Foreign Affairs and Defence

Part of the debate – in the House of Commons at 7:37 pm on 24 November 1980.

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Photo of Mr William Shelton Mr William Shelton , Lambeth Streatham 7:37, 24 November 1980

I would far rather use the term "generosity" than "self-interest".

His Grace the Archbishop may well have been right to say that aid has been cut faster than other expenditures in the Departments of State. Frankly, I do not know. It is difficult to measure one against the other. But I still believe that we are doing very much better than most other countries.

He also accused us of being more preoccupied with our own needs than with the vital requirements of a developing world. I believe that it is the duty of a Government to be preoccupied with the needs of its own citizens. Nevertheless, as my hon. Friend the Minister for Overseas Development said: Our ability to support development overseas is dependent on the state of our economy."—[Official Report, 20 February 1980; Vol. 979, c. 464.] That must be true; no one can deny it, and no one can deny it who thinks about it. But, as has been fashionable over the past decade, it is all too easy to believe that Governments somehow have money of their own and that if they do not spend as much as someone wishes on a certain project it is either through malice or miserliness. In fact, Governments do not have money of their own. It comes from the people and the wealth-creating sectors. Aid must take its place within the framework of Government expenditure.

It is true that if the money given in aid is used to purchase goods from this country, one gives a sigh of relief and says "That is all right." I agree that it is advantageous in some ways in terms of self-interest. Nevertheless, that is equivalent to the Government giving away the goods, so it cannot be regarded as a completely painless operation.

I am dubious and slightly cynical about gifts of large sums of money to help the Third world, the developing countries or the poorer nations. For nine or 10 years, I lived in a developing country in the Third world. I worked there and had an interface with the business community in that part of the world. If a disaster occurs, money should, of course, be given—I am sure that our sympathies go out to the people in Italy who have suffered so recently—but the transfer of massive resources from nation to nation is something that I view with a certain amount of cynicism.

I am not necessarily referring to the graft and corruption for which purposes aid moneys have been used—aeroplanes, cars, roads leading to the palace, Swiss bank accounts, arms purchase, or the unintentional bolstering of regimes which might be better not bolstered. I believe that the best way to give aid is a far more direct way. There is a Chinese saying that if one meets a hungry man, one does not give him a fish; one gives him a fishing rod. To me, that sums up our approach with regard to aid.

I am sure that the hon. Member for Crewe is aware that the United Kingdom is the world's second largest overseas investor. That is one way of giving aid. Whether or not she agrees, the multinational companies give aid. I do not believe that the inhabitants of those parts of the world in which I lived would have had access to the drugs and medicaments that they did had it not been for various large American drug companies. It is true they made a profit, but they supplied the aspirin and the drugs which those countries needed. In my experience, investment, joint partnership and international companies are of profound importance when we speak of aid.

When I lived in South America, I was enormously impressed by the work of the American Peace Corps. I am sure that hon. Members will know that the Peace Corps is very similar to the Voluntary Service Overseas organisation in this country, which I also support very much. The director of VSO is an ex-colleague of ours, Mr. Frank Judd, for whom we all had a great respect. The VSO receives from the Overseas Development Agency just under £2 million, and it receives another £1 million from overseas Governments. That is excellent, because if overseas Governments contribute they give the VSO more room, help and support. This year, the organisation will be recruiting 360 volunteers who will serve for two years. It will therefore have just under 1,000 volunteers serving in 20 or 30 markets.

The House knows what those people do. They work on the spot, teach, train, dig latrine ditches and do an outstanding job. Again, that is the sort of aid that I view favourably. It is absolutely first-class. Not only is it helpful to the countries involved, but it is also excellent training for the volunteers. I understand that discussions are at present continuing about a VSO grant, and I very much hope that it will be increased rather than cut. We are talking about £2 million out of a total of just under £1 billion which this country is giving in aid. Whatever his Grace the Archbishop may think, our international standing is higher than it has been for a number of years and we have much to be proud of in our aid record.