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Meat Hygiene Service Annual Report and Accounts

Baroness Ramsay of Cartvale asked Her Majesty's Government:

Lord Hunt of Kings Heath: The 2001–02 annual report and accounts for the Meat Hygiene Service were laid before Parliament today. Copies are available in the Library, but formal printing and publication will not occur for another six to eight weeks, pending preparation of a version in Welsh as required by the Welsh Language Act.

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Medicines Control Agency Annual Report and Accounts

Lord Patel of Blackburn asked Her Majesty's Government:

    Whether they will publish the annual report and accounts of the Medicines Control Agency.[HL5493]

Lord Hunt of Kings Heath: We have received the report and copies have today been laid before both Houses of Parliament in accordance with the requirements of Sections 5(2) and 5(3) of the Exchequer and Audit Departments Act 1921. Copies have also been placed in the Library.

Medicines Commission Annual Report and Accounts

Lord Patel of Blackburn asked Her Majesty's Government:

    When they expect to receive the annual Report of the Medicines Commission for 2001; and whether this will be published[HL5494]

Lord Hunt of Kings Heath: We have received the report, and copies have been laid before both Houses of Parliament today in accordance with the requirements of Section 5(2) of the Medicines Act 1968.

Bound volumes have been placed in the Library containing the 2001 reports of the Medicines Commission, the Committee on Safety of Medicines, the Advisory Board on the Registration of Hornoeopathic Products, the British Pharmacopoeia Commission, the Independent Review Panel on Advertising, the Independent Panel for Borderline Products and the Veterinary Products Committee.

We are glad to acknowledge the valuable work done by the distinguished members of the Medicines Act advisory bodies and thank them for the time and effort dedicated in the public interest to this important work.

NHS Pensions Agency

Lord Carter asked Her Majesty's Government:

    Whether they will publish the annual report and accounts of the National Health Service Pensions Agency.[HL5495]

Lord Hunt of Kings Heath: We have approved the annual report and accounts which have today been laid before the House of Commons in accordance with the requirements of Section 7 of the Government Resources and Accounts Act 2000. Copies have been placed in the Library.

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Lord Carter asked Her Majesty's Government:

    Whether they will publish the key targets for 2002–03 of the National Health Service Pensions Agency; and whether they will make an announcement over the future of the Agency[HL5496]

Lord Hunt of Kings Heath: We have agreed the agency's key targets for 2002–03, and have placed copies in the Libraries of both Houses. A review of the agency will be completed by the end of this year. This will address the performance of the agency and will examine the options ("prior options") for the future of the agency.

Religious Organisations Broadcasting Licences

Lord Laird asked Her Majesty's Government:

    Which other member states of the European Union have enacted statutory discrimination legislation to prevent religious organisations holding a wide range of broadcasting licences.[HL5416]

The Minister of State, Department for Culture, Media and Sport (Baroness Blackstone): We hold no information on which other member states of the European Union have legislation preventing religious organisations from holding certain broadcasting licences.

Centre for Management and Policy Studies Annual Report and Accounts

Lord Bruce of Donington asked Her Majesty's Government:

    When they will publish the annual report and accounts for the Centre for Management and Policy Studies.[HL5466]

The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Lord Macdonald of Tradeston): Copies of the second annual report and accounts for the Centre for Management and Policy Studies for the year 1 April 2001 to 31 March 2002 have been placed in the Libraries of the House.

The report and accounts show that financial targets have been met. The quality targets were met and in some cases exceeded. The volume targets for participants in training and development were exceeded in the aggregate.

The changes to Cabinet Office announced by

Sir Andrew Turnbull, and presently being implemented in advance of his arrival in September, will have a significant effect on CMPS as an organisation.

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IT Procurement: Open Source Software

Lord Bruce of Donington asked Her Majesty's Government:

    What their policy is towards the use of open source software to enable increased value for money in IT procurement across the public sector.[HL5467]

Lord Macdonald of Tradeston: This Government are intent on securing the best value for money in its IT procurements by encouraging the development of a flourishing IT industry which supplies both proprietary and open source software solutions to the public sector. Government procurement decisions will be based on the ability of the solutions to deliver effective and economic systems and services.

I am pleased to announce new policy on the use of open source software within UK Government. It explains how we will consider open source software solutions alongside proprietary ones in IT procurements and award contracts on a value for money basis, seeking to avoid lock-in to proprietary IT products and services. In addition, the UK Government will consider obtaining full rights to bespoke software code or customisations of COTS (commercial off the shelf) software it procures wherever this achieves best value for money. It will also explore further the possibilities of using OSS as the default exploitation route for government funded R&D software.

The open source software policy has been formulated for use within UK Government because we seek to embrace the fast moving pace of the software industry and to acknowledge the clear potential for open source software to change the software infrastructure marketplace. It also serves as an appropriate response to the recent European Commission's action plan for the initiative eEurope—An Information Society for all. UK Government, in joining with its European partners to explore the availability of open source software solutions, will seek to realise the significant potential for cost-savings in the future and to achieve an increased flexibility in the development, enhancement and integration of our IT systems.

Executive Agencies

Lord Tomlinson asked Her Majesty's Government:

    What the outcome was of the review of policy towards executive agencies.[HL5468]

Lord Macdonald of Tradeston: The Government have published the report of the review which was jointly sponsored by the Cabinet Office and the Treasury. Pam Alexander led the review. Copies of the review's report and recommendations have been placed in the Libraries of the House.

The review has far-reaching implications for improving the delivery of central government services. It concludes that the agency model has been a success in improving, and in some cases transforming, services

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and functions delivered by central government and has brought customer focus and a performance culture into the civil service. However, it finds that agencies have in some cases become detached from Ministers and from departments' increasing focus on strategic aims; controls over processes have reduced effectiveness and responsiveness without providing a shared strategic direction.

The report makes 12 recommendations to achieve and maintain strategic connection and improve service delivery. These include:


    departmental leadership which values equally policy and delivery skills and agency management with a clear understanding of ministerial objectives;


    simpler governance structures providing strategic direction from departments and external challenge from non-executive directors on management boards;


    alignment of departmental and agency key targets and a cycle of reviews to ensure that structures and processes across departments support the achievement of key objectives; and


    maximum use of financial and managerial delegations to support responsive, flexible and effective delivery.

The Cabinet Office and Treasury will be working with departments to put the review's recommendations into effect over the coming months as part of the wider drive to improve the effectiveness of public services and place a culture of delivery at the heart of government.

Civil Service Pension Arrangements

Baroness Serota asked Her Majesty's Government:

    What plans they have to introduce new pension arrangements for the Civil Service.[HL5469]

Lord Macdonald of Tradeston: Under the provisions of the Superannuation Act 1972, three amendment schemes have been placed before Parliament. The first of these amends the rules of the Principal Civil Service Pension Scheme (PCSPS) and introduces new provisions for those joining the pension scheme on or after 1 October 2002. The second amendment scheme makes consequential changes to the Civil Service Compensation Scheme, and the third amendment scheme removes the injury benefit provisions of the PCSPS to a separate scheme.

Pension arrangements for civil servants (and those in employments and offices listed in Schedule 1 to the Superannuation Act 1972) will change on 1 October 2002. New entrants joining after that date will generally be given the choice of a final salary pension or a stakeholder pension with an employer contribution. The new arrangements are being introduced on a cost-neutral basis for employers.

We recognise that pensions form a significant part of the Civil Service remuneration package, and we want civil servants to be able to choose the pension

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that suits them best. Today's Civil Service does not offer a job for life and is benefiting from greater interchange with other sectors at all levels within the organisation. Final salary pensions may be good for those who spend a long period with one employer, but those who change jobs frequently during their career may prefer their employer to contribute to a stakeholder pension. By giving our new staff a choice of two good quality pension alternatives we aim not only to support a more diverse Civil Service but also to raise awareness and appreciation of the value of the pension element of the pay package.

The new final salary option will be known as the premium scheme. It will provide a pension based on one-sixtieth of final pensionable earnings for each year of service. Other features of the premium scheme include:


    option to exchange part of pension for lump sum on retirement;


    ill-health pensions varying in amount depending on the extent of incapacity;


    death-in-service lump sum of three times pay;


    pensions for surviving spouses of 3/8ths of the member's pension;


    pension payable to a surviving eligible unmarried partner if the member does not leave a spouse;


    pensions for children.

Existing members of the PCSPS will have the option of joining the premium scheme or remaining with the current provisions (to be renamed the classic scheme). Members opting for classic will continue to earn a pension based on 1/80th of pay for each year of service, plus a retirement lump sum of three times pension. Members opting to join the premium scheme will have their past service reduced—typically to 92 per cent of its previous amount—to reflect the improved benefit structure. Members may also opt for classic plus; this option effectively provides premium scheme benefits for service from 1 October with service before 1 October continuing to be pensioned broadly on the classic model.

We are moving to the new arrangements on a cost-neutral basis, with the entire cost of benefit improvements being met by increased contributions by members. None of the cost of the benefit improvements will fall on the taxpayer. All premium and classic plus members will pay the new contribution rate of 3.5 per cent. Members opting to remain in the classic scheme will continue to pay contributions of 1.5 per cent of pay.

The stakeholder pension alternative will be known as the partnership pension account. Employees will choose their pension provider from the following panel:


    AMP Corporate Pensions


    Scottish Widows


    Standard Life


    TUC.

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Employees opting for a partnership pension account do not need to contribute but will be encouraged to do so by having their contributions matched up to 3 per cent of pay. In addition, the employer will pay contributions based on age, varying from 3 per cent of pay for those under 21, to 12.5 per cent of pay for those aged 46 and over. Lump sum benefits of up to three times pay on death in service and on ill health retirement will be provided separately and will be the subject of future schemes under the Superannuation Act.

Civil Service remuneration is set having regard to the need to recruit, retain and motivate staff of the appropriate quality. Full account is taken of the value of pension arrangements, including the cost of index-linking, in setting the balance between the pay and pension elements of the reward package.

The Civil Service unions have been involved throughout the development of the new pension options, both in negotiating the terms and also in appraising their members of the options open to them. The unions' constructive involvement throughout this process stands as a testament to the value of partnership working.


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