To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about the future of the aid and trade provision.
The Government have concluded their review of the aid and trade provision—ATP. They have decided that the scheme should continue. It will help finance sound projects that will contribute to sustainable development and that are of particular industrial and commercial importance to Britain. The ATP budget for 1993–94 of £110 million will be enhanced by £7 million subject to parliamentary approval. The scheme will in future focus on creditworthy, low-income—income per head under $700—developing countries.There will he a transitional period during which a few projects already at an advanced stage of consideration, which would not be eligible under the revised scheme, will exceptionally be taken forward. The selection of projects under the revised scheme will take account of the new OECD rules governing the use of tied aid which came into force in 1992. Specific measures to improve the effectiveness of ATP and achieve better value for money will be implemented immediately.This revised scheme will provide a clearer framework for industry within which companies should be able to obtain an early indication of the prospects for ATP funding for individual projects.