HC Deb 04 May 1967 vol 746 cc714-6
16. Mr. David Steel

asked the Minister of Overseas Development how much of the £100 million saving on overseas defence and aid, announced in the Budget, represents savings in overseas aid.

Mr. Bottomley

£20 million, Sir.

Mr. Steel

Could the right hon. Gentleman represent to his right hon. Friend that in future we ought to know what these figures are, because a great many of us differentiate strongly between cuts in defence aid expenditure which are desirable and cuts in overseas aid expenditure which are undesirable?

Mr. Bottomley

Yes, but it is worth recognising that the cuts amount to £100 million but the £20 million cut in my Department proportionately is less than the cut in defence expenditure.

Mr. Maudling

How much use is the right hon. Gentleman making of the concept of aid from surplus capacity which was developed by the previous Administration and which could be peculiarly appropriate at present?

Mr. Bottomley

If by that the right hon. Gentleman means that to that extent there is a run-down in defence orders and there may be facilities for use in economic and social development, that is a matter which has always been considered.

Mr. Maudling

My point was aid from surplus capacity which in economic terms is easier to give than other aid.

Mr. Bottomley

If the right hon. Gentleman means technical assistance, yes, that is given.

Mr. Dobson

Is it the intention to increase overseas aid as soon as possible?

Mr. Bottomley

We would hope so consistent with our economic position improving.

19. Mr. Edward M. Taylor

asked the Minister of Overseas Development what was the amount of overseas aid distributed by Great Britain in each of the calendar years 1964, 1965 and 1966; and what estimate he has made of the amount which will be disbursed in 1967.

Mr. Bottomley

Gross official aid disbursements in 1964, 1965 and 1966 were £193 million, £196 million and £209 million respectively. A provisional estimate for 1967 is about £205 million.

Mr. Taylor

Would the Minister agree that many of the nations receiving this aid subject British investments to quite unreasonable taxation? Before agreeing the amounts for future years, would the right hon. Gentleman consider discussing with these nations an acceptable code of commercial conduct?

Mr. Bottomley

I assure the hon. Gentleman that the aid programme is properly managed and we ensure that all British interests are safeguarded.

Mr. Maudling

Is not that beside the point? Surely the point is that people who are receiving aid should be made to realise that to welcome incoming capital on proper terms adds to the efficacy of the aid? Will not the Minister discuss this question with the countries concerned?

Mr. Bottomley

This is a matter of which the Governments concerned are fully aware. It is for them to decide. This Question and Answer will certainly draw attention to the point.

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