29 Nov 2007 : Column 37WS

29 Nov 2007 : Column 37WS

Written Ministerial Statements

Thursday 29 November 2007

Business, Enterprise and Regulatory Reform

National Minimum Wage

The Minister for Employment Relations and Postal Affairs (Mr. Pat McFadden): I am pleased to announce that the Government have submitted their economic evidence on the national minimum wage to the Low Pay Commission. The Commission will take this and all the other evidence received into account when preparing its next report on the minimum wage, which will be submitted to the Government by the end of February 2008.

The economic evidence addresses recent trends in economic and labour market performance, as well as the impact of the national minimum wage on pay, employment and younger workers.

Copies of the Government’s economic evidence have been placed in the Libraries of both Houses and will be posted on the Department for Business, Enterprise and Regulatory Reform website at: www.berr.gov.uk.

The Government submitted their evidence on non-economic issues to the Commission in October. A combined volume of the non-economic and economic evidence will be placed in the Libraries of both Houses at a later date.

Competitiveness Council

The Minister for Competitiveness (Mr. Stephen Timms): The following statement provides information on the Competitiveness Council in Brussels on 22 November 2007, at which I represented the UK. The meeting was chaired in the morning by Manuel Pinho, Portuguese Minister for Economy and Innovation, and in the afternoon by State Secretary João Tiago Silveira of the Portuguese Justice Ministry:

Communities and Local Government

Thames Gateway

The Minister for Housing (Yvette Cooper): One year ago, we published the interim plan for the Thames Gateway, Europe’s largest regeneration programme, setting out the long-term vision and objectives for the Thames Gateway. We are today publishing a delivery plan, which sets out cross-government priorities and funding progress for the next three years.

Since last year, we have seen major progress on key projects including Crossrail, the Eurostar Ebbsfleet station, the O2 complex and the Olympic Park investment over the last three years includes improving green spaces such as Rainham Marshes, and public sector improvement such as new Sure Start centres as well as economic regeneration projects. Two new universities at Southend and Medway are providing nearly 5,000 new higher and further education places, the Docklands Light Railway extension to Woolwich will be completed in 2009 and employment growth from 2001-2005 was 9 per cent.—faster than the national average.

The plan published today provides a framework for making the best use of public investment, local ownership, big project expertise and private sector entrepreneurship. It sets out a proposed spending programme for 2008-11 which includes £500 million from the Department for Communities and Local Government for regeneration and £100 million for local transport improvements within a total Government investment commitment of over £9 billion.

The cross-government plan identifies three important themes for change in the Gateway: a strong economy, improvements in the quality of life for local communities and the development of the Gateway as an eco-region.

29 Nov 2007 : Column 39WS

Within these, key to the success of the region are: (1) economic transformation in four key areas: Canary Wharf, London Gateway, Ebbsfleet Valley, and the Olympic Park with Stratford City; (2) supporting the ten largest developments for new homes; (3) the Thames Gateway Parklands; and (4) investing in a skilled workforce.

In terms of local communities, we have given priority in our spending allocations to six priority locations: Stratford, the Lower Lea and the Royal Docks; London Riverside; Greenwich Peninsula and Woolwich; Thurrock; Kent Thameside; and Medway. There are also five urban renewal areas receiving support: Barking; Basildon; Erith; Sittingbourne and Swale; and Southend.

The plan sets out the route to make the most of the economic potential of the Gateway, encourage new investment and jobs, and boost the skills of local people to take up new opportunities. This plan outlines:

On top of economic investment, we are committed to improving the quality of life for all residents in the Gateway as a critical part of regeneration—building more affordable houses, investing in thriving town centres, public places and spaces, growing and improving public services, and supporting community cohesion. In this plan:

29 Nov 2007 : Column 40WS

The plan also outlines the challenges for the Gateway in both increasing economic growth, development and prosperity and tackling climate change. The Thames Gateway can lead the way with environmental jobs, greater use of renewables and new technologies, and environmental improvements to existing homes and building. This plan takes the first steps to promote higher standards for cutting carbon emissions, water conservation, reducing waste, and protecting people against flood risk. The plan outlines:

The Government will ensure that public funds invested in the Gateway are subject to rigorous appraisal to secure value for money and, wherever possible, be used to attract additional private funding to maximise the benefit for Thames Gateway communities. The levels of funding set out in this delivery plan are therefore indicative and subject to final confirmation as individual projects come forward for appraisal.

The role of Government across the Gateway is to ensure that key infrastructure is provided to promote improvement and growth and to provide the conditions that enable investor confidence to flourish. We need the market to respond to the new opportunities on offer. The ultimate measure of success will be when that investor confidence is assured and places in the Gateway take on a new and self-sustaining identity.


Future Rapid Effect System

The Minister for the Armed Forces (Mr. Bob Ainsworth): The Future Rapid Effect System (FRES) has a vital role to play in the future of the British Army. We stated that we would announce the outcome of the utility vehicle design trials by the end of November. I am delighted to announce today that these trials have been successfully completed on schedule, and that a recommendation has been produced based on technical design considerations. Further work with all three possible providers will be undertaken over the next few weeks in order to clarify the commercial implications of their proposals. Following this, a definitive announcement will be made on the preferred design to be taken through the remainder of assessment phase of this part of the FRES programme.

29 Nov 2007 : Column 41WS

Sea King Integrated Operation Support

The Minister for the Armed Forces (Mr. Bob Ainsworth): I am announcing today the award of a contract to Agusta Westland for Implementation Phase 2 of the Sea King Integrated Operational Support (SKIOS IP2) programme. This programme will maintain availability levels and reduce costs for each of the live variants of Sea King helicopter operated by the RN and the RAF. This is part of the wider Defence Logistics Transformation Programme to improve the effectiveness and efficiency of military logistics support to the front line. The contract builds on existing SKIOS arrangements and the support arrangements piloted on other MOD helicopters. It is worth around £470 million over the first five years, with a price review thereafter, and transfers to industry further responsibility for Sea King and component maintenance. The contract is forecast to deliver savings in the region of £90 million over 12 years against current support arrangements without any reduction of capability. These savings are in addition to the savings already achieved under Implementation Phase 1 of the programme, awarded in April 2005, which provides technical and spares support services. Implementation Phase 2 also transfers to industry approximately 300 military and civilian posts that currently provide flight line engineering and logistics support at Royal Navy and Royal Air Force Search land Rescue (SAR) bases in the UK and Falkland Islands. The contract represents another deliverable of the helicopter plans set out in the Defence Industrial Strategy, strengthens the partnered relationship with industry, and maintains aircraft availability levels but with reduced through life costs. Overall it provides better value for money for the taxpayer.

Foreign and Commonwealth Office


The Secretary of State for Foreign and Commonwealth Affairs (David Miliband): The right hon. and learned Member for North-East Fife (Sir Menzies Campbell) has replaced the hon. Member for Hereford (Mr. Keetch) as a Member of the United Kingdom delegation to the NATO Parliamentary Assembly.


Abortion Act 1967 (Government Response to Science and Technology Committee Report)

The Minister of State, Department of Health (Dawn Primarolo): Today we have laid before Parliament the Government response to the Science and Technology Committee’s report on the scientific developments relating to the Abortion Act 1967 (Cm 7278).

In June 2007, the Committee undertook to conduct an inquiry into scientific developments relating to the Abortion Act 1967. The Department participated in the inquiry and the Government is grateful for the Committee's report and has accepted several of the key recommendations.

The Command Paper sets out the Government’s response to all 32 conclusions and is available in the Library.

29 Nov 2007 : Column 42WS

NHS Finance and Performance

The Secretary of State for Health (Alan Johnson): At the end of 2005-06, the NHS had a net deficit of £547 million, with 123 (33 per cent.) organisations building up a total gross deficit of £1.3 billion. Today I am pleased to say that we have turned that position around completely.

Financial projections at the end of September 2007 show that the NHS is forecasting a healthy £1.8 billion surplus for 2007-08, with only 25 trusts forecasting a deficit. This is a dramatic improvement and a testament to the efforts of NHS staff over the last year and a half.

This level of surplus—which is only about 2 per cent. of the overall NHS budget—shows sensible financial management. The NHS should not merely be aiming to breakeven year-to-year, it should be planning for a surplus so that it can make long-term investment decisions, such as public health investments and shifting appropriate care out of hospital and closer to people’s homes.

The Chief Executive of the Audit Commission, Steve Hundred, said last month

But, while this is good news in overall terms, we are not resting on our laurels. We are working with strategic health authorities to support a handful of financially challenged trusts, which need intensive effort to get out of deficit. Our aim is that all NHS organisations should be out of in year deficit by the end of next year.

This financial turnaround and surplus have been achieved at the same time that the NHS has maintained or improved performance on key indicators of patient care. We will be publishing a report tomorrow that shows:

Next Section Index Home Page