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16 Sept 2004 : Column 1703W—continued
Iraq
Norman Lamb: To ask the Secretary of State for Foreign and Commonwealth Affairs pursuant to the answer of 10 March 2004, Official Report, column 1528W, on Iraq, whether the Government have received further clarification on the investigations by the Pentagon Inspector General into the awarding of contracts for the provision of mobile telecommunications in Iraq; and if he will make a statement. [188338]
Mr. Rammell [pursuant to my replies, 15 December 2003, Official Report, c. 734W and 10 March 2004, Official Report, c. 1528W]: Following inquiries by the British embassy in Washington to the United States Department of Defense, the British ambassador has received notification that the two British citizens originally named in my reply of 15 December 2003 are not under investigation by the US Defense Criminal Investigations Service (DCIS) in this regard. We are not aware of investigations into any other British Citizens. The DCIS had previously been looking into allegations concerning the handling by staff of the Coalition Provisional Authority of the award of licences for the provision of mobile telecommunications services in Iraq.
Our position remains that we are aware of no formal or credible allegations against any British citizens in this connection and, specifically, that we have no reason to doubt the integrity of the British citizens involved in the award of these licences.
Joan Ruddock: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the process by which voters will be registered for the parliamentary elections in Iraq. [189075]
Mr. Rammell: The Independent Electoral Commission for Iraq is responsible for producing the electoral role through voter registration. Voter registration forms will be distributed to Iraqis around the country on 1 November enabling voters to register for elections in January 2005.
Joan Ruddock: To ask the Secretary of State for Foreign and Commonwealth Affairs how many voters are registered in Iraq. [189076]
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Mr. Rammell: The Independent Electoral Commission of Iraq is in the process of taking forward voter registration and the final figure will not be known until shortly before the end of January 2005 when the elections are due.
Joan Ruddock: To ask the Secretary of State for Foreign and Commonwealth Affairs which body will be in charge of the voter registration process in Iraq. [189077]
Mr. Rammell: The Independent Electoral Commission of Iraq is responsible for the organisation, oversight and implementation of the elections including the registration of voters.
Kirsty MacColl
Harry Cohen: To ask the Secretary of State for Foreign and Commonwealth Affairs what representations he has made to the Mexican authorities in relation to legal proceedings following the death of Kirsty MacColl in a speedboat incident; what discussions he has had with Ms MacColl's family on the outcome of the case; what assistance the Foreign Office provided to the family during the legal process; and if he will make a statement. [188930]
Mr. Mullin: Under international law, the British Government cannot interfere in the legal proceedings of another country. Nevertheless, we have frequently raised our interest in this case with the Mexican authorities, including through ambassador and counsellor meetings with the Minister for Europe in July 2003; the Director General of Consular Protection and the Tourism Minister in November 2003; and the Director General for Europe and the Chief Adviser to the Tourism Minister in August 2004. In addition, the case was also raised during High Level Talks when my hon. Friend the Parliamentary Under-Secretary of State at the Foreign and Commonwealth Office (FCO) (Bill Rammell) visited Mexico in October 2003. Consular Directorate also briefed the new Mexican Consul in London last week.
We continue to provide all the consular assistance we properly can. Staff in our Consular Directorate are in regular contact with the 'Justice for Kirsty Campaign'. We have met them twice in London. Embassy staff met the Campaign team and facilitated meetings with local and Government authorities on their trip to Mexico in March 2004.
We hope to raise the case again during Sir Michael Jay's, the Permanent Under Secretary at the FCO, visit to Mexico for High Level Talks later this year.
Poppy Cultivation
Mr. Bercow: To ask the Secretary of State for Foreign and Commonwealth Affairs what progress his Department is making in seeking to meet the targets of reducing poppy cultivation by 75 per cent. by 2003 and eradicating it completely by 2013. [188361]
Mr. Rammell:
The UK remains committed to supporting the Afghan government in implementing its
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National Drug Control Strategy, which aims for a 70 per cent. reduction in opium poppy cultivation by 2008, and elimination by 2013.
The United Nations Office on Drugs and Crime (UNODC) will publish its annual report on the level of poppy cultivation in the autumn. We anticipate an increase in cultivation levels. Although unwelcome, experience of counter narcotic policies in Pakistan and Thailand, which both had much lower initial levels of production and were more stable countries, shows that cultivation tends to increase before declining.
In the first year of implementation of the strategy, the basic counter narcotics structures have been put in place: drug control legislation, a Counter Narcotics Directorate, the Ministry of Interior's Afghan Special Narcotics Force, the Counter Narcotics Police and a central eradication capability. Work is also in hand to develop alternative livelihoods for farmers dependent on opium poppy cultivation. These measures provide a sound basis for the future development of robust institutions and programmes to combat opium production and trafficking. Progress remains linked to the wider security situation in Afghanistan and to the implementation of other areas of institution building such as policing and judicial systems.
CONSTITUTIONAL AFFAIRS
No Win, No Fee Cases
Sir Michael Spicer: To ask the Parliamentary Secretary, Department for Constitutional Affairs whether he plans to publish information as to the number of solicitors willing to take on no win, no fee cases. [189155]
Mr. Lammy: The information requested is not collected centrally. But the Law Society in its Solicitors' Firms Business survey 2003 found that, of those solicitors firms that use CFAs, 92 per cent. used them in personal injury cases, 24 per cent. in employment and pension cases, 17 per cent. in clinical negligence and 18 per cent. in professional negligence.
INTERNATIONAL DEVELOPMENT
CDC/Actis Capital
Gregory Barker: To ask the Secretary of State for International Development (1) whether his responsibilities in relation to CDC/Actis Capital have changed with regard to the reorganisation of public shareholder interests under the Shareholder Executive; [188850]
(2) what reserved rights he retains in CDC/Actis Capital with regard to the reorganisation of public shareholder interests under the Shareholder Executive. [188851]
Hilary Benn:
My responsibilities for CDC Group plc and Actis Capital LLP have not changed as a result of the involvement of the Shareholder Executive in DFID's shareholder responsibilities. I maintain responsibility for HMG's interests in both CDC and Actis.
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The Shareholder Executive now has delegated responsibility for advising me on HMG's interest in Actis. DFID officials retain direct responsibility for advising me on CDC. The Shareholder Executive provides advice to my officials in relation to the discharge of my shareholder responsibilities for CDC.
The reserved rights I retain in CDC Group plc and Actis Capital LLP have not changed as a result of the involvement of the Shareholder Executive in DFID's shareholder responsibilities.
For CDC, the reserved rights that I retain as the owner of 765,036,042 ordinary shares (the remaining one is held by HM Treasury Solicitors) and one special rights preference share are set out in detail in the Commonwealth Development Corporation Act 1999 and the Memorandum and Articles of Association of CDC.
As for Actis, the Members Agreement which I placed in the library of the House on July 14 this year sets out the rights I retain over Actis.
Gregory Barker: To ask the Secretary of State for International Development what plans he has made to review CDC/Actis Capital investee (a) accountability standards and (b) compliance procedures. [188966]
Hilary Benn: Since 1999, the conduct of CDC's business has been governed by a set of responsible business principles which set out standards for corporate ethics, accountability, environmental and labour practices etc. Equivalent standards are required from CDC's investee companies. These were monitored by the Business Principles Committee of the CDC board.
As part of the reorganisation of CDC, these principles and requirements were reviewed and it was agreed that they should in future also apply to Actis. They have accordingly been written into the Members' Agreement establishing Actis, a copy of which has been placed in the Library. The Business Principles Committee of the Actis Supervisory Board will now oversee their application.
The business principles are also mandated in CDC's management contract with Actis and CDC will continue to monitor compliance through the CDC board Business Principles Committee.
Gregory Barker: To ask the Secretary of State for International Development whether a formal environmental impact assessment was carried out regarding CDC's Higaturu Oil Palms investment. [188967]
Hilary Benn: Environmental impact assessments were not the norm when Higaturu was first established in the 1970s. Since then Higaturu has commissioned several environmental studies.
Most recently, in late 2002/early 2003, Higaturu achieved certification to ISO14001 for environmental management: this requires that companies have mechanisms in place for identifying potential environmental impacts and their amelioration or avoidance. Such plans are updated twice a year, and include provisions for incorporating stakeholder feedback. The environmental management system is externally audited at least annually.
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Gregory Barker: To ask the Secretary of State for International Development if he will list the environmental concerns relating to CDC/Actis Capital's Higaturu Oil Palms investment that arose (a) in the biannual Investment Valuation Review and (b) via the Business Principles Unit; and if he will list the action plans developed in response. [188969]
Hilary Benn: CDC's and Actis' investment reviews are confidential and commercially sensitive. CDC has in place appropriate procedures for monitoring that Actis complies with its Business Principles, including monitoring of the management of the environment by investee companies.
Gregory Barker: To ask the Secretary of State for International Development what representations he has received regarding investee environmental regulation exemption requests in Papua New Guinea. [188970]
Hilary Benn: I have received no representations regarding investee environmental regulation exemption requests in Papua New Guinea.
For the record, CDC does not ask for or receive exemptions on environmental regulations on investments made on its behalf by any of its managers.
Gregory Barker: To ask the Secretary of State for International Development if he will list the monitoring visits at Higaturu Oil Palms since 1999 that CDC/Actis Capital has (a) directly performed and (b) independently contracted. [188971]
Hilary Benn: Monitoring visits commissioned by the Pacific Rim Palm Oil Ltd. (PRPOL) Board have been effectively contracted by CDC as its owner. Since 1999, independent environmental studies have been contracted from at least four expert consultancy firms. There have been two CDC visits focused on environmental issues in 1999 and 2002 as well as a number of general monitoring visits by other CDC staff. There have been two visits by the PRPOL Board including its non-executive directors and by PRPOL's environmental manager.
Gregory Barker: To ask the Secretary of State for International Development if he will list the criteria for deciding whether CDC/Actis Capital investments are considered of (a) high, (b) medium and (c) low environmental risk; and who performs environmental studies of (i) high, (ii) medium and (iii) low risks. [188972]
Hilary Benn: CDC's practice has been to rate investments as high, medium or low environmental risk in accordance with a matrix similar to that used by the International Finance Corporation.
High risk activities are those which, due to their type, scale or location have the potential for substantial adverse impact on the environment surrounding the facility and/or globally.
Medium risk activities are those which could cause adverse impacts but these are unlikely to be irreversible or persistent. Remedial measures can more easily be implemented, and the impacts are not as diverse or sensitive as in the high risk category.
Low risk activities are those which typically have minimal impact.
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For investments involving high risk to the environment, a formal environmental assessment by an external consultant is required. Where the environmental risk is rated medium, an environmental appraisal by an in-house specialist is required. In investments where the environmental risk is low, a routine environmental appraisal is carried out. Going forward, CDC will require Actis and other fund managers it uses to apply similar procedures and maintain similar standards.
Gregory Barker: To ask the Secretary of State for International Development how many CDC/Actis Capital investment projects have been terminated on grounds of (a) environmental risk and (b) labour conditions. [188973]
Hilary Benn: Since 1999, there have been no occasions when environmental risks and/or labour conditions have forced an early exit from an investment.
Gregory Barker: To ask the Secretary of State for International Development if he will list the institutional investors in CDC/Actis Capital by contribution (a) amount and (b) proportion. [189053]
Hilary Benn: There are no institutional investors in either CDC or Actis.
Gregory Barker: To ask the Secretary of State for International Development what CDC/Actis Capital's policy is towards initial public offerings as a method of attracting private capital, broken down by sector. [189054]
Hilary Benn: Initial public offerings (IPOs) are a well-established method of attracting private capital. CDC does not seek to influence Actis or other fund managers it may employ in determining the suitability of an IPO in particular cases, whether by sector or any other criterion.
Gregory Barker: To ask the Secretary of State for International Development if he will list CDC investment programmes aside from Actis Capital. [189055]
Hilary Benn: In addition to funds managed by Actis, CDC has funds under management with Aureos Capital, a fund specialising in small and medium-sized enterprises (SMEs) in developing countries. Aureos is owned 50:50 by Actis and NorFund.
Gregory Barker: To ask the Secretary of State for International Development if he will list by (a) country, (b) sector, (c) amount and (d) proportion CDC/Actis Capital investments in (i) SME firms and (ii) funds that invest in SME firms. [189056]
Hilary Benn:
CDC does not invest directly in Small and Medium sized Enterprises (SMEs) but invests in them through Aureos Capital. Data on these investments are not classified by sector. Data on amount, country and the proportion of CDC's investment devoted to SMEs in the relevant country are as follows:
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| Country | Amount (£000) | Proportion (Percentage) | |
|---|---|---|---|
| Acacia fund | Kenya | 1,533 | 25 |
| Aureos Capital fund | n/a | 1,368 | 50 |
| Aureos Central America fund | Costa Rica | 2,187 | 28 |
| Aureos East Africa fund | East Africa | 1,099 | 20 |
| Aureos South Africa fund | South Africa | 307 | 28 |
| Aureos West Africa fund | West Africa | 857 | 36 |
| Ayojana fund | Sri Lanka | 902 | 50 |
| Central America Venture fund | Costa Rica | 6,154 | 38 |
| Fedha fund | Tanzania | 1,019 | 31 |
| Ghana Venture Capital fund | Ghana | 839 | 34 |
| Indian Ocean Regional fund | Mauritius | 2,802 | 39 |
| Kula fund | Papua New Guinea | 1,707 | 32 |
| Mauritius Venture Capital fund | Mauritius | 307 | 20 |
| Mozambique Investment Company | Mozambique | 894 | 26 |
| NDBVI fund | Sri Lanka | 925 | 50 |
| Takura Investment fund | Zimbabwe | 11 | 31 |
| Tanzania Venture Capital fund | Tanzania | 896 | 33 |
| Zambia Venture Capital fund | Zambia | 1,592 | 20 |
Gregory Barker: To ask the Secretary of State for International Development what representations he has received regarding CDC/Actis Capital investment in Iraq. [189057]
Hilary Benn: I have received no representations about either CDC or Actis in respect of Iraq. There are currently no CDC investments in that country.
Gregory Barker: To ask the Secretary of State for International Development what resources CDC/Actis Capital (a) has directed and (b) will direct to small and medium enterprises in (i) Iraq and (ii) Afghanistan; and if he will make a statement. [189058]
Hilary Benn: CDC has directed no resources towards Small and Medium-sized Enterprises (SMEs) in either Iraq or Afghanistan. It will consider propositions to do so in future on their merits.
Gregory Barker: To ask the Secretary of State for International Development what representations he has received from Rwandan officials regarding the transfer of its equity interest in the Commercial Bank of Rwanda to CDC/Actis Capital. [189060]
Hilary Benn:
The Rwandan Minister of Finance, Dr. Donald Kaberuka, made an oral request at the UK—Government of Rwanda Partnership Talks, 1–2 May 2003, that DFID finance a forensic audit of the
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sale of Banque Commerciale du Rwanda (BCR). The sale had not been advertised at that time and CDC was not mentioned as a potential bidder.
Minister Kaberuka wrote to DFID in July 2004 after CDC were selected as the preferred bidder and requested that the forensic audit be carried out. DFID is currently carrying out a limited tender for the work and exploring options to ensure that the audit will be seen as properly independent.
The successful bid for an equity interest in BCR by Actis (having now taken over this function from CDC) was entirely independent of any contacts between DFID and Rwanda officials. It is not our policy to intervene or interfere in any way with the commercial judgment of Actis.
Gregory Barker: To ask the Secretary of State for International Development if he will list CDC/Actis Capital holdings in funds (a) solely managed, (b) joint managed and (c) not managed by CDC/Actis Capital; and how much capital has been in each fund since 2002. [189062]
Hilary Benn: CDC invests all its funds through fund managers, whose performance it directs and monitors; to that extent, all CDC's investments are solely managed. The following data, which are at cost, relate exclusively to Actis:
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Gregory Barker: To ask the Secretary of State for International Development what the status is of CDC/Actis Capital's Aureos investment; and what its returns have been since 2001. [189063]
Hilary Benn: Aureos is a fund jointly established by CDC and Norfund (the Norwegian Government's investment fund). CDC's investments under management with Aureos Capital amount to £25 million. As Aureos has attracted some 50 other investors into its funds, it would be a breach of their commercial confidentiality to disclose return rates on these investments.
Gregory Barker: To ask the Secretary of State for International Development what the status of CDC/Actis Capital's partnership with CGU in China is; and if he will list its (a) holdings, (b) projects and (c) quarterly returns since 1997. [189064]
Hilary Benn: CDC operates an investment partnership in China with Aviva, as CGU is now known. The holdings, projects and returns of that partnership are a matter of commercial confidentiality.
Gregory Barker: To ask the Secretary of State for International Development what debt is owed to CDC/Actis Capital. [189065]
Hilary Benn: Total debt owed to CDC at cost as at 30 June 2004 was £411 million. The breakdown by borrower and amount of this debt is commercially sensitive information.
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