To ask the Secretary of State for Foreign and Commonwealth Affairs pursuant to the answer to the right hon. Member for Richmond (Yorks) of 15 May 2009, Official Report, column 1061W, on departmental public expenditure, for what reason the administration allocation for the Baghdad post was reduced from £26,584,327 in 2007-08 to £2,673,946 in 2008-09; what categories of cost are now incurred at the post; and how much staff security at the post cost in the latest period for which figures are available. (276814)

Since 1 April 2008 funds for major contracts in Iraq have been managed from London as this is more cost-effective. The funds managed at post are for local running costs.

The total allocations for London and posts in Iraq Directorate for 2007-08 were £39.2 million. In 2008-09 total allocations reduced to £36.1 million. The decrease in allocation was because of the renegotiation of major contracts.

Costs incurred at Baghdad include those for security, transport, medical, catering and other life support costs.

To ask the Secretary of State for Foreign and Commonwealth Affairs pursuant to the answer to the right hon. Member for Richmond (Yorks) of 15 May 2009, Official Report, column 1061W, on departmental public expenditure, for what reason the administration allocation for the Kirkuk post was reduced from £1,390,059 in 2007-08 to nil in 2008-09; for what reason the administration allocation for the new post at Erbil remains at £140,569; what services in Kirkuk have been reduced as a result of the change; and what recent discussions he has had with authorities in the Kurdistan region on the effect of the change on the UK's policy on northern Iraq and the Kurds. (276816)

UK-based staff moved from Kirkuk to Erbil in February 2007. One locally engaged staff member remains in Kirkuk, administered from Erbil. All services provided to Kirkuk have ceased.

Since 1 April 2008 funds for major contracts in Iraq have been managed from London as this is more cost-effective. The funds managed at post are for local running costs.

The total allocations for London and posts in Iraq Directorate for financial year (FY) 2007-08 were £39.2 million. In FY 2008-09 total allocations reduced to £36.1 million. The decrease in allocation was because of the renegotiation of major contracts.

The Government attach great value to our relationship with the Kurds both as part of bilateral relationship with Iraq and directly with the Kurdistan Region. Kurdish leaders including Kurdish President Masoud Barzani and Kurdish Prime Minister Nechirvan Barzani have a major role to play in continued stabilisation and security in Iraq and, through dialogue with the federal Government in Baghdad and finding political solutions to the remaining nation-building legislation.

Separately, we continue to strengthen our relationship with the Kurdish Region by helping it to prosper as a stable, democratic and economically viable region through closer ties in education, trade, culture, security sector reform and supporting its efforts to establish better relations with its neighbours such as Turkey.