§ 2. Mr. George Foulkes (Carrick, Cumnock and Doon Valley)What recent assessment he has made of the progress of the highly indebted poor countries initiative; and what further action he proposes to take. [132055]
§ The Chancellor of the Exchequer (Mr. Gordon Brown)I can report that 27 countries have started to receive debt relief, now worth up to $70 billion, and eight have now completed the process. I can announce also that, to create a sustainable exit from debt burdens, the UK will support a further change in the calculation of topping-up at completion point, which could provide a further $1 billion in debt relief. The majority of that money would go to health and education.
§ Mr. FoulkesAm I allowed to congratulate the Chancellor on the lead that he and successive International Development Secretaries have taken on the HIPC initiative throughout the world? I know from my experience that that is doing a great deal not only to reduce poverty in the world but to improve the conditions in which terrorism has been thriving hitherto. The initiative helps to make conditions better for people who might be tempted into terrorism. Does he agree that more countries should be benefiting? We have to be honest about this. Some people in some countries are not benefiting because their leaders are either corrupt or undermining some of the work that the international community is trying to do. Can we also take—[Interruption.] Can we take the initiative to promote democracy in those countries too?
§ Mr. BrownMy right hon. Friend is a respected former International Development Minister and he should be listened to because his views carry weight not only in this country but abroad—[Interruption.] Conservative Members are making a lot of noise for a very small number of people—in fact, fewer than 25. I did not think that that sort of number were allowed to meet at the moment.
On debt relief, eight countries have now completed the process. That means that we are in a position to release more than half of the $100 billion that was pledged at Cologne. The United Kingdom has provided $2 billion in debt relief, the Export Credits Guarantee Department has written off nearly $1 billion and we have contributed $500 million to the HIPC trust fund. So, we will continue to push the issue forward by our own contributions but will ensure that countries can genuinely have a sustainable exit from debt.
On corruption, it is a condition of the international finance facility that countries are open and transparent in the way they conduct their fiscal and monetary policies. The money will be released on that basis and that basis alone.
§ Mr. Andrew Robathan (Blaby)I am glad to hear what the Chancellor had to say about open and transparent policies. I do not think that there is much difference 242 between us on HIPC. What is his response to the Jubilee debt campaign, which has written to all Members of Parliament this week to ask in particular whether the process could be extended to all countries? I would certainly have a few problems with that.
§ Mr. BrownThe priority on HIPC is the 36 or so lowest-income countries. That is the way we have proceeded. The international finance facility is the proper way forward for low-income countries that are not part of the HIPC group. In other words, if they can assure us that they are taking the action that the hon. Gentleman and I think is right—that they are transparent and are opening up to trade and investment—we will provide the resources necessary for health and education, which is our duty. So, the HIPC process must be completed with the low-income countries. That is our priority. The international finance facility is the way forward for other countries that are not part of that process.