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The programme of farm-scale evaluations, including the site at Munlochy, is important and scientifically rigorous research that will provide information to evaluate any long-term effects of growing GM crops under normal agricultural conditions.

To ensure that the data collected through these evaluations is representative of UK agricultural conditions an independent Scientific Steering Committee selected sites with a wide range of geographical, ecological and agricultural conditions. By selecting the Munlochy site, the committee (which includes members from the RSPB and the natural heritage agencies) has ensured that the distinctive ecology of the area is included within the research programme. As winter oilseed rape is widely grown in the north of Scotland, the site will provide valuable data on the possible impact on biodiversity, whether positive or negative, of growing a GM variety on a commercial scale in this region.

The scientific information obtained from the Munlochy trial, together with data from the UK evaluation programme, will enable informed views to be reached before decisions are taken on possible wider commercial use.

The purpose of the farm-scale evaluation programme is precisely to determine the environmental implications of growing GM crops under tightly controlled and closely monitored conditions. Consent was granted for this site to participate in the trial programme following safety assurances from the Advisory Committee on Releases to the Environment (ACRE) that the crop does not pose a threat to public health or environmental safety.

Separation distances have been put in place around the trial crop to minimise the possibility of cross-pollination with other related species. These distances are increased between the respective GM crop and a certified organic crop of oilseed rape. There is no safety or scientific justification for an organic farmer losing his organic status as a result of a farm-scale trial in the vicinity.

I am pleased to report good progress on these issues. The census date for the identification of all bovines in Scotland was last weekend and the process of cleaning up this data and entering on to the Cattle Traceability System (CTS) database has started. The aim is for completion by end-December 2000. I very much welcome the industry-wide support given to this exercise particularly at such a busy time.

Once completed this will provide a computerised record of all bovines in Scotland with unique identification numbers - which is the starting point for a fully electronic system.

I announced on 22 June a short consultancy to identify the industry's key data requirements and I have today put a copy of the final report into SPICe. It identifies industry key data requirement and also the arrangements necessary to allow electronic access to the CTS database. I am pleased to report that access systems, consistent with those recommended in the report, are already under development. I will be able to announce introduction of the new system within the next few months.

In parallel, work has been progressing on electronic identification. So far this has concentrated on detailed technical aspects of the systems themselves, to ensure that workable and durable arrangements are identified. Again I will be able to make an announcement about these arrangements within the next few months.

The Scottish Arts Council (SAC) received an application from the Old School Project in April 2000, for funding towards the costs of a study to examine the viability of providing an arts venue in Lochaber. The application looked particularly at the Old School in Fort William.

The SAC Capital Committee considered the application at its meeting on 11 July and took the decision to reject it.

The department regularly meets with senior representatives from the Scottish Crofters Union and is doing so again today. At three meetings within the last three months crofting reform issues were discussed. The SCU are also members of the Crofting Consultative Panel. Their views are therefore sought on the full range of measures which might be included in any future crofting legislation.

The Executive is committed to best value and modern government for Scotland. Ministers recognise that the staff of the Executive has made immense efforts to deliver devolution. The aim of Civil Service Reform is to maximise the effectiveness of the staff of the Executive in order to deliver 21st Century Government and make it work for the people of Scotland. The Executive is developing and implementing innovative approaches, from more participative and issue-based policy making, to continuous improvement in delivery of services by the application of information and communication technology.

To develop and lead the modernisation process, a parallel programme of Civil Service Reform is under way. The Executive's action plan focuses on key developments in leadership, business planning, performance management, diversity, and attracting and developing talent. To equip the staff to meet these challenges, training priorities have been overhauled and refocused; external recruitment is taking place at all levels; business processes are being re-engineered; and internal communications have been systematically developed and improved.

I am pleased to announce the Executive has been successful in securing an additional £3.58 million from Cabinet Office funds to support and accelerate this work. These funds will help develop corporate leadership by supporting the newly established Scottish Leadership Foundation and introducing 360 degree feedback; help to develop a new integrated business planning and performance management system; to increase diversity in the Executive by encouraging the recruitment and progression of people from traditionally under-represented groups - women, ethnic minorities, people with disabilities; to boost the range of skills and experience available by substantially increasing staff interchange in partnership with public and private sectors; to raise skills levels, especially among junior staff, by introducing formal qualifications; and to develop more flexible ways of working which exploit the potential of information technology with benefits both to staff and to the Executive.

Following the Executive's review of the Scottish Agricultural Wages Board initiated last year, and taking account of views expressed in the course of a public consultation exercise, we have concluded that the Board should continue to operate within the existing statutory framework. The next review of the Board will take place in 2004-05.

Following consultation with interested organisations, the Board of the Food Standards Agency (FSA) approved at its meeting on 20 July the followingperformance targets for the Meat Hygiene Service (MHS) for 2000-01:1. Public Health Protectiona) Reduction of microbiological hazards in meat:Fully apply MHS Clean Livestock Policy.Not to apply the health mark stamp to any meat showing visible faecal or alimentary tract contents contamination.Take effective action in slaughterhouses with low Hygiene Assessment System (HAS) scores to improve hygiene standards.b) Removal of Specified Risk Material (SRM) from the human and animal food chain:Strictly enforce SRM controls in abattoirs.2. Animal WelfareStrictly enforce Welfare at Slaughter and Killing Regulations.3. Staff TrainingProvide update training for all Principal Official Veterinary Surgeons and lead Official Veterinary Surgeons (OVSs) in enforcement (training course to be developed in liaison with FSA Legal Services).Provide update training for 33% of lead OVSs in animal welfare at slaughter (training course to be developed in liaison with MAFF Animal Welfare Division).Provide refresher training for 33% of lead OVSs in hygiene requirements (training course to be developed in liaison with FSA Veterinary Public Health Unit).All training to be completed by 31 March 2001 and to comply with Investors in People standards.4. Customer FocusProvision of high quality serviceIntroduce an independent element to MHS Appeals System.Sign up to Government Enforcement Concordat.To meet the FSA targets for customer service.Maintain full compliance with Charter Mark standards.5. Value for MoneyEfficiencyTo implement those recommendations in the Pooley report applicable to the MHS and accepted by the FSA for implementation in 2000-01.To implement those recommendations in the external efficiency review accepted, and within the timetable laid down, by the FSA Board.6. Financial PerformanceTo operate within the cash allocations as agreed with the FSA.To recover from government departments, agencies and the IBEA the full economic costs (calculated in accordance with the relevant charging legislation and accruals accounting) of providing agreed services or other work undertaken on their behalf.A copy of the consultation package on the performance targets, summary of responses and details of the assessment of these targets are available on the FSA website at www.foodstandards.gov.uk.Until 31 March 2000 the MHS was an Executive Agency of MAFF. Accordingly the MAFF Minister has published the MHS annual report for 1999-2000 in which performance against last year's targets is reported. A copy of the report has been placed in SPICe.

The increases in Scotland's budget were calculated in line with the funding arrangements set out in the Statement for Funding Policy. A revised version of this was published by HM Treasury on 18 July 2000. A copy of the publication can be found on the HM Treasury Internet site at www.hm-treasury.gov.uk/pdf/2000/sfp4.pdf.

We shall shortly publish the National Cultural Strategy which will create a framework to ensure access to culture in all areas of Scotland.