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Iraq (Reconstruction)

The Secretary of State for International Development (Hilary Benn): I visited Baghdad and Basra from 31 August to 1 September to learn for myself about progress with reconstruction on the ground. I met Prime Minister Allawi, development Ministers, representatives from the United Nations, civil society and the Independent Electoral Commission of Iraq, and representatives from local government.
 
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The interim Iraqi Government is now clearly in charge, although recent events in Najaf have dominated its first months in power. The difficult security situation has inevitably slowed down the reconstruction effort of not just the UK, but also of other donors and the multilateral agencies. However, it was clear that progress is still being made. Some 45 km of water pipes have been laid in Basra since my last visit in February and electricity distribution is now more equitable across the national grid. Partially due to these efforts, the riots that happened in Basra last summer because of the lack of basic services have not reoccurred this year.

While in Iraq I announced a number of new UK bilateral projects, focusing on building the capacity of the Iraqi Administration, and promoting employment creation, in southern Iraq. These projects mark an important step forward in our reconstruction efforts in southern Iraq as we move from meeting short-term humanitarian and immediate infrastructure rehabilitation needs towards addressing longer-term development challenges. Southern Iraq should receive massive reconstruction funds over next two to three years from a range of sources, including the USA, Japan and the World Bank and UN trust funds. One of DFID's aims is to help the Iraqi administration to ensure that this money is spent quickly and well, and that the benefits of reconstruction are widely shared across the population. We are investing £20.5 million in strengthening local management, planning and financial capacity in the four southern governorates of Basra, Muthanna, Dhi Qar and Maysan, including £15 million for projects developed by the Governorates. We have also started a new £16.5 million programme to finance employment programmes and further emergency infrastructure repairs.

DFID has committed £331 million to humanitarian and reconstruction assistance in Iraq since March 2003. Of this total £78 million has been allocated to bilateral reconstruction projects in southern Iraq; £19 million to support for the new interim Iraqi Government, the justice sector, independent media, civil society and political participation; and £28 million for consultants and secondments to the Coalition Provisional Authority while it was in office up to 28 June. £70 million has been paid into the trust funds managed by the United Nations and the World Bank, to be spent primarily on health, education, water and sanitation projects, assistance for refugees and strengthening governance; and nearly £12 million has been committed to IMF and international finance corporation programmes for economic governance support and small business development. Updates on DFID's programmes can be found on the internet at www.dfid.gov.uk, as well as in the House Library.

As on my previous two visits to Iraq, I was impressed by the extraordinary courage and commitment of all the people, both international and Iraqi, who are working to help the new Iraqi Government and the people of Iraq to build the better future that they deserve.

Post Conflict Reconstruction Unit

The Secretary of State for International Development (Hilary Benn): Together with the Secretary of State for Foreign Affairs and the Secretary of State for Defence, I wish to inform Parliament of the Government's intention to improve the United Kingdom's capacity to
 
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deal with immediate post conflict stabilisation, including by integrating civilian and military policy, planning and operations. In recent years, the United Kingdom, with the international community, has been increasingly involved in helping countries to stabilise after conflict. We need to deal better with conflict and instability, learn lessons and improve our capability to respond. Within this broader context, there is particular scope to improve the way in which we deal with immediate post conflict situations, especially those which include military and civilian components. The Foreign and Commonwealth Office, Ministry of Defence and Department for International Development are working closely to develop the capabilities that are needed. The Foreign Secretary will chair a new Cabinet sub-committee on post conflict reconstruction. My right hon. Friends and I expect to be in a position formally to establish an inter-departmental post conflict reconstruction unit later this year to lead this work. It will have a policy and operational role. In spring 2005 we anticipate being able to inform Parliament about its initial capabilities. Meanwhile, my right hon. Friends and I have placed a note in the House of Commons library which provides more detail about the Government's aims and plans.

Pakistan

The Parliamentary Under-Secretary of State for International Development (Mr. Gareth Thomas): On 15 September 2004, the Secretary of State for International Development wrote to Shaukat Aziz, Pakistan Prime Minister and Minister of Finance, to notify him that DFID has now cancelled Pakistan's ex-CDC debt amounting to £19 million.

The outstanding loans made by the former Commonwealth Development Corporation to public sector bodies in developing countries were removed from the newly formed CDC Capital Partners balance sheet on 31 August 2000 and transferred to DFID. In the case of Pakistan, the loan concerned was to the Karachi Water and Sewerage Board.

The only other inter-governmental debt between the UK and Pakistan relates to export credit guarantees. Following the Paris Club Agreement, this debt was rescheduled and is now valued at only £9 million.

In 2001 DFID agreed to cancel the ex-CDC debt, subject to Pakistan completing the second review of the Poverty Reduction Growth Facility (PRGF) with the International Monetary Fund. In the interim, the debt was suspended with no interest payments required from Pakistan to DFID. On 23 June 2004 the IMF Executive Board successfully completed the second annual review of Pakistan's PRGF, implying the ex-CDC debt can now be cancelled.

The Pakistan programme continues to be a high priority for DFID. As announced to the House in March 2003, during 2003 DFID provided Pakistan with £55 million to cancel debt held with the Asian Development Bank, World Bank and International Monetary Fund. Over the next two years (2004–05 and 2005–06), DFID's assistance to Pakistan will be £70 and £74 million respectively. This will support the
 
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Government of Pakistan achieve the millennium development goals through the implementation of their poverty reduction strategy (published in December 2003), Priorities for DFD3 are increasing the incomes of poor people, improving service delivery to poor people and increasing accountability of the state to poor people.

HEALTH

Continuing Care

The Parliamentary Under-Secretary of State for Health (Dr. Stephen Ladyman): I am reporting on progress with investigations into cases where individuals may have been inappropriately denied fully funded National Health Service care since 1996. These cases relate only to matters of past financial injustice and all claimants had access to care services and NHS treatment.

The majority of strategic health authorities (SHAs) have made considerable progress since December in the process of remedying any consequent financial injustice to patients (or the estates of such patients) who had wrongly been made to pay for the cost of their continuing care. In December, just over 22 per cent. of cases received had been completed. Between December and March a substantial number of additional cases had been reported and by the end of March 57 per cent. of cases had been completed. A percentage completion rate of pre-March 31 cases of more than 85 per cent. in July reflects the amount of work undertaken by all NHS and local authority personnel involved.
 
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The NHS has stressed the importance of all cases being investigated thoroughly and accurately and as such is committed to reviewing each application on its own merits. The process involved in undertaking an in-depth review involves contact with many health and social care organisations and bodies, and as such there have been considerable delays in obtaining all the relevant records and patient data. In some cases data and information from aged cases has been lost and, wherever possible, it must be gathered from alternative sources.

Delays should not automatically be attributed to the SHAs involved in particular cases; occasionally it is the claimant themselves who are responsible for the delay. Many SHAs are now exceeding 95 per cent. completion. In some cases, however, progress has been unsatisfactory, and the Department will take up the matter directly with those SHAs.

In total, almost 20 per cent. of cases have been granted recompense. As stated previously, the NHS expects to pay a total of £180 million when all the cases received by the end of March 2004 have been completed.

Approximately 1,600 cases remain outstanding, which is unacceptable. However, I am assured that all cases relating to living people have been prioritised, and that new applications for NHS continuing care are being dealt with in a timely fashion. My Department will be liaising with all SHAs to ensure appropriate procedures are now in place and that outstanding cases are resolved as quickly as possible.

The proportion of completed cases by SHA is shown in the table.
Figures for progress with restitution cases in continuing care

	At Dec 03	At Dec 03	At March 04	At March 04	At July 04	At July 04
Strategic health authority (SHA) name	Number ofcases	Percentagecompleted	Number ofcases	Percentagecompleted	Percentagecompleted*	Caseseligible forpayment**
Norfolk, Suffolk and Cambridgeshire SHA	512	2.3	651	43.2	91.8	72
Bedfordshire and Hertfordshire SHA	216	13.0	212	48.1	59.5	38
Essex SHA	6	0.0	172	84.9	97.7	15
North West London SHA	146	28.8	372	48.7	98.0	108
North Central London SHA	121	5.0	125	51.2	74.8	14
North East London SHA	148	3.4	180	93.9	98.8	19
South East London SHA	30	0.0	273	67.0	91.4	165
South West London SHA	190	6.8	215	90.2	96.1	69
Northumberland, Tyne & Wear SHA	275	2.9	298	42.3	73.7	113
County Durham and Tees Valley SHA	226	7.5	226	21.3	96.0	79
North & East Yorkshire & North Lincs SHA	286	44.4	359	74.1	96.3	52
West Yorkshire SHA	156	28.9	349	37.3	79.7	59
Cumbria and Lancashire SHA	250	14.4	340	45.3	88.2	41
Greater Manchester SHA	292	22.3	342	29.8	74.1	63
Cheshire & Merseyside SHA	400	0.0	1,196	64.7	97.7	130
Thames Valley SHA	299	52.2	383	47.3	63.9	44
Hampshire and Isle of Wight SHA	387	59.2	507	76.1	97.7	40
Kent and Medway SHA	277	49.1	230	80.9	94.8	36
Surrey and Sussex SHA	964	13.7	875	1.7	37.7	69
Avon, Gloucestershire and Wiltshire SHA	698	45.4	961	63.7	100.0	131
South West Peninsula SHA	458	10.9	553	78.3	95.8	144
Dorset and Somerset SHA	425	27.8	915	49.0	95.4	49
South Yorkshire SHA	138	38.4	241	67.6	96.9	43
Trent SHA	400	0.0	315	74.9	86.2	23
Leics, Northants and Rutland SHA	38	21.1	224	90.2	89.6	30
Shropshire and Staffordshire SHA	406	39.7	431	95.6	99.1	40
Birmingham and the Black Country SHA	157	14.7	286	74.5	85.7	77
West Midlands South SHA	193	21.2	424	55.9	98.9	33
Total	8,094	22.6	11,655	57.0	86.1	1,796

Note:
* The percentage of cases completed at July refers only to cases received up to and including 31 March 2004.
** The cases eligible for payment at July refers to all cases investigated up to and including 31 July 2004.





 
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