§ Mr. Menzies CampbellTo ask the Secretary of State for International Development what subsidies were paid by the Government to the Pitcairn Islands in each year from 1989–90 to 1999–2000; what is the estimated expenditure for 2000–01; what control the Government exercise over how such subsidy is spent by the Pitcairn authorities; what is the Government's policy towards the level and maintenance of subsidy and bilateral aid to the Pitcairn Islands; and if she will make a statement. [121140]
§ Mr. FoulkesHMG do not give revenue subsidy to the Pitcairn Government. Last year their Government spent £31,000 subsidising electricity and shipping and freight charges. Figures for previous years are not readily available. An analysis of Pitcairn's financial situation has concluded that Pitcairn will exhaust its Investment Fund (income mainly derived from the sale of postage stamps), without remedial action. Therefore, the Island Council has decided that it should remove subsidies while making provision for vulnerable people.
Our Department is consulting the Island Council and the Commissioner for Pitcairn on a medium term financial framework which will look at ways of increasing revenue from areas such as tourism, niche food products, and the issuing of fishing licences.
HMG have recently paid for the refurbishment of all the public buildings on the island, a project to market Pitcairn honey and the upgrading of the electricity distribution network.
We have also approved a £0.5 million contribution to the proposed "Hill of Difficulty" road which our Department is co-financing with the European Commission.