HC Deb 19 October 1989 vol 158 cc252-4
4. Mr. Bernie Grant

To ask the Chancellor of the Exchequer what has been the negative transfer of financial resources from the 17 most heavily indebted countries since 1983 to the latest available year.

17. Mr. Graham

To ask the Chancellor of the Exchequer what has been the negative transfer of financial resources from the 17 most heavily indebted countries since 1983 to the latest available year.

The Economic Secretary to the Treasury (Mr. Richard Ryder)

Over the period 1983 to 1988 the 17 heavily indebted countries received a positive net transfer of $5.7 billion from the international financial institutions, including the IMF. In addition, they have benefited from generous treatment provided by Paris Club official reschedulings.

Mr. Grant

What is the Government's position on the rescheduling of debts for black and Third world countries? Will the Minister also tell us how that compares with the Government's position on the rescheduling of debts to racist South Africa? Does he agree with President Kaunda who said at the Heads of Government conference in Kuala Lumpur that the banks that have thrown a lifeline to the racist South African regime are nothing but blood-suckers?

Mr. Ryder

The arrangements that have been made between the commercial banks and South Africa are a matter for them. They are not the direct business of Government. The hon. Gentleman asked about the assistance that the Government have provided to Third world countries. It was my right hon. Friend the Chancellor who initiated the Toronto terms which led to so many countries in sub-Saharan Africa being assisted.

Mr. Key

My right hon. Friend the Chancellor is to be congratulated on achieving leadership in the rescheduling of debt, particularly in sub-Saharan Africa. Does my hon. Friend agree that if only countries such as Zambia would follow the lead taken by exemplary countries such as Ghana in reforming their economies and not seeking to stifle the market, their economies would not be in the mess that they are now?

Mr. Ryder

Three weeks ago I attended the Commonwealth Finance Ministers' meeting in Jamaica. It was apparent from that meeting that many countries in the Commonwealth were embarking on market-oriented policies of the type espoused by the Government but not yet by the Leader of the Opposition. Those countries include Ghana, Gambia, Kenya, India, Jamaica, Trinidad and many more.

Mr. Robert Hughes

The Minister is seeking to slide out of his responsibility for the rescheduling of debt in South Africa. Will he at least accept responsibility for the access of the South African Government to credit, borrowing and new capital? Will he give an undertaking that the Government will reject any approaches by the South African Government, especially as Mr. Walter Sisulu and the others who have been recently released have made it clear that they believe that external pressure assisted their release?

Mr. Ryder

That is exactly the same question as the one asked earlier by the hon. Member for Tottenham (Mr. Grant), and I will give it precisely the same answer. This is not a matter of direct concern to the Government; it is a matter for the commercial banks to work out with the South African Government.

Mr. Jacques Arnold

Is it not the case that the weight on the least-developed countries has been reduced by the sub-Saharan debt initiative taken by my right hon. Friend the Chancellor, and that that initiative is being followed by an increasing number of developing countries, thus assisting the Third world?

Mr. Ryder

My hon. Friend is right. Were it not for the initiative taken by my right hon. Friend the Chancellor, many countries in sub-Saharan Africa would not have been helped in this way.