The security situation in the southern Iraqi city of Basra has been "transformed", with a massive drop in incidents of indirect fire against British troops in recent months, the PM has said.

In a statement to Parliament, Mr Brown said that UK troops based at Basra air station had experienced just five incidents per month since April compared to a peak of 200 per month last summer.

- Check against delivery -

Mr Speaker, nine months ago, I set out the key elements of our strategy for handing over security in Basra to the Iraqis and set out the stages for completing the tasks we have set ourselves.

We completed the initial phase on target, handing over Basra to Provincial Iraqi Control in December.

This allowed us to reduce troop numbers in southern Iraq from 5,500 in September to 4,500.

After the Iraqi Government launched Operation Charge of the Knights to enforce the rule of law in Basra - as my Rt Hon Friend the Defence Secretary explained to the House in April - the military advice was that we should pause the further planned reduction so that British troops, together with US forces, could support the Iraqis in this crucial operation.

Since then we have responded to changing needs and embedded over 800 UK personnel within the Iraqi command structure - at Divisional, Brigade and Battalion level. And the focus of the 4,100 UK forces still in southern Iraq is now on completing the task of training and mentoring the 14th Division of the Iraqi Army in Basra --- and it is right that as we do so we continue for the next few months to provide support at these levels. Other remaining military tasks - agreed with the Government of Iraq and in close consultation with our US allies - include finalizing the preparation of Basra airport for transfer to Iraqi control; and continuing to develop the capacity of the Iraqi Navy and Marines so they can protect Iraq's oil platforms, territorial waters and Umm Qasr port --- all critical to Iraq's economic future.

It is now right to complete the tasks we have set ourselves.

We expect the Basra Development Commission to publish their detailed economic development plan in the autumn.

We hope local government elections will take place by the end of 2008.

Subject to security conditions on the ground, our military commanders believe that the Iraqis will be able to take over development of Basra Airport by the end of this year.

They also expect the first stage of the general training and mentoring of the combat troops of the 14th division in Basra to be complete around the turn of the year.

And as the focus shifts from training combat troops, we will then move forward to the specific task of mentoring headquarters and specialist staffs - and our military commanders expect the 14th Division in Basra to be fully trained during the first months of next year.

Mr Speaker, as we complete these tasks - and as progress continues across these different areas - we will continue to reduce the number of British troops in Iraq.

Of course, future decisions will be based - as I have always said - on advice of our military commanders on the ground. But I can tell the House today that just as last year we moved from combat to 'overwatch', we would expect a further fundamental change of mission in the first months of 2009 as we make the transition to a long term bilateral partnership with Iraq, similar to the normal relationships which our military forces have with other important countries in the region.

The Defence Secretary and our military commanders will now work with the Iraqi Government to formulate agreement on the details of such a partnership - including the necessary legal basis - and he will report to the House in the Autumn.

So Mr Speaker, I believe it is right that having successfully trained and mentored large numbers of the Iraqi forces - and having successfully worked with the Iraqis on a new economic development strategy - we complete the key tasks we have agreed with the Iraqi Government:

    * training the 14th Division of the Iraqi army in Basra;
    * preparing Basra airport for transfer to Iraqi control;
    * pushing forward economic development;
    * providing the necessary support for provincial elections;
    * honouring our obligations to the Iraqi people;
    * and at all times ensuring the safety of our armed forces whose professionalism and dedication have brought us to this stage and whose service to our country I once again commend to the House.