HC Deb 05 July 2000 vol 353 cc314-5
2. Mr. Desmond Swayne (New Forest, West)

What discussions she has had with EU officials on reform of the aid budget. [127738]

The Parliamentary Under-Secretary of State for International Development (Mr. George Foulkes)

My right hon. Friend and I have frequent exchanges with Commissioners Nielson and Patten about reform of the European Commission aid budget. We are working for the implementation of our strategy, a copy of which I have here and a copy of which is in the Library of the House. We are constantly pressing the Commission and other EU member states to improve the poverty focus and effectiveness of EC development assistance.

Mr. Swayne

Given the description of the rotten heart of Europe that the Secretary of State gave to the Select Committee on International Development yesterday, what prospect is there of the United Kingdom regaining control of the budget so that it might be deployed according to our own exemplary standards?

Mr. Foulkes

We have a much better prospect of that with the Labour party in power than we would have if the Conservative party were in power. I remind the hon. Gentleman that, in 1992, his Government renegotiated the financial perspectives, and the amount of Britain's aid budget that we contributed to Europe went up from 20 to 30 per cent. When we negotiated the financial perspectives last year, we kept the figure constant. With an increasing budget for development, that means that we have, unlike the previous Government, more money to spend on bilateral assistance. The percentage spent on bilateral assistance will be increasing.

Mr. David Stewart (Inverness, East, Nairn and Lochaber)

What steps can the Secretary of State take to refocus EU aid spending towards poorer countries?

Mr. Foulkes

That is exactly what we are discussing with the Commissioners. In 1987, about 75 per cent. of European Community aid was spent on the poorest countries of the world, but 10 years later the figure was just over 50 per cent. That is not good enough and we argue that there has to be a switch towards a poverty-focused programme. At last, the European Commission has published a draft policy statement that is moving in that direction. Commissioner Nielson strongly supports that, and we are backing him 100 per cent.

Mr. Gary Streeter (South-West Devon)

The House does not need a history lesson from the Minister. We need something specific in terms of action to make the situation better. Will he confirm that the Government will table paving reforms at the current intergovernmental conference so that a mechanism is put in place to enable member states who choose to do so to take urgent and immediate action to spend most of their aid budgets bilaterally if the Patten reforms do not prove to be a success within the next 12 months? Is that not a proper response to the EU aid fiasco? We want not empty words but positive, constructive and common-sense action.

Mr. Foulkes

I do not know about you, Madam Speaker, but I think that the hon. Gentleman does need a history lesson. He has the barefaced cheek to come here to try to lecture us. As I pointed out in reply to the main question, it was under his Government that the percentage of money spent in Europe increased substantially and yet no action was taken to make that spending more effective. We have taken action to make the spending more effective. We have produced a strategy paper and we are working to get it implemented. The number of Commissioners dealing with development assistance has been reduced from five to two; we have renegotiated the Lomé convention; and we have financial perspectives that do not increase development assistance. It is about time that the hon. Gentleman took a history lesson and learned from us.

Mr. Streeter

I assume that that was a very long no to my specific question. The hon. Gentleman knows as well as I that if steps are not taken at this year's IGC to effect radical surgery of the EU aid budget, no action will be possible for several years—unless he knows the date of the next IGC, which I know he does not—during which the world's poorest countries will continue to be cheated out of vital help and support by bungling Brussels bureaucrats. If they do not seize this heaven-sent opportunity to implement a framework for a better aid policy, will it not be just another example of this Government being long on rhetoric and short on delivery?

Mr. Foulkes

This is barefaced cheek from the Opposition; what is more, it is carefully rehearsed barefaced cheek. The Government whom the hon. Gentleman supported did absolutely nothing to reform the European Community development programme. In fact, they increased it by 50 per cent. We are moving in the right direction: there is a poverty focus and an agreement to streamline the programme and delegate it to the countries concerned. We are moving in the right direction, and under this Government we will continue to do so.

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