HC Deb 14 October 1976 vol 917 cc171-3W
Mr. Alan Lee Williams

asked the Minister for Overseas Development if he will make a statement on the British Government's position on the proposed International Fund for Agricultural Development and report on recent developments.

Mr. Prentice

This fund has not yet been set up because the agreed pledging target of $1,000 million has not been achieved. The Secretary-General of the United Nations has addressed an appeal to all interested countries in an attempt to mobilise additional funds and Her Majesty's Government have in response offered, subject to the approval of Parliament, £3 million additional to the original pledge of £15 million of which I informed my hon. Friend the Member for Edmonton (Mr. Graham) in reply to his Question on 24th October 1975. When the likely incidence of expenditure is known, parliamentary approval will be sought in the next estimate for the Overseas Aid Vote. Our contribution will be made available in the form of a non-negotiable, non-interest bearing promissory note payable on demand.

We have made it clear that our offer is made in the hope of encouraging other countries to increase their present contributions in such a way as to at least attain the target of $1,000 million, while preserving the broad principle of rough parity between OECD and OPEC country contributions to which we continue to attach importance.

As a result of the Secretary-General's appeal, the pledged total now stands at $967.736 million, made up as follows:

$ million
Category 1 … (OECD) … 538.036
Category II … (OPEC) … 420.000
Category III … … 9.700(in convertible currencies)

Category III comprises those developing countries which will be eligible for assistance from the fund.

It is hoped that the gap between the total contributions pledged and the $1,000 million target will be bridged in the near future. In anticipation of the target being reached, two important steps have already been taken. The text of the IFAD Agreement has been agreed, adopted and initialled by all interested countries, including the United Kingdom; and the IFAD Preparatory Commission has been set up to work out proposals for a wide range of matters including rules of procedure and regulations to govern financing by the fund. This preparatory commission has just completed its first full working session and will meet again in Rome in the week beginning 13th December 1976 to review the status of pledges to the fund.