HC Deb 01 June 1965 vol 713 cc1495-6
15. Mr. Dempsey

asked the Minister of Overseas Development what steps she takes, when giving financial aid to overseas countries, to ascertain the ways in which the money will be spent.

Mrs. Castle

Our financial aid is normally given only after full discussions with the recipient Government, and is related, wherever possible, to the fulfilment of their development plans.

Mr. Dempsey

Can my right hon. Friend say to what extent the granting of this State aid influences the policies of these territories? Is she aware that many social services are totally inadequate in these countries? Can she state that in granting aid to these territories we have some influence as to how the aid will be spent, so that we can ensure that it is spent on essential services?

Mrs. Castle

Our attitude is that the use of aid should be jointly decided and discussed between us and the receiving Governments. It must be a partnership. Clearly we seek to help these countries to have good development plans, in which the social services will have an important part, and then we fit our aid into those development plans.

Mr. Onslow

Can the right hon. Lady say what action she takes to assess the way in which the Government receiving the aid use their resources which they levy from their own taxpayers? Is she aware that one of the main reasons for the regrettable decline in private investment overseas in recent years has been the extremely ill-conceived and ill-advised policies which have been adopted by the developing countries under the peculiar advice of gentlemen who are now advising her right hon. Friend the Chancellor of the Exchequer?

Mrs. Castle

In estimating the need for aid in a country these alternative sources of finance are taken into consideration.

Mr. David Steel

What account has the Minister taken of giving increased aid to developing countries in kind as well as in cash? Is she having any discussions with her right hon. Friend the Minister of Agriculture about the processing of agricultural surpluses and their export in a form acceptable to many countries where there is a shortage of food?

Mrs. Castle

As my hon. Friend said earlier, we play our part in the world food programme. I am sure that the hon. Member will realise that we are not a country with agricultural surpluses to dispense.