HC Deb 26 February 1996 vol 272 cc581-2
35. Mr. Pike

To ask the Secretary of State for Foreign and Commonwealth Affairs what percentage change has taken place in aid to South Africa since the South African elections of 1994. [15272]

Mr. Hanley

Bilateral aid to South Africa in the year leading up to the South African elections in April 1994 was £14.4 million. The outturn for the current financial year is expected to be about £17 million—an increase of 18 per cent. Our share of European Union assistance has increased from approximately £12.5 million to about £17 million in 1995 at current exchange rates—an increase of 36 per cent.

Mr. Pike

Although those increases are very welcome, does the Minister recognise the tremendous legacy of the apartheid years, particularly in education, health and housing? Should we not do far more to help the majority of South Africans to achieve the living standards to which they are entitled?

Mr. Hanley

I agree with the priorities that the hon. Gentleman has expressed. We believe that education is a vital part of the aid that we provide to South Africa in helping its transition to what I hope will be a glorious future.

Mr. John Marshall

Does my right hon. Friend agree that the main hope for economic development in South Africa is international investment? Will he recommend to President Mandela that he encourage, rather than discourage, international investment?

Mr. Hanley

The key to South Africa's long-term prosperity is trade and investment. The Government are committed to developing our commercial links with South Africa, but there is also a role for well-targeted aid. Our aid is designed to help to develop sound policies and to establish models of sustainable development while focusing on the most disadvantaged groups. The South African Government understand their responsibilities and I believe that they are on the right track.