Poland and Hungary: Assistance (Hansard, 6 February 1990)

§ The Minister of State, Foreign and Commonwealth Office (Lord Brabazon of Tara)
My Lords, Know-how funds for Poland and Hungary have been created to transfer the skills needed to run free market economies and democratic societies. We have given 100 million dollars to the international stabilisation fund to support Poland's IMF-approved economic reform programme. We stand ready to help support a firm economic reform programme for Hungary when one is agreed with the IMF.
The UK is also playing a leading part in the European Community programme which in 1990 will disperse £210 million in Poland and Hungary, on top of the food supplies worth £23 million for Poland approved last month.

§ Baroness Strange
My Lords, I thank my noble friend the Minister for his extremely helpful and encouraging reply. My noble friend Lady Cox initiated a debate on this subject on 11th December on her return from Poland. She spoke of the great lack of food and medical supplies there. Will my noble friend confirm that medical supplies will be included in the European aid package?

§ Lord Brabazon of Tara
Yes, my Lords. One of the matters that the EC is concentrating on is the supply of medical assistance. The Commission held a meeting of the group of 24 donor countries on 26th January to discuss further medical assistance. The United Kingdom emphasised the urgent need for that to be brought forward.

§ Lord Lloyd of Kilgerran
My Lords, is the Minister aware that the countries referred to in the Question are inviting help for the supply of know-how, both technical and administrative, in order to help their small companies? What steps are the Government taking to assist in that direction?

§ Lord Brabazon of Tara
My Lords, we have been providing precisely that kind of help to Poland particularly through the know-how fund. There are currently a large number of projects that are in hand or are to be implemented or completed. I shall be happy to send the noble Lord a list of those projects and place a copy in the Library.

§ Lord Mellish
My Lords, while the change of the Polish people to democracy is particularly welcome to all of us, that democracy cannot last unless they feed the stomachs of their own people. If the Government want democracy to succeed, as we all do, what are they doing to ensure that countries such as Poland get out of the awful economic mire that the wretched communists have left them in?

§ Lord Brabazon of Tara
My Lords, food aid has featured highly on the list of priorities. The EC has already contributed 100 million ecus in the first tranche and last month announced a further £23 million of food aid. In addition to that, Community project assistance for Poland and Hungary worth 300 million ecus has been announced and the United Kingdom has also provided a food project worth £15 million.

§ Lord Cledwyn of Penrhos
My Lords, while we appreciate the unilateral assistance which Her Majesty's Government are giving to these two countries, is it not the case that the problem encompasses the massive economic problems not only of the two countries referred to but also of all the other East European countries including the Soviet Union? Should not the policies of this country and our allies be to ensure that at this critical point in history we should be doing everything we can to establish stable democratic governments in all those East European countries as the consequences of destabilisation and Balkanisation are too terrible to contemplate? The challenge is great but the opportunities are also great. In those circumstances will Her Majesty's Government consider giving a lead in calling an international economic conference to consider whether the problems can be resolved on a global scale?

§ Lord Brabazon of Tara
My Lords, the noble Lord makes a good point and I shall certainly draw it to the attention of my right honourable friend. However, we are helping on an international basis, principally through the group of 24, whose efforts are being co-ordinated by the European Commission. That is achieving quite good practical results in the short term.

§ Lord Orr-Ewing
My Lords, will my noble friend consider extending the terms of reference of the know-how fund so that it includes references to deal with Poland's desperate environmental problems at the present time?

§ Lord Brabazon of Tara
My Lords, certainly. So far as concerns environmental problems, we and our European partners have set aside between £35 million and £50 million of the EC's project assistance for Poland and Hungary this year for environmental assistance.

Baroness Ryder of Warsaw
My Lords, I work frequently in Poland and so far have not heard of or seen any special funds that have been allocated specifically to the health service there. Is the Minister aware that the Polish health service is in chaos? Conditions are desperate and far worse than they 697 were 25 years ago. It is known that 120 hospitals started by the Poles are incomplete. In addition, the foundation which I represent requires a minimum of £12 million to £14 million to build further homes and hospitals for all age groups and disabilities and the thousands of sick, destitute and dying, particularly those with cancer and leukaemia and many other disabilities and diseases. Can the Minister therefore say what funds have been allocated to the health service in Poland, because we have been told that assistance is to be provided from this fund or that fund or the know-how fund, but neither I nor the Health Minister in Poland can pin it down?

§ Lord Brabazon of Tara
My Lords, I am sure that all noble Lords admire the work that the noble Baroness does in Poland. I shall certainly bear in mind very carefully what she has said today. I have already referred to assistance with medical supplies, but I shall take account of what she said.

§ Lord Taylor of Gryfe
My Lords, does the Minister agree that Europe was saved from chaos at the end of the war by the imaginative scheme of the Marshall Plan and that this country contributed 1 per cent. of its GDP to assist European countries less fortunate than ourselves? Can he give us any hope that a similar imaginative plan will be agreed between us and our allies in order to take advantage of the tremendous change which is taking place in Eastern Europe?

§ Lord Brabazon of Tara
My Lords, I hope that I can give the noble Lord some encouragement. I have already referred to the group of 24 countries which have declared their willingness to respond to the needs of other countries in Eastern Europe as well as Poland and Hungary. We have already announced that our know-how fund will be extended to other countries in Eastern Europe as and when they make a firm commitment to democracy.

§ Lord Kennet
My Lords, will the Minister take this opportunity to comment on a story in this morning's newspapers to the effect that Conservative Members of the European Parliament want the funds for building up democracy in Eastern Europe to be sent exclusively to parties of the centre right? Is the story true? If it is true, will the Government dissociate themselves from that intention in favour of sending funds impartially towards the construction of democracy itself, which comes first?

§ Lord Brabazon of Tara
My Lords, I have not seen the story to which the noble Lord refers. The know-how fund is directed towards politicians of all kinds. Groups of Hungarian and Polish politicians have already participated in successful seminars on the UK parliamentary system organised by the Great Britain-East Europe Centre.

§ Baroness Elles
My Lords, is the noble Lord aware that the European Conservative group joined with others in setting up a fund to help all parties in 698 Hungary and Poland to set up democratic bodies and that the Socialist group in the European Parliament voted against the proposal?

§ Lord Brabazon of Tara
My Lords, noble Lords will be grateful for the information which my noble friend has provided on the subject.

§ Lord Molloy
My Lords, in addition to aid, will the Government also consider trade, particularly in the case of Poland? In the light of discussions which some of us had with Lech Walesa, the great Polish trade unionist whose organisation has played such a vital role in these events, would it not be sensible for our Government to invite the Polish equivalent of the CBI and the TUC to increase trade, in addition to contributing in the form of aid?

§ Lord Brabazon of Tara
My Lords, trade is principally a subject for the judgment of commercial companies. It is for them to decide whether to invest in Poland. The know-how fund to which I have already referred gives assistance to people such as those to whom the noble Lord referred to learn how to operate in a market economy.

Viscount St. Davids
My Lords, will the Minister ensure that the aid is spread among small companies, since that is not only the most economic way of dealing with the problem but also at this stage of the development of Eastern Europe any company of value is likely to be small?

§ Lord Brabazon of Tara
My Lords, the aid is not given to individual companies. The know-how fund is aimed at teaching people how to run companies.

§ Lord Whaddon
My Lords, is the noble Lord aware that the vast number of technical and commercial problems faced by Polish industry and commerce can only be solved by a huge range of detailed contacts between companies there and companies here? Is he aware that Germany in particular is outstripping by a long way the contacts gained by British industry? In view of the importance of joint enterprise in the solution of the problems, will the Government undertake a widespread publicity campaign to make British industry aware of the opportunities?

§ Lord Brabazon of Tara
My Lords, I am not sure that it is for the Government to make British industry aware of the opportunities. British industry is obviously well aware of the changes. No one could not be aware of what is going on in Eastern Europe. I am sure that companies will take advantage of the opportunities when they are presented to them.