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Written Ministerial Statements

Tuesday 21 April 2009

Communities and Local Government

Homeowners'Mortgage Support

The Minister for Housing (Margaret Beckett): Today I am announcing that new support to help homeowners remain in their home if they fall on difficult times will now be available. Homeowners Mortgage Support (HMS) will enable eligible borrowers to reduce their monthly mortgage interest payments to affordable levels for up to two years to help them get back on track with their finances if they suffer a temporary loss of income.

This new support builds on a range of measures the Government have already put in place to ensure that repossession is only ever a last a resort.

From today, the following major high street lenders will offer their customers HMS: Lloyds Bank Group (which includes Halifax and Bank of Scotland), Bradford and Bingley, Northern Rock, the Royal Bank of Scotland (which includes NatWest and Ulster Bank), Cumberland Building Society, and the National Australia Bank Group (which includes Clydesdale and Yorkshire Bank).

A number of other banks, building societies and specialist lenders have also confirmed today that they will offer their customers HMS as soon as possible. These are Bank of Ireland (which includes Bristol and West), GMAC, GE Money, Kensington Mortgages, Standard Life Bank, and the Post Office.

Lenders offering HMS will have the security of a Government guarantee if the borrower defaults.

At the same time, four other high street lenders, Barclays (including First Plus), HSBC, Nationwide and Santander (including Abbey and Alliance and Leicester) have all confirmed today they are offering comparable arrangements to their customers, while opting not to take up the Government guarantee. Customers of these institutions experiencing a reduction in income and willing to make regular monthly payments will receive a similar level of support and be encouraged to seek independent money advice.

As a result of today’s announcement, lenders covering more than 80 per cent of the mortgage market will now be providing enhanced support to their customers. Borrowers will receive independent money advice as part of these changes to help them make the right decisions for their circumstances. The door will remain open for further lenders to join the scheme, and we will be working actively with the sector to enable this.

HMS does not provide consumers with a payment holiday. The mortgage interest payments that have been deferred will eventually have to be paid back.

Households will need to seek independent money advice before signing up to the scheme to make sure they understand the consequences of participating. We have been working closely with Shelter, Citizens Advice Bureau, Consumer Credit Counselling Service, National
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Debtline and PayPlan to ensure they are ready to provide advice on the scheme, including making £2.5 million available for advice agencies to support the delivery of the scheme.

Homeowners Mortgage Support is part of the Government’s offer of real help for homeowners who are struggling to keep up with their mortgage payments. It is the latest element of the extra support put in place for homeowners which includes:

Homeowners are also protected through FSA regulation, including the expectation of fair treatment for customers.

A final impact assessment, setting out the estimated costs and benefits of Homeowners Mortgage Support, is also being published today. This is available to download from:


Further information, including eligibility criteria for households and full list of lenders working with us to offer this option to households is available at: http://www.communities.gov.uk/housing/buyingselling/mortgagesupportscheme/

A consumer guide to the scheme can be found at: www.direct.gov.uk/HMS.


Nuclear Test Veterans' Health Research

The Parliamentary Under-Secretary of State for Defence (Mr. Kevan Jones): The Government have been actively engaging with the concerns expressed by our nuclear test veterans that they and their offspring have been adversely affected by their participation in the British nuclear tests of the 1950s and 1960s.

The wider published peer-reviewed epidemiological evidence to date has not demonstrated a general link between veterans’ ill-health and participation in the tests. Similarly there is no peer-reviewed evidence suggesting that their children and grandchildren are at increased risk of genetic abnormalities.

The Government are, however, determined to address the ongoing concerns of nuclear test veterans. I had a constructive meeting with the British Nuclear Test Veterans Association (BNTVA) and interested MPs on Monday 20 April. I am pleased to report that the BNTVA have agreed to help identify a representative sample of veterans and their descendants with a view to conducting an assessment of their health needs. I therefore announce today an intention that the Ministry of Defence will work with veterans and experts to finalise the details of research to investigate the particular health needs of nuclear test veterans and their offspring with a view to
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identifying priorities and taking action to improve health. I also intend some follow-up to last year’s New Zealand chromosome study. The aim will be for projects to be of practical relevance to veterans with results delivered to a reasonable time scale. The work will be tendered in the normal manner and should be under way before the end of this year. A working group including representatives from the BNTVA will be established to take these projects forward.

Environment, Food and Rural Affairs

Draft Flood and Water Management Bill

The Secretary of State for Environment, Food and Rural Affairs (Hilary Benn): A draft Flood and Water Management Bill for England and Wales and a consultation paper will be laid before Parliament today. Copies of the draft Bill and associated documents will be available in the Vote Office and have been placed in the Library of the House. The draft Bill and the consultation paper set out the Government’s proposals to improve flood risk management and ensure water supplies are more secure, and the consultation period will close on 24 July. I am inviting the Environment, Food and Rural Affairs Select Committee to scrutinise this draft Bill in the coming weeks.

The aims of the draft Bill will be to:

The draft Bill will implement the key recommendations made in Sir Michael Pitt’s independent review into the summer 2007 floods, as promised in the Government’s response in December. It includes giving local authorities a clear leadership role in local flood risk management, encompassing all sources of flooding. It would also introduce a modern risk-based approach to reservoir safety to replace the current system where regulation depends on size rather than the risk posed to surrounding communities.

In addition to the provisions on flooding, the draft Bill includes measures to improve conservation of water in times of drought and the regulation of the water industry, and it will enable water companies to develop new ways of delivering very large infrastructure projects.

The draft Bill and associated consultation paper cover all the remaining legislation necessary to give full effect to the Government’s policy statements “Making space for water” and “Future Water”.

The documents will also be available on the DEFRA website at: http://www.defra.gov.uk/environ/fcd/floodsandwaterbill.htm

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Foreign and Commonwealth Office

Israel (UK Strategic Export Controls)

The Secretary of State for Foreign and Commonwealth Affairs (David Miliband): I am taking this opportunity to update Parliament, following my answers on 19 January, Official Report, column 514, on whether UK-supplied equipment may have been used by the Israeli Defence Forces (IDF) during the recent conflict in Gaza.

All strategically controlled exports from the UK—both military and dual-use goods—require an export licence, issued by the Department for Business, Enterprise and Regulatory Reform on the basis of advice from the Foreign and Commonwealth Office and the Ministry of Defence and, in relevant cases, the Department for International Development. Applications are assessed against the consolidated EU and national arms export licensing criteria and any other relevant announced policy. There are eight criteria, which set out the basis on which applications will be assessed. The most important criteria in relation to exports to Israel are as follows:

Estimates suggest that Israel buys over 95 per cent. of its military requirements from the US. The EU accounts for a proportion of the remainder. The UK is estimated as accounting for less than 1 per cent. of total Israeli military exports. Of the goods licensed by the UK, a significant proportion will have been for dual use goods for non-military use, or for goods for incorporation in Israel before onward export to a third country. Of the military goods licensed from the UK, the majority have been for components rather than complete systems or sub-systems. Many of the licences we have identified covering military equipment were for components for incorporation into US-manufactured platforms which were then re-exported to Israel.

I will start by dealing with the equipment used by the IDF in relation to Operation Cast Lead which—contrary to suggestions made in the press and elsewhere—we do not believe contained components supplied under licence from the UK.

Unmanned Aerial Vehicles (UAVs): UAVs were used extensively for reconnaissance and targeting. The Heron and Hermes 450 variants were positively identified. Numerous export licence applications have been received to supply equipment to Israel’s significant UAV industry. The great majority are subject to further incorporation in Israel for onward export and a small number approved for demonstration, research, testing and our own “Watchkeeper” UAV programme. We have no evidence to suggest that goods licensed by the UK were diverted within Israel for use by the IDF.

Tanks and Armoured Bulldozers: Merkava tanks were deployed in support of the ground offensive into Gaza. We have not identified any UK components on the Merkava tank. D9 Armoured Bulldozers were used to clear ground, clear routes for armoured vehicles and
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there are credible reports that they were used to demolish houses containing weapons caches or tunnels. None were supplied under licence from the UK, nor were any components for them.

Secondly, there is equipment which may have been involved in Operation Cast Lead and may have contained British-supplied components.

Satellites: Israel has a number of reconnaissance satellites that could have been used to provide information to the IDF, and for which the UK has supplied minor components. We assess that these might have been used to prepare the operation but would not have played a significant part in the operation itself.

Thirdly, there is IDF equipment that was used in Operation Cast Lead and which almost certainly contained British-supplied components.

Combat Aircraft: The F16 was widely used, including for the delivery of precision-guided ordnance. No licences have been granted by the Government for the export of F16 components sent direct to Israel since 2002. British made components for F16s have been exported to the United States where Israel was the ultimate end-user. These licences covered components for head-up displays, head-down displays and enhanced display units.

Helicopters: Apache attack helicopters were used in the operation as part of the initial air campaign, and later in support of ground troops. Licences have been approved for the export of components to the US for incorporation into equipment for use on Apache helicopters ultimately destined for Israel. These licences covered parts for the fire control and radar system, navigation equipment and engine assemblies.

Naval Vessels: Saar-Class Corvettes took part in the operation from the waters off Gaza. They are likely to have been used for a number of tasks, but there are credible reports that the Saar 4.5 was used in a naval fire support role (the Saar 5 does not carry a gun suitable for such a task). Applications have been approved for components direct to Israel for a 76mm gun for a Saar 4.5 class vessel. We have also licensed the supply of other types of equipment for the Israeli navy; most recent cases have been for ubiquitous cabling for the Saar-class vessels and components for radar equipment. Of the cases for radar equipment most have been for air defence purposes, but they have the technical capability to be used for fire-control against surface targets.

Armoured Personnel Carriers: Armoured Personnel Carriers (APCs) were used and these included conversions of UK-supplied Centurion tanks to carry troops, for mobile headquarters and as combat engineer vehicles. The Centurions were sold to Israel in the late 1950s.

It is inherent in the consolidated criteria that judgments are in part based on past practice, so evidence from Operation Cast Lead will be used in all future applications. I can confirm that we are looking at all extant licences to see whether any of these need to be re-considered in light of recent events in Gaza. All future applications will be assessed taking into account the recent conflict. I continue to believe that UK export controls and the consolidated criteria are amongst the strongest and most effective in the world and are the best basis for putting into practice our commitments on arms exports.

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Leader of the House

Members' Estimate

The Leader of the House of Commons (Ms Harriet Harman): To enable MPs to do their work representing their constituents effectively, there needs to be an allowance system. The public are entitled to be confident that that the allowance regime is fair and reasonable and effectively enforced.

The Prime Minister has asked Sir Christopher Kelly and the Committee on Standards in Public Life to look at all of the relevant issues involved in MPs' allowances as speedily as possible.

In the meantime the Government thinks it is right to bring forward reforms that can be enacted sooner. We will therefore be asking the House of Commons to support the following proposals, which will reduce the cost to the taxpayer:

A.Flat-rate Allowance. We propose that, for MPs representing constituencies outside London, the Personal Additional Accommodation Expenditure (commonly known as the ‘second home’ allowance) should be abolished and be replaced by a flat-rate daily allowance, based on actual attendance at Westminster on parliamentary and Government business or the business of the Opposition Front Benches. This will be limited to the Parliamentary Session or a maximum number of days.

There will now be no second home allowance or claims for food, furniture and fittings, fuel, mortgage interest, rent or council tax.

We will ask the Senior Salaries Review Body to set the appropriate level of allowance independently, comparable to those set by wider public and private institutions. The Committee on Standards in Public Life will want to consider these issues going forward, including the issue of taxation. Provision will be made for the long-term ill and maternity leave. The claims by each Member should be published annually.

B. London. For anyone representing constituencies within reasonable distance of Westminster, the Personal Additional Accommodation Expenditure will be replaced by the London supplement, which already applies to inner London MPs. The Committee on Standards in Public Life will of course want to look at the current Green Book rules on this and the SSRB should report on the level of the allowance.

C. Grace and Favour homes. Ministers who for security or other reasons live in so-called ‘grace and favour’ homes will continue to pay council tax and tax on the benefit of living in this accommodation but will not receive this new allowance. The Committee on Standards in Public Life should be asked to report on these arrangements.

D. MPs’ Staff. In future all staff appointed by MPs without exception should become direct employees of the House of Commons, which would become centrally responsible for their employment terms and conditions, their contracts, and the payment of their salaries within the limit allowed—and will have the right to make an independent assessment of such contracts. The Committee on Standards in Public Life is examining the rules governing employment of spouses or other relatives.

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