§ Mr. E. Rowlandsasked the Minister of Overseas Development if the review of the Commonwealth Development Corporation's financial arrangements with the Government which it was proposed in 1961 should be held in 1964 has been undertaken; and if he will make a statement.
§ Mr. PrenticeA review was initiated in 1964 but it was deferred pending the overall consideration of aid policies following the establishment of the Ministry. Meanwhile my predecessor announced on 21st June, 1965, a concession under which Exchequer advances for certain types of projects qualifying as having special developmental significance would be free of interest for up to seven years.
A further review has now taken place.
Administrative procedures have been reviewed and made more flexible. It has been decided that in future part of the Exchequer advances to the Corporation within the annual aid programme should be interest free for seven years. The amount which is interest-free will be settled annually in discussion with the Corporation in the light of the extent to which they plan to undertake qualifying projects and of past experience of disbursements in respect of such projects.
The 1961 formula under which part of the Corporation's profits was used towards the discharge of the Corporation's deferred liability has been revised in the Corporation's favour.
These changes have been welcomed by the Board of the Corporation.—[Vol. 714, c. 1196–1200.]