HC Deb 19 December 2001 vol 377 cc343-4W
7. Mr. Lazarowicz

To ask the Secretary of State for International Development what discussions she has had with other European Governments regarding the provision of emergency aid for the Palestinian Authority. [21888]

Clare Short

Without peace, the prospects for economic growth and improved quality of life are negligible. But the potential for the region is considerable. Following the Oslo Accords in 1993, the area enjoyed a period of relative peace and economic growth. This benefited Palestinians and Israelis. Events took a downward turn in September 2000. Since then, there has been a continuing cycle of violence. Various attempts to re-engage the peace process have made little progress. Following the events of 11 September, there has been increased pressure from the international community for a resumption of productive dialogue, accompanied by renewed calls for the creation of a viable Palestinian state.

This is the context for UK development assistance to Palestinians and Palestinian refugees. Our assistance is part of an international effort, with the international financial institutions, the US, and the European Community playing leading roles.

We have provided over £43 million in development assistance and a further £61 million to UNRWA since the establishment of the PA in 1994. We also contribute substantially through our share of the EC and World bank spending. Between 1995 and 1999, the EC's MEDA programme provided euro 3.4 billion (about £2 billion), of which the UK share was 16 per cent, (about £320 million). The World bank has provided some $380 million to the West Bank and Gaza Strip; the UK share is about 5 per cent.

In response to the current crisis, I have increased our contribution to UNRWA by a further £7 million, to a total of £25 million for calendar year 2001. I have also increased our support to the Palestinian Authority by £6 million, to a total of £14 million for 2001–02 financial year.