§ 11. Mr. SheermanTo ask the Secretary of State for International Development what steps she is taking to encourage the private sector to become more involved with the support of development projects. [3865]
§ Clare ShortI want my Department to work in partnership with all those who can contribute to development and the eradication of poverty. That includes the private sector, of course. I shall be setting out my thinking in a speech at the Institute of Directors on 8 July and wish to encourage the private sector to work more closely with my Department, to encourage more investment in the world's poorest countries.
§ Mr. SheermanI thank my right hon. Friend for that answer. She will know that, like so many Labour Members, I am very much in favour of a greater contribution from our revenues to development aid, but the private sector can play an important part in development, and where best practice exists it is very good indeed. I hope that my right hon. Friend will encourage more firms that trade with, and do well out of exports to, developing countries to become involved in local projects. I have seen that such projects are extremely effective in south America. I know that they are effective in some parts of Africa. I hope that my right hon. Friend will do everything that she can to stimulate that involvement and work on best practice.
§ Clare ShortMy hon. Friend is right. In order to grow, the poorest countries need investment from the private sector. At present, private sector flows are concentrated in the 10 most developed of the under-developed countries. We must improve on that. The Commonwealth 835 Development Corporation, for which my Department provides support, does valuable work in that direction, but we are also keen to work with partner countries and with companies in Britain to develop the conditions to encourage more investment in the poorest countries, especially in sub-Saharan Africa.
§ Mr. FabricantIs the right hon. Lady aware of all the valuable work done by the private water companies in developing water projects in sub-Saharan Africa? What assessment has her Department made of the effect on that form of aid of the introduction of the iniquitous windfall tax by her Government?
§ Clare ShortAs I said to one of the hon. Gentleman's hon. Friends at the last International Development questions, these matters are too serious for cheap political points. I am not aware of any work done by private water companies in Africa.
§ Mr. FabricantWhat?
§ Clare ShortI am not especially aware of that work, but if they are doing it, that is good work. Some 25 million—
§ Mr. FabricantRead your brief.
§ Clare ShortWhy does the hon. Gentleman not listen? This is not a political game but a serious matter that affects the lives of human beings.
Some 25 million people a year die as a result of water-borne illnesses. There is a movement for an international conference that is likely to set the world a target of bringing clean water and sanitation to everyone in the world within 10 years. Everyone will have to work at that, but private companies alone will not do it, I am afraid.
§ Mr. DafisWill the Minister agree to look into the multilateral agreement on investment currently being negotiated by the Organisation for Economic Co-operation and Development? Does she agree that it will involve a significant shift of power away from Governments—many of them democratic—to trans-national corporations and make it more difficult for those Governments to develop policies in relation to social and environmental objectives? Is not the agreement likely to be contrary to the spirit of sustainable development and Earth summit 2? Will the Government look into this and do something about it?
§ Clare ShortAs the hon. Gentleman may know, I came back overnight from the Earth summit in New York. The matter was raised with me by some of the non-governmental organisations there. I promised to take advice on the matter and saw one of my officials this morning, who promised me a paper later today. I shall look into the matter. My Department is not the lead Department on that issue. I do not believe that the agreement is the apocalypse that has been suggested in some quarters, but I shall look into it and write to the hon. Gentleman.