HC Deb 08 July 1987 vol 119 c349
13. Mr. Page

asked the Chancellor of the Duchy of Lancaster what calculations are made of the value of the additionality when considering applications for aid and trade support.

Mr. Alan Clark

The aid and trade provision is used to counter the tied aid credit practices of other Governments. Offers are made where aid is appropriate as an element in securing the business for the United Kingdom, and in making such calculations due regard is paid to a number of factors, notably the maintenance of employment in the United Kingdom and the likelihood of follow-on orders.

Mr. Page

I thank my hon. Friend for pointing out the wide benefits that flow from the aid and trade provision. Has he seen that same point elaborated by Hawker Siddeley's paper "Harvest for Britain" on the scattered diesel programme for Indonesia? Is it not a fact that countries such as France, Japan and Germany have increased their aid and trade provision, or its equivalent, to four to 12 times ours to secure those same wide benefits? If my hon. Friend agrees with me, will his Department push to increase our aid and trade provision programme, so that this country can also enjoy those wide benefits, such as jobs and prosperity?

Mr. Clark

I very much agree with the thrust of my hon. Friend's comments. I saw the Hawker Siddeley report and thought it extremely valuable. Since 1978 there has been some £460 million of ATP, which has secured 121 projects worth more than £2 billion. Part of the reason for the difference between our provision and that of some of our competitors is the different standards of assessing project merit applied by the designating bodies in those countries. I have no doubt that my hon. Friend either has seen or will shortly read the report of the Select Committee on Foreign Affairs on this subject.

Mr. Wells

On the question of the recent report of the Select Committee on Foreign Affairs on bilateral aid, will my hon. Friend take account of the recommendation that the ATP should be separately funded, so that we can at least try to equal the efforts made by our competitors and, therefore, allow British businesses to compete on fair tents with their overseas competitors?

Mr. Clark

I do not know whether by separate funding my hon. Friend means separating the ATP from the bilateral aid programme under which the developmental value of projects is one of the primary considerations. We will respond in due course to the Select Committee. We are very much aware of the feeling of the whole House on this subject.