§ Lord Lester of Herne Hillasked Her Majesty's Government:
Whether it is their policy to seek to ensure that the Iraqi oil sector is placed under direct United Nations control until the occupying authorities in Iraq have been replaced by a sovereign Iraqi government. [HL3062]
§ Baroness Symons of Vernham Dean:United Nations Security Council Resolution 1483, adopted on 22 May, provides for all export sales of oil products to be made consistent with prevailing international market best practices. All proceeds from these sales will be deposited in the Development Fund for Iraq.
The fund will be disbursed by the authority (the UK and US, acting as occupying powers), in consultation with the Iraqi interim administration. Money from the fund may only be spent to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of Iraq's infrastructure, for the continued disarmament of Iraq, for the costs of Iraqi civilian administration, and for other purposes benefiting the people of Iraq.
Both the sale of oil products and spending from the Development Fund will be overseen and audited by an International Advisory Monitoring Board, including representatives of the UN Secretary-General, the IMF and the World Bank. The Security Council will also have oversight through the regular reporting of the Secretary-General on the board's work.
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§ Lord Lester of Herne Hillasked Her Majesty's Government:
Whether it is their policy to seek to ensure that new contracts for the reconstruction and development of the Iraqi oil sector are not made, and that any other fundamental restructuring of the sector (such as privatisation) is not undertaken, without United Nations authority. [HL3063]
§ Baroness Symons of Vernham Dean:UN Security Council Resolution 1483 of 22 May 2003 provides for oversight by an International Advisory and Monitoring Board of oil sales and spending of oil revenues. The membership of the board will include a representative of the UN Secretary-General, as well as of the World Bank and International Monetary Fund. The resolution also requires all export sales to be made consistent with prevailing international market best practices.
The resolution gives the Special Representative of the Secretary-General a role in facilitating the reconstruction of key infrastructure and promoting economic reconstruction, in cooperation with other relevant bodies.