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Export Credits Guarantee Department

Matthew Taylor: To ask the Secretary of State for Trade and Industry what estimate she has made of the outstanding contingent liabilities of the Export Credits Guarantee Department; and if she will make a statement. [104426]

Ms Hewitt: As at the end of February 2003, ECGD had outstanding contingent liabilities of £14,576 million.

Generic Drugs

Norman Lamb: To ask the Secretary of State for Trade and Industry what assessment she has made of the trade-related aspects of intellectual property rights (TRIPS) negotiations on access to generic drugs for developing countries; and if she will make a statement on the Government's position on current TRIPS negotiations. [104850]

Ms Hewitt [holding answer 25 March 2003]: The Government is working, with its EU partners, towards agreement in the WTO on an effective solution to the problems faced by developing countries with no or insufficient manufacturing capacity in the pharmaceutical sector in making effective use of compulsory licensing under the TRIPS Agreement.

Within the EU, we have taken a flexible and constructive approach to the current TRIPS negotiations and public health. Our aim has always been to find a solution that responds to the need for countries to have recourse when necessary to compulsory licensing, while not undermining the wider intellectual property framework that is essential for research into new medicines. Discussions came close to agreement late last year on the basis of a compromise text circulated before Christmas. We are working to secure agreement before the next WTO Ministerial meeting in Cancun in September.

Pharmacies

Gregory Barker: To ask the Secretary of State for Trade and Industry if he will make a statement on the recent Office of Fair Trading report containing proposals to abolish the control of entry regulations for pharmacies. [104240]

John Mann: To ask the Secretary of State for Trade and Industry what assessment she has made of possible losses to the small business sector arising from the Office of Fair Trading report on pharmacies. [104443]

Ms Hewitt [holding answer 24 March 2003]: The Government is committed to ensuring all sectors are responsive to consumer needs, getting rid of unnecessary regulations that inhibit innovation. The Enterprise Act will strengthen the role of the competition authorities in tackling markets that do not work well for consumers and business. The OFT report

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provided a useful analysis of the market impact of the current control of entry regulations on consumers and competition and highlights the need for the present regime governing pharmacies to be updated. We have already taken steps to open up the pharmacy market by allowing for mail order and internet pharmacies. At the same time, the Government wants to see an increased role for community pharmacists in providing services to NHS patients and we are currently developing a new contractual framework to make that happen.

The Government needs to take into account wider policy objectives in responding to the OFT report. It argues for abolition of entry controls on the grounds that there would be consequent benefits for consumers in terms of reduced prices, improved quality of services and better access. We strongly support these objectives. We want to improve access and choice (including improving out-of-hours access for NHS patients) so that more NHS patients can use the skills of community pharmacists, who are trained clinicians, for advice, information and services. The OFT report also noted that in a more competitive environment problems could arise through the possible effect of deregulation on the ability of patients in some areas to access high quality pharmacy services, and that these problems could be addressed through targeted measures. It was not in the OFT's remit to examine how mechanisms such as the Essential Small Pharmacies Scheme could be developed to address a more competitive environment, and we therefore propose to examine these issues further before reaching a final decision on a balanced package which most effectively promotes competition, new entry and increased choice alongside our wider social and health objectives.

We therefore favour change to open up the market and improve quality and access without diminishing the crucial role that pharmacies play, especially in poorer and rural areas. The Government intends to come forward with proposals before the summer recess and will publish a progress report at the end of June. All changes will then be the subject of a full consultation.

The OFT report raises particular issues for the devolved administrations and they are making their own announcements today regarding their responses to the OFT recommendations.

The OFT's work on this area has taken forward our understanding of the impact on quality, innovation and consumer choice of the existing entry controls. Their regulatory challenge function is an important one. We look forward to receiving further reports on markets where regulation may be distorting competition.

As part of our work moving forward we will consider the impact of any changes on all sectors of the pharmacy market, including small businesses.

Post Office

Mr. Chope: To ask the Secretary of State for Trade and Industry if she will make it her policy to require all proposals by the Post Office for branch closures which are opposed by Postwatch to be referred to Ministers before a final decision is taken. [104848]

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Mr. Timms [holding answer 25 March 2003]: Decisions on post office closures and relocations are an operational matter for the company. It would be inappropriate for the Government to intervene in determining individual closures. That has been the policy of successive Governments since 1969 when the Post Office was established as a statutory public corporation.

In accordance with the existing Code of Practice on Post Office Closures and Relocations—agreed between Postwatch and Post Office Ltd—Postwatch are consulted on every post office closure proposal before a decision can be made.

Mr. Chope: To ask the Secretary of State for Trade and Industry if she will require the Post Office to comply with the request of Postwatch to publish the full plans for the future of post office outlets in Christchurch and Plymouth. [104849]

Mr. Timms [holding answer 25 March 2003]: There is no predetermined list or arithmetical formula being used to determine how many offices will close in any given area.

In accordance with the existing Code of Practice on Post Office Closures and Relocations—agreed between Postwatch and Post Office Ltd—Postwatch are consulted on every post office closure proposal before a decision can be made. It is for Post Office Ltd and Postwatch to consider whether any wider background information relevant to closure proposals under the urban reinvention programme could be provided.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

Batteries (Recycling)

Norman Baker: To ask the Secretary of State for Environment, Food and Rural Affairs what percentage of batteries were recycled in each year since 1997. [104547]

Mr. Meacher: At present precise data demonstrating a yearly percentage of batteries recycled in the UK is unavailable, although it is estimated that approximately 90 per cent. of automotive batteries, 25 per cent. of nickel cadmium industrial batteries, 90 per cent.of lead acid industrial batteries and less than 1 per cent. of household batteries are recycled.

There is data available on the tonnages on batteries collected for recycling by local authorities, as reported in the Department's Annual Municipal Waste Management Survey (MWMS). However, the percentage of batteries recycled cannot be measured, as the tonnages of disposed batteries are unknown.

It should be noted that MWMS has only reported on batteries that surveyed Local Authorities collect for recycling, and it is known that there is a considerable amount of private recycling undertaken, especially car batteries, that is not recorded.

Norman Baker: To ask the Secretary of State for Environment, Food and Rural Affairs what recent assessment she has made of the environmental consequences of the disposal of batteries. [104548]

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Mr. Meacher: No specific assessment has been undertaken in the UK on the environmental consequences of battery disposal. However, the European Commission recently published a consultation document, on the proposed Batteries Directive, stating that 'batteries were an important source of emissions of heavy metals which cause environmental damage.'

A Government study (November 2000) 'Analysis of the Environmental Impact and Financial Costs of a Possible New European Directive on Batteries' concluded that as collection and recycling rates increase, heavy metals in batteries are progressively diverted from the municipal waste stream, thus preventing leaching of hazardous substances into the environment.

Biofuels

Mr. Jim Cunningham: To ask the Secretary of State for Environment, Food and Rural Affairs what discussions have been held between her Department and the Treasury regarding the impact of duty on the use of biofuels. [103960]

Mr. Meacher: The reduction in the duty rate for biodiesel, introduced last July, has already brought forward production from recycled vegetable oil. Around 100 filling stations in the UK are already retailing biodiesel. The Government have also indicated they will reduce the duty rate for bioethanol and that they intend to announce the implementation date in the Budget. We continue to have discussions with the Treasury about these matters.

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