HC Deb 06 February 1995 vol 254 cc15-7
39. Sir Thomas Arnold

To ask the Secretary of State for Foreign and Commonwealth Affairs what is his current policy on the balance between (a) bilateral and (b) multilateral spending.

The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Tony Baldry)

The Government will continue to deliver a large and effective bilateral aid programme and are working to ensure that our substantial and growing multilateral commitments are similarly effective.

Sir Thomas Arnold

Does my hon. Friend agree that the record tends to show that bilateral aid has been better targeted and provides better value for money than multilateral aid?

Mr. Baldry

British bilateral aid is best. It is high quality and well delivered, which is why we want a bilateral programme that is as large as possible. It is also why this year and for the next three years, year on year, we have provided extra money for the aid budget. Of course there will be times when we have to work with other countries in the United Nations and in Europe, and we need to ensure that such multilateral aid is delivered as efficiently and effectively as British aid.

Mr. Tyler

Will the Minister be a little more forthcoming about the balance that he seeks between bilateral and multilateral aid? Is there a level below which he thinks bilateral aid would not be viable?

Mr. Baldry

No, we need to ensure as large a bilateral aid programme as possible. Clearly, sometimes we shall have to work with colleagues either in the United Nations or within the European Union to deliver effective aid programmes, and we have to ensure that there is a proper balance.

Sir John Stanley

Given the huge diversion of our available overseas aid money to the European Union, does my hon. Friend agree that the imperative is greater than ever for the Government to take new steps to establish whether value for money is being obtained for this increasing share of our overseas aid budget? What steps are the Government taking to achieve that?

Mr. Baldry

We want to ensure that development aid is effective and, of course, we need to ensure that European Union aid is effective. We are determined to ensure the greatest possible effectiveness of EU aid. A Council of Ministers declaration on development policy to the year 2000 was agreed in 1992, and it set out objectives for EU aid similar to ours. We seek to ensure that those are fully reflected in all EU-funded activities throughout the world. A number of Overseas Development Administration staff are seconded to key positions in the Commission to strengthen systems and to advise on key overseas development sectors. We are always seeking to develop contacts between ODA staff and their counterparts in Brussels, to share experiences and improve co-ordination. My right hon. Friend is right: we contribute a substantial amount of money to the European Union development budget and we need to ensure that every single penny of it is spent as efficiently and cost-effectively as United Kingdom bilateral aid.

Mr. Enright

Will the Minister explain why the multilateral aid with the United Nations and the European Union that we are spending in Cambodia is not matched by our bilateral aid in that country? Unilaterally, the Government have treated our own non-governmental organisations as though they were backpackers; they have not consulted them. Will he reconsider the ODA's unilateral decision to withdraw finance from those NGOs?

Mr. Baldry

I think that the hon. Gentleman is confusing a number of issues. We support a number of projects throughout the world, including in Cambodia. Tragically, in recent months a number of United Kingdom citizens have been kidnapped and murdered in Cambodia, which has caused considerable sadness to their families and many other people. Cambodia is a distinctly dangerous country at the moment so it must behove the ODA, as a responsible employer, to ensure that those working with it are not put at unnecessary risk. The ODA has been in deep discussions with all NGOs working in Cambodia about the position—

Mr. Enright

That is not what they say.

Mr. Baldry

I assure the hon. Gentleman that there has been the clearest and closest consultation with NGOs in Cambodia. We co-operate closely and effectively with NGOs throughout the world and we want to carry them with us in our decisions. I am sorry that the hon. Gentleman has been inadvertently misled.