§ 7. Mr. Thurnhamasked the Secretary of State for Foreign and Commonwealth Affairs if he will give an updated report on action to control the total running costs of his Department.
§ 12. Sir Peter Blakerasked the Secretary of State for Foreign and Commonwealth Affairs what further developments there have been regarding the planned level of activity in the forthcoming financial year of the Diplomatic Service, the British Broadcasting Corporation External Services and the British Council respectively.
§ Sir Geoffrey HoweI gave details on 14 November of measures which are being taken or planned to control running costs in the Foreign and Commonwealth Office. I have since announced a list of 10 diplomatic and consular posts which will close or not reopen. The Overseas Development Administration has carried forward its plans to consider putting out to competitive tender a number of in-house services.
I refer my right hon. and hon. Friends to my statements in the House on 22 November and 18 December 1984. There has been no further change.
§ Mr. ThurnhamWill my right hon. and learned Friend say how the recent decline in the pound-dollar value will affect future resources? Yesterday's White Paper showed strict control on future spending in sterling terms.
§ Sir Geoffrey HoweAs I made clear in my answer to the Select Committee on Foreign Affairs in October, rises in expenditure resulting from exchange rate movements and differential inflation will be considered as requirements based on changed economic assumptions. In fixing the longer-term programmes of the Department in the public financial survey, account will be taken of changes of economic assumptions, up or down, in setting the base line for future years. Obviously, much will depend on movements in exchange rates and overseas inflation. If there are major adverse movements, they can be reviewed during the next public expenditure survey.
§ Sir Peter BlakerIs my right hon. and learned Friend satisfied that his Department and its various parts can plan satisfactorily on that rather vague statement about the extent to which rises in costs incurred overseas may or may not be taken into account? Surely something much more precise is required. Do we not need a definite statement that his Department will compensate for any overseas risen costs, whether resulting from a fall in sterling or from excessive inflation overseas?
§ Sir Geoffrey HoweI understand the importance of my right hon. Friend's point. The sentence that I quoted from the statement in Cmnd. 9367 states that in fixing the longer-term programmes of the Department account will be taken of changes of economic assumptions, up or down, in setting the base line for future years. I understand the importance that my right hon. Friend attaches to that. It must always be subject to consideration, together with other questions, in the public expenditure survey.
§ Mr. KirkwoodIs the Foreign Secretary aware of the valuable work that the British Council does, especially in relation to Ethiopia? Is he further aware that it has projects in hand at the moment, which are of vital importance to Ethiopia, which use English as a secondary teaching language? Will he assure the House that any projected cuts in his Department will not interfere with that aspect of the British Council's work?
§ Sir Geoffrey HoweI recognise the importance of the work done by the British Council. In the year ahead there is no cut in grant in aid to the British Council. It is being increased by £5.8 million in 1985–86 to meet overseas risen costs, leaving the council to absorb £1.1 million of overseas risen costs. The council is still considering how to absorb that amount. I share the hon. Gentleman's hope that that can be done in ways that do not damage the excellent work done by the British Council.
§ Mr. SoamesDoes my right hon. and learned Friend accept that some hon. Members believe that cuts of this type in his Department are shortsighted folly in terms of Britain's interests? Will he assure the House that the cuts that are being made have not affected our efficiency and ability to represent Britain's case abroad?
§ Sir Geoffrey HoweI certainly understand and welcome the support given by my hon. Friend for the work done by my Department. It is inevitable that the reductions, which involved the closure of 10 diplomatic and consular posts, represent a reduction in the coverage of the services offered by the Department. A reason for proceeding in that way is to maintain the standard of the work being done by the Department elsewhere.
§ Mr. Campbell-SavoursIn the light of evidence given to the Committee on Public Accounts, could not savings be made if, instead of paying the school fees of the children of Foreign Office officials in Britain's public schools, the Foreign Office sent those children to comprehensive schools in the state sector, whether voluntary-aided or not, which have boarding facilities? If the Secretary of State is determined to save money, should he not consider this matter objectively? Real savings could be made and boarding facilities could be retained for the use of the children of Foreign Office officials.
§ Sir Geoffrey HoweI am sorry that the hon. Gentleman's vision of such matters is so limited by his narrow class perceptions. He must acknowledge that the 974 people employed in the Diplomatic Service have for many years, as a result of consecutive recommendations by external and internal Committees to successive Governments, had their salaries supplemented in precisely that way, just as occurs with many private sector employees. If one must serve in a remote station for a long time, and is likely to do so regularly, there is no substitute for a boarding school education for one's children. It would be wrong to make the narrow changes envisaged by the hon. Gentleman for the narrow, bitter, class reasons that he advances.