HC Deb 19 December 2001 vol 377 cc271-3
1. Mr. Simon Thomas (Ceredigion)

If she will make a statement on the implications for her Department's spending plans of the pre-Budget statement. [21882]

The Secretary of State for International Development (Clare Short)

The pre-Budget statement committed my right hon. Friend the Chancellor of the Exchequer to increase significantly the amount of our development aid and its share of national income. Details will be worked out as part of the spending review over the corning year. I hope that hon. Members in all parts of the House will support a substantial increase in spending, for reasons of moral decency as well as of the safety and the security of the world.

Mr. Thomas

I thank the Secretary of State for that answer. I certainly give her my support for what was contained in the pre-Budget statement. I know that the right hon. Lady will do her best to spend the money wisely.

Another wish shared by hon. Members of all parties is that our spending on overseas development should be raised to 0.7 per cent. of gross domestic product. The Chancellor said that the percentage of GDP that we spend on overseas development would rise, but what is the timetable for achieving that target? Will it be achieved in this Parliament?

Clare Short

I am grateful to the hon. Gentleman for his support for increasing the aid budget. Successive British Governments have committed themselves to reaching the target of 0.7 per cent. of GDP. The previous Labour Government reached 0.5 per cent. The level was 0.26 per cent. when I came back and we are on our way to 0.33 per cent. We do not have a timetable for the 0.7 per cent. target. As we go to the United Nations conference on financing for development, to be held at Monterey, many non-governmental organisations and other countries say that every country committed to that target should give a timetable. The debate is useful, but the UK has not yet set a timetable.

Mr. John McFall (Dumbarton)

I congratulate my right hon. Friends the Secretary of State and the Chancellor of the Exchequer on the work that they have done at international level on this issue, and especially on the way in which they have brought to the fore in this country the need to assist developing countries around the world. However, my right hon. Friend will know that there are still more than 1.2 million people living in absolute poverty. Would not it be symbolic if the UK could say that it would achieve the target of 0.7 per cent. of GDP within a certain time? Will my right hon. Friend take that message as a matter of urgency to the Cabinet table and to my right hon. Friends the Prime Minister and the Chancellor, so that we can consolidate the good work done to date and ensure that the developed countries achieve by 2015 the targets laid out by my right hon. Friends the Secretary of State and the Chancellor?

Clare Short

I am grateful to my hon. Friend. I should be delighted to take the messages expressed by him and by the hon. Member for Ceredigion (Mr. Thomas) to the Cabinet table and to my right hon. Friends the Prime Minister and the Chancellor. I shall make sure that that is done.

We need to improve both the quantity and quality of aid. The World Bank and ex-President Zedillo of Mexico have done studies to determine the amount of resources that should be devoted to aid and how those resources should be used to invest in creating the conditions in which poor countries can grow their economies and provide better services for their people. To meet the millennium development targets, current resources must be doubled. At present, there is $55 billion worth of overseas development aid in the world system, and the estimate is that twice that amount is needed.

The value of the amount of aid resource contained in the budgets of other countries could be increased. That is not true of the UK, but the European Union budget, for example, is not as effective as it could be because of the way funds are tied or misdirected away from where the poor people and the reformers are. To meet the targets to which the whole world has signed up, the amount of resources devoted to aid must be doubled. We in this country have our duties, but we must also mobilise the international community to be more serious.

Norman Lamb (North Norfolk)

Sustainable development and the reduction of poverty are the key objectives of the Department and of the Secretary of State's budgetary and spending plans. What account has the right hon. Lady taken of the consequences for sustainable development in Tanzania of the determination of the Ministry of Defence to push through the sale of the BAE Systems military air traffic control system, which costs £28 million? Does not the episode demonstrate a failure of joined-up Government?

Clare Short

I can tell the hon. Gentleman that I have taken deep and full account of that matter. However, I am not in a position to make an announcement today.

Glenda Jackson (Hampstead and Highgate)

My right hon. Friends the Secretary of State and the Chancellor have done remarkable work in winning the argument about tackling real poverty in the developing world, with the result that a policy of debt relief has followed in train. However, does not my right hon. Friend think that the Government's influence at the Monterey conference may be reduced by the current confusion over the proposed sale to Tanzania of a vastly expensive and utterly unnecessary air traffic control system?

Clare Short

I am grateful to my hon. Friend for everything that she has said. I shall make sure that her message is conveyed to the appropriate quarters.

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