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Transco

Mr. Gibb: To ask the Secretary of State for Trade and Industry what proposals Ofgem has to change Transco's investment criterion of being able to cope with a one in 20 years summer as well as a one in 20 years winter. [143451]

Mrs. Liddell: Transco's investment criterion is a matter for Ofgem.

Ofgem published a consultation paper on Transco's investment policy in May and has recently published their response to this consultation. Both publications can be found on Ofgem's website at www.ofgem.gov.uk.

21 Dec 2000 : Column: 247W

Mr. Gibb: To ask the Secretary of State for Trade and Industry what changes Ofgem proposes to Transco's licence conditions to encourage new capacity at gas terminals. [143450]

Mrs. Liddell: Proposals for licence amendments are a matter for Ofgem.

New Electricity Trading Arrangements

Mr. Gibb: To ask the Secretary of State for Trade and Industry on what date he will take a decision on whether NETA can go-live on 27 March 2001. [143452]

Mrs. Liddell: A review of the preparation for the implementation on New Electricity Trading Arrangements will take place in January. Assuming a positive outcome to this review, 27 March will be confirmed as the intended go-live date. However, a final decision to go-live on a particular date cannot be taken until nearer the time.

National Insurance Fund

Mr. Chaytor: To ask the Secretary of State for Trade and Industry how many payments of employment tribunal awards in respect of insolvent employers have been made from the National Insurance Fund in each of the last five years; and what criteria were applied to these awards. [142851]

Mr. Alan Johnson [holding answer 19 December 2000]: I have arranged for some figures to be specially compiled and will write to my hon. Friend as soon as this has been done and place the information in the Library of the House.

Acquired Rights Directive 1998

Mr. Boswell: To ask the Secretary of State for Trade and Industry when the consultation document on the review of implementation of the Acquired Rights Directive 1998 will be published; if arrangements are in place for the Directive's incorporation into UK law by July 2001; and if he will make a statement. [143438]

Mr. Alan Johnson [holding answer 20 December 2000]: I am currently considering the changes to UK law needed to implement the revised Acquired Rights Directive.

Aylesbury Automation

Mr. Lidington: To ask the Secretary of State for Trade and Industry when he received export licence application No. 16047 from Aylesbury Automation; when he expects to reach a decision on the application; and if he will make a statement. [143707]

Dr. Howells: Licences to export arms and other goods whose export is controlled for strategic reasons are issued by the Secretary of State for Trade and Industry acting through the DTI's Export Control Organisation (ECO). Licence Application 16047 was received by the ECO on 9 August 2000. Individual licence applications are circulated by the DTI to other Government Departments with an interest as determined by those Departments in line with their policy responsibilities.

A decision has not yet been reached on this application, but will be taken as quickly as possible consistent with the need to give full consideration to the issues involved.

21 Dec 2000 : Column: 248W

UKAEA Officers

Mr. Chaytor: To ask the Secretary of State for Trade and Industry what powers he has to regulate the employment of armed UKAEA officers on board ships. [142855]

Mrs. Liddell: My right hon. Friend the Secretary of State for Trade and Industry has powers under section 3(2) of the Atomic Energy Act 1954 to issue directions to the UKAEA, under which matters relating to the employment of officers of the UKAEA Constabulary on board ships may be addressed.

OFT Report (Legal Profession)

Mr. Dismore: To ask the Secretary of State for Trade and Industry if he has received the OFT report on the legal profession; when he intends to make the report public; and if he will make a statement. [143796]

Dr. Howells: I should receive the OFT report on restrictions in the professions by the end of January next. I understand that the Director General of Fair Trading will wish to publish this report in due course. I expect publication to follow consideration by Ministers of the report's findings.

DEFENCE

Type 45 Destroyer

Mr. Chidgey: To ask the Secretary of State for Defence (1) what discussions (a) he and (b) officials of his Department have had with executives of BAE Systems regarding a non-competitive procurement strategy for the Type 45 destroyer; [142764]

Dr. Moonie: [holding answer 14 December 2000]: The contract for the Demonstration and First-of-Class Manufacture (DFM) was placed with BAE Systems Electronics, the nominated Prime Contractor for the Type 45 programme, on 20 December. As I announced on 11 July 2000, Official Report, column 701, the design will be capable of evolutionary improvement through an incremental acquisition plan. This will enable the required capability to be inserted during the class build and provide growth paths to enable future capability insertion over the life of the class.

Prices for changes to specification will be negotiated in the usual way and be subject to affordability criteria. The contractual maximum price represents the limit of our cost exposure and the contract contains strong incentives for the contractor to deliver at a lower price. The hon. Member will be pleased to note that the SMART approach adopted by the MOD provides the best opportunity to deliver additional capability into the programme without increasing the price.

21 Dec 2000 : Column: 249W

The DFM contract covers the construction of the first three ships of the class only. Sub-contractors must now reach satisfactory agreements with the Prime Contractor to secure the opportunities offered to them under the contract; the MOD will--through its involvement in the Integrated Project Team--ensure that these negotiations are conducted fairly. MOD agreement to all significant sub-contracts will be required.

The BAE Systems Type 45 Prime Contractor and MOD have received an unsolicited proposal from BAE Systems Marine concerning the procurement approach to the Type 45 programme. The proposal will be evaluated and the MOD will consult with other interested Departments before coming to a conclusion.

Plans are to seek bids for the next batch of three ships around 2004. BAE Systems Marine and Vosper Thornycroft have expressed an interest in bidding for this work. Bids for work on the follow-on ships should be made to the Prime Contractor at the appropriate time.

Mr. Key: To ask the Secretary of State for Defence (1) how the Design for Manufacture contract with BAE Systems for the Type 45 programme specifies equitable competition between BAE Systems Marine and Vosper Thornycroft for batches of later ships of the class; and if he will make a statement; [142754]

Dr. Moonie [holding answer 14 December 2000]: The contract for the Demonstration and First-of-Class Manufacture (DFM) was placed with the BAE Systems Prime Contract Office, on 20 December. The in-service date is 2007 for the first-of-class ship. The absence of 'back to back' sub-contracts with the shipyards will not delay this programme.

The DFM contract covers the construction of the first three ships of the class only. Sub-contractors must now reach satisfactory agreements with the Prime Contractor to secure the opportunities offered to them under the contract; the MOD will--through its involvement with the Integrated Project Team--ensure that these negotiations are conducted fairly. MOD agreement to all significant sub-contracts will be required.

Plans are to seek bids for the next batch of three ships around 2004. BAE Systems Marine and Vosper Thornycroft have expressed an interest in bidding for this work. Bids for work on the follow-on ships should be made to the Prime Contractor at the appropriate time.

Mr. Matthew Taylor: To ask the Secretary of State for Defence what cost to benefit analysis his Department has undertaken of moving from a competitive to a non-competitive procurement strategy for the Type 45 programme. [142750]

Dr. Moonie [holding answer 14 December 2000]: There has been no move to a non-competitive procurement strategy for the Type 45 programme and thus no change to the strategy I announced on 11 July 2000,

21 Dec 2000 : Column: 250W

Official Report, columns 701-712. We would not move to a non-competitive procurement strategy unless there were compelling reasons to do so.

The BAE Systems Type 45 Prime Contractor and MOD have received an unsolicited proposal from BAE Systems Marine concerning the procurement approach to the Type 45 programme. The proposal will be evaluated and the MOD will consult with other interested Departments before coming to a conclusion.


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