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NHS: Supply Chain Services

The Minister of State, Department of Health (Lord Warner): My honourable friend the Minister of State, Department of Health (Andy Burnham) has made the following Written Ministerial Statement.

A 10-year contract has been awarded to DHL to manage the supply chain and procurement services currently managed by the logistics division of the NHS Business Services Authority (NHSBSA) and part of the NHS Purchasing and Supply Agency (PASA).

The effective date of the contract will be 1 October 2006 and the new service will be known as NHS Supply Chain. DHL will operate NHS Supply Chain as agent of the NHSBSA, which will be responsible for managing the contract on behalf of the department and of the NHS.

DHL will manage the procurement and supply chain services of approximately £3.7 billion of NHS non-pay spend and forecasts savings greater than£l billion for the NHS front line.

In addition, the partnership with DHL will:

secure continuity of the services for at least 10 years;ensure all trusts will benefit from lower prices;secure the vast majority of the 1,650 jobs that are being transferred;protect staffs terms and conditions under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE);create up to 1,000 new jobs to support expansion over the 10 years;guarantee that all the logistics distribution centres will remain open for five years at the very least; andrequire the construction of a new distribution centre in the Midlands within 18 months.

We recognise that NHS trusts value the NHS logistics service and we have ensured that DHL will, at a minimum, maintain the current service. As is the case now, NHS trusts will not be mandated to use the outsourced service. For DHL to be successful it will have to demonstrate value for money to NHS trusts. It will also work very closely with clinicians to source the right products at the best prices from suppliers.

This is also an opportunity for suppliers with innovative products to gain better access to the NHS. DHL will purchase products on behalf of the NHSBSA in accordance with EU procurement regulations thus ensuring open and fair competition.

Opium Derivatives: Macfarlan Smith Report

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville): We welcomed this Office of Fair Trading report, which was published on 7 March 2006. As part of its statutory role, the OFT regularly reviews undertakings given by organisations following earlier competition investigations. In this case, the OFT reviewed the undertakings by MSL following a report from the Monopolies and Mergers Commission (MMC), and concluded that competition was being impeded by the impact of government policy in the licensing of imports for opium derivatives. It made the recommendation that the Government consider competition when setting licensing policy for the import of opium derivatives.

The OFT recommendation is in line with the Government's commitment to encourage and enhance the competitive process to bring the wider benefits to the UK economy. Preventing abuse of market power is a key element of this, and it is important to ensure that regulation which affects such market power is operated in a transparent manner. It is therefore clear that the Government should regularly review policy decisions such as this to ensure that the detrimental impact to competition is prevented, or, where other objectives intervene, limited. The OFT report has provided an excellent catalyst for such a review, and the Government will commit to repeating the process of review every five years.

During discussion with MSL and other parties while developing the response, a consistent complaint was the lack of a level playing field between the UK and other European countries (something recognised in the original MMC report). Currently, the UK is the only major European producer to allow imports.

There has been limited discussion of this at European level, and the Government are committed to raising this issue again with the European Commission to develop options for the creation of a single market for these products.

The full government action plan is attached and copies of OFT's report will be placed in the Members’ Library. In preparing this response, we have worked closely with the relevant government departments, in particular the Home Office, which is responsible for licensing policy, and the Department of Health.

Public Bodies: Directory

Lord Bassam of Brighton: My honourable friend the Parliamentary Secretary in the Cabinet Office is pleased to announce that the 2006 version of the Public Bodies Directory has now been completed and copies are available in the Library for the reference of noble Lords. The directory provides informationon individual public bodies as at 31 March 2006.The directory is also accessible at: http://www.civilservice.gov.uk/other/agencies/public_bodies/index.asp This shows that at 31 March 2006 there was a reduction of 28 long-term public bodies since the same date in 2005.

The directory lists the public bodies sponsored by central Government, with contact details, information about their remit and about the membership of their boards. It also introduces a new category within the public bodies classifications—public broadcasting authorities. This recognises the unique governance arrangements pertaining to the BBC and S4C, which set them apart from other non-departmental bodies and public corporations.

The board membership figures are broken down between male and female members for individual bodies, and summaries are provided at departmental level for the proportions of board members who are women, have declared they have a disability or come from a minority ethnic background. There have been small increases in all categories. As at 31 March 2006, 35.5 per cent of appointments made were women (up 0.5 per cent on the position at 31 March 2005), 5.9 per cent were members of ethnic minority groups (up 0.4 per cent) and 5.1 per cent were to those declaring a disability (up 0.8 per cent).

A cross-Government summary of individual departments’ figures will be placed on the public appointments website at: www.publicappointments.gov.uk. This reinforces the Government’s commitment to continue to pursue their diversity objectives and to promote outreach activity and plans.

The directory also includes information about the Government’s task forces, ad hoc advisory groups and reviews, giving a more complete picture of the bodies and groups working to deliver the Government’s objectives.

Royal Navy: Review of Bases

The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Drayson): My right honourable friend the Secretary of State for Defence (Mr Des Browne) has made the following Written Ministerial Statement:

The defence industrial strategy published in December 2005 set out a challenge to the UK maritime industry to reduce its overheads and invest in the facilities and skills needed to meet the demands of the Royal Navy's future warship programme. The same challenges apply to the naval bases as we look to the future. The naval bases exist to support the Royal Navy's front line. They are complex and expensive organisations. We need to ensure that their capacity is no more and no less than we need to support the needs of the fleet now and in the years to come. I wish to announce, therefore, our intention to conduct an in-depth review of naval base infrastructure requirements. The aim of the review is to ensure that we have the right naval base infrastructure to meet the needs of the future fleet. The review will assess future requirements and examine a range of options, including some that could lead to radical reductions in overheads and naval base capacity. The recommendations from the review, which will be undertaken by the Defence Logistics Organisation, are expected to be finalised in spring 2007.

The trade unions have been consulted on the terms of reference for the review and, while it is too early to predict the impact on jobs, the department will continue to engage with them and other stakeholders as the review is taken forward. Final decisions on the recommendations from the review will be subject to full trade union consultation.

Social Exclusion: Action Plan

Lord Bassam of Brighton: My right honourable friend the Chancellor of the Duchy of Lancaster is today publishing the Social Exclusion Action Plan.

We have much to be proud of in our efforts to tackle poverty, promote social justice and create the right environment for sustained economic growth.

However, a consequence of this success is that the more modest progress of some specific groups within our society has become more apparent.

This action plan is the first step towards changing that. It aims to create the conditions to allow everybody to accept opportunity, reach their full potential and play their full part in society.

This action plan marks a new direction for the Government’s social exclusion policy. It commits us to:

Better identification and early intervention: We will identify early who is at risk of persistent exclusion and use this information to more effectively intervene and support those most in need, and before disadvantage becomes entrenched.

Identifying what works: We will systematically identify and promote interventions that work. To ensure effective adoption of best practice, we will build the capability of providers and commissioners.

Multi-agency working: We will break down barriers and enhance flexibility so local providers and agencies can work together to meet the needs of excluded groups, especially those facing multiple problems.

Personalisation, rights and responsibilities: We will tailor services to the needs of the individual. We will empower, where it is appropriate, excluded groups to make choices on their own behalf or ensure there is an independent, trusted third party to work on their behalf. Our approach will be framed by a clear understanding of the rights and responsibilities of citizens, services and the community.

Supporting achievement and managing underperformance: Where local authorities and services are delivering, Government will leave them alone, but where there is underperformance, Government will intervene.

The action plan outlines how these principles will be applied or piloted for excluded groups throughout the lifetime—during the early years, the childhood years and the adult years. Implementing more focused and immediate interventions will supplement and inform deeper systemic reform.

Copies of the action plan have been placed in the Library for the reference of noble Lords.

Sudan

The Parliamentary Under-Secretary of State, Foreign and Commonwealth Office (Lord Triesman): Sudan remains a top priority for the UK Government. The Department for International Development and the Foreign and Commonwealth Office are jointly supporting parties in Sudan to deliver the Darfur peace agreement (DPA) signed on 5 May, and to promote development in Sudan. The UK played a leading role in securing UN Security Council Resolution 1706, which was passed on 31 August. This resolution expands the mandate of the UN Mission in Sudan (UNMIS) to Darfur in support of the early and effective implementation of the Darfur peace agreement and the N’djamena agreement, and strengthens the military personnel and civilian component of UNMIS to do this.

The passage of Resolution 1706 demonstrates the international community’s continued commitment to peace in Darfur. In the interests of the safety and welfare of its civilians, we continue to press the Sudanese Government, at the highest level, to give consent to its implementation. We are concerting with others in the international community, including the UN, US and key Arab states, to achieve this. I raised this with Egyptian President Mubarak and the Secretary-General of the Arab League, Amr Moussa, in Cairo last week. And both my right honourable friend the Secretary of State for International Development and my noble friend the Minister for Africa, Lord Triesman, have been engaging key interlocutors in the Government of Sudan and beyond.

In the mean time we will continue to support the African Union’s efforts while a transition is under way. The African Union is doing an important job in the most difficult of circumstances and it is most important that they stay until a UN force is able to deploy. On 18 July, the international community in Brussels promised further support of around $200 million, including the £20 million that the UK is providing this year.

The continuing violence in Darfur is having devastating effects. It must stop immediately. We condemn the continuing violations of the ceasefire by all parties, particularly the violence directed at civilians and attacks on humanitarian agencies. Because of this insecurity the UN and NGOs are unable to reach 470,000 people whom they believe to be in need of their assistance.

We are also gravely concerned by the recent military build-up in Darfur and reports of Sudanese Government military attacks as part of their “stabilisation plan for Darfur”. As the UN Secretary-General has said, this plan is inconsistent with the DPA. Any attempt to take renewed military action and any continued rebel activity would further undermine the prospects of achieving peace and could lead to a further humanitarian catastrophe.

A broad based and inclusive implementation of the DPA, signed in Abuja on 5 May 2006, remains the basis for stability, peace and reconciliation in Darfur. The UK played a leading role in negotiations in Abuja: the Secretary of State for International Development attended the final days of negotiations in support of the AU mediation to help secure a deal. All parties should work to put its provisions into effect. More rapid progress by the Government of Sudan in disarming the Janjaweed is key. It is also important for the signatories to the DPA to work to bring the non-signatories on board. To this end, the efforts of the SPLM are most welcome.

In the mean time, the non-signatories need to be fully involved in the effective monitoring of the ceasefire and investigation of violations through existing ceasefire mechanisms. In this way, they should be fully held to account for fulfilling their obligations as set out in the 2004 N’djamena Agreement on Humanitarian Ceasefire on the Conflict in Darfur.

The UK remains committed to peace in Darfur and the wider Sudan. We will continue to seek a solution to the conflict there. As part of this, we have appointed a new special representative for Darfur, William Patey, a former ambassador in Khartoum, to replace Rod Pullen, who has retired from the Diplomatic Service.

Teenage Pregnancy: Independent Advisory Group Annual Report

The Parliamentary Under-Secretary of State, Department for Education and Skills (Lord Adonis): My right honourable friend the Minister for Children, Young People and Families (Beverley Hughes) has made the following Written Ministerial Statement.

I would inform the House that the Independent Advisory Group on Teenage Pregnancy has published its annual report for 2005-06. Copies will be placed in the Libraries of both Houses.

Terrorism: Control Order Powers

The Minister of State, Home Office (Baroness Scotland of Asthal): My honourable friend the Minister for Policing, Security and Community Safety (Tony McNulty) has made the following Written Ministerial Statement.

Section 14(1) of the Prevention of Terrorism Act 2005 (the 2005 Act) requires the Secretary of State to report to Parliament as soon as reasonably practicable after the end of every relevant three-month period on the exercise of the control order powers during that period.

During the period 11 June to 10 September 2006, nine orders were made with the permission of the court under Section 3(l)(a) of the 2005 Act—onein respect of a British citizen on 19 June 2006, one in respect of a foreign national on 31 July 2006, six in respect of foreign nationals on 1 August 2006 and one in respect of a British citizen on 5 September 2006.

The Secretary of State has also renewed one control order in accordance with Section 2(4)(b) of the 2005 Act on 30 August 2006.

There are 15 control orders currently in force, six of which are in respect of British citizens.

During the period two requests to modify a control order obligation were agreed, and seven requests to modify a control order obligation were refused. A right of appeal exists in Section 10(3) of the 2005 Act against a decision by the Secretary of State not to modify an obligation contained in a control order.

Universities: Student Finance

The Parliamentary Under-Secretary of State, Department for Education and Skills (Lord Adonis): My honourable friend the Minister of State for Lifelong Learning and Higher Education (Bill Rammell) has made the following Written Ministerial Statement.

The level of support for loans, grants and fees that will be available to eligible students in the 2007-08 academic year will be 2.33 per cent higher than for 2006-07, in line with forecast price increases.

For students who have entered higher education on or after 1 September 2006 and are being charged variable fees, the maximum fee payable will increase from £3,000 to £3,070 in 2007-08. The increase to the fee will be matched by a corresponding increase to the loan for fees that students can take out.

For students who are not being charged variable fees (primarily students who entered higher education before 1 September 2006), the maximum fee payable will increase from £1,200 to £1,225.

The increased fee amounts have been authorised by the Student Fees (Amounts) (England) (Amendment) Regulations 2006, which will come into force on 1 September 2007.

I am placing a memorandum in the Library giving details of all the increased loan, grant and fee rates for 2007-08. These rates are being incorporated in the Education (Student Support) Regulations 2007, which will be laid before Parliament in due course.

World Trade Organisation: Doha Development Agenda

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville): I would like to update the House on the World Trade Organisation’s (WTO) negotiations on the Doha development agenda. On July 24, Pascal Lamy, the Director General of the WTO, announced that he was recommending the suspension of the negotiations across all subjects, after talks between the US, EU, Brazil, India, Australia and Japan broke down on the key issues of agricultural domestic support, agricultural market access and non-agricultural market access. He said the suspension would give all WTO members time to reflect, to examine available options and to review their positions. His recommendation was accepted at a WTO General Council meeting on 27 July.

The UK Government are very disappointed that insufficient progress has been made in the negotiations to allow the conclusion of the Doha round this year. While it is very disappointing that no agreement has yet been reached, it is premature to say that the Doha round has collapsed and cannot be revived. We believe that all key players have a responsibility to use the suspension of the negotiations to reflect on their positions with a view to showing flexibility in future that will allow an agreement to be reached. Developing countries, including the poorest countries, are the biggest losers from the failure to reach agreement.


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