§ Lord Mountevansasked Her Majesty's Government:
What response has been made to the Monopolies and Mergers Commission report on the efficiency and costs of and the service provided by the Commonwealth Development Corporation.
§ Baroness Chalker of WallaseyI have today placed in the Library of the House responses by the Commonwealth Development Corporation and the Government to the recommendations made in the Monopolies and Mergers Commission's (MMC) report. The Government welcome the MMC's 23WA conclusion that "CDC provides a particularly valuable form of assistance to the economies of developing countries". The MMC were impressed "by CDC's competence and by the dedication with which its staff work, often in difficult circumstances, towards the Corporation's objectives". The Government regards CDC as an important part of Britain's overall aid effort and it is the principal vehicle under the aid programme for directly assisting the private sector.
The commission made a number of recommendations to improve the efficiency and procedures of the corporation. CDC has accepted 25 of 28 of these for implementation in whole or in part.
The MMC also recommended that some important issues, relating particularly to the corporation's capital structure and funding, should be considered in the context of the current quinquennial review of CDC. A further statement on these issues will be made to the House once this review has been completed.