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replace appliance contractor remuneration “on- cost” arrangements with fees and allowances, which will be laid out in the Drug Tariff;
introduce a funding uplift mechanism for remuneration for part IX related services that is similar to arrangements in place within the community pharmacy contractual framework;
apply a uniform reimbursement price reduction of 2 per cent. to the reimbursement prices of all items listed as of 31 March 2010 in the following sections of part IX of the Drug Tariff:
Part IXA catheters: urinary and urethral
all items listed in part IXB, which lists incontinence appliances; and
all items listed in part IXC, which lists stoma appliances;
allow manufacturers whose products have a combined net ingredient cost of less than £5.6 million a year to apply for an exemption from this reduction; and
introduce a reimbursement price increase mechanism for appliances supplied six months after the new arrangements come into effect.
To allow these new arrangements to be implemented, amendment regulations will be laid—and amendment directions made—at least six months before they come into force. Subject to this, the new arrangements will be implemented from 1 April 2010.
In addition to the new arrangements, the Department has decided that there will be a 4.4 per cent. uniform increase on the current on-cost percentage paid to DACs for a six-month period from October 2009 to March 2010. The increase recognises that, as the reimbursement price increase mechanism has been suspended since April 2006, the on-cost that DACs currently receive by way of remuneration for service provision, which is linked to reimbursement, has only increased in-line with related volume increases over the same period.
Meningitis C Vaccine
The Minister of State, Department of Health (Dawn Primarolo): On 27 February I advised the House of a recall of batches of a meningitis C vaccine, “Menjugate Kit”, and said that I would provide a further statement when test results were available.
I am pleased to confirm that the manufacturer, Novartis Vaccines and Diagnostics, has conducted sterility tests of all recalled batches and they have proved sterile. The Medicines and Healthcare products Regulatory Agency (MHRA) has also conducted its own independent tests which have confirmed the sterility of the vaccine.
It was right, on the evidence at the time and in the interests of public health, that the recall of the “Menjugate Kit” vaccine was made, as a precautionary measure. The results of these tests are reassuring, and confirm that the vaccine used in the UK was not contaminated.
The UK has a successful immunisation programme that protects children from serious disease. Parents should continue to have confidence in getting their children vaccinated against serious illnesses.
Home Department
Race Relations
The Minister for Borders and Immigration (Mr. Phil Woolas): I have made an authorisation under section 19D of the Race Relations Act 1976, as amended, to enable the Secretary of State to request that asylum applicants claiming to be a Somali national submit to language analysis.
This authorisation replaces the Race Relations (Immigration and Asylum) (Language Analysis) Authorisation 2008 (5 June to 4 April 2009), which will expire on the latter date.
Language analysis carried out in 2008 for some Somali asylum applicants demonstrated that significant proportions of those tested had claimed to be of a nationality, or from a region or grouping, that was not their own in order to try to gain residence in this country. This authorisation will assist the Secretary of State to make decisions in individual cases, and to ascertain the extent of this abuse. It will also assist in deterring such asylum claims.
The Secretary of State may take a refusal to submit to testing into account when determining whether an applicant has assisted in establishing the facts of his case or her case.
The authorisation will remain in place for 12 months (until April 2010), at which point we will review whether it is still necessary and appropriate.
I am placing copies of the authorisation in the Libraries of both Houses of Parliament.
UK Border Agency
The Minister for Borders and Immigration (Mr. Phil Woolas): The UK Border Agency, which was established as a shadow executive agency in April 2008, will today begin to operate as a full executive agency of the Home Office. I am also publishing the UK Border Agency’s Framework Agreement, which describes how the agency will be governed, and its business plan, which sets out the agency’s objectives for the next three years. Copies of these documents have been made available in the Libraries of both Houses. The documents are also available on the Home Office website.
The move to full executive agency status is an important milestone in the development of the agency. It establishes a clear accountability framework within which the chief executive will have greater operational freedom to focus on delivering the agency’s services. At the same time, the framework agreement ensures that the agency will continue to work closely with the wider Home Office and its key delivery partners, including HM Revenue and Customs, the Foreign and Commonwealth Office and the police. Later this year we hope, subject to the passage of the Borders, Citizenship and Immigration Bill, to complete the formal transfer of customs functions and staff from HM Revenue and Customs to the agency.
The agency will secure our borders and control migration for the benefit of our country and play a vital role in the Government’s work to protect the public from crime and terrorism and to protect the tax revenues which pay for public services.
Visa Regimes
The Minister for Borders and Immigration (Mr. Phil Woolas): The Government are today announcing the dates of implementation of the visa regimes, announced in my right hon. Friend the Home Secretary’s written statement to the House of 9 February 2009, Official Report, column 51WS. These tough new visa requirements will further strengthen the UK Border, while ensuring the UK continues to welcome genuine visitors.
Visa regimes for Bolivian and Venezuelan nationals will begin on Monday 18 May 2009. Venezuelan nationals holding valid biometric, machine readable passports will be exempt from the visa requirement. At the same time we will clarify how the visa exemption for Taiwan passport holders works—that it only applies to those with full Taiwan passports.
The temporary visa exemption for South African visitors with a previous travel history to the UK which began on 3 March will cease at midnight on 30 June 2009. From Wednesday 1 July 2009 all South African visitors to the UK will require a visa, as will visitors from Lesotho and Swaziland.
The new visa requirements mean that nationals from these countries wishing to visit the UK for up to six months will need to obtain a visit visa, and provide their fingerprints, before they travel. Nationals of these countries seeking to travel via the UK en route to another country will also need a transit visa. This is in addition to the existing requirement for a visa in order to live, work, study or marry in the UK.
All the new regimes will be implemented in line with the high standard of the UK’s current visa operations.
Innovation, Universities and Skills
Further Education Capital Programme
The Secretary of State for Innovation, Universities and Skills (Mr. John Denham): In 1997 there was no capital budget for Further Education Colleges and the National Audit Office described FE college buildings as “ageing and their quality and fitness for purpose was often unsatisfactory, affecting the reputation of the sector”.
Between then and 2006-07, more than £2 billion has been invested in modernising FE facilities. My Department will spend another £2.3 billion in the current spending review period. We have been able to bring forward over £110 million of future investment in 2008-09 as part of the Government’s response to boost the economy. Last summer the NAO reported the capital programme was making good progress with the renewal and modernisation of the FE estate with the great majority of projects coming in on budget and delivering improvements for learners.
In December, the Learning and Skills Council, which runs the programme, decided to defer further approvals of schemes while assessing the programme overall. The LSC’s assessment, which I reported to the House on 4 March 2009, Official Report, column 56WS, was that there were many more schemes in preparation than can be funded in this spending round. Before this assessment had been completed, I had agreed with the LSC in January to appoint Sir Andrew Foster to conduct an independent review of the LSC’s handling of its capital programme and to make recommendations for the future.
Sir Andrew’s report is published today and copies have been placed in the Library of the House. I am also writing to all Members enclosing a copy of the report.
Sir Andrew’s report is very clear and he has gone through the issues with great care. My Department and the LSC will accept all of his recommendations. I also wish to record my thanks for the speed and efficiency with which he has conducted his review. His key finding is that “a good policy has been compromised by the manner of its implementation”. He goes on to explain that “the policy intent to transform the FE estate is clear and positive. But the implementation approach did not include a robust financial strategy or a regional or national approach to prioritisation”.
Recognising the deficiencies in how the LSC has managed the programme, its former chief executive, Mark Haysom, resigned on Monday 23 March. Geoffrey Russell was appointed as acting chief executive on the same day. He said that his first task was to urgently increase the certainty and clarity around the capital funding programme.
He has immediately appointed an external team from the firm Grant Thornton to review the financial data held by the LSC about capital projects to ensure, as Sir Andrew recommends, that “the process is grounded in fully accurate and detailed information about capital schemes in the pipeline”.
Mr Russell has appointed a director to be personally responsible for the capital programme, responding to Sir Andrew’s conclusion that there was no clear overall responsibility for the capital programme within the LSC.
Sir Andrew recommends that the priority is “to agree how the present demand-led approach to the programme is replaced by a needs-based approach with explicit priorities and choice criteria”. The LSC is now consulting the sector on the approach which should be used in prioritising schemes. Sir Andrew also recommends that it will be essential to have early and open engagement with the sector in finding ways forward on the most pressing matters. The LSC has therefore established a reference panel of college principals convened by the Association of Colleges.
Mr Russell is also appointing an external team of property specialists to assist the LSC as it begins shortly to meet with each college to ensure that the information held by the LSC is accurate and comprehensive and a sound basis for taking future decisions.
While that work is going on, we have already made clear to all college principals that we will not allow any college to get into a situation where it cannot meet its financial obligations as a result of decisions taken by the LSC on the capital programme. The LSC monitors financial risk in colleges and there are well-established procedures for dealing with any college judged to be at risk. Any college that is concerned should speak to its local LSC who will work with the college to agree an appropriate financial plan.
Finally, Sir Andrew’s report also concludes that the scrutiny of the LSC capital programme by my Department was insufficiently rigorous. Many of my Department’s objectives are achieved via arm’s length bodies. It is vitally important that my Department is able to exercise proper scrutiny of their work. I have asked the permanent secretary to carry out a review of DIUS relationships with our non-departmental public bodies to ensure that there is clarity about accountability and responsibility.
I will make a further statement to the House after the recess and report on the progress made in ensuring that the record investment we have made in FE continues to develop the skills of the nation.
Justice
Probation Trusts
The Minister of State, Ministry of Justice (Mr. David Hanson): I wish to inform the House that from 1 April 2009, there will be established two further probation trusts operating in England and Wales: Greater Manchester and Lancashire. This brings to eight the total number of probation trusts.
There remain 34 local probation boards that continue to operate in all other areas of England and Wales. These boards will, subject to satisfactory performance, have the opportunity to apply in 2009 to become probation trusts in April 2010. Voluntary mergers, initiated locally, will be supported by NOMS where they are more likely to meet the criteria for trust status.
In accordance with sections 7, 8, and 10 of the Offender Management Act my right hon. Friend the Secretary of State for Justice has published a strategic and business plan for the National Offender Management Service for 2009-10, his annual plan for 2009-10.
The trusts programme presents a challenge to probation boards to demonstrate that it can deliver locally tailored services efficiently and effectively. I am pleased that Lancashire and Greater Manchester have met this challenge and I am confident that more trusts will be created by 2010 and deliver significant benefits in reducing reoffending and protecting the public.
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