§ 4. Mr. Simon Thomas (Ceredigion)What discussions she has had with ministerial colleagues in the Department of Trade and Industry regarding the encouragement of sustainable development in developing countries by the Export Credits Guarantee Department. [46043]
§ The Secretary of State for International Development (Clare Short)My Department worked closely with the Department of Trade and Industry during the 2000 review of the ECGD. We supported the development of the ECGD's new set of business principles which make clear its commitment to sustainable development.
§ Mr. ThomasDoes the Secretary of State agree that, if the ECGD can really take on board sustainable development, there is a huge opportunity for it to work with her Department in achieving real development in developing countries, such as the strategy set out for sustainable energy in the World Wide Fund for Nature's international paper? In particular, will she use her good offices to press the DTI to bring forward the ECGD strategy paper on sustainable development?
§ Clare ShortI agree very much with the hon. Gentleman, not just with regard to the ECGD but on international trade and business. The old ways of selfish, corrupt business that did not benefit poor countries and often got them into debt should be put behind us. They need trade and exports and loans so that they can invest in clean water, sanitation and proper energy sources, which will enable them to grow sustainably and improve the lives of their people. I hope that the reforms that are being put in place in the ECGD will make it a leading-edge player, showing that responsible, ethical business can be good for people who are employed in our own country and can promote development for the poorest people. A change is taking place and we need to ensure that it is taken forward.
§ Hugh Bayley (City of York)When export credit guarantees go wrong, they eventually turn into debt and then to debt relief when they become part of this country's overseas development assistance; so will my right hon. Friend ensure in her discussions with the Department of Trade and Industry that when export credits are first issued to developing countries, the development consequences, including for the poor people in those countries, are considered in case they turn into debt and then into aid?
§ Clare ShortMy hon. Friend is fundamentally right. Much of the debt that has been written off for all the heavily indebted poor countries—I think that it is about 50 per cent. across the world—involves our ECGD or equivalent departments in other countries, and that shows bad lending in the past, often with lots of corruption on both sides of the equation. As well as writing off debt to 565 give countries a chance to go forward with proper economic reform and a better future, we must tighten up on our own export credits and the worldwide use of export credits. That effort is on, but it is difficult. There is a lot of resistance and any help that the House of Commons can give will be gratefully received.