Lord Chelwoodasked Her Majesty's Government:
By how much government grants to the British Council have been reduced in real terms over each of the last 10 years; from which countries the council has had to withdraw as a result of these cuts; whether they agree with the director general's comment that if the cuts continue the council will be forced to withdraw from up to eight countries by 1991 and reduce its work dramatically in a further 10; and what proposals they have to restore the situation.
§ The Minister of State, Foreign and Commonwealth Office (Lord Glenarthur)The attached table shows the level of grants-in-aid to the British Council since 1979. Adjustments have been made for overseas price movements and exchange rate fluctuations according to FCO estimates. It has not yet been possible to provide adjusted figures for the full 10 years.
In the past 10 years the council has withdrawn from six countries because of political circumstances and has also closed three posts on grounds of economy and efficiency: Mauritius (which is about to be reopened) Zaire and Costa Rica. According to the council's figures the total funds available to the council have increased by 26 per cent. in real terms since 1979. This is partly the result of increased earnings (e.g., from English language teaching) but principally a result of the council's increased role as an agent of the ODA. The council has also made admirable efficiency savings in the past few years, 1565WA which have undoubtedly contributed to its overall capability to accomplish its essential tasks at
BRITISH COUNCIL RESOURCES: Real Terms 1987–88 Prices £ Million 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 Diplomatic Wing Grant-in-aid 60.9 56.5 54.5 56.9 55.1 56.5 55.0 54.0 55.7 ODA Mixed Money 33.6 30.5 30.9 28.2 28.5 27.5 25.7 21.8* 21.7 *This drop of £3.9m represents a transfer of funding from the 'mixed Money' heading to the ODA 'Aid Administration' heading. This rationalisation was made because it was found that some ODA aid administration work done by the Council was being paid for out of the Council's mixed money allocation. It does not, therefore, represent a reduction in total resources.