HC Deb 21 June 1982 vol 26 cc15-6
31. Mr. Kenneth Lewis

asked the Secretary of State for Foreign and Commonwealth Affairs whether he is satisfied that British companies are given a comparable level of support from his Department in carrying out projects abroad to that provided by other countries, in particular other member States of the European Community.

The Minister for Overseas Development (Mr. Neil Marten)

Yes, Sir. The bulk of our substantial aid programme is spent on the purchase of goods and services from British companies, we have a special facility for countering the use of mixed credits by other Governments and I believe that the technical support services offered to British companies competing for project business abroad are as good as any other.

Mr. Lewis

Do not the French do this a good deal better? They give special facilities to their industries to trade with their previous overseas possession. Should we not do a little more in that direction?

Mr. Marten

The French probably do it a little better, but not always within the same guidelines as we have.

Mr. Greville Janner

In view of the Minister's helpful answer to the effect that most of the trade in these cases arising from overseas aid goes to British companies and helps employment in this country, will the Government emphasise the importance of overseas aid for us as well as the recipients and try to extend it, especially to countries like India, which need it so very badly?

Mr. Marten

I constantly emphasise that fact. The hon. and learned Gentleman will know how much India is getting in this year's programme. It is a substantial amount. India is the recipient of the greatest amount of our aid.

Mr. Chapman

Although members of the British Consultants Bureau, who are responsible for projects abroad worth thousands of millions of pounds each year, appreciate the personal contacts that they have with the Department, will my right hon. Friend bear in mind that they feel at a disadvantage because of the financial help given to consultants undertaking projects from other countries? Will he keep an open door for those people and their problems?

Mr. Marten

I shall bear that in mind, but believe that the consultants do extremely well. Perhaps my hon. Friend will let me know if he has a particular point in mind.

Mr. Brocklebank-Fowler

Will the right hon. Gentleman bear in mind that a major stumbling block to companies gaining orders in the developing world is the lack of funds available for feasibility studies? Will he reconsider making aid funds available for that purpose?

Mr. Marten

Aid funds are available for that purpose. Again, perhaps the hon. Gentleman could let me know if he has a specific proposal.

Mr. McElhone

Is not one country in which British companies could play a major role Nicaragua, if only the Department would be more generous? The derisory sum given this month was £20,000. Among all EEC countries we give the lowest amount to that country. Is the Minister aware that one of the best ways to rebuild our relationships with Latin American countries is to give Nicaragua substantial aid, especially to help with the floods?

Mr. Marten

Perhaps I can answer that question when we come to the other question on the Order Paper about Nicaragua.