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OSCE Summit (Istanbul)

Mr. Wyatt: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the outcome of the Organisation for Security and Co-operation in Europe summit in Istanbul. [99591]

Mr. Vaz: My right hon. Friend the Foreign Secretary represented the United Kingdom at the Summit meeting of the Organisation for Security and Co-operation in Europe on 18-19 November in Istanbul. The meeting agreed a Charter for European Security, an adapted Treaty on Conventional Armed Forces in Europe, and a revised Vienna Document on confidence and security building measures. Copies of these documents and the Summit Declaration will be placed in the Library of the House.

The Charter for European Security sets out principles for future security co-operation in Europe and improves the operational capabilities of the Organisation, particularly in response to crises. It also reinforces the immediate and legitimate interest of all participating states in the implementation of their commitments undertaken within the Organisation.

The Summit welcomed the signature of an adapted Treaty on Conventional Armed Forces in Europe. The adapted Treaty will provide a greater degree of military stability through strict limitations, increased transparency and lower permitted levels for conventional forces in its area of application. My right hon. Friend made it clear that UK ratification would depend on the level of compliance of all states within the agreed limits.

The revised Vienna Document incorporates various decisions taken since 1994. The Forum for Security Co-operation also agreed to study the contribution that the Organisation might make to the international effort to curb the spread of small arms and light weapons.

The situation in Chechnya was a key concern at the Summit. My right hon. Friend the Foreign Secretary discussed the issue intensively in a range of meetings with other Ministers, including the Foreign Minister of the Russian Federation. The Russian Delegation eventually accepted a passage in the Summit Declaration saying that a political solution to the situation in Chechnya was essential and that the assistance of the Organisation would contribute to achieving that goal. The Declaration also welcomed the agreement of the Russian Federation to a visit by the Chairman-in-Office to the region and reaffirmed the existing mandate of the Organisation's Assistance Group to Chechnya.

The Summit also welcomed the separate bilateral agreements between the Russian Federation and the Republics of Georgia and Moldova under which all Russian forces will withdraw from Moldova by the end of 2002 and two of the four Russian bases in Georgia will be closed by 1 July 2001.

The Summit Declaration draws attention to the Organisation's important role in early warning, conflict prevention, crisis management and post-conflict rehabilitation in its area, including particularly the work of the High Commissioner on National Minorities and the

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Organisation's missions in the field. The Declaration confirms that the Organisation will continue to play an important part in the consolidation of peace in Kosovo.

Austria will assume the Chairmanship-in-Office of the Organisation in year 2000. The Summit agreed that Romania would succeed Austria in year 2001.

East Timor

Mr. Wigley: To ask the Secretary of State for Foreign and Commonwealth Affairs if the Government will apply economic sanctions against Indonesia if its Government does not take immediate and effective steps to disarm the militia whose activities are preventing refugees from returning to East Timor. [99548]

Mr. Battle: We have made it clear to the Indonesian Government that swift action to accelerate the return of displaced East Timorese to their homes is essential for Indonesia to regain its international standing. We continue to urge them in this; our Ambassador in Indonesia pressed the point during his visit from 1-4 November when he met senior local political leaders and pro-integrationists. We understand that the TNI and INTERFET are now co-operating more closely. 92,000 refugees are now reported to have returned to East Timor.

TREASURY

National Insurance

Mrs. Lawrence: To ask the Chancellor of the Exchequer if he has completed his review of National Insurance contributions for 2000-01. [100398]

Dawn Primarolo: I have completed the annual review under section 141 of the Social Security Administration Act 1992. In addition to the reforms to the National Insurance contributions announced by my right hon. Friend the Chancellor of the Exchequer in his March 1999 Budget, I propose the following changes to take effect from 6 April 2000.

Employers and Employees

In line with the Social Security Contributions and Benefits Act 1992, the Lower Earnings Limit for Class 1 contributions is to be raised to £67 a week. It is set at the level of the basic retirement pension rate for a single person from April 2000, rounded down to the nearest pound.

Class 3 (Voluntary) Contributions

The rate of Class 3 contributions will be increased by 10p to £6.55 a week.

Treasury Grant

Although benefit expenditure from the National Insurance Fund will broadly match income, I need to ensure that the Fund can maintain a prudent working balance throughout the coming year. In accordance with section 2(2) of the Social Security Act 1993, I propose to do so by prescribing that the maximum Treasury Grant which may be made available to the Fund in 2000-01 shall not exceed 2 per cent. of the estimated benefit expenditure from the Fund for that year.

I shall be laying a draft re-rating Order before Parliament together with a report by the Government Actuary describing the effects of these re-rating proposals and previously announced reforms on the National Insurance Fund.

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The following table sets out the rates and thresholds for National Insurance contributions proposed for 2000-01.

National Insurance contributions proposed April 2000 re-rating

Item	2000-01
Lower Earnings Limit	£67
Upper Earnings Limit	£535
Primary Threshold	£76
Secondary Threshold	£84
Employee's contributions	10% of £76.01 to £535
Employee's Contracted-out Rebate	1.6%
Married Women Reduced Rate	3.85%
Employer's Contribution Rates	12.2%
Employers Contracted-out Rebate	3.0% COSR
	0.6% COMP
Class 2 Self employed Contribution	£2.00
Small Earnings Exception	£3,825
Class 3 (voluntary) Contribution	£6.55
Class 4 Contributions--Upper Profits Limit	£27,820
Class 4 Contributions--Lower Profits Limit	£4,385
Class 4--Contribution Rate	7.0%

SOCIAL SECURITY

Invalid Care Allowance

Mr. Burstow: To ask the Secretary of State for Social Security (1) if he will estimate the cost and number of beneficiaries of increasing the earnings limit for invalid care allowance from £50 to (a) £75, (b) £100, (c) £125 and (d) £150; [98463]

(2) if he will estimate the cost and number of beneficiaries of creating two levels of invalid care allowance, one at a lower rate, set at the level of short-term NI benefits and paid to all carers for the first three months and thereafter to carers giving fewer than 35 hours of care a week; and one at a higher level set at the level of the basic retirement pension available after three months to all carers giving more than 35 hours of care a week. [98461]

Mr. Bayley: The information is not available.

Mr. Burstow: To ask the Secretary of State for Social Security if he will estimate the cost and number of beneficiaries of continuing to pay invalid care allowance after care ends for (a) four weeks and (b) eight weeks. [98464]

Mr. Bayley: The estimated cost of continuing to pay Invalid Care Allowance (ICA) after entitlement ceases for four weeks is £10 million in 2000-01 with an estimated 50,000 gainers; and after entitlement ceases for eight weeks is £20 million in 2000-01 with an estimated 50,000 gainers.

For those who are most vulnerable and in greatest need, income is already protected via the income-related benefits, despite the loss of ICA when caring ends.

Mr. Burstow: To ask the Secretary of State for Social Security (1) if he will estimate the cost of extending the entitlement to invalid care allowance to all people of pensionable age who provide more than 35 hours a week of care (a) at its current level and (b) if it were set at the same level as the minimum income guarantee; [98465]

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(2) if he will estimate the cost and number of beneficiaries of paying the carers' premium to pensioners who (a) provide at least 35 hours of care, and (b) provide care for a recipient of attendance allowance. [98462]

Mr. Bayley: If all other Invalid Care Allowance (ICA) conditions of entitlement are met, the estimated cost ¹ of extending (ICA) new claims to over 65s is £5 million in 2000-01, with 35,000 gainers. In addition, and for pensioner recipients only, raising ICA to the level of the Minimum Income Guarantee (currently £75) is £105 million (after income related benefit offset) in 2000-01, with 250,000 gainers.

It is estimated that the consequent extension of carer premium entitlement to those aged over 65 would cost £15 million in Income Support (IS) in the year 2000-01 ² , with 20,000 gainers, together with a much smaller sum of Housing Benefit and Council Tax Benefit. About half of this cost will arise from individuals caring for Attendance Allowance recipients ³ .

¹ Source: Family Resources Survey 1997-98.

² Cash prices. Costs rounded to the nearest £5 million, gainers rounded to nearest five thousand.

³ As survey based estimates the above is subject to sampling error. The accuracy of the costing is also affected by limitations of the data available on the time spent caring for a sick or disabled person. The answer depends on there being underlying entitlement to ICA and that all other ICA entitlement rules remain in place.

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