HC Deb 24 June 1996 vol 280 c18
32. Mr. Campbell-Savours

To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to fund food and distribution projects in the former Soviet Union. [32639]

Mr. Hanley

The know-how fund will continue to give high priority to projects in support of food sector reform. Last year, some 16.1 per cent., or £4.18 million, of know-how fund assistance was devoted to food sector projects. In addition, we have provided more than £1 million in bilateral food aid to countries in the former Soviet Union.

Mr. Campbell-Savours

I hope that the Minister will forgive me for being a little impetuous earlier. Will he set up an inquiry into overcharging by Arthur Andersen for fees and accommodation in respect of the food distribution contract that it held under the know-how fund in Moscow about two years ago?

Mr. Hanley

I am glad that the hon. Gentleman asked that question. Just in case he should ask, I have done some research, which shows that, as far as I am aware, there is no Campbell's Soups factory in the former Soviet Union. He was referring to the Moscow bread project—a large know-how fund operation. Costs were shared with a consortium of private sector companies led by Andersen Consulting. I believe that it was an excellent example of partnership between the Government and the private sector. It trained 634 retail shop managers and provided on-site support. Multiple benefits were derived from the support of the know-how fund. If the hon. Gentleman has any evidence of overcharging and of costs falling against the British taxpayer, I should be most grateful if he would give it to me chapter and verse. I assure him that the matter will be investigated.