HC Deb 20 October 1969 vol 788 cc729-31
1. Mr. Judd

asked the Minister of Overseas Development what will be the gross and estimated net cost of the British Overseas Aid and Development Programme in 1970–71 and 1971–72; and what will be its estimated effect on the balance of payments.

The Minister of Overseas Development (Mrs. Judith Hart)

The planned programme for 1970–71 remains £235 million gross, and repayments of £28.million are due. Within this total the special aid to Malaysia and Singapore is likely to include some defence aid. We are not yet in a position to give figures for 1971–72.

The balance of payments cost of a marginal addition to the programme has been estimated at about one third or rather more where there is pressure on the capacity of industries producing aid-financed exports.

Mr. Judd

Would my right hon. Friend and the Parliamentary Secretary accept congratulations from those interested in aid and development on their appointment, and will they be prepared for the pressure which will certainly come in achieving a fulfilment of the targets we know they individually subscribe to? Would my right hon. Friend agree that the result of the international aid and development programme is highly positive in terms of our balance of payments? Is it not high time that the British people were told in categorical terms that our future well-being depends on the expansion and continuation of this programme?

Mrs. Hart

I and my hon. Friend are grateful for the good wishes of my hon. Friend. We shall both welcome his pressure. In looking forward to the future there can be nothing but long-term advantage to us in doing the maximum to promote development, simply in terms of the increase in world trade which then has its effect on us.

2. Mr. Judd

asked the Minister of Overseas Development whether credits for arms sales abroad will in future be included as part of the British Overseas Aid and Development Programme.

Mrs. Hart

They have never formed part of the official aid programme, and they no longer count as private flows against the U.N.C.T.A.D. 1 per cent. target.

Mr. Judd

Would not my right hon. Friend agree that, within the international classification, these credits have been included and that it is most unfortunate that they should be counted towards fulfilment of aid targets?

Mrs. Hart

I agree. My hon. Friend had a Question down on this subject in July. He will be glad to know that it is as a result of a recent agreement of members of D.A.C. since then, that new arrangements have been made and they will no longer count as part of the programme.