Lomé Convention and EU Aid (Hansard, 1 March 1995)

§ Baroness Chalker of Wallasey
My Lords, we remain fully committed to the Lomé Convention and, above all, to improving the effectiveness of the EC's aid programmes. These are high priorities for us.

§ Lord Judd
My Lords, does the Minister accept that she will have our full support for any action that she is able to take to strengthen the effectiveness of the Lomé agreement and the European Development Fund? Such action is necessary in the aftermath of the Uruguay Round which adversely affected sub-Sahara and other similar areas. Does she agree that despite undertakings given by the Prime Minister three years ago to Commonwealth leaders, both bilaterally and multilaterally, resources are increasingly being diverted from the poor of the third world to the former Soviet Union and eastern Europe? What do the Minister and her European colleagues intend to do to correct that trend?

§ Baroness Chalker of Wallasey
My Lords, the noble Lord, Lord Judd, is right about seeking to strengthen the working of the Lomé Convention. However, we must ensure that the European Union makes its programmes 1482 as effective as possible. I noted, in the evidence to the House of Commons Select Committee on Foreign Affairs, that the European Commission said that: Only a third of its projects and programmes go well; around one-third are satisfactory but not brilliant and about one-third are not good value for money. The noble Lord will, therefore, understand why I am keen to improve the situation. He is absolutely right that trade access to those countries is critical. That is why I have argued consistently that we should discuss the matter in detail, and I shall continue to do so.
I believe that the peaceful transition of the countries of eastern Europe and the former Soviet Union is important, but we must also keep up the good progress which is being made by many of the African countries. That means that we must cut our coat according to our cloth and not make decisions which we cannot afford to fulfil. We must bring a balance to the situation.

§ Lord Ennals
My Lords, is the Minister prepared to give the figures which would indicate the priority which the Government give, first, to Lomé and, secondly, to projects through the European Community? Can she indicate whether the figures are on an upward or a downward trend, showing the degree of commitment to which she referred?

§ Baroness Chalker of Wallasey
My Lords, I cannot give the noble Lord the exact figures without notice. However, obviously the Berlin Wall only fell in 1989 and before that the European Union and we ourselves could not give help to the eastern European and former Soviet Union countries. Thus, those figures are inevitably on an upward trend, although not a continuing upward trend. The figures for the poorest countries of the world remain approximately level with some changes, according to the different projects that arise at any one time. The figures given for the poorest countries, particularly through special programmes for Africa and the assistance programmes other than that of the European Union, show an increase. It is important that they continue to do so and I shall write to the noble Lord with the details.

§ Lord Acton
My Lords, does the Minister agree that Britain and all the countries of the European Union wish to assist in the development of post-apartheid South Africa? To that end, during the course of the current Lomé 4 mid-term review, will the Government do their utmost to ensure that a clause is inserted to enable South Africa to form the closest possible relationship with the Lomé Convention?

§ Baroness Chalker of Wallasey
My Lords, as a close friend of South Africa and its new government, we have been discussing what relationship is in the best interests of South Africa, both directly with bilateral donors and with the European Union. As the noble Lord may know, £100 million of UK aid is committed to South Africa, £60 million of which is bilateral aid. However, Ministers in South Africa are not yet fully agreed upon the 1483 relationship with the Lomé Convention. They will want trade access and help and Britain is already giving a major part of that help.

§ Baroness Elles
My Lords, will my noble friend confirm that the European Development Fund, which provides the funding for the Lomé Convention, is not subject on any occasion to democratic control either by the European Parliament—because it is not in the European Community budget—or by a national parliament under present circumstances? Does my noble friend agree that the matter should be closely examined in order to encourage certain projects not to waste taxpayers' funds throughout the Community?

§ Baroness Chalker of Wallasey
My Lords, as my noble friend will know, I have sympathy with her view that we should have better control of European expenditure of aid money. We started a Horizon 2000 work programme under our 1992 presidency because we believe that if we could achieve greater co-ordination between the Commission and the member states we would not only make better use of EDF, but would also have better results. That is proceeding, albeit too slowly. I believe that the debates now taking place between our 14 partners and ourselves with the Commission will lead to improvement. However, as the commitment will be decided upon voluntarily, it will also be up to us to argue in the development council the best way of spending the money.

§ The Lord Bishop of Oxford
My Lords, does the Minister believe that adequate mechanisms are in place for considering the effect of European trade policies on the economies of the developing world? Does she believe that such effects are properly considered and taken into account in the formulation of policy?

§ Baroness Chalker of Wallasey
My Lords, I wish that there had been a debate when we were last in Brussels ready to discuss the matter. I sought to persuade members of the ACP and the EU to engage in a debate. The two chairmen declined, even though all our friends in the ACP wanted a discussion about trade. I do not believe that the trade discussion is as adequate as it needs to be.

§ Lord Ashley of Stoke
My Lords, how does the Minister reconcile her first Answer about the Government remaining committed and having aid as a high priority with the undoubted fact of the diversion of resources to the Soviet Union and eastern Europe? Is it not a fact that finances to the third world are being cut? Statements by the Minister that we must cut our coat according to our cloth ignore the fact that the cut has taken place. It is the Government's responsibility to restore the cut.

§ Baroness Chalker of Wallasey
My Lords, the noble Lord, Lord Ashley, has omitted to note that there is not only an increase in what we spend but also a continual increase in the European development funds. I remind him that the seventh programme now in operation has an increase of over 45 per cent on the sixth programme which operated at nearly a 40 per cent. increase on the fifth programme. So there is no question but that those 1484 countries are receiving attention. However, we cannot close our eyes to the fact that eastern Europe and the former Soviet Union also need help. I said that we must achieve a balance and we are striving to achieve that now.

§ Viscount Waverley
My Lords, would it be a more effective use of resources if the ACP secretariat were urged to reassess its capacity for efficient delivery in terms of its role as facilitator to ACP countries in this critical period of the Lomé Convention?

§ Baroness Chalker of Wallasey
My Lords, it is important that the ACP countries and governments are kept well informed by their secretariat about all aspects of the convention. We must help to bring that about.

§ Lord Judd
My Lords, does the Minister accept that in the European programme it is not a matter of quality against quantity, but the need for quality with quantity? Is not her real problem that, despite her valiant efforts, both multilaterally and bilaterally the British aid programme has been steadily decreasing as a proportion of GNP and is set to fall in real terms over the next four years?

§ Baroness Chalker of Wallasey
My Lords, there are many problems in helping the third world. We must give quality and ensure that it is effectively targeted.