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ight the way back to families, parenting and schooling. That whole issue. I think that isequally important, if not more important.I would like to turn to the issue of rape offences in London. We have had the discussionhere before and I am aware there are some significant discussions coming back to theMPA. I think there is a very detailed report coming to the Strategic and OperationalPolicing Committee (SOP) in December 2010. I have seen the report. I think it is a verygood report. It goes into some considerable detail around the activities of our newSapphire Command and I think that will be a very interesting debate. Then I am alsoaware that comprehensive research is set up and I think we are bringing that back to theMPA in March 2011, which is that longer term piece of work that we said we wanted toengage in; better understanding, the causations and the driving factors behind theseoffences.So far this year the number of recorded rape offence has increased by 290 offences. Thatis an increase, percentage-wise, of 21.6%. That is set against the British Crime Surveywhich indicates a flat line comparison for serious sexual offences over the most recent 12months and, actually, a reduction since 2004 and 2005. Those two facts alone indicatewhy we need to have more detailed and analytical discussions about this particularoffending. I think the report before SOP in December 2010 will actually be a very goodspur to a very good discussion and then more analysis will come to the MPA inMarch 2011.Now, as the Chairman said, I will turn to the budget. A lot has already been said by theChairman. Clearly a challenging time. We have had the initial indication of Governmentfunding and that is helpful but, using your phrase Chairman, fog on the battlefield doesremain. We cannot take decisions on that information alone and I think MPA Membersknow that. We will not know, realistically, for a goodly number of weeks yet - and I amguessing December 2010 - when things will become clear, if not absolutely clear, of howthat funding translates into both the level of general police grant and specific Governmentgrants available to the MPS.Also, as you know and I think has already been mentioned, we have significant otherincome streams, both through the Mayor and precept and local authorities and Transportfor London (TfL), and we need to find out what is the effect of their budgets and thedecisions they will make that affect our budget and our staffing.It is fair to say that the settlement, as announced, as far as we can see, is slightly betterthan we were anticipating. That is good news but I would still turn round and say thesecontinue to be very challenging times and I do not think anybody would say otherwise.They are challenging but we do live in a real world and we have to reduce costs, as theMPA has said before. We live in a real world and it is my job to make sure that we useour people and our assets to the best effect because this is hard won pounds from Londonratepayers and taxpayers.www.merrillcorp.com15