§ 15. Mr. Gardnerasked the Minister of Overseas Development what criteria are used to determine the contribution which can be made towards local costs in projects aided by her Department.
§ Mrs. HartAid may exceptionally be provided to a limited extent for local costs where an independent country's domestic resources would be insufficient for effective use of the British goods to be purchased with our aid. We apply less exacting criteria to the dependent territories and Associated States.
§ Mr. GardnerDoes my right hon. Friend agree that rural development projects, which usually involve a high degree of local costs, are more important than prestige projects? Are any restrictions placed by the Treasury on the level of costs she can meet?
§ Mrs. HartAlthough I would not necessarily adopt my hon. Friend's form of words, I entirely agree that rural development is probably the most important aspect of development at present in many countries and that it involves difficulties on some occasions with local costs. Bat we believe that local costs should be the exception rather than the rule. Of all our bilateral financial aid in 1968, excluding refinancing, pensions and certain compensatory payments, about 35 per cent. was made available to cover local costs.