Written Statements
Tuesday 8 January 2013
Banks: Business Bank
Statement
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Lord Marland): My right honourable friend the Secretary of State for Business, Innovation and Skills has made the following Statement.
The impact of the financial crisis on the cost and availability of credit is seriously affecting the economy. The Government have already taken action to ease the flow of credit to small and medium-sized businesses including by working with the Bank of England to launch the Funding for Lending Scheme, by putting in place access to finance schemes such as the £1.2 billion Business Finance Partnership and the Seed Enterprise Investment Scheme, and providing additional funding for the Enterprise Finance Guarantee.
However, many good small and medium-sized businesses (SMEs) still struggle to raise finance from their banks. Furthermore, well before the financial crisis Britain suffered from structural failings in finance, in long term credit in particular. Now as the economy recovers, there is a risk that UK businesses lack the support they need to grow.
As set out in the Autumn Statement 2012, the Government therefore plan to deploy an extra £1 billion to create a business bank. We will maximise the bank's impact and reach by exploring joint investment with the private sector and the use of government guarantees. The bank will make wholesale interventions in the business finance market to facilitate the development of a greater diversity of non-bank business finance sources and to tackle other long-standing market gaps. We will also take steps to bring together government finance schemes for small and medium-sized businesses so that they are managed as a single portfolio and ensure businesses are aware of and can access government-backed business advice.
I wish to outline to the House how we will achieve this and what are the key milestones along the way.
We envisage the business bank operating on a commercial basis within a strategic framework set by Ministers. It will be charged with finding ways to fill gaps in the business finance market, based on economic analysis. A number of options are being considered including capital investments and guarantees for long term finance products, as well as a wider range of wholesale funding activities which could become relevant over time. Detailed design of the activities will need to reflect the requirement to ensure our proposals are fully consistent with state aid rules. We plan to start a dialogue with the Commission about our proposals in January.
At the same time, and in order to start acting swiftly, we propose to use £300 million of the new funding to co-invest alongside the private sector in sources of finance that help diversify the business
finance market. These investments will be made under Section 8 of the Industrial Development Act 1982. Further detail of how this funding will be made available will be provided at Budget 2013 after engagement with market participants in the new year.
I am also creating an advisory group, which will comprise independent business and finance experts and advise the Government on the setting up and strategic direction of the new institution. Sir Peter Burt has very kindly agreed to chair this advisory group and additional members will be appointed very shortly. I can also announce today that Keith Morgan has joined the Government to lead the design work for the future business bank. The group will provide advice on:
The activities and specific segments of the market on which different activities of the business bank should focus;The design of existing interventions and how they could best be improved;The detailed design of the new interventions, how to make them most effective, and how to attract private sector capital if desirable;How to ensure better joining up of wider government- funded business advice and support as well as enhanced awareness of and access by businesses to this support;The role of Government in such an organisation, and at what level;The overall implementation plan;The marketing plan for these activities; andThe key roles in terms of design and execution risk for the implementation phase.
We will use their expertise to develop proposals for the bank’s interventions and discuss and where relevant agree these interventions with HMT, the Bank of England, UK regulators and the European Commission.
I will present more detailed proposals on these matters to the House next year.
Copyright
Statement
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Lord Marland): My right honourable friend the Secretary of State for Business, Innovation and Skills has made the following Statement.
Today the Government are publishing the final part of their response to their copyright consultation: “Modernising Copyright: a modern, robust and flexible framework”.
The response sets out government decisions on changes to “copyright exceptions”: freedoms in copyright law that allow third parties to use copyright works for a variety of economically and/or socially valuable purposes without permission from copyright owners.
The Government are committed to achieving strong, sustainable and balanced growth that is shared across the country and between industries. Following the Hargreaves review of intellectual property and growth, and an extensive consultation process, the Government
believe that the copyright framework can be improved to make the UK a better place for consumers and for firms to innovate, in markets which are vital for future growth, without harming the UK’s valuable creative industries.
The Government have considered the responses to the consultation carefully, alongside the views of the Business, Innovation and Skills Select Committee and others. They intend to make changes to widen existing or introduce new exceptions for private copying; parody; education; quotation and news reporting; text & data mining; research & private study; preservation; disabilities; public administration and reporting. These measures take account of what the Government have heard from creative industries about the need to minimise potential adverse impacts of any change.
The Government intend to make these changes via secondary legislation in autumn 2013. Prior to this, the Government will publish the draft regulations for technical review.
The response document will be published on the Business, Innovation and Skills, and Intellectual Property Office websites and a copy will be placed in the House Libraries.
Correction to Commons Written Answer
Statement
The Parliamentary Under-Secretary of State, Department of Health (Earl Howe): My honourable friend the Parliamentary Under-Secretary of State (Daniel Poulter) has made the following Statement.
I regret that the Written Answers given to the honourable Member for Hartlepool (Iain Wright) on 6 November 2012, Official Report column 584w, the right honourable Member for Warley (John Spellar) on 22 October 2012, Official Report column 711w, the right honourable Member for Leigh (Andy Burnham) on 20 February 2012, Official Report column 713w and to the honourable Member for Stalybridge and Hyde (Jonathan Reynolds) on 10 January 2012, Official Report column 120w, contained some incorrect information.
The Written Answers pertained to the cost of exit packages incurred by primary care trusts (PCTs) and the information provided in the original Answers incorrectly included a negative figure for one PCT, due to an error in compiling the figures for the annual report and accounts within the department.
In respect of the Answer given to the honourable Member for Hartlepool (Iain Wright), a table showing the corrected figures is given below.
| Category | 2010-11 | 2011-12 |
| £000s | £000s | |
1. “Other departures” include early retirements (except those due to ill health), voluntary redundancies, Mutually Agreed Resignation Scheme, pay in lieu of notice etc.
2. Voluntary redundancies are not separately identifiable from other departures; therefore, an overall figure for redundancies is not available.
In respect of the Written Answer given to the right honourable Member for Warley (John Spellar), a table showing the corrected figures is given below.
| Category | 2009-10 | 2010-11 |
| £000s | £000s | |
1. “Other departures” include early retirements (except those due to ill health), voluntary redundancies, Mutually Agreed Resignation Scheme, pay in lieu of notice etc.
2. Voluntary redundancies are not separately identifiable from other departures; therefore, an overall figure for redundancies is not available.
In respect of the Written Answer given to the right honourable Member for Leigh (Andy Burnham), the corrected information is as follows.
The total resource cost of exit packages for primary care trust (PCT) staff leaving their organisation in 2010-11 was £172.1 million. A table breaking down this cost for each PCT has been placed in the Library. The total value of £172.1 million includes £60.4 million for compulsory redundancies and £111.7 million for other departures. The figure for other departures includes the cost of both early retirements (excluding those relating to ill-health) and voluntary redundancies. However, it is not possible to separately identify the value of either of these costs from the data collected.
In respect of the Written Answer given to the honourable Member for Stalybridge and Hyde (Jonathan Reynolds) on 10 January 2012, Official Report col 120w, the corrected part of the reply is given below.
Information from the Audited NHS (England) Summarised Accounts for the financial year 2010-11 shows that the total resource cost of staff exit packages for strategic health authorities, primary care trusts and National Health Service trusts in the 2010-11 financial year was £223 million. This figure includes £88 million for compulsory redundancies and £135 million for other departures. The figure for other departures includes early retirements (excluding those because of ill-health). It is not possible to separately identify this cost, or the cost of voluntary redundancies from the data collected.
Crime: Domestic Violence
Statement
The Minister of State, Ministry of Justice (Lord McNally): My right honourable friend the Lord Chancellor and Secretary of State for Justice (Chris Grayling) has made the following Written Ministerial Statement.
On 21 December 2012, I announced that Baroness Helen Newlove has been appointed as the new Commissioner for Victims and Witnesses (“Victims’ Commissioner”).
The role of the Victims’ Commissioner, as set out in the Domestic Violence, Crime and Victims Act 2004, is to promote the interests of victims and witnesses, encourage good practice in their treatment and keep under review the operation of the statutory Victims’ Code.
We are committed to strengthening the voice of victims who too often feel like they are treated as an afterthought in the criminal justice system. The appointment of Baroness Newlove as the new Victims’ Commissioner will ensure that as our strategy to improve services and support for victims and witnesses is implemented, the views of victims are represented.
Department for Communities and Local Government
Statement
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham): My right honourable friend the Secretary of State for Communities and Local Government (Eric Pickles) made the following Written Ministerial Statement on 7 January 2013.
I would like to update honourable Members on the main items of business undertaken by my department since the House rose on 20 December 2012.
Helping hard-working families with council tax
On 1 January, my department highlighted new legislation that takes effect in April 2013 which allows local taxpayers to choose to pay their bill over 12 months rather than 10, if they wish. This new right will make it easier for those on fixed incomes to manage their bills, and would lower the average band D council tax instalment by an average of £24 per month for 10 months.
This builds on the support that the Coalition Government have already announced for local authorities and police and crime commissioners in England to help them freeze council tax for a third year and assist in keeping the cost of living down. The Government have set aside £450 million in the Autumn Statement. Taxpayers living in an average band D home in England could save up to £72 compared to a 5% increase, while the cumulative effect of the three years’ worth of freezes is potentially worth over £200 to band D residents. I hope honourable Members will encourage their local authorities to take up this year’s freeze offer.
Tackling council tax fraud helps reduce bills for law-abiding citizens. I intend to lay and publish this week draft affirmative regulations, including setting out the powers which local authorities will have to combat fraud in the council tax system and to prosecute those who commit criminal acts. These regulations will ensure that local authorities continue to be able to tackle fraud when council tax benefit is replaced by local council tax reduction schemes in April, and are consistent with those that prevent fraud in the welfare benefit system. Reflecting the Coalition Government’s commitment to civil liberties, we have scaled back existing state powers which we believe to be disproportionate.
A fairer and simpler planning system
The Coalition Government believe in fair play, with everyone abiding by the same rules. On 21 December, we launched a consultation on proposals to give councils greater freedom to prevent unauthorised traveller sites and the small minority who abuse planning rules. Under proposals, councils would be given greater freedom to determine whether to use temporary stop notices in relation to caravans that are in breach of planning control, and are used as a person’s main residence. This would be backed up with the potential for fines of up to £20,000 on a summary conviction or an unlimited fine on indictment. Subject to the outcome of the consultation, proposals will allow councils to act quickly to stop unauthorised sites before they become established, saving on the costs of enforcement and preventing long-term harm to the environment and local amenity.
The Coalition Government are committed to making the planning system simpler, more efficient and more effective. On 21 December, my department launched a consultation to consider the recommendations of the external review group on planning practice guidance led by Lord Taylor of Goss Moor, to rationalise the volumes of unwieldy and contradictory advice. The goal is to make practice guidance easier to understand for both practitioners and the public. This does not involve any change to planning policy, which is laid out in the National Planning Policy Framework.
On 27 December, my department outlined our response to the consultation paper on streamlining information requirements for planning applications. This will encourage a more proportionate approach to the information that applicants are required to provide with outline planning applications, reducing administrative costs to both applicants and councils, while ensuring that all interested parties continue to be well informed of the details of any proposed application.
A fairer deal for taxpayers on local government pensions
On 21 December, my department published a consultation seeking responses from interested parties on draft regulations for the new Local Government Pension Scheme to come into force in April 2014 relating to membership, contributions and benefits. This represents a key step in the process of reform that began with the commitment given in the Coalition Government’s programme to review the long term affordability and sustainability of public service pension schemes.
Figures for the last financial year show that the Local Government Pensions Scheme costs £7.5 billion. Employers—i.e. taxpayers—contributed £5.9 billion towards maintaining staff pensions. The cost to the public is equivalent to £320 a year for average band D council tax. Yet, for the first year, the cost of local authority pension taxpayer-funded contributions has actually fallen, and these further reforms will protect taxpayers’ interests while protecting those on low and moderate incomes.
On 21 December, my department wrote to local authorities to make clear that equality impact assessments are not a legal requirement. Indeed, they can be resource
intensive and take staff away from planning and delivering important public services. We also reminded councils that statutory guidance makes clear that councils do not need to undertake unnecessary lifestyle or “diversity” questionnaires of their local residents and suppliers. I will shortly be giving guidance to my department’s arm’s-length bodies on the same issue.
On Boxing Day, the media reported how residents in Stockport, Cheshire East and Manchester were being asked about their sexual preferences when they responded to a consultation on a proposed road improvement. This is a typical example of how the public sector wastes money on pointless and intrusive bureaucracy.
On 20 December, my department launched the new £200 million Build to Rent fund which will boost the construction of new homes specifically for private rent. By financing the construction of rental homes until they are built, let out and managed, the fund will give developers the freedom to build homes specifically for that market with confidence. An expert taskforce will also work to boost investor awareness of the fund and offer practical support to those interested in this new market. The prospectus for the fund has been published on the Homes and Communities Agency’s website.
Over Christmas, Ministers highlighted the help available to those sleeping rough through the new StreetLink hotline and website. StreetLink, run by charities Homeless Link and Broadway with funding from my department, offers a valuable alternative to a cash handout for people sleeping rough. This will support the No Second Night Out initiative as it is extended across the country. In London, where No Second Night Out has been adopted, already 70% of rough sleepers have not spent more than one night on the streets.
On 2 January, my department highlighted new deregulation that will cut red tape and costs for homeowners and businesses alike. Changes are being made to the building regulations regime in England to deliver an even better and more cost-effective way of ensuring our buildings remain safe and sustainable. The changes will deliver savings of around £50 million per year to business and will come into force from April 2013. Changes to remove the requirement to notify simple and low risk electrical works will mean that householders keen to improve their home no longer need to pay £240, or more, to their local council to have simple electrical jobs checked.
I wish to congratulate to all those working in the local government, housing, fire and voluntary and community sector that were recognised in the New Year’s Honours List acknowledging their valued contribution to society.
I have placed in the Library a copy of the associated documents and press notices relating to these announcements.
EU: European Council
Statement
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley): My right honourable friend the Secretary of State for Environment, Food and Rural Affairs has today made the following Statement.
My noble friend Lord De Mauley, Parliamentary Under-Secretary for Resource Management, the Local Environment and Environmental Science, represented the UK at the EU Environment Council in Brussels on 17 December 2012. Paul Wheelhouse (Scottish Minister for Environment and Climate Change) and John Griffiths (Welsh Minister for Environment and Sustainable Development) also attended.
After adopting the list of legislative and non-legislative A items, Environment Ministers adopted council conclusions on “A Blueprint to Safeguard Europe’s Waters”. The UK welcomed the blueprint, praising its focus on implementation rather than new legislation, which is in line with principles of better regulation. Several other member states similarly supported the blueprint’s focus on implementation and greater integration.
Next, the presidency led an exchange of views on “Greening the European Semester”, based on the annual growth survey 2013. Discussion at Environment Council focused on the bottlenecks to achieving Europe 2020 resource efficiency objectives, and member states were asked to give their views as to which measures in the field of resource efficiency and climate action had the biggest potential to contribute to growth and job creation. A broad range of opinions were put forward. The UK made clear that actions needed to reflect the specificities of each member state; that any additional targets would need to be clearly justified; and highlighted our domestic actions to support resource efficiency. The Commission (Hedegaard) summarised the discussion by stating that the debate was timely, as the annual growth survey was increasingly becoming the key tool for setting economic priorities for the year to come. Discussions on the annual growth survey 2013 will take place at various EU level councils, and will inform debate at the spring European Council in March 2013.
Lord de Mauley attended a ministerial lunch, during which the outcomes of the COP18 climate change negotiations which recently took place in Doha were discussed. Member states recognised that overall a good outcome had been achieved at COP18 but, moving forwards, there is still much work to be done.
In the afternoon, an orientation debate on the 7th EU Environment Action Programme (7th EAP) was held. The Commission said that it had been a “difficult birth”, but that the 7th EAP should offer a clear-cut programme and a solid and pragmatic framework for years to come. The Commission said that there were only a few legislative gaps to be filled, and the main focus was on implementation. The tone of the discussion was generally positive. Many member states, including the UK, welcomed the focus on implementation. The UK said that they believed the environmental acquis was largely complete, and that any new proposals for legislation must be based on evidence and supported
by a robust impact assessment. In that vein, the UK felt that the 7th EAP impact assessment was not quite fit for purpose, and stated that the UK would carry out further work to assess more accurately the ramifications of the programme. The specific concerns of other member states were wide-ranging, but several member states voiced a particular concern about proposed targets to reduce landfill.
Under environmental AOB items, a progress report was offered on the Programme for the Environment and Climate Action (LIFE), and the presidency provided information on environmental quality standards in the field of water policy (priority substances). The presidency also gave information on the assessment of the effects of certain public and private projects on the environment (the EIA Directive). Belgium, Spain and the Czech Republic all intervened to air their concerns about the proposed measures, after which the presidency curtailed the discussion, highlighting that there would be further opportunities to discuss the proposal during the Irish presidency.
In the afternoon, several climate change items were discussed under “any other business”. The Emissions Trading Scheme appeared on the agenda in the context of aviation, the recently published carbon market report and the Commission’s proposed measure for changing the auctioning profile for ETS allowances (known as “backloading”). With regards to backloading, Poland presented a paper, based on Commission data, which appeared to show the negative financial impact that backloading would have for certain member states. The Commission responded by questioning the validity of their analysis and was supported by the Netherlands. A proposal to define the modalities for reaching the 2020 targets to reduce CO2 emissions from cars and vans was also presented. Most member states who intervened supported the proposal’s ambition in terms of target levels, and most supported looking at longer-term targets post-2020. The presidency also presented information on proposals for accounting rules and action plans on greenhouse gas emissions and removals relating from activities related to land use, land use change and forestry (LULUCF). Finally, the Irish presented their priorities for the forthcoming Irish Presidency.
The UK also held short bilateral meetings with Croatia, France, the Netherlands and Lithuania.
EU: Transport Council
Statement
Earl Attlee: My honourable friend the Parliamentary Under-Secretary of State for Transport (Stephen Hammond) has made the following Ministerial Statement.
I attended the last Transport Council of the Cypriot Presidency in Brussels on Thursday 20 December.
The Council agreed a general approach on the proposal for a directive of the European Parliament and the council on periodic road worthiness tests for motor vehicles and their trailers and repealing directive 2009/40/EC. Following widespread criticism of the Commission’s proposal at the October Transport Council, the UK has been an active and leading negotiator at
the working group meetings chaired by the presidency. The presidency subsequently presented a compromise text that reflected the reality of member states’ road safety testing practices. We supported the change of the legal form of the proposal from a (directly applicable) regulation to a directive (which gives member states some flexibility in transposition).
I welcomed the many improvements in the presidency’s text which had substantially reduced the cost implications to a manageable level and indicated that the UK could accept the presidency’s text. I made clear that as negotiations begin with the European Parliament, we would seek to provide Members of the European Parliament with as much information as possible to explain why the changes to the original proposal were both justified and necessary.
The presidency provided progress reports on two proposals.
The first was the proposal for a regulation of the European Parliament and of the council establishing the Connecting Europe Facility. This regulation will provide the legal basis for funding of trans-European transport, energy and telecoms networks for 2014-2020. The text will not be finalised until the budget figures for 2014-2020 have been agreed in discussions on the multi-annual financial framework (MFF).
The second was the proposal for a regulation of the European Parliament and of the council on the implementation and exploitation of European satellite navigation systems. The council’s position on this regulation, which will provide the legal basis for taking forward the Galileo satellite navigation programme from 2014, was agreed earlier in the year. However, technical discussions with the European Parliament since then have not led to much progress. The dossier will be passed to the Irish Presidency to conclude negotiations with the European Parliament once the budget for Galileo under the MFF has been confirmed.
The council adopted conclusions on the communication on “EU’s External Aviation Policy—Addressing Future Challenges”. The Commission welcomed the conclusions, highlighting in particular the worsening aviation relationship with Russia, especially Russia’s ongoing refusal to implement its commitments on Siberian overflight charges. The Commissioner called for collective action at EU level and said he would be producing a road map in the new year with a view to pursuing an EU/Russia comprehensive agreement in due course.
The council also adopted a proposal for a decision on the comprehensive aviation agreement between the EU and its member states and Israel. The original plan had been for the agreement to be signed in the margins of the council, but due to internal political reasons, Israel was not able to sign at this time. The Commission hoped that Israel would be in a position to sign this agreement shortly after national elections in the Spring 2013.
A high level co-operation agreement with Eurocontrol (European Organisation for the Safety of Air Navigation) was signed in the margins of the council.
Under any other business, the Commission provided an update on recent discussions at the International Civil Aviation Organisation to agree a global approach
to tackling emissions from aviation. The Commission clarified that it was proposing a temporary derogation on enforcement of the Aviation Emissions Trading System (ETS) relating to international flights and hoped the European Parliament and the council would approve this through a decision in the first quarter of next year.
Also under any other business, France tabled a room document which called for a discussion to be held in the International Maritime Organization on the 2015 deadline for implementing the new requirements on the sulphur content of marine fuels. A number of member states intervened and stressed that they would be keen to discuss practical issues, such as the cost of low sulphur fuels to businesses.
The Cleaner Power for Transport Package which was due to be discussed as an AOB item was taken off the agenda.
Keith Brown MSP, Scottish Minister for Transport and Veterans also attended.
Flooding
Statement
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley): My right honourable friend the Secretary of State for Environment Food and Rural Affairs has today made the following Statement.
The period leading up to Christmas and in to the new year has again seen flooding across the country. This was particularly unfortunate in that it impacted on people and families during the festive season and I would like to offer my sincere sympathies to those who were affected.
The recent floods which began mid way through December affected much of the country. Following on from previous flooding in November and a very wet summer, the December rainfall quickly led to further flooding. Although rain is not unusual at this time of year we have experienced a prolonged period of heavier than usual rainfall during the year. 2012 was the wettest on record in England with some areas experiencing over 131% of average levels. This heavy rain led to flooding from rivers, groundwaters and surface water.
The December floods affected many parts of the country with 532 properties flooded, most notably in the south-west with 379 properties impacted. Nearly 22,000 properties were protected from flooding and over 135,000 properties were sent a warning about the potential risk of flooding giving people essential time to protect their homes and possessions. In total over 1.1 million people are signed up to receive Environment Agency flood warnings.
I would like to pay tribute to the work of the Environment Agency, fire, ambulance, police and other rescue services, local authorities, the voluntary sector and local communities who contributed to the flood response. This is particularly relevant for those who put aside their traditional Christmas and new year celebrations to help others and to them I offer my sincere thanks.
I saw for myself some of the magnificent work that results from this multi-agency response when I visited Upton-upon-Severn to see new flood defence schemes successfully keeping high river flows at bay. I also met some of the people who managed the response at the local incident room in Tewkesbury. Last Thursday the Under-Secretary of State, my honourable friend Richard Benyon visited Dorset and Wiltshire to gain a better understanding of the continuing groundwater flooding challenges and to meet some of the people who contributed to our operational response in the region.
As river levels fall, saturated ground continues to lead to potential groundwater flooding problems. The Environment Agency’s teams will be monitoring groundwater levels across England and Wales for many weeks to come and advising local authorities which lead on groundwater flooding. As the rain eases over the coming days slower responding rivers such as the Thames, Severn, Nene and the Ouse in Yorkshire, will continue to rise in their lower reaches. The Environment Agency will be monitoring these closely.
The recent heavy rain caused major disruption to the rail network in different parts of the UK, particularly in the south-west of England. Major flooding resulted in certain sections of the network being closed and this was compounded by landslips resulting in severe damage to tracks and signalling equipment. Where possible train operating companies either re-routed services or provided alternative means of transport, although this was not always possible due to local road conditions.
On the roads there was some initial minor disruption to the strategic road network but the major impact was on local roads under the responsibility of local authorities.
In addition to the impacts on homes and businesses around the country, the current floods have been keenly felt among farmers. The Somerset levels and moors have been inundated for a large proportion of the year and continue to be under water. The Lower Hampshire Avon has been at flood risk since early July. In the north-east, there has been extensive and prolonged flooding of agricultural land in the Vale of York. I recognise the difficulties that this situation presents to farmers and offer my sincere sympathies to those who have been affected. It is important to note that investment in flood defence schemes has protected agricultural land. For example, 59 projects completed during 2011-12 provided an improved level of flood protection to more than 74,000 hectares of agricultural land. We recognise that concerns have been raised about clearance of water channels in rural areas and that the department is working with the Environment Agency to examine the issue. My department and its agencies will continue to do all that we can to issue warnings and to moderate the impacts of floods. We will assess the long term impact of the recent saturation of agricultural land.
The Government recognise the adverse impacts that flooding has had on communities, both urban and rural, across the country throughout 2012. Continued government investment means that during 2012 we have been able to protect a total of over 200,000 properties from flooding. We now expect to exceed our goal to
better protect 145,000 homes from flooding and coastal erosion by March 2015. The Autumn Statement announced an extra £120 million for flood defences in England during this spending period allowing us to protect up to a further 60,000 properties.
We remain committed to ongoing discussions with the ABI, on behalf of its members, and others about what replaces the statement of principles agreement. It would not be appropriate to comment in detail on their progress. A range of options are on the table and discussions have been very constructive. No final decisions have been taken.
We are keen to improve on the statement of principles. We need a solution that ensures affordable insurance bills for those at flood risk but does not place unsustainable costs on wider policyholders and the taxpayer. The Secretary of State for Communities and Local Government is responsible for the Bellwin scheme of emergency financial assistance to help local authorities with the immediate costs associated with protecting life and properties in their areas. His department stands ready to support all councils that have suffered from the devastating floods including financial support through the Bellwin Scheme and we are monitoring the situation carefully.
High river levels, groundwater flooding, standing water and surface water run-off continue to make conditions difficult in different parts of England. I encourage people to continue to take care and think about their own safety and that of friends, relatives and neighbours.
These floods, coming as they have after a long series of previous floods, have been a tragedy for those affected, and I want to conclude by paying tribute to the wonderful community spirit that I, the Under-Secretary of State for Environment, Food and Rural Affairs, my honourable friend the Member for Newbury, and Members across the House have seen around the country in their local communities. I shall, of course, keep the House informed of any further significant developments.
Government Car and Dispatch Agency
Statement
Earl Attlee: My Honourable friend the Parliamentary Under-Secretary of State for Transport (Stephen Hammond) has made the following Ministerial Statement.
I am publishing today details of the charges incurred by departments for the use of official government cars provided to Ministers by the Government Car and Despatch Agency (GCDA) during the year 1 April 2011 to 31 March 2012. This is in line with previous annual statements.
The charges recorded in the Statement show a continuing reduction in the amount spent on official cars for Ministers. Costs to departments have seen a 49 per cent reduction in the latest figures when compared to those of the previous year and a 72 per cent reduction when compared to the figures for April 2009 to March 2010:
| 2009-10 | April 2010 | May 2010–March 2011 | 2011-12 |
Official cars are an essential service for Ministers in order that they can carry out their work effectively but we are committed to continuing our focus on the cost of this service.
The charges recorded in the Statement also reflect the progress made on restructuring the service to maximise value for money while improving standards of service delivery. This programme of reform includes the development of a new service model which will offer up further cost savings on the provision of the service. The new service model was announced in February 2012 and introduced in April 2012. The associated charges will be reflected in next years’ WMS.
The figures for 2011-2012 are:
| Department | Allocated Cars1 | Allocated Cost | Ministerial Car Pool | Total Cost |
1 Number of Allocated cars as of the 31st of March 2012. One allocated car service terminated mid-year
Where Ministers were provided with a protected service because of their need for greater security, the costs related to this service are not included as this is not paid for directly by departments but centrally by the Home Office.
Ministers may use other means of transport or other secure providers of car services, so the official figures provided by GCDA for the Statement may not reflect the total spend by departments on cars used for ministerial travel.
These figures do not cover the full costs of delivering the car service. These are set out annually in the GCDA annual report and accounts.
Government: Coalition Government
Statement
Lord Wallace of Saltaire: My right honourable friend the Minister for Government Policy (Oliver Letwin) made the following Written Ministerial Statement on Monday 7 January.
Today, at the halfway point in the Parliament, the Government are publishing a mid-term document.
Two and a half years ago, the coalition came together and formed a Government at a time of significant economic danger. The programme for government, which was published in May 2010, described the decisions and policies that the Government believed were required to address the fiscal deficit, to rebalance the economy, to improve the public services, to build a better society and to reinforce Britain’s position in the world.
This mid-term review highlights the key actions of the coalition to date and illustrates the progress that has been made in taking forward the principal policies contained within the programme for government.
On all of their key aims the coalition Government remain steadfast and united.
As well as describing what has been done since the start of the Parliament, the review document also sets out the coalition’s priorities for the remainder of the Parliament—with the twin aims of enabling the UK to compete in the global race at a time of increasing international competition and of enabling all of our citizens to fulfil their aspirations.
The Government will, above all, prioritise reducing the deficit, rebalancing the economy, and reforming welfare and education. But the review identifies a large number of policies in other areas that will be implemented during the second half of the Parliament—including setting out some future policy directions.
I am placing a copy of the review document in the Libraries of both Houses.
Licensing: Entertainment
Statement
Viscount Younger of Leckie: On Monday 7 January 2013, my right honourable friend the Minister for Sport and Tourism (Hugh Robertson MP) made the following Statement.
In late 2011, the Department for Culture, Media and Sport launched a consultation into reforming the regime that regulates many public and charitable entertainment activities.
The consultation was launched after many years of calls to reduce unnecessary regulation arising from the 2003 Licensing Act for low risk activities that hamper cultural and community creativity, restrict charities and prevent small businesses from diversifying.
These activities, and the many of the organisations and institutions that host them, play a pivotal role in our communities. We are determined to ensure that needless bureaucracy does not restrict these kinds of positive contribution to society. This is why we announced our intention to act in the coalition programme for government, the Growth Review, the Red Tape Challenge, and in the departmental business plan for the Department for Culture, Media and Sport. The consultation received a very full response—around 1350 responses—and the department has examined every comment carefully. We are extremely grateful to everyone who responded.
This consultation has played a full part in shaping future policy. Its key findings were that there was considerable support for deregulation, but that certain protections needed to be retained, including an 11 pm end time for deregulated performance, and, in most circumstances, a lower audience cap than was originally proposed.
The new policy for entertainment is outlined below:
Performance of plays: no longer requires a licence between 08:00-23:00 for audiences of up to 500 people
Performance of dance: no longer requires a licence between 08:00-23:00 for audiences of up to 500 people
Indoor sport: no longer requires a licence from 08:00-23:00 for audiences of up to 1,000 people.
Live music has already been partially deregulated under the Live Music Act 2012, which came into force on 1 October 2012, with the following effect:
unamplified live music deregulated between 08:00-23:00 with no restrictions on audiences size; andamplified live music deregulated between 08:00-23:00 in premises licensed for sale and supply of alcohol, and in certain workplaces.
We will, additionally, retain the key protections of the Live Music Act 2012, but raise the permitted audience ceiling from 200 to 500, in on-licensed premises and workplaces in line with the most other deregulated activities
Recorded music: in line with live music deregulation, regulation for recorded music (mainly discos and DJs) will be suspended between 08:00-23:00 in premises licensed for the sale and supply of alcohol. This measure, like live music deregulation, is subject to controls from the local licence review process.
We also intend to exempt from most forms of entertainment licensing:
Community venues (including local authority)SchoolsNurseries HospitalsCircuses
Film exhibition: we will consult in the coming months on detailed proposals to partially deregulate community film exhibition while maintaining important age restriction protections for children.
We will bring the measures into effect as the parliamentary timetable allows.
I am arranging for a summary of responses, and the Government’s full response, to be made available on the DCMS website and be deposited in the Libraries of both Houses.
I will also place the impact assessment on the website and in the Libraries of both Houses in due course.
NHS: South London Healthcare NHS Trust
Statement
The Parliamentary Under-Secretary of State, Department of Health (Earl Howe): My right honourable friend the Secretary of State for Health (Mr Jeremy Hunt) has made the following Written Ministerial Statement.
I wish to inform the House that the trust special administrator appointed to South London Healthcare NHS Trust provided me with his final report on 7 January 2013. It makes recommendations to me in relation to securing a sustainable future for services provided by that organisation.
Details about the appointment of the administrator, Matthew Kershaw, were given in a Written Ministerial Statement issued on 12 July 2012, Official Report, cols 47-48ws.
The report was provided to me in accordance with Chapter 5A of the National Health Service Act 2006, as introduced by the Health Act 2009, and has today been laid before Parliament and made publicly available at:
www.dh.gov.uk/health/2013/01/south-london-healthcare/
Copies are available to honourable Members from the Vote Office and to noble Lords from the Printed Paper Office.
I would like to thank Matthew Kershaw for the work he has carried out in producing his report. This is the first time the trust special administrator’s regime has been used since the last Government introduced the provisions which were enacted in the Health Act 2009. In accordance with the legislation, in addition to producing his recommendations on the future of the trust, Mr Kershaw has also been responsible for managing South London Healthcare NHS Trust and maintaining services for patients while the board is suspended pending the outcome of the regime. I do not underestimate the demands this has placed on him.
In triggering this regime, the Government’s priority was to ensure that patients continue to receive high-quality, sustainable NHS services. At the time Mr Kershaw was appointed last July, South London Healthcare NHS Trust was overspending by £1 million a week. In the last financial year, the trust had a deficit at over £65 million, the largest in the country. Left to itself, the trust’s very severe financial position would have continued in a downward spiral of continuing deficits and ultimately threaten the quality of care for patients across south-east London.
The challenges facing South London Healthcare NHS Trust are complex and long standing. To date, it has not proved possible to ensure that South London Healthcare NHS Trust is able to secure a sustainable future for its services within its existing configuration and organisational form. The Government’s priority is to ensure the delivery of a long-term, viable solution for services provided by the trust if it cannot be made sustainable. All responses to my predecessor’s statutory consultation on whether to trigger the regime, including from South London Healthcare NHS Trust itself, stated that a solution for the trust cannot be viewed in isolation from broader service provision within south-east London.
In accordance with my statutory duty, I will consider the trust special administrator’s recommendations carefully and make a final decision that can secure sustainable services for the people of south-east London by 1 February. In considering the recommendations, I will examine particularly:
whether the recommendations are likely to provide a sustainable long term financial position which will secure high quality services in the local area for the future; and
whether the recommendations have regard to the Government’s four key tests for local service reconfiguration. These are support from GP commissioners, strengthened public and patient engagement, clarity on the clinical evidence base and support for patient choice.
Ultimately, my priority is to ensure that all NHS hospitals live within their budgets and achieve the best quality care, best patient outcomes and best patient experience for all their NHS patients.
I will inform the House of my decision as soon as reasonably possible afterwards.
Ports
Statement
Earl Attlee: My right honourable friend the Minister of State for Transport (Simon Burns) has made the following Ministerial Statement.
In January 2010 Dover Harbour Board (DHB) submitted a voluntary transfer scheme in accordance with Section 9 of the Ports Act 1991, which allows a relevant port authority to voluntarily submit a transfer scheme, which, if confirmed by the Secretary of State for Transport, would allow the port to be privatised. This was followed by a statutory consultation period on Dover’s transfer scheme that ended on 25 March 2010.
On 16 May 2011 the then Secretary of State for Transport, the right honourable Member for Runnymede and Weybridge (Philip Hammond), launched a consultation on the criteria that the Government consider relevant when considering the appropriateness of the sale of a major trust port. The revised criteria—Secretary of State for Transport’s Guidance Note concerning procedure for the sale of trust ports—was published on 3 August 2011.
In response to the revised criteria, DHB submitted more information in June 2012, and there was a further six-week period for representations which ended on 27 July 2012.
I took over as decision Minister from the right honourable Member for Chipping Barnet (Theresa Villiers) in September 2012 and wish to announce the decision, on behalf of the Secretary of State, to the House today.
I have decided not to confirm DHB’s transfer scheme. I reached my conclusion taking into account the published policy. I concluded that the transfer scheme proposed would not ensure a sufficient level of enduring community participation in the port. I also concluded that so far as the board made the application in order to be able to obtain the additional finance necessary to undertake the proposed redevelopment of the Western Docks, there were other options available to secure that redevelopment.
The full decision letter will be available on the department’s website shortly after this statement.
My honourable friend the Parliamentary Under-Secretary of State, the honourable Member for Wimbledon (Stephen Hammond) as Minister for Maritime, will now discuss with DHB their plans for the future of the port.
Railways: Franchises
Statement
Earl Attlee: My right honourable friend the Secretary of State for Transport (Patrick McLoughlin) has made the following Ministerial Statement.
I would today like to give an update on the situation in relation to franchised train operator London Midland (LM).
Passengers who use LM trains may be aware that the operator has been experiencing difficulties recently, with a number of services being cancelled due to a shortage of driving staff.
This situation has caused inconvenience and disruption, particularly to passengers in the West Midlands, many of whom have expressed their dissatisfaction to me. I very much share their disappointment that they have not had the reliable service that they rightly expect.
However, although the recent levels of performance have been extremely disappointing, I am pleased to say that the measures that LM has put in place are beginning to work.
LM has implemented increases to driver efficiency to enable drivers to operate an increased number of routes during existing shifts, improved driver training processes, provided additional incentives for drivers to work overtime and put in place new measures that allow for drivers to cover shifts on other parts of the network where there are shortages.
This is in addition to the ongoing training programme that LM is undertaking to ensure that new drivers enter productive service as quickly as possible.
However, LM’s performance has been of such a level that it is now in breach of its contractual obligations. We have made London Midland aware that it must now take action to compensate passengers for the disruption caused. We have, therefore, agreed with LM that it will provide a substantial package of passenger benefits by way of compensation for the inconvenience that has been caused.
LM has agreed to spend an additional £4 million over the remainder of the franchise to put in place measures to ensure that these problems do not happen again. In addition, the package of passenger benefits includes the issue of five free rail day passes to London Midland season ticket holders, with an expected value of up to £3.5 million. We have also agreed that London Midland will invest a further £2.25 million in infrastructure improvement projects. We have required London Midland to discuss with Centro, the West Midlands Passenger Transport Executive, how the majority of this money will be invested for the benefit of those passengers who have experienced the worst disruption.
As a result of this consultation, LM has agreed that most of this money should be directed towards measures such as improvements to safety and security at stations and improving the reliability and efficiency of LM trains.
Lastly, we have also agreed with LM that it must make available an additional 500,000 advance tickets on key routes on the LM network, giving a net benefit
of around £1.9 million to passengers who will be able to take advantage of these cheaper fares over the next two years of the franchise.
I hope that LM will be able to remain the operator of this franchise for the remainder of its contract—to September 2015. But London Midland will continue to work to challenging performance benchmarks for the remainder of the franchise, and we will take further action (including ending the franchise early and retendering it if appropriate) in the event of any recurrence of performance problems.
In addition to the package of passenger benefits, we have agreed to revise the profile of performance benchmarks for the next year to include additional measures that can penalise LM financially in the event of further poor performance. We have also agreed financial measures to ensure that the reduction in revenue as a result of the free and discounted tickets is borne by LM, and not by the taxpayer.
I am confident that this package, on balance, represents a good deal for passengers and taxpayers, and sends a message to the industry that this level of cancellations is unsatisfactory. I hope that LM can now put this period behind it, and continue to operate a good service for its passengers for the remainder of its franchise.
Youth Justice Board
Statement
The Minister of State, Ministry of Justice (Lord McNally): My honourable friend the Parliamentary Under-Secretary of State for Justice (Jeremy Wright) has made the following Written Ministerial Statement.
In March 2011 the Government responded to the Public Administration Select Committee report Smaller Government: Shrinking the Quango state setting out the coalition’s plans for reforming the public bodies sector. It includes the requirement to undertake triennial reviews of executive and advisory non-departmental public bodies (NDPBs).
The Youth Justice Board is an executive non-departmental public body of the Ministry of Justice established in 2000 by the Crime and Disorder Act 1998.
Its principal aims are: monitoring the operation of the youth justice system in England and Wales; advising the Secretary of State for Justice on the operation of the youth justice system, national standards, and on how to prevent offending by children and young people; making grants to youth offending teams and other organisations to support development and delivery of good practice; placing young people in custody; and providing secure accommodation for both remanded and sentenced children and young persons.
To deliver the coalition Government’s commitment to transparency and accountability, the Youth Justice Board will be subject to a triennial review. As part of the triennial review process, the Ministry of Justice, as the sponsoring department, has today launched a consultation which will last until 15 February 2013 inviting views. The review will be conducted fully in line with Cabinet Office guidance Guidance on Reviews of Non Departmental Public Bodies and will consider the following:
the continuing need for the Youth Justice Board to carry out each of its functions in their current form; and where it is agreed that the individual functions should remain, to review the control and governance arrangements in place to ensure that the public body is complying with recognised principles of good corporate governance.
In conducting the triennial review, officials will be engaging with a range of stakeholders of the Youth Justice Board. In addition, the triennial review will take into account evidence collated during previous reviews where still relevant.
In 2011, the Government decided not to pursue abolition of the Youth Justice Board as part of the Public Bodies Act 2011, restating their commitment to maintaining a distinct focus on the needs of children and young people in the youth justice system. It is against this backdrop that this triennial review is taking place.
The final report and findings will be laid in this House.