HC Deb 10 February 1993 vol 218 cc974-5
11. Mrs. Gorman

To ask the Secretary of State for Foreign and Commonwealth Affairs when he last met his polish counterpart to discuss economic development in Poland.

Mr. Douglas Hogg

My right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs takes every opportunity to discuss economic and political developments with the Polish Foreign Minister. He last did so at the CSCE meeting in December last year.

Mrs. Gorman

Has my right hon. and learned Friend had a chance to discuss with the Polish economic administration the findings set out in an excellent article in The Economist which point out that while the public sector of the economy is stagnating, the private sector is going ahead by leaps and bounds, because the Government are fragmented, the administration is weak, taxes are therefore difficult to collect and bureaucracy is almost non-existent? As a result, the private sector is now employing 60 per cent. of the work force and accounting for half of the gross national product. Does not my right hon. and learned Friend think that we could learn a thing or two from the Poles?

Mr. Hogg

I am glad to say that through our policy of the know-how fund, the Poles have learnt a thing or two from us, particularly the virtues of privatisation.

Mr. Mackinlay

Will the Minister explain why there is a disparity between Poland, Hungary and the two states that formerly constituted Czechoslovakia in terms of guarantees for credit for the medium and long term? Why are we discriminating against Poland and why do we have a mealy-mouthed approach to supporting and sustaining a fragile democracy and economy?

Mr. Hogg

One of their problems when negotiating the budget within the Parliament is to secure sufficient agreement to ensure that the deficit does not exceed 5 per cent.