§ 2.53 p.m.
§ Lord Juddasked Her Majesty's Government:
What changes they propose to introduce in the relationship between overseas aid and development programmes and the promotion of overseas trade.
§ Lord WhittyMy Lords, all our programmes are being reviewed. That includes the relationship between overseas aid and the promotion of overseas trade. As your Lordships will be aware, the Government's plans will be set out in the White Paper which is due to be published in early November. The Government will encourage and assist developing countries to become more fully integrated into the multilateral trading system and to participate in the World Trade Organisation. In that process, we shall also work closely with the UK private sector to develop a new agenda designed to increase both investment into and trade with developing countries.
§ Lord JuddMy Lords, will my noble friend accept that we are all looking forward with great eagerness to the publication of the White Paper? Will he assure the House that, in view of the lamentable episodes under the previous administration, while it is to be welcomed if British economic interests coincide with genuine development priorities, in so far as the relationship between aid and trade is concerned, where aid funds are being deployed they must always be deployed without qualification—by criteria for development, and sound development, alone?
§ Lord WhittyMy Lords, those issues are being reviewed and the full answer to that question will be in the White Paper. However, it is quite clear from measures taken by the previous administration and ourselves that the provisions which led, for example, to the disastrous episode of the Pergau Dam could not be repeated even under the present arrangements and, as I say, they are being further reviewed.
§ Lord Steel of AikwoodMy Lords, I support what the noble Lord, Lord Judd, said. Under the previous government the Overseas Development Administration was too often overruled by what were perceived to be the wider issues of government. Will the Minister ensure that when the promised White Paper comes forward, there is a clear delineation of expenditure on trade promotion, which should properly come out of the DTI budget and not out of the already constrained funds for overseas development?
§ Lord WhittyMy Lords, we certainly agree that there needs to be a clear distinction between the two objectives. Again, that will be in the White Paper. Certainly in relation to aid projects, the developmental criteria will be the paramount criteria.
§ Viscount WaverleyMy Lords, is not a difficulty that, while there is justification for political and economic tied aid, it should be referred to as something different in order to distinguish it from aid in its true sense?
§ Lord WhittyMy Lords, there may be some change in definition which we shall need to introduce through the White Paper. There are obviously gradations in that area but the objectives need to be clear. The objectives in the view of the Department for International Development will clearly be developmental objectives.
§ Lord Taylor of GryfeMy Lords, is the Minister aware that it is a common practice in bidding for overseas contracts by our competitors to ensure that there is an element of aid in the bid contract? Will he keep in mind, in reviewing that matter, that the interests of British exporters have also to be protected?
§ Lord WhittyMy Lords, that is precisely why we are saying that it is extremely important that there is a partnership between the private sector and the British Government's aid programme in those areas. That is very much part of the strategy which will be demonstrated in the White Paper.
§ The Lord Bishop of DurhamMy Lords, will the Minister assure the House that direct overseas aid, in terms of the percentage of the gross national product, will be at least maintained by present standards and perhaps even increased?
§ Lord WhittyMy Lords, as the House is well aware, we are constrained in relation to the commitment for the first two years of this Government. However, it would be the intention that a higher percentage of public expenditure would go to the aid programme in subsequent years.
§ Baroness YoungMy Lords, will the Minister recognise that in giving overseas aid he might consider the particular needs of the dependent territories which have not been that well treated in the recent past?
§ Lord WhittyMy Lords, the House will be aware that a review of the dependent territories is currently being carried out and that will be one aspect of the review.
§ Lord JuddMy Lords, will my noble friend accept that his answers are reassuring? However, can he reassure the House also that the news which he is circulating today about the future of the Commonwealth Development Corporation is news which we shall have an opportunity to debate in this House before final decisions are made?
§ Lord WhittyMy Lords, that is an excellent suggestion which will need to be conveyed to the business managers. Your Lordships may be aware that this morning the Prime Minister announced that the Commonwealth Development Corporation will in future be allowed to attract private investment and private funds. That is yet another example of the partnership between the Government and the private sector in the aid field which will be part of our overall strategy.
§ The Earl of SandwichMy Lords, is the Minister saying in his first Answer that the aid/trade provision is to be abolished? If that is the case, it will be greeted with great relief by the aid organisations. Secondly, is he prepared also to divert some of those ATP funds to the poorest developing countries which need trade because world trade with them is falling?
§ Lord WhittyMy Lords, on the latter point, we are very much involved in the WTO's efforts in relation to the least developed countries to allow them more effective access to the world trade markets. As regards the former point, the noble Earl will have to wait for the White Paper. In this case he will not have to wait for long because, as I said, we are intending to publish it in early November.
Lord LucasMy Lords, I suspect that the noble Lord, Lord Judd, will not wish to join me in congratulating the Government on their first privatisation. May there be many more to come! Does the Minister support the theme of the Commonwealth business forum which is 721 taking place in London today—that trade, investment and development are the road to Commonwealth prosperity? Further, may we expect to see an increased emphasis on such projects in the White Paper?
§ Lord WhittyMy Lords, the tenor of almost everything that I have said is that the private sector, aid and trade are all important in our development strategy. That was reflected in the Prime Minister's speech this morning and in our commitment to extending the role of the Commonwealth Development Corporation. It is not a privatisation in the traditional sense; it is a form of privatisation which will increase the ability of this country to aid the least developed countries in the world. I believe that all of us in this House ought to applaud that.
§ Lord ReaMy Lords, only 10 minutes have expired out of the allowed 30 minutes for Question Time. Therefore, will my noble friend the Minister consider the case for the least developed countries to have short-term tariffs in order to protect their indigenous rather than internationally-owned industries so that they can diversify from their dependence on raw commodity products?
§ Lord WhittyMy Lords, I believe that my noble friend will be aware that within the existing rules of the WTO there is provision for short-term protection in those circumstances. However, the long-term aim must be to bring those least developed countries into the world trade structure. That is the strategy of the WTO and indeed of this Government.