Big Business Backs New Studio Schools

The Parliamentary Information Office has been monitoring progress in Government policy relating to education, particularly relating to the plurality of our system and continues to report on changes as they occur

Education Secretary Michael Gove announced last week that he had approved the opening of 15 new Studio Schools – backed by big employers including Hilton Hotels, Michelin and Aston Villa Football Club.

The new schools are due to open in 2013 and 2014. By September 2013 thirty Studio Schools are expected to be open.

Studio Schools are set up with the backing of employers, and are a key part of the Government's drive to ensure the education system gives school leavers the skills that business needs to grow and prosper.

They offer academic and vocational qualifications but teach them in a practical way. Study is combined with work placements with local and national employers involved in the school.

Along with University Technical Colleges, Studio Schools will increase choice for parents and pupils in communities across the country, help raise standards in vocational education and ensure young people have the skills that employers demand.

Education Secretary Michael Gove said:

“Studio Schools benefit both business and young people – they are a brilliant way for employers to become involved in helping give young people what they need to get good jobs. They are aimed at children who learn in more practical ways and offer good qualifications alongside the kind of skills employers want.

“Studio Schools teach a rigorous academic and vocational curriculum in a practical way. They equip young people with the qualifications and skills to help companies prosper, and offer paid work experience.

“It is fantastic that so many successful employers are getting behind the Studio School movement.”
The projects approved today include:

• The Darwen Aldridge Enterprise Studio in Blackburn, where Darwen will specialise in business administration, retail, ICT and leisure. It is led by the Aldridge Foundation, sponsors of existing academies, who will work with employers including Capita, Crown Paints, Twin Valley Homes and European Electronique to deliver a curriculum focused on entrepreneurship and tailored to local skills needs.
• The Southampton Studio School, proposed by Southampton City College, will specialise in Marine and Cruise industries, a major local employer. The school will offer students the opportunity to follow a range of pathways including apprenticeships and HE targeted at local skills gaps via a project based curriculum and work placements developed with the involvement of employers and other local partners, including Business Solent, Meacher’s Global Logistics, Royal Yachting Association and Southampton University Hospital NHS Trust.
• The Kajan Hospitality and Catering Studio, which has been proposed by Kajan Women’s Enterprise, a social enterprise that works with adults, children and young people in the Birmingham area. The school will specialise in cuisine and culinary skills with a focus on Caribbean catering. Partner employers include Aston Villa Football Club, Hilton Hotels and National Express.

David Frost CBE, chair of the Studio Schools trust and former Director General of the British Chambers of Commerce, said:

“I am delighted that the Government has approved another 15 Studio Schools, and that interest is continuing to grow as we expand our network of Studio Schools across England.

“Studio Schools are playing a vital role in equipping young people with the skills and experience that they need to succeed in a competitive jobs market, through combining mainstream qualifications with real experience of the world of work.

“Employers are keen to help prepare young people for the workplace, and Studio Schools allow them to get involved in all aspects of school life – from designing the curriculum and delivering masterclasses, to providing paid work placements and mentoring students.

“With enterprise and entrepreneurialism at the core, many Studio Schools will run their own social enterprises, and students will run their own businesses, therefore helping to strengthen the economy and community in their local area.

“I look forward to working with the 15 new Studio Schools as they prepare to open.”
The 12 new Studio Schools yet to open but already approved include:

• The Fulham Enterprise Studio in Hammersmith and Fulham, west London. This project involves the BBC, Virgin Media, Fulham FC and Age UK.
• The Stoke Studio College in Stoke-on-Trent, which has links with employers in the construction industry including Kier.
• The Da Vinci Studio School of Science and Engineering in Stevenage, Hertfordshire, which will offer students the opportunity to access a curriculum based on science, technology, engineering and maths, backed by multi-national employers.

Studio Schools offer a varied curriculum for children from age 14, but have a strong academic core:

• All will offer GCSEs in English, maths and science and other GCSEs and vocational qualifications which are recognised by employers and universities.
• The majority of the new Studio Schools will offer students the opportunity to achieve the English Baccalaureate (EBacc).
• Studio Schools also offer other qualifications, such as A levels, Higher Diplomas or BTECs.
• They differ from other schools in the way they deliver these qualifications, to ensure that young people are developing the skills that local employers are looking for:
• All subjects are taught through projects, often designed with employers.
• They typically operate longer days and outside standard school terms – giving pupils a good understanding of a working day, and the importance of good attendance and punctuality in business.
• Along with their studies pupils carry out work placements for four hours a week, with employers who work with the school. After age 16 this increases to two days a week and pupils are paid for this work.
• Each pupil has a ‘personal coach', which seeks to replicate the role of a supportive line manager in the workplace. Coaches also help students get the most out of the curriculum and their work placements.

For many pupils and their parents, the opportunity to combine studying for qualifications with developing skills that will give them the edge in the competitive jobs market will be very attractive.

For other students, the opportunity to gain qualifications through this new approach will mean they are more engaged and perform better than in a more conventional school.

Employers report that they are struggling to find the skills they are looking for in school leavers. In the most recent CBI employer survey (May 2010), more than two thirds of employers (70 per cent) wanted to see the new Government make the employability skills of young people its top education priority.

Studio Schools are designed to address the concern by employers that some school leavers do not have the skills to join the workforce. They are for 14 to 19 year olds, and teach an academic and vocational curriculum. Each has input from businesses, who shape what pupils learn and offer work experience. School days run on office hours, and holidays are shorter to reflect the working environment. By studying in this way, and by working with employers from an early age, students learn vital practical skills like punctuality, and good communication and behaviour in the workplace.

The Studio Schools already approved to open in September 2012 or 2013 are:

• Bradford International Food and Travel Studio School, Bradford
• Da Vinci Studio School of Science and Engineering, Hertfordshire
• Stoke Studio College, Stoke-on-Trent
• Fulham Enterprise Studio, Hammersmith and Fulham
• Hull Studio School, Hull
• Midland Studio College, Leicestershire
• Hyndburn Studio School, Lancashire
• The LeAF Studio School, Bournemouth
• Ockendon Studio School, Thurrock
• Parkside Studio School, Hillingdon
• Tendring Studio School, Essex
• The Studio, Liverpool.

This wave of Studio Schools has input from hundreds of local and national employers. Some schools will be located alongside existing maintained schools or academies, and others will be separate academies.

The first two Studio Schools opened in September 2010 in Luton and Huddersfield. By September 2013 the Department for Education expects 30 Studio Schools to be open.

The Parliamentary Information Office will continue to report on the proposed changes as we go through the months ahead.

Uk Progress Towards A Sustainable Future

The Parliamentary Information Office is currently gathering news items for major features on sustainable energy and climate change in the next edition and will be monitoring progress following the  Rio+20 conference “towards a greener future”

The UK’s progress towards sustainable long-term economic growth and social wellbeing will be easier for people to track under new plans announced by Environment Secretary Caroline Spelman today.

Defra has launched a consultation on a new set of Sustainable Development Indicators (SDIs) providing an overview of the UK’s progress towards a more sustainable economy, society, and environment.

The indicators will make it easier for people to monitor if the UK is developing in a sustainable way and help Government see where more work needs to be done. Updates will be published annually with a scorecard showing whether progress is in the right direction.

Environment Secretary Caroline Spelman said:

“We want to help our economy, our communities and the environment to grow and flourish in a sustainable way for the benefit of future generations. We have put sustainability at the heart of everything that the Government does, and these new indicators will help us take stock of our progress and give the public the means to chart our success.

“At Rio+20 we successfully argued for the need for countries to look beyond their economic performance as a measure of progress. These indicators along with the measures of wellbeing underline our own commitment to going beyond GDP to measure the health and wealth of the UK.”

More than 40,000 people – including parliamentarians, mayors, UN officials, chief executive officers and civil society leaders – attended Rio+20 from 20-22 June. The event followed on from the Earth Summit in 1992, also held in Rio de Janeiro, during which countries adopted Agenda 21 – a blueprint to rethink economic growth, advance social equity and ensure environmental protection.

Deputy Prime Minister Nick Clegg, who led the UK delegation, set out the UK’s ambition to build on the Rio+20 agreement. Addressing the final plenary, he said:

“This week we have agreed to set Sustainable Development Goals. I want to see progress in agreeing these within the post-2015 development framework, so that – as at the original Rio conference – the environment and development are again part of a coherent whole. I would like to think that the ideas we have promoted here – governments, civil society, consumers and business working together and concepts like the green economy and natural capital – will be central to the way we all behave.

“We need to turn words into action. We need to work together to change behaviours, to change all our mindsets and put our world on a more sustainable footing. That’s why the UK Environment Secretary and I have been using the unique platform that Rio provides to talk to fellow leaders from around the world about how we turn these ideas into reality.”

Assessments on our use of natural resources, and the skills and knowledge we possess, are amongst the new measurements proposed. Twelve headline measures are supported by 25 supplementary indicators.

The revised Sustainable Development Indicators will be used alongside the national wellbeing measures developed by the Office for National Statistics, and work on valuations of our natural resources, to provide a wide set of measures to view how society is progressing. Taken together, these measures demonstrate the UK’s leading role in championing the need to move beyond GDP as the sole measure of progress, which received international recognition at Rio+20.

Previous SDIs have been widely used outside of Government by academics, NGOs and businesses. This consultation will give these groups the opportunity to give us their views and feedback on the new proposed SDIs.

The 12 headline indicators are economic prosperity, long term unemployment, poverty, knowledge and skills, healthy life expectancy, social capital, social mobility in adulthood, housing provision, greenhouse gas emissions, natural resource use, wildlife and biodiversity, and water availability.

The indicators proposed in the consultation document relate predominantly to England. However in some cases, where it more sensible to do so, a UK measure will be used.

The proposed indicators are not binding on the other countries in the UK, which have their own approaches to Sustainable Development.

The Parliamentary Information Office will continue to report on environmental issues and their impact on the UK as we go through the months ahead.

Lobbying: Access And Influence In Whitehall

Over this and previous administrations, the Parliamentary Information Office of the Parliamentary Yearbook is, with constitutional pundits generally, following closely the proposed regulation of lobbyists in Westminster

In January 2009 the House of Commons Public administration Select Committee published its report Lobbying: Access and influence in Whitehall. The report was the first by a parliamentary committee into the lobbying of government since 1991.

Lobbying is publicly associated with the activities of consultancies on behalf of their various clients. But it is also carried out by other kinds of professional representative, such as lawyers, as well as in-house by a vast array of organisations with an interest in public policy and decisions. These range from corporations to trade associations, to charities, to grassroots campaigners.

Lobbying should be — and often is — a force for good. But there is a genuine issue of concern, widely shared and reflected in measures of public trust, that there is an inside track, largely drawn from the corporate world, who wield privileged access and disproportionate influence. Because lobbying generally takes place in private, it is difficult to find out how justified concerns in this area are. This is why there have been demands for greater transparency and why lobbying has been regulated in a number of jurisdictions, generally through registers of lobbyists and lobbying activity.

The Committee proposed that the ethics of the activities of lobbyists should be overseen and regulated by a rigorous and effective single body with robust input from outside the industry.

They proposed that there should be a register of lobbying activity provided for in statute, independently managed and enforced, to include information provided by both lobbyists and those being lobbied, information which should largely be in their hands already.

In its Response, the Government accepted that a "single and credible" regime of lobbying regulation was needed. It stated that its preference was for a system of voluntary self-regulation and that it would keep the industry's progress under review.

The Government accepted at the time that a system of regulation will require a register similar to that proposed in the Select Committee report. However it did not address the conclusion that such a register would have to be statutory to be effective.

Then the Coalition's Programme for Government published in May 2010, contained a commitment to "regulate lobbying through introducing a statutory register of lobbyists and ensuring greater transparency". The proposals in the Government’s consultation paper, Introducing a Statutory Register of Lobbyists, focused the register on those who undertake lobbying activities on behalf of a third party client.

In a report published last Friday however, the Political and Constitutional Reform Select Committee calls on the Government to scrap its plans to introduce a statutory register of lobbyists.

The Committee says that under the Government’s proposals, a lobbyist who worked in house for a large company such as News International, or Tesco, would not be required to register, however a 'one-man band' lobbyist would be required to register, name their clients, and pay for the privilege.

The Committee has seen no evidence to suggest that third party lobbyists are a particular problem within the lobbying community, indeed the Government’s own records of ministerial meetings suggest that third party lobbyists make up less than 1% of all meetings with Ministers. The report argues that the proposals single out third party lobbyists in an attempt to create a narrow focus for a register that will meet a Coalition pledge, but do little to improve transparency about lobbying.

The Committee recommends that the Government scraps its plans to introduce a statutory register of third party lobbyists, and instead introduce regulation to cover all those who lobby professionally, in a paid role, including those who lobby on behalf, of charities, trade unions, and think tanks.

The Committee recognises that regardless of whether the Government chooses to implement a statutory register, there is much that Government can do to improve transparency about who is lobbying whom. The Committee specifically recommends the Government:

• publish information about ministerial meetings no more than a month after the month in which the meeting occurred(some Departments take up to 8 months to publish meeting details)
• improve the level of detail in meeting disclosures, so that the actual topic of a meeting is disclosed, rather than obscure terms like ‘general discussion'
• publish, where applicable, the company or charity number of any organisation that meets with Ministers or officials, so that the identity of the organisation can be properly verified
• standardize the format of meeting data, with a view to publishing all ministerial and official meetings on one website, rather than on many different Government websites

Graham Allen MP, Chair of the Committee, said:

"The Government proposals target third party lobbyists, yet would produce little more than the current regime of voluntary regulation, without even a statutory code of conduct to regulate behaviour. The UK Public Affairs Council warned that such an approach could even reduce regulation of the lobbying industry.

“The difficulties around this issue were illustrated by the strong views expressed by different Committee members during the course of the inquiry. On the one hand, Paul Flynn was of the opinion that multiplying the scope of the proposals beyond major lobbying companies could lead to resistance to change, burden charities with unnecessary costs and limit the scope for reforms, and he warned that experience in Canada and the EU had shown that lobbyists could find loopholes in a system of medium regulation. He also felt that it would be unwise to miss the opportunity for a thorough strong reform rather than choose the half-way solution of trying to traverse a chasm with two leaps.

“On the other hand, Simon Hart was of the opinion that it was not clear that there was widespread public concern about lobbying and that no statutory register would be better than what the Government currently proposes.

“However, it is to the great credit of Members that the Committee agreed the recommendations in the final report."

The Parliamentary Information Office of the Parliamentary Year book will watch the ongoing debate with interest and report on further news as it happens.

Growth Boosting Railway Upgrade

Recently the Parliamentary Information Office of the Parliamentary Yearbook has been reporting on the Government’s plans for railway upgrades including plans for High Speed 2. Improvements to our transport infrastructure will form part of a major feature in the next edition of the publication

More than £9 billion of growth-boosting railway upgrades across England and Wales – representing faster journey times, more reliable services and capacity for 140,000 extra daily commutes by train – have been announced by Transport Secretary Justine Greening.

The full £9.4bn programme of improvements to the rail network published yesterday will meet the needs of intercity passengers, commuters and freight up to the end of this decade while the Government continues to work on High Speed 2 to deliver rail capacity for the British economy in the decades to come.

This “High Level Output Specification” programme for 2014-2019 will be discussed at today’s meeting of the Cabinet which the Prime Minister and Deputy Prime Minister will hold outside London.

Crossrail, Thameslink, and electrification between London and Cardiff, Manchester to Liverpool and Preston, and across the Pennines, are among £5.2bn of projects already committed to during 2014-2019. New schemes totalling £4.2bn unveiled today include:

• Upgrades to stations and tracks creating enough capacity around cities for an additional 140,000 daily rail commutes at peak times. In addition to Crossrail and Thameslink, announced previously, today’s enhancements – such as the £350m lengthening of platforms at London Waterloo station – will provide capacity for 120,000 more daily commutes in and out of London and 20,100 extra daily commutes across Birmingham, Leeds, Manchester and other cities.
• Faster journeys and more train capacity from £240m of improvements along the East Coast Main Line from the North East down through Yorkshire, Lincolnshire and Cambridgeshire to London.
• The creation of a high-capacity “electric spine” running from Yorkshire and the West Midlands to South Coast ports allowing more reliable electric trains to cut journey times and boost capacity for passengers and freight. This comprises: an £800m electrification and upgrade from Sheffield – through Nottingham, Derby and Leicester – to Bedford, completing the full electrification of the Midland Main Line out of London St Pancras; and electrification of the lines from Nuneaton and Bedford to Oxford, Reading, Basingstoke and Southampton.
• The landmark decision to take electric rail beyond Cardiff to Swansea, completing the full electrification of the Great Western Main Line out of London Paddington at a total cost of more than £600m, and electrifying the Welsh Valley lines, including Ebbw Vale, Maesteg and the Vale of Glamorgan. These will give two-thirds of the Welsh population access to new fleets of electric trains helping to generate Welsh jobs and growth by slashing journey times and boosting passenger and freight capacity.
• Completion in full of the “Northern Hub” cluster of rail enhancements with the approval of £322m of outstanding track and capacity upgrades across Manchester city centre, Manchester Airport and across to Liverpool. These are in addition to £477m of Northern Hub schemes already approved across the North of England such as electrification of the North Trans Pennine route between York and Manchester.
• A new £500m rail link between the Great Western Main Line and Heathrow allowing direct services to the airport for passengers from the West Country, the Thames Valley and Wales.

The HLOS package will be funded in part from fare rises already announced in 2010 and also from the substantial efficiency savings which projects like electrification will have on the long term operating costs of the railways.

Transport Secretary Justine Greening said:

“Investment on this scale, in every region of the country, shows how this coalition government is focused on delivering an affordable, reliable and faster railway network that drives jobs and growth.

“These plans to increase capacity and shorten journey times on intercity, commuter and freight services are, alongside our plans for high speed rail, absolutely key to securing our country’s prosperity in the decades ahead.”

The investment was also applauded by the Prime Minister, Deputy Prime Minister and Chancellor of the Exchequer.

Prime Minister David Cameron said:

”From Crossrail, high speed rail and now the billions of pounds of investment we are announcing today, this government is committed to taking the long term decisions to deliver growth and jobs.

“In what is the biggest modernisation of our railways since the Victorian era this investment will mean faster journeys, more seats, better access to stations, greater freight links and a truly world class rail network.”

Deputy Prime Minister Nick Clegg added:

”This is the biggest expansion in railways in over 150 years, with more than £9bn of investment across the country.

“Whilst we inherited a deficit greater than any in our nation’s peacetime history, we knew that we had to give the country the boost it needs, to build great railways and make journeys better for the millions of hard working people who use the train every day.

“The ‘Electric Spine’ will make a significant difference for passengers linking London, the Midlands and Yorkshire in a much more efficient rail line, connecting the South and North more effectively than ever before.

“As someone who cares deeply about the environment, the opportunity to dramatically expand rail, a greener form of transport than aviation or road is very exciting indeed. This investment will help people to choose trains over cars, reduce carbon emissions and provide a rail system that is faster, more reliable and greener.”

And Chancellor of the Exchequer George Osborne said:

“I am pleased that the Northern Hub will be funded in full as part of the Government’s plans, which is a significant boost for the major towns and cities of the North, helping to rebalance the UK economy and enabling growth and regeneration throughout the regions.

“This Government is making more funds available to invest in rail projects than at any time since the Victorian era, and shows that the Government is committed to delivering on its promises to support investment in public infrastructure that will support economic growth.”

We shall be adding to the article as there are further developments and any changes to the plans will be reflected in the content. The full report will be published in print and online in the next edition of the Parliamentary Year book.

This was submitted by the Parliamentary Information Office. For more information visit Parliamentary Information Office.

Solar Energy Feed-In Tariffs

Earlier this year the Parliamentary Information Office of the Parliamentary Yearbook reported on the Government’s plans for detailed consultations with industry and consumers over the planned changes to the feed-in tariff scheme for solar energy. This will form part of a major feature on environment, sustainable energy and climate change in the next edition

October 2008 Feed-in tariffs in the United Kingdom were first announced in October 2008 by Ed Miliband, then Secretary of State for Energy and Climate Change. He presented details of the scheme, which began in early April 2010.

March 2011 The coalition government announced that support for large-scale photovoltaic installations (greater than 50 KW) would be cut. This was in response to European speculators lining up to establish huge solar farms in the West Country, which would have absorbed disproportionate amounts of the fund.

June 2011 The Department for Energy and Climate Change confirmed that Feed-in Tariffs would be cut for solar PV systems above 50 KW after 1st Aug, 2011. Many were disappointed with the decision of DECC, especially after long term consultations. In October 2011 DECC announced dramatic cuts of around 55% to feed in tariff rates, with additional reductions for community or group schemes. The cuts were to be effective from 12 December 2011, with a consultation exercise to end on 23 December 2011. This was successfully challenged in the high court by an application for judicial review, jointly made by the environmental pressure group Friends of the Earth (FoE) and two solar companies - Solarcentury and HomeSun. The judgment, made by Mr Justice Mitting after a two-day court hearing, was hailed as a major victory by green campaigners and the solar industry.

DECC is introducing regulations today to put the Feed-in Tariffs (FITs) scheme on a more predictable, certain and sustainable footing for householders, businesses and the solar industry.

May 2012 The Government announced the introduction of a range of changes to the FITs scheme with effect from 1 August to provide better value for money and allow businesses and householders to plan with confidence. The tariff for a small domestic solar installation will be 16p per kilowatt hour, down from 21p, and will be set to decrease on a 3 month basis thereafter, with pauses if the market slows down. All tariffs will continue to be index-linked in line with the Retail Price Index (RPI) and the export tariff will be increased from 3.2p to 4.5p. The new tariffs were calculated to give a return on investment (ROIs) of over 6% for most typical, well-sited installations, and up to 8% for the larger bands.

Today The final package of changes to the FITs scheme has been announced by the Department of Energy and Climate Change (DECC), following consultation in February this year. This is part of the comprehensive review designed to ensure value for money for the consumer and long term certainty for those who choose to invest.

The changes will affect tariffs for all newly eligible FITs technologies from 1 December 2012 onwards.
Changes to solar tariffs, which have already been announced, will take place from 1 August 2012.

A degression mechanism will be introduced for Anaerobic Digestion (AD), wind and hydro from April 2014 in line with uptake of these technologies. Tariffs will be published two months before the degression date and will be based on publicly-available data. Decisions on the degression mechanism for solar were outlined in the Government response published on 24 May 2012.

Energy and Climate Change Minister Greg Barker said:

“I want to provide long term certainty for those choosing to invest in all forms of small scale green electricity generation, not just solar, and our changes to FITs will do just that.

“As well reducing tariffs over time for AD, hydro and small scale wind in line with uptake, we are introducing tariff guarantees for all technologies, great news for projects with long lead in times like hydro power.

“We are also planning to remove the energy efficiency requirement for community and school solar projects in recognition of the hard to treat nature of community buildings often involved in such schemes, and the educational benefits that they can bring. These types of projects will also be able to get tariff guarantees for installations of any size, making it easier for communities to get involved in clean green local energy generation.”

Dave Sowden, Chief Executive of the Micropower Council said:

“We welcome what is broadly a very positive set of proposals that should bring greater confidence to investors and customers. In particular the decision to increase the export tariff, the clarification of cost controls for microCHP, the community proposals and the decision not to extend energy efficiency requirements beyond PV are welcome developments.

“We will continue to monitor progress of the technologies supported by FITs with a view to maintaining constructive dialogue with DECC to inform further developments to the scheme.”

Paul Thompson, Head of Policy at the Renewable Energy Association said:

“These decisions demonstrate that DECC has listened carefully to industry concerns, and should restore certainty to the sub-5MW sector. We particularly welcome the support for community schemes and the improvements to the cost control mechanism. The introduction of tariff guarantees for projects at a relatively early stage is also very helpful, and we look forward to a similar approach being extended to the Renewable Heat Incentive.”

DECC is introducing a system of preliminary accreditation so all AD and hydro installations and larger wind and PV installations (over 50 kW) will be able to know before construction that they will be accredited. It will also provide certainty over tariffs for six months to two years depending on the technology. This means that if a developer gets their project up and running within the tariff guarantee timescale, they will get the tariff that applied at the time they applied for preliminary accreditation.

A system of advance tariff guarantees will also be available to non-domestic community energy PV projects up to 50 kW. A new hydro band for 100-500kW installations will also be introduced to ensure developers are incentivised to design their project at the most appropriate size.

“Community” FITs projects will be defined on the basis of existing tax law and community schemes will be exempt from the energy efficiency requirement (level D) introduced for solar from 1st April this year. Schools will also be exempt from the energy efficiency requirement even where they do not meet the definition of community scheme. Changes will take effect from 1 December, subject to Parliamentary and state aid clearance.

Renewable Heat Incentive

DECC has also today set out proposals to improve the performance and manage the future budget of the non-domestic Renewable Heat Incentive (RHI) scheme, providing greater certainty to the market.

To ensure the RHI budget is managed effectively, DECC is proposing to introduce a flexible degression based system. Under this system tariffs would be reduced for new applicants if uptake approaches pre-determined trigger points. Tests to see whether degression is needed would take place quarterly, and if a tariff reduction is needed, one month’s notice would be given. Progress towards the trigger points for each technology and the scheme overall would be monitored throughout the year and data published monthly.

Energy and Climate Change Minister Greg Barker said:


“The Coalition is fully committed to driving forward investment in renewable heat, and our proposals will make sure we provide the right support for the industry.

“We want to continue helping renewable heat to grow and flourish, providing long term certainty for those who choose to invest in it.”

DECC has set out plans to introduce greater environmental sustainability into the RHI through the inclusion of standards on Biomass sustainability (in line with the UK Bioenergy strategy published in April 2012) and a clear process for how the air quality regime will work. DECC is also looking to simplify the metering arrangements for the RHI, reducing the administrative burden on participants and taking views on the scheme from existing applicants into account.

DECC will continue to assess the workings of the RHI scheme and is proposing to review the scheme in 2014 to ensure tariffs for new applicants are still providing value for money.

We shall be adding to the article as there are further developments and any changes to the plans will be reflected in the content. The full report will be published in print and online in the next edition of the Parliamentary Year book.

Draft Energy Bill Report

As part of its ongoing reports on the Government’s energy and climate change policy the Parliamentary Information Office of the Parliamentary Yearbook has been monitoring progress on the draft energy bill. This will form part of a major feature on environment, sustainable energy and climate change in the next edition of the Parliamentary Yeabook

In a report published today MPs on the Energy and Climate Change Committee say that the proposals in the Government’s draft Energy Bill could impose unnecessary costs on consumers, lead to less competition and deter badly needed investment.

On Tuesday, May 22nd 2012, the Secretary of State for Energy and Climate Change announced in a Written Ministerial Statement the publication of a draft Energy Bill.

The Energy and Climate Change Select Committee have been conducting an inquiry to scrutinise the draft Bill. They have finished collecting written and oral evidence and have published their report today.

An informal Lords working group has also been established to consider the Bill. The members of this group are: Lord Oxburgh (Chair), Lord Teverson, Baronness Maddock, Lord Jenkin of Roding, Baronness Worthington, Lord Grantchester, Lord Dixon-Smith, Lord Lawson of Blaby, Lord O’Neill of Clackmannan, Lord Judd, Lord Whitty and Lord Roper. They will be working towards writing to the Department at the end of July:

The Bill is structured to establish a legislative framework for delivering secure, affordable and low carbon energy.

The Bill includes provisions on:

• ELECTRICITY MARKET REFORM (EMR)

The bill puts in place measures to attract the £110 billion investment which is needed to replace current generating capacity and upgrade the grid by 2020, and to cope with a rising demand for electricity. This includes provisions for:

• Contracts for Difference – long-term instruments to provide stable and predictable incentives for companies to invest in low-carbon generation;
• Investment Instruments – long-term instruments to enable early investment in advance of the CfD regime coming into force;
• Capacity Market – to ensure the security of electricity supply;
• Conflicts of Interest and Contingency Arrangements – to ensure the institution which will deliver these schemes is fit for purpose;
• Renewables Transitional – transition arrangements for investments under the renewables obligation scheme, and
• Emissions Performance Standard – to limit carbon dioxide emissions from new fossil fuel power stations.

As set out in the policy overview that was published alongside the draft Energy Bill on 22 May, the Government recognised that industry has strong concerns about the proposed legal framework and payment model for Contracts for Difference. They are seriously considering these concerns and are assessing an alternative model which includes a single counterparty to the CfD, and welcomed consideration of this issue by the Energy and Climate Change Committee as part of its scrutiny of the draft Energy Bill.

• STRATEGY AND POLICY STATEMENT

In addition to EMR, the Energy Bill will also improve regulatory certainty by ensuring that Government and Ofgem are aligned at a strategic level through a Strategy and Policy Statement (SPS), as recommended in the Ofgem Review of July 2011.

• NUCLEAR REGULATION

The Bill places the interim Office for Nuclear Regulation (ONR) on a statutory footing as the body to regulate the safety and security of the next generation of nuclear power plants. This includes setting out the ONR’s purposes and functions.

• GOVERNMENT PIPE-LINE AND STORAGE SYSTEM

The Bill includes provisions to enable the sale of the Government Pipe-line and Storage System (GPSS). This includes providing for the rights of the Secretary of State in relation to the GPSS, registration of those rights, compensation in respect of the creation of new rights or their exercise, and for transferral of ownership, as well as powers to dissolve the Oil and Pipelines Agency by order.

• MISCELLANEOUS

A minor measure to provide an exception to the prohibition of participating in the transmission of electricity during testing in the commissioning period of Offshore Transmission connections constructed by or on behalf of developers also constructing an offshore generating station.

However, publishing the report today, Tim Yeo MP, Chair of the Energy and Climate Change Committee, said:

"The Government is in danger of botching its plans to boost clean energy, because the Treasury is refusing to back new contracts to deliver investment in nuclear, wind, wave and carbon capture and storage."

In the biggest shake-up of the electricity market since privatisation, the Energy Bill will introduce new system of long-term contracts to give power companies a guaranteed price for the low-carbon electricity they produce. This is intended to reduce the risk of investment in projects with high up-front capital costs, such as nuclear reactors and offshore wind farms.

Initial consultation last year led investors to believe that the "Contracts for Difference" (CfD) would be guaranteed by the State – therefore lowering the cost of capital. But the Treasury has apparently intervened to ensure that the contracts are not government guaranteed. The new model for contracts will spread the liability across various energy companies instead; raising concerns that the plans are now too complex and possibly not legally enforceable. The MPs are calling on the Government to use its AAA-credit rating to underwrite the new contracts in order to keep the costs of energy investment down for consumers.

Tim Yeo MP added:                                
                                  
"Electricity market reform is essential, but the new contracts proposed by the Government will not work for the benefit of consumers in their present form.

“The Government has a lot of work to do over the summer to make sure that the Bill is fit for purpose in the autumn and is not subject to any further delays."

The Committee heard that the spending cap set by the Treasury – which limits the green levies that can be passed on to consumers in energy bills – could introduce an “unacceptable” level of risk to companies who are looking to build new wind, solar, wave or tidal power plants. This is because the levy cap will ration the number of contracts available, creating uncertainty amongst investors about which projects will receive support. This is already having an impact of investment decisions and could paradoxically push-up energy costs for consumers, the Committee warns.

Mr Yeo said:

"Nobody wants to see a blank cheque written out for green energy, but the Government must provide investors with more certainty about exactly how much money will be available."

The Committee is also concerned that the new contract system will reinforce the dominance of the "Big Six" energy companies and prevent new entrants into the electricity market. The Government says it wants to increase competition and improve the opportunities for new entrants in the electricity market. But witnesses told the Committee that the Energy Bill as it stands will in fact deliver the exact opposite of this ambition, threatening the viability of smaller-scale independent energy companies.

And Mr Yeo added:

"Community owned energy projects and small independent generators are in danger under the current plans of being squeezed out. The Committee is worried that decisions about support for new nuclear power stations are being made "behind closed doors" and calls for an independent expert to inspect any agreements to ensure that they are delivering value for money. Energy efficiency could be one of the cheapest way of cutting carbon and improving energy security and the MPs urge the Government to consider incentives for power companies to reduce demand. The Government should also set a clear target to largely decarbonise the electricity sector by 2030 to provide investors greater certainty about the direction of energy policy."

The Government must rethink its plans urgently so that the investment that is needed to replace the UK’s aging power stations, cut carbon emissions and maintain energy security can be delivered. The Committee says that the Government must come up with a stronger contract design before the Bill is expected to be introduced to Parliament in the autumn.

Tim Yeo MP concluded:

"If the Energy Bill does not set a target to largely decarbonise the electricity sector by 2030, then the UK may miss one of the biggest opportunities it has to create a low-carbon economy in the most cost effective way."

The Parliamentary Information Office of the Parliamentary Year book will continue to report on the progress of the bill as we go through the months ahead.

Water for life?

The Parliamentary Information Office of the Parliamentary Yearbook is currently gathering news items for major features on the effects of climate change in the next edition and has been monitoring response to the Natural Environment White Paper and the Government’s draft Bill, “Water for Life”

In the Queen’s Speech on 9^th May it was announced that a draft Bill will be published to reform the water industry in England and Wales.

The draft Bill, Water for Life, describes a vision for future water management in which the water sector is resilient, in which water companies are more efficient and customer focused and in which water is valued as the precious and finite resource it is. And it explains that we all have a part to play in the realisation of this vision.

The Key reforms proposed were:

• Over the long-term the introduction of a reformed water abstraction regime, as signalled in the Natural Environment White Paper earlier in the year
• Changes that can be made now to deal with the legacy of over-abstraction of our rivers
• The re-affirmation of the Government’s new catchment approach to dealing with water quality and wider environmental issues
• The removal of barriers to the greater trading of abstraction licences and bulk supplies of water to make our supply system more flexible
• With the Environment Agency and Ofwat, the provision of clearer guidance to water companies on planning for the long-term, and keeping demand down
• Consultation on the introduction of national standards and a new planning approval system for sustainable drainage
• Payments to address the historical unfairness of high bills in the South West
• Encouraging water companies to introduce social tariffs to support vulnerable customers
• The introduction of a package of reforms to extend competition in the water sector by increasing choice for business customers and public sector bodies and by making the market more attractive to new entrants
• Collaboration on a campaign to save water and protect the environment, working with water companies, regulators and customers to raise awareness of the connection between how water is used and the quality of our rivers.

Then in a report published yesterday, the Environment, Food and Rural Affairs Select Committee said that Ministers must act with urgency to prepare for a future where water resources in England will come under increasing pressure.

MPs called on the Government to take rapid steps to tackle the environmental damage caused by the over-abstraction of water, and set more ambitious targets to increase levels of metering.

Launching the report, Anne McIntosh MP, EFRA Committee Chair said:

"We heard persuasive evidence about the environmental damage unleashed by over-abstraction. The Government’s current plans - to reform the abstraction regime by the mid-to-late 2020s - will not take effect rapidly enough given that our rivers are already running dry.

“The reform of abstraction licenses must be brought forward to protect against the effect of severe droughts such as the one we saw earlier this year. Defra must also work with Ofwat and the Environment Agency to tackle urgently those abstractions which are already causing severe damage to our rivers."

The Committee also finds it "extremely disappointing" that the White Paper fails to set a target to increase levels of water metering.

"It's hard to see how the White Paper's call for water to be managed as a precious resource can be reconciled with the lack of any clear target to increase metering levels. Installing a meter is the most effective way to improve water efficiency, providing a clear incentive for householders to minimise wastage," adds Anne McIntosh.

The report highlights how bad debt in the water sector adds around £15 to each household’s water bill every year.

"It is simply unacceptable that hard-pressed yet honest householders are subsidising those who are able but unwilling to pay their water bills. Defra must implement existing legal provisions rapidly to tackle this problem," says Ms McIntosh.

The Committee also examines proposals to reform the water industry in England to increase competition in the sector. MPs conclude that Defra should set a clear target date for opening a competitive retail market for water, and should take account of lessons that can be learned from Scotland, where retail competition has already been introduced.

"We welcome plans to increase competition in the water industry, although we believe that the White Paper’s proposals for reform will fail to deliver a well-functioning retail market. We suggest how to remedy this and we look forward to examining revised proposals in more detail once the draft Water Bill is published," adds Anne McIntosh.

The Committee calls on the Government to take action to encourage the development of Sustainable Drainage Systems (SuDS), which can reduce the risk of flooding, and to implement the relevant outstanding provisions of the Flood and Water Management Act 2010.

MPs also say that it is "deeply worrying" that the Government had not yet reached an agreement with insurers about providing cover for homes in areas of flood risk.

The Parliamentary Information Office of the Parliamentary Year book will continue to report on the progress of the White Paper and the impact on UK water supplies as we go through the months ahead.

Improving School Food

The Parliamentary Information Office of the Parliamentary Yearbook has been monitoring progress in Government policy relating to healthy eating in schools since Jamie Oliver’s ground breaking  campaign to improve school food in 2005. This will form part of a major feature on healthy living in the next edition

In the seven years since Jamie Oliver began his campaign to improve school food, there has been a measurable improvement in the number of children taking up school meals and the nutritional quality of the food they are eating. This is the result of work done by a large array of people, including the School Food Trust, associated charities such as School Food Matters and Jamie Oliver’s Foundation – not to mention the individual cooks, teachers, parents, pupils, outside caterers and local authorities who have embraced the cause.

There is, however, still much to do. A recent report for the School Food Trust indicated that quality varies across the country. Some schools have transformed their school dinners; many have also introduced food growing into the curriculum and continue to teach cooking, to give children a lasting education in eating well. But others still struggle to serve good-tasting, nutritious food. The ability of academies to depart from the Food Standards has also stimulated debate about how much freedom schools should have. There is no evidence that food in academies has deteriorated. But the Government accepts the need to consider how the quality of food in all schools can be improved.

School Food Trust research shows that:

• take up of school lunches is just 38 per cent in secondary schools and 44 per cent in primary schools
• only 22.5 per cent of schools provide at least one portion of fruit and veg per pupil every day
• half of secondary schools offer pizzas and starchy food cooked in oil on most days
• a third of young people are not choosing a healthy balanced meal at school.

So last week the Government announced that it had asked the co-founders of LEON restaurant chain, Henry Dimbleby and John Vincent, to examine school food across the country. They will create an action plan to accelerate improvement in school food and determine the role of food more broadly in school life.

Henry Dimbleby and John Vincent co-founded the LEON restaurant chain in 2004. Prior to founding LEON, they both have experience of leading large scale change in commercial organisations at the management consultancy Bain & Company and, for John, from the work he did turning around the spirits company, Whyte and Mackay. Prior to Bain, John worked at Procter and Gamble. Henry worked as a chef and as a journalist.
Henry is a founder and director of the not-for-profit Sustainable Restaurant Association.

The plan from Henry and John will examine which schools are doing things well and why. It will set out how all schools can reach a standard to be proud of. They will speak to experts, review research and visit schools as well as conduct primary research in order to build up a systematic picture of school food across England.
An important part of their work will involve looking at what factors influence school food choices.

To ensure that our children are eating well in schools the plan will address two key questions:

• what more needs to be done to make tasty, nutritious food available to all school children?
• how do we excite children about the food so that they want to eat it?

Henry and John have experience in creating nutritious food that tastes good, in large volume, to a budget. They will be looking at all ways that change can be brought about: leadership, communication, rewards, inspiration, training, structures and supply chain, regulation, responsibilities within schools, reporting, and the role of parents and people from the world of food.

Education Secretary Michael Gove said:

“There has been an improvement in school food in recent years with many schools transforming school dinners, introducing food growing into the curriculum and teaching cookery. However, there is still more to do particularly in taking localised successes and ensuring they are replicated nationally.

“Henry Dimbleby and John Vincent bring a wealth of practical experience in delivering good food on a budget. I am delighted they have agreed to develop a robust plan to improve school food and ensure children are given an education that cultivates in them an understanding of food and nutrition.”

John Vincent said:

“We have a mission at LEON to make it easy for everybody to eat good food. We do it commercially with LEON, and so we are energised by the chance to do so with School Food. We join a powerful and growing team of people who have done so much. What we all now need is an action plan that gets to grips with exactly how the ideas and dreams can be implemented for all kids, and stick.”

Henry Dimbleby said:

“There is so much good work being done to improve school food by people in schools around the country. Our job is to find out which schools are doing well and why. This is a great opportunity to work with those people to set out in a systematic way what needs to be done to nurture and accelerate those improvements.”

This an independent review on behalf of the Secretary of State, and will report directly to him.

Henry and John will work with the Department for Education – seeking input from sector bodies, existing campaign groups, local authorities, caterers, schools and parents – to establish the facts needed to put together their plan. These include:

• what is the current best practice in the UK and abroad?
• how can the best be made even better?
• what other creative ways might there be to raise standards?
• what support is needed by those schools that have struggled to make improvements?
• what motivates children and parents when they are choosing between school food and packed lunches?
• what are the features of successful provision of school food?
• how might government work alongside other relevant bodies such as the School Food Trust to deliver this?

They will use this work to draw up an action plan that lays out what needs to be done to accelerate the work of the last seven years to ensure that all children eating in English schools are offered good food and given an education that cultivates in them an understanding of food and nutrition.

They will deliver their plan in 2013.

The Parliamentary Information Office of the Parliamentary Yearbook will continue to report on all aspects of our health and lifestyle as we go through the months ahead.

Rio+20 Achievements

The Parliamentary Information Office of the Parliamentary Yearbook is currently gathering news items for major features on sustainable energy and climate change in the next edition and has been monitoring progress at Rio+20 towards a greener future

United Nations senior officials have highlighted the achievements made during the United Nations Conference on Sustainable Development (Rio+20) held from 20^th to 22^nd June in Rio de Janeiro, Brazil, stressing that they represent a global movement of change in which governments, the private sector and civil society all contribute to achieve global prosperity while protecting the environment.

Secretary-General Ban Ki-moon said at a General Assembly meeting on 28^th June on the outcome of the Conference:

“Let me be clear. Rio+20 was a success, in Rio, we saw the further evolution of an undeniable global movement for change.”

More than 40,000 people – including parliamentarians, mayors, UN officials, chief executive officers and civil society leaders – attended Rio+20 from 20-22 June. The event followed on from the Earth Summit in 1992, also held in Rio de Janeiro, during which countries adopted Agenda 21 – a blueprint to rethink economic growth, advance social equity and ensure environmental protection.

World leaders attending the summit on sustainable development approved the agreements drawn up earlier in the week following negotiations by 193 countries.

In his remarks, Mr. Ban highlighted several parts of the Rio+20 outcome document, entitled ‘The Future We Want,’ which he hailed as “an important victory for multilateralism after months of difficult negotiations.”

These sentiments were echoed by the Deputy Prime Minister Nick Clegg and Environment Secretary Caroline Spelman who welcomed the progress made towards a more sustainable future at Rio+20.

Deputy Prime Minister Nick Clegg, who led the UK delegation, set out the UK’s ambition to build on the Rio+20 agreement. Addressing the final plenary, he said:

“This week we have agreed to set Sustainable Development Goals. I want to see progress in agreeing these within the post-2015 development framework, so that – as at the original Rio conference – the environment and development are again part of a coherent whole. I would like to think that the ideas we have promoted here – governments, civil society, consumers and business working together and concepts like the green economy and natural capital – will be central to the way we all behave.

“We need to turn words into action. We need to work together to change behaviours, to change all our mindsets and put our world on a more sustainable footing. That’s why the UK Environment Secretary and I have been using the unique platform that Rio provides to talk to fellow leaders from around the world about how we turn these ideas into reality.”

Environment Secretary Caroline Spelman, who led talks in reaching the agreement, said:

“We came to Rio with a clear set of ambitious aims on totally new concepts such as Sustainable Development Goals and GDP+, and we should be positive that we have made good progress on all them.

“Rio+20 has shown that there is political ambition for change. Now we have to make sure that will is not squandered. We have already started to make headway in the talks held since the text was agreed, such as good progress towards deciding on the themes the Sustainable Development Goals should cover.”

Key points from the agreement for the UK are:

• Agreement to establish Sustainable Development Goals (SDGs). The United Nations General Assembly will appoint a group of representatives from 30 countries by September to develop the goals, with our aim for these goals to focus on food, water and energy
• Recognition of the importance of the green economy as a way to help nations to grow sustainably, and to help eradicate poverty
• A call from all nations at Rio+20 for businesses to adopt ways of reporting on their sustainability performance, as championed by the UK delegation and businesses such as Aviva.
• Recognition by all nations at Rio+20 of the importance of including the value of natural capital and social wellbeing into decision making will be given real force by having a UN commission undertake the work on GDP plus.
• Oceans to be given greater prominence with a commitment to extend marine conservation to on the high seas.
• A call for enhanced efforts to sustainably manage forests including reforestation, restoration and afforestation. The agreement highlights the importance of initiatives such as REDD+ in reducing emissions from deforestation.

The Deputy Prime Minister and Caroline Spelman have been working to implement the agreed text over the final three days of the summit.

A Natural Capital Summit was hosted by Nick Clegg with the leaders of nations including Norway, Denmark, Costa Rica and Gabon to announce that 50 countries and 50 global firms have made commitments to include the value of natural resources in their accounts as part of the World Bank’s 50/50 campaign.

Caroline Spelman held talks with world leaders including Presidents and Prime Ministers to discuss how to take forward work on Sustainable Development Goals, which led to a developing consensus on the themes that SDGs should cover – including food, water and energy that the UK has pushed for.

Rio+20 has also been used as an opportunity for many bilateral meetings with other nations to discuss environmental projects, trade, and ways to boost growth and create jobs in the UK.

The Parliamentary Information Office of the Parliamentary Year book will continue to report on environmental issues and their impact on the UK as we go through the months ahead.

Reform Of The Water Industry

The Parliamentary Information Office of the Parliamentary Yearbook is currently gathering news items for major features on the effects of climate change in the next edition and has been monitoring response to the Natural Environment White Paper and the Government’s draft Bill, “Water for Life”

In the Queen’s Speech on 9^th May it was announced that a draft Bill will be published to reform the water industry in England and Wales.

The draft Bill, Water for Life, describes a vision for future water management in which the water sector is resilient, in which water companies are more efficient and customer focused and in which water is valued as the precious and finite resource it is. And it explains that we all have a part to play in the realisation of this vision.

One of the Key reforms proposed was the introduction of a package of reforms to extend competition in the water sector by increasing choice for business customers and public sector bodies and by making the market more attractive to new entrants

In a report published last week, the Environment, Food and Rural Affairs Select Committee examined the proposals to reform the water industry in England to increase competition in the sector. MPs conclude that Defra should set a clear target date for opening a competitive retail market for water, and should take account of lessons that can be learned from Scotland, where retail competition has already been introduced.

Anne McIntosh MP, Chair of the Committee said:

"We welcome plans to increase competition in the water industry, although we believe that the White Paper’s proposals for reform will fail to deliver a well-functioning retail market. We suggest how to remedy this and we look forward to examining revised proposals in more detail once the draft Water Bill is published".

Today the plans to reform the water industry were published in Parliament as the Government seeks to slash red tape, drive innovation and open the market to new companies.

Under the proposals, which have been published for pre-legislative scrutiny, all businesses and public sector bodies in England will be able to switch their water and sewerage suppliers, allowing them to obtain more competitive prices, improve their efficiency and tender for services better suited to meet their individual needs.

Evidence suggests that opening up the water market and allowing businesses to switch supplier could deliver benefits to the economy of £2 billion over 30 years. In Scotland, after similar reforms were introduced, the public sector alone is set to save around £20 million over the next three years.

Secretary of State for Environment, Caroline Spelman said,

“This draft Bill will create a modern customer focused water industry and for the first time all businesses and other organisations will be able to shop around for their water and sewerage suppliers.

“By slashing red tape we will also stimulate a market for new water resources and incentivise more water recycling.

“This will ensure that the water industry continues to provide an affordable and clean water supply which is essential for the nation’s economic growth while at the same time protecting the environment for future generations.”

Businesses, charities and public organisations with multiple sites will also be able to receive just one combined water and sewerage bill for all their offices and buildings across England and Scotland.

Regina Finn, Ofwat Chief Executive Officer said:

“This Bill is good for the customer, the economy and the environment. As well as, for the first time, giving choice to 1.2 million businesses and other organisations, the Bill is expected to benefit the economy by almost £2 billion. The reforms will help the country become better at valuing, managing and using our water. Now is the time for all players to step up to the plate to deliver the vision of the Bill – including the industry, regulators, consumer bodies and Government.”

The draft legislation will remove current regulations which act as a barrier to new entrants wishing to enter into the water and sewerage market. Currently any new entrant needs to negotiate with up to 21 water companies before entering the market. Under these changes there will be no need to do this as Ofwat will set out standard terms and conditions for companies to follow. It will also encourage existing companies to look at offering alternative supplies and services.

The legislation will also make it easier for bulk water trading within the industry, allowing water companies to work more closely to find long term solutions to water security issues.

Increased competition in the wholesale market will give water companies an incentive to come up with cheaper, more sustainable solutions to sourcing water.

The Bill will also make the costs of connecting new developments to the water and sewerage system more transparent. Developers will benefit from the extension of environmental permits to include water abstraction licensing and flood defence consents – reducing the red tape around environmental regulation.

The Parliamentary Information Office of the Parliamentary Year book will continue to report on the progress of the White Paper and the impact on competition and UK water supplies as we go through the months ahead.

High Speed Rail – The Completion And Sale Of Hs1

The Parliamentary Information Office of the Parliamentary Yearbook is currently monitoring developments in the UK high speed rail network for major features on transport and the environment in the next edition 

The Commons Public Accounts select Committee today published its 4th Report of Session 2012-13, the completion and sale of High Speed 1.

High Speed 1 (HS1), officially known as the Channel Tunnel Rail Link (CTRL) and originally as the Union Railway or Continental Main Line (CML), is a 108-kilometre (67 mile) high-speed railway from London through Kent to the British end of the Channel Tunnel.

The line was built to carry international passenger traffic from the United Kingdom to Continental Europe; additionally it carries domestic passenger traffic to and from towns and cities in Kent, and has the potential to carry Berne gauge freight traffic. The line, crossing over the River Medway and underneath the Thames to London St Pancras, opened in full on 14 November 2007. It allows speeds of 230 to 300 kilometres per hour (143 to 186 mph) and cost £5.8 billion to build. There are intermediate stations at Stratford International, Ebbsfleet International and Ashford International.

International passenger services are currently provided by Eurostar, with journey times of London St Pancras to Paris Gare du Nord in 2 hours 15 minutes, and St Pancras to Brussels-South in 1 hour 51 minutes, using a fleet of 27 Class 373/1 multi-system trains capable of 300 kilometres per hour (186 mph). Other, competing, passenger operators are expected to use the line in future.

Domestic high-speed commuter services serving the intermediate stations and beyond began on 13 December 2009. The fleet of 29 Class 395 passenger trains are permitted to reach speeds of 225 kilometres per hour (140 mph).

Publishing the report on the sale and completion of the line, the Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts, today said:

"Whilst HS1 provides an efficient service, contributing in an important way to British transport infrastructure, there were costly mistakes in the history of the project. These must not be repeated with HS2.

“HS1 was supposed to pay for itself but instead the taxpayer has had to pay out £4.8 billion so far to cover the debt on the project.

“The root of the problem is the inaccurate and wildly optimistic forecasts for passenger numbers both when the line was being planned and when the Department restructured its deal with the contractor, London & Continental Railways Limited. International passenger numbers have only been a third of LCR's original forecast and two thirds of the Department's forecast. The Department failed to take into account the growth of low cost airlines or the competitive response of the ferry companies.

“This isn’t the first time that over-optimistic planning and insufficiently robust testing of planning assumptions has got the Department into trouble. My Committee's report on the East Coast Mainline raised similar concerns.

“HS1 will continue to cost the taxpayer money–£10.2 billion over the next 60 years, so before going ahead with HS2 we need a robust cost benefit analysis.

“Some of the Department's assumptions about the benefits of faster travel are simply untenable. For example, the time business travellers save by using high speed rail is valued at £54 per hour yet the time commuters save getting to and from work is only valued at £7 per hour. It is difficult to see how this can be justified. The Department also assumes that all time spent on a train is unproductive. And unrealistic assumptions about ticket prices act to exaggerate passenger demand forecasts.

“The Department also told us that it had not considered the benefits and costs of alternatives to HS2 such as investment in broadband videoconferencing or investment in alternative, more local train routes.

“It is nonsense that the Department does not have a full understanding of the wider economic impact and regeneration benefits of transport infrastructure, including HS1, to inform future investment decisions.

“All these things are crucial for proving the case for investment in long distance travel and demonstrating value for money.

“The Department must revisit its assumptions on HS2 and develop a full understanding of the benefits and costs of high speed travel compared to the alternatives."

Margaret Hodge was speaking as the Committee published its fourth Report of this Session which, on the basis of evidence from an expert witness and the Department for Transport, examined the High Speed 1 project and the lessons that need to be learnt from it.

The high speed railway linking London to the Channel Tunnel, known as High Speed 1, has now been fully open for almost five years. Since opening, the line has had a good performance record and the Department for Transport (the Department) can be proud of some aspects of the project. A revised timetable and budget were established in 1998 and the line was constructed within this revised timeframe and revised budget. In 2010 the Department managed the sale of HS1 Limited, which has a concession to operate the line for 30 years, in an exemplary manner. The sale, along with the Department’s restructuring of Eurostar UK, which ran the British arm of the international train service, transferred most of the remaining operational risk relating to the line to the private sector, with the project debt being met by the taxpayer.

There have also been some costly mistakes in the history of this project. The Department originally expected London & Continental Railways Limited (LCR), (which was awarded the contract to build the line in 1996), to service the project debt from future revenues from Eurostar UK (the train operator). However by the end of 1997 Eurostar UK revenues were substantially below LCR’s forecasts. Consequently, in 1998, the Department agreed to restructure the deal and guarantee most of LCR’s debt. The Department’s debt guarantees were called upon in June 2009 and the taxpayer is now servicing and repaying the project debt of £4.8 billion.

Passenger demand for international services on the line has been much lower than forecast and that is the root cause of the failure of the original deal and of the call on the Department’s debt guarantees. International passenger numbers have only been one-third of LCR’s original 1995 forecast and two-thirds of the level the Department forecast in 1998. The Department's planning assumptions for the line were wrong; it failed to properly consider the impact on passenger numbers of the growth of low cost airlines and the competitive response of ferry companies. Over-optimistic forecasting and insufficiently robust testing of planning assumptions is a recurring problem, as our previous report on the East Coast Mainline has demonstrated. The Department must learn the lessons from the past and ensure that cost benefit analysis is solid as it develops its plans for HS2.

The Department still does not have plans in place to evaluate fully the impact of High Speed 1. Total taxpayer support for the line, over a 60 year period to 2070, has an estimated present value of £10.2 billion. Benefits for passengers from shorter journey times over this period have an estimated present value of £7 billion. The basis of this cost/benefit analysis is open to challenge. There is a risk that the value of passenger benefits is overstated, for example because the Department’s methodology assumes that all time on a train is unproductive, and a further risk that the wider economic benefits are not taken into account because no appropriate analysis is made.

While difficult, it is disappointing that the Department has not attempted to understand the economic impact and local regeneration benefits achieved so far from High Speed 1. Also it has not assessed the impact on regeneration of decisions on where to locate stations. The Department will need to evaluate HS1’s regeneration benefits and wider economic impacts worth many billions of pounds if the project is to demonstrate value for money. To learn from past decisions and so make well-informed investment decisions in the future the Department, as well as other government departments investing in infrastructure, must improve its understanding and measurement of the economic and regeneration benefits of new infrastructure.

The Parliamentary Information Office of the Parliamentary Year book will continue to report on the progress of HS2 and Government’s response to the Committee’s comments about HS1 as we go through the months ahead.

Accessible Education

The Parliamentary Information Office of the Parliamentary Yearbook has been monitoring progress in Government policy relating to education for major features in the next edition on both our education system and diversity and inclusiveness

Members of the House of Lords debated the accessible education and training available to those with 'hidden' disabilities, such as dyslexia and autism yesterday (Thursday 28 June).

Members with an interest in education and issues affecting young people were listed to speak during the debate which lasted around two and a half hours.

These include Baroness Jones of Whitchurch (Labour), the opposition spokesperson for education, and Lord Ramsbotham (Crossbench) an adviser for the Helen Hamlyn Trust, a foundation supporting young people through arts and education.

Lord Addington (Liberal Democrat) has a special interest in the topic being dyslexic himself and Vice President of the British Dyslexia Association and patron of the Adult Dyslexia Organisation. He said:

“In society, we have a tendency to ignore those who need just a little bit of help and concentrate on those who need a lot.

“Unfortunately, these hidden disabilities - such as dyslexia, for example - tend to be vastly over-represented among the long-term unemployed and within our prison service and other areas.

“I hope that this debate will bring some of these issues to the fore and encourage the government to help people affected by hidden disabilities aware of the opportunities for education and training that are available to them.”

In opening the debate Lord Addington called for more training to allow those working in the education and training sectors to spot hidden disabilities. He said:

“When I linked autism and dyslexia and included them in hidden disabilities, the main point that I was trying to make was that anything that is not easily spotted at the start of the educational process, whenever someone chooses to take that, leads to problems if it impedes one's learning or classroom situation. How early one gets in and identifies the problem is crucial.”

Vice president of the National Autistic Society, Baroness Browning (Conservative), followed and spoke of her 'battle' to bring autism to the top of the agenda. She highlighted the need to address issues in the classroom and look at each individual case of autism.

She said “Of course, autistic children are different. It is a danger to just lump them all together. Their needs will be different. They are individuals. Their teaching needs will be best addressed by an environment and a teaching process that recognises what those needs are - which needs to be put together after very careful assessment.”

Lord Ramsbotham declared an interest in the subject as chairman of the All-Party Group on Speech and Language Difficulties and an adviser for the Helen Hamlyn Trust, a foundation supporting young people through arts and education. He explained:

“I am very concerned that people with hidden difficulties and disabilities which could be identified early must have them identified, so that the talents and the treasure can be nurtured and developed not just for their benefit, but for the benefit of the nation as a whole.”

Lord Hill of Oareford (Conservative) Parliamentary Under-Secretary of State for Schools and government spokesperson, Department for Education, responded on behalf of the government saying:

“The government are introducing their children and families bill, which in a way, I hope, sets the framework for much of what we have discussed this afternoon and how we hope to be able to improve things in future, because that bill seeks to put into legislation a new framework for the education and training of disabled children, young people and those with special educational needs.”

The Parliamentary Information Office of the Parliamentary Year book will continue to report on inclusiveness within our education system as we go through the months ahead.