§ 38. Mr. Stuart Hollandasked the Secretary of State for Foreign and Commonwealth Affairs whether he will make a further statement on the aid and trade provision.
§ Mr. RaisonThe new loan scheme announced to the House on 12 November by my right hon. and learned Friend the Secretary of State for Trade and Industry strengthens the existing aid and trade provision. We shall now be able to respond more flexibly to the preferences of developing countries and to match the practices of other donors.
§ Mr. HollandThe Minister will be aware that there is considerable concern about this matter and about the extent to which priority is being given to aid and trade schemes rather than rural development initiatives. What resources does he expect to go to the ATP? Is he really in the business of trade to aid development, or mainly in development to aid trade?
§ Mr. RaisonI remind the hon. Gentleman that the aid and trade provision was introduced in 1977 by the right hon. Member for Clydesdale (Dame J. Hart). The additions required over the next three years under the ATP provisions that are being extended to loans are £3 million in the first year, £10 million in the next year and £20 million in he third year. It is important to remember that under the aid and trade provision we provide development help to the countries concerned and we have provided about £1 billion of export orders for British industry over the past few years.
§ Mr. Robert B. JonesIs my right hon. Friend aware that the ELE company in my constituency has developed a portable water purification testing centre that is far in advance of anything elsewhere? That is a prime candidate for trade aid and could benefit employment in this country as well as helping people overseas.
§ Mr. RaisonI shall be very happy to talk to my hon. Friend about that company.