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Meanwhile, the free swimming scheme launched last year produced more than 10 million free swims in its first six months; our target of offering five hours sport per week to under-16s will be on offer in every school sports partnership in England by September 2010;

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more than 10,000 schools around the country have registered with the 2012 Get Set education programme; and a total of five million people have now participated in London 2012 Games-related projects.

I have today placed in the Libraries of both Houses copies of a memorandum of understanding between the Government and the Olympic Lottery Distributor (OLD). Under this MoU the Government will ensure that the OLD receives a proportionate share, as laid down in the grant memorandum between OLD and ODA, of any income received in relation to the Olympic Village or other assets funded by OLD. This includes receipts from the disposal of the Olympic Village, which should repay the cashflow funding OLD expects to contribute to the village. This commitment applies whether such income is received by the ODA or another public body, or the rights and associated income are retained by the ODA or transferred to another public body.

I should like to commend this report to the Members of both Houses and thank them for their continued interest in and support of the London 2012 Olympics.

Copies of the annual report 2010 are available at www.culture.gov.uk and will be deposited in the Libraries of both Houses.

Search and Rescue Helicopter Service

Statement

The Minister for International Defence and Security (Baroness Taylor of Bolton): My honourable friend the Parliamentary Under-Secretary of State for Defence (Quentin Davies) has made the following Written Ministerial Statement.

I am delighted to announce, together with the Parliamentary Under-Secretary of State at the Department for Transport, Paul Clark, that the Ministry of Defence and the Department for Transport have chosen the Soteria Consortium as the preferred bidder for the joint search and rescue helicopter project following a competition under the private finance initiative.

The Government are committed to sustaining the effectiveness and high standards of the United Kingdom search and rescue helicopter service, currently provided by the Ministry of Defence and the Maritime and Coastguard Agency. The new service, which is anticipated to begin with a phased introduction from 2012, will replace the existing Ministry of Defence helicopters at the end of their service life and the Maritime and Coastguard Agency service contract when it comes up for renewal.

The new service will bring together the Ministry of Defence and Maritime and Coastguard Agency search and rescue helicopter provision into one highly effective and harmonised service under one single contract. The entire fleet of modern helicopters, some 30 per cent faster than the current Sea Kings, will be able to attend low-level overland night-time incidents, will have forward-looking infra-red equipment and be fitted with fully integrated de-icing equipment for much improved performance in severe winter conditions, thus providing the UK with an excellent SAR helicopter service with the ability to save lives well into the future.

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The service will continue to be managed jointly by the Ministry of Defence and the Maritime and Coastguard Agency and will retain a proportion of military aircrew alongside civilian aircrew trained to the same high standards. We will now be working with the Soteria Consortium to finalise the contract, which we expect to award later in 2010.

Taxation (International and other Provisions) Bill

Statement

The Financial Services Secretary to the Treasury (Lord Myners): Section 19 of the Human Rights Act 1998 requires the Minister in charge of a Bill in either House of Parliament to make a Statement, before Second Reading, about the compatibility of the provisions of the Bill with the convention rights (as defined in Section 1 of that Act).

I am the Minister in charge of the Taxation (International and Other Provisions) Bill in the House of Lords.

I have made the following Statement under Section 19(1) (a) of the Human Rights Act 1998:

In my view the provisions of the Taxation (International and Other Provisions) Bill are compatible with the convention rights.

Taxation: Corporate Taxation

Statement

The Financial Services Secretary to the Treasury (Lord Myners): The Government plan to introduce legislation to clarify the corporation tax treatment of manufactured payments received by companies in the course of certain sale and repurchase "repo" transactions. The amendment will ensure that manufactured payments must be taken into account in calculating profits chargeable to corporation tax if they are taken into account in computing accounting profits.

The clarification follows a recent challenge to the repo legislation in Chapter 10 of Part 6 of the Corporation Tax Act 2009 "the repo legislation" that manufactured payments received by companies may not have to be taken into account for tax purposes if the securities to which they relate are not recognised on the companies' balance sheets.

That challenge could result in companies seeking to deduct for tax purposes manufactured payments that have contributed to their accounting profits. By excluding

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the payments, the companies' taxable profits could be much lower than their actual profits. The Exchequer consequences could be very significant.

To ensure that there is no possibility of adverse consequences for the Exchequer, the proposed legislation will apply from 1 October 2007-the date the repo legislation was introduced-and will ensure that existing practice is followed and the previous general understanding of the tax position is maintained. The legislation cannot result in any company being charged to tax on more than its actual profits but prevents the possibility of relief for artificial losses.

A copy of the draft legislation together with draft Explanatory Notes and full background material will be published today on HM Revenue and Customs' (HMRC's) website.

Taxation: Double Taxation

Statement

The Financial Services Secretary to the Treasury (Lord Myners): My right honourable friend the Financial Secretary to the Treasury has today made the following Written Ministerial Statement.

A new protocol to the double taxation agreement with Georgia was signed on 3 February 2010. The text of the protocol has been deposited in the Libraries of both Houses and will be made available on HM Revenue and Customs' website. The text will be scheduled to a draft Order in Council and laid before the House of Commons in due course.

United Kingdom Listing Authority

Statement

The Financial Services Secretary to the Treasury (Lord Myners): My honourable friend the Exchequer Secretary to the Treasury has today made the following Written Ministerial Statement.

The Treasury has today published the UKLA's annual objectives for 2010. The Financial Services Authority, acting in its role as the competent authority for listing, is referred to as the United Kingdom Listing Authority (UKLA). Copies of the document have been deposited in the Libraries of the House.

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