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Food Initiatives

Mr. Edwards: To ask the Secretary of State for International Development what recent assessment he has made of the impact that humanitarian aid in the form of food initiatives can have on local markets in developing countries. [135065]

Hilary Benn: Food aid can be vital for saving lives during humanitarian crisis but inappropriately used it also has the potential to disrupt local markets, investment and food production. We have not undertaken a general assessment of the impact of humanitarian food aid initiatives on local markets in developing countries recently. However this is one of a number of issues considered by DFID when planning humanitarian aid interventions and when monitoring and reviewing individual programmes.

Generic Drugs

Mr. Caton: To ask the Secretary of State for International Development what action his Department is taking to make generic drugs available for treatment in developing countries. [135186]

Hilary Benn: The UK Government are committed to increasing access to medicines in the developing world. The factors recognised by the World Health Organization (WHO) that can improve poor peoples' access are; affordable pricing, sustainable financing, reliable health and supply systems and the rational selection and use of existing drugs.

Clare Short chaired a UK high level working group on Increasing Access to Essential Medicines in the Developing World, which examined the factors above in detail. The working group made a series of recommendations for action, which are being taken forward by a number of major stakeholders.

The UK has played a leading role in setting up initiatives such as the Global Fund to fight AIDS, TB and malaria (GFATM), which supply both generic and patented drugs. We want to play our part in making the Global Fund an effective instrument in the fight against AIDS, TB and malaria and recognise that to do this, it needs predictable and sustainable financing. With this in mind, the UK pledged an additional US$80 million to the GFATM (US$40 million per annum over two further years). This will extend our current commitment to 2008 and bring our total contribution to the GFATM to US$280 million. Our funding will be subject to the GFATM achieving a better financing system, agreed benchmarks to monitor effectiveness, and to improve integration of the fund's activities with national programmes. This is one of a range of mechanisms for tackling HIV/AIDS; the UK also works with other partnerships, such as the Global TB drug Facility, that procure both generic and patented drugs.

In addition an agreement was reached at the recent World Trade Organization (WTO) ministerial conference in Cancun in September that will enable poor countries with no, or insufficient, manufacturing

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capacity in the pharmaceutical sector to import generic versions of patented medicines. The UK Government worked to secure this agreement and believe it to be a very significant step. The option to use compulsory licensing provides a useful bargaining tool for governments negotiating prices with suppliers of patented medicines and should encourage the latter to reduce prices. We will monitor its impact and work with developing countries to ensure that its implementation helps promote access to essential medicines.

Global Fund

Mr. Caton: To ask the Secretary of State for International Development what assessment he has made of the Global Fund's public-private partnership structure. [135182]

Hilary Benn: We support the Global Fund's partnership with not only government and the private sector but also civil society and affected communities. We have not carried out any assessment of this aspect of the Global Fund. However, we are now starting a programme of work to look at different aspects of the operation of global health partnerships and the working of public-private partnership structures may form part of that.

Mr. Caton: To ask the Secretary of State for International Development what the target level set by the UN is for UK input into the Global Fund. [135184]

Hilary Benn: The UN has not set a target level for UK contributions to the Global Fund to Fight HIV/AIDS, TB and Malaria. The UN did set a target of $10 billion a year to be spent in on HIV/AIDS in low income, high HIV impact countries in the UNGASS Declaration of Commitment on HIV/AIDS, signed in 2001.

Recently, UNAIDS (the Joint United Nations Programme on HIV/AIDS) have produced a report on "The state of HIV/AIDS financing", which estimates that total resources required to combat AIDS will amount to approx US$ 10.7 billion in 2005 and US$14.9 billion by 2007, rising as implementation capacity (physical and human) improves.

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The UK is making a significant contribution to the fight against AIDS. Our total contribution to the Global Fund to Fight HIV/AIDS, TB and Malaria will be US$280 million by 2008. Most of DFID's HIV/AIDS spending goes direct to developing countries, through Government, NGOs or the private sector. Last year we invested over £270 million on HIV/AIDS related bilateral work. We are committed to increasing our activities and spending over the next five years. We also provide significant contributions to support the HIV/AIDS programmes of multilateral agencies, including the United Nations.

Mr. Caton: To ask the Secretary of State for International Development what the estimated donation in 2004 to the Global Fund from the UK Government is; and what plans the Government has to increase its funding in future years. [135185]

Hilary Benn: The UK has a long-term commitment to the Global Fund to Fight HIV/AIDS, TB and Malaria and recognises that in order to be effective it needs predictable and sustainable financing. The UK recently extended its pledge by a further 2 years to 2008 bringing our total contribution to US$280million.

The pattern of our disbursements has been agreed with the Global Fund Secretariat—for the financial year 2003–04 the UK has provided £25 million, and for the financial year 2004–05 we will provide £30 million.

UK funding will be subject to the GFATM reflecting a clear poverty focus, achieving a better financing system, integrating the Fund's activities more effectively with national programmes and meeting agreed benchmarks to monitor its effectiveness. I am pleased to report that good progress was made at the recent 6th Board meeting in Thailand on many of these issues.

HIV (Sub-Saharan Africa)

Diana Organ: To ask the Secretary of State for International Development what the UK's contribution to HIV programmes in Sub-Saharan Africa was (a) as a percentage of GDP and (b) in real terms in each of the last five years; and if he will make a statement on EU aid for HIV programmes in Sub-Saharan Africa. [134961]

Hilary Benn: The UK's contributions to HIV programme were as follows:

Sub-Saharan Africa expenditure on HIV

	1998–99	1999–2000	2000–01	2001–02	2002–03
Total contribution (£ million)	32	42	149	149	184
UK GNI (£ million)	849,900	896,734	936,586	993,770	1,063,090
Percentage total contribution of GNI	0.004	0.005	0.016	0.015	0.017
Total contribution (£ million) in real terms using GDP deflators at market prices 2002–03 = 100	36	45	158	153	184

DFID welcomes the fourfold increase of programmed European Community financial support to fighting HIV/AIDS and other major communicable disease to 1.117 billion Euro for the period 2003–06. This is equivalent to 280 million Euro per year.

The UK Government have full confidence in the EC's HIV/AIDS programmes, and in particular recognises the value of and supports the Community's "Programme for Action: Accelerated action on HIV/AIDS, malaria and tuberculosis in the context of poverty reduction".

International Debt

Mr. Edwards: To ask the Secretary of State for International Development what assessment he has made of the proposals for the establishment of an international body to supervise the investment of cancelled debts. [135063]

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Hilary Benn: The Government believe that all proceeds from debt relief should be channelled through nationally-owned poverty reduction strategies. These plans, drawn up by the countries themselves, set out how all aid flows—not only debt relief but also grants and loans—will be spent in order to maximise poverty reduction. So far, 46 countries have developed full poverty reduction strategies, and a further nine are in the pipeline. The Government believe that this form of national ownership is important, and that it would be inappropriate to pass this responsibility on to an international body.

Mr. Edwards: To ask the Secretary of State for International Development what conditions his Department places on aid to developing countries to ensure responsible and sustainable expenditure in future when debt has been cancelled. [135067]

Hilary Benn: Debt relief must be linked to poverty reduction. Each country that has qualified for debt relief under the Heavily Indebted Poor Countries' (HIPC) Initiative must develop and implement a nationally-owned and led poverty reduction strategy. This strategy forms the framework for spending all donor resources, not only debt relief. This improves aid effectiveness and ensures the maximum possible impact on poverty reduction.

Governments in HIPC countries lead national processes to develop Poverty Reduction Strategy Papers (PRSPs), in participation with civil society. These strategies set out the policy actions Governments propose for reducing poverty.

Together with the World Bank and the IMF, we have been ensuring that PRSPs are costed and priorities are reflected in medium term expenditure frameworks and the annual budget. Annual progress reports and regular budget reviews provide the principal mechanisms for assuring ourselves that all aid, and savings from debt relief, are channelled in ways that have the greatest impact on poverty reduction.

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