HC Deb 01 December 1986 vol 106 cc626-7
59. Mr. Wareing

asked the Secretary of State for Foreign and Commonwealth Affairs what plans he has to alter expenditure on overseas aid; and if he will set a limit on the aid and trade provision.

Mr. Chris Patten

As a result of this year's public expenditure survey the revised aid baseline for 1987–88 will be £1,235 million. There is a limit each year on the aid and trade provision budget.

Mr. Wareing

Does the Minister's trite answer not show the Government's rather complacent attitude? Since 1979 there has been a 15.8 per cent. real reduction in the overseas aid, budget. Is it not a function of the ATP to reduce that? Is it not about time that there was real direct Government aid in order to bring our figure nearer to the figure which was designated as realistic by the United Nations?

Mr. Patten

The ATP has the same purpose now as it had when it was introduced by the right hon. Member for Clydesdale (Dame J. Hart), that is, to allow British exporters to compete for contracts that are part of sound projects in developing countries.

As for the overall size of our aid budget, I am pleased that next year we shall be spending £48 million more than this year, the following year £88 million more than this year, and the year after that £128 million more than this year.

Mr. Bowen Wells

Will my hon. Friend's recent negotiations on the EC's food aid programme result in a change in expenditure in the overseas development budget? If so, where will he put the savings or increased expenditure on effective food aid?

Mr. Patten

The changes that we were successful in pushing through at the Development Council meeting last month will not reduce the amount of money that is spent on food aid through the EC. We still have to deal with one or two institutional problems, but the changes should ensure that that money is sensibly spent in a developmentally sound way.