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Written Statements
Wednesday 1 April 2009
Armed Forces: Porton Down Veterans
Statement
The Parliamentary Under-Secretary of State, Ministry of Defence (Baroness Taylor of Bolton): My honourable friend the Parliamentary Under-Secretary of State for Defence (Kevan Jones) has made the following Written Ministerial Statement.
In 2003 the Government commissioned, via the Medical Research Council, a large-scale and independent epidemiological study of the more than 19,000 UK service personnel who had taken part in human experiments at the Porton Down research establishment between 1939 and 1989. The study was completed in 2007, and the main findings on mortality and cancer incidence were published on 25 March by the British Medical Journal.
The researchers found no significant difference in overall cancer risk between those personnel who took part in the tests and similar personnel who did not. General mortality was slightly higher among the Porton Down veterans than the controls, but was lower in both groups than in the population at large. The authors state that it is not possible to attribute the small excess mortality to chemical exposures at Porton Down.
I welcome the publication of these findings, which fulfil the commitment made by this Government to investigate whether the long-term health of Porton Down veterans was degraded by their participation in the tests.
Empowerment Fund
Statement
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Andrews): My right honourable friend the Secretary of State for Communities and Local Government (Hazel Blears) has made the following Written Ministerial Statement.
Last July, through the empowerment White Paper, I outlined my proposals to support 20 to 25 third sector organisations through the Empowerment Fund. Today, I am pleased to announce to the House the 21 third sector organisations that will receive grants under the Empowerment Fund. The aim of the Empowerment Fund is to provide stable and strategic funding to third sector organisations with national reach and help deliver on key themes within the White Paper.
The third sector organisations are:
Community Voices and Leadership ThemeRoyal Association for Disability and Rehabilitation (RADAR);the Young Foundation; Operation Black Vote; and1 Apr 2009 : Column WS88
The Empowerment Fund will provide £9.25 million over three years paying grants of either £250,000 or £500,000. The security of a three-year fund will help these organisations plan ahead with confidence and they will be expected to show how they make effective use of the financial assistance to expand their work.
This approach was developed in consultation with the relevant policy holders within the Department for Communities and Local Government, other government departments, and the third sector.
Finance Bill
Statement
The Financial Services Secretary to the Treasury (Lord Myners): My right honourable friend the Financial Secretary to the Treasury (Stephen Timms) has made the following Written Ministerial Statement.
I can today announce the implementation of a measure following consultation and two measures to protect revenues.
Modernising tax relief for business expenditure on cars
Following consultation, the Government published draft legislation on 8 December 2008 setting out proposals for new rules for tax relief for business expenditure on cars. With effect from April, the rate of relief will be determined by the car's CO2 emissions, rather than its
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However, following comments received on the published draft legislation a number of changes to it are proposed. These, together with anti-avoidance provisions, are set out in revised legislation published on the HMRC website today.
Avoidance using life insurance policies
Schemes designed to avoid income tax have been identified by HMRC. The schemes purport to create income tax loss relief from offshore life insurance policies that can be set against other taxable income. The Government do not accept that the schemes have the effect sought or that there are any circumstances in which income tax loss relief can arise on life policies. However, to put the position beyond any doubt, legislation will be introduced in the forthcoming Finance Bill that will prevent income tax loss relief from being available from transactions on offshore life policies.
This change, effective from 6 April 2009, will ensure that claims cannot be made for income tax loss relief from offshore life insurance policies relating to the years 2009-10 onwards. Furthermore, it will ensure that tax deductions will not be allowed for the years 2009-10 onwards even if the loss related to a previous year.
The change will also have effect from today to all new offshore life insurance policies. It will also apply to existing offshore policies which on or after today are wholly or partly assigned to the person claiming a deduction, become used as security for a debt, or are varied so as to increase the benefits secured.
A copy of the draft legislation together with a draft explanatory statement will be published shortly on HMRC's website.
Avoidance using artificially created employment losses
The Government have become aware of a further artificial and aggressive avoidance scheme that seeks to abuse tax reliefs available for employment-related losses incurred by employees and former employees.
This scheme relies on deliberate default during the course of a contrived employment. During the course of the employment, the employer will deliberately default in relation to one or more aspects of certain financial arrangements undertaken by the employer. Under the terms of the employment, this will trigger compensation payable by the employer. The employee will be contractually obliged to suffer all or part of the compensation payable by the employer in respect of the default and will then claim relief for this as a loss against other income.
These arrangements are similar to the highly abusive avoidance scheme that the Government acted against with effect from 12 January 2009. The Government do not accept that any of these highly contrived arrangements have the effect that is sought, but will remove any doubt by introducing appropriate legislation in the
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The legislation will not affect genuine cases where tax avoidance arrangements are not involved.
Details are contained in a Technical Note; the note, the draft legislation relating to this announcement and the draft legislation relating to the earlier Statement of 13 January 2009 are published on HMRC's website.
Further Education: Capital Investment
Statement
The Parliamentary Under-Secretary of State, Department for Innovation, Universities and Skills (Lord Young of Norwood Green): Today my right honourable friend the Secretary of State for Innovation, Universities and Skills (John Denham) made the following Written Ministerial Statement.
In 1997 there was no capital budget for further education (FE) colleges and the National Audit Office (NAO) 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 (LSC), 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, 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”.
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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 urgently to 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 which 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.
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Gulf War Illnesses
Statement
The Parliamentary Under-Secretary of State, Ministry of Defence (Baroness Taylor of Bolton): My honourable friend the Parliamentary Under-Secretary of State for Defence (Kevan Jones) has made the following Written Ministerial Statement.
As part of the Government’s continuing commitment to investigate Gulf veterans’ illnesses openly and honestly, data on the mortality of veterans of the 1990-91 Gulf conflict are published regularly. The most recent figures for the period 1 April 1991 to 31 December 2008 are published today as a National Statistic Notice on the Defence Analytical Services and Advice website.
The data for Gulf veterans are compared to those of a control group known as the Era cohort consisting of Armed Forces personnel of a similar profile in terms of age, gender, service, regular/reservists status and rank, who were in service on 1 January 1991 but were not deployed to the Gulf. As in the previous release, the Era group has been adjusted for a small difference in the age-profile of those aged 40 years and over, to ensure appropriate comparisons.
Key points to note in the data are:
there have been 997 deaths among the Gulf veterans and 1,008 in the age-adjusted Era comparison group; andthe 997 deaths among Gulf veterans compare with approximately 1,609 deaths which would have been expected in a similar sized cohort taken from the general population of the UK with the same age and gender profile. This reflects the strong emphasis on fitness when recruiting and retaining service personnel.These statistics continue to confirm that UK veterans of the 1990-1991 Gulf conflict do not suffer an excess of overall mortality compared with service personnel that did not deploy.
The full notice can be viewed at www.dasa.mod.uk.
Health: Drug Tariff Part IX
Statement
The Parliamentary Under-Secretary of State, Department of Health (Lord Darzi of Denham): My honourable friend the Minister of State, Department of Health (Phil Hope) has made the following Written Ministerial Statement.
As honourable Members will be aware, the department has been carrying out a review of the arrangements under part IX of the Drug Tariff for the provision of stoma and urology appliances, and related services, in primary care. This is to advise the House of the outcome of the review.
Throughout phase 2, the department’s key aims have been to:
maintain and, where applicable, improve patient care;1 Apr 2009 : Column WS93
The last consultation regarding the arrangements for the provision of stoma and urology appliances, and related services, in primary care closed in September 2008; a summary of the responses is available on the department’s website at: www.dh.gov.uk/en/Consultations/ Responsestoconsultations/index.htm.
Our proposals have been amended, taking into account consultation responses. An overview of the new arrangements has been placed in the Library. In summary, the new arrangements look to:
define and standardise the services that both dispensing appliance contractors (DACs) and pharmacy contractors provide in the normal course of their business when dispensing Part IX A (catheter), Part IX B and Part IX C appliances. Essential services that must be provided include services such as a repeat prescription service, appropriate advice and a home delivery service—if the patient requests it. Advanced services, which DACs and pharmacy contractors may choose to provide, include stoma appliance customisation and appliance use reviews;require appliance contractors to operate within a similar clinical governance framework to pharmacy contractors; 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
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Health: Integrated Care
Statement
The Parliamentary Under-Secretary of State, Department of Health (Lord Darzi of Denham): My honourable friend the Minister of State, Department of Health (Ben Bradshaw) has made the following Written Ministerial Statement.
Sixteen pilot sites that will test how best to bring health and social care services together in new ways to benefit patients are being announced today.
The pilots have been designed to look beyond traditional health and social care boundaries to explore how services for patients and service users can be improved. They will then assess the benefits of different models of care and identify any best practice that could be used more widely. The pilots will be supported by £4 million funding from the Department of Health.
Each site has developed a model of care to help respond to particular local health need in the community. The health issues being tackled in each pilot include dementia, care for older people, substance misuse, chronic obstructive pulmonary disease (COPD) and end of life care. The models of care involved vary widely; they include partnerships, new systems and care pathways that span primary, community, secondary and social care.
Bournemouth and Poole Teaching Primary Care Trust;Cambridge Assura Limited Liability Partnership;Church View Medical Practice, Sunderland;NHS Cumbria;Durham Dales Integrated Care Organisation;Nene Commissioning Community Interest Company;Newcastle Hospitals NHS Foundation Trust;Cornwall and Isles of Scilly Primary Care Trust;NHS Norfolk and Norfolk County Council;Northumbria Healthcare NHS Foundation Trust;North Cornwall Practice-Based Commissioning Group;Principia—Partners in Health, Nottinghamshire;NHS Tameside and Glossop;Torbay Care Trust;Tower Hamlets Primary Care Trust; andWakefield Integrated Substance Misuse Service.The pilots start today and will run for two years. They will be evaluated over three years against a set of national and local measures, including impact on health outcomes, improved quality of care, service user satisfaction, and effective relationships and systems.
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