HC Deb 01 June 1965 vol 713 cc1499-500
22. Mrs. Shirley Williams

asked the Minister of Overseas Development if she will make a contribution to local costs where an under-developed country will otherwise be unable to use development aid funds effectively.

Mrs. Castle

This is already done in a large number of cases although we naturally limit this form of aid mainly to cases of the kind my hon. Friend has in mind.

Mrs. Williams

In view of the fact that this is a form of aid which puts the least possible pressure on our balance of payments, especially in the sterling area, while producing the maximum effect locally, will my right hon. Friend consider this very favourably when there is an opportunity for local resources to be used more fully in giving development aid, particularly local resources of manpower, as well as other forms of local resources?

Mrs. Castle

We are one of the donor countries which are most generous in this respect. We are so because we appreciate that, in giving finance for development schemes, it is not enough to give it for the import content. One must also take steps to meet the local costs. We wish that other donor countries would follow us in this respect and thus share the burden of what is, in effect, a form of untied aid.

Mr. Scott-Hopkins

What form of control does the right hon. Lady keep over the funds to see that they are not wasted? Does she have a veto if she does not approve of the way in which they are used?

Mrs. Castle

When requests are made to us for aid, we get round the table with the Ministers of the country concerned, discuss their development plans and what approaches seem most helpful in those plans and then allocate our aid on the basis of these specific schemes.