§ Mr. Carter-Jonesasked the Minister for Overseas Development if he will support, encourage and fully inform the manufacturers of turbine generators of prospects for the sale of such equipment in underdeveloped countries and issue departmental advice on the importance of encouraging such ventures for British manufacturers; if he will make sure that British manufacturers are not undercut in providing generating equipment using British aid; and if he will make a statement.
§ Mr. PrenticeMy right hon. Friend the Secretary of State for Trade is generally responsible for passing on to British industry information which the Government may acquire about possible export opportunities, and for supporting and encouraging the efforts of British exporters. These responsibilities naturally include the potential for sales of turbine generators in developing countries.
My Department keeps in close contact with the Department of Trade about the opportunities which the aid programme presents for British manufacturers. It also provides to firms who request it news about the purpose for which aid funds are allocated, and answers commercial enquiries arising from grants and loans. The Ministry's newspapers twice a year carries a statement of outstanding grants and loans and the broad purpose of the expenditure.
Subject to the main developmental priorities of the Government's aid strategy, the aid programme is operated so as to enhance our trade opportunities with the developing world. Most of our bilateral aid is tied to procurement of British goods and services. This money is used to pay for individual contracts, negotiated on a strictly commercial basis, for projects and purposes selected chiefly by the country concerned in consultation with us so as to ensure their developmental value. It is to the advantage of both the developing country and the British taxpayer that the former should 214W strike as good a bargain as it can, and, as a general rule, if our aid is not required for one contract it can be used for another. It is not, therefore, our practice to try to devise special subsidy arrangements which would interfere with the normal commercial system and would unduly help one sector of British industry at the expense of another.
Commitments from aid funds for identified electrification projects in the last two years came to more than £30 million, and shipments of power generating machinery were worth some £10 million.