HL Deb 26 February 2002 vol 631 cc207-8WA
Lord Hylton

asked Her Majesty's Government:

Whether they are re-assessing the importance to the world's poorest countries of complete debt relief in the light of events since September 2001; and whether they can estimate the cost to the United Kingdom of providing such relief. [HL2785]

Lord McIntosh of Haringey

At their meetings in November last year both the International Monetary and Financial Committee (IMFC) of the IMF and the Development Committee of the IMF and the World Bank recognised that lower global growth prospects and declining terms of trade are likely to adversely affect many low-income countries.

The IMFC, chaired by the Chancellor, called on the IMF, in close collaboration with the World Bank, to respond flexibly and proactively to the needs of heavily indebted poor countries (HIPCs), including through additional concessional financing and debt relief where appropriate.

For all countries qualifying under the enhanced HIPC initiative, the UK is already providing complete debt relief at decision point under its 100 per cent policy. The UK continues to work hard to ensure that HIPC delivers an exit from unsustainable debt for all eligible countries. We also call on other countries to follow our leads on bilateral policies, such as 100 per cent relief at decision point, and in holding payments in trust for those countries yet to receive debt relief. Already 24 countries have qualified for debt relief, and they will benefit from over 56 billion dollars in debt

All figures are £000s
Resources Capital
Change New DEL Of which voted Non-voted Change New DEL Of which voted Non-voted
LCD 85,181 2,798,549 2,709,690 88,859 −3,672 37,894 30,094 7,800
NICtS −3,378 78,622 73,082 5,540 6,561 12,561 12,561 —
PRO 4,750 32,345 32,345 0 350 1,394 1,394 —
Total 86,553 2,909,516 2,815,117 94,399 3,239 51,849 49,049 7,800

The change in the resource element of the DEL is the net effect of take-up of £60,000,000 from the asylum reserve; draw-down of £226,000 administration costs from the Invest to Save Budget; transfer of £7,000,000 (administration costs) from Northern Ireland Court Service; reduction of departmental unallocated provision of £12,208,000, of which £4,674,000 is administration costs; transfers from the Home Office in respect of: machinery of government changes, £2,371,000, of which £121,000 is administration costs; CJS reserve entitlement, £1,241,000 administration

reduction, which will bring their debts to below the developing countries average.