Loans (Repayment) (Hansard, 12 May 1969)

§ 16. Mr. Judd
asked the Minister of Overseas Development whether he will seek to establish an Overseas Development Fund into which repayments by developing countries of interest and capital can be paid.

§ Mr. Prentice
No, Sir. It would be contrary to practice to hypothecate loan repayments and interest, which go direct to the Consolidated Fund as extra receipts. It might also be held to undermine Parliamentary responsibility for voting Supply.

§ Mr. Judd
Does not my right hon. Friend agree that to present the aid programme in gross terms without allowing for interest and capital repayments is misleading and that the establishment of a fund of this kind would enable us to give a much better picture of the net form of our aid programme?

§ Mr. Prentice
As to presentation, I agree that it is important to see the net result as well as the gross figure. In a recent White Paper, I told the House 954 that in future the Financial Secretary's Memorandum on the Estimates would include repayments. This will also be a feature of the five-year survey on public expenditure which was proposed in the recent Green Paper. That also will show the net as well as the gross figures.

§ 17. Mr. Judd
asked the Minister of Overseas Development whether he will seek to empower the Commonwealth Development Corporation to establish a revolving fund into which interest and capital repayments from their projects can be paid.

§ Mr. Prentice
No, Sir. I do not see advantages to justify such a fundamental change, involving legislation, in the present arrangements.

§ Mr. Judd
Would my right hon. Friend not agree that these C.D.C. schemes in recent years have been making a profit, and that, again, it is misleading to represent what we provide each year as an aid programme and it would be much more meaningful to establish it on this kind of basis which would enable the general public to see the real net cost?

§ Mr. Prentice
I think the operations of the C.D.C. do promote development and should be seen as part of the aid picture. I agree in this respect, as well as in the broader scope of the previous Question, that this would give us the net position as well as the gross one. This year C.D.C. will receive £10 million in Government advances and will repay £6¼ million to the Government in respect of capital and interest payments on their outstanding advances.