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INTERNATIONAL DEVELOPMENT
Iraq (Reconstruction)
The Secretary of State for International Development (Hilary Benn): I visited Iraq from 22–23 March. In Baghdad I met the Iraqi Governing Council, Ministers and representatives of non-Government organisations, as well as Ambassador Bremer and other staff from the Coalition Provisional Authority. In Basra I visited two development projects, met leaders of women's groups and held discussions with CPA South staff.
Significant progress is being made. Iraq's economy is recovering with oil output now over 2.5 million barrels per day, and reconstruction projects are bringing results. I visited Al Faw, to see the installation of 5 x 2MW diesel generators, funded by DFID, which should provide the 45,000 citizens of Al Faw with 24 hours of electricity every day.
In Basra I visited the Rzero Water Treatment Plant. This is part of a major programme to renew the Basra water supply. The USA is providing most of the capital investment, alongside some money provided by the Development Fund for Iraq, to extend new water mains to the poorest areas of Basra, and in doing so create up to 2,000 jobs. The DFID-financed team in CPA South helps to coordinate the whole programme. It should provide a good model for future collaboration.
Successful reconstruction is bringing new challenges. Sustaining the improvements in infrastructure will require difficult political decisions by the new Iraqi Government about charging customers realistic rates for services such as electricity and water, and strengthening the Iraqi institutions that run these utilities. the public distribution system for food and Iraq's state owned enterprises will also need reform. The IMF and World Bank will have a significant role to play in this.
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Security remains a major concern for the Iraqis and those who are helping them. But encouraging progress is being made in recruiting for the new Iraqi security forces, and training programmes are underway.
The transitional administrative law is a significant development in the political process. At the Governing Council's invitation the UN has agreed to play a major role in facilitating the formation of the interim Government and the preparation for elections. The handover on 30 June will be a big step. From 1 July Iraqis will have to address their concerns to their own Government. However, donors will still have a significant role, and we are working to make the transition as smooth as possible and to ensure that donors coordinate their programmes effectively.
The Minister for Municipalities and Public Works, Mrs Nasreen Berwari, joined me in Baghdad to launch DFID's interim Country Assistance Plan for Iraq, which I announced to the House in a written statement on 23 February (Col: 7WS), Copies of the plan are in the Libraries of both Houses. At the same time I was able to confirm that DFID is making an initial contribution of £70 million to the International Reconstruction Fund Facility for Iraq: £40 million of this will be spent through the World Bank's Trust Fund and £30 million through the UN's, We are also providing £8.5 million to the International Finance Corporation for its programme for small and medium enterprises in Iraq, which will enable it to start promoting much needed business activity and employment.
Recent events remind us to take nothing for granted in Iraq, but overall reconstruction is going better than many predicted. However, it will require a sustained effort from the Iraqis, with support from the international community, to ensure that it succeeds.
FOREIGN AND COMMONWEALTH AFFAIRS
Liberia
The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Bill Rammell): With the support of Her Majesty's Government, the United Nations Security Council on 12 March unanimously adopted UN Security Council Resolution 1532(2004). The resolution imposes an asset freeze against Charles Taylor, former President of Liberia, his wife Jewell Howard Taylor and his son Charles Taylor Jr. The asset freeze will also target senior officials of the former Taylor regime, and other close allies and associates of Taylor, as designated by the Committee established by UN Security Council Resolution 1521 (2004). The legal basis for the asset freeze is that Charles Taylor and others continue to use misappropriated funds to undermine peace and stability in Liberia and the region. The resolution includes humanitarian and other exemptions to the freeze, and states the intention to consider whether and how to make frozen assets available to the Government of Liberia.
Zimbabwe
The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Bill Rammell): With the support of Her Majesty's Government, Common Position 2002/145/CFSP and EC Regulation
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310/2002 imposing EU sanctions against Zimbabwe were renewed and replaced by Common Position 2004/161/CFSP and EC Regulation 314/2004 on 19 February 2004. The measures include an arms embargo and ban on related technical assistance, with specific exemptions; an embargo on equipment that might be used for internal repression; a travel ban on listed Zimbabwean officials, who are undermining democracy, human rights and the rule of law, preventing them from entering the EU, with standard criteria for exemptions; and an assets freeze against the listed officials, with certain specific exemptions. The list of officials (in the Annex to the Common Position) has been increased from 79 to 95. The measures in the new Common Position and Regulation follow the EU Guidelines on Implementation and Evaluation of Restrictive Measures (Sanctions) in the Framework of the EU Common Foreign and Security Policy, which were adopted on 8 December 2003. The measures apply for 12 months from 21 February 2004. Amendments or renewal of the measures will be made if their stated objective has not been met.
TRANSPORT
Central Railway
The Minister of State, Department for Transport (Dr. Kim Howells): I have today written to the Chairman of Central Railway declining the company's request for the Government to promote a Hybrid Bill to seek powers
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for Central Railway's proposal to build a wholly privately financed dedicated rail freight line from North-West England to the Channel Tunnel.
The Government have carefully considered Central's proposals and has held extensive and constructive discussions with the company. While such a scheme could make a contribution to increasing the carriage of freight by rail, Central Railway has not substantiated the likely financeability of the proposals. The Government also have concerns about the operational effects on the existing rail network and on the capacity of the construction and financial markets, and the mitigation of the adverse environmental impacts.
The promoters have received expressions of interest from a number of possible debt providers but these are generally substantially caveated. Neither have they demonstrated that the significant amount of equity finance would be forthcoming.
Central Railway has claimed that no call would be made on the public purse. However, once the Government have agreed to promote a Bill, inescapably they would be taken to be backing the project. Should initial finance not be raised, or the project run into financial difficulty once work was under way, the Government of the day could not escape intense pressure to intervene. The Government have therefore concluded that it cannot promote a Bill against such risks.
The Government are supporting investment in enhancing the rail network, including capacity for rail freight, through other projects. In particular, the west coast main line upgrade and the channel tunnel rail link, together costing over £12 billion, will provide substantial extra capacity, including for freight.