I am pleased to announce the Government's continued support for the Great Britain-China Centre (GBCC), through a grant-in-aid by the Foreign and Commonwealth Office, after a recent review.

The GBCC has been a centre of expertise on China, with a particular focus on human rights, labour reform and improving the rule of law in China, since 1974. It can contribute unique skills and access to fulfilling these important functions. The Centre also provides support for parliamentary and other exchanges with China. The GBCC is a Non-Departmental Public Body (NDPB) sponsored by the Foreign and Commonwealth Office through an annual grant-in-aid of £300,000.

The Foreign and Commonwealth Office commissioned a review of the GBCC in mid-2005. The aim of the review was to examine whether the function provided by the GBCC was required, and whether the Centre's existing form as a NDPB was the best option for delivery.

During the consultation period following the review, many hon. Members expressed their views to the Government on the valuable role of the GBCC in promoting sensitive issues such as labour reform and the rule of law in China. It was judged that the arm's-length approach of the GBCC brings value-added benefit that cannot be achieved by Government. In light of these responses and subsequent work bythe GBCC and officials of the Foreign and Commonwealth Office to correct the management and control weaknesses identified in the Review, the Government have decided to maintain the GBCC's NDPB status.

The follow-up work to the review has ensured that the GBCC now has stronger financial controls, a better alignment of the Centre's work with Government policy on China and improved management oversight. Ministerial agreement to these new measures brings to an end the process initiated by the review. The GBCC now looks forward to further consolidating and expanding its position as a centre of expertise on China, widening its project base and diversifying its funding sources, including from the EU, UN and the private sector.

Throughout this period, we have appreciated the constructive and co-operative approach of all members of the Executive Committee and staff of the GBCC. The Government welcome the conclusion of the review and looks forward to continuing to work in partnership with the GBCC on China.