Bilateral Aid (Hansard, 25 October 2000)

§ 5. Mr. Tony Baldry (Banbury)
If she will make a statement on the percentage of the United Kingdom's bilateral aid which goes to Commonwealth countries. [132185]

§ The Parliamentary Under-Secretary of State for International Development (Mr. George Foulkes)
About 62 per cent. of our bilateral programme supports Commonwealth countries, of which 85 per cent. goes to low income countries.
The Commonwealth has the potential to play an important role in poverty elimination and we are working to increase its effectiveness. The strengths of the Commonwealth are its informality and its ability to mobilise a wide and diverse range of countries.

§ Mr. Baldry
I thank the Minister for that answer and I am sure that the House agrees with his sentiments about the role and potential of the Commonwealth. Given that we have to give a fairly substantial amount of our aid budget to multilateral aid through the European Union, does the Minister have any proposals to increase the 60 per cent. of our bilateral aid budget that we give to the Commonwealth? Given that we can give to other countries through the EU multilateral aid budget, should not the first claim on our bilateral aid be Commonwealth countries rather than spreading it too thinly?

§ Mr. Foulkes
Yes, we want more of our direct assistance to go to the least developed and poorest countries, whether they be Commonwealth countries or others. We want the European Community to put its aid into the poorest countries as well and we are pressing strongly for that.

§ Mr. Peter L. Pike (Burnley)
Will my hon. Friend confirm that we all want to see Pakistan return to democracy and full membership of the Commonwealth as soon as possible? Will he also confirm that we still regard Pakistan as a member of the Commonwealth and that we are still helping with many projects in that country to deal with its problems and poverty?

§ Mr. Foulkes
Yes, we are certainly concerned about the poor people in Pakistan. Whatever the Government, there are still many poor people and we look at ways to ensure that our help gets to them as quickly and effectively as possible.

§ Mr. Gary Streeter (South-West Devon)
How can the Minister justify the recent announcement of increased bilateral aid to Malawi, a Commonwealth country, when we learn that it has just spent vast sums on buying 39 brand new Mercedes cars for Government Ministers? Does he agree with our high commissioner in Malawi, Mr. Finlayson, who said that the British Government would be embarrassed by that, particularly as it is not yet known whether it happened with the benefit of what he called British balance of payments support? Will the Minister take this opportunity to order an inquiry into that potentially serious scandal to reassure the British public that their aid money is not being abused in 210 that way? Will he make it clear that any Government who abuse our help will no longer be supported by the British taxpayer?

§ Mr. Foulkes
As usual, the hon. Gentleman is trying to use diversionary tactics. Malawi is one of the poorest countries in the world, and 64 per cent. of its people are malnourished. I give the hon. Gentleman and the House the absolute assurance that we ensure that our assistance goes to help the poorest people—

§ Mr. Streeter
To buy Mercedes.

§ Mr. Foulkes
We will continue to provide that assistance, despite the hon. Gentleman's continual heckling. He talks and he shouts, but we act to help poor people.

§ Ms Oona King (Bethnal Green and Bow)
I have just returned from Bangladesh, where I witnessed for myself some of the most devastating floods that it has had for a century. Can my hon. Friend outline whether, and how, Bangladesh will benefit from the United Kingdom's disaster relief fund?

§ Mr. Foulkes
Our long-term development programme in Bangladesh is increasing in the next two years from £70 million to £90 million. Moreover, we have just approved about £1 million for flood-related assistance to the affected populations in the west of Bangladesh. We also anticipate approving more immediate flood relief and contributing to flood rehabilitation once the floods recede. I hope that my hon. Friend will be very pleased that this Government are taking quick and effective action.