HL Deb 05 May 1993 vol 545 cc702-4

Lord Bruce of Donington asked Her Majesty's Government:

Whether they are satisfied that the criteria set out in the European Commission's Operational Guide on Technical Assistance to the Commonwealth of Independent States and Georgia (TACIS) have been properly and fairly applied in practice.

Lord Henley

My Lords, given the difficulties of operating in the rapidly changing countries of the former Soviet Union, we think that the Commission has made a reasonable start. We hope that the Foreign Affairs Council will agree on a revised regulation for TACIS in the near future. My noble friend the Minister for Overseas Development will meet Sir Leon Brittan on 18th May to discuss what further improvements are needed.

Lord Bruce of Donington

My Lords, I bear in mind the noble Lord's answer to a previous question relating to an expenditure of £9 million to which he attempted to apply the test of value for money. Is the noble Lord aware of the amount of expenditure authorised in the Commission budget under title B7-62? During the past three years about £794 million has been allocated to that expenditure, of which the burden borne by the United Kingdom is £100 million.Is he satisfied that we are obtaining value for money under that heading, bearing in mind the widely publicised complaints emanating from Russia that a good deal of the expenditure is on paying consultants £2,000 per day, plus £350 a day expenses in Moscow hotels, rather than attending to the matters which are contained within the regulations? What does the noble Lord propose to do about that?

Lord Henley

My Lords, I do not dispute the noble Lord's figures but the figures that I have for 1993 expenditure on TACIS will be about 510 million ecus—that is £407 million sterling—of which our share will be about £62 million.

I believe that I made it clear in my original Answer that we felt that progress had been reasonable. We accept that there is some need for improvements. I can give the assurance to the noble Lord that the new TACIS regulation is almost complete and the Foreign Affairs Council is taking that forward. There will be provision for closer monitoring, better reporting and co-ordination, all of which should improve the effectiveness and speed of the TACIS implementation.

As regards the cost of various consultants, I have to stress to the noble Lord that such expertise is necessarily very expensive. On top of that, one must by definition use EC expertise because, as often as not, there is no local expertise available of the kind that we would need. However, I am advised that the rates of pay being paid to consultants are at the prevailing market rates or lower.

Lord Judd

My Lords, will the Minister clarify whether in the review the Commission will look at the degree to which those in the CIS and Georgia are being consulted about what they really need as distinct from what consultants think they need?

Will the Minister also indicate when the British Government will discuss the issue with EC partners and what their policy will be? How many projects have been earmarked for support as distinct from being consultant-supported?

Lord Henley

My Lords, I can give the noble Lord an assurance that the Government give very high priority to the involvement of recipients in the design and implementation of the programme. We would hope that new co-ordinating units in the recipient countries will certainly strengthen that role. As I said in my original Answer, my noble friend hopes to meet Sir Leon Brittan on 18th May to discuss what further improvements are needed. I am afraid that I cannot answer the noble Lord as to when there will be further meetings between my noble friend and her ministerial colleagues within the Community.

Lord Judd

My Lords, what is the number of projects earmarked for assistance?

Lord Henley

My Lords, I shall write to the noble Lord.

Lord Bruce of Donington

My Lords, is the noble Lord aware that when, for example, the Russians were consulted on the matter, DGI of the Commission allocated to the Moscow authority nominees of the University of Grenoble to help them in those various matters whereas the Russians themselves would have much preferred the London School of Economics?

Will the Minister assure the House that the Government will monitor the matter carefully and make quite sure that British consultants and those from other member states receive their fair allocation, and that undue preference is not shown in respect of French consultants? Will he give the House a further assurance that when the preliminary draft budget of the Commission, which will be published on 15th May, comes into his hands, the Government will very carefully monitor the items under that heading, obtain a satisfactory analysis and inform the House?

Lord Henley

My Lords, the noble Lord asked a large number of questions and I shall answer some of them. As regards value for money, I believe that I made it quite clear that the Government give very high priority to achieving value for money. We shall continue to monitor progress in the field, as the noble Lord quite rightly asked us.

The noble Lord also asked why the LSE had not won a particular contract and it had gone to another university. I would not wish to comment on any individual cases, bearing in mind the interest that the LSE has in this House. However, I can assure the House and all noble Lords that the United Kingdom has captured the largest share of business under TACIS. I understand that it is in the order of about 20 per cent. of the contracts that have gone out.