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Palestine National Authority

27. Mr. Janner: To ask the Secretary of State for Foreign and Commonwealth Affairs what measures he proposes to take to ensure that funds provided by the United Kingdom for overseas aid to areas controlled by the Palestine National Authority are properly used for the purposes provided. [20707]

Mr. Hanley: All UK bilateral aid to the Palestinians is closely monitored and is channelled through reputable British project management organisations or international agencies with proven and reliable systems of disbursement.

Mr. Janner: What check is made at the other end as to the actual disbursement, and what safeguards are in place to ensure that none of the money properly and rightly raised in this country or by other international

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donors for the Palestine National Authority is used in any way or at any time for the activities of Hamas or Islamic jihad, whether for so-called communal welfare projects or anything else?

Mr. Hanley: The hon. and learned Gentleman raises an extremely important issue about which I am sure that the House shares his anxiety. Overseas Development Administration projects on the West Bank and in Gaza are monitored by project managers under contract to the ODA, by regular visits from ODA staff and by the consulate general in Jerusalem, which I visited recently. Staff at the consulate general have been strengthened by the secondment of an ODA officer as field manager for our aid programme.

The UK receives great plaudits for the ODA's targeting of its aid. Its projects are extremely good--I can vouch for that. We have provided some £5.5 million of assistance to the police in Palestine over the past 18 months, and we are also helping with a number of health and education projects. I can confirm that the aid money going to the Palestinians is well spent, well targeted and well audited.

Not long ago, I attended the donors' conference at which $850 million was collected for the Palestinians from 51 sources. I do not believe that that money would have been raised if there had been serious doubts about its proper maintenance and disbursement. If we receive any evidence that money is being collected in this country by Hamas for terrorist activities, we shall not fail to act immediately. That is something that we would not accept.

Mr. Sumberg: I emphasise the point made by the hon. and learned Member for Leicester, West (Mr. Janner). It is vital to ensure that money does not get into the hands of terrorists. We call on the United States Government to ensure that money does not go to the IRA for its evil purposes, and we must call on the Palestinian authorities to ensure that money does not go to Hamas.

Mr. Hanley: I agree with my hon. Friend. It is vital that money raised for the Palestinians is not diverted to sponsor terrorism. That would be unacceptable to the Government and, I am sure, to all right hon. and hon. Members. The Charity Commission is investigating an accusation. If we, the Government, receive any information or evidence, we shall act on it immediately.

Aid Target

29. Mr. Mike O'Brien: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will set out the Government's policy in respect of meeting the United Nations 0.7 per cent. of gross domestic product target in relation to aid. [20709]

Mr. Hanley: We have agreed to try to reach the UN target as soon as possible, but like many other donors we have not set a timetable for doing so. Progress towards the target will depend on our economic circumstances and on other priorities for public expenditure.

Mr. O'Brien: If it is still a Government target, why does the Government's policy seem to be going in the opposite direction? They inherited from the Labour Administration a contribution of 0.5 per cent., which has

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decreased to 0.3 per cent. The ODA's recently published fundamental expenditure review discloses that the contribution is falling to 0.26 per cent. Why is Government policy moving in the opposite direction from that which it should be following? Do the Government lack a sense of direction or do they lack a sense of candour?

Mr. Hanley: No. The target still remains. Our ability to move towards it depends on the United Kingdom's future economic performance and on many public expenditure priorities. It is impossible to forecast how the economy will fare or what conflicting priorities may arise in the future. That statement might just as well be made by the Opposition spokesman, the hon. Member for Carrick, Cumnock and Doon Valley (Mr. Foulkes), because the Opposition have stated that they have the same target of 0.7 per cent. Yet they have refused to make a commitment or to set a time scale.

We believe that it is right to concentrate on ensuring that our substantial aid is effective. I look forward to hearing the hon. Member for Carrick, Cumnock and Doon Valley tell the hon. Member for North Warwickshire (Mr. O'Brien) exactly what the Labour party's time scale would be for achieving 0.7 per cent. if Labour were ever to be in Government.

Mr. Forman: Within what is still the fifth largest official aid programme in the world, will my right hon. Friend give due weight to the cost-effectiveness and importance of the pound-for-pound scheme, which was designed to contribute £1 of British taxpayers' money for every £1 that is raised and used extremely effectively by non-governmental organisations in the developing world, such as Oxfam and Christian Aid?

Mr. Hanley: My hon. Friend does the House a service in reminding it that we have the fifth largest aid programme in the world. That is entirely sensible, because we have the fifth largest economy. Our budget--it is well over £2.2 billion--is impressive. I know that the Opposition do not like me repeating these facts. This year Italy's aid expenditure fell by 36 per cent. Canada has reduced its aid budget by 20.5 per cent. The United States provides only 0.15 per cent. of its gross national product as development assistance, and it is reducing its programme still further. In other words, our contribution is extremely impressive--and we intend to ensure that it remains so.

Multilateral Aid

30. Dr. Godman: To ask the Secretary of State for Foreign and Commonwealth Affairs when he last met his European counterparts to discuss the subject of multilateral aid. [20710]

Mr. Hanley: My right hon. and learned Friend the Secretary of State for Foreign and Commonwealth Affairs has discussed multilateral aid with his European counterparts regularly during meetings of the EU Foreign Affairs Council, the last of which was on 26 February. My right hon. and noble Friend the Minister for Overseas Development also has regular meetings with her opposite numbers.

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Dr. Godman: Multilateral aid has an important role to play, but does the Minister agree that the PHARE-TACIS programmes--Poland and Hungary assistance for economic restructuring, and technical aid to the Commonwealth of Independent States--suffer from serious weaknesses and are poorly managed in Brussels? Why are millions of ecus wasted on expensive consultancy when NGOs are denied funding? Why not apply the principle of subsidiarity and ensure that those programmes are run by the Governments of the member states and not by Brussels?

Mr. Hanley: The hon. Gentleman is absolutely right that there are problems with the delivery of the PHARE and TACIS programmes. It seems that PHARE is slow. The causes of that include over-centralised control in Brussels, too few staff, and complex procedures. Recipient Governments can also cause delays. Improvements are planned. There will be better programme planning and more decentralisation of decision making. I can tell the hon. Gentleman that there will be more decentralisation and more use of financial intermediaries, which should bring faster project implementation. There will be strengthened EC delegations and improved monitoring and evaluation.

I believe that a certain councillor in Strathclyde had discussions recently with local NGOs which complained about the time that it takes to get the PHARE programme approved. I agree with her.

Mr. John Marshall: Will my right hon. Friend confirm that there is no correlation between economic aid which goes to countries and their economic growth, but that there is a strong positive correlation between private investment in the third world and growth in particular countries?

Mr. Hanley: My hon. Friend is absolutely right, and in terms of private investment from the United Kingdom to developing countries our record is second to none.

Rwanda

31. Mr. Ainger: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on aid given to Rwanda. [20711]

Mr. Hanley: Since April 1994, Britain has committed nearly £100 million to the Rwandan crisis, including our contribution to European Union assistance which is worth some £41.5 million. I am pleased to announce that my right hon. and noble Friend the Minister for Overseas Development has added to that a further £4 million as Rwanda's share of an £8.5 million British contribution to the 1996 great lakes appeal.

Mr. Ainger: If Rwanda and Burundi are to return to some form of normality, does the Minister agree that there must be a working judicial system? He will be aware from my previous questions on this issue that there is a huge problem in relation to the large number of people in detention. Tens of thousands of individuals charged with possible genocide are not being processed through the judicial system. What assurance can the Minister give the House that this prime problem is being addressed with physical resources--personnel resources--rather than just financial resources?

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Mr. Hanley: I agree with the hon. Gentleman that justice is an important prerequisite for rehabilitation in Rwanda. We remain concerned at the number of Rwandans being held in disturbing conditions in prison. The Rwandan Government have made some progress in recent weeks with the rehabilitation of the domestic justice system, and indictments have been issued by the international tribunal against 10 individuals for genocide and crimes against humanity. I agree with the hon. Gentleman that it is essential that justice should return, not just through money but through those who are committed to help the Rwandans to return to justice, and also to improve the ghastly human rights situation which has persisted for too long.

Mr. Llwyd: Has the Minister read the recently published multi-donor evaluation of the situation in Rwanda, which makes it clear that although humanitarian aid is very important the real answer for Rwanda lies in political moves and political changes? What steps is the Minister likely to suggest?

Mr. Hanley: I have indeed read the multi-donor evaluation of emergency assistance to Rwanda. We supported the study, because it is always necessary to assess the impact of international emergency assistance, and it makes a useful contribution to the international debate. We expect to discuss its recommendations with other donors, United Nations agencies and non-governmental organisations in the reasonably near future.

The United Kingdom's input in the Rwandan crisis was well regarded in the report. United Kingdom NGOs were at the forefront of the emergency response and are now contributing to Rwanda's recovery. It is an important study, and I agree with the hon. Gentleman that it would be worth the while of other hon. Members who are interested in the subject to read the report. It is in the Library.


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