Written Statements

Wednesday 12th February 2014 Written Statements

Wednesday 12 February 2014

Charity Commission (Contingent Liability)

Wednesday 12th February 2014 Written Statements

[The Minister of State, Cabinet Office (Mr Nick Hurd)]

It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Department concerned to present to Parliament a minute giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the minute, except in cases of special urgency.

Last year the Charity Commission matched the anonymised personal data of all trustees and charity correspondents registered with the Charity Commission against the CIFAS national fraud database on a pilot basis for which CIFAS membership was not necessary. The level of resulting matches to fraud risk were of concern and the board of the Charity Commission directed that it become a member of CIFAS to carry out a further pilot to develop clear information to: inform on the need for any action against individuals; support the development of a fraud risk profile for the sector; provide a means of checking new trustees and correspondents for linkage to fraud and right to remain in the UK. The commission proposes piloting this by the end of March 2014, by which time it will need to have joined CIFAS. The Charity Commission proposes continuing its membership without break after the first year should the pilot prove successful.

The minute therefore confirms the Charity Commission plans to enter into CIFAS membership shortly and that it will need to sign an indemnity with CIFAS.

A public authority may become (and subject to the rules of CIFAS, remain) a member of CIFAS provided that it is empowered and authorised (among other requisites) to execute the required deed of indemnity. The Charity Commission must provide a written indemnity, irrevocably indemnifying CIFAS, its chairman and directors, members, affiliates, participating agencies, participating users and employees of CIFAS, on or prior to joining CIFAS, against claims resulting from any breach of statutory duty or breach of the Data Protection Act 1998 on the part of the Charity Commission in connection with its membership of CIFAS.

The Charity Commission must subscribe to the CIFAS group libel insurance scheme, which underpins the CIFAS indemnity arrangements. The upper limit of indemnity for the insurance scheme is currently limited to £5 million —plus an excess agreed annually, currently £5,000. The deed of indemnity is, however, unlimited and therefore covers amounts claimed in excess of £5 million or, where a claim results from the provision of inaccurate data deemed avoidable, the entire value of the claim.

The departmental minute notifies Parliament of the Charity Commission’s intention to execute this deed of indemnity and subscribe to the CIFAS group libel insurance scheme. The notification to Parliament is proposed to last for three years from commencement of CIFAS membership. The Charity Commission shall, of course, provide further notification if the undertaking is likely to change within this period. The situation will be reviewed after three years and, if the Charity Commission intends to maintain its CIFAS membership, Parliament will be notified accordingly.

The Charity Commission does not consider the risk of the indemnity being called upon to be significant. The Charity Commission will only share data where it is lawful to do so and in accordance with the provisions of the Data Protection and Human Rights Acts. Maintaining accurate and up-to-date information will limit the chance of incorrect information being passed to CIFAS. All information will be shared in a secure manner in line with Cabinet Office guidelines on transferring data. Further, a CIFAS member that receives a CIFAS warning from the system is not allowed to automatically refuse an application or to close a facility because of the warning. They are required to make further enquiries to confirm personal identification details before making a decision. If a liability is called, provision for any payment will be sought through the normal estimates procedure.

The Treasury has approved this proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before Parliament, a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in Parliament, final approval to proceed with incurring the liability will be withheld pending an examination of the objection.

I am arranging for the minute to be deposited in the Library of the House.

Double Taxation Conventions (Japan, Iceland, Zambia)

Wednesday 12th February 2014 Written Statements

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

A protocol to the double taxation convention with Japan and a new double taxation convention with Iceland were signed on 17 December 2013. A new double taxation convention with Zambia was signed on 4 February 2014.

The text of the protocol and the conventions have been deposited in the Libraries of both Houses and made available on HM Revenue and Customs’ website. The texts of each will be scheduled to a draft Order in Council and laid before the House of Commons in due course.

Floods Update

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Communities and Local Government (Mr Eric Pickles)]

I would like to update the House on further actions the Government are taking to provide definitive and ongoing support to those affected by the current severe weather and flooding.

Since the east coast surge in early December, over 5,600 properties have been flooded across England, including 921 since late January. In all, over 1.3 million properties have been protected since early December. But for those whose lives continue to be disrupted, the Government are taking exceptional action for exceptional circumstances.

Response

The Government’s emergency committee, COBR, continues to meet daily to provide a strategic, co-ordinated response to events so every bit of support is provided to allow people to get back to their normal lives as soon as possible. Officials from my Department are present as Government liaison officers at the multi-agency command centres in all affected areas, ensuring we have good two-way information flows on what Government support is needed and what we can provide. A total of 1,650 military personnel remain at high readiness to do whatever is needed to support residents and businesses in affected communities. My right hon. Friend the Prime Minister has made clear our response will not stop there.

I am grateful to the Chief Fire Officers Association who are procuring 1,000 carbon monoxide detectors to distribute to households in affected areas and who may be using petrol or diesel pumps to rid their homes of flood water.

Supporting local firms in challenging times

The substantial flooding in the Somerset levels and elsewhere will take time to subside. But I realise that immediate works need to take place. The Government need to help affected businesses to get through this difficult period. The Prime Minister has announced that the Government will be offering relief from business rates for three months funded by central Government, and will publish more detail shortly.

HMRC will set up a new hotline for those who have been affected by flooding and could face difficulties in meeting their liabilities. HMRC will look to offer three months’ additional time to pay—including VAT, pay-as-you-earn and corporation tax.

Long-term preparedness for homes and business

The Prime Minister also announced that the Government will offer a £5,000 “repair and renew” grant for affected homeowners and businesses. This will support repairs which improve a property’s ability to withstand future flooding. The Government will consult with local authorities about how this can be delivered, and publish details on eligibility in due course.

I would like to express my continued appreciation to local authorities, the armed forces, fire and rescue authorities, and all the other members of local resilience forums including the voluntary and community sector and the tireless work of the Environment Agency’s on-the-ground staff and innumerable others for the work they are doing round the clock to respond to the impacts of the floods and protect affected communities.

I will provide further updates to the House in due course.

Local Government Finance (Rural Services)

Wednesday 12th February 2014 Written Statements

[The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)]

The final local government finance settlement for 2014-15 was laid before the House on 5 February 2014. Local government needs to help pay off the deficit left by the Labour Government, while continuing to wield substantial total spending power, with an overall reduction of just 2.9% next year. The settlement marks the second year of local business rates retention and we have again tried to be fair to all parts of the country.

The settlement also confirmed £9.5 million for rural services delivery funding for the most rural local authorities to support them in transforming services and promoting efficiencies. During the settlement process it was apparent that concern remained over the fairness of the funding that rural councils receive. We have listened to these representations and have accepted that there is more that can be done. We are therefore providing a further £2 million to the most rural councils through a section 31 grant in 2014-15. This grant will be distributed on the same basis as that used to allocate the rural services delivery funding. The allocation of the grant is available at:

https://www.gov.uk/government/collections/final-local-government-finance-settlement-england-2014-to-2015

All councils should now work to support local enterprise, using the local flexibilities and freedoms that we have put in place, to build more homes and back local jobs so that they can then use the rewards of growth to invest in local services and lower taxes.

Aircraft Carrier Alliance (Appointment)

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

On 6 November 2013, Official Report, column 251, I made a statement to the House on the renegotiation of the aircraft carrier contract and the wider decisions made by BAE Systems on the future of UK warship building capability.

In that statement, I announced changes to the management and governance of the Aircraft Carrier Alliance (ACA)—who are delivering the Queen Elizabeth class aircraft carriers—that would better reflect the collaborative approach to project management that the revised cost-sharing arrangements will induce and to improve the delivery of the programme.

Today the ACA, with the Ministry of Defence’s agreement, will announce the appointment of Sir Peter Gershon as the new, non-executive chairman of the alliance management board, the top-level management board of the ACA. This appointment is part of the management changes mentioned last November to bring greater focus to the delivery of these iconic ships.

Sir Peter brings a wealth of experience gained in large and complex international organisations and his appointment will help to increase the coherence and co-ordination between the MOD and Industry as the programme moves forward.

Votes A Annual Estimate 2014-15

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

The Ministry of Defence Votes A estimate 2014-15 will be laid before the House today as HC 1077. This outlines the maximum number of personnel to be maintained for each service in the armed forces during financial year 2014-15.

Votes A Excess Votes

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

The Ministry of Defence votes A Excess votes will be laid before the House today as HC 1075. This declares an excess of personnel for years 2007-08 to 2012-13, and requests an increase in the Votes A limits for these years.

Votes A Supplementary Votes 2013-14

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Defence (Mr Philip Hammond)]

The Ministry of Defence Votes A supplementary estimate 2013-14 will be laid before the House today as HC 1078. This outlines the increased maximum numbers of personnel to be maintained for service in the naval service, the reserve naval and marine forces, and the reserve land forces during financial year 2013-14.

Central African Republic

Wednesday 12th February 2014 Written Statements

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mark Simmonds)]

I wish to update the House on the situation in Central African Republic (CAR) and UK efforts to help resolve the conflict.

CAR witnessed increasing levels of violence throughout December 2013 and early January 2014 with reports of up to 1,000 civilian deaths in and around the capital Bangui. This was largely due to the growth in reprisal attacks by local self-defence (“anti-Balaka”) groups and rebels associated with the Seleka coalition who overthrew President Bozize in 2013. The rapid deployment of African Union (AU) and French troops has led to some improvements in security, and the nomination of Catherine Samba-Panza as President is a positive step in the transition to a stable Government. But there are still disturbing levels of violence. The UN estimates that 838,000 people remain displaced across the country.

The UK sees improved security and humanitarian access, and a strong and inclusive political process, as key priorities. The Department for International Development has pledged a total of £15 million in humanitarian aid, making the UK one of the largest bilateral donors to CAR. UK support will allow the Red Cross, UN and international aid agencies to step up their relief programmes, providing emergency health care, clean water and logistical support to hundreds of thousands of people, including vulnerable women and children.

In response to the worsening security situation, the Government co-sponsored UN Security Council resolution (UNSCR) 2127 on 5 December 2013 which mandated the deployment of the Africa-led international support mission to CAR (MISCA). Improved security remains the vital first component to any sustained improvement to conditions in CAR. The UK is providing bilateral support to the AU through the provision of £2 million to the AU to cover immediate MISCA shortfalls, including food, fuel and water. We also make a contribution, through EU funds, to the mission’s logistical support. I have continued to demonstrate the UK’s political support for MISCA including in discussions with a number of African Foreign Ministers during the AU summit in January 2014; the Foreign Secretary has done likewise, including with his European Union counterparts.

We continue to engage closely with France on the Central African Republic with in-depth discussions during the UK-France summit on 31 January 2014. The Prime Minister has offered further logistical support to France. This support includes logistical lifts and air-to-air refuelling and the provision of subject matter expertise on remotely piloted air systems.

We have also worked with EU partners to ensure that the EU continues to provide support for MISCA where possible. The EU is providing €50 million to MISCA in 2014, and on 10 February 2014 adopted a Council decision to establish a military operation to help to achieve a secure environment in the Bangui area. The Government believe that such an operation could make a real difference to the security situation on the ground. Operational planning continues, and the UK is providing a military officer to assist with this. The UK will not, however, be providing combat troops. A Council decision to launch the operation is still required and remains subject to UK parliamentary scrutiny.

In November 2013, a UN Secretary-General report recognised that conditions in CAR were not right for the deployment of a UN peacekeeping mission. We recognise that once the political and security conditions allow, there may be a need for MISCA to transform into a United Nations peacekeeping operation. The Government therefore support the UN’s contingency preparations and planning.

The UK co-sponsored a further UNSCR (2134) on CAR which was adopted on 28 January 2014. This authorised the EU military operation in line with the EU Foreign Affairs Council conclusions of 20 January 2014, set up a sanctions regime to target political spoilers, and strengthened the mandate of the UN’s integrated peacebuilding office in CAR: BINUCA.

We believe that BINUCA will have a pivotal role to play in energising and co-ordinating the ongoing political process alongside the Economic Community of Central African States and the AU. Progress on the political front will be vital if peace and security are to return to CAR in the long term. The Government will continue to engage closely with their international partners on the situation in the Central African Republic. Our response on the security, political, and humanitarian sides will all remain under review, and we will look for opportunities where the UK can add value to the international response.

Gifting of Equipment (Lebanese Armed Forces)

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

Contagion from the worsening crisis in Syria is having a direct effect on its neighbours, particularly in areas adjacent to Lebanon’s north and north-east border. There are daily incidents of violence between non-state armed actors and the Syrian armed forces, and by non-state actors supporting both the Syrian regime (Hezbollah), and the opposition (Free Syrian Army), culminating in near border and cross-border direct and indirect fire.

The UK is committed to Lebanon’s stability and supporting the Lebanese armed forces (LAF) to minimise contagion from the Syrian conflict.

As part of this approach, the UK is assisting the land border regiments of the Lebanese armed forces to develop effective and sustainable land border management capabilities which operate in line with agreed international human rights standards.

On 27 June 2013 I laid a departmental minute before the House setting out our intention to gift a package of UK assistance worth £10 million to increase the capacity of the two LAF land border regiments to fulfil their border management role, in support of broader LAF aims to disrupt and hinder the movement and operations of armed actors party to the conflict in Syria, and interdict elements who are seeking to destabilise Lebanon, and who may subsequently pose a threat to UK interests.

During the course of project implementation, the need for additional items and manpower has been identified. These needs are critical to maximising the impact of the project and ensuring long-term sustainability of the capabilities being provided. The identification of these additional critical requirements was only possible once the project team had deployed, trust established, and the full extent of the LAF’s needs exposed to the subject matter experts.

The departmental minute laid today sets out in detail our proposal to gift an additional £1.984 million of protection, mobility, observation and communications equipment to the land border regiments of the Lebanese armed forces. The cost of the proposed gift will be met by the Government’s conflict pool programme.

The table below illustrates the contents of the gift.

Cyprus

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)]

I would like to provide the House with an update on efforts to reach a comprehensive settlement in Cyprus.

On 11 February, in their capacity as the leaders of the Greek Cypriot and Turkish Cypriot communities respectively, President Anastasiades and Dr Eroglu met under United Nations auspices. The joint declaration they adopted is an important step forward, and provides a real opportunity to secure a lasting and comprehensive settlement. That document makes clear the two leaders’ determination to resume structured negotiations leading to a united Cyprus, and their intention to reach a settlement as soon as possible. The declaration includes a range of agreements both on the conduct of talks and on the shape of the future federation.

The joint declaration provides a very good basis for productive talks. The achievement of an agreed set of parameters gives clear direction to the negotiators and the leaders over the coming months. Many of the broad principles for a united Cyprus have now been agreed, and I trust that the parties will now negotiate in good faith on that basis until a final settlement has been reached.

Detailed negotiations will now begin in earnest. With continued co-operation and pragmatism, and a sustained commitment to the vision of a reunified Cyprus, the two communities will be able to agree a solution which they will approve by referendum.

The United Kingdom fully supports the Cypriots as they work for a solution to the division which has affected their island for too long. A settlement will pay dividends for them, for the region, and for Europe. We have been active, in close co-ordination with the Americans and our other partners, in helping to achieve this breakthrough. My right hon. Friend the Minister for Europe has had contact with leaders of both communities, including during his recent visit to Cyprus. The Prime Minister was pleased to welcome President Anastasiades to London last month. I have had useful discussions with the President about the need to achieve a settlement, most recently last week. I have also regularly discussed Cyprus with the Turkish Foreign Minister, including twice in the past week. Our diplomatic network has of course been actively engaged in support of a settlement.

I would like to assure the House that our support, as a long-standing friend of Cyprus, will continue as talks progress. I will keep the House informed of significant developments.

Supplementary Estimate 2013-14

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

Subject to parliamentary approval of any supplementary estimate, the Northern Ireland Executive departmental expenditure limit (DEL), net of depreciation, is increased by £186,539,000 from £10,630,679,000 to £10,817,218,000.

Within the total DEL change, the impact on resources and capital is set out in the following table:

Supplementary Estimate 2013-14

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Scotland (Mr Alistair Carmichael)]

Subject to parliamentary approval of the necessary supplementary estimate the Scottish Government’s DEL net of depreciation and impairments will be increased by £218,114,000 from £28,304,169,000 to £28,522,283,000. Within the total DEL change, the impact on resources and capital is set out in the following table:

Supplementary Estimate 2013-14

Wednesday 12th February 2014 Written Statements

[The Secretary of State for Wales (Mr David Jones)]

Subject to parliamentary approval of any necessary supplementary estimate, the Welsh Government’s departmental expenditure limit (DEL) net of ring-fenced depreciation and impairments will be increased by £105,082,000 from £15,009,464,000 to £15,114,546,000.

The following changes have been made to the Welsh Government’s departmental expenditure limit:

Devolved Administration Budget Exchange addition of £84,181,000 (£71,900,000 resource, £11,081,000 ring-fenced depreciation and £1,200,000 capital);

Addition of £ 1,450,000 in respect of the Coastal Communities Fund (resource);

A claim on the Reserve of £326,450,000 for Student Loans impairments;

Addition of £575,000 following the 2013 Autumn Statement - Capping Rail Fares at RPI (resource);

A budget transfer from the Department for Education of £22,123,000 for Teacher Training (£168,000 resource, £21,955,000 capital);

A budget transfer from the Ministry of Justice in respect of the Administrative Justice Tribunal Council of £42,000 (resource); and

A budget transfer from DCMS in respect of Broadband UK of £7,792,000 (capital).

Within the total departmental expenditure limit (DEL) changes, the impact is set out in the following tables:

Workplace Pensions

Wednesday 12th February 2014 Written Statements

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Integral to the single-tier reforms is the closure of the state second pension. Contracting out of the state second pension for defined benefit schemes—giving up entitlement in return for a broadly similar occupational pension and payment of lower national insurance (NI) rate for employer and employee—will therefore come to an end. All employees will pay the same rate of national insurance and become entitled to state pension in the same way. The state pension system will be significantly simpler as a result.

The Government’s objectives for managing the end of contracting out are to minimise the impacts on employers, schemes and individuals, ensuring that the administrative processes of ending contracting out are as smooth and as simple as possible; to ensure amounts built up in schemes to 2016 continue to be paid; and to ensure that the sustainability of defined benefit pension schemes is not undermined. The Government are allowing private sector employers who face paying an increased rate of national insurance to make limited changes to their pension scheme rules to recoup some or all of the additional costs they face subject to the will of Parliament.

There is a small group of individuals (approximately 60,000) employed in some formerly nationalised industries (rail including Transport for London, electricity, coal, nuclear waste and decommissioning), where the employers and trustees are limited in their ability to change scheme rules by legislation made during privatisation.

On 18 January 2013, the Government published a public consultation “Abolition of contracting out—consultation on a statutory override for Protected Persons Regulations”. The consultation invited views from stakeholders as to whether or not these employers should be permitted to use the statutory override to change their pension scheme rules for employees covered by the protected persons legislation. The consultation ran until 14 March 2013 and attracted 145 responses.

We had to consider the best and fairest course of action in an area where the arguments are both finely balanced and highly polarised. The Government have decided that it should honour the promises that were made at the time of privatisation and which, in many cases, have been affirmed by Government Ministers subsequently. The Government think it is reasonable that issues arising from the end of contracting out for this small number of workers should be resolved through negotiation. Therefore the Government propose that employers should not be allowed to use the statutory override to alter their pension schemes in relation to members with protected person status.

We intend to table an amendment to the Pensions Bill for debate at Lords Report stage to ensure the statutory override cannot be applied in respect of scheme members with protected person status.

The full response and the related impact assessment will be published later today and these will be available on: https://www.gov.uk/government/consultations/possible -statutory-override-for-protected-persons-regulations.

I will place a copy of the Government response and the impact assessment in the Library of the House of Commons.