HC Deb 17 January 1977 vol 924 cc22-5
31. Mr. Tim Renton

asked the Minister for Overseas Development what initiatives he expects the Government to take on overseas aid during 1977.

33. Mr. Spearing

asked the Minister for Overseas Development if he will make a statement concerning the effects of the Chancellor of the Exchequer's December measures on the overseas aid programme.

34. Mr. Forman

asked the Minister for Overseas Development if he will make a statement setting out the practical consequences for the Government's aid strategy of the recently announced reductions in overseas aid of £50 million in 1977–78 and £50 million in 1978–79.

35. Mr. Canavan

asked the Minister for Overseas Development whether he will make a statement about the effect on his Department of the Chancellor of the Exchequer's announcement on 15th December about further cuts in public expenditure.

37. Mr. Hooley

asked the Minister for Overseas Development which countries will suffer reductions in aid during 1977–78 as a result of the recent £50 million cut in the aid programme for that year.

Mr. Judd

I intend to pursue our aid strategy on the lines described in the White Paper "The Changing Emphasis in British Aid Policies" (Cmnd 6270). This means working for a continuing shift in the emphasis of our bilateral programmes towards the poorest countries and the poorest people within those countries.

Within this context the reductions in the aid programme in 1977–78 and 1978–79 will obviously have grave implications; the Government do not wish to minimise these. We shall not be able to undertake all that we had hoped to undertake, but there will not be a need for change in the overall strategy. The effect on specific allocations will have to be determined after a detailed review of the entire programme and of our priorities within it, which is now in hand. However, I hope to be able to avoid reductions in existing cash allocations, even though it may prove impossible to adjust some programmes, as I would have wished, to maintain their full value in real terms.

The reductions also mean that we shall have greater difficulty over this period both in responding to new situations and in taking on new commitments. Nevertheless, I hope in 1977–78, within whatever limited flexibility may still be available, to find room for increasing support for multilateral efforts and international initiatives, particularly those which accord with our policy of helping the poorest.

Mr. Spearing

I thank my hon. Friend for that reply. Does he not agree, however, that, whatever the eventual effects of these cuts may be, they will bear on some of the poorest people in the world? Does he accept that, since this country has been fortunate enough to receive a substantial loan in order to get out of its own economic difficulties, it is, to say the least, unfortunate—and perhaps some people would say immoral—that we should reduce our lending to other people who are in a worse situation?

Mr. Judd

I am sure that on reflection my hon. Friend will realise that the Government wish to minimise the impact of what they have found necessary to do. As far as our programme concentrates on the poorest people, there will be implications for them, but I hope it will not be necessary to cut existing commitments. The cut will have its impact on the planned future extension of the programme.

Mr. Forman

While welcoming this statement of the effect upon Government policy of the regrettable cut in overseas aid, may I ask the Minister to look into the possibility of administrative savings as a method of meeting the expenditure that is required? Does he agree that the cut underlines the importance of private investment in these overseas countries? Private investment is also a means of producing jobs and further investment.

Mr. Judd

Private investment obviously has a part to play in development and we regard its role seriously. As to the first part of the question, my Department will have to contribute to the reduction in the planned size of the Civil Service that has already been announced.

Mr. Canavan

Does the Minister agree that it is now clear that the effect of the IMF cuts will be to reduce the living standards of those most in need—not only needy people in this country, but those in the poorest countries of the Third World? Now that there is no hope in the foreseeable future of our reaching the United Nations target of contributing 0.7 per cent. of our gross national product to overseas aid, will the Minister tell his overlords in the Cabinet that it is about time that this Labour Government paid more attention to international organisations like the United Nations than to international Mafia groups like the IMF?

Mr. Judd

I am leaving this afternoon for the Governing Council of the United Nations Development Programme. That illustrates the commitment that the Government have to the United Nations and its agencies. It is precisely because we wish to play a full part in fulfilling our international responsibilities that we are doing everything we can to strengthen the economy.

Mr. Hooley

The Minister has not replied to Question No. 37. Cuts in overseas aid are not only damaging to the poorest people in the world but directly create extra unemployment in this country.

Mr. Judd

I certainly note what my hon. Friend has said. Of course it is recognised that development programmes are not simply a matter of disinterested charity. Our own self-interest as a nation is at stake.

Mr. Blaker

What percentage of our gross national product will be represented by official overseas aid in 1977–78? How will it compare with the United Nations target?

Mr. Judd

There is a later Question on that subject.

Mr. Raphael Tuck

In view of Mr. Justice Megarry's recent remark in the Chancery Court about our moral obligation to the former inhabitants of Ocean Island, does the Minister propose to grant aid for them? If not, why not?

Mr. Judd

If my hon. Friend has any specific suggestions, I shall be interested to hear them, but the main issue is the responsibility of my right hon. Friend the Secretary of State for Foreign Affairs.

Mr. Rhodes James

I congratulate the Minister on his appointment, which has given pleasure to his hon. Friends on both sides of the House. Can he give an assurance that before the Government make specific cuts they will consult the Opposition, industry and voluntary organisations?

Mr. Judd

We shall obviously consider the implications of where the announced cuts will fall. I stress our hope that we shall not have to cut back on existing commitments. The cuts will fall on the rate at which the programme is expanded. I thank the hon. Gentleman for his kind personal remarks.