HC Deb 19 July 1976 vol 915 cc1275-7
28. Mr. Tim Renton

asked the Minister for Overseas Development when he expects the Pearson target for overseas aid to be reached by the United Kingdom.

29. Mr. Canavan

asked the Minister for Overseas Development when he expects his Department to reach the United Nations target of 0.7 per cent. of gross national product in aid to underdeveloped countries.

The Minister for Overseas Development (Mr. Reg Prentice)

The Government have always made it clear that, while they accept the 0.7 per cent. target in principle, they cannot set a date for its achievement. Our progress towards it must be determined by the pace of our own economic recovery and by the other calls on our resources.

Mr. Renton

The Minister's commitment to overseas aid is widely known and respected. However, at a time when public funds are desperately short, would it not be realistic for our limited aid programme to be concentrated on the development overseas of mineral resources of which Britain is increasingly short? This would help our aid programme to survive the public expenditure cuts unscathed.

Mr. Prentice

In making the choice between countries and sectors, we take account of many factors, including our own long-term economic self-interest. However, the main motivation, set out in the White Paper a few months ago, is to devote an increasing amount of our aid to the poorest countries of the world. This is accepted widely on both sides of the House and among enlightened opinion throughout the country.

Mr. Canavan

In view of the insane proposals for further massive cuts in public expenditure, will my right hon. Friend give an assurance to the underdeveloped countries that he will resist any Treasury moves to cut back our already inadequate overseas aid programme, otherwise we shall never reach the United Nations target?

Mr. Prentice

I cannot anticipate any statement that will be made by the Chancellor shortly on public expenditure. These matters are being discussed in the Cabinet, and my hon. Friend can rest assured that I shall play my full part in those discussions.

Mr. Luce

Will the Minister confirm that it is the Government's main objective to concentrate help on agricultural sectors of the poorest countries in the world? Is it not true that much could be achieved by encouraging private trade and investment, alongside Government aid?

Mr. Prentice

Yes. I do not see a conflict between development of private investment and official aid. The two are complementary, and the developing world needs more of both. I confirm that we are trying to devote a growing proportion of our assistance to the rural sector.

Mr. Hooley

Is my right hon. Friend aware that back in 1970 the Labour Party set a target date for reaching the United Nations aid target? That target date was 1975, since which we have gone backwards instead of forwards. Will my right hon. Friend use his influence to see that we move towards the aid target rather than away from it?

Mr. Prentice

I confirm that the Labour Party, the Government and the country are committed to reach the United Nations target as soon as we can manage to do so. This commitment is shared by other countries in the industrialised world, and so far only Sweden and Holland have reached the target. This country and others will reach it as soon as possible.

Mr. Donald Stewart

I fully support the right hon. Gentleman in his wish to reach his target, but will the Government exercise more discretion in overseas aid? For instance, will they tie in the application from Argentina with a promise from Argentina that it will cease its pressure on the people in the Falkland Islands?

Mr. Prentice

I do not wish to answer that question without notice, except to say that we are very discriminating in the use of our aid funds. We take account of the needs of the recipient country and also of our own political and commercial interests. All these factors play a part in the determination of our programme.

Mr. Tugendhat

Is the right hon. Gentleman aware that this programme, like others, is having to be cut because of the profligacy of the Government's policies in their first year of office, especially the policies advocated by hon. Members below the Gangway?

Mr. Prentice

No. For very many years this country has not applied the necessary economic self-discipline. We are now undergoing the process of trying to make a long overdue adjustment in that respect. That involves hard choices on public expenditure and elsewhere. In making those hard choices the Government will be guided by morality and long-term self-interest as well as by short-term expediency.