Letter to the Chairman of the Committee
from the Minister of State for Europe, Foreign and Commonwealth
Office
I am writing to let you know about a decision
the FCO has recently taken to phase out grant-in-aid funding for
the British Association for Central and Eastern Europe (BACEE).
In view of the current debate surrounding the future of enlargement
I felt it important to set out the reasons for our decision, and
to reassure the members of your Committee that it in no way represents
any diminishing of our support for the enlargement process.
BACEE is a Non-Departmental Public Body (NDPB)
chaired by Lord Radice. Two FAC members—Gisela Stuart and
Paul Keetch—are also members of BACEE's board. BACEE was
established in 1967 to promote democracy, human rights and the
rule of law in Central and Eastern Europe, and its project activities
have helped to underpin the remarkable reforms that we have witnessed
in the region in recent years. In recent years their focus has
shifted towards the Balkans and the enlarged EU's Eastern neighbours.
Grant-in-aid in the current financial year is £267,440.
NDPBs have come under increasing scrutiny in
recent years, reflecting government policy to keep their numbers
to a minimum. There are two criteria for determining whether or
not the status is justified: that there is a clear continuing
need for their work, and that an NDPB can be shown to be the best
way of carrying out that work.
BACEE clearly meets the first criterion: there
is a continuing need for project work to support HMG objectives
in the EU candidate countries, Western Balkans and Eastern neighbours.
The growth in FCO programme funds directed at this region illustrates
this. But BACEE no longer meets the second criterion. Now that
relationships with the target countries have been normalised it
is much easier for our Embassies to operate directly to promote
stability and democracy. Similarly, there is now a plethora of
organisations which can implement projects on the FCO's behalf:
NGOs, Other Government Departments and agencies, universities,
trades unions and consultancies. Increasingly we are working directly
through indigenous NGOs or through organisations in new member
states, who are eager to share their experience of reform and
integration with EU norms. All of these offer good, cost-effective
channels for the FCO to pursue its objectives.
BACEE have been aware for some time now that
the climate surrounding their future has been uncertain. In a
letter to the Chairman in December 2002 the Foreign Secretaty
made clear that no guarantees could be made about future levels
of funding and a review of BACEE in summer 2004 noted that in
retaining its grant-in-aid BACEE was swimming against the tide.
There is already one precedent: the Britain-Russia Centre/British
East-West Centre lost its NDPB status two years ago. Other FCO-sponsored
NDPBs are also under regular review.
The FCO proposes to phase out BACEE's grant-in-aid
funding gradually over the next two financial years. We hope this
will allow BACEE sufficient time to consider its position and
make any necessary arrangements to handle the transition to independent
status, if that is what its board and membership chooses.
It is important to underline that this decision
in no way represents any lessening of the Government's commitment
to the enlargement process. We remain among the foremost proponents
of further enlargement, which we see as the EU's most successful
foreign policy tool. Aspirant countries are well aware of our
support which is evidenced on both a political and a practical
level, including our emphasis on the issue during our Presidency,
increased levels of programme funding and a redoubling of our
efforts on twinning. We believe that a gradual, planned transition
for BACEE from government sponsorship is compatible with our overall
stance. We stand ready to assist BACEE in explaining the move
to its stakeholders, including in the beneficiary countries.
FCO officials are already closely involved in
explaining the decision to BACEE's staff, board and membership
and will do all they can to facilitate discussion on BACEE's future
and to handle the practical implications of the move away from
NDPB status. Should members of your Committee require any further
information or clarification I will be glad to oblige.
Douglas Alexander MP
Minister of State for Europe
Foreign and Commonwealth Office
30 September 2005
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