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British Council Art Exhibitions
The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Chris Mullin): The British Council, although not a Government Department, receives a substantial grant-in-aid from the Foreign and Commonwealth Office. The Council regularly organises or sponsors exhibitions overseas of works of art loaned from National Galleries and private collections in the United Kingdom. It provides certain assurances or guarantees in respect of loss or damage while these works are on loan.
In the six-month period ended 30 March 2003 the British Council provided such assurances to 4 national lenders and undertakings to 171 private lenders. The value of the contingent liabilities that remained outstanding as at 30 March 2003 in respect of national lenders was £300,000 and £3,703,862 in respect of private lenders.
Following a recent review, HM Treasury, the Foreign and Commonwealth Office and the British Council have agreed to a revision of the Government art indemnities arrangements for artworks loaned to British Council exhibitions overseas. The revised scheme, which comes into effect on 1 April 2004, has three main features. The maximum total liability available to the Council at any one time will be £50 million (compared with the current £70 million). The £50 million limit does not include "high value" exhibitions (i.e. single exhibitions valued at £30 million or over), which are treated separately. In the case of "high value" exhibitions the Council will submit proposals to the UK's Public Diplomacy Strategy Board and HM Treasury for approval at least two years in advance. For all exhibitions the Council will have to show evidence of having approached the Government of the host country for cover and of having sought sponsorship for commercial insurance.
INTERNATIONAL DEVELOPMENT
IRAQ: Reconstruction
The Secretary of State for International Development (Hilary Benn): At the Donors' Conference on Iraq, in Madrid on 24 October, the UK will make a total financial commitment towards Iraq's reconstruction of £544 million for the three years from April 2003, including the funding that we have provided so far and our share of proposed European Community spending in Iraq. £248 million is humanitarian and reconstruction assistance already committed by DFID and other Government Departments (£9 million of which is our share of the EC commitment), and £296 million will be for the period up to March 2006 (£29 million of which is
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our share of currently proposed EC spending). We expect to channel a substantial proportion of this spending through Multi-Donor Trust Fund arrangements being established by the World Bank and the United Nations, and to continue to support bilateral and multilateral programmes in Iraq. This funding does not include the costs of maintaining security in Iraq, towards which we are making a major contribution. Nor will it involve any reduction in DFID's planned development expenditure for low income countries. We remain committed to deliver £1 billion of bilateral assistance for Africa in 2005–06, and to increase the proportion of bilateral spending on low income countries to 90 per cent. by the same time.
DEFENCE
Afghanistan
The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin): On 3 October 2003, following the expiry of the call-out order made last October, I signed a new call-out order—made under the Reserve Forces Act 1996—to allow reservists to continue to be called out in support of stabilisation and reconstruction operations in Afghanistan. The new order is effective until 30 September 2004.
Over 230 reservists were called out under the order made last October. We are most grateful for their continuing commitment and the invaluable contribution they and their employers make to this operation.
I have also authorised the Military Secretary to call out special members of the reserve forces, known as sponsored reserves, who are involved with the heavy equipment transporter contract. They will support operations in Iraq, with about 10 reservists deployed at any one time.
TRADE AND INDUSTRY
British Energy
The Secretary of State for Trade and Industry (Ms Patricia Hewitt): On 1 October, British Energy announced that it had formally agreed with creditors the terms of its proposed restructuring announced on 28 November last year.
In the light of the company's announcement, I have confirmed the Government's support for the plan by entering into the Government Restructuring Agreement (GRA) with British Energy. This is an overarching agreement recording the conditions of the Government's commitment to British Energy to proceed with the restructuring and making that commitment legally binding. It entails the Government agreeing that, when the restructuring takes place (Restructuring Effective Date), it will enter into the following principal agreements with British Energy:
- Contribution Agreement, which details the mechanisms by which the British Energy group will make contributions to the Nuclear Liabilities Fund (NLF) for the purpose of discharging its liabilities.
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Nuclear Liabilities Funding Agreement, which provides for the mechanisms by which Government will meet its commitment to underwrite the NLF to the extent that British Energy's contributions are not sufficient to meet the costs, as and when they fall due, of decommissioning British Energy's power stations and discharging other uncontracted nuclear liabilities.
Historic Liabilities Funding Agreement, which details the mechanisms by which Government undertakes to discharge British Energy's payment obligations under certain of its existing contracts with BNFL with respect to the management, reprocessing and storage of historic spent fuel, i.e. fuel loaded into British Energy's reactors prior to the Restructuring Effective Date.
Option Agreement, which details the mechanisms by which Government may exercise an option to acquire the British Energy stations at the time when British Energy plans to shut them, either to prolong their operation where it is economically advantageous to do so or decommission them within the public sector.
The restructuring will only be implemented once all these conditions are met. Other conditions include the receipt of State Aid approval from the European Commission. The Commission announced on 23 July 2003 that it was opening a formal investigation procedure into the Government's proposed restructuring aid to British Energy. The period for third party comments to the Commission has now closed and the Government are continuing to work with the Commission to complete the investigation as swiftly as possible.
Also, if the Government are not satisfied that British Energy will be viable in all reasonably foreseeable conditions, or if there is a material adverse change in British Energy's position, the Government have reserved the right to withdraw their support for the restructuring.
This would include withdrawal of the Government's secured credit facility, which the Government are otherwise continuing to make available to British Energy at its current level of up to £200 million. Drawings under the credit facility can be made up to the date of the European Commission's decision on the Government's proposed restructuring aid, or 30 September 2004, whichever is earlier. Repayments under the credit facility have to be made by the earlier of the Restructuring Effective Date or 30 September 2004.
British Energy's announcement is a significant step forward in the implementation of its restructuring plan. However, there are significant milestones ahead, and the Government's contingency plans to fund the administration of the company should any of the restructuring conditions not be met or the restructuring fail for any other reason, will, therefore, remain in place. This means that whether or not the solvent restructuring plan is implemented the nuclear power stations will
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continue to generate electricity and employ staff and customers' lights will stay on. Government's overriding objectives of ensuring the safety of the nuclear power stations and the security of electricity supplies to the grid and consumers will be met.
I understand that in November British Energy will be making copies of the key agreements signed on 1 October available for public inspection. When this takes place, I will also place copies of those agreements in the Libraries of both Houses.
DEPUTY PRIME MINISTER
Planning and Compulsory Purchase Bill
The Minister for Housing and Planning (Keith Hill): I have today published for consultation draft regulations and policy statements on regional and local planning arrangements, and on development control processes. The regulations and guidance underpin the provisions of the Planning and Compulsory Purchase Bill, currently before the House. They are issued for consultation, subject of course to any changes made to the Bill by the House.
The draft regulations set out detailed procedural matters in relation to regional and local planning matters and development control. We are also publishing draft revised rules for procedures for major infrastructure projects.
Planning Policy Statement 11 (PPS11), which will supersede PPG11 when the Planning Bill comes into effect, sets out the how Regional Spatial Strategies (RSS) should be prepared and revised under the new statutory framework. In particular it places a new emphasis on community involvement and partnership working, integration with other strategies, making the RSS more regionally specific and on the delivery of policies
Planning Policy Statement 12 (PPS12) sets out the Government's policy on the preparation of the local development documents that will comprise the local development framework for a local planning authority or for a minerals and waste planning authority. It explains the actions that need to be taken in preparing the local development documents, which will deliver the spatial strategy for the area and the new, streamlined arrangements for dealing with the formal stages of the process. It emphasises the need for community involvement and explains how local planning authorities should prepare sound development plan documents, which will be independently tested before adoption by the authority.
The Government also published today for consultation draft guidance on development control matters.
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The Government will be publishing consultation drafts of other planning policy statements in due course, in particular Planning Policy Statement 1, setting out the principles underlying the planning system in England.
The public consultation on the draft guidance and regulations will run until 16 January. The secondary legislation will be laid before Parliament as soon as
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possible after the Planning Bill receives Royal Assent. We are planning for both the guidance and secondary legislation to come into effect at commencement of the Act.
I am today placing copies of the documents in the House library. They will also be available on the website of the Office of the Deputy Prime Minister.