HC Deb 23 October 2001 vol 373 cc117-8W
Harry Cohen

To ask the Secretary of State for Foreign and Commonwealth Affairs which countries have indicated(a) support for (b) opposition to the UK proposal to alter the interval between the price fixing of Iraqi oil from 30 days to 10 days; and if he will make a statement. [9122]

Mr. Bradshaw

Russia alone of the P5 has so far been unable to support the principle of the UK's initiative to seek fair market value for Iraqi oil exports (in line with the UN's commitment to do so), by reviewing the price set for Iraqi oil against the oil's market value every 15, instead of 30, days.

Harry Cohen

To ask the Secretary of State for Foreign and Commonwealth Affairs if his proposal to the United Nations to alter the interval between the price fixing of Iraqi oil from 30 days to 10 days would have(a) positive or (b) negative economic and social consequences in Iraq; and if he will make a statement. [9123]

Mr. Bradshaw

The UK's initiative, to review the price of Iraqi oil more frequently (every 15 instead of 30 days) in order better to match its actual market value, is maximising the revenue available to the "oil for food" humanitarian programme which benefits the Iraqi people. It also limits the opportunity for the Iraqi regime to obtain funds illegally for itself. We have proposed that the UN Sanctions Committee formally adopts this procedure to meet its commitment to obtain fair market value for Iraqi oil exports.