§ 41. Mr. SpringTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the effect of the British aid programme on British industry.
§ Mr. Lennox-BoydBritish aid benefits British industry, both directly through aid-financed contracts and by helping developing countries become more prosperous trading partners in future.
§ Mr. SpringBearing in mind the importance of developing the private sector to achieve sustained economic growth in developing economies, what encouragement in our overseas aid programme is given to private direct capital flows?
§ Mr. Lennox-BoydThe aid programme benefits British industry enormously. Our bilateral programme gives about £1.5 billion worth of business to British industry each year. I am glad that there is a terrific amount of British direct private investment in developing countries. Of the European Community countries we make half the direct private investment in developing countries—about £1.7 billion in 1992.
§ Mr. JannerDoes the Minister accept that British industry relies greatly upon peace in the world and on the opening up of new markets? In the circumstances, will he accept that it must be the wish of all hon. Members that aid be now extended to the PLO to assist it to build up viable economies in Gaza and Jericho?
§ Mr. Lennox-BoydI know that the British Government wish to give support to the peace process between Israel and the Palestinians in every possible way. I hope that the hon. and learned Gentleman's question will be given careful consideration.