fact that companies haven't yet utilize all the funds so will have to do without with rural development and usda, but thank you very much. mr. serrano? >> thank you. mr. chairman, we're very aware you prepare the fiscal 2013 budget in advance of recent congressional action. which will greatly affect the future of spectrum availability. these will be the most complex auctions the fcc has conducted to date. please update us on the agency's plan for these auctions as it stands now. understanding that things will change as we move forward. we won't pressure for a figure today, but i imagine there will be additional administrative costs associated with these auctions. can you comment on that? >> the auctions will be, present an opportunity to deliver a

great return for the american economy in the american people, raise billions of dollars for the treasure, three of spectrum for ipads and other mobile devices. it also will be incredibly complex. the two-sided auctions that congress authorized, this will be the first of its kind. it will acquire a great deal of hard work, engineering work, economists work, and we are privileged to have that responsibility. the staff is now analyzing the statute, developing an imitation plan, determine what effect it will have come and most importantly developing a view on what needs to be done to maximize the benefit to the public, the benefit to the treasure, the benefit to our economy. the fcc has a good tracker to in delivering a major return on investment. and we would like to make sure that the challenges ahead that we don't short change the

american public because we don't bring the right engine and economic resources to bear. >> now, you tell us that you are at the lowest staffing level in 10 years. so in view of these responsibilities, what can you tell us about present level of staff and taking on what you need to do now? >> you know, i'm completely in favor of having a lean, highly talented team taking on these issues, and have no interest in looking to hire people. we don't need. i am concerned in general about the engineering and economic resources at the fcc, whether it's interference issues like we're talking about before, the complexity of auctions. there's a basic level of talent that the fcc needs to sustain over time in order to realize

these benefits for the american public. so, our goal is to do the most we can with the fewest resources and the fewest people. as i said, i am, we have a lot of work to do to make sure that we continue to bring in great engineers, great economist, great lawyers to meet the opportunities of mobile and broadband. >> right. now, we know the future of the important aspect of this new spectrum auction is the set aside for first responders. everyone here is concerned with that, but if you come from new york city that is still an issue that is with us every day in terms of what happened on september 11 but how will that go and how successful do you think you'll be able to be in dealing with the issue? i suspect, sorry for interrupting, i suspect that's an issue that will have bipartisan support. people will say make sure that

you're doing the right thing. >> it's actually important issue. the 9/11 commission recommended too many years ago that we have an interoperable mobile broadband network for first responders. it's very important thing that congress has now move forward on that. a great deal of responsibility implementing that lies within ntia. the -- our pieces will work on at the sec. we have a public safety and homeland security your that is very focused on it. making sure that we harness modern communications for our first responders with a mobile broadband public safety network with next generation 911, without bound mobile alerts so that they can reach people. these are very high priority. and in each case we present some very challenging issues to work through. >> all right. well, we wish you the best because that's going to be a challenge and one that everyone

will be looking at. there's a question i've asked the last couple of years, every agency that has come before us, and it's of special interest to me. what about the territories? as you know, the territories are always an afterthought, in congress, corporate america, and everywhere else. and, in fact, if you would ask americans, the folks who live in territories are the american citizens? we may be shocked at how many americans do not know that we're talking about american citizens because they don't live in a stay. it got so bad the cup years ago at an fcc hearing i was told that satellite radio is not available for puerto rico. i asked why, and someone sitting right there, hope it wasn't you, no, it wasn't you, said the satellite doesn't reach them. i said it's a satellite. so i suggested they borrow one from the ca which can reach anywhere in the world.

so now they have satellite radio. what are you being from the territories? what issues do they have that might be different from folks in the 50 states or in the cut now states some people call them? and what is still missing to bring about equality under the umbrella of the fcc? >> i would say the issue we most fear is the same issue we hear from rural america, which is ensuring adequate broadband infrastructure and broadband adoption. and so whether it's the universal service fund or other policies and programs that we have, we certainly look at the territories, the issues of the territories have, to the extent that our unique issues of course we take this into account. but many of the issues are similar and hope that will help accelerate solutions across the board. >> well, i must say to both you and mr. mcdowell, you can

comment on this if you wish also, that if you think it's rough for rural areas, and this is not a political statement. most of those rural areas, all of them have two senators and a couple of congressmen, or at least one, to call the fcc. the territories is a whole given situation. they are treated equally only by the military. and that's both a positive, and a speaking in a positive term, for their service. so i just want you to always stay on top of that, as we will on this subcommittee. i know that the chairwoman shares that thought with me. >> thank you for the opportunities be. we do keep them in mind, the territories but, in fact, is last october i had a terrific conversation with the governor of puerto rico about are universal service reform and the need to make sure puerto rico, all of its unique circumstances

were taken into consideration. so what is going to be upcoming spectrum auctions or other things regarding injecting more spectrum enhanced to consumer or more broadband diploma or adoption, as the chairman said, we do take them into account very seriously and do all we can to a lot of them have unique circumstances. we try to incorporate that into our policy. >> i think it's important to always, madam chair, be aware with what's happening with the territories and with your thinking as a certain presidential candidate found at this weekend in puerto rico. >> indeed. >> thank you. >> mr. womack? >> i've got a couple follow-up questions. i'm not going to be near as understanding or forgiving for what my colleague, mr. diaz-balart, brought to the attention of this bill here just a few minutes ago in regard to the number of employees that are not receiving in excess of $150,000 annually in earnings. he went through the full list.

i'm just going, i'm going to take 2008 and 2009, and just set them side-by-side. because i can imagine an explanation that can justify this. that in 2008 there were 46, and in 2009 there were 431. i mean, those numbers, i cannot wrap my head around a one year growth pattern, and less magically hundreds of those workers were making $149,000 a year, and then got a couple thousand dollars raised and to come over the threshold. so what i'm specifically asking is not necessarily an explanation today, because there may not be one that can be supported better by what research might be able to uncover. but i said in hand with the

national nuclear security administration and health institutes and other very, very high level, high-energy, high competency level bureaucracies in this government, and i would be shocked if they all came with this kind of appreciated number, between 2008 in 2000. i will give you a chance to comment about that significant jump in one year, but i do, for the record, would like to see the justification and where we are headed on this glidepath. >> so, we certainly can provide you more detailed explanation. i understand from our staff that in the period from '08 to '09, a certain class on the gs isps can went from just under 150 to just over 150. we will get back to you on whether that is the explanation.

i can survey to you in my time as chairman, there was no effort to say let's in flight the salaries of employees. and i suspect the explanation will be something like the one that was ported to me. >> shirley, you, mr. sherman and the commission would agree that on paper in front of a discerning public voucher that is an astonishing jump in one year. >> i would like to understand the numbers better myself it is possible this pay scale went, just under 100 to over one of 50 that you but we work with you and the committee to provide the underlying facts. >> at the risk of being hardheaded and not satisfied with that particular response, let me say it again. that a member of the discerning public, you have to agree that would look at that discrepancy, 46 in 2008, the 431 in 2009,

unless there is a general support argument like you indicated, that a change in the pay scale, which goes back to what i said a minute ago, if everybody, if hundreds of those people were all of a sudden went from 148, five, or even 145 in excess of 150, overnight, that would be a logical explanation. but absent that, if that's not what we get back, would you agree that's a hard number to justify? >> i would agree that number needs to be understood. it adheres to take place before got to the fcc, but in any event, we will provide that information to you and the committee and understand. >> thank you. i promise a broadband question and i will make this a softball general is question because i know there's been a lot of talk already about rural broadband. i represent an area in arkansas that is very cosmopolitan along

the interstate corridor and home to some great companies in america. but i also represent an area of arkansas that is very rural. i mean, very real. so rural that i get areas in my district that probably don't get the grand ole opry until tuesday, it's that rural. i'll have to explain it to my colleague from kansas. assure me and help me assure rural america that given the tremendous pressure on our public schools in distance learning programs, health care, and the enormous impact that broadband is having on the delivery of health care services, and a whole plethora of other issues impacted. i would even go so far as to argue that in some cases

adequate broadband is as important, if not more important, and highways were once upon a time in our nation's history. so assure me, help assure rural america that we're going to do what it takes to get broadband service sufficient bandwidth to the people that need it. >> i completely agree on your statement about the importance of broadband to basic participation in our economy, in education and health care it and it's what drove our effort to reform and modernize. the challenge we face and we look forward to working with the committee and congress together is we made the decision driven by fiscal responsibility to fund the connect america fund out of savings from the program. and to respond to some of the concerns from other parts of rural america, phase-in some of the steps would've to increase

increase efficiency and accountability, and so it will be a step-by-step process to get broadband to rural america. i've argued that the return on investment to our economy, and particular to rural america, at one time capital infusion into the universal service fund would have a very significant payoff because it would allow us to accelerate deployment without turning the dial on the other side so fast that we hear more complaints and concerns from the outside. it was in her national broadband plan that suggested and i look forward to working with you because i think would have a very positive payoff in terms of increased economic activity in rural america as well as improvements to education and health care. >> commissioner, finally, last question is for you. last month there was an op-ed i think that you wrote in "the wall street journal" on the internet, and it was largely

about the united nations potentially having more significant authority over the internet. can you, this issue hasn't received a great deal of attention and i hope you could discuss over the span of just briefly what's happening in this arena? >> this is a very real problem, and for the past several years actually there have been a group of countries throughout the world that have been pushing for international regulation of the internet. it sounds crazy but it actually happens to be true, unfortunately in years past the united states or the uk and other allies have been able to use parliamentary maneuvers to table some of these actions. but this coming december in dubai they will be a treaty negotiation or renegotiating. so back in 1988, about, well, most of the countries in the world got together, negotiated a treaty that set the trend for the internet to be not regulated by governments, but to be regulated from the bottom up in what we call and

multi-stakeholder model, which is the private sector academic nonprofits in such, with engineers and academics and user groups, and all sorts of folks, to come and make sort of bottom-up tools for how the internet works and how it's going to grow and thrive and succeed. but in the past couple of years in particular there's been a bit of a gathering storm of some countries, perhaps led by russia and china, vladimir putin himself, i quote them in a "wall street journal" op-ed said, this agreement a driscoll, he wants international control of the internet through the international, the international telecommunication union, the itu, which is an arm of the u.n. based in geneva. and it does a lot of good things that helps negotiate and manage international telecoms traffic. but it's been up to this point

relegated to telecommunications and some international aspects of spectrum management, but not internet governance. so everything from cybersecurity and privacy to a domain name administration to engineering, which is currently administered by the internet engineering task force, again and nongovernmental group, and other aspects of the title aspects of internet governance to the internet society, again another nongovernmental group, as well as. arrangements for the long haul backbone where there are privately negotiated traffic swapping agreements between a backbone providers, et cetera. all that, there are proposals on the table, consume to the itu to give it the jurisdiction over that. among many others. so it's a real concern. the obama administration and nine others are all in agreement on this that seems to be bipartisan support in this country, but it's becoming a bit of an issue of the developed world versus the developing

world. and actually the irony is that should a treaty go the distance and actually become ineffective, it would actually undermine economic and political progress in the developing world. the developed nations hope for our own, would opt out of such a treaty. but, the rest of the world that might not be the case. they see an opportunity to charge some website or application providers, whether google or facebook or whomever, to charge him on a per click basis and have that money flow to some kind of state-owned telephone companies in their country. so there are a lot of issues there. i don't want to blather on a filibuster but it is a very real concern, and we should all be working hard to make sure it doesn't happen. and quite concerned about it because it just doesn't take place in december. it our meetings of the globe which we now and december are positions across the globe will start to harden but i do want to thank chairman genachowski for also voicing his concern about

this is what. >> i will give you a second,. >> preserving internet freedom globally is the vital importance for it's important to the american economy. it's important to the global economy. it's important to the economy of developing countries and it's important to freedom everywhere. and it is important that we work together on countering proposals that some countries have made that would not be consistent with internet freedom, and i would have the opposite effect of that claim. so it's very important topic, and it's important that we all work together to preserve the free flow of data and internet freedom globally spent i want to thank both you for your service to our country and serving as a this hearing today, in answering this question. thanks so much. i yield back. >> i think we all ago what you just said. thank you both for your service. let me just very briefly go back

to what mr. womack, just all about what he he said about the salaries but you're absolutely right that there may be a very good explanation for it if there's a whole category individuals that when a. however, when you look at the change between 2009 and 2010 and 20 others a rather large increase again. i'm sure there was an explanation while the disney a little bit of a reason to toss. and by the way, i, for one, have no problem, if you need qualified people and have to pay them well. if that's the post, i don't have a problem with that but we should note if that's the case, if that is the polls. if it isn't a policy, then again why are these numbers taking place, i think that has to be answered to i know you will. i know you will. in kind of almost a technical question, in several places in your budget request you indicated that you expect to keep 1900 -- i believe the quest

is to under $40.9 billion to fund that staffing level. and other places there seems to be an indication that the fcc expect to maintain only 1776 employees. what is the actual number? >> the number is the lower number. the flexibility is requested so that we can continue to look at more efficiency in the overall budget by, for example, moving from contractors to ftes. we don't have any specific plans on the table, but if they would say the government money by doing something in house instead of contracting out, we should look at that as part of it. but the number in our planning is the lower number, which 17. >> what with the amount be however if you were to fund, if you're requesting the fund for 1776 versus 1917, what are we

talking about, moneywise? in other words, i know that's not the case that some of the skeptics might say that sounds like it slush fund, the factual at 776 in toys but you're asking for an for 1917 employees. what's the difference in the money? >> and for me, it's the opposite for asking money for the 1700 to within a funding of speed so you want to flex but to get to the 1900 with the money of 17 under? >> exactly right. >> could you give me the number, you're saying you might be able to save money. >> in the past would reduce the number of contractors at the fcc, very significant over the years. i think in general it's a better model, either you need someone or you don't. there some circumstances and the auctions may be an example where, for a limited period of time, contracting with an expert make sense. but for tasks that are basic

recurring tasks as a general is probably more efficient to do in us. we don't have any specific plans to do that but the team that developed the budget had that in mind. >> great. thank you. >> i just have one more question and then i will submit a couple for the record. okay? >> yes, please. without objection. >> one of the fcc's ongoing goals is to increase rock band a doctor since this is a long-term goal, applications on the internet seem to be consuming more and more bandwidth, as people move from just checking your e-mail and reading news to playing games and watching more things online. how do you define broadband? doescher definition change as people need faster speeds to fully use the internet? >> so, over time i expect that are basic definition of broadband will go up, but i would know without being too theoretical of the challenge of universal broadband is different and harder than the challenges of universal telephone or

universal electricity. because telephone and electricity were buying at the idiotic dialtone or you did it because electricity or you didn't. broadband is different. were as you point out, you could have different speeds. and so in some ways it's the first time the country is wrestling with these issues of how to promote broadband as universal service ever in the country to all people, when, it can mean different things over time. will be done at the fcc is we've done two different things. we have set goals from where the country should try to strive to on broadband. for example, we set a goal of 100 megabits to 100 people by 2020. one gigabit access in every command in the country. at the same time for universal service fund where we have to decide okay, what are we going to actually pay for, it doesn't

make sense to say we will pay for 100 megabits to everyone in the country, at least based on current usages. in the. >> translator: a few months ago we define that level as foreign megabits basically. with an ongoing obligation that the fcc to look at the uses that are essential for participation in our economy, for small business, or looking for job, for education. and making adjustments to that over time as is appropriate. >> you know, let me close by saying something that you both know already, but i think merits repeating in public. you have one of the most important responsibilities in our society, and our government. and i mean that. of course, a lot of people who work in government and who had agencies are said, they affect certain segments of the population and they don't affect others. but the most important person in corporate america is touched by your decisions, and a fourth

child in a classroom in a rural area or the inner city is touched by your decisions, too. and i think you're challenge concerning what i face should be your mission is to make sure that while we don't interfere with those up here ability to use the internet, to use technology, to move ahead, that we leave no one behind. and we are running the risk already of leaving a lot of people behind, and you should always keep that in mind. and also something are not allowed to comment on, i know, but you one of those greatest jobs around because you know before we know what's being tested out there. we all would love to know what is next but i know you can't tell us what we would rush to the market more. but for my part i want to thank you for your testimony. 90 for your work. we disagree at times on some issues, but in general we like, we approve of the work you are doing and just keep doing it. and remember, that broadband for

all folks. it's abroad, not just one. thank you. >> thank you, mr. serrano. by the way, because mr. serrano is probably one of the most technical savvy members of congress, you might be responsible on your own ipad can you're probably consuming half speed is just what i am watching baseball. >> i didn't realize the yankees were on one of the channels. >> the yankees are throughout the world. there's baseballand then there's the yankees. >> let me thank both of you for your service. i also echo the words of our colleagues. and i also want to finish, as a sort of the i want to thank you for being exceedingly accessible to me and my staff. yours have been, and i know we'll get to the answers to some these guys were better this meeting is adjourned. thank you. >> thank you very much.

[inaudible conversations] this is he's been through with politics and public affairs programming throughout the week. every weekend, 48 hours of people and events telling the american story on american history tv. get our schedules and see past programs at our website. you can join in the conversation on social media sites. >> and now to london for prime

minister's question time life in the british house of commons. every wednesday while parliament is in session, prime minister david cameron takes questions from members of the house of commons. prior to question time, the house is wrapping up other business. this is live coverage on c-span2. ..

>> meetings later today. >> thank you, mr. speaker. small business is concerned that britain suffers from a single culture. does the prime minister agree that an example should be set and those -- [inaudible] football match is setting a very bad example? >> my honorable friend does make an important point. we do have a rob, and i have to -- problem, and i have to report, mr. speaker, the problem can sometimes go to the top.

i think the question is as well as knowing the miracle cure, i think there is an important question which is what was it that first attracted him to the multimillionaire of the football club. >> ed miliband. [cheers and applause] >> mr. speaker, following the prime minister's recent trip to washington, we now know that the timetable for the withdrawal of british and international combat forces in afghanistan will be reviewed at the nato summit in chicago in may. the prime minister has previously set our timetable that would see combat operations for british troops cease by 2014. given the recent statements about an accelerated statement for the french troops, can the prime minister confirm the government's position going into

that summit? >> first of all, let me take this opportunity to once again pay tribute to the magnificent work that our troops to in afghanistan. we had another reminder yesterday of the very high price that we've paid. in terms of the program of withdrawal, what i've said absolutely stands which is that we will not be in a combat role in afghanistan after 2014, nor will we have anything like the number of troops we have now. we will be performing a training task, particularly helping with the officer training academy. between now and then it's important that we have a sensible profile for the reduction in troop numbers. that should be largely based on the conditions in terms of the three parts of helmand province that we're still responsible for. what i discussed with president obama in america is making sure that in 2013 if there are opportunities to change the nature of the mission and be more in support rather than a direct combat role, then that's something i think everyone will

want to see. we can make further progress on that issue at the chicago summit and announcements later in the year about that. >> ed miliband. >> mr. speaker, i know he will keep the house informerred of -- informed of any change in the british position and, indeed, any precise timetable and any evolution of that. i'm sure he'll also agree in the wake of the tragic killing of afghan civilians last week, that is something we all abhor, but we must carry on with our mission. now, president karzai has said troops should be confined to their main bases. does he agree me while international troops are there, they must be able to perform their role of protecting the afghan population, and can he tell us what constitutions he's had -- discussions he's had with president karzai? >> obviously, our teams are in permanent contact in terms of

afghanistan, and i myself speak to president karzai regularly. obviously, what happened in afghanistan with the dreadful shootings carried out by the rogue american soldier is a dreadful event, and that must be properly prosecuted and dealt with for what it was which was a mass murder, and i know president obama takes that view very strongly. in terms of making sure that we work with the afghans, as i've said, the key is making sure that we transition in the three parts of helmand that we're responsible for and that we hand over to afghan troops and that they're in the lead as soon as they're capable of fulfilling that task. i don't have any concerns at the moment about the role of british troops. they're able to carry out the tasks which they are allotted. we're making good progress in the three parts of helmand, we'll be in permanent touch with the afghans, but the finish we - we should be trying to make the

most of the transition. >> ed miliband. >> mr. speaker, i know he agrees with me that dialogue is very, very important, particularly in the light of the comments that were made. now, a few days ago the taliban suspended preliminary talks with the united states. in light of this, can the prime minister tell the house what his assessment of the significance of this is, and does he agree we owe it to our troops serving in afghanistan to be much more urgently focused on -- [inaudible] can he tell us how the british government plans to play its role in getting the political process restarted? >> prime minister. i thank you for that question. i think it is vitally important we get this right. to be fair to the last government, the last government took this view as well, the british position has always been that we need to have a political settlement in order to insure the best possible outcome for the people of afghanistan. britain has been pushing for political reconciliation and reinti gration, and i had very

productive talks with president obama last week because the american view is now the same. they want to support that political process. of course, the taliban have said what they said last week, and i would just make this point. we are committed to handing over to the of afghan government, military and police and the numbers are on track, we're committed to doing that at the end of 2014. we believe that can happen even without a political settlement with a satisfactory outcome to the united kingdom, but clearly it would be better if it was accompanied by a political settlement. now, the work for that including setting up a taliban political office is well, is progressing well, and i believe it's in everyone's interest that we keep pushing that agenda. but the taliban should be in no doubt. there are the opportunities for a political settlement if they give up voins, renounce al-qaeda. but be they don't take those accepts, we will continue to

defeat them every time they raise their head. >> simon hart. >> thank you, mr. speaker. i know the prime minister will agree that -- [inaudible] is a fantastic charity. typically needs to raise about 5,000 pounds a year. will he support my efforts to make it easier for charities to get the gift aid that they're due? >> well, first of all, let me join my honorable friend in paying tribute to the ambulance service. they save many, many lives. we are providing three billion pounds a year in tax relief for charities of which gift aid makes up around a billion, and that's taking it up to 5,000 pounds, and i think that will be a significant help to great charities like the one he mentioned. >> ann. >> thank you, mr. speaker. when the disability minister came to wales last week, she

said it was for others to consider whether budgets should be devolved to wales. i think when she said "others," she meant you, prime minister. as you know, the welsh government has already said it's committed to supporting the workers in wales. will you, therefore, devolve the -- [inaudible] for the welsh factories in next three years in order to insure that all those factories can have a future, do have a future? >> i will look carefully at the probably the honorable lady puts forward so long as it's very constructive. whether this decision is reserved or dissolved -- sorry, reserved or devolved, it doesn't mean you don't have to take difficult decisions. we did ask the chief executive to look at this issue, and the outcome she proposed is supported by mencap, disability

wales, center for deaf and blind and the center for mental health. and the point is this, government funding allows for half a billion pounds over five years, but even that isn't enough to keep those fact ris open, and the reason for that is access to work rewards are around 2,900 pounds per disabled. so if aim of policy is to use the money that we have to support disabled people into work, you can understand why the review came to the decision it did. >> gavin williamson. >> thank you, mr. speaker. the last few weeks have seen the start of the 350 million pound construction of land rover's new -- does my right honorable friend agree this is a sign of growing confidence and belief in british manufacturing which is in stark contrast to the

destruction -- [inaudible] >> well, i think my honorable friend makes an important point. the jaguar/land rover news is excellent news for british manufacturing and for british car making. and the good news is that what's happening in the car industry is not confined to jaguar land rover. if you look at nissan, honda, toyota, they are all expanding across our country, and that's very good news for british manufacturing. >> [inaudible] >> thank you, mr. speaker. on the bus to the commons today, i revealed to a fellow passenger that i was a member of parliament. [inaudible conversations] after some light-hearted and customary abuse, our conversation went to life, the universe and commuting. can the prime minister tell me and the man on the omnibus if that, too, needs to cost me 90

pence, how much does that cost me today and -- [inaudible] >> the point i would make is that ten, ten -- [inaudible] twice promised to relieve fares, but boris pays his taxes and ken doesn't! [cheers and applause] >> order. jane ellison. >> on that very subject, i look forward in the budget later to measure tax avoidance that would lead the prime minister to agree with me that people seeking high office in public life should set a better example. >> i think the honorable lady makes an important point, and i have to note what ken livingston has said is, he's said if he's elected mayor of london, he will then fully pay his taxes. [laughter] it's not for me to hand out political advice, but my advice would be to pay them before the

campaign gets going. >> john pryor. >> thank you, mr. speaker. does the prime minister recognize that the introduction of regional pay would set hospital against hospital and school against school? and yet it would almost certainly push up the overall cost of public sector pay? unless he can give us a guarantee here today that if he introduces regional pay, it will bring down the overall bill? >> what i'd say to the honorable gentleman is the last government introduced local pay into the court service, so the idea of looking at local pay for some public services is not some alien concept, it's a perfectly sensible thing to look at. and i also say his front desk suggested we look at local benefits, so surely he should be in favor rather than against. >> mr. richard drax. >> [inaudible]

[laughter] >> i saw the prime minister -- i'm sure the prime minister praises the work of the helicopter service around our country. does he share my concerns that the last of the portland search rescue helicopter in 2017 will threaten the lives of my constituents and damage the integrity of the search and rescue service on the south coast? >> i totally agree with the honorable gentleman that a reliable search and rescue service is absolutely vital. we have looked at keeping the sea king helicopters which is one of the things he suggested, but they wouldn't be able to provide a service as good or capable as a modern fleet of helicopters, that's why we're planning the changes, and can we believe that should provide faster flying times and a more reliable service. >> ed miliband. >> mr. speaker, following last year's riots, the prime minister

came to the house and said we will help you repair the damages, get your businesses back up and running and support your communities. last week a report by the metro o poll tan police revealed the number of claims, only half have been settled since last august. does the prime minister agree with me this is simply not good enough? >> i do agree. that's specifically why we've also introduced a thurm of extra funds run by the department for community and local government, and i think those funds have paid out faster. the riot damages act is right in a way to have this piece of legislation, although it is quite out of date, but it does take time to make those payments, and i'll certainly do what i can to chase them out. >> ed miliband. >> mr. speaker, we're eight months on from the riots. now, the deputy prime minister, the deputy prime minister hosted a reception -- i think the honorable gentleman opposite should listen to this very

important issue about the riots. now, at a reception last week organized by the deputy prime minister, he and i met the owner of a supermarket which was razed to the ground during the violence on august the 8th. she is still waiting to receive any compensation. does the prime minister agree that eight months on, that's just not right, and does he further agree with me that, ultimately, it is the government's responsibility to make sure she gets the compensation she deserves? >> i agree with the right honorable gentleman, i'll rook into that specific case -- i'll look into that specific case. i introduced the act to get monies out faster. if he likes i'll put in the library of the house of commons a set of informations about what those funds did, where we've got to with the riot damages act, and also i'll look into the individual case he mentioned. >> mr. speaker, people who haven't been helped by that money and can't get hem. mr. speaker, three things need

to happen to make good on this. first of all, there needs to be proper information on the payments made under the riot damages act, the matter of urgency because there is -- [inaudible conversations] no, there was one report, they said there is information. there is information from the metropolitan police, but the reality is the information available is very patchy about what is happening around the country. so, firstly, we need proper information. i ask him to nominate a minister in the home office, and thirdly, can he promise to come back to the house with a clear indication of when 100% of legitimate claims will be properly settled? >> i'm certainly happy to come back to the house, as i said, putting an answer in the house of commons, and i agree, about all this information. on the individual case he mentioned, i understand it was a multiple claim because it was a shop also with a number of flats above it, but i accept eight months is too long, so we'll make progress on that individual case, and the honorable member

in the home office who's the policing minister is taking the lead on this. but i've also held follow-up meetings to make sure the money is paid out. >> [inaudible] >> thank you, mr. speaker. the prime minister may be aware that the strategy which provides support for injured servicemen has recently changed its name. in order to raise awareness of this name change, will the prime minister join with me in visiting their new residential center in order to see the wonderful work firsthand they do in supporting our veterans? >> perhaps i will be able to schedule a visit before long. i'd like to put on record my thanks for the tireless and highly professional way that they ais cyst former service -- assist former service personnel who tragically lost their sight. i think he pays them compliment by explaining their name so people know who they are. we have a huge debt to pay to former service personnel.

they have done extraordinary things on behalf of their country, and we need to look after them through their life, and my right old friend, the chancellor, will be making announcements about that in his budget. >> ian lavery. >> thank you, mr. speaker. the prime minister under or his government said unemployment would fall year over year, and here we are at this moment in time with a 70-year-high record in unemployment. 55.4 people seeking every job vacancy. the regional growth fund is supporting only four businesses. why should the 550 workers -- [inaudible] and that many others lose their job -- [inaudible conversations] >> the prime minister. >> well, first of all, on the specific case of the rio tinto plant, i know how important that is, and we're working with the council and the company to do what we can to help get those people work, though i understand

rio tinto are still in negotiations with the potential purchaser of their plant. what i'd say to him about employment and unemployment is, clearly, we need more jobs in our economy. but since the election we've had over 600,000 new jobs in the private sector. the level of employment in the country is up by around 250,000, and there are fewer people on out-of-work benefits now than there were at the time of the election. and in terms of what's happening in the northeast, we should also celebrate the good news, the fact that nissan is creating 2,000 jobs, the fact that hitachi is building a new plant, the fact that new castle airport is expanding, we should be talking up the northeast instead of talking it down. >> alan reid. >> thank you, mr. speaker. a cargo vessel on a small island showed the need for the coast

guard that have recently withdrawn from service. will the prime minister, please, look into this as a matter of urgency for getting a future tug in the place? >> prime minister. >> i know this issue is being looked into at the moment, so i'm very happy to write to the honorable gentleman and give him the details. i know he represents island communities that can be extremely cut off particularly during the winter months, and i will write to him about that. >> question number seven, closed question. mr. graham allen. >> question seven, mr. speaker. >> well, first of all, relate me pay -- let me pay tribute to the work the honorable gentleman does in this area. early intervention is absolutely essential, that is how we're going to improve the life chances of the least well off in our country and generally lift young people and children out of poverty. we'll base funding decisions on what comes out of the first two year, but the early intervention

grant is going to rise next year. >> mr. graham allen. >> i thank the prime minister and, indeed, the leaders of all parties for their continuing support for early intervention. early intervention not only helps babies, children and young people develop the social and the emotional capability to make the best of themselves, but it saves the country billions of pounds in the long rub. run. would he and, indeed, the chancellor take this as the first representation not for today's budget, but for next year's budget? would he continue framing next year's budget around early intervention bringing forward some proposals to stimulate the social finance market that we heard about in earlier questions and move 1% only of departmental budgets from late intervention to early intervention? >> prime minister. >> in terms of budget submissions, that was definitely an example of early intervention, so i praise him for the work that he's done.

as he knows, we're going to be setting up the early intervention foundation that is going to be funded in order to make the argument that he has put very effectively whichever side of the house he's been sitting on for very many years. i'll certainly discuss this with my right honorable friend, the chancellor. we're trying to look at all the mechanisms we have whether it's backing nursery education, making sure the early prevention grant is going up, of actually putting the money in early to actually change people's life chances before it's too late. >> thank you, mr. speaker. the highest business growth in the whole of the united kingdom -- [inaudible] thanks to a conservative council that is open for business and a conservative-led government that is effective -- [inaudible] will the prime minister come to harlow so we can show britain how to lead the economic recovery? >> in danger of being accused of watching too much television, i think you can summarize this

question and say the only way is essex, and i know he speaks up for his county. what i would say is congratulate harlow on the fantastic achievement they have. the government wants to play its part, not least the enterprise zone that we hope will create 5,000 new jobs. >> marry lyndon. >> thank you, mr. speaker. over 7,000 hard working families depend on tax credits to make ends meet, yet less than 200 people have to pay top tax. which of these groups does the prime minister think needs the most support in the chancellor's budget? >> prime minister. >> what i can tell the honorable lady is we've increased the child tax credit by 255 pounds last year which was the biggest increase in its history, and it'll go up by about 135 pounds this year. and in terms of the very richest in our country, let me reawe sure her, after this budget, they'll be paying more in tax.

>> simon hughes. >> as well as the liberal democrat priority to lift the tax hold to 10,000 pounds, can the prime minister agree that one of the best ways of helping -- >> order! mr. hughes must be heard. simon hughes. >> does the prime minister agree one of the best ways of helping families on low and medium income is to build all affordable housing and give labour's legacy -- [inaudible] 50,000 families on the waiting list. there will be more affordable housing in london -- [inaudible conversations] >> well, we do want to get our housing market started again including more affordable house, and that's why the higher right to buy discounts, that money is going to go back in tward building affordable homes. we're doing more to kick start those places that have planning permission but can't get

underway because of finance, and that's why we're putting extra money into that scheme to make sure building takes place this year or next year. >> john mcdonald. [inaudible conversations] >> some of the information used by consults associations to blacklist trade unions must have come, could have only come from the security services. when 3,000 celebrities have their telephones hacked, the government set up a public inquiry. the home secretary went -- [inaudible] many are of them have lost their livelihoods. why is there one route to justice for celebrities and another for working people? >> there is one law that has to coffer everybody in this land, and if there is any accusations of wrongdoing, that is something that the police who are completely independent of government can investigate. and that is what should happen. but let me say to the honorable gentleman, i say that on his

behalf, but he could do something on even else's behalf. he runs the right to work campaign that is stopping from young people from getting work experience. if he cares about responsibility for young people, he'll give up that left-wing organization. >> jesse norman. >> thank you, mr. speaker. my -- [inaudible] has below average household income, but public funding for schools and health care has for a long time been only of the lowest in the country. does my right honorable friend share my view this is unfair, and will he personally support measures to get a fair deal for my county and other similarly-affected rural areas? >> he will know we are looking at the funding formula for schools, and we want to try and make it simpler so people can see what the criteria are and why their area receives the money that it does. but at the same time we're also introducing the pupil premium which will mean that parts of

the country like his where there are quite high levels of deprivation will get specific funding for those children on free school meals, and that should help those schools that need the money the most. >> debbie abrahams. >> will the prime minister do the honorable thing and publish -- [inaudible] including the action that's needed to mitigate the risks that will -- [inaudible] >> what i'd say is that, um, as far as i can see we have actually voted in this house of commons twice on the same issue, and on both occasions -- thank you, mr. speaker -- there was a significant majority in favor of the government's position. and i would also, i would also add, i would also add that the last government had many, many opportunities to publish risk registers, and they didn't do it. >> i always appreciate the prime minister's gratitude, i'm sure. nick bowles. >> thank you, mr. speaker. for ten years or more, leading conservatives like the noble

lords have argued for working people and pensioners on low incomes to be taken out of income tax altogether. [laughter] does my right honorable friend agree that this is a thoroughly conservative idea? [laughter] [cheers and applause] whose time has truly arrived? >> what i would say to my honorable friend is almost uniquely i'm not going to prejudge what is in the chancellor's budget. but i think we can see in reference to what he says, this is, if you like, mr. speaker, a kaleidoscope budget. [cheers and applause] >> i'm so encouraged that the prime minister's using my

language! [laughter] good on him! >> thank you, mr. speaker. the prime minister may recall that at a time of strategic defense and security review he described it as a mistake and an error to use the vertical landing of the joint strike fighter. as the ministry of defense is about to perform a u-turn on that decision to rescind that original decision, doesn't he now accept and understand that the real mistake in error has been a defense review that has been inadequate and is fast unraveling? >> the real mistake and error was inheriting a 38 billion pound black hole in the defense budget, and to pay tribute to my right honorable friend what he wants is to be the first defense secretary in a generation, frankly, to announce a balanced and funded budget for defense for this year and for many years to come. that is what we're discussing. we will look at all of the evidence, all of the costings,

and costings, as he will know, change in defense. but i do make this pledge. unlike previous governments, we won't just plow on regardless and make wrong decisions for political reasons. >> order. we come now to the main business. [laughter] [inaudible conversations] >> order, i should inform the house that the bill on today's paper is not being presented. before i call the counselor of the exchequer, it will be con convenient to remind members that copies will be available to them in the vote office at the end of the speech. it is not the norm to intervene on the chancellor of the exchequer or the leader of the opposition as was stated last year. mr. chancellor of the exchequer, the right honorable george

osborne. [cheers and applause] >> mr. deputy speaker, this budget rewards work. britain is going to earn its way in the world. there is no other road to recovery. this budget supports working families and helps those looking for work. it unashamedly backs business, and it is on the side of aspiration, those who want to do better for themselves and for their families. this budget reaffirms our unwavering commitment to deal with britain's record debt. but because we've already taken difficult decisions, this could also be a reforming budget that seeks to repair the disastrous model of economic growth that created those debts. a model that saw manufacturing almost half as a share of our

national economy while the national debt doubled. mr. deputy speaker, this is how britain will earn its way in the world, with far-reaching tack reform, with a is simpler tax system where ordinary taxpayers understand what they're being asked to pay, with a tax system that is more competitive for business than any other major economy in the world, a tax system where millions of the lowest paid are lifted out of tax altogether. [cheers and applause] while the tax revenues we get from the wealthiest increase. but reforming tax is only part of the story. we will earn our way in the world by saying to all business large and small, we will provide you with a modern infrastructure, new growth-friendly planning roles and employment laws, the kinds that schools and universities and colleges our future work force needs. and in return you, british

business, need to have the confidence to expand, hire, innovate and be the best. we earn our o way in the world if we stop being afraid to identify britain's strength and reinforce them again, backing industries like aerospace, energy, pharmaceuticals, creative media and science. creating a more balanced national economy where financial services are strong, but they are not the only string to our bow. mr. deputy speaker, stability comes first, and the report from the office for budget responsibility reminds us today of the risks to stability. despite the welcome action by the european central bank, the impact of the sovereign debt crisis on the european economy has been significant. italy, the netherlands, belgium and others are now in recession, and germany's economy shrank in the last quarter. in today's report the obr are sharply revising down their

forecasts for euro area growth by .8% to -.3%. their forecast for world economic growth is also revised down over the next two years by .2% and .3% respectively. of course, britain is not immune from these developments in our largest export markets, and the ovr state today that the situation in the euro area remains a major risk to our forecast. another risk they identify is a further spike in oil prices, and there is no doubt that the high oil price driven both by real demand is and the iranian situation is of great concern across the world. it means that the ovr's overall assessment of the outlook and risk to the british economy is broadly unchanged since last november's report. despite these headwinds, there are, however, some more positive signs.

the ovr expect the british economy to avoid a technical recession with positive growth in the first quarter of this year. they say that the british economy has, in their words, carried a little more momentum into the new year than previously anticipated. indeed, the office of budget responsibility is slightly revising up their growth forecast -- [inaudible conversations] to .8%. they may forecast 3% next year, .7% in -- >> order, order. i know the house has to breathe. but we want to hear from the chancellor of the exchequer, and we can't do that. counselor of the exchequer. >> it then forecasts 2% next year, 2.7% in 2014 and 3% in both 2015 and 2016. the obr's forecast unemployment rate is the same as it was last

autumn, they expect to peak at 8.7% before falling each year to 6.3% by the end of the forecast period. but they have revised down their estimates of the claimant count which they now expect to be around 100,000 lower in each of the next four years than they previously forecast peaking at 1.67 million this year rather than the 1.8 million they forecast in november. and they, and they forecast one million more jobs in the economy over fife years -- five years. inflation is expected to fall throughout the period. from 2.8% this year to 1.9% next year and then 2% by the end of the forecast period. i am today writing to the governor of the bank of eckland to reaffirm the inflation target of 2%. the government's credible and responsible fiscal policy allows the independent bank to pursue a

policy consistent with targeting low inflation. i confirm that the asset purchase facility will remain in place for the coming year. so unemployment is growing, inflation is coming down, and so, too, is the deficit. when this government came to office, the budget deficit stood at over 11%. the state was borrowing one in four of every single pound that it spent. today i can report that the deficit is falling, and it's forecast to reach 7.6% next year. the share of national income taken by the state will have fallen from almost 48% when we took office to 43% next year. we must stick to the course so there will be no deficit-funded giveaways today. but because we've taken difficult decisions, nor do we need to tighten further. over the five-year period, this is a fiscally-neutral budget achieved through a modest reduction in both taxation and spending. so, mr. deputy speaker, let me

turn to those fiscal forecasts. the whole house will be thesed to know that these have improved a little from the forecasts i presented in november. borrowing this year is to come in at 126 billion pounds. one billion pounds that i forecast in the autumn and over 30 billion pounds a year lower than its peak, the year we came to office. borrowing will then fall to 120 billion next year if you exclude the transfer of royal mail pension assets. it will then fall to 98 billion in 2013-'14, then 75 billion, then 52 billion reaching 21 billion by 2016-'17. so in total borrowing is 11 billion pounds less than i last forecast in the autumn, and this will be used to pay down debt. in my first budget, i set the government the fiscal mandate of achieving a sickly

create-adjusted -- cyclically-adjusted balance, and the obv confirmed we are on course to achieve that mandate and have eliminated the current structural budget by 2016-'17. they also confirmed we are on course to reach our target for debt to be falling as a percentage of national income by the end of of the parliament in 2015-'16. public sector is set to peak at 7.3%, almost 2% lower than previously forecast before falling the following year. a balanced structural current budget and falling debt, our deficit reduction plan is on course and, mr. deputy speaker, we will not waver from it. to do so would risk a sudden loss of confidence and a sharp rise in interest rates, and we will not risk that. instead, we reinforce today our commitment to fiscal responsibility not just this year, but in the years ahead.

the transfer of the 28 billion pounds of assets from the royal mail pension fund of the exchequer will free it from its crippling debts, insure the pensions of hard working taffe are paid and help to bring in new private sector investment. and some would have been tempted to spend the windfall. i do not propose to spend it. instead, i've used it to pay off debt. here, here! >> we will also maintain our control on welfare spending. the passing of the welfare reform act two weeks ago was an his torque moment, and i -- historic moment, and i pay tribute to the work of the pension secretary and to all my coalition colleagues for supporting him against determined opposition from those who defend unlimited welfare. but even with the act the welfare budget is set to rise to consume one-third of all public spending. if nothing is done to curb welfare bills further, then the full weight of the spending

restraint will fall on departmental budgets. the next spending review will have to confront this. so i am today publishing analysis that shows that if in the next spending review we maintain the same rates of reductions in departmental spending as we've done in this review, we would need to make savings and welfare to have ten billion pounds by 2016. we will also address the rising costs of an aging population and the burden this places on future generations. we will be publishing a white paper on social care. i've also said that we would consider proposals to manage future increases in the state pension age beyond the increases already announced. i can confirm today that will will be an automatic review of the state pension age to insure it keeps pace with increases in longevity. details of how this will operate will be published alongside the obr's fiscal sustainability

report this summer. one area, mr. deputy speaker, where government spending is expected to be lower than planned is, as the prime minister just indicated, afghanistan. we were reminded again yesterday of the sacrifice so many of our servicemen and women is have made, and as the prime minister made clear with the u.s. president last week, u.k. forces will cease combat operation by the end of 2014. as a consequence, i can tell the house that the cost of operations which are funded by the government's special reserve and entirely separate from the defense budget are expected to be a total of 2.4 billion pounds lower than planned over the remainder of the parliament. the full cost of operations will continue to be met from the reserve, and our brave armed forces will get the equipment they need to complete the job. but i can insure that some of the benefit of the lower cost is felt by those who fight so hard and give so much for our

nation's security. we will fund an extra 100 million pounds of improvement in the accommodation of our armed forces -- >> here, here! >> i will also double the families' welfare grant which is used to provide additional support to families left behind when people deploy. we've already doubled the operational allowance. today i am doubling the rate of council tax relief. the thousands serving our country in operations overseas will receive 100% relief on an average council -- [inaudible] mr. deputy speaker, our commitment to reduce the deficit is keeping interest rates low. we take measures to insure that the benefits of those low market interest rates are felt across the economy. they are certainly benefiting the taxpayer thanks to the reduction in the deficit and our low interest rates. this government is saving a total of 36 billion pounds in debt interest payments compared

to its predecessor. this year is the 400th anniversary of the creation of the treasury board and the modern treasury. there have been times recently when the treasury has been borrowing money more cheaply than at any previous time in that 400-year history. and few countries in europe could say that at the moment. this reflects the confidence investors have in britain's ability to pay its -- >> here, here! >> i now want to test whether we can extend these benefits further into the future and diversify our portfolio. at present the longest guild we currently offer to the market is 50 years. the debt management office will consult on the case of issuing guild longer than 50 years, something britain last was able to do six decades ago. we are also taking the opportunity to rebuild britain's

reserves which have fallen to historically low levels. i can confirm, mr. deputy speaker, our gold holdings have prisonnen in value to 11 billion pounds. sadly, this does not include the 400 or so tons of gold sold a decade ago for two billion pounds which would now be worth six times that at over 13 billion pounds. mr. deputy speaker -- [inaudible conversations] >> order! >> working families are already being helped by historic low mortgage rates. the new buy scheme that we introduced last week used the government's balance sheet to help those who cannot afford the large deposits. it comes alongside a new, reinvigorated right to buy and to insure that there are new homes to buy, we are today

expanding the britain building fund that provides up-front finance to construction firms. we are also passing on our low interest rates to small businesses through the national loan guarantee scheme. this started operation yesterday. barclays, lloyd, the rbs are all involved. 20 billion of guarantees in total will be available. in the autumn statement, i also allocated one billion pounds to invest in funds to lend directly for the mid cap businesses that are the backbone of our economy. this is an alternative source of finance for the banks. the response has exceeded our expectations, 24 funds have submitted proposals. i am today short listing seven of them, and such has been the quality of the bids, i am also today expanding the enterprise finance guarantee. credibility, the low interest rates they bring and passing those low rates to families and

businesses, these are necessary for growth, but alone they are not sufficient. and as a nation we have to make a choice. this country became seduced by large deficits and the illusion of cheap finance. now, do we watch as the brazils and the chinas and the indias of this world power ahead of us in the global economy, or do we have the national resolve to say, no, we will not be left behind, we want to be out in front? and that is this government's resolve. under this government britain has moved into the top ten of the most competitive places in the world to do business, but we have to do more, and here's how. first, exports. over the last decade, our share of world exports shrank as germany's grew. we sold more to ireland than to brazil, russia, india and china put together. that was the road to britain's

economic irrelevance, and we want to double our nation's exports to one trillion pounds this decade. so we're expanding u.k. export finance and setting out new plans to help smaller firms in new markets. exports abroad must be accompanied by investment at home. britain has a reputation as a remarkably open and welcoming place for investment. we must never allow protectionist rhetoric to creep into our political system. >> here, here! >> instead, we're actively seeking investment from overseas pension and sovereign wealth funds and working to develop london as a new offshore market for the chinese currency. we also want investment from british pension funds and british infrastructure, and we're now working with a dozen of the large pension pension schemes specifically on that. we're the first british government to set out a national infrastructure plan the projects we're going to prior toize in the -- prioritize in the coming decade.

the roads, railways, broadband networks we all need and we have identified. i also believe this country must confront the lack of airport capacity in the southeast of england -- [inaudible conversations] we cannot cut ourselves off from the fastest growing cities in the world. and the transport secretary will set out government thinking later this summer. we want to look at the opportunities for increasing the role of private investment in the road network, learning lessons from the water industry. and i confirm today that network rail will extend to the northern hub adding to the electrification of the railways by upgrading the hope valley between manchester and sheffield and improving the manchester to bradford lines. for years, for years transport

investment in the north of england was neglected. not under this government. [cheers and applause] we are working with our greatties to devolve decision making powers, and we are striking a groundbreaking deal this week with manchester to support 1.2 billion pounds in growth-enhancing infrastructure in that city. we will support 150 million pounds of tax increment financing to help local authorities promote development, and we will provide an extra 270 million pounds to the growing places fund. in all this we are working with local areas to support their ideas for growing the private sector in parts of the country where the state has taken a larger and larger share of the economy. mr. deputy speaker, the major of london is also a very effective champion for the city he runs so well. [cheers and applause]

we will work with him on plans this summer to go on investing in london transport, lengthening commuter trains, extending the underground and exploring new river crossings in east london. so from the allocation made for the major through the -- mayor, he will be creating a new 70 million pound development fund to attract new business and new jobs. >> here, here! >> and the mayor has persuaded me of the opportunities the new royal dock enterprise zone offers our largest city if we also enhance capital allowances there, so we will. mr. deputy speaker, 24 enterprise zones are now going ahead across england. chinese investment is pouring into the zone in liverpool, the zone in the west midlands is already expanding. i want other parts of the united kingdom to benefit from these

policies. and the chief secretary can confirm today that we will offer enhanced capital allowances for businesses starting up in the new scottish enterprise areas in dundee, irvin and there will be a new welsh enterprise zone while we look forward to the first sewer prize zone -- enterprise zone in northern ireland. i also want to see investment in renewables. we've launched the green investment bank, open for business next month. we've introduced the price to our tax system to encourage investment, and we set the rate today. combined heat and power plants will not be liable to carbon price support rates on fuels used for heat. renewable energy will play a crucial part in britain's energy mix, but i will always be alert to the costs we're asking families and businesses to bear. environmentally sustainable has to be fiscally sustainable as well. the carbon reduction commitment was established by the previous

government. it is cumbersome, bureaucratic and imposes unnecessary costs on business. so we will seek major savings in the administrative costs of the commitment for business, and if those cannot be found, i will bring forward proposals this autumn to replace the revenues with an alternative environmental tax. gas is cheap and has much less carbon than coal and will be the largest single source of lek terrorist in the coming -- electricity in the coming years. and the energy secretary will set out our strategy in the autumn to secure investments. and i also want to insure we extract the greatest possible amount of oil and gas from our reserves in the north sea. we are today introducing a major package of tax changes to achieve this. we will end the uncertainty over decommissioning tax relief that has hung over the industry for years by entering into a contractual approach, and we are also introducing new allowances including a three billion pound new field allowance for large

and deep fields to open up west of shetland, the last area of the basin left to be developed. a huge boost for investment in the north sea. >> here, here! [laughter] >> now, mr. deputy speaker, we shouldn't be shy about identifying our successful industries and reinforcing them. around one-fifth of the world's top 100 medicines originate from u.k. research, so we're backing our life sciences sector through creating the -- [inaudible] and cutting taxes on patients to make this one of the most attractive places in the world to invent new medicines. we've protected the science budget, now we're committing 100 million pounds of support alongside the private sector for investment in major new university research facilities. and with the world's second largest aerospace industry, we will also establish a u.k.

center for aerodynamics that will encourage innovation in aircraft design and commercialize new ideas. and today we also set this industrial ambition, that we turn britain into europe's technology center. we will start with digital content. the film tax credit helped generate over a billion pounds of investment in the u.k. last year alone. today i am announcing our intention to introduce similar schemes for the video games, animation and high-end cd production industry. not only will this help stop premium british tv programs like birdsong being made abroad, it will also attract top international investors like disney and hbo to make more of their premium shows in the u.k., it will support our brilliant video games and animation industries too. because, mr. deputy speaker, it is the determined policy of this government that we keep wallace and grommet exactly where they

are. [cheers and applause] >> order, order! order, order! i would have thought that the government's side would want to hear more from the chancellor. [laughter] >> mr. deputy speaker, to be europe's technology center, we also need to be -- have the best technology infrastructure. two years ago britain had some of the slowest broadband speeds in europe. today our plans will deliver some of the fastest with 90% of the population having access to super fast broadband and improve mobile phone coverage for rural areas and along key roads across the u.k. but we should not be come play sent by saying it's enough to be the best in europe. so today we're funding ultra fast broadband and wi-fi in

ten of the u.k.'s largest cities. belfast to birmingham, bradford, bristol, manchester, leeds and london. now, my honorable friend from brighton campton asked me to help small cities too -- no doubt with his own city in mind. i agree, 50 million pounds will be available for smaller cities, too, and the fastest digital speeds in the world available in our cities with the most connected countryside in europe, the most created digital continent everywhere. that is what a modern industrial policy looks like. and the business secretary and i have asked michael to review by the autumn how government spending departments and other public bodies can work better with the private sector on economic development. from liverpool to canary, michael knows how it's done. and, of course, these projects succeeded, these projects

succeeded because they were not killed off by the planning system. you can't earn your future if you can't fete planning per -- get planning permission, and global businesses have diverted specific investments that would have created hundreds of jobs in some of the most deprived communities in britain to countries like germany and the netherlands because they can't get planning permission here. that is unacceptable. and next week my right honorable friends, the community secretary and the planning minister, will publish the results of our overhaul of planning regulation. we're replacing a thousand pages of guidance with just 50 payments. we're introducing a presumption in favor of sustainable development while protecting our most precious environments. the new policy comes into effect when the national planning policy framework is published next tuesday. this is the biggest resumption in business red tape ever undertaken. as