HC Deb 04 February 1964 vol 688 cc965-6
24. Mr. Prentice

asked the Chancellor of the Exchequer why economic aid from this country to developing countries amounted to £74.8 million during the first half of the current financial year, in view of the fact that the White Paper, Aid to Developing Countries, published in September, 1963, included an estimate that the total for the whole year would be within the range of £180 million to £220 million.

47. Mr. G. M. Thomson

asked the Chancellor of the Exchequer what steps he is taking to increase the flow of aid to developing countries to meet the target of £180 to £220 million announced by Her Majesty's Government in the recent White Paper on Overseas Aid.

Mr. Maudling

The figure of £180 million to £220 million given in the White Paper was not a target figure but a tentative estimate of the range within which expenditure on aid might fall in 1963–64. It is too early to give a firm forecast for the year as a whole. As the White Paper (Cmnd. 2147) made clear, the timing of aid expenditure as distinguished from commitment does not rest with us, but depends largely on the rate at which the recipients spend what we give them.

Mr. Prentice

Does the right hon. Gentleman expect an increase in the second half of the current financial year? If not, is there not clearly a growing gap between what the Government intended to happen and what is actually happening? Does not this show the case for an overhaul of the aid programmes, which can only be done by having one Minister in charge instead of the present six or seven, each with a finger in the pie?

Mr. Maudling

This is not what is happening. Our commitments are on a rising curve, but the rate at which the people who receive the aid spend the money depends upon them. I would like to see the actual expenditure of this aid closer in line with the commitment, but that rests with those who are getting the benefit.

Mr. G. R. Thomson

Is the right hon. Gentleman aware that this is the second year in which this situation has arisen? Last year suggestions were made to try to prevent recurrence of the situation. Is the Treasury following up those suggestions in order to try to ensure that aid not absorbed is transferable to other purposes? Can the right hon. Gentleman say why the estimate in the White Paper was so greatly in excess of what is likely to happen?

Mr. Maudling

We are doing our duty by offering people aid. It is growing, and has grown in recent years, very much. I should be very glad to see the rate of spending of this money more in line with the rate at which we offer it, but it does not rest entirely with us.

Mr. P. Williams

Will my right hon. Friend make it clear that Government aid is not the only way of helping developing countries and that private enterprise can help, provided that political and economic conditions are right? In these circumstances also, is not Britain playing her full part?

Mr. Maudling

I entirely agree.