§ 30. Dr. GodmanTo ask the Secretary of State for Foreign and Commonwealth Affairs when he last met his European counterparts to discuss the subject of multilateral aid. [20710]
§ Mr. HanleyMy right hon. and learned Friend the Secretary of State for Foreign and Commonwealth Affairs has discussed multilateral aid with his European counterparts regularly during meetings of the EU Foreign Affairs Council, the last of which was on 26 February. My right hon. and noble Friend the Minister for Overseas Development also has regular meetings with her opposite numbers.
§ Dr. GodmanMultilateral aid has an important role to play, but does the Minister agree that the PHARE-TACIS programmes—Poland and Hungary assistance for economic restructuring, and technical aid to the Commonwealth of Independent States—suffer from serious weaknesses and are poorly managed in Brussels? Why are millions of ecus wasted on expensive consultancy when NGOs are denied funding? Why not apply the principle of subsidiarity and ensure that those programmes are run by the Governments of the member states and not by Brussels?
§ Mr. HanleyThe hon. Gentleman is absolutely right that there are problems with the delivery of the PHARE and TACIS programmes. It seems that PHARE is slow. The causes of that include over-centralised control in Brussels, too few staff, and complex procedures. Recipient Governments can also cause delays. Improvements are planned. There will be better programme planning and more decentralisation of decision making. I can tell the hon. Gentleman that there will be more decentralisation and more use of financial intermediaries, which should bring faster project implementation. There will be strengthened EC delegations and improved monitoring and evaluation.
I believe that a certain councillor in Strathclyde had discussions recently with local NGOs which complained about the time that it takes to get the PHARE programme approved. I agree with her.
§ Mr. John MarshallWill my right hon. Friend confirm that there is no correlation between economic aid which goes to countries and their economic growth, but that there is a strong positive correlation between private investment in the third world and growth in particular countries?
§ Mr. HanleyMy hon. Friend is absolutely right, and in terms of private investment from the United Kingdom to developing countries our record is second to none.