HL Deb 30 January 1996 vol 568 cc1307-9

2.55 p.m.

Lord Judd asked Her Majesty's Government:

What is the outcome of the fundamental expenditure review of the Overseas Development Administration; which bilateral and multilateral programmes are to be cut; and from which multilateral agencies it is proposed to withdraw.

Lord Chesham

My Lords, the Fundamental Expenditure Review confirmed the need for continued substantial levels of concessional aid. The ODA's policy is to focus this aid on where it is most needed and where it can do most good, particularly in the poorest countries.

Final decisions on the exact distribution of resources for future years are not yet finalised. However, the planned allocation for bilateral aid is likely to be little changed from that set out in last year's FCO departmental report. We have no intention at present to withdraw from any multilateral agencies.

Lord Judd

My Lords, does the Minister agree that the review has underlined the fact that from 0.51 per cent. of gross national product, and rising in 1979, the aid budget was set to fall to 0.26 per cent. of GNP in 1997-98 even before the cuts of last November? Does he further agree that that is happening when across the world one in four people still live in absolute poverty, 800 million people still do not have enough to eat and every day 35,000 children die from preventable diseases? In view of the 114 specific recommendations in this interesting report and the falling resources available to the administration, will the Minister assure the House that the Government as a whole have any strategy at all for their part in the fight against world poverty?

Lord Chesham

My Lords, I can certainly assure the noble Lord that we have a strategy. It remains to maintain a substantial and effective bilateral programme and to intensify efforts to ensure that our contributions to multilateral aid are spent effectively. The FER's conclusions were recommendations only. We are now considering how policies should be changed to respond to those recommendations and we welcome discussion thereon. As regards the amount of aid, it might be interesting for the noble Lord to realise that while we have had a minor reduction in the amount in this year's budget, last year Italy's aid expenditure fell by 36 per cent., Canada is reducing its aid by 20.5 per cent. and that the US, which provides only 0.15 per cent. of GNP as aid, is reducing its programme still further. I believe that the Government have a record considerably better than those other countries.

Lord Redesdale

My Lords, considering that the Fundamental Expenditure Review does not take into account the 0.7 per cent. UN target for aid, is it not time for Britain to abandon its commitment to that under present spending arrangements and actually say that they have given up on aid?

Lord Chesham

My Lords, our position on that is unchanged. We have agreed to the UN target but not to a timetable for reaching it. Levels of aid will continue to depend on our economic circumstances and other demands on public funds.

Lord Bridges

My Lords, may I, through the noble Lord, invite the Government to complete their study of the review at an early date? Is the Minister aware that as a result of the recent sequence of reviews of overseas aid the level of disbursement to the specialised agencies of the United Nations has fallen considerably? Is he conscious of the fact that the United Nations Children's Fund, of whose national committee I am chairman, has noticed a considerable decline? Does he share my concern that at the end of the financial year, which is now not very far away, there may show an evident decline in the Government's support for that organisation, to which they have been most generous in the past and which fully meets the standards of efficiency that the Government now require from agencies of the United Nations?

Lord Chesham

My Lords, we continue to support agencies as far as possible. However, we have had to take some very tough decisions this year which have resulted in cuts in the spending plans of many government departments.

Baroness Gardner of Parks

My Lords, can my noble friend the Minister confirm that a considerable amount of aid is now being determined locally in such countries in need? Moreover, in view of the fact that we have had such Answers in the past, can my noble friend confirm that the money spent through the NGOs is providing very good value for money? Can my noble friend also assure the House that they will still be funded wherever that is possible?

Lord Chesham

My Lords, I am delighted to be able to say that we really appreciate the efforts made by the NGOs. We shall do everything that we can to support them.

Lord Molloy

My Lords—

Noble Lords

Cross Benches!

Lord Avebury

My Lords—

Lord Molloy

My Lords, they have had a turn!

The Lord Privy Seal (Viscount Cranborne)

My Lords, we are running out of time. Of course, I am always in the hands of the House, but, if both noble Lords were able to ask their questions with expedition, I believe that we might be able to get each of them in before moving on to the next Question.

Lord Molloy

My Lords, is the Minister aware that British overseas aid is highly respected in Africa, Asia and. indeed, in the United States of America and the Commonwealth? Anything that could damage that respect would harm the name of Great Britain. Remarkably, such aid was built up by all governments. I hope that the present Government will recognise that fact and ensure that our reputation is in no way harmed.

Lord Chesham

My Lords, the efforts of past governments—and, indeed, those of the present Government—in that respect are certainly very highly valued. We are very well received all around the world as to what we are doing now.

Lord Avebury

My Lords, can the Minister say how many states, apart from Dominica, have had their aid cut because they were in arrears with debt repayments; and how many states—again, apart from Dominica—have enjoyed a 350 per cent. increase in the aid paid to them this year, consequent upon the repayment of such arrears?

Lord Chesham

My Lords, I would need advance notice of such a question. I shall write to the noble Lord on the matter.