What action her Department is taking to support British firms in bids for reconstruction projects in Iraq.

Through UK Trade and Investment, we provide a range of advice and support to British firms that are interested in helping with reconstruction work in Iraq. That advice takes full account of the security situation in Iraq and the terms of Foreign and Commonwealth Office travel advice.

Realistically, as long as we are seen as an occupying army, and especially in light of those appalling pictures, which have had a dreadful effect in the Arab world, is there any possibility of proper reconstruction until the forces have been withdrawn and Iraq has a Government of its own?

I share the condemnation by my hon. Friend and many others of any abuse of prisoners that has taken place. Of course, the security situation is difficult, but the reality in Iraq is that its economy is growing and its water and sanitation services are significantly better than they were under Saddam Hussein. We have got thousands of schools and hospitals working, and we have got more Iraqis in jobs. I am proud of the fact that many British companies are bringing their expertise to help with that reconstruction.

If I can take the opposite view to Mr. Dalyell, such is the state of Iraq's infrastructure that it can be remedied only by private investment. Private investors will invest only if the situation is militarily secure and remains so. Does the right hon. Lady agree that the armed forces will have to stay there for a considerable period while the infrastructure is repaired?

My right hon. Friend the Prime Minister has made it clear that we will continue to support the Iraqi people in moving towards self-government. The elections that will take place this weekend are another step in that direction and, of course, we will continue to support the Iraqi people and the new Iraqi Government. They will have to make the judgment about how long they want coalition forces to support them but, for the moment, we will continue to provide that support both directly and by training Iraq's own police and security forces.

TQ Education and Training Ltd in Long Eaton in my constituency has just been awarded a $10 million contract to provide training for the Ministry of Electricity in Iraq. It was extremely pleased with the support that UK Trade and Investment gave it by providing information on logistics and the trading environment and putting it in touch with the appropriate contacts in the Iraqi Government. Is that not an excellent example of the DTI supporting British firms so that they can play their part in much-needed reconstruction in Iraq?

Indeed it is. May I, through my hon. Friend, congratulate TQ Education and Training, which will be doing enormously important work with the Ministry of Electricity, just as other firms will help staff in the Ministry of Oil to gain the expertise that they need? That has been possible only because of the superb work of UK Trade and Investment and I am sure that she agrees that it would be disastrous if the Opposition had their way and effectively abolished it.

Does the Secretary of State acknowledge that, while the Export Credits Guarantee Department has announced $100 million of additional short-term cover for Iraq contracts, £1 billion, with interest, of historic debts have had to be written off in Iraq and £3.1 billion of outstanding ECGD debts are deemed irrecoverable? Can she tell us how much British taxpayers may have to put at risk and, more particularly, will she undertake to report to the House the extent of any future write-offs? This is not a blank cheque for British companies, and it may not be secure because of the security situation.

I hope that the hon. Gentleman welcomes the fact that the Paris Club recently agreed to forgive 80 per cent. of Iraq's outstanding debts, as that is important in enabling reconstruction to take place. In the long term, with the enormous resources that Iraq has, there is no reason at all why it should not be able to repay debts. The ECGD, within a stringent risk and commercial framework, makes careful judgments on every country where it is asked to provide cover and, of course, on companies' individual applications.

My right hon. Friend rightly acknowledged the contribution that British businesses make to construction and reconstruction in Iraq. PB Power in my constituency has received a grant from the Department, and the company is now using its considerable skills to create a national electricity generation and distribution system in Iraq to power hospitals, workplaces, homes and schools for the ordinary citizens of Iraq.

I congratulate PB Power, which is doing immensely important work, along with many other companies. I hope that the whole House will join me in paying tribute to the British firms and British workers who are working alongside the Iraqi people and helping to rebuild that country in difficult and often dangerous circumstances.