Select Committee on International Development Minutes of Evidence


Examination of Witnesses (Questions 160-162)

18 NOVEMBER 2003

THE RT HON HILARY BENN MP AND MR ALISTAIR FERNIE

  Q160  Hugh Bayley: I leave just one final thought in your mind. We talked about this with the World Bank country representative, who I was very impressed with. Normally, of course, the World Bank would oppose a socialism of one country example, the idea that you buy not the cheapest product available but have a protected industry, a siege economy, because in the long-term it means that you will be producing cement works or oil pressing plants that are not competitive regionally or globally. Whereas I would normally accept that argument, you have in the Occupied Territories quite literally a siege economy, a siege imposed by another state that encircles the communities, and, therefore, it probably does make sense to have a World Bank supported and funded siege economy developed because it ought to be easier when the siege is lifted when you have a two state solution to convert a not very efficient cement works into a more efficient cement works when facing competition. We have restructured some of our old smokestack industries in this country rather than to try and create from scratch competitive industries. The World Bank said they could see some merit in that and they would think further on that. I would be very grateful when you look at these issues if you could perhaps involve the World Bank in this thought process too.

  Hilary Benn: I gladly undertake to do that, although I would just say if businesses are being established, whether it is a siege economy or not, certainly one should be looking to try and make those businesses as efficient as possible anyway regardless of what the political process may bring.

  Q161  Hugh Bayley: Of course.

  Hilary Benn: I will go away and look into that and come back to you, if that is okay.

  Q162  Mr Battle: Just before we close, Secretary of State, can I say on behalf of all the Members on the visit just a word of appreciation to DFID staff who were there. We were under the impression that they were doing an excellent piece of work under very difficult circumstances. Also, thank you for their help in organising the visit because it is a difficult place to visit and they did it very well with an openness that enabled us to hear a range of views, meet a range of people, which has been very helpful to our inquiry. If you could pass our thanks back, particularly to Jim Carpy and his team in Jerusalem, and to Charlotte Dunn who made the practical arrangements to make it easy to go through the mechanics of the visit but also to have a very fruitful one. If you could pass that on I would be grateful.

  Hilary Benn: That is very kind of you. I would be very glad to pass that on because can I say that we have an excellent team there. We also have an excellent team here in London who are working as  part of the Middle East and North Africa Department, working in difficult circumstances. Obviously we will read the report you produce with great interest. But I hope the Committee will feel that we got the balance right, because that is what we are seeking to do, between providing support to deal with the immediate needs while providing help and assistance in anticipation of the political progress that all of us want to see and which is the only thing that is going to provide a solution to the problems that we have seen with our own eyes and we have been grappling with in the questions today. Thank you very much.

  Mr Battle: Thank you, Secretary of State, and to Mr Fernie, for coming along.





 
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