European Development Fund (Hansard, 12 July 1993)

§ 37. Mr. Wells
To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the effectiveness and economy of administration of the European development fun; and if he will make a statement.

§ The Secretary of State for Foreign and Commonwealth Affairs (Mr. Douglas Hurd)
The European Commission is responsible for administering the European development fund. We are in constant touch with the Commission and with other member states to improve its effectiveness.

§ Mr. Wells
Is it not true that Britain, under the leadership of my right hon. Friend, takes the lead in insisting on a more efficient and focused European development fund, and the co-ordination of its policies with member states' aid policies?

§ Mr. Hurd
I hope so. We should certainly like to see in the European development fund greater concentration on countries in real need with a record of good government. Making multilateral programmes more effective is increasingly important, as they make up a steadily increasing part of the total aid programme.

§ Mr. Meacher
The Prime Minister decided at Edinburgh last December to double the United Kingdom's contribution to the European development fund and the EC aid programme by the year 2000, while freezing the British aid programme for the next two years. In view of that, has the Foreign Office told him that such policies are throwing Britain's bilateral aid programme into turmoil? Is he aware that his own Department has released a statement declaring that the next two-year freeze will reduce Britain's aid programme by £150 million and that, in terms of value for money, after black Wednesday's devaluation, that figure will be nearer to £250 million? Will he confirm that his own Department is preparing contingency plans for major cuts in aid? When will the Foreign Secretary start standing up for the aid budget and stop being such a soft touch?

§ Mr. Hurd
We are beginning, not ending, this year's public expenditure round and we all know the problems affecting that round. There will be pressures on the aid programme, as on other public expenditure programmes. As I said in answer to the first question, I believe that multilateral contributions, whether to the EC or the United Nations, are a steadily increasing part of the total aid programme. I believe that our bilateral programme is second to none in its quality and I intend to maintain an effective programme.