Mr. John Whittingdale (Maldon and East Chelmsford) (Con): The Minister will be aware that the fact that a private investigator had intercepted the telephone calls of a large number of people was well known at the time. He will also be aware that the chairman of News International gave a categoric assurance to my Select Committee that no other journalist, beyond Clive Goodman, had any involvement in or knowledge of that matter. Can the Minister say whether he is aware of any evidence to contradict that statement? When my Select Committee reopens its inquiry, as it has decided to do, will he ask the Metropolitan police to provide us with any information that they have that is relevant to this case?

Mr. Hanson: The allegations came to light today, we are examining them with the Metropolitan police and I obviously concur with what the hon. Gentleman has said.

T5. [284365] Mr. John Whittingdale (Maldon and East Chelmsford) (Con): Does the Minister accept that the blanket requirement to find 3 per cent. a year efficiency savings is particularly difficult for smaller local authorities such as Maldon district council? Will he confirm that there may be some flexibility in the imposition of that target that takes account of the size of the authority, as well as of its record in having already achieved savings?

Mr. Denham: That is an interesting question coming from someone who advocates a 10 per cent. cut in local government expenditure, which would have cut my Department's budget by £1 billion this year. There is a responsibility right across local government, as in other areas of government, to achieve the maximum efficiency and the best possible value for money for our citizens. I believe that the targets we have set are achievable, but I have to say that the destruction that the hon. Gentleman would wreak on local government is something we do not want to see.