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20 Oct 2003 : Column 360W—continued
INTERNATIONAL DEVELOPMENT
Baku-Tbilisi-Ceyhan Pipeline
Mr. Hancock: To ask the Secretary of State for International Development if he will make it his policy to ask the directors of the (a) European Bank for Reconstruction and Development and (b) International Finance Corporation to vote against providing support for the Baku-Tbilisi-Ceyhan pipeline; and if he will make a statement. [132460]
Hilary Benn: The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) of the World Bank Group are currently completing their normal thorough
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screening and safeguards procedures on the Baku-Tbilisi-Ceyhan (BTC) pipeline project. DFID will make its decision on how to vote on the project on the basis of formal project proposals brought to the Executive Boards of these institutions. As is standard procedure, the decision will be based on an assessment of the projects compliance with the Banks' mandates, policies and procedures.
Dr. Vis: To ask the Secretary of State for International Development if he will ask the directors of the (a) European Bank for Reconstruction and Development and (b) International Finance Corporation to vote against providing support for the Baku-Tbilisi-Ceyhan pipeline. [132505]
Hilary Benn: The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) of the World Bank Group are currently completing their normal thorough screening and safeguards procedures on the Baku-Tbilisi-Ceyhan (BTC) pipeline project. DFID will make its decision on how to vote on the project on the basis of formal project proposals brought to the Executive Boards of these institutions. As is standard procedure, the decision will be based on an assessment of the projects compliance with the Banks' mandates, policies and procedures.
Mr. Drew: To ask the Secretary of State for International Development if he will ask the Director of the European Bank for Reconstruction and Development to withhold support from the Baku-Tbilisi-Ceyhan pipeline. [133628]
Hilary Benn: The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) of the World Bank Group are currently completing their normal thorough screening and safeguards procedures on the Baku-Tbilisi-Ceyhan (BTC) pipeline project. DFID will make its decision on how to vote on the project on the basis of formal project proposals brought to the Executive Boards of these institutions. As is standard procedure, the decision will be based on an assessment of the projects compliance with the Banks' mandates, policies and procedures.
Call Centres
Mr. Connarty: To ask the Secretary of State for International Development whether his Department plans to outsource call centre work to premises outside the United Kingdom. [132102]
Hilary Benn: DFID do not have responsibility for any call centres in the UK.
Developing Countries
Mr. Lazarowicz: To ask the Secretary of State for International Development what assessment he has made of WTO procedures to meet the need for special and differential treatment for developing countries. [132429]
Hilary Benn: World Trade Organisation (WTO) agreements include a large number of special and differential treatment provisions (some 155 in all). However, there is dissatisfaction with the existing
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system of differential treatment by both developed and developing countries alike. A total of 88 proposals have been submitted to amend and modify the existing provisions and to provide for new concessions. The UK has worked hard with the European Commission, and others to assess and meet the concerns of developing countries. Accordingly the WTO membership has now agreed to 25 of these agreement-specific proposals. However, central to the issue concerning special and differential treatment is how to take account of country differences (e.g. Singapore to Ghana) within WTO agreements. Developing countries are reluctant to address the issue of country classification now and only within the wider context of future negotiations. DFID is working with others on possible options to provide an effective delivery mechanism for special and differential treatment.
Ethiopia
Mr. Laurence Robertson: To ask the Secretary of State, Department for International Development if he will make a statement on the drought situation in Ethiopia. [129529]
Hilary Benn: The indications are that in most parts of Ethiopia rainfall has been better this year in terms of both quantity and distribution than it was in 2002. Assessments are under way, but at present it looks likely that food production will be better this year. This will have implications for the likely size and scope of humanitarian interventions; in particular food aid interventions may be less extensive.
Risks to health remain a serious concern. At present there is a malaria epidemic in many parts of Ethiopia. We are planning to respond urgently.
We are continuing to closely monitor the situation in Ethiopia, and as always we remain committed to playing our part in the international response. Since the beginning of 2002 we have provided £49.1 million of food and non-food humanitarian assistance to Ethiopia.
Fossil Fuel Projects
Mr. Hancock: To ask the Secretary of State for International Development what his policy is on the provision of (a) loans and (b) loan guarantees by multilateral development banks to fossil fuel projects overseas; and if he will make a statement. [132494]
Hilary Benn: The UK is a shareholder in a number of multilateral development banks which provide loans and loan guarantees for fossil fuel projects. The Government's policy is to ensure that these institutions comply with their own policies and procedures in all projects for which they provide finance. In considering whether to provide loans or loan guarantees this should include an assessment of the possible social and environmental impacts. In addition, our policy is to fully understand the developmental implications of fossil fuel projects. We are particularly concerned that the management of revenues from such projects occurs transparently and with a positive developmental impact. We hope that initiatives such as the Extractive Industries Transparency Initiative will help to achieve this.
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Dr. Vis: To ask the Secretary of State for International Development what his policy is towards the provision of (a) loans and (b) loan guarantees by multilateral development banks to fossil fuel projects overseas; and what amendments he has made to it because of concerns about climate change. [132501]
Hilary Benn: The UK is a shareholder in a number of multilateral development banks which provide loans and loan guarantees for fossil fuel projects. The Government's policy is to ensure that these institutions comply with their own policies and procedures in all projects for which they provide finance. In considering whether to provide loans or loan guarantees this should include an assessment of the possible social and environmental impacts such as climate change. In addition, our policy is to fully understand the developmental implications of fossil fuel projects. We are particularly concerned that the management of revenues from such projects occurs transparently and with a positive developmental impact. We hope that initiatives such as the Extractive Industries Transparency Initiative will help to achieve this.
Mr. Drew: To ask the Secretary of State for International Development whether his Department has carried out an analysis of the extent to which his Department's support for fossil fuel investment is consistent with (a) the United Kingdom's obligations under the Kyoto Protocol and (b) the Government's environmental aims. [133630]
Hilary Benn: The UK government are committed to taking a lead in meeting obligations under the Kyoto Protocol, including reductions of carbon dioxide emissions. At the same time, we recognise the rights of other sovereign states to fulfil their own legitimate development needs. In considering support for fossil fuel based investments, it is standard procedure for DFID to liaise with other relevant Government Departments to ensure balance and consistency between these objectives. In addition, our policy is to ensure that lending institutions take account of possible social and environmental impacts such as climate change as part of their policies and procedures in assessing fossil fuel projects, before providing loans or loan guarantees.
Mr. Drew: To ask the Secretary of State for International Development what is the total value is of support given by his Department to overseas projects for (a) the extraction of fossil fuels and (b) the development of renewable energy in each of the last three years. [133631]
Hilary Benn: DFID has not been involved in the direct funding of fossil fuel extraction projects over the past three years, although we are occasionally asked to comment on the proposals of lending institutions. While recognising that countries are entitled to exploit their own natural resources, either for export purposes or to meet domestic energy requirements, full account should be taken of possible social and environmental impacts, including climate change. Our policy is to ensure that institutions providing loans or guarantees take such factors fully into account.
On the renewable energy issue, DFID has funded about £3.6 million of research projects over the past 10 years, about half of this over the past three years. We have about £500,000 of project work still in progress.
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Dr. Vis: To ask the Secretary of State for International Development what the total value of support is from his Department to overseas projects for (a) the extraction and transport of fossil fuels and (b) the development of renewable energy in 2003–04. [132502]
Hilary Benn: DFID has not been involved in the direct funding of fossil fuel extraction projects over the past three years, although we are occasionally asked to comment on the proposals of lending institutions. While recognising that countries are entitled to exploit their own natural resources, either for export purposes or to meet domestic energy requirements, full account should be taken of possible social and environmental impacts, including climate change. Our policy is to ensure that institutions providing loans or guarantees take such factors fully into account.
On the renewable energy issue, we have about £500,000 of research project work currently in progress, having funded about £3.6 million of such projects over the past 10 years.
Dr. Vis: To ask the Secretary of State, Department for International Development what assessment he has made of the extent to which his Department's support for fossil fuel investment is consistent with (a) the obligations under the Kyoto Protocol and (b) the goal of reducing UK carbon dioxide emissions by 2050. [132503]
Hilary Benn: The UK Government are committed to taking a lead in meeting obligations under the Kyoto Protocol, including reductions of carbon dioxide emissions. At the same time, we recognise the rights of other sovereign states to fulfil their own legitimate development needs. In considering support for fossil fuel based investments, it is standard procedure for DFID to liase with other relevant Government Departments to ensure balance and consistency between these objectives. In addition, our policy is to ensure that lending institutions take account of possible social and environmental impacts such as climate change as part of their policies and procedures in assessing fossil fuel projects, before providing loans or loan guarantees. I refer the hon. Member for Finchley and Golders Green to the reply to his question Hansard ref 132501 on this matter, at column 359W.
The UK Energy White Paper sets out four core objectives of UK Energy Policy: Tackling Climate Change, Energy Security, Cutting Fuel Poverty and Competitiveness. DFID is working closely with other Government Departments, notably FCO, DTI and DEFRA, to ensure a co-ordinated Whitehall approach to international energy issues.
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