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Written Ministerial Statements

Thursday 16 March 2006

DEFENCE

Combined Aerial Target Service

The Minister of State, Ministry of Defence (Mr. Adam Ingram): I am pleased to announce that, following a competition, QinetiQ has been selected as the preferred bidder to supply and operate the subsonic target element of the combined aerial target service (CATS) programme. Contract award is expected to take place after a period of final negotiations.

This decision marks a significant step forward for the CATS project. This project will provide a rationalised supplier base for MOD and will produce savings in the order of 10 per cent. of the total cost over the 20-year life of the contract. It will also mean we have a single provider for subsonic aerial targets.

The contract we intend to place will be for a contractor owned and operated service. The preferred bidder will supply and operate subsonic aerial targets for the Armed Forces, working with the MOD aerial targets systems integrated project team (ATS IPT). Supersonic aerial targets will be procured by the ATS IPT from the US.

ABRO

The Minister of State, Ministry of Defence (Mr. Adam Ingram): On 8 November 2005 I announced to the House proposals for a second phase of rationalisation of the ABRO Trading Fund to address its need to become a significantly more efficient business in a rapidly changing market for the repair, maintenance and overhaul of armoured fighting vehicles and other land based equipment. This was subject to normal trade union consultation. Consultation with the national trade unions completed on 27 January 2006. Following subsequent discussions within the MOD, and consideration of the latest view on ABRO's order book, I am now in a position to make a further announcement.

I remain convinced that rationalisation of ABRO remains necessary: the business must make continuous improvements to its competitiveness and efficiency if it is to have a viable future.

I have therefore decided that the rationalisation of the LAND/B vehicles business unit (known as ABRO's "one stop shop" for unprogrammed repair) will proceed as announced in November 2005, including the closure and re-provision of the Colchester site and the potential sale and lease-back of part of the Warminster site, with a headcount reduction of up to 339 by April 2008.

Since November 2005, however, there have been a number of developments which have a potentially material impact on the proposed rationalisation of
 
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ABRO's other four business units (armoured vehicles; major assemblies; electronics, weapons, Optronics and calibration; and head office). The principal of these is a deeper understanding of the likely threat environment on deployed operations over the coming period, which will require us to update and upgrade more armoured vehicles.

To ensure we continue to have the capability to provide appropriate protected mobility for our soldiers, we have therefore decided to extend the depth repair programme for the Fv430 fleet of armoured fighting vehicles, which is carried out at ABRO's Bovington site. Consequently, the intention to move the Warrior and CVR(T) lines from Donnington to Bovington by March 2007 will not take place as previously planned. This will result in the armoured vehicle facility being retained at the Donnington site for the medium term.

However, there remains a pressing need for improvements to the efficiency and effectiveness across all of ABRO's operations, including the remaining four business units. The recent decision on the Fv430 and the consequential impact on Donnington will mean that the rationalisation proposals will need to be re-examined. The results of this work will be announced later in the year and, if necessary, there will be further consultation with trade unions.

The Government remain committed to modernising our armed forces. To do so, we must continually look for more efficient support solutions to enable us to invest more resource to support our men and women at the front line. While this news represents a welcome development for the Donnington armoured vehicle facility; I hope to be able to confirm the final position on rationalisation later in the year.

ENVIRONMENT, FOOD AND RURAL AFFAIRS

Single Payment Scheme

The Secretary of State for Environment, Food and Rural Affairs (Margaret Beckett): This House, and the farming industry in England, has I know been concerned about problems with the Rural Payments Agency's delivery of the Single Payment Scheme. The Government fully share this concern and I would like to make a statement about action which I am taking today.

The Minister with responsibility for sustainable farming and food, Lord Bach, told the other House on 31 January that the RPA would establish entitlements in mid February and that all farmers would then receive an entitlement statement. This has now happened in all but around 1 per cent. of cases and payments did indeed start to be made before the end of February.

Ministers have throughout been advised that, following the validation of claims, the RPA expected to make the bulk of payments by the end of the month. Late on Tuesday afternoon the chief executive informed me that their latest reassessment of the position was that this would no longer be possible. This is an unacceptable situation.

I have concluded that urgent action is needed to strengthen the leadership of the agency. With my approval, the Permanent Secretary of my Department, Helen Ghosh, has today appointed Mark Addison as acting chief executive in place of Johnston McNeill.
 
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Mark Addison has outstanding experience and abilities which I believe fit him for this task, and I have asked him to report to me by Tuesday on the immediate steps needed to get us back on track. A new chief executive will be recruited as soon as possible to take on the task of leading the agency forward at this crucial time.

Ministers had already concluded, on advice from the permanent secretary, that there were structural issues in the RPA which needed to be addressed over a longer period of time. I am therefore announcing today our decision to set up a fundamental review of the agency, to look at its current and possible future functions, and the effectiveness of its relationship with my Department and its other key stakeholders, and to make recommendations for the future. Details of the review are being published today on my Department's website.

I know that this House and everyone in the farming community will be as disappointed as I am about the announcement I have had to make today, but a successful conclusion to the 2005 round of SPS and a smooth start to the 2006 scheme will remain one of the Department's highest priorities.

RPA staff have worked with absolute dedication throughout, often in the face of considerable difficulties. I am sure they will continue to do so.

HEALTH

MHRA (Clinical Trials)

The Minister of State, Department of Health (Jane Kennedy): On the afternoon of 14 March, the Medicines and Healthcare products Regulatory Agency (MHRA) suspended a phase 1 clinical trial for a new product that is being developed to treat chronic inflammatory conditions and leukaemia, having been notified that six men involved in the trial had been admitted into intensive care.

Eight men were involved in this stage of the clinical trial; six were given the product and two were given a placebo. Having received their first dose of the drug in the morning of 13 March, all six suffered adverse reactions, which by the evening of that day were serious enough to require admission to intensive care.

The top priority once the MHRA had been notified of this was to ensure that no further patients were harmed. The MHRA immediately suspended the clinical trial, and sought information as to whether any other trials were under way anywhere in the world with the same drug. The MHRA has been assured that no other trials are taking place, and no further patients are being given this product. Nevertheless, the MHRA has alerted international regulatory authorities of the events.

The next priority is to establish what has led to these adverse events. An MHRA inspection team was sent to the unit on the afternoon of 14 March, and is now carrying out an investigation. This will be taken forward as quickly as possible but may take some time to determine the cause of the adverse reactions. The MHRA is collaborating fully with the Northwick Park Hospital, North-West London Strategic Health Authority, Department of Health and the Metropolitan Police.
 
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There are rigorous controls governing the conduct of clinical trials that apply throughout the development of a drug. Phase 1 clinical trials are the first stage in which a drug is used in humans, and they proceed only after authorisation from both the MHRA and a research ethics committee. Clinical trials in humans are undertaken after extensive laboratory and animal testing have given positive outcomes as to the safety of the drug in question.

An event such as this in a phase 1 trial is wholly unexpected extensive testing and analysis of products is undertaken before they are given to human volunteers. It is because of the exceptional nature and seriousness of this situation that the MHRA has moved quickly to protect patients and establish what happened.

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