 50.29 provide for the Union Learning Fund in each year of Jordan 6.05 the Spending Review period. [26421] Kazakhstan 5.1 Kenya 4.1 Mr Hayes: The Union Learning Fund (ULF) and Kuwait 7.9 unionlearn, the TUC’s learning and skills organisation have achieved real success in helping thousands of Latvia 3.1 workers improve their skills, particularly in reaching Lebanon 3 out to those who are poorly qualified and most in need Libya 6.1 of support. Lithuania 3.15 Malaysia 17.4 In 2009-10 over 233,000 learners in workplaces across Mexico 29.6 the country were helped back into learning by unionlearn and the Union Learning Fund. Morocco 5 Netherlands 8.87 That is why we have set out in “Investing in Skills for New Zealand 6.95 Sustainable Growth” the Government’s commitment to Nigeria 12 continue to support unionlearn and the Union Learning Norway 10.27 Fund by investing £21.5 million in the 2011-12 financial year. This will enable unionlearn to build on the impressive Oman 6.2 track record of union learning representatives and the Pakistan 7.97 Union Learning Fund in promoting and supporting Panama 2.15 learning in the workplace, especially in reaching out to Peru 4.1 those who are poorly-qualified and most in need of Philippines 7.65 support. Poland 16.93 The level of support for the remainder of the spending Portugal 10.2 review period has not yet been decided. Qatar 7 Romania 9.48 Dan Byles: To ask the Secretary of State for Business, Russia 29.71 Innovation and Skills how much funding from the Saudi Arabia 28.1 public purse was provided to the Union Learning Fund Serbia 3.45 in each of the last five years for which figures are Singapore 18.47 available. [26593] Slovakia 4.1 Slovenia 2.15 Mr Hayes: The Department for Business, Innovation South Africa 21.35 and Skills provides funding to support the Union Learning South Korea 20.35 Fund (ULF) and unionlearn, the TUC’s learning and Spain 28.2 skills organisation, which administers the fund on behalf Sri Lanka 2.7 of the Department. The main purpose of this budget is Sudan 1.1 to enable trade unions and union learning representatives Sweden 13.03 (ULRs) to work with employers, employees and learning Switzerland 10.6 providers to encourage greater take up of learning and Syria 5.15 raise skill levels in the workplace. All ULF projects are Taiwan 17.5 bound by contracts with defined learning targets and Tanzania 2.1 outcomes and are subject to independent audit. Annual Thailand 14.67 expenditure in each of the last five financial years has Trinidad and Tobago 2.65 been as follows: Tunisia 2.7 £ million Turkey 18.9 Uganda 2.1 2005-06 15.4 Ukraine 3.4 2006-07 16.9 UKREP Brussels 5 2007-08 18.4 United States of America 122.5 2008-09 21.4 Venezuela 5.3 2009-10 21.5 613W Written Answers29 NOVEMBER 2010 Written Answers 614W

Unions and their ULRs play a significant role in widespread application in Africa. Speeding up the transfer helping adults, particularly those who are poorly qualified of technology to farmers, such as new farming techniques and with no background in continuing their education, and more resilient crops and livestock varieties, is vital to become engaged and more confident with learning in reducing their vulnerability to a wide range of threats. and improve their skills. In 2009-10 over 233,000 learners DFID supports the work of two public-private in workplaces across the country were helped back into partnerships, the Global Alliance for Livestock Vaccine learning by the Union Learning Fund and union learning and Medicines, and the African Agriculture Technology representatives. Foundation which are speeding up the development University and College Union: Anti-Semitism and marketing of new technology based on existing research. This includes new vaccines for major animal diseases and plant varieties which are drought and pest Mr Amess: To ask the Secretary of State for resistant. Business, Innovation and Skills whether he has received recent reports of allegations of incidents of anti- We also support the Research into Use project, which Semitism in the University and College Union; and if has been successful in working with the private sector to promote the use of new varieties of crops such as maize, he will make a statement. [26704] beans, cowpea, cassava and sweet potatoes, and improved Mr Willetts: I have received no reports of allegations fertilizer blends in six African countries. It is projected of incidents of anti-Semitism in the University and that up to 56 million farmers will benefit from the work College Union (UCU). of this project. The UCU, as a trade union, is independent from Agriculture: Food Supply Government. The UCU is responsible for investigating any allegations of anti-Semitism it receives involving Alec Shelbrooke: To ask the Secretary of State for the union. International Development what discussions he has had with his US counterpart on the US Administration’s University Challenge policy on agricultural development and food security as part of its Feed the Future initiative. [26165] Henry Smith: To ask the Secretary of State for Business, Innovation and Skills what plans he has for Mr O’Brien: The Secretary of State has had a number the University Challenge projects. [27327] of discussions with Rajiv Shah, administrator of the United States Agency for International Development, Mr Willetts: Full details of the spending envelope for on agricultural development and food security, most higher education, including whether there is an allocation recently at the annual meetings of the World Bank and of funds for the ‘University Challenge’ project will be International Monetary Fund at the beginning of October. published in the forthcoming Higher Education Funding Discussions have included the US Feed the Future Council for England (HEFCE) grant letter, which will initiative. be issued by January 2011. We agree with our US counterparts that continued high-level international leadership in this area is important, as is ensuring that efforts to increase agricultural productivity INTERNATIONAL DEVELOPMENT in developing countries leads to a reduction in malnutrition, Afghanistan: Children particularly in pregnant women and young children. We also agree on the importance of being able to demonstrate results from increased donor investment in agriculture Mr Winnick: To ask the Secretary of State for and food security. International Development what estimate he has made of the number of children in Afghanistan who died Departmental Grants before the age of five years owing to factors other than military or terrorist action in the latest period for which Mr Amess: To ask the Secretary of State for International figures are available. [26887] Development which non-governmental organisations were funded by his Department in each of the last two Mr Andrew Mitchell: According to the National Risk years; how much funding was provided to each in each and Vulnerability Assessment 2007-08 the under-five such year; what conditions were applied to the use of mortality rate in Afghanistan is 161 per 1,000, which such funding; what the funding was used for in each means that five out of every six children are surviving to case; and if he will make a statement. [26706] their fifth birthday. These figures do not discount those children who have died because of military or terrorist Mr O’Brien: The Department for International action. Official figures are not publicly available. Development (DFID) supports non-government Africa: Famines organisations (NGOs) through a range of centrally managed funds and through DFID’s country programmes. Paul Uppal: To ask the Secretary of State for Details of funds provided to UK-based NGOs in 2009-10 International Development what steps he plans to take through these different channels can be found in table to promote the application of new agricultural 19 of Statistics on International Development 2010, technology to tackle famine in Africa. [26650] which is available in the Library of the House and on the DFID website. Details of funding to NGOs based Mr O’Brien: The Department for International in other countries and the specific purpose and conditions Development (DFID) will continue to invest in the attached to all funding to NGOs cannot be provided development of new agriculture technology and its without incurring disproportionate costs. However, further 615W Written Answers29 NOVEMBER 2010 Written Answers 616W details of all DFID projects, including those delivered Mr O’Brien: Food prices are determined by supply by NGOs, can be found on the project database on our and demand. A growing population will increase the website. demand for food in years to come. Our policy seeks to Each of DFID’s funding schemes for civil society match this growing demand for food by working with organisations has different criteria and a specific application others to increase the supply of food in developing process. However once funding has been agreed there countries at a price that poor people can afford, for are a number of conditions that DFID applies to all example by funding agricultural research. NGOs. For example they are required to provide quarterly We also aim to reduce food price volatility by working financial reports, a copy of their annual audited accounts internationally, particularly with other members of the and annual reports detailing progress made against G20, to liberalise trade and make commodity markets agreed objectives. Funds can be used only to support function more efficiently. We are doing this by promoting activities and objectives agreed with DFID. All NGOs greater sharing of information on existing stocks, and are also required to produce a project evaluation and discouraging disruptive actions such as export bans and project completion reports. panic buying, which limit supplies and drive up prices. In addition, the UK Government are introducing a new Aid Transparency Guarantee, which commits us to Mr McCann: To ask the Secretary of State for making our aid fully transparent to citizens in both the International Development what (a) risk assessment UK and developing countries, increasing accessibility and (b) contingency plans he has made in respect of and feedback, and pushing our international partners future spikes in the price of food in developing to follow our lead. Under this guarantee we will publish countries. [26401] full and detailed information on our projects and programmes on our website—in a standardised, accessible format so that it can be freely used by third parties. Mr O’Brien: The Government monitor international food supplies and price movements carefully. Our current Departmental Public Expenditure assessment is that despite poor weather in southern Russia and Ukraine earlier this year, other regions of the world did well, and contributed to 2010 having the Mr McCann: To ask the Secretary of State for third largest cereals harvest on record. Global supplies International Development what assessment he has remain adequate to meet expected demand, and available made of the implications for his Department’s data and past evidence suggest that there is unlikely to international development goals of the operation of be a shortage of food over the coming year. However the US Dodd-Frank Wall Street Reform and prices remain higher than they were at the start of the Consumer Protection Act. [26403] year, reflecting the tighter supply situation. Mr O’Brien: The US Securities and Exchange We are working with others, particularly G20 partners, Commission has yet to complete the series of regulatory to seek to avoid a price spike similar to the one seen in initiatives required under the Dodd-Frank Wall Street 2008. This involves urging greater trade liberalisation, Reform and Consumer Protection Act that will determine promoting greater sharing of information on existing the Act’s impact. stocks, and discouraging disruptive actions such as export bans and panic buying, which limit supplies and drive up prices. G8 countries have also pledged to Mr Sanders: To ask the Secretary of State for support the L’Aquila Food Security Initiative to increase International Development whether all countries in food supplies in developing countries, and make markets receipt of developmental aid will receive a cash work more effectively. In 2008 high prices affected increase in funding proportionate to the proposed developing countries differently, and any international increase in his Department’s budget from £7.8 billion in response to a further price spike would have to be on a 2010 to £11.5 billion by 2015. [26500] case by case basis. Mr Duncan: No. The Department for International Development (DFID) is currently reviewing all spending Mr McCann: To ask the Secretary of State for through country and regional programmes to ensure we International Development how much his Department focus our resources where we can achieve the most spent on food aid in the financial years 2006-07, impact. We will close or reduce the size of programmes 2007-08 and 2008-09. [26405] where we judge that a country no longer requires substantial aid. The Secretary of State has previously announced that UK bilateral aid programmes in China and Russia Mr O’Brien: The Department for International will close. Consequently not all countries will receive a Development’s (DFID’s) spending on food aid in financial cash increase in funding. Allocations to each country years 2006-07 to 2008-09 was published in the additional will be determined by the conclusions of the Bilateral tables made available as part of the 2010 edition of Aid Review early next year. ‘Statistics on International Development’. This publication and the additional tables are available in the Library of the House and on DFID’s website. Developing Countries: Food In addition DFID made core contributions to a range of multilateral organisations a proportion of Mr McCann: To ask the Secretary of State for which was also spent on food aid programmes. International Development what his policy is on steps to prevent future unstable fluctuations in the price of The relevant figures are reproduced in the following food in developing countries. [26400] tables: 617W Written Answers29 NOVEMBER 2010 Written Answers 618W

DFID bilateral expenditure on food aid commitment to human rights, poverty reduction, £ million accountability and combating corruption, as well as the 2006-07 2007-08 2008-09 level of development and humanitarian need. Food aid and food 19.3 35.8 51.1 DFID is reviewing its bilateral aid programmes to security ensure that we target UK aid where it is needed most programmes and will make the most significant impact on poverty Emergency food aid 18.1 11.6 80.3 reduction. The review will consider which countries should receive aid, how much they should receive and Imputed DFID share of multilateral expenditure on food aid which countries should stop receiving it. £ million 2006-07 2007-08 2008-09 Energy: Export Credit Guarantees

Food aid and food 26.5 19.2 14.0 security Mr Virendra Sharma: To ask the Secretary of State programmes for International Development what estimate he has Emergency food aid 13.3 27.0 31.7 made of the monetary value of projects in the (a) coal, (b) oil, (c) gas, (d) wind, (e) solar and (f) nuclear energy sectors underwritten by the Export Credits Mr McCann: To ask the Secretary of State for Guarantee Department since June 2010. [26843] International Development what assessment he has made of the effect of financial speculation on food prices in Mr Davey: I have been asked to reply. developing countries. [26406] ECGD did not provide support to any projects in the Mr O’Brien: While it is impossible to draw definitive coal, oil, wind, solar or nuclear energy sectors between conclusions, it is unlikely that financial speculation has June and November 2010. It supported one gas project, a significant effect on food prices in developing countries. the UK contract value of which was £14.47 million. Food price movements such as those seen in 2008 can EU Aid: Fossil Fuels be better explained by other factors such as local supply shortages, low international stocks, uncertainty about the size of the global harvest, a weak dollar, very high Zac Goldsmith: To ask the Secretary of State for energy prices and export restrictions imposed by some International Development whether his Department countries. has provided funding through the EU aid budget for overseas projects involving the extraction and transport Mr McCann: To ask the Secretary of State for of fossil fuels in the last five years. [26352] International Development what assessment he has made of threats to food security in developing countries. Mr O’Brien: In the past five years, the Department for International Development (DFID) has not given [26407] earmarked funds through the European Commission Mr O’Brien: Threats to food security come from a (EC) aid budget expressly for investments in projects for variety of sources, and over different time periods. In the extraction and transportation of fossil fuels. the short-term, countries heavily dependent on imports DFID has provided capital and funding through the to meet their food supply needs are most vulnerable to EC which has been pooled with resources from other price volatility on the international commodity markets. shareholders and donors. Based on EC reports to the In 2008 this was the case in many West African countries Development Assistance Committee (DAC), DFID’s heavily dependent on rice imported from Asia. Countries share of multilateral net imputed aid marked as Official which are more self-sufficient in food are vulnerable to Development Assistance (ODA) and channelled through local harvest failure, as happened in the Sahel earlier the European Commission in the energy sector has this year. amounted to £7.55 million over the last five years for In the longer term, slow economic growth, rising which figures are available (2004-05 to 2008-09): populations, and climate change pose the greatest threats £4.55 million contributed to gas distribution, while to food security in developing countries. The Government £2.99 million contributed to gas-fired power plants. remain committed to improving the food security of Palestinians: EU Aid developing countries in collaboration with G8 and G20 partners. Mr Amess: To ask the Secretary of State for International Development how much the EU donated in aid to the Developing Countries: Human Rights Palestinian territories in each of the last three years; what conditions were applied to such aid; what recent Mr MacNeil: To ask the Secretary of State for discussions he has had with (a) the President of the International Development whether his Department European Council and (b) Cabinet colleagues on aid to makes the allocation of aid to countries conditional on the Palestinian territories; and if he will make a statement. the upholding of standards of treatment of ethnic and [26705] religious minorities in those countries. [26340] Mr Duncan: European Union (EU) financial Mr Duncan: The Department for International commitments to the Occupied Palestinian Territories Development (DFID) has a strong commitment to (OPTs) totalled ¤518.41 million in 2009, ¤497.76 million human rights, including equal treatment of ethnic and in 2008, and ¤563.28 million in 2007. EU assistance to religious minorities. In taking decisions on the provision the OPTs is funded and disbursed via a variety of of aid to any country, DFID considers the Government’s instruments and mechanisms. These, together with the 619W Written Answers29 NOVEMBER 2010 Written Answers 620W policy considerations and any conditions which apply the last three years; whether any conditions were placed to such funding, are set out on the OPTs pages of the on the disbursement of such aid; and if he will make a EC website. statement. [26613] Ministers regularly discuss the Middle East peace process and UK support to the OPTs. All UK aid is Mr Duncan: UK bilateral aid in the Occupied Palestinian currently under review. There have been no discussions Territories (OPTs) reported in Statistics on International between Department for International Development Development 2010 totalled £57.6 million in 2009-10, Ministers and the President of the European Council, £41.3 million in 2008-09 and £45 million in 2007-08. Herman Van Rompuy, on aid to the OPTs. UK officials This does not include our funding to the United Nations are in regular contact with their EU counterparts regarding Relief and Works Agency (UNRWA) which operates in their respective aid programmes. the OPTs as well as in Syria, Jordan and Lebanon. Funding to UNRWA was £24.9 million in 2009-10; £19 Palestinians: Overseas Aid million in 2008-09; and £15.6 million in 2007-08. This aid was delivered in line with general UK policy Mr Amess: To ask the Secretary of State for on conditionality, which is that our aid should be based International Development what steps he (a) is taking on three partnership principles with partner governments: and (b) plans to take in the next 12 months to ensure poverty reduction and meeting the Millennium that (i) financial and (ii) aid donations to the Development Goals; respecting human rights and other Palestinian territories are used for their intended international obligations; and strengthening financial purposes; and if he will make a statement. [26503] management and accountability, and reducing the risk of funds being misused through weak administration or Mr Duncan: UK aid to the Occupied Palestinian corruption. We do not use conditions to impose specific Territories is subject to the highest levels of scrutiny. We policy choices on recipient countries. conduct regular fiduciary risk assessments to assess the risk of funds being misspent and identify appropriate safeguards. Our funding to the Palestinian Authority WORK AND PENSIONS (PA) is administered through a World Bank managed trust fund, which strictly controls how funds are used Access to Work Programme and has stringent audit requirements. For aid other than financial assistance to the PA, we work with all Margaret Curran: To ask the Secretary of State for partners on project design to ensure that UK funding Work and Pensions what consultation was undertaken will be spent most effectively. Our partners are United before the new Access to Work guidance was issued; Nations agencies and reputable non-governmental and by what mechanisms the effects of the new organisations with proven track records in effective guidance are being monitored. [26814] delivery. Maria Miller: In February 2009 DWP officials held a In line with the Department for International series of focus groups across the country with a number Development’s (DFID’s) commitment to enhance aid of key external stakeholders, including disability charities, transparency and value for money, from January 2011 business groups and ethnic minority groups about plans details of all spending over £500 will be published on to refocus the Access to Work programme. There was the DFID website. Aid projects will also be subject to general agreement about the value of the service that additional scrutiny by the Independent Commission for Access to Work provides but that the programme should Aid Impact which will be set up by June 2011. be more flexible; more available to those who are in need of most help; and that larger employers could Mr Amess: To ask the Secretary of State for contribute more. These changes were announced in International Development what steps he (a) is taking December 2009. and (b) plans to take to ensure the effective use by the Access to Work guidance has for many years specified Palestinian Authority of financial assistance from his that funding cannot be provided for standard equipment Department; and if he will make a statement. [26612] that an employer would need to provide for any employee to do their jobs. A revised list of equipment has been Mr Duncan: Financial assistance from the UK to the included in the most recent version of Access to Work Palestinian Authority (PA) is delivered through a Trust guidance in order to assist advisers in making operational Fund administered by the World Bank. This makes decisions on each case under consideration for funding disbursements to the PA conditional on progress in and help ensure consistency across the country. This list reforms to improve the efficiency of spending and will be updated from time to time to ensure it reflects reduce their need for aid in the future. The Department latest developments. The list of examples provided is for International Development also provides technical not exhaustive and advisers have the discretion to identify assistance to the PA Ministry of Finance to help them other types of equipment as standard for a particular strengthen public financial management. In addition, industry or occupation. the UK-PA Memorandum of Understanding makes our financial assistance conditional upon the PA The Access to Work programme is kept under constant meeting benchmarks for reducing poverty, respecting review, to ensure that it remains effective, efficient and human rights and strengthening public financial value for money. management. Carer’s Allowance

Mr Amess: To ask the Secretary of State for Kerry McCarthy: To ask the Secretary of State for International Development how much his Department Work and Pensions what recent estimate he has made allocated in aid to the Palestinian territories in each of of the number of people caring for a person who is 621W Written Answers29 NOVEMBER 2010 Written Answers 622W receiving the middle rate care component of disability people that they will soon receive winter fuel payments living allowance who are not in receipt of carer’s and explaining what they should do if they needed to allowance. [16667] make a claim. The Department for Work and Pensions also works Maria Miller: We are unable to estimate the number closely with other Government Departments on the of people caring for a person receiving the middle rate ‘Keep Warm Keep Well’ campaign, which is aimed at care component of disability living allowance who are vulnerable households in England and gives information not in receipt of carer’s allowance. This is because on the health benefits of keeping warm in winter and estimating the take-up of carer’s allowance would require details of the grants and benefits available. combining information in relation to the carer’s allowance eligibility criteria about both the disabled person and Communication: Young People their carer, who may not be part of the same household. Amber Rudd: To ask the Secretary of State for Work To receive carer’s allowance, a person must be caring and Pensions how much his Department and its non- for someone who receives either attendance allowance departmental public bodies spent on (a) or disability living allowance care component at the telecommunications-based, (b) literature-based, (c) middle or highest rate. In addition, the carer must not electronic, (d) television and (e) other campaigns and have earnings from employment of more than £100 a communications targeted at young people aged between week after deduction of allowable expenses, and must 16 and 24 years in respect of (i) employment, (ii) not be in full-time education. In consequence, receipt of training opportunities and (iii) welfare in the latest the disability living allowance care component at the period for which figures are available. [26823] middle rate by the disabled person does not necessarily automatically qualify their carer for carer’s allowance. Chris Grayling: The latest period for which figures are available relating to communications spend by DWP Cold Weather Payments: Westmorland covers April 2010 to September 2010. During this period, DWP spent £6,225 on electronic communications, Tim Farron: To ask the Secretary of State for Work specifically to engage young people to help them find and Pensions what assistance his Department provides their first job. In addition, the Department spent £211,533.72 to (a) pensioners, (b) benefit recipients and (c) other on providing literature-based information to people of vulnerable individuals resident in Westmorland and working age. It is not possible to define the proportion Lonsdale constituency in meeting the cost of their fuel of this spend relating specifically to the engagement of needs; and what steps he is taking to ensure that people young people, as this information is aimed at everyone not in receipt of a state pension or other benefit of working age. administered by his Department are aware of the help With regard to activity delivered by NDPBs, Remploy available to them. [26971] is the only body to have incurred expenditure during the relevant financial period. Remploy has incurred spend Steve Webb: Pensioners in Westmorland and Lonsdale on (b) literature-based materials for young people aged constituency, along with other individuals who have between 16 and 24 years on (i) employment of £817. reached women’s state pension age, will receive a winter Departmental Sick Leave fuel payment to help meet the cost of their winter fuel needs. Households with someone aged up to 79 will Mr Nicholas Brown: To ask the Secretary of State for receive £250 while those households with someone aged Work and Pensions pursuant to the answer of 18 80 or over receive £400. November 2010, Official Report, column 908W, on Cold weather payments of £25 a week are paid to departmental sick leave, what assessment he has made those on pension credit in periods of very cold weather. of the reasons for regional variations in average rates of Recipients of other income-related benefits such as sickness in his Department and its agencies. [27305] income related employment and support allowance may also be entitled to a cold weather payment if they have a Chris Grayling: The Department for Work and Pensions pensioner or disability premium included in their benefit, assesses variances in average rates of sickness at office or they have a child who is either disabled or under the and agency level. The Department has succeeded in age of five in the family. reducing sickness absence from an average of 11.1 days per employee in 2007 to 8.3 days per employee currently. Disabled people can face extra costs but, by and This has been achieved through compliance with policy, large, these needs arise all year round. Benefits such as sharing best practice and, where necessary, by focusing disability living allowance and the disability premiums additional efforts in under performing offices. and elements in the income-related benefits provide additional weekly payments and are related to the The Department has not, therefore, made an assessment individual’s circumstances. on the reasons for regional variances in average rates of sickness. We are working to ensure that people are aware of, and take up their entitlements through initiatives such Disability Living Allowance: Medical Examinations as: using data matching to identify those who may be entitled to, but not currently receiving, benefits; home Kate Hoey: To ask the Secretary of State for Work visits for vulnerable customers; a simple and straight- and Pensions on what criteria the objective assessment forward claim process; closer working with partner of disability living allowance applications is made; and organisations and our media campaigns. For example, how that assessment differs from his Department’s an article was published in the Cumberland and previously proposed medical assessments for that Westmorland Gazette on 20 November 2010 reminding allowance. [22466] 623W Written Answers29 NOVEMBER 2010 Written Answers 624W

Maria Miller: Entitlement to disability living allowance this period Remploy will support around 70,500 people. (DLA) depends on the effects that disability has on a This includes 59,500 new starters plus a further 11,000 person’s life and not on a particular disability or diagnosis. former Workstep customers, who will continue to be This means that people living with the same illnesses or supported within Work Choice. disabilities may not necessarily have the same care or mobility needs. The current entitlement conditions can Margaret Curran: To ask the Secretary of State for be open to interpretation which can lead to inconsistent Work and Pensions what mechanisms are in place in and subjective decisions about benefit entitlement. It the Work Programme to encourage employers to does not always focus support on those who need it recruit people with disabilities. [26813] most. Chris Grayling: The Work Programme will give providers As set out in Budget 2010, the Government intend to the freedom to design personalised support that delivers introduce a new assessment for disability living allowance for all participants, including those with a disability. It to allow us to more accurately, objectively and consistently will also operate a differential pricing system which will assess individuals to determine who is likely to benefit ensure it is worthwhile for providers to support all most from additional support. The Department remains customer groups back into work. committed to the social model of disability and it is not our intention that the new assessment will just be based We are expecting providers to engage with local partners, on the medical model of disability and focused solely including employers, in order to deliver an effective on an individual’s impairment. localised service to our customers. We are not intending to introduce any other assessments Additionally, all providers offering employment support in addition to this. on behalf of the Department will be required under the Equality Act 2010 to give due regard to promoting We are currently in the process of developing the new disability equality in the exercise of their duties, which assessment with the help of an independent group of will include supporting disabled people into employment. specialists in health care, social care and disability, which includes disabled people. We are planning to Gregg McClymont: To ask the Secretary of State for consult publicly on our proposals later this year. Work and Pensions which of the recommendations of Employment Schemes: Disability the work capability assessment independent review led by Professor Malcolm Harrington he expects to have been fully implemented before the national migration Gregg McClymont: To ask the Secretary of State for from incapacity benefit to employment and support Work and Pensions what funds have been made available allowance begins in April 2011. [26819] from his Department’s budget to assist the implementation of the recommendations of the work capability assessment Chris Grayling: Professor Harrington’s independent independent review led by Professor Malcolm Harrington. review of the work capability assessment (WCA) was [26818] published on 23 November, alongside the Government’s response. The Government response fully accepted the Chris Grayling: Professor Harrington’s independent substantial series of recommendations put forward by review of the work capability assessment (WCA) was Professor Harrington. published on 23 November, alongside the Government’s response. The Government response fully accepted the The Department is committed to a programme of substantial series of recommendations put forward by continuous improvement, working with the stakeholders Professor Harrington. to ensure the customer journey is as smooth as possible. While there is still considerable work to be done in While we are fully committed to doing this, we have order to accurately determine time scales we remain not yet established exactly what funds will be needed to confident of being able to get the key recommendations implement the Government’s response. Many of the implemented by April 2011. The obvious exceptions to changes are already planned in the design of IB (IS) this are the programme of work for the second independent reassessment. We agree with Professor Harrington’s review Professor Harrington has set out, which he will assessment that as these changes are implemented they take forward over the next year. will reduce costs. Housing Benefit Margaret Curran: To ask the Secretary of State for Work and Pensions (1) how many placements have been Catherine McKinnell: To ask the Secretary of State commissioned under the Work Choice programme; for Work and Pensions (1) what estimate he has made [26811] of the number of households in (a) Newcastle Upon (2) how many placements he expects to be Tyne North constituency, (b) the North East and (c) commissioned under the Work Choice programme by England likely to be affected by the proposed changes 2015. [26812] to housing benefit; [24442] (2) how many households he estimates will experience Chris Grayling: Work Choice contracted delivery will a reduction in their housing benefit as a result of his support around 79,000 people over the life of the contracts. proposals on housing benefit arrangements in (a) Newcastle This includes 66,000 new starters plus a further 13,000 North constituency, (b) the North East and (c) England. former Workstep customers, who will continue to be [25706] supported within Work Choice. Figures for Work Choice delivered by Remploy cover Steve Webb: The Department published a document the remaining two and a half year period of the on “Impacts of Housing Benefit proposals: Changes to modernisation plan, which goes up to 2012-13. During the Local Housing Allowance to be introduced in 2011-12”. 625W Written Answers29 NOVEMBER 2010 Written Answers 626W

This includes information at the local authority level. A of (A) jobseeker’s allowance and (B) employment and copy of the documents has been placed in the Library. support allowance in the latest period for which figures We will publish a document on the impacts of the are available. [25312] proposed changes to the shared room rate in due course, which will include information at the local authority Steve Webb: The information requested on housing level. A more detailed equality impact assessment will benefit claimants also in receipt of either jobseeker’s be published in the normal way, once the detail of the allowance or employment and support allowance in policy has been finalised to accompany the amending Aberdeenshire and Aberdeen city is not available. regulations. Information is collected on the number of claimants in receipt of a passported benefit, which includes income- Lindsay Roy: To ask the Secretary of State for Work based jobseeker’s allowance and income- based employment and Pensions what assessment he has made of the support allowance. However neither the total number effect on those in receipt of local housing allowance of of jobseeker’s allowance claimants nor the total number his proposals for changes to the allowance. [27452] of employment support allowance claimants receiving housing benefit is available. Steve Webb: On 23 July the Department published a The information requested on the average amount of document on ‘Impacts of Housing Benefit proposals: local housing allowance paid to local authority and Changes to the Local Housing Allowance to be introduced housing association tenants is not available. in 2011-12’, which includes analysis at the local authority Local housing allowance was introduced in the private level, and a separate equality impact assessment. A deregulated sector from April 2008. copy of the documents has been placed in the Library. The latest available figures (August 2010) on the The Department will publish a full impact assessment average weekly amount of housing benefit in Aberdeenshire for the 2011-12 changes to the local housing allowance and Aberdeen city are as follows, by tenure. arrangements when it lays the relevant legislation in November 2010. £ The Department is intending to carry out evaluation Aberdeen city Aberdeenshire and monitoring to cover the impact of the housing benefit measures. The precise form will depend upon Local authority 56.03 53.78 tenant the resources that are available, but we anticipate that it Registered social 62.91 62.70 will include independent research examining the effects landlord tenant on different types of households in a range of areas All private tenants 102.06 98.96 across Great Britain. Private deregulated 102.05 109.48 tenant (LHA) Housing Benefit: Aberdeenshire Notes: 1. The data refer to benefit units, which may be a single person or a couple. Dr Whiteford: To ask the Secretary of State for Work 2. Recipients are as at second Thursday of the month. and Pensions (1) what the average amount of housing 3. Local housing allowance tenants (LHA) may include a small benefit paid to local authority tenants in Aberdeenshire number of non-LHA cases making a new claim since 7 April 2008. and Aberdeen City was in the latest period for which This will include recipients in caravan accommodation. 4. These data incorporate the local authority changes from 1 April figures are available; [25305] 2009. (2) what the average amount of local housing allowance 5. SHBE is a monthly electronic scan of claimant level data direct paid to local authority tenants in Aberdeenshire and from local authority computer systems. It replaces quarterly aggregate clerical returns. The data are available monthly from Aberdeen City was in the latest period for which figures November 2008 and August 2010 are the most recent available. are available; [25306] 6. Average awards are shown as pounds per week and rounded to the (3) what the average amount of housing benefit paid nearest penny. to housing association tenants in Aberdeenshire and 7. Tenure type does not include recipients with unknown tenure type. 8. Housing association tenants are now registered social landlord Aberdeen City was in the latest period for which figures tenants. are available; [25307] Source: (4) what the average amount of local housing allowance Single Housing Benefit Extract (SHBE)—August 2010 paid to housing association tenants in Aberdeenshire and Aberdeen City was in the latest period for which Housing Benefit: Fife figures are available; [25308] (5) what the average amount of housing benefit paid Lindsay Roy: To ask the Secretary of State for Work to private sector tenants in Aberdeenshire and Aberdeen and Pensions how many people in Fife receive local City was in the latest period for which figures are housing allowance. [27277] available; [25309] Steve Webb: As at August 2010, our records show (6) what the average amount of local housing allowance that there are 4,300 people receiving the local housing paid to private sector tenants in Aberdeenshire and allowance in Fife. Aberdeen City was in the latest period for which figures are available; [25310] Housing Benefit: Finance (7) what proportion of (a) housing benefit and (b) local housing allowance recipients in (i) local authority, Ms Buck: To ask the Secretary of State for Work and (ii) housing association and (iii) private sector housing Pensions pursuant to the answer of 18 November 2010, in Aberdeenshire and Aberdeen City were also in receipt Official Report, column 911W,on housing benefit: finance, 627W Written Answers29 NOVEMBER 2010 Written Answers 628W if he will place in the Library a copy of the data on the 10 employees of the requirement for them to contribute amounts and monetary values of all historical data and to employees’ National Employment Savings Trust. internal forecast assumptions referred to. [26883] [21431]

Steve Webb: The methodology used for the costing of Steve Webb: Based on the Making Automatic Enrolment the Budget measures was published at the June Budget Work review recommendation thresholds, and full employer and are available at: compliance, we expect between 2.3 million and 2.6 million http://www.hm-treasury.gov.uk/d/junebudget_costings.pdf of the automatically-enrolled population to work for Detailed assessments will be published to accompany employers with fewer than 10 employees. These individuals the draft legislation. make up 17% to 18% of the automatically-enrolled population. Housing Benefit: Social Security Benefits The effect on small businesses of the Workplace Pension Reform Regulations is set out in the 2010 Ms Buck: To ask the Secretary of State for Work and impact assessment. The impact assessment looks at the Pensions how many households in receipt of housing impact on employers by employer size, looking specifically benefit in each local authority area include at least one at small employers (defined as those with fewer than 50 person in receipt of (a) (i) long-term and (ii) short-term workers) and micro employers (defined as those with incapacity benefit and (b) severe disablement allowance. fewer than five workers). Annex A presents the detailed [27281] assessment, as well as elements of the reforms that are designed to help small and micro employers. Steve Webb: The information is not yet available. Copies of the impact assessment can be found in the Information is collected on claimants’ income from Commons Library or at: long-term and short-term incapacity benefit and severe http://www.legislation.gov.uk/uksi/2010/772/pdfs/ disablement allowance on the new single housing benefit uksiem_20100772_en.pdf extract. However this information has not yet been An independent review of the workplace pension quality assured to National Statistics standard, and to reforms ″Making automatic enrolment work″ was published do so would incur disproportionate cost. on the 27 October 2010. One of the things the review Lone Parents: Social Security Benefits team examined was the impact of the reforms on business. David Yeandle, of the Engineering Employers’ Federation, Yvette Cooper: To ask the Secretary of State for Work was part of the review team to ensure that business and Pensions how many (a) men and (b) women will interests were well represented in the review process. be affected by the changes to lone parent conditionality The review team recognised that easing burdens on announced in the June 2010 Budget by 2014-15. [26778] business was important. So a number of their recommendations are aimed specifically at making things Maria Miller: By the end of 2014-15, the Department more straightforward for employers and we have accepted for Work and Pensions estimates that there will have these recommendations in full. This includes: been around 300,000 lone parents with children over Increasing the threshold at which an individual is automatically the age of five affected by the changes to conditionality enrolled (currently £5,035 at 2006-07 prices) to align it with the announced in the June 2010 Budget. Of these, it is PAYE tax threshold (£7,475 in 2011-12) and aligning the threshold estimated that over 90% will be women. at which contributions become payable (currently £5,035) with the national insurance contributions threshold (currently £5,715). A framework of flexibilities and support is in place to help lone parents balance their caring responsibilities A simpler way for employers to check that their defined contribution schemes meet the required standards. and work search. This includes access to specialist advisers in Jobcentre Plus who can provide advice on An optional waiting period of up to three months before an employee needs to be automatically enrolled. child care, local employers with flexible working vacancies, and financial incentives; the right to restrict availability Such recommendations will give employers greater for work to the child’s normal school hours where the flexibility in how they implement the new requirements youngest child is 12 or under; and enabling lone parents and will mean that there is a much more proportionate to be deemed available for work during school holidays impact on employers. The increased earnings threshold if appropriate, affordable child care is not available. and waiting period are particularly beneficial for smaller employers, as they tend to have more lower earners and Lone parents will also be helped by the universal higher staff turnover. credit which aims to make sure that all amounts of work will be more financially rewarding than inactivity, The review team recommended a range of further and remove the current barriers to small amounts of measures specifically aimed at helping smaller businesses work. Improving the incentives to take up mini-jobs, for including: example, will particularly help those who are not able to Ensuring that micro employers are aware that the design of take up full-time employment. Promoting a culture of NEST specifically takes account of their needs. employment will not only help those individuals but Providing the maximum possible comfort to small employers will also tackle the intergenerational cycles of worklessness that they will not be held liable for their scheme choice, particularly and welfare dependency. if they opt for NEST or a stakeholder pension scheme. In addition, smaller businesses will not be required to National Employment Savings Trust Scheme do anything until 2014, once larger employers have been fully brought in. This gives them more time to prepare Julian Smith: To ask the Secretary of State for Work and more time for us to ensure that the processes work and Pensions what assessment his Department has well. Even then they will not be required to contribute made of the effect on small companies with fewer than the full 3% minimum contribution until October 2017. 629W Written Answers29 NOVEMBER 2010 Written Answers 630W

New businesses will be given further protection by (HBAI) series. HBAI uses household income adjusted being brought into the reforms last. Any new businesses (or ‘equivalised’) for household size and composition, set up after April 2012 will not have to automatically to provide a proxy for standard of living. enrol until March 2016 at the earliest. Table 1: Median income of households, before housing costs (BHC) and after The Government are taking forward the housing costs (AHC) for the east of England by tenure type, 2006-07 to 2008-09 recommendations from the review as part of the £ per week, 2008-09 prices forthcoming Pensions and Savings Bill, which is scheduled Tenure BHC AHC for introduction to Parliament in January 2011. The Owners 469 424 accompanying impact assessment will set out in detail Social Rented Sector Tenants 295 222 how the changes affect smaller employers. All Rented Privately 397 297 Pensioners: Cost of Living 1. These statistics are based on the households below average income series, sourced from the Family Resources Survey. 2. All estimates are based on survey data and are therefore subject to uncertainty. Small differences should be treated with caution as these will be affected by Rachel Reeves: To ask the Secretary of State for sampling error and variability in non-response. Work and Pensions what assessment he has made of 3. The reference period for households below average income figures are single the effectiveness of the (a) consumer price index and financial years. Three survey years have been combined as regional single year estimates are subject to volatility. (b) retail price index in measuring the increases in 4. The income measures used to derive the estimates shown employ the same living costs of pensioners. [26976] methodology as the Department for Work and Pensions publication ‘Households Below Average Income’ (HBAI) series, which uses disposable household income, adjusted (or ‘equivalised’) for household size and composition, as an income Steve Webb: The relative effectiveness of the consumer measure as a proxy for standard of living. prices index (CPI) and retail prices index (RPI) in 5. For the Households Below Average Income series, incomes have been measuring the increases in living costs for pensioners equivalised using Organisation for Economic Co-operation and Development (OECD) modified equivalisation factors. has been considered with regards to the coverage or 6. Amounts have been rounded to the nearest pound. “basket of goods” and methodology of each. 7. These statistics are based on incomes before housing costs. 8. All estimates are subject to sampling error. The CPI excludes mortgage interest payments, which Source: are not relevant to the majority of pensioners: only 7% Household below average income. of pensioners have a mortgage1. The RPI includes Poverty: Children mortgage interest payments, which are variable and consequently can have a marked effect on that index. Brandon Lewis: To ask the Secretary of State for This means that in some years the RPI faces significant Work and Pensions how many children in Great downwards or upwards pressure from a cost of living Yarmouth were classified as being in poverty in each irrelevant to 93% of pensioners. year from 2005 to 2009. [24705] For example, in the 12 months to September 2009 the RPI fell by 1.4%, leading to many pensions being frozen, Maria Miller: Estimates of the number and proportion for example additional state pensions, public service of children living in poverty are published in the households pensions and some occupational pensions. Without below average income (HBAI) series. HBAI uses household downwards pressure from mortgage interest payments, income adjusted (or ‘equivalised’) for household size the RPI would have grown by 1.3%2. and composition, to provide a proxy for standard of living. In addition in terms of population coverage the RPI As they are based on survey data, child poverty excludes a significant group of pensioners (pensioner estimates published in HBAI only allow breakdowns to households who receive 75% or more of their income Government office region and analysis by parliamentary from the state). The CPI includes those pensioners3. constituency is not possible. However, figures for East of England are set out in the following table. The methodology used to calculate the CPI takes into Number and percentage of children living in households with less than 60% of account the fact that many people tend to trade down contemporary median household income for the East of England, before housing to cheaper goods when prices rise. This contributes a costs (BHC) significant portion of the gap between the CPI and the BHC RPI and is known as the “formula” or “substitution” Period Number (million) Percentage effect. 2002-03 to 2004-05 0.2 15 1 Households Below Average Income 2008-09 2003-04 to 2005-06 0.2 16 2 Table 2, Consumer Price Indices Statistical Bulletin, September 2004-05 to 2006-07 0.2 15 2010, Office for National Statistics 2005-06 to 2007-08 0.2 15 3 Consumer Prices Index Technical Manual 2010 2006-07 to 2008-09 0.2 16 Notes: Personal Income: East of England 1. These statistics are based on households below average income (HBAI) data sourced from the 2008-09 Family Resources Survey (FRS). This uses disposable household income, adjusted using modified OECD equivalisation factors for Mr Stewart Jackson: To ask the Secretary of State for household size and composition, as an income measure as a proxy for standard Work and Pensions what the median household income of living. was of a family in (a) social rented sector, (b) private 2. All estimates are based on survey data and are therefore subject to uncertainty. Small differences should be treated with caution as these will be affected by rented sector and (c) owner-occupied accommodation sampling error and variability in non-response. in the East of England (i) before and (ii) after housing 3. The reference period for households below average income figures are single costs in the latest period for which figures are available. financial years. Three survey years have been combined as regional single year estimates are subject to volatility. [17865] 4. Numbers of children in low-income households have been rounded to the nearest 100,000, while proportions have been rounded to the nearest percentage Steve Webb: Estimates of median income by tenure point. 5. These statistics are based on incomes before housing costs. type both before and after housing costs can be derived Source: from the published households below average income Households Below Average Income, DWP 631W Written Answers29 NOVEMBER 2010 Written Answers 632W

Social Security Benefits Information is collected on whether claimants are in receipt of a disability premium on the new Single Housing Ms Buck: To ask the Secretary of State for Work and Benefit Extract. However this information has not yet Pensions what recent estimate he has made of the been quality assured to National Statistics standard, proportion of household income made up of benefits and to do so would incur disproportionate cost. in kind by net equalised income quintile. [21052]

Chris Grayling: The main source of income information, State Retirement Pensions the Households Below Average Income series, includes free school meals, healthy start vouchers, free school Gordon Banks: To ask the Secretary of State for milk and TV licences as benefits in kind income. The Work and Pensions pursuant to the answer of 11 proportion of gross unequivalised household income October 2010, Official Report, column 117W, on state made up by these benefits in kind by net equivalised retirement pensions, how many people who were in household income quintile before and after housing receipt of a full state pension before 6 April 2009 had costs is given in the following table: not accrued the full number of entitlement years by Proportion of gross unequivalised household income made up by benefits in kind means of their own national insurance contributions, included in income by net equivalised household income quintile, before housing their spouse’s national insurance contributions or costs (BHC) and after housing costs (AHC), 2008/09, United Kingdom bought-back years. [27135] Quintile Before housing costs After housing costs

111— Steve Webb: At the end of the 2008-09 tax year there 2 1— 1— were 1.6 million people over state pension age in GB 3 1— 1— and overseas with entitlement to a full basic state pension 4 1— 1— who had not accrued the requisite number of qualifying 5 1— 1— years solely by means of paid contributions of any Total 1— 1— class. 1 Less than 0.5% of gross income is made up by those benefits in kind being Notes: considered. 1. The answer shows the number of people with full entitlement Notes: 1. These statistics are based on Households Below Average Income (HBAI) to basic state pension who accrued their entitlement from 1975 data sourced from the 2008-09 Family Resources Survey (FRS). This uses net onwards wholly or in part through national insurance credits or household income, adjusted using modified OECD equivalisation factors for home responsibilities protection. household size and composition, as an income measure as a proxy for standard 2. Due to insufficient data all recorded pre-1975 contributions are of living. 2. In this analysis, equivalised net household incomes before or after housing assumed to be paid contributions. costs are used to calculated which quintiles households fall into, but shares of 3. Figure excludes individuals for whom entitlement to full basic incomes have been calculated using gross unequivalised household incomes. pension is derived wholly or in part from their former spouse’s This is in line with the best practice and the HBAI publication. 3. All estimates are based on survey data and are therefore subject to uncertainty. national insurance contributions. Small differences should be treated with caution as these will be affected by 4. The figure is for individuals reaching state pension age before 6 sampling error and variability in non-response. April 2009. These individuals are not affected by changes to the Source: Household Below Average Income. calculation of entitlement to the basic state pension for people reaching state pension age from 6 April 2010. Margaret Curran: To ask the Secretary of State for Source: Work and Pensions how many people he expects to DWP, Information Directorate: Lifetime Labour Market Database transfer from incapacity benefit to jobseeker’s allowance 1% sample of the National Insurance Recording System. or employment and support allowance by 2015. [26810]

Chris Grayling: We expect around 1.5 million existing State Second Pension incapacity benefits customers to go through the IB reassessment process by 2014. Of these the Department’s Yvette Cooper: To ask the Secretary of State for initial projection is that approximately 23% are expected Work and Pensions how many (a) men and (b) to be assessed as fit for work following their work women will be affected by uprating the additional state capability assessment and move off incapacity benefits, pension with reference to the consumer price index by of which around half are expected to go to JSA. The 2014-15. [26777] remaining 77%, are expected to be assessed as having a limited capability for work and move to ESA with Steve Webb: The following table shows the number of around three-quarters moving to the Work Related (a) men and (b) women expected to be in receipt of Activity Group. additional state pension in 2014-15, and therefore affected It should be noted that these are projections for by uprating of additional state pension using the consumer reassessment outcomes—there are no targets. prices index. State second pension, state earnings-related pension scheme and Ms Buck: To ask the Secretary of State for Work and graduated retirement benefit caseload by gender, 2014-15 Pensions how many households in receipt of housing Thousand benefit in each local authority area include a claimant in receipt of disability premium on the basis of being Male 4,700 incapable of work for over 12 months and no Female 5,700 qualifying benefit. [27282] Notes: 1. Figures have been rounded to the nearest 100,000. 2. Forecasts are based on the June 2010 Budget medium-term projections. Steve Webb: The information is not available. 3. Figures cover Great Britain residents only. 633W Written Answers29 NOVEMBER 2010 Written Answers 634W

TREASURY Mr Gauke: The Chancellor has received a number of representations on the cost of administering child benefit. Bank Levy It is not the Government’s practice to provide details of all such representations. Mr Umunna: To ask the Chancellor of the Exchequer Chris Ruane: To ask the Chancellor of the Exchequer whether he has made an estimate of the amount likely how many and what proportion of families with at to be paid out in bonuses by the largest banks to staff least one higher rate taxpayer are eligible for child in (a) investment banking and (b) other divisions of benefit payments in each (a) constituency and (b) those banks from December 2010 to April 2011. region. [24232] [24838] Mr Gauke: Estimates of the number and proportion Mr Hoban [holding answer 18 November 2010]: Estimates of families who are eligible for child benefit in 2010-11 for bonuses at the level of detail specified in the question and have at least one higher rate taxpayer are shown in have not been made. the table, by Government office region. Banks: Pay Information on household income for child benefit claimants is not available at parliamentary constituency level. Mr Umunna: To ask the Chancellor of the Exchequer what meetings (a) he and (b) Ministers in his Department Number of families Proportion of have had with representatives of the (i) British Bankers’ who are eligible for families eligible for Association and (ii) Investment Management Association child benefit and child benefit that to discuss remuneration disclosure. [26634] have at least one have at least one higher rate higher rate taxpayer Region taxpayer1, 2, 3 (%)1, 3 Mr Hoban: Treasury Ministers and officials have meetings with a wide variety of organisations in the North-east 40,000 11 public and private sectors as part of the process of North-west 100,000 11 policy development and delivery.It is not the Government’s Yorkshire and The 70,000 11 practice to provide details of all such meetings. Humber East midlands 60,000 12 Banks: Regulation West midlands 90,000 13 East of England 130,000 19 Gregg McClymont: To ask the Chancellor of the London 220,000 24 Exchequer what the Government’s policy is on the South-east 280,000 28 implementation of the recommendations of the Walker South-west 90,000 15 Review of the corporate governance of the UK Wales 30,000 8 banking industry; and if he will make a statement. Scotland 100,000 16 [26820] Northern Ireland 20,000 10 United Kingdom 1,200,000 17 Mr Hoban: The Government are committed to a 1 These estimates are produced using the Inter-Governmental Tax robust remuneration disclosure regime and the principles and Benefit Model (IGOTM), which is based on the Family Resources Survey (FRS). As with any survey based estimates, they set out in Sir David Walker’s report, and will make an are subject to sampling error. announcement in due course. 2 Figures are rounded to the nearest 10,000. 3 For this table a family is based on a ’benefit unit’ as defined in the Child Benefit FRS. Child Benefit: Young People Mr Bain: To ask the Chancellor of the Exchequer if (a) he will estimate the average effect on the income of Mr Umunna: To ask the Chancellor of the Exchequer a single household with an income above £44,000 per (1) whether he has made an estimate of the number of (b) annum and a multiple income household with (a) men and (b) women who received child benefit combined incomes above £45,000 per annum in which payments in (i) 2008-09 and (ii) 2009-10; [17135] no-one earns more than £44,000 of his proposed change to child benefit arrangements. [16770] (2) what recent estimate he has made of the number of households which are entitled to child benefit Mr Gauke: The average effect of the proposed change payments for children over the age of 16 years; [17121] is dependent on the number of children in each family (3) how many households received child benefit affected. Families with one child will lose around £1,060 payments for children over the age of 16 years in (a) per annum while families with two children will lose 2008-09 and (b) 2009-10. [17122] around £1,750 per annum. There are no higher-rate taxpayers in households in Mr Gauke [holding answer 13 October 2010]: As at which no-one earns more than £44,000 so there will be August 2009, there were 640,000 men and 6,680,000 no impact on these families. women who were in receipt of child benefit. An equivalent breakdown for 2008 is not available. Mr Crausby: To ask the Chancellor of the Exchequer Information on the number of households which are what recent representations he has received on the cost entitled to child benefit payments for children over the of administering child benefit. [18079] age of 16 years is not available. But as at August 2009 635W Written Answers29 NOVEMBER 2010 Written Answers 636W there were 1,150,000 households who were in receipt of Departmental Civil Service Live Conference child benefit in respect of a young person aged over 16 years. At August 2008 there were 1,070,000 households. Graham Evans: To ask the Chancellor of the Exchequer what the cost to the public purse was of the Credit Unions (a) HM Revenue and Customs, (b) Government Banking Service, (c) Government Finance Profession Mr Umunna: To ask the Chancellor of the Exchequer and (d) Buying Solutions stand at Civil Service Live what steps he is taking to support local credit unions. 2010. [12834] [26636] Justine Greening: The costs of the stands at Civil Mr Hoban: The coalition Government have committed Service Live 2010 are shown in the following table. to fostering diversity, promoting mutuals and creating a more competitive banking industry. £ The Legislative Reform (Industrial and Provident HM Revenue and Customs 7,600 Societies and Credit Unions) Order 2010 will be re-laid Government Banking Service 8,000 before Parliament in the next few weeks. The new Government Finance Profession 2,400 measures will enable credit unions to expand their Buying Solutions 10,000 membership and range of services, and reduce regulatory burdens on the sector. In addition, the Government will consult shortly on electronic communications in the Departmental Lobbying mutual sector. This would allow credit unions and other mutual societies to use electronic communications in Robert Halfon: To ask the Chancellor of the Exchequer discharging some of their statutory obligations which (1) how much his Department’s agencies and non- would help the sector to reduce its administrative costs. departmental public bodies spent from the public purse on influencing public policy through (a) employing Crown Currency Exchange external (i) public affairs companies, (ii) strategic consultancies and (iii) corporate communications firms, Alun Cairns: To ask the Chancellor of the Exchequer (b) external marketing and (c) other activities in each what discussions he has had with the Financial Services of the last 10 years; [23759] Authority on reports by Currency Index in February (2) which of his Department’s non-departmental public 2010 on Crown Currency Exchange. [26606] bodies have undertaken activities to influence public policy for which they engaged (a) public affairs and Mr Hoban: I refer the hon. Gentleman to the reply I (b) public relations consultants in each year since 1997; gave the hon. Member for Esher and Walton on 28 October and at what monetary cost in each such year. [23786] 2010, Official Report, column 426W. Justine Greening: None of the Treasury’s agencies or Debts: Disadvantaged non-departmental public bodies have engaged in activities or spent public funds on influencing public policy. Nicky Morgan: To ask the Chancellor of the Exchequer what recent representations he has had on Departmental Official Cars the effects on people in deprived areas of high levels of debt. [16946] Mr Bain: To ask the Chancellor of the Exchequer which Ministers in his Department have used an allocated Justine Greening [holding answer 13 October 2010]: Ministerial car to travel between the Department and Treasury Ministers and officials receive representations the House of Commons on each day since 21 May from a wide variety of organisations in the public and 2010. [5546] private sectors as part of the process of policy development and delivery. It is not the Government’s practice to Justine Greening: I refer the hon. Gentleman to the provide details of all such meetings and discussions. answer I gave the hon. Member for West Bromwich On 13 July 2010, the Government announced a review East (Mr Watson) on 29 June 2010, Official Report, of consumer credit and personal insolvency. The column 498W. Government want to ensure that the regulatory framework Records are not kept of the destination of journeys is fair to both consumers and the providers of credit. using allocated ministerial cars. All travel is undertaken The review will cover all aspects of the consumer credit in accordance with the ministerial code. lifecycle from the decision to take out a loan through the lifetime of the loan, including what happens when things go wrong. The review will be jointly conducted Departmental Official Hospitality by the Department for Business Innovation and Skills (BIS) and HM Treasury. The Government recently Ian Austin: To ask the Chancellor of the Exchequer published a call for evidence in support of the review (1) how much his Department spent on hospitality for which can be accessed via the BIS website at: events hosted by each Minister in his Department in http://www.bis.gov.uk/policies/consumer-issues/consumer- (a) May and (b) June 2010; [10112] credit-and-debt/managing-borrowing. (2) how much his Department spent on hospitality The closing date for responses to the call for evidence is for events hosted by each Minister in his Department 10 December 2010. in July 2010; [15149] 637W Written Answers29 NOVEMBER 2010 Written Answers 638W

(3) how much his Department spent on hospitality the challenges of the 21st century: global competitiveness, for events hosted by each of its Ministers in (a) global warming and global poverty. But this must not September and (b) October 2010. [21781] come at the cost of higher EU spending overall. EU Law Justine Greening: I refer the hon. Gentleman to the answer given to him by my right hon. Friend the Minister for the Cabinet Office (Mr Maude) on 26 July 2010, Priti Patel: To ask the Chancellor of the Exchequer Official Report, column 734W. what estimate he has made of the cost to his Department and its non-departmental public bodies of implementing Departmental Speeches and monitoring compliance with legislation transposing EU requirements in each year since 1997; and if he will Angela Smith: To ask the Chancellor of the make a statement. [18760] Exchequer which (a) (i) civil servants and (ii) special advisers in his Department and (b) other individuals Mr Hoban: It is not standard accounting practice to are employed to write speeches for each Minister in his distinguish regulatory costs from overall running costs, Department. [7402] whether of EU origin or domestic. There is therefore no pre-existing breakdown of the costs imposed on it by Justine Greening: Treasury staff contribute to the EU legislation upon which the Department can draw to drafting of ministerial speeches as appropriate. Special produce an estimate of such compliance. Any such advisers also contribute to the preparation of speeches information that does exist is not held centrally and in line with their code of conduct. could be provided only at disproportionate cost. Departmental Visits Abroad Excise Duties: Beer

David Simpson: To ask the Chancellor of the Exchequer Dr Thérèse Coffey: To ask the Chancellor of the how much his Department spent on overseas visits for Exchequer (1) how many brewers that received small senior officials in the last 12 months for which figures breweries relief in 2009-10 had received such relief in previous years; [26162] are available. [18411] (2) how many of the breweries liable for a reduced Justine Greening: Information on spending on overseas rate of duty under the small breweries relief scheme in visits by grade level is not available within the 2008-09 participated in the scheme in 2009-10; [26164] disproportionate costs threshold. Spending on overseas (3) which brewers participated in the small breweries travel and subsistence by Ministers and all staff in relief scheme in each year since 2002; and how much 2009-10 was £1,296,000. beer produced by each has qualified for such relief; [26163] EC Law (4) how much the Exchequer has forgone in duty under small breweries relief in each year since 2002; Philip Davies: To ask the Chancellor of the Exchequer and in respect of how many brewers. [26166] if he will estimate the cost to his Department of compliance with regulations arising from EU obligations in the last Justine Greening: In 2009-10 there were 666 breweries 12 months. [6872] that paid duty at a reduced rate due to the small breweries’ relief. Of these 578 also benefited in 2008-09, Justine Greening: HM Treasury, like any employer, while 503 did so in 2007-08. has to act in accordance with regulations. However, there is no breakdown of the costs imposed on it by EU Information on specific breweries is taxpayer confidential regulations. Any such information that does exist is not and therefore cannot be disclosed by HMRC. held centrally and could be provided only at The foregone duty can be approximated by applying disproportionate cost. the full duty rate to small breweries’ clearances. This gives us an estimated cost to the Exchequer of £125 EU Budget million since 2002-03. However this does not account for any reduction in clearances that may have resulted if Zac Goldsmith: To ask the Chancellor of the Exchequer the relief was not in place; over this period the number pursuant to the answer of 22 October 2010, Official of breweries utilising the small breweries relief has Report, column 896W, on the EC budget, whether he grown from under 400 to over 650. plans to discuss at EU level the re-orientation of the EU A yearly breakdown is given in the following table. budget towards addressing issues of climate change and energy security. [20725] Estimated Exchequer Number Clearances (hl) cost (£m)

Justine Greening: The Government engage regularly 2002-03 394 850,000 5 and actively on EU reform issues with other EU member 2003-04 428 600,000 10 states and with our EU partners at all levels. Formal 2004-05 476 1,050,000 20 negotiations of the future of the EU Budget will begin 2005-06 509 1,100,000 15 when the EU Commission issue their proposal for the 2014-2020 Financial Framework, expected by July 2011. 2006-07 580 950,000 15 2007-08 611 1,100,000 15 The Government believe the EU Budget should reflect 2008-09 646 1,100,000 20 the fiscal deficit. However, within that framework, the 2009-10 666 1,150,000 25 EU should modernise its budget to do more to tackle 639W Written Answers29 NOVEMBER 2010 Written Answers 640W

Members: Correspondence The Financial Services Authority (FSA) is conducting a wholesale review of mortgage regulation in the UK, Mr Sanders: To ask the Chancellor of the Exchequer the ‘Mortgage Market Review’. when he plans to reply to the letter from the hon. The Government believe that it is right for the FSA Member for Torbay of 8 June 2010, on Early Day to ensure that the UK mortgage market has responsible Motion 61. [26117] lending practices. We will continue to work with the FSA, mortgage lenders and intermediaries, and consumer Justine Greening: I have replied to the hon. Member. groups to ensure a mortgage market that is sustainable for all participants. Minimum Wage The FSA published “Mortgage Market Review: Responsible Lending” in July, which set out the detail of Lisa Nandy: To ask the Chancellor of the Exchequer some proposed changes. This paper forms one part of how much has been paid to employees in arrears under an ongoing consultation process. national minimum wage legislation following The FSA has stated that they will fully assess the enforcement action by HM Revenue and Customs potential impact on the market before implementing since 6 April 2009. [23065] any rule changes. Further, the FSA will consult in 2011 on transitional measures to help mitigate any adverse Mr Gauke: HMRC has identified minimum wage effects on existing borrowers. arrears of almost £6.7 million between April 2009 and Treasury Ministers and officials have discussions with the end of October 2010. Her Majesty’s Revenue and a wide variety of organisations in the public and private Customs does not keep separate statistics on the amount sectors as part of the process of policy development of arrears paid or not paid to workers. and delivery.As was the case with previous administrations, HMRC will pursue any known non-payment of arrears it is not the Government’s practice to provide details of through civil recovery action. all such discussions.

Mortgages Mr Betts: To ask the Chancellor of the Exchequer what recent estimate he has made of the (a) level of availability and (b) price range of mortgages. [26562] Mr Betts: To ask the Chancellor of the Exchequer (1) whether he has had discussions with the Secretary of Mr Hoban: Decisions concerning the pricing and State for Communities and Local Government on the availability of mortgages remain commercial decisions Financial Service Authority’s estimate of the likely for individual banks and building societies. The Government effect on house prices of its mortgage market do not seek to intervene in these decisions. proposals; and if he will make a statement; [26555] The Government are committed to fostering diversity (2) what discussions he has had with the Secretary of and promoting competition in the banking sector. A State for Communities and Local Government on the competitive banking sector ensures that the economy implications for its policy on home ownership of the benefits from the right quantity of banking products effects on the availability of mortgage finance of the and services on offer at an economically efficient price. implementation of the Financial Service Authority’s Competition is also a spur to innovation and economic mortgage market proposals; [26556] growth. (3) whether he has made an assessment of the likely effects of the implementation of the Financial Service National Insurance: Members Authority’s mortgage market proposals on the (a) housing market, (b) level of availability of mortgages Harriett Baldwin: To ask the Chancellor of the and (c) supply of new homes; [26557] Exchequer whether the proposed national insurance (4) whether he has discussed with the Council of holiday for employers establishing new businesses will Mortgage Lenders (a) the Financial Service Authority’s apply to new constituency offices opened by hon. responsible lending proposals and (b) the likely effects Members first elected in 2010. [17228] on the housing market of their implementation; [26558] (5) what mechanisms will be in place to ensure that Mr Gauke: The regional employer National Insurance (a) self-employed and (b) other future home-buyers Contributions holiday for new businesses applies to with variable incomes will have access to mortgages new businesses set up on or after 22 June 2010. For the under the Financial Service Authority’s proposals for purposes of the holiday a business is defined as a trade, the mortgage market; [26559] profession or vocation, or property businesses or investment (6) whether he has assessed the likely effects of the businesses. Financial Service Authority’s mortgage market proposals The holiday does not apply to new constituency on small businesses with a turnover of under £1 million; offices opened by hon. Members first elected in 2010. [26560] (7) what mechanisms will be in place to assist Public Expenditure borrowers who are unable to remortgage a property under the Financial Service Authority’s mortgage Andrew George: To ask the Chancellor of the Exchequer market proposals. [26561] (1) if he will analyse the potential effects across (a) household income distribution and (b) household spending Mr Hoban: The Government are committed to a distribution of overall spending reductions agreed in healthy housing and mortgage market. the spending review; [16198] 641W Written Answers29 NOVEMBER 2010 Written Answers 642W

(2) if he will analyse the potential effects across (a) In 2009, HMRC Solicitor’s Office recorded solicitors’ household income distribution and (b) household time charges and other costs of £8,000 in such cases. spending distribution of spending reductions by each So far in 2010, HMRC Solicitor’s Office has recorded Department agreed in the spending review. [16199] solicitors’ time charges and other costs of £170,000 and spent £102,000 + VAT on Counsel’s fees in such cases. Justine Greening: For the first time at the spending review, the distributional impacts of changes in tax, Some of these costs are recoverable from other parties. welfare and Departmental Expenditure Limits have Portsmouth City Football Club Ltd (“PCFC”) was been presented. Chart B.6 (p100) in Annex B of the ordered to pay HMRC’s legal costs of its unsuccessful spending review shows that the top 20% of earners attempt to have HMRC’s winding-up petition struck contribute most to the fiscal consolidation as a percentage out. These were agreed by the joint administrators of of net income and benefits-in-kind. Given that no changes PCFC in the sum of £100,000. This is, however, a debt to indirect taxation were announced at spending review, which is subject to the terms of PCFC’s company distributional impacts by expenditure distribution have voluntary arrangement (“CVA”), and HMRC therefore not been shown in the document. Estimates of indirect only expects to recover these costs to the extent of 20p tax measures announced at the June Budget by expenditure in the £. decile can be found in Charts A3 and A4 (p68) in Annex The joint administrators of PCFC were also ordered A of the June Budget. to pay HMRC’s legal costs of its challenge to the validity of their appointment. These costs are an expense Research and Development Tax Credit of the administration and so are not subject to the terms of the CVA. HMRC therefore expects to recover Ms Bagshawe: To ask the Chancellor of the these costs in full. The amount of these costs has yet to Exchequer how much has been spent on the Small and be agreed between HMRC and the joint administrators Medium-Sized Enterprises Research and Development of PCFC. tax credit scheme since its inception; and how many Finally, HMRC was ordered to pay the legal costs of businesses have participated in that scheme. [26100] the joint administrators of PCFC in relation to HMRC’s unsuccessful challenge to the CVA in the High Court. Mr Gauke: Annual numbers and costs of R and D The joint administrators’ claim was for £335,000 and tax credit claims, including those under the SME scheme, HMRC has been ordered to pay £200,000 of this on are published as National Statistics on the HMRC account. The final liability under this head will only be website at: known once the joint administrators’ claim has been http://www.hmrc.gov.uk/stats/corporate_tax/ subject to detailed assessment by the court. It will not randdtcmenu.htm under any circumstances exceed £335,000 plus the costs The most recent figures, published on 29 October of assessment; but it may in the event be substantially 2010, cover financial years 2000-01 to 2008-09, during less than £335,000 depending upon the view that the which period 17,110 companies have made claims under court takes of the reasonableness of the amounts claimed. the SME scheme totalling £1.72 billion. Revenue and Customs: Manpower Revenue and Customs: Databases

Claire Perry: To ask the Chancellor of the Exchequer Jim McGovern: To ask the Chancellor of the Exchequer what estimate HM Revenue and Customs has made of what estimate his Department has made of the potential the cost to British businesses of implementing the new effect of the implementation of proposed changes in the iXBRL data system in the financial year (a) 2010-11 benefits system on the number of people employed by and (b) 2011-12. [26383] HM Revenue and Customs at its offices (a) in Dundee and (b) nationally. [26333] Mr Gauke: HMRC published an updated impact assessment in April 2009. The work on XBRL was Mr Gauke [holding answer 29 November 2010]: I largely qualitative, rather than quantitative. There have understand the hon. Member is referring to the changes been rapid developments in the XBRL market over outlined in the White Paper ‘Universal Credit: Welfare recent months, and HMRC will be reviewing the figures that Works’. shown in the impact assessment using its normal post It is not possible to be precise at this point of time implementation procedures in due course. about the impact of the transition to Universal Credit until further decisions have been made on the operational Revenue and Customs: Legal Costs design of the new system. Eric Ollerenshaw: To ask the Chancellor of the Revenue and Customs: Sponsorship Exchequer how much HM Revenue and Customs has spent on legal costs in cases involving the FA Premier League and clubs playing in that league in each of the Priti Patel: To ask the Chancellor of the Exchequer last five years. [26138] pursuant to the answer of 23 November 2010, Official Report, column 274W, on incentives, what activities Mr Gauke: All sums of money in this answer have HM Revenue and Customs sponsored in 2009-10; and been rounded to the nearest £1,000. how much it spent on each sponsorship activity. [27476] In 2006, 2007 and 2008 HMRC spent nothing on legal costs in cases involving the FA Premier League Mr Gauke: I refer the hon. Member to the answer and clubs playing in that league. given on 23 November, Official Report, column 274W. 643W Written Answers29 NOVEMBER 2010 Written Answers 644W

The amount spent on sponsorship in 2009-10 was Number £542,034. This was spent on the development and production of The Business Inspector TV programme. 2008-09 72 This figure includes all related fees, website support and 2009-10 89 sponsorship advertising but excludes VAT. 2010-11 29

Tax Collection VAT

Hywel Williams: To ask the Chancellor of the Exchequer Mr Nicholas Brown: To ask the Chancellor of the what commission rates apply to the contracts of HM Exchequer what recent meetings he has had on the Revenue and Customs for tax debts collection services matter of value added tax zero-rating. [26692] with (a) Commercial Collection Services Ltd, (b) Credit Solutions Ltd, (c) Fairfax Solicitors Ltd and (d) iQor Mr Gauke: Treasury Ministers hold meetings with Recovery Services Ltd. [25938] and receive representations from a wide variety of organisations in the public and private sectors as part of Mr Gauke [holding answer 25 November 2010]: The the process of policy development and delivery. It is not commission rates payable are commercially confidential the Government’s practice to provide details of all such and it would not be appropriate to disclose them. meetings and representations. VAT: Further Education Taxation: Financial Services Damian Hinds: To ask the Chancellor of the Exchequer Mr Meacher: To ask the Chancellor of the Exchequer (1) what representations he has received from sixth form what estimate he has made of the tax yield from a colleges and further education colleges on community financial activities tax levied at a rate of (a) 0.01 per use of their facilities and the value added tax rate cent., (b) 0.025 per cent, (c) 0.05 per cent., (d) 0.1 per applied to building construction; and if he will make a cent and (e) 1 per cent. on (i) all UK financial institutions statement; [25824] and (ii) internal UK financial transactions. [26822] (2) if he will change the threshold of community usage of facilities of sixth form colleges and further Mr Hoban: The International Monetary Fund (IMF) education colleges above which buildings construction report for the G20, ‘AFair and Substantial Contribution becomes liable for value added tax in order to by the Financial Sector’, endorses a financial activities encourage colleges to make their facilities more widely tax (FAT) which would be levied on the sum of certain available to the community. [25825] profits and remuneration in the financial sector. The IMF report puts forward several potential designs for a Mr Gauke: Treasury Ministers receive representations FAT. As announced in the June Budget, the Government on a range of subjects; none have been received from are currently examining the costs and benefits of a FAT. sixth form or further education colleges on this matter. At this stage it is not possible to estimate revenues. The construction costs of a building intended to be used solely for a relevant charitable use (that is, use by a Taxation: Multinational Companies charity for a non-business purpose) are zero-rated for VAT. This could include buildings used by sixth form Mr David Davis: To ask the Chancellor of the and further education colleges. Exchequer (1) how many inquiries under controlled For those establishments, based on individual foreign companies legislation had been settled in (a) circumstances, HMRC accept that a building does not 2008-09, (b) 2009-10 and (c) 2010-11 on the latest date need to be used wholly for non-business activity to for which figures are available.; [24788] qualify for the zero rate. For simplification purposes (2) how many inquiries under controlled foreign and by application of their collection and management companies legislation are open. [24789] powers, HMRC accept that such a building can be zero-rated providing its relevant use is at least 95%. Mr Hoban [holding answer 18 November 2010]: It is Reducing the relevant use below this figure would constitute difficult to give a precise answer to this question as the an extension of the zero rate, which we are prevented controlled foreign company (CFC) inquiry is often part from doing under agreements with our EU partners. of a wider investigation. However, our best estimate of Welfare Tax Credits the number of inquiries that are open under the controlled foreign companies legislation is 190. Stephen Timms: To ask the Chancellor of the Similarly CFC issues will have featured in settlements Exchequer what information his Department holds on as part of a wider investigation of a number of issues, the number of employees of FTSE 100 companies who but our best estimate of the number of inquiries that are in receipt of tax credits. [26600] have been settled under the controlled foreign companies legislation in the following years are: Mr Gauke: The information requested is not available.

7MC Ministerial Corrections29 NOVEMBER 2010 Ministerial Corrections 8MC

At present, the only UK Border Agency building that Ministerial Correction provides child care facilities when a parent is being interviewed about their asylum claim is in the North Monday 29 November 2010 West. Additionally, however, in the West Midlands, the UK Border Agency is currently in the final stages of discussions with the Children’s Society and hope to be in a position to provide a supervised play facility for the HOME DEPARTMENT dependents of interviewees by January 2011. If these Asylum: Children facilities prove successful and cost effective, we will consider extending this approach to other offices. Bridget Phillipson: To ask the Secretary of State for The answer should have been: the Home Department which UK Border Agency offices provide child care when asylum seekers are Damian Green: We are committed to ensuring that being interviewed; and what plans she has for the parents who are being interviewed about their reasons for seeking protection are not placed in the position of future of that provision. [16932] having to give an account of personal victimisation or [Official Report, 13 October 2010, Vol. 516, c. 299-300W.] humiliation in the presence of their children. In general, Letter of correction from Mr Damian Green: applicants are advised in their letter of invitation not to An error has been identified in the written answer bring their children to the interview but to make alternative given to the hon. Member for Houghton and Sunderland arrangements. South (Bridget Phillipson) on 13 October 2010. For some families, child care will be easier to arrange—in The answer given was as follows: London, for example, the majority of asylum applicants are able to reside with family and friends and as a result Damian Green: We are committed to ensuring that have a wider support network for child care. We do parents who are being interviewed about their reasons recognise, however, that this will not be possible for all for seeking protection are not placed in the position of families. having to give an account of personal victimisation or At present, the UK Border Agency provides child humiliation in the presence of their children. In general, care facilities when a parent is being interviewed about applicants are advised in their letter of invitation not to their asylum claim in the north-west, Wales and south-west, bring their children to the interview but to make alternative Leeds and in Glasgow. arrangements. Additionally, however, in the west midlands, the UK For some families, child care will be easier to arrange-in Border Agency is currently in the final stages of discussions London, for example, the majority of asylum applicants with the Children’s Society and hope to be in a position are able to reside with family and friends and as a result to provide a supervised play facility for the dependents have a wider support network for child care. We do of interviewees by January 2011. If these facilities prove recognise, however, that this will not be possible for all successful and cost-effective, we will consider extending families. this approach to other offices.

ORAL ANSWERS

Monday 29 November 2010

Col. No. Col. No. CULTURE, MEDIA AND SPORT ...... 507 CULTURE, MEDIA AND SPORT—continued 2018 FIFA World Cup ...... 517 Transport (London Olympics) ...... 514 Creative Industries ...... 518 Universal Broadband Service...... 515 Fibre-optic Broadband ...... 508 Library Provision (CSR) ...... 514 HOUSE OF COMMONS COMMISSION...... 526 Local Media...... 507 Network Services (Regional News) ...... 527 London Olympics (Sporting Legacy) ...... 509 Speaker’s Conference ...... 526 Philanthropy (Arts)...... 512 LEADER OF THE HOUSE ...... 523 Philanthropy (Arts)...... 517 Orientation Programmes (General Election) ...... 525 Regional Theatre (CSR)...... 511 Private Members’ Bills ...... 523 Topical Questions ...... 519 Scrutiny...... 523 Tourism Industry (Eastbourne)...... 511 Standing Orders (Affirmative Resolution)...... 525 Tourism Industry (Wells)...... 516 Welsh Grand Committee...... 526 WRITTEN MINISTERIAL STATEMENTS

Monday 29 November 2010

Col. No. Col. No. CULTURE, MEDIA AND SPORT ...... 59WS HEALTH...... 63WS UK Film Policy...... 59WS Dental National Decontamination Survey 21010... 63WS DEFENCE...... 60WS Ground Close Combat Roles (Women)...... 60WS TREASURY ...... 57WS FOREIGN AND COMMONWEALTH OFFICE..... 61WS Banking Act 2009 (Reporting) ...... 57WS UK Civil Nuclear Trade Policy (India)...... 61WS Debt Management Remit 2010-2011 (Revisions) ... 57WS WRITTEN ANSWERS

Monday 29 November 2010

Col. No. Col. No. BUSINESS, INNOVATION AND SKILLS...... 587W BUSINESS, INNOVATION AND SKILLS—continued Adult Education: Greater London ...... 587W Office of Fair Trading: Competition Commission.. 605W Agriculture: Research...... 588W Overseas Companies: Taxation ...... 605W Aimhigher Programme...... 588W Overseas Students ...... 605W Apprentices...... 590W Phoenix Companies ...... 606W Apprentices: Public Sector ...... 590W Post Offices ...... 606W Business: Departmental Co-ordination ...... 591W Post Offices: ICT...... 607W Ceramics: Trade Fairs ...... 591W Research ...... 607W Commodities Trading ...... 592W Research: Finance...... 607W Co-operatives...... 592W South East England Development Agency...... 608W Departmental Public Expenditure...... 593W Students: Fees and Charges...... 608W Departmental Regulation...... 593W Students: Income ...... 608W Discretionary Learner Support Fund...... 593W Students: Loans ...... 609W Economic Growth...... 594W Teesside Cast Products...... 609W EU Emissions Trading Scheme ...... 594W UK Trade and Investment: Manpower ...... 610W Export Credit Guarantees...... 594W Union Learning Fund...... 612W Export Credits Guarantee Department...... 595W University and College Union: Anti-Semitism ...... 613W Flexible Working...... 596W University Challenge...... 613W Fulbright Commission ...... 596W Further Education: Finance...... 596W CABINET OFFICE...... 559W Further Education: Student Numbers...... 598W Departmental Written Questions ...... 559W Further Education: Transport...... 597W IPSA: Parliamentary Commissioner for Goldsmiths College...... 600W Administration...... 560W Graduates: Teachers...... 601W NDPBs: Finance...... 560W Higher Education...... 602W Higher Education: Admissions ...... 603W Higher Education: Pay...... 603W COMMUNITIES AND LOCAL GOVERNMENT.. 470W Illegal Money Lending...... 603W Affordable Housing: Construction...... 470W Industry: Academics ...... 604W Affordable Housing: West Midlands ...... 471W Internet ...... 604W Arm’s Length Management Organisations: Audit.. 472W Manufacturing Industries: Qualifications ...... 605W Audit Commission ...... 472W Col. No. Col. No. COMMUNITIES AND LOCAL GOVERNMENT— EDUCATION...... 513W continued Academies...... 513W Charities: Shops...... 473W Boarding Schools...... 513W Council Housing: Finance ...... 473W Bookstart Programme: Finance ...... 513W Council Tax: Private Rented Housing ...... 474W Children: Hearing Impairment ...... 514W Departmental Disciplinary Proceedings...... 474W Children: Service Personnel...... 514W Departmental Legal Costs ...... 474W Curriculum ...... 515W Fire Services...... 474W Departmental Grants...... 515W Fire Services: East of England ...... 474W Departmental Official Hospitality...... 515W Fire Services: North East ...... 475W Departmental Pay ...... 516W Fires: Insurance ...... 476W Education Maintenance Allowance...... 516W Fires: North East ...... 476W Education Maintenance Allowance: Birmingham.. 517W Homelessness: Finance ...... 477W Education Maintenance Allowance: North Housing Associations...... 477W Tyneside...... 518W Housing: Construction...... 477W Free School Meals: Northumberland...... 518W Housing: Empty Property ...... 478W Free Schools...... 519W Local Government Finance ...... 479W GCE A-level...... 519W Local Government: Regulation...... 479W Music: Finance ...... 523W Members: Correspondence ...... 479W New Schools Network...... 523W Multiple Occupation: Licensing ...... 479W Personal, Social, Health and Economic National Park Authorities...... 480W Education ...... 524W Planning Permission: Appeals...... 480W Primary Education...... 524W Public Houses ...... 480W Primary Education: Curriculum...... 525W Right to Acquire Scheme ...... 481W Pupils: Bullying...... 525W Social Rented Housing: Rents...... 481W Pupils: Disadvantaged...... 526W Social Rented Housing: Standards...... 482W Pupils: Electoral Register ...... 529W Youth Services: Expenditure ...... 482W Pupils: Equality...... 529W Pupils: Health ...... 530W CULTURE, MEDIA AND SPORT...... 561W Resits: Free School Meals ...... 530W Arts...... 561W Schools ...... 530W Arts Council: Finance...... 562W Schools: Capital Investment...... 531W Arts: Finance ...... 563W Schools: Hearing Impairment ...... 531W Broadcasting: Scotland ...... 565W Schools: Sports ...... 532W Creative Industries: Scotland ...... 561W Schools: Vocational Guidance...... 533W Departmental Degrees ...... 567W Science: GCSE ...... 536W Departmental Written Questions ...... 567W Specialised Diplomas ...... 543W London Olympics: Sporting Legacy ...... 561W Specialist Schools...... 545W Olympic Games 2012 ...... 568W Technology: Teachers...... 545W Olympic Games 2012: Employment ...... 568W Travellers: Education...... 545W Radio Frequencies ...... 569W Wines ...... 546W Royal Parks Agency ...... 569W Work Experience...... 546W Youth Services: Manpower ...... 546W DEFENCE...... 570W Afghanistan: Peacekeeping Operations...... 570W ELECTORAL COMMISSION COMMITTEE ...... 511W Air Force: Rescue Services ...... 571W Departmental Written Questions ...... 511W Air Forces: Military Bases...... 572W Armed Forces: Deployment ...... 572W Armed Forces: Housing ...... 572W ENERGY AND CLIMATE CHANGE...... 547W Armed Forces: Manpower ...... 573W EU Emissions Trading Scheme...... 547W Armed Forces: Northern Ireland ...... 573W Renewable Energy: Heating ...... 547W Armed Forces: Pensions...... 574W Armed Forces: Young People...... 574W FOREIGN AND COMMONWEALTH OFFICE .... 548W Atomic Veterans and the Health Protection Afghanistan: Children ...... 548W Agency’s Mortality Study ...... 574W Afghanistan: Christianity...... 548W AWE Aldermaston...... 575W Afghanistan: Police ...... 548W Departmental Grants...... 576W Auschwitz Restoration Project ...... 549W Departmental Pay ...... 576W Bahrain: Foreign Relations ...... 549W Departmental Redundancy ...... 577W Cayman Islands: Genetically Modified Organisms. 549W Departmental Research...... 578W Colombia: Homicide...... 550W Nimrod Aircraft...... 578W Colombia: Military Aid ...... 551W Nuclear Submarines...... 579W Departmental Allowances...... 551W Nuclear Weapons: Finance ...... 579W Departmental Grants...... 551W Public Expenditure...... 579W Departmental Lobbying...... 552W Rescue Services ...... 580W Government Hospitality: Wines...... 552W Special Forces: Public Expenditure ...... 582W Guatemala ...... 553W Strategic Defence and Security Review ...... 582W Guatemala: Ethnic Groups ...... 553W Surveillance...... 583W Israel: Borders...... 553W Territorial Army ...... 584W Israel: Foreign Relations ...... 554W World War II: Anniversaries ...... 584W Kashmir...... 554W MI6: Finance ...... 555W DEPUTY PRIME MINISTER ...... 559W Middle East: Armed Conflict...... 555W Members: Correspondence ...... 559W Religious Freedom ...... 556W Col. No. Col. No. FOREIGN AND COMMONWEALTH OFFICE— JUSTICE—continued continued Legal Aid Scheme: North West...... 495W Shaker Aamer ...... 556W National Offender Management Service: Sherif Hassan Abdelwahab...... 556W Secondment ...... 496W Spain: Deaths...... 556W Office of the Public Guardian: Lost Property ...... 496W Sri Lanka: Administration of Justice ...... 557W Prisoners ...... 496W Sri Lanka: Human Rights...... 557W Prisoners’ Release ...... 497W Taiwan: Climate Change Convention...... 558W Prisoners: Voting Rights ...... 497W Uganda: Prisoners ...... 558W Probation ...... 497W Western Sahara: Human Rights...... 558W Reoffenders...... 498W Western Sahara: Politics and Government ...... 559W Roads: Accidents ...... 498W Western Sahara: Violence...... 559W Squatting ...... 498W Victim Support Schemes ...... 499W HOME DEPARTMENT ...... 499W Alcoholic Drinks: Crime...... 499W LEADER OF THE HOUSE ...... 569W Asylum: Deportation ...... 499W Members: Allowances ...... 569W Asylum: Iraq...... 500W Oral Questions ...... 570W Crime: Databases...... 501W Crime: Hate ...... 502W NORTHERN IRELAND ...... 469W Cybercrime: Human Rights ...... 503W Irish Arms Trial: Disclosure of Information ...... 469W Departmental Food...... 503W Deportation: Iran...... 504W SCOTLAND...... 469W Detainees: Children...... 504W FIFA: Finance ...... 469W Entry Clearances...... 505W Post Offices ...... 470W Entry Clearances: Greater London ...... 505W Universities: Visits...... 470W Football: South Africa ...... 506W Voluntary Organisations ...... 470W Immigration...... 506W Police and Criminal Evidence Act 1984 Code of TRANSPORT ...... 482W Practice A ...... 506W BRB (Residuary): Wales ...... 482W Police Community Support Officers...... 507W Departmental Contracts ...... 482W Police: Cybercrime ...... 507W Departmental Lobbying...... 483W Police: Disciplinary Proceedings ...... 507W Departmental Postal Services...... 485W Police: Manpower ...... 508W Freight Facilities Grant...... 485W Police: Offenders ...... 508W Invalid Vehicles ...... 486W Police: Ports ...... 508W Members: Correspondence ...... 486W Stop and Search ...... 508W Public Transport: Disability ...... 486W Stop and Search: Ethnic Groups...... 509W Railways: Freight ...... 487W Stop and Search: Terrorism...... 510W Railways: Overcrowding...... 487W Visas ...... 510W Road Safety Markings Association ...... 488W Yarl’s Wood Detention Centre: Children ...... 511W Roads: Safety ...... 488W Roads: Snow and Ice...... 488W HOUSE OF COMMONS COMMISSION...... 584W Taxis: Fuels...... 489W 10:10 Campaign ...... 585W Tintwistle Hollingworth and Mottram Bypass...... 490W Savings Programme: Consultation ...... 584W Transport: Concessions...... 490W Utilities ...... 585W Transport: Local Enterprise Partnerships ...... 489W

INDEPENDENT PARLIAMENTARY TREASURY ...... 633W STANDARDS AUTHORITY COMMITTEE ...... 585W Bank Levy...... 633W Departmental Written Questions ...... 585W Banks: Pay ...... 633W Email ...... 587W Banks: Regulation...... 633W Child Benefit...... 633W INTERNATIONAL DEVELOPMENT...... 613W Child Benefit: Young People ...... 634W Afghanistan: Children...... 613W Credit Unions ...... 635W Africa: Famines...... 613W Crown Currency Exchange ...... 635W Agriculture: Food Supply...... 614W Debts: Disadvantaged ...... 635W Departmental Grants...... 614W Departmental Civil Service Live Conference...... 636W Departmental Public Expenditure...... 615W Departmental Lobbying...... 636W Developing Countries: Food ...... 615W Departmental Official Cars...... 636W Developing Countries: Human Rights ...... 617W Departmental Official Hospitality...... 636W Energy: Export Credit Guarantees...... 618W Departmental Speeches...... 637W EU Aid: Fossil Fuels...... 618W Departmental Visits Abroad ...... 637W Palestinians: EU Aid...... 618W EC Law...... 637W Palestinians: Overseas Aid ...... 619W EU Budget ...... 637W EU Law...... 638W JUSTICE...... 490W Excise Duties: Beer ...... 638W Community Orders: Finance ...... 490W Members: Correspondence ...... 639W Coroners ...... 491W Minimum Wage ...... 639W Dog Fouling...... 492W Mortgages...... 639W Land Registry ...... 493W National Insurance: Members...... 640W Legal Aid Scheme ...... 493W Public Expenditure...... 640W Legal Aid Scheme: Contracts...... 495W Research and Development Tax Credit ...... 641W Col. No. Col. No. TREASURY—continued WORK AND PENSIONS ...... 620W Revenue and Customs: Databases...... 641W Access to Work Programme ...... 620W Revenue and Customs: Legal Costs ...... 641W Carer’s Allowance ...... 620W Revenue and Customs: Manpower...... 642W Cold Weather Payments: Westmorland ...... 621W Revenue and Customs: Sponsorship ...... 642W Communication: Young People...... 622W Tax Collection...... 643W Departmental Sick Leave ...... 622W Taxation: Financial Services ...... 643W Disability Living Allowance: Medical Taxation: Multinational Companies ...... 643W Examinations...... 622W VAT ...... 644W Employment Schemes: Disability...... 623W VAT: Further Education ...... 644W Housing Benefit ...... 624W Welfare Tax Credits...... 644W Housing Benefit: Aberdeenshire...... 625W Housing Benefit: Fife...... 626W WALES...... 469W Housing Benefit: Finance...... 626W Departmental Sponsorship ...... 469W Housing Benefit: Social Security Benefits ...... 627W EU Law...... 469W Lone Parents: Social Security Benefits ...... 627W FIFA: Finance ...... 469W National Employment Savings Trust Scheme...... 627W Pensioners: Cost of Living ...... 629W WOMEN AND EQUALITIES ...... 467W Personal Income: East of England...... 629W Black Asian and Minority Ethnic Women Poverty: Children ...... 630W Councillors Taskforce: Expenditure...... 467W Social Security Benefits...... 631W Equal Pay: Gender...... 468W State Retirement Pensions...... 632W Equality and Human Rights Commission...... 467W State Second Pension ...... 632W Equality: Public Bodies...... 468W MINISTERIAL CORRECTION

Monday 29 November 2010

Col. No. HOME DEPARTMENT ...... 7MC Asylum: Children...... 7MC 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,

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CONTENTS

Monday 29 November 2010

Oral Answers to Questions [Col. 507] [see index inside back page] Secretary of State for Culture, Olympics, Media and Sport Leader of the House House of Commons Commission

Autumn Forecast [Col. 529] Statement—(Chancellor of the Exchequer)

Backbench Business [11th allotted day] Banking Reform [Col. 554] Motion—(Mr Meacher)—on a Division, negatived

Independent Financial Advisers (Regulation) [Col. 599] Motion—(Mark Garnier) Motion lapsed

Dental Practitioners [Col. 638] Debate on motion for Adjournment

Written Ministerial Statements [Col. 57WS]

Written Answers to Questions [Col. 467W] [see index inside back page]

Ministerial Correction [Col. 7MC]