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Written Ministerial Statements Thursday 3 April 2003

DEPUTY PRIME MINISTER

Market Renewal Pathfinders

The Parliamentary Under-Secretary of State, Office of the Deputy Prime Minister (Mr. Tony McNulty): The nine Market Renewal Pathfinders are making good progress in developing their long-term action programmes to turn around their areas which suffer from low demand and abandonment.

The bulk of the £500 million Market Renewal Fund announced in Sustainable Communities: Building for the Future will be allocated in negotiation with each pathfinder on the basis of proposed outputs and outcomes included in their strategic schemes. Completion of these schemes is essential to ensure future large-scale investment is well informed and based on robust plans.

We recognise that pathfinders are at different stages in completing their schemes, and whilst we expect three of the pathfinders to complete schemes this year, the remainder will not complete schemes before the end of the financial year.

I am therefore announcing today an initial allocation of up to £4 million of market renewal funding for those who do not expect to complete their schemes this year. This will mean that alongside development of these robust schemes, early action on the ground can continue in the areas that need it most.

Pathfinders who complete their schemes this year will be allocated levels of funds to support the proposed programmes, as agreed in negotiation with the Office of the Deputy Prime Minister. Prior to agreement, these pathfinders can, where appropriate, undertake early action that will underpin the wider action plans they are developing in their strategic schemes.

This represents a key step in delivery of our commitment to tackle low demand and abandonment.

WORK AND PENSIONS

Statutory Money Purchase Illustrations

The Minister for Pensions (Mr. Ian McCartney): The Occupational and Personal Pension Schemes (Disclosure of Information) Amendment Regulations 2002 that were laid before Parliament on Monday 20 May 2002 come into force on 6th April 2003. The regulations require pension providers to give members of money purchase occupational schemes, stakeholder pension schemes and personal pension schemes an annual illustration of what their future pension might be.

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The illustration will give people a meaningful idea of what their future pension might be in today's prices. It will give them a realistic idea of the spending power of their pension, and help them to plan their savings more effectively.

This is an important part of the Government's drive to encourage people to think about their pension provision and plan for their retirement.

IS/IT Strategy

The Secretary of State for Work and Pensions (Mr. Andrew Smith): As part of the Department's work to strengthen the management of its modernisation programme, the Department has updated its Information Systems and Information Technology Strategies. The update has drawn on best practice from change programmes across both public and private sectors which has shown the advantages of focusing our approach on:


This approach will strengthen the Department's ability to deliver key modernisation outcomes as part of the government's Welfare Reform agenda.

EDUCATION AND SKILLS

Ufi Learndirect

The Parliamentary Under-Secretary of State for Education and Skills (Mr. Ivan Lewis): We are today publishing the report of a review of the relationship between my Department and Ufi learndirect.

The review was commissioned last year, to consider what form of relationship would best serve the objectives of both the Department and Ufi, and provide the best basis for building on Ufi's achievements to date. The review was undertaken by PricewaterhouseCoopers (PwC) and Quentin Thompson. It makes recommendations for a future structure and methods of operating which will clarify the respective roles and funding routes, increase Ufi's ability to manage the quality and effectiveness of its operations, and ensure that Ufi's activities are integrated within the Learning and Skills Council's planning of further education programmes in each area.

The Secretary of State for Education and Skills, Charles Clarke, has today written to the Chairman of Ufi learndirect, Sir Anthony Greener, enclosing a copy of the report. A copy of the letter and the report have been placed in the House of Commons Library, and are available on the Department's website at http://www.dfes.gov.uk/azindex/atoz/.

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HOME DEPARTMENT

National Asylum Support Service andLandmark Properties

The Secretary of State for the Home Department (Mr. David Blunkett): On 11 July 2002, in answer to a Parliamentary Question from my hon. Friend, Member for Liverpool, Riverside, (Mrs Ellman) Official Report, column 1194W, I announced that I had instructed the Director of National Asylum Support Service (MASS) to arrange for an independent inquiry to be carried out into issues arising from NASS' dealings with the Landmark company. I am, today, publishing a summary of the report of that inquiry and a copy of that summary is being placed in the Library.

The inquiry confirmed that there were serious problems in the way accommodation for asylum seekers was being run in Liverpool. Its main recommendations have been accepted and are being implemented. Although the report concludes that there has been no material breach of contract by Landmark, it is clear that what happened in Liverpool is completely unacceptable.

I am therefore also announcing, today, the action which has been put in hand.

A new contract manager has been appointed and will hold Landmark closely to account; the future of the contract will be reviewed after six months in the light of performance.

The new Deputy Director General of the Immigration and Nationality Directorate, responsible for NASS, has been asked to make clear to Landmark that significant improvements will be needed from them—both in their general performance and also in the standard of their properties. In the meantime, no further dispersal will be made to Landmark properties.

I have also recently commissioned an independent review of the management, staffing and expertise at NASS, which is due to report by the end of May.

Prison Service (Corporate and Business Plan)

The Parliamentary Under-Secretary of State for the Home Department (Hilary Benn): The Prison Service's Corporate Plan for 2003–04 to 2005–06 and Business Plan for 2003–04 (which includes the agreed Key Performance Indicators) has been published today and copies have been placed in the Library.

TREASURY

Valuation Office Agency(Key Performance Indicators 2003–04)

The Paymaster General (Dawn Primarolo): I have today set the following key performance indicators for the Valuation Office Agency for 2003–04:


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Recover full resource costs, including a return on capital of 3.5 per cent. from fees and charges.

European Union Import Duties(Israeli Settlements in the Occupied Territories)

The Economic Secretary to the Treasury (John Healey): Under the EU/lsrael Association Agreement, goods originating in the State of Israel may be imported into the European Union at preferential rates of duty, including zero rates. Under Article 49 of the Fourth Geneva Convention and following United Nations Security Council Resolutions 242 and 338, the international community, including all EU member states, does not recognise the territories which Israel occupied in June 1967 as part of the State of Israel. Goods originating from settlements in these occupied territories are therefore not entitled to the preferences of the EU/lsrael Association Agreement.

The EU/lsrael Association Agreement entered into force on 1 June 2000. Article 32 of Protocol 4 provides for the verification of proofs of origin at the request of the importing state. It further provides that preference is to be refused where there is reasonable doubt as to entitlement and there is no reply within ten months, or the reply does not contain sufficient information to determine the real origin of the goods. The Israeli authorities confirmed in July 2001 that they export to the EU goods from settlements in the occupied territories while certifying that they have been produced in the State of Israel.

Importers have been warned that importing goods produced in the occupied territories may give rise to a customs debt. The European Commission published such a warning in the Official Journal in November 2001, and HM Customs & Excise issued a Joint Customs Consultative Committee (JCCC) Information

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Paper to notify UK importers of this European Commission warning notice. Imports from Israeli settlements in the occupied territories can still be made to EU member states but will attract duty at the appropriate rate. Goods originating in the State of Israel can continue to be imported at preferential duty rates.

Concerted action, organised by the European Commission, is being taken by customs authorities in all EU member states to ensure that goods produced in the settlements do not obtain preferential rates of duty to which they are not entitled. Customs & Excise issued a second JCCC Information Paper in March 2002 announcing how these arrangements would apply in the UK.

Customs authorities are taking steps to identify imports of goods where there is evidence of occupied territory origin, taking security for duty and sending verification requests to the Israeli authorities, specifically asking whether the goods have been produced in an occupied territory. The standard Israeli reply, sent in response to all such requests, fails to answer the direct question, stating that the goods have been produced in an area that is under Israeli customs responsibility. This answer is insufficient to determine the real origin of the goods, and the Israeli authorities have been told so on each occasion.

In a written answer I gave to the hon. Member for Birmingham, Northfield (Richard Burden) on 4 February 2003, Official Report, column 181W, I outlined the action Customs & Excise have been taking in the UK. In line with our obligations under the Community Customs Code [Council Regulation (EEC) No 2913/92], and as the ten month deadline is reached, Customs & Excise have now begun issuing duty demands to UK importers where there is reason to suspect that goods may have originated in Israeli settlements in the occupied territories.


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