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TRADE AND INDUSTRY
ECGD (Anti-bribery and Corruption Procedures)
The Minister for Trade (Ian Pearson): I have today published the Government's final response and accompanying regulatory impact assessment to the public consultation on changes to the Export Credits Guarantee Department's anti-bribery and corruption procedures introduced in December 2004. The consultation document, interim response and final response documents have been laid in the Library of the House. Copies of these documents and the representations made to the consultation can be found at www.ecgd.gov.uk.
I have carefully considered the representations received in the course of two rounds of public consultation. My key concern has been to ensure that ECGD's procedures are both rigorous in minimising the risk of ECGD supporting corrupt activity and also workable for ECGD's customers.
ECGD will now make a number of changes to its December 2004 procedures. The main outcomes are:
The scope has been changed in respect of those about whom representations are made concerning past/future involvement in corrupt activity, as has the extent to which representations are qualified. For example, ECGD will no longer require representations about the actions of group companies not involved in the contract for which ECGD support is being provided. These changes will provide ECGD with the precise assurances that it requires, and avoid customers having to provide information that is not necessary;
Applicants for support will now be requested to provide the identities of agents. The provision of this information enhances the transparency of applicants' representations, reduces the risks of ECGD supporting contracts involving bribery or corruption and also supports the Government's wider aim of deterring corruption. ECGD is fully confident that it can implement these requirements in ways that prevent inadvertent disclosure of sensitive information. ECGD will be seeking comments from consultees on the details of the proposed internal handling arrangements for information about agents' identities;
ECGD will have the power to audit the accuracy of those representations relating to the issue of bribery and corruption on notice at any time, rather than just when it suspects that
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- bribery has taken place. These powers allow ECGD to make appropriate checks at random and are sufficient to play a part in deterring corruption.
These revised procedures will take effect from 1 July 2006.
These revised procedures take account of arguments made by consultees while preserving the consultation's aim of striking an appropriate balance between rigour and practicability. ECGD's procedures remain among the strongest in use by any of the world's leading Export Credit Agencies.
EU Competitiveness Council
The Parliamentary Under-Secretary of State for Trade and Industry (Barry Gardiner): I attended the Competitiveness Council in Brussels on 13 March. Martin Bartenstein, Austrian Minister for Economics and Labour, chaired the Council in the morning and Elisabeth Gehrer, Austrian Minister for Education, Research and Culture, in the afternoon.
The Council exchanged views on the state of play on the Lisbon Strategy on the basis of the Commission's annual progress report. In relation to this, we also discussed the Key Issues Paper prepared by the Austrian presidency, and agreed this as the Competitiveness Council's contribution to the Spring European Council. I supported the text of the Key Issues Paper.
For the agenda item on small and medium sized enterprises, the Commission presented their Communications on "Implementing the Community Lisbon Programme—Modern SME Policy for Growth and Employment" and "Implementing the Community Lisbon Programme—Fostering entrepreneurial mindsets through education and learning". There was a discussion based on two questions set by the presidency. These related to integrating the "Think Small First" principle into European policy, and the application of the "One Stop Shop" principle to simplify administrative procedures for businesses starting up. Council Conclusions on SME Policy for Growth and Employment were also agreed. I supported the Council Conclusions, encouraging the Commission to consider adopting mandatory small firms impact tests and extending their consultation periods from eight to 12 weeks.
The Council reached a unanimous agreement on the general approach text on the Competitiveness and Innovation Programme (CIP) without discussion. This is pending the opinion of the European Parliament and the final agreement on the future financial perspectives.
The Council took note of an oral summary by the presidency of the informal debate held by Ministers on the Services Directive over dinner on 12 March. The discussion was in the light of the recent vote in the European Parliament. The presidency reported that there had been a constructive debate, and that the Commission is expected to produce a revised proposal in April. The Council will then re-examine the proposal with a view to reaching an agreement on a common position.
The Council took note of the Commission's presentation on a draft Regulation aimed at modernizing the Community Customs Code.
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For one of the items under Any Other Business, the Council took note of information from the German delegation on the draft Regulation on type approval of motor vehicles with respect to emissions and on access to vehicle repair information (Euro 5). There was broad support in the Council for Germany's request that the Competitiveness Council should be updated on progress on this Regulation. Ministers in the Environment Council had a policy debate on this on 9 March.
After lunch the Council had a debate on five of the seven Specific Programmes implementing the Seventh Framework Programme (FP7) on Research and Development: "Cooperation"; "Ideas"; "Euratom" and two programmes relating to the "Joint Research Council" and on the Regulation laying down rules for participation under FP7. Relating to the Specific Programmes, the presidency encouraged Member States to focus their interventions on governance of the Programme ("Programme Management") and the ethical principles that apply in respect of the eligibility of projects to be funded under FP7. I contributed to the debate by highlighting that, according to the principle of subsidiarity, the UK believes that ethical issues should be legislated for at national level given the cultural and religious diversity of Europe. Therefore, the UK opposes restrictions at Community level and will enter a joint declaration to the Council minutes to this effect along with Sweden, Belgium, Czech Republic, Spain and Portugal.
Finally, under "Any Other Business" the Council took note of a report by the presidency on the preparation of the fourth Eli and Latin America/Caribbean (LAC) Summit with regard to cooperation on science and technology. The Summit will take place in Vienna on 11–12 May 2006.
The Council adopted a Council Resolution on a customs response to latest trends in counterfeiting and piracy without discussion.
WORK AND PENSIONS
Remploy
The Parliamentary Under-Secretary of State for Work and Pensions (Mrs. Anne McGuire):
I am today advising Parliament of my intention to engage consultants to conduct a strategic review of the future business options for Remploy Ltd., in the context of the Government's strategy for supporting greater numbers of disabled people into employment.
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This is a crucial next step in our response to the National Audit Office report "Gaining and Retaining a Job: The Department for Work and Pensions Support for Disabled People". This report found that we have made good progress in helping many disabled people. However, it contrasted the effectiveness of Remploy's Interwork service with the poorer value for money offered by Remploy factory provision. It recommended that we re-engineer the profile of the Remploy business to improve overall value for money.
For over 60 years Remploy has made, and continues to make, a major contribution to improving employment opportunities for disabled people. We need to look closely at ways we can build upon Remploy's strengths and address its weaknesses. Ensuring that Remploy provides a modern, inclusive service for all those it helps, now and in the future, is critical if we want to achieve our wider goal of equality for disabled people.
By bringing the costs of supporting disabled people in Remploy factories into line with those for supporting people in mainstream employment through Interwork, we will free-up resources to extend the support we offer to disabled people, both in terms of helping more disabled people into work and doing more for those who need it.
The Prime Minister's strategy unit report "Improving the Life Chances of Disabled People" and the recently published Green Paper on Welfare Reform set out the Government's intention to do more to improve opportunities for disabled people. Remploy has a key role to play in helping us achieve these goals.
To ensure that proposals meet the employment needs of disabled people, Dr. Stephen Duckworth of "Disability Matters" is to be part of the review team.
The consultants will provide independent expert advice on the options for a radical strategy to enable Remploy to help more disabled people into work at unit costs comparable with other providers of supported employment, without compromising services for people with more substantial barriers to work.
Consultants will provide the Secretary of State with advice on the options for a strategy within the existing budget funding envelope of £111 million per year and on alternative approaches compatible with the Government's overall policy direction to support greater numbers of disabled people into work that would be possible without the need for significant further investment.
I am placing a copy of the terms of reference for the review in the library. We will now move to appoint consultants to carry out the review. The consultants will be asked to report to Ministers by the end of May 2006.