HC Deb 19 November 1968 vol 773 cc1091-3
11. Mr. Peter M. Jackson

asked the Minister of Overseas Development whether he proposes to increase the level of aid to the developing countries.

Mr. Prentice

No increase is proposed in the levels of aid expenditure for this year and next year which I announced in my replies to Questions on 18th January and 18th July.—[Vol. 756, c. 1929–36; Vol. 768, c. 1640.]

Mr. Jackson

May I remind my right hon. Friend of the Labour Party pre-election commitment to contribute 1 per cent. of the gross national product to aid? Will he consider drawing the attention of the Chancellor of the Exchequer to a book published in 1950 and entitled, "War on Poverty—an appeal to the conscience of mankind", written by the right hon. Member for Huyton (Mr. Harold Wilson)?

Mr. Prentice

I am always ready to recommend good literature to the Chancellor of the Exchequer or anyone else. The 1 per cent. target as defined by the first U.N.C.T.A.D. has been fulfilled by this country over a number of years. The target has now been redefined and raised and although we are not reaching that new target at the moment, by voting for the resolution we committed ourselves to reach it as and when the balance of payments permits.

Mr. Braine

Would not the right hon. Gentleman agree that it is not only the level of aid which matters to developing countries, but the effectiveness of the aid that is furnished? As the Prime Minister has already pledged full support for the aims of Mr. Lester Pearson's Grand Assize on aid and development, can the right hon. Gentleman tell the House what forward-looking studies are now being undertaken by his Ministry of the effectiveness of the current aid programme?

Mr. Prentice

A very intensive study was made in the Department by the Special Value of Aid Committee which concluded its work some months ago. Its recommendations are now being followed up. It is the constant preoccupation of the Ministry to improve the effectiveness of our aid and I think that we are doing that to a considerable extent.

Mr. Alexander W. Lyon

Would not my right hon. Friend agree that, as a result of the balance of payments problems of most donor countries, the future for aid seems very bleak? Will he try to ensure that in any revision of the Special Drawing Rights Agreement there is some provision for developing countries to obtain money so as to continue their expansion and trade?

Mr. Prentice

I should want notice of the latter part of that supplementary question, but on the general issue I think that the present situation has been well described as an aid plateau with aid running at a fairly steady level, but with a very big question mark over the policies of most donor countries in the 1970s. Certainly I hope that we shall see an upward trend in development assistance in the years ahead.

Mr. Frederic Harris

Does not the right hon. Gentleman appreciate that devaluation of the £itself considerably cut aid to developing countries, which are suffering badly from that cut?

Mr. Prentice

The effects of the devaluation of the £upon our aid programme were probably to reduce its value by about 5 per cent., but the hon. Gentleman will be aware that at the same time we decided to enter into certain new commitments, such as the replenishment of I.D.A., which was to be additional to the basic target, so that the real value of our aid this year will probably be similar to its real value last year.