HC Deb 01 March 2000 vol 345 cc407-9
1. Mr. Desmond Swayne (New Forest, West)

If she will make a statement on the role of development banks in her Department's policies. [111173]

The Secretary of State for International Development (Clare Short)

The Government are a major shareholder in, and work closely with, all the key multilateral development banks—the World Bank, the Asian Development bank, the Inter-American Development bank, the African Development bank, the Caribbean Development bank, and the European Bank for Reconstruction and Development. I am the United Kingdom governor of the development banks, and an alternate governor of the EBRD. UK representatives sit on the boards of all the banks, which have the capacity to contribute significantly to development. The regional banks have special authority in their regions. Since May 1997, we have worked to ensure that all the development banks focus their efforts on achieving international poverty eradication targets.

Mr. Swayne

I thank the right hon. Lady for that reply. The state of the road network in Mozambique has significantly impaired relief and rescue efforts. However, a 30—month programme for rehabilitation of Mozambique's roads is due for appraisal by the African Development bank at the end of May. What can the Department for International Development do to pressure banks to develop infrastructure in countries prone to natural disasters?

Clare Short

The African Development bank went through a bad phase of overlending and inefficiency, but has become much more efficient under the leadership of President Kabbaj. I believe that the public sector should contribute to road building where private finance cannot work. In Mozambique, that idea applies largely to rural roads, which make a difference if people are to improve their livelihoods by getting their crops to market or to get their children to school.

Africa has suffered because roads have been built but not maintained. We must encourage the private sector to become involved and the public sector to organise itself to maintain roads. The African Development bank should help to achieve a network in collaboration with the private sector, and the public sector should help rural people to have basic roads. The hon. Gentleman was right to say that Mozambique needs masses of them.

Mr. Tony Worthington (Clydebank and Milngavie)

It is greatly to the Government's credit that we can talk more widely about organisations in which we are major shareholders. Particularly welcome is the Asian Development bank's recent commitment to the eradication of poverty as one of its major purposes. Does my right hon. Friend welcome that commitment, and does she hope that other bodies will follow suit?

Clare Short

I do, indeed, and I admire the leadership given to the Asian Development bank by President Chino. My hon. Friend's point is similar to that made by the hon. Member for New Forest, West (Mr. Swayne): we need feasibility studies and regulatory systems that will bring private sector investment into major infrastructure, and we need to use the development banks to strengthen social sectors and focus on poverty. President Chino has done that effectively, and I am very impressed.

Mr. Gary Streeter (South-West Devon)

I am sure that the Secretary of State will agree that the African Development bank can play a vital role in the eventual reconstruction of Mozambique. Does she agree, however, that the clear priority today is to save the lives of the 100,000 people stranded in trees, on roofs and on high ground in a fellow Commonwealth country? I thank the right hon. Lady for what her Department has already done, but is it not obvious that too few helicopters are flying in Mozambique? Why will she not combine forces with the Ministry of Defence, charter heavy-lift aircraft and fly a batch of British helicopters and pilots to Mozambique before it is too late?

Clare Short

I am grateful for the hon. Gentleman's praise for my officials, who are working enormously hard. I fear that the situation in Mozambique is terrible, and that it is going to get much worse. Another cyclone is on the way, another river is about to overflow, and Caborra Basso must be allowed to overflow if it is not to put more people at risk.

Since I made my statement to the House on Monday, we have found some more helicopters. On the point about the Ministry of Defence, however, I must say that my Department's duty—the instruction that I have given my officials—is to find, from whatever source, the most rapidly available equipment and people who can be sent into theatre as quickly as possible. If the Ministry of Defence can help, that is good, but we must not delay just so that we can have equipment or personnel from our own Ministry. We must deploy whatever we can.

We have found two extra helicopters, which will be working tomorrow. We are sending to Mozambique tomorrow two planes and 30 UK volunteers who are expert in emergencies—including fire brigade personnel. We are sending 79 boats with engines: even with all the helicopters we could get, we could not get people out without boats. We need helicopters and boats. We will drop boats so that people can get into them, and we will need bigger boats to pull them in. We will do everything in our power to put in whatever equipment we can as quickly as possible. If the MOD is the best source, we will use it; if not, we will not.

Mr. Streeter

I am sure that the whole House welcomes what the Secretary of State says, but our responsibility is to do all that we can today. If it takes two days to fly helicopters down there from Europe, surely the sooner we get them flying, saving lives and distributing food, the better. It was obvious from the response on Monday that co-operation between her Department and the Ministry of Defence is not all that it might be. Will she make it a key priority to co-operate with the Ministry of Defence and get more helicopters working to save lives today?

Clare Short

I am sorry, but the hon. Gentleman is misinformed. There is absolutely no problem about co-operation with the Ministry of Defence. He may remember that, when Hurricane Mitch struck, we happened to have a British ship full of helicopters in the area. We have to be opportunistic in emergencies and make use of what is available as rapidly as possible. Even if people manage to cling on to their trees, they will not have water and food unless we get to them. We are talking about human lives that need to be saved very quickly. I have no preference for any source, and that is my instruction to my officials.

The problem is not shortage of money, either, but getting resources deployed in theatre quickly. If the Ministry of Defence can help, we will take that help; if not, we will go elsewhere. We should use MOD forces when they can get there quickly, but we should not be biased towards them and make things slower and more expensive. That would be very foolish.

Mr. Lindsay Hoyle (Chorley)

My understanding is that the Royal Air Force has hired an Antonov, which is on its way carrying helicopters that will be deployed within 48 hours. Is that correct?

Clare Short

I hope that my hon. Friend is right, but I have not heard that, and I think that I would have if it were the case.