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Procurement (Fraud)

Mr. Menzies Campbell: To ask the Secretary of State for Defence what the Government's policy is on identifying fraud in procurement contracts; what safeguards exist to

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protect against fraud; and what steps have been taken as part of the Smart Procurement initiative to combat fraud. [122754]

Dr. Moonie: The MOD adopts a 'zero tolerance' policy on all types of fraud and following Treasury guidance seeks to reduce risk, including that applying to procurement contracts, through effective controls and prompt investigation. Safeguards created to deter procurement fraud, including collusion and corruption, cover separation of duties, rotation of staff, hospitality books and quality checks. Good procurement practices are employed, such as effective competition, avoidance where possible of single source 'cost plus' arrangements, providing clear specifications, avoiding changes to requirement after contract award and authorising payment only when requirements have been met. These safeguards also naturally apply to the Smart Procurement process during the introduction of which the amount of fraud awareness training to procurement staff increased. Moreover, full guidance on fraud deterrence and detection is now available to all procurement staff on internal electronic mail systems as part of a Project Manager's toolkit. These specialist aspects of the procurement process are part of a wider range of fraud deterrence initiatives already in place or about to be introduced, including the creation in February 1999 of a Defence Fraud Analysis Unit. This unit now acts as the focus for MOD fraud matters including the promotion of risk awareness and uses the latest data mining and fraud detection techniques in a proactive response to fraud risk.

Mr. Menzies Campbell: To ask the Secretary of State for Defence on how many occasions in the past five years his Department has investigated allegations of fraud in procurement contracts; on how many occasions allegations were upheld; and on how many occasions prosecution followed, indicating in each case the contract and project concerned. [122755]

Dr. Moonie: I will write to the right hon. and learned Member and a copy of my letter will be placed in the Library of the House.

Heavy Airlift Capability

Mr. Brazier: To ask the Secretary of State for Defence if he will list the (a) armoured vehicles and (b) helicopters (i) in service and (ii) shortly to enter service in the armed forces which (A) the C17 can carry, (B) the A400M can carry, (C) the C130J can carry and (D) none of the above can carry; and in the case of helicopters if he will specify in each case whether carriage requires partial dismantling. [122914]

Dr. Moonie: I will write to the hon. Member and a copy of my letter will be placed in the Library of the House.

Mr. Hoyle: To ask the Secretary of State for Defence if the Airbus A400M is the preferred supplier for the long-term strategic heavy lift aircraft. [122933]

Mr. Hoon: I refer my hon. Friend to the statement I made to the House on Tuesday 16 May in which I announced the Government's intention to procure

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25 A400M aircraft, to be developed and produced by Airbus Military Company, to meet the strategic airlift needs of our armed forces in the medium to long-term.

Strategic Export Controls

Mr. Wigley: To ask the Secretary of State for Defence if he will ensure that, for future years, the Annual Report on Strategic Export Controls includes full information on the number and type of weapons exported. [121925]

Mr. Hain: I have been asked to reply.

We are considering the content and format of future Annual Reports in the light of comments on the first two Reports, in particular the joint Report by the Defence, Foreign Affairs, International Development and Trade and Industry Committees, to which the Government will respond as soon as possible.

EDUCATION AND EMPLOYMENT

Departmental Initiatives

Mr. Don Foster: To ask the Secretary of State for Education and Employment if he will list for each (a) area-based and (b) other regeneration-related initiative

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for which his Department is responsible (i) the amount budgeted and (ii) the total expended in each financial year for the planned lifetime of each initiative. [119792]

Mr. Wills [holding answer 20 April 2000]: The Department's aim is


To achieve that, programmes must reach and impact effectively on people who are suffering from disadvantage. While not directly focused on regenerating deprived areas, DfEE initiatives offer crucial support for those individuals most affected by deprivation. The steps which the Department is taking to widen participation in learning, particularly targeting those who traditionally drop out or have low levels of achievement, will also contribute to the regeneration of local areas. These include Excellence in Cities, piloting Education Maintenance Allowances and introducing the Connexions Service. In addition a substantial proportion of New Deal For Schools funding benefits schools in disadvantaged areas. We have also made available £16 million for improving the quality and developing the range of adult basic skills provision in 1999-2000 and 2000-01.

The table includes sums already expended and planned budgets for the current and next financial years for those initiatives which could most easily be described as (a) area-based, and (b) regeneration-related. Planned budgets may change and expenditure plans beyond March 2002 will be determined by the current spending review.

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£ million

Outturn Estimated outturnForecast budget
FY 1997-98FY 1998-99FY 1999-2001FY 2000-01FY 2001-02
Education Action Zones (Rounds 1 and 2)--10.229.250.060.0
Employment Zones (prototypes from 1998-2000--fully fledged from 2000-02)1.05.016.056.056.0
Neighbourhood Support Fund----20.020.020.0
Sure Start(2)----(3)19.0184.0184.0
Excellence in Cities----32.0200.0(4)--
Early Excellence Centres0.121.94.110.010.0
Early Years Nursery Education Grant funding for education places for three-year-olds----38.0110.0250.0
New Start0.933.855.65.0(5)--
Millennium Volunteers(6)--0.44.015.015.0
Community Champions----0.461.0--
Adult and Community Learning Fund--(7)5.466.16.55.0
New Deal for Schools(8)78.077223.710282.355500.400293.400

(2) Sure Start is a cross-departmental programme, which is overseen by a steering group involving Ministers from the Departments of Education and Employment, Health, Social Security, Environment, Transport and the Regions, Culture, Media and Sport and the Home Office, the Lord Chancellor's Department and the Treasury.

(3) Spending in the first year was lower than originally planned; the underspend will be carried forward and used to meet the costs of programme activity in future years.

(4) The final figure for the third year of this initiative is dependent on the Year 2000 Review.

(5) To be decided in the light of the phased introduction of the Connexions Service which will build on the New Start partnership working from April 2001.

(6) These figures do not include a total of £12.75 million from the Windfall Tax which has been made available as start-up funding for the programme in England over the lifetime of this Parliament.

(7) This figure includes £3.27 million on Laptop Programme for Adult and Community Learning Tutors.

(8) These are total funding figures. A substantial proportion is spent in schools serving disadvantaged areas.


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School Budget Deficits

Mr. Wray: To ask the Secretary of State for Education and Employment (1) what estimate he has made of the number of schools that are operating with a budget deficit; [122719]

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Ms Estelle Morris: Returns received from 145 of the 150 Local Education Authorities in England show that of 21,542 schools in those Authorities, 2,470 schools

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reported a budget deficit at 31 March 1999, leaving 19,072 without deficit. At 31 March 1998, schools in deficit numbered 2,753.

While it is not possible to give a definitive answer on the cause of deficits, it is clear that historic underfunding has led schools to attempt to protect services in the anticipation of the kind of improved funding which is in evidence in the current financial year.


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