---

12 Jul 2004 : Column 904W—continued

Defence Diversification

Mr. Patrick Hall: To ask the Secretary of State for Trade and Industry what progress has been made on defence diversification, with particular reference to the extension of military expertise into civilian use through funding of the Defence Evaluation and Research Agency; and if she will make a statement. [181055]

Mr. Ingram: I have been asked to reply.

In line with wider Government policy to maximise the commercial application of technology from all sources, the Ministry of Defence continues to support defence diversification, including by investment in developing new technology in its supplier base and the establishment of new collaborative partnerships with industry and academia through such initiatives as Defence Technology Centres and Towers of Excellence. There are also links in place with other Departments to share good practice including in the context of the cross Government science initiative.

One of the prime objectives of the Defence Evaluation and Research Agency (DERA) Public Private Partnership, announced in the 1998 Strategic Defence Review, was to enhance the opportunity for the exploitation of technology generated by the Agency's laboratories. The creation of QinetiQ in 2001, and its progressive transfer to the private sector with the specific role of maximising the commercial return from its intellectual capital, was the single biggest encouragement of defence technology diversification. The other successor organisation to DERA, Dstl which was retained within the MOD, also has a role in exploiting defence technology. Dstl has achieved this through the establishment of Joint Ventures and licensing. In addition, the Defence Diversification Agency (DDA), set up initially within DERA in 1999, has promoted
 
12 Jul 2004 : Column 905W
 
interchange between the defence and civil sectors to create jobs and wealth for the UK economy. The DDA has been active across many technologies and sectors particularly with Small and Medium Enterprises.

Employment Agency Standards Inspectorate

Mr. Stephen O'Brien: To ask the Secretary of State for Trade and Industry what assessment she has made of the timescale for the Employment Agency Standards inspectorate to visit all employment agencies operating in the UK. [183222]

Mr. Sutcliffe: There is no reliable data on the number of employment agencies currently operating in Great Britain so it is not possible to make such an estimate.

The Employment Agency Standards (EAS) inspectorate follows up every complaint it receives about the conduct of an employment agency and in addition also carries out targeted inspections of employment agencies. EAS also refers complaints to, and accepts complaints from, other enforcement bodies.

Energy Supplies (Imports)

Mr. Tom Clarke: To ask the Secretary of State for Trade and Industry what steps her Department is taking to encourage imports of energy supplies from West Africa. [183206]

Mr. Timms: The Energy White Paper makes clear that the Government consider that the robustness of the UK's energy systems will be enhanced by a range of energy sources.

It is, however, for the private sector to decide where they may best purchase oil and gas to fulfil contracts to supply UK energy needs.

The White Paper also states that the Government believe that their role in this context is to support the creation of an economic environment conducive to investment and that we will continue to engage, inter alia, with African countries, focusing on good governance and the development of stable investment and transit regimes.

In September 2002 at the Johannesburg World Summit for Sustainable Development the Prime Minister launched his Extractive Industries Transparency Initiative (EITI). This aims to work with countries and multi nationals to improve standards of governance, reduce opportunities for corruption and develop a stable investment environment. It is envisaged that West African countries will be invited to participate in this initiative.

Energy Supply

Miss McIntosh: To ask the Secretary of State for Trade and Industry if she will make a statement on the stability and security of energy supply. [182763]

Mr. Timms: The Government attaches great importance to reliable energy supplies—maintaining reliable energy supplies is one of the four key goals of the Government's energy policy identified in our Energy White Paper, published last year.
 
12 Jul 2004 : Column 906W
 

National Grid Transco (NGT), the company responsible for operating the electricity and gas transmission networks, has statutory and licence obligations to develop, maintain and operate the electricity and gas transmission systems in an economic, efficient and co-ordinated manner. The reliability and resilience of these transmission systems are among the factors that the energy regulator, Ofgem takes into account when assessing whether NGT has met its obligations.

In its recent preliminary Winter Outlook Report, NGT reported that

"under all credible scenarios, there will be enough gas and electricity to meet winter demand".

NGT also reported that the England and Wales electricity plant margin for next winter is projected at 20.2 per cent., and there is mothballed plant that could potentially return to the system, which could raise the plant margin to 23.2 per cent.

Through the Joint Energy Security of Supply working group, the DTI and Ofgem continue to monitor the stability and security of energy supplies throughout the UK. The latest JESS report was published in May and copies have been placed in the Libraries of the House.

Mr. Tom Clarke: To ask the Secretary of State for Trade and Industry what discussions she has had with ministerial colleagues regarding the long-term security of United Kingdom energy supplies. [183205]

Mr. Timms: Maintaining reliable energy supplies is one of the four objectives of the Energy White Paper (February 2003), which set the strategy for energy policy to 2050. Ministers were closely involved in discussions during its preparation. Delivery of the White Paper's commitments is carried out through the Sustainable Energy Policy Network (SEPN), a network of policy units from across government departments, the devolved administrations, regulators and other organisations which have a direct role to play. Its work is overseen by a Ministerial Committee which meets quarterly and regularly discusses issues relating to security of supply.

Sakhalin II Project

Malcolm Bruce: To ask the Secretary of State for Trade and Industry how many staff from the Export Credits Guarantee Department visited the Sakhalin oil and gas project in Russia in June; what their positions are within the agency; how much the visit cost; and who funded it. [182650]

Mr. Mike O'Brien: Two staff from ECGD visited the Sakhalin II project, along with environmental experts from the other potential lending institutions and the lenders' environmental consultants. The ECGD staff members were an Environmental Analyst from the Business Principles Unit and a Senior Underwriter from the Business Group.

Travel and accommodation costs for the ECGD staff totalled around £7,100. As with all other project due diligence costs, this sum will be reimbursed by the Sakhalin Energy Investment Company.
 
12 Jul 2004 : Column 907W
 

Malcolm Bruce: To ask the Secretary of State for Trade and Industry whether the Export Credits Guarantee Department will produce a report of its Sakhalin oil and gas project visit; and whether that report will be made public. [182651]

Mr. Mike O'Brien: As part of ECGD's internal assessment of the Sakhalin II project, staff visited Sakhalin Island along with environmental experts from the other potential lending institutions and the lenders' environmental consultants. They held meetings with Sakhalin Energy's project managers and engineers, and discussed a range of environmental and social issues, including Western Gray Whales, river crossing strategies, oil spill modelling and resettlement. They also met with Sakhalin residents and local NGOs and reviewed construction at the main project sites.

A report on the visit will be prepared as part of ECGD's internal assessment and will be made available for other Government Departments. There are no plans for it to be published.

In accordance with normal procedures, before a decision is made on ECGD cover for the project, full details of the environmental and social impact assessments will be made publicly available by the project sponsors.

Renewable Energy

Mr. Colman: To ask the Secretary of State for Trade and Industry what plans she has to develop a comprehensive strategy for the supply and use of heat as recommended by the Royal Commission on Environmental Pollution in its report 'Energy—The Changing Climate'. [182037]

Mr. Timms: The RCEP report 'The Changing Climate' is one of a number of documents published in recent years containing evidence and recommendations which will help inform the review of the Climate Change Programme. The Government will also be publishing its detailed response to the more recent RCEP special report 'Biomass as a Renewable Energy Source', which contained specific measures to promote the supply and use of renewable heat.

---