This statement is primarily concerned with the peer review process for grant applications, but also covers wider issues such as confidentiality which pertain to peer review in general. The confidence of the scientific community, and of the taxpayer, that the public investment in the national science base is well managed, can be sustained only if an effective form of peer review holds. The system is, nevertheless, under pressure, and it is in everyone's interest to improve its efficiency and adapt it to meet scientific needs within the context of current policy objectives.