HC Deb 24 February 1986 vol 92 cc673-4
45. Mr. Spearing

asked the Secretary of State for Foreign and Commonwealth Affairs what is his estimate of the likely balance in the Vote for the aid and trade appropriation at the end of March.

Mr. Raison

I hope that the Vote will be fully spent, but spending on the aid and trade provision is subject to many uncertainties about the acceptance and timing of commercial contracts.

Mr. Spearing

Does the right hon. Gentleman agree that the amount can vary considerably? For instance, last year, one project in India—the Balco power station—cost £10 million. If the variation in the aid and trade provision can be so great, is it not possible to vary the amount in respect of rural development projects, such as those to which the right hon. Gentleman referred a short time ago?

Mr. Raison

The essential point one must bear in mind is that all that funding—whether it is the aid and trade provision or conventional aid—has to come out of the overall aid budget. Managing that budget is a difficult operation. I believe that the facts show that our record in managing is very good.

Mr. Bowen Wells

Is that not an argument for making more aid and trade provision commitments so that we achieve the expected disbursement by the end of each year?

Mr. Raison

The aid and trade allocations are much higher than the amount that is taken up. Obviously, not every contract is successful. Getting it right is a difficult matter, but, by and large, I believe that our record is successful.

Mr. Stuart Holland

Surely the reality is that the right hon. Gentleman is planning to increase the aid and trade provision tenfold over the next two to three years—a major increase. Does that not contrast in practice with, for example, the right hon. Gentleman's unwillingness to finance a refugee study programme at the University of Oxford, which would have major implications for developing countries?

Mr. Raison

The hon. Gentleman has got it totally wrong. There is no plan to increase the aid and trade provision tenfold during the next few years. There is a sensible plan to bring in a new loan facility, but it will not result in such an increase.

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