HC Deb 18 October 1993 vol 230 cc17-8
40. Mr. Bates

To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the way in which overseas aid contributes to British exports.

Mr. Lennox-Boyd

Overall export levels depend on many factors, but we estimate that aid-financed visible exports are worth about £1.6 billion a year.

Mr. Bates

Does my hon. Friend agree that, wherever possible, the British aid budget should be given in the form of British goods and British services? If we do so, we not only target the money that we provide to those people most in need, for whom it is designed, but help to strengthen the British economy, which, in turn, will help to maintain and increase our aid budget in future years.

Mr. Lennox-Boyd

Aid does benefit British investment and British exports considerably. The aid and trade provision currently costs about £100 million a year, finances 35 per cent. of the British cost of the bid and generates three times as much in exports as it costs.

Rev. Martin Smyth

Does the Minister accept that the questions and answers confirm the concern felt by many in the country that we are using the dictum that charity begins at home and that the issue is not to provide aid to those in need, but how to benefit ourselves?

Mr. Lennox-Boyd

I think that everyone knows that charity begins at home, but there is—as the hon. Gentleman and many others recognise—a large part for the aid programme to play.

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