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Dáil Éireann debate -
Thursday, 24 Nov 1977

Vol. 302 No. 1

International Development Association (Amendment) Bill, 1977: Second Stage.

I move: "That the Bill be now read a Second Time."

The purpose of the Bill is to authorise a voluntary contribution of £5,819,705 by the Irish Government to the Fifth Replenishment of the Resources of the International Development Association (IDA).

The IDA was formed in 1960 as a subsidiary body of the World Bank to provide loans on concessionary terms to the poorest of the developing countries. These terms are interest-free loans for periods of up to 50 years, the only charge being a minimal one to cover administrative expenses. The association's basic objective is to help raise standards of living in developing countries by channelling resources from the developed world. Its lending is concentrated on those countries with an annual per capita gross national product of less than £300.

Day-to-day management of the association is carried out by its secretariat under its president, Robert McNamara, reporting to a board of 20 executive directors elected by its 117 member countries. Policy matters are decided by the board of governors, consisting of one governor from each member.

For purposes of financing, the IDA is divided into 21 Part I or donor countries and 96 Part II, mainly developing countries. Part I countries, which are the industrialised countries, contribute most of the finance.

The association replenishes its resources at three-yearly intervals, when donor countries agree on the overall amount which is to be provided to IDA over the following three years. There have been four such replenishments to date, the last one providing the association with almost $4.2 billion for the period 1st July, 1974 to 30th June, 1977. Total resources provided by replenishments to date amount to nearly $11 billion of which over 96 per cent has been provided by Part I countries. Ireland joined the association on its formation in 1960 as a Part II member and subscribed £1.15 million to the initial capital. While we did not participate in the first and second replenishments, we did, as a Part II country, agree to make a special contribution of £2½ million to the third replenishment in 1970. Taking account of substantial economic progress made by the country since 1960, and of the fact that Ireland was the only EEC country to have Part II status, Ireland became a Part I member in 1973. We subsequently contributed £3.1 million to the fourth replenishment.

After more than a year of discussions, representatives of 26 donor countries agreed in March, 1977, to increase IDA's resources in a Fifth Replenishment of its funds. In addition to the 21 Part I countries, five Part II countries are making special contributions. These are the Republic of Korea, Saudi Arabia, Spain, United Arab Emirates and Yugoslavia. The arrangements are, of course, subject to legislative approval. The replenishment provides for total commitments of $7,638 million for the three-year period beginning 1st July, 1977. This represents a nominal increase of 84 per cent over the level provided in the fourth replenishment and is a measure of the commitment of the developed countries to meeting the needs of the poorest developing countries for external assistance on concessionary terms.

Of the total replenishment of $7,638 million it was agreed that traditional donors would aim at providing $7,200 million. This meant for these countries an increase of 60 per cent over what they had provided in the fourth replenishment. For countries whose currencies had devalued against the dollar the increase involved would have been much greater, in Ireland's case a contribution of £7.1 million, representing an increase of 130 per cent. This was obviously unfair and a final figure of $10 million (£5.8 million) was arrived at after bilateral negotiations.

I should point out that this does not involve actual payment of this amount over the next three years. It means that the IDA will receive commitments from Ireland, in the form of non-interest bearing demand notes in that amount, thus permitting the association to make commitments in turn to its borrowing members. In practice, the £5.8 million will be drawn down over a period of six to nine years, the time-scale depending on the progress of the various projects being financed by the funds and the rate of inflation in the meantime.

On June 16th of this year, the Board of Governors adopted the resolution authorising the association to accept the increased contributions previously negotiated. These contributions will become due 30 days after not less than 12 Part I countries with commitments amounting to 80 per cent of the total replenishment have given formal notification that they intend to take up their allotted contribution. The present position is that 13 Part I countries representing 44 per cent of total commitments have done so. United States notification is likely to be given shortly. The Fifth Replenishment will then require notification from just one other major country to become effective.

This Bill, if enacted, will enable Ireland to participate in the continuing work of the IDA to provide essential resources on highly concessionary terms to those countries who cannot afford to accept loans on the more commercial terms offered by the World Bank. The association has a proven record in the disbursement of concessional finance on a global scale. As I have indicated earlier, IDA lending is aimed at helping the poorest developing countries and is a major source of external finance for these countries. In recent years the IDA management have taken this process a stage further by concentrating to an increasing extent on projects which directly affect the living standards of the poorest sections in those countries. We support this approach. The concrete evidence for our support is the fact that the Irish contribution to IDA takes up well over 10 per cent of our total annual spending on official development assistance. The proposed contribution of nearly £6 million to the association will maintain this level.

I recommend the Bill to the House for adoption.

It gives me much pleasure to welcome this Bill. Last March, as Minister for Finance and Governor for Ireland of the International Development Association, I entered into a commitment on Ireland's behalf to provide this money, so the Minister need not anticipate any opposition to the implementation of our undertaking from this side of the House.

I might be forgiven for expressing my personal satisfaction at having been the first Irish person elected to hold the chair of the board of the International Development Association which is associated with the World Bank. IDA is the terminology used in World Bank and IMF circles and it is important that we should use it to distinguish it from our own Industrial Development Authority.

As far back as September, 1973, at the annual meeting of IDA, I committed Ireland for the first time to accept on a continuing basis an obligation to contribute towards the poorer countries of the world. At that time I declared our readiness to transfer from Part II membership, which imposed no obligations, to Part I membership, which imposed an obligation to provide the moneys which the members of Part I would decide in future to pay to poorer countries. It was the first time for us to enter into that unavoidable commitment to provide for the needy people of the impoverished world and I believe we were right to do it. If we had not done it in the comparative ease of 1973, many people would have argued that, during the difficult years of the recession, we should have held back from making an adequate contribution to the Third World.

For reasons which are not only altruistic but humanitarian, it is in Ireland's interest to contribute even greater sums than we have already committed to the Third World. One of the reasons which led us to make this commitment in 1973 was the good fortune which we had to become a member of the EEC, from which membership we have enjoyed advantages year in and year out. As we had been favoured with membership of the EEC, we felt it only right that we should share to some extent the increased opulence which that membership would give us.

The abject poverty and inhuman degradation in which more than two billion people are condemned to live is almost beyond our comprehension. We who are fortunate to live among the 700 million people who are comparatively better off may have had difficulty at one time in understanding the depth of human misery and degradation, but modern means of communication have made us all aware of the immense suffering in most of the world. For more than two billion people, existence is no more than a living death. Malnutrition, disease and ignorance makes their poverty self-perpetuating.

The average income of these two billion people, who have between £1 and £2 per week to live on, has increased by no more than 2p per week since 1960. In the intervening period those of us in the developing world have enjoyed a greater increase in our per capita income than in any equivalent period in the previous history of mankind—and I mean real increases, not nominal ones. During that period the wretched people in the developing world have had an average increase of 2p per week, which recalls the price of some crusts which were fed to the birds in a famous musical comedy. That is the real value of the increase in the incomes of people in the developing world whom this Bill is intended to benefit. Obviously, no person with the least morsel of human pity could but welcome this Bill and express the hope that we will do better in future.

With such a pitiful increase in the incomes of these unfortunate people over the last 15 years, it will be seen that their housing, nutrition and health standards have not stood still; they have deteriorated. They have sunk even lower into the mire of poverty, misery, pain and suffering. The gap between the rich and the poor is expanding, not narrowing, despite the substantial increases which have been given by Ireland and other countries in the developing world.

The gap between those who have and those who do not have is greater than it ever was before. The development needs of the poorest are staggering if no more than minimum needs are to be attended to. The reality is that all that IDA, the World Bank, UNCTAD, EEC, the Lomé Convention and other agencies are providing is not sufficient to prevent the poorest of the poor in this world sinking lower than the critical state into which they were born.

I have been dwelling on what I hope would be the humanitarian aspect which would touch even the hardest of hearts, but there is another way we ought to look upon the advisability of giving development aid. Acceptance of the interdependence of trading nations is a basic principle of a stable international economic order. The nature of goods that are traded between the better-off world and the developing poorer countries accentuates the interdependence. The developed world can produce food and products in excess of its own capacity to consume. It is in the interests of the developed world that the poorer developing world would have a greater capacity to absorb their surplus products. The developed world cannot maintain its own living standards—it certainly cannot improve them—and provide a better standard of living for its own peoples including its own poor, except by importing raw materials from the developing world, processing them and, in turn, consuming them or selling them back to the original producers of the raw material.

Selfishness may lead some people to ignore the Third World or to regard the billions of impoverished people in the world as an awkward liability. However, such a view is not merely selfish, but callous and stupid. The purpose of improving the international economic order which has been agreed at the UN and elsewhere is not merely the altruistic one of relieving human suffering but is motivated by an understanding that an increase in the capacity of the poorer countries to absorb and consume would help the better off as well as the poorer countries. It would increase the productive and the consuming capacity of all countries, developed and undeveloped.

I should like to take this opportunity of referring to a few matters which I believe should be aired. One of them was referred to this morning during the debate on the Industrial Development Authority legislation. A number of State agencies and State companies lack the legal and statutory power to be involved in work abroad and quite a number have rightly assumed that the Legislature would not challenge their activities abroad. In most cases even if the power is not given in the memorandum and articles of association or in the statute a prohibition does not exist either, but there are some cases where the limitations are quite clear. A number of agencies have rather limited horizons and ambitions. I understand that some have quoted their legal inability to be involved. One does not want to accuse them of doing that with any relish, but it has happened. I urge upon the Minister and his colleagues to take all steps speedily to ensure that every State agency which can give assistance abroad will give it. There are two reasons for this: the humanitarian obligation that lies on us all to help the poorest of the poor and, secondly, because immense benefit can flow to us out of involvement in activities abroad.

With the best will in the world and the most perfect economic plan or the most wonderful national psychology we are not going to be able to absorb in jobs here all the people who will be seeking jobs over the next ten years. There is nothing shameful in that. Indeed, it is highly desirable to involve our people in working for Irish agencies and Irish firms in other lands. By making some of our skilled people available for work in other lands through these State agencies we will be creating vacancies here for other people who otherwise would be idle. It would be wonderful if the export of Irish skills in future was to take place under Irish supervision and control with profit returning to Ireland rather than that it should resume the form it took for two centuries when our people with their skills went abroad to work for others and never returned.

Can the Minister tell me the current rate of interest charged by IDA on loans? At one time it was three-quarters of 1 per cent which was merely sufficient to cover the handling charges. In itself that amounted to a very real subsidy for poorer countries. I know that IDA have no wish to make profits and do not make profit on the money made available.

The interest rate is still the same.

In 1960 when IDA was established the figure which determined a country's eligibility for assistance was an annual income of 300 dollars per capita. That figure has risen, but I suggest it has not risen to as high a figure as it should be to compensate for world inflation over the last 17 years. Although there is an immense amount of good will towards the developing world, the developed world has not altered its aid to compensate for inflation which has taken place in the meantime nor has the developed world adjusted itself to take account of the massive increase in the population of the poorer countries of the world over the last 15 years. It will be appalling if once again the world has to suffer, as a means of curing the problem of over-population, a world holocaust. That is not the final cure. The cure is to have a better distribution of the wealth of this world, a distribution which is necessary if we are to have regard to our human obligations. It is also highly desirable if we want to improve the standard of living not merely of the poor but of ourselves also.

Human instinct would incline any person with a morsel of pity to help a fellow man, woman or child seen to be suffering. Very few people would dream of passing in the streets a person who is obviously suffering seriously from hunger, cold or malnutrition. Unless we give sufficient aid to the developing world we will, in fact, individually and collectively be passing in the street the beggars who are necessarily holding out their hands to us for assistance. The poorer countries of the world should not have to beg. They have the same right to have their human dignity respected as we have; and we have an obligation because of the means we have to share what we have with them so that others can enjoy the self-respect and the opportunity to improve their lot which is the good fortune of those of us living in better off countries. There are severely deprived people struggling to survive in squalid and degrading circumstances.

Absolute poverty today is a consequence not as it might have been at one time of ignorance but rather of neglect. Today we cannot plead ignorance. We know there is suffering; we have a clear obligation to relieve it. That is what this Bill is doing and I thank the Minister for its introduction.

On behalf of the Labour Party I welcome this Bill, and the contents of the Minister's speech, which clarify the main purpose of the Bill, which is to continue and increase our contribution. In that respect there is no difficulty on this side of the House about its being passed. It gives us an opportunity to raise, some five or six months after the Minister's assumption of office, certain points with regard to the whole question of aid.

I think it is four months actually.

Perhaps it is the impression the Minister has been creating —he looks like the real professional— of having been even a greater period in office. That was by way of saying perhaps that the Minister will, in replying, be in a position to indicate some answers to some of the questions I asked some time ago about the Council for Development, the whole question of how he sees the role of aid, and the co-ordination of the delivery of either Irish skills, money, charity from Trocaire or whatever through the Minister's agencies and the Government.

This Bill would be a part of that. I would follow what Deputy R. Ryan said with regard to our obligation to recognise the reality of global poverty. Unfortunately, appeals to the generosity of mankind do not have a very good track record. We do not have to go very far outside the country, or this building, to see levels of poverty totally unacceptable today. A figure of 25 per cent has been used. Appeals to common humanity or to the morsel of pity to which Deputy Ryan referred have not been successful, with people begging on the streets, not of Marrakesh or Dar es Salaam but on the streets of Dublin who are passed by every day. Therefore, simply calling on that sentiment alone unfortunately will not have the effect that Deputy Ryan believes it could or should have.

I should like to point out two things which make it obligatory, in our self-interests as well-fed and wealthy people, that this aid be given and why indeed we should increase it. There is first the moral one, which is self evident and which nobody would dispute. Secondly there is the point of global instability. It amazes me that it has not intensified already. But certainly it will by the end of this century if the growth rates for population and urbanisation continue the way they are. There are certain small groups of disaffected people who feel they have been totally excluded from any share of the world's wealth, or indeed from any prospect of participating in it. Much of it belongs to them in the first place. It is not that they are poor; it is just that they do not control their own resources.

If the current economic system in the Third World, as originally structured by western imperialism, is not changed radically, then groups like the PLO, or people modelling themselves on the PLO, can hold up our entire developed world to total ransom as a result of modern communications and technology. The real risk to stability of what we would regard as the developing world is that the technology is now existent for very small groups of people to potentially hold to ransom vast sections of our society. Lest there be any public resistance—I think we have a consensus within the House among working politicians and particularly among people who have some knowledge either at first hand or from study of the extent of the problem on which Deputy Ryan has given figures—we have a leadership obligation to explain to our people, to those who perhaps might doubt the necessity for it, that if they do not accept the moral obligation there is one underneath the counter which has far greater force and strength, that is, the old one of self-preservation.

We cannot continue to live in a world that accumulates butter mountains in Western Europe and stands by apparently powerless while people starve to the extent they do every day. That is the nonsense of the global economic system obtaining. There are too many people who will defend it on the grounds that you cannot replace it with anything else because you have greater problems. For the people who are starving, dying, without any control over their own resources, niceties and arguments about the difficulties of working within a mixed economy will fall on very deaf ears but very hungry mouths. Those people within our society who resent the granting of this money—on the grounds that we have 25 per cent of our own population poor—will have to be made aware, through the leadership of working politicians, of the realities of global politics in that context.

The Minister alone within the Government has primary responsibility in this area. I look forward not merely to one contribution but to a continuation of contributions from the Minister over the next three to four years on the responsibility of this country to the rest of the world. I would do it in this context: that as a non-aligned nation —I am glad to see that the Minister takes a positive interpretation of the word "non-aligned"—we are a far more acceptable vehicle of development aid, be it money or more importantly skill, to many Third World countries than others such as Belgium, Holland, France or Britain whose hands are still very dirty with colonialism, whose pockets are still being lined by the benefits of neo-colonialism. These countries give out aid—and Mother England is as big an offender as anybody else—on the explicit understanding that any aid given has to be spent in such a way that the maximum benefit accrues back to these countries. That is some aid—when one gives something with one hand and one ties up the country in terms of supplies, spare parts, materials and so on with one's own domestic market.

I would hope that the Minister, in celebrating the fact that we now have Part I status—and I am glad that that decision was taken because it would have been an insult to the rest of the world to maintain that we did not qualify for Part I status—would make it his business in coming years to ensure that the capacity of Irish professional skills is properly made available through the International Development Association or the World Bank. I do not have the figures to hand at present. From my knowledge, which is limited —although I am reasonably well informed in regard to the area of professional services, particularly in regard to the ACP countries and the Lomé Convention—of Irish attempts to export professional skills to countries requiring and seeking them, I am not satisfied that as much use has been made of them by these global agencies as could have been made.

If there is a fault there it is that of successive Governments and also that of the professions here in that they were not prepared to get involved. There seems to be an apparent contradiction that, on the one hand, as a professional architect and planner I can argue for such professionals in Ireland getting a bigger share of work that would originate from an aid fund such as this Bill is contributing to and, on the other hand, calling for a lack of selfishness in the donation of moneys. But while recognising there is a commercial incentive for either the State or private sector to become involved in such work, there is a political, ideological argument for encouraging Irish professional skills, whether it be in health, social work or in the construction industry, to become involved in the Third World countries through aid programmes such as the International Development Association on the precise grounds that we are not as commercially aligned or integrated as would be professional concerns in other industrial countries.

Let me give the House an example of what I mean. As a result of informative conversations I had with some people in the ESB about how they were received in certain Third World countries in specifying electrical projects and so on, they advanced as one of the reasons for their success in getting such contracts the fact that they were able to point out quite clearly that they were not the front-runners for some industrial manufacturing consortium or industry at home, that they would specify machinery and plant from different countries of origin, with different kinds of characteristics, spare part requirements and so on the basis of that machinery being suitable for the system required in the recipient country; whereas in the past the fact was that British and German consultants came to a country, designed an electrical system for an area and specified either total German or British components. In a delivery system of that kind with a whole range of different machinery no one country will have the best type of generator, the best distribution system and so on. There will be variations. The unique professional skill that the Irish professions, either semi-State or private, would have is that, because we do not have a commitment to such industrial bases or consortia we are in a much freer position to give unprejudiced and more professional help and skill to developing countries.

An important point in this regard is that most of us have come of age in a country that is still only developing. In professional terms people in the ESB, in Bord na Móna or in the private sector have direct experience of building more or less from scratch. That is an experience in terms of taking a country from an underdeveloped status into a developing role that very few professional designers have in their own countries, whether in Britain, Germany or France. In personal terms there is a far greater reservoir of real skill in Irish-trained professionals but that reservoir for whatever reason was not adequately recognised by the international agencies until recently. As a result of this Bill becoming law and the contribution being made, I hope the Minister through CTT—the relevant agency in this regard—the DEVCO operation generally and in conjunction with the CII and the boards concerned will make it his business to ensure that much more emphasis and enthusiasm is generated for this area. It is not just for the obvious commercial reasons. I believe it will improve our capacity as a country to solve our own problems if we acquire experience overseas.

In replying to this debate I hope the Minister will be able to indicate what timetable he has with regard to bringing together the various interests involved in the whole question of development aid. Has he any additional proposals with regard to how participation in development aid can be improved and extended by Irish people? I do not want to appear too sectional in my concern in this matter but obviously by virtue of my qualifications and professional involvement I have knowledge of a narrow spectrum of the whole area. There are other groups outside my sphere who have demonstrated competence and commitment to the satisfaction of international agencies and such commitment was totally beyond what people had expected of them. I am referring in particular to the activities of Concern in Bangladesh which are highly regarded by a number of people who have come into contact with them. Foreigners were surprised at the extent of the skill and professionalism of the Irish aid operation because of its size relative to the Irish economy. The number of people we have in a voluntary capacity overseas per population is enormous compared with many other countries. I am referring to traditional religious missionaries, most of whom are essentially involved in secular work of teaching and health in addition to the religious vocation as well as to those who are there in a totally secular sense, who are not members of religious orders.

We welcome the Bill. We hope the Minister will positively undertake in the next year or two the obligation to explain and to advocate increased participation by the Irish people in the process of granting aid to poorer countries. In particular I hope he will expound on the philosophical position of non-alignment by ensuring that whatever aid is given is given in an open-handed sense. By all means let there be an attempt to ensure maximum benefit for Irish professionals and Irish firms but the aid should be given on the clear understanding that it is not tied or conditional aid in the way it has been conditional aid from some of the traditional industrial countries.

Quite frankly, the kind of money the World Bank, IDA or UNCTAD are giving is chicken-feed in terms of real need and in terms of the amount spent on arms each year. The real threat to global stability is increasing rather than decreasing. The example that horrified me of just what the rate of growth outside the western world was at an international conference I attended four years ago. Somebody described an illegal squatter township that had grown up outside Mexico City —from the legal point of view it did not exist—and it had reached a size in terms of population of 500,000 people, just bigger than Dublin city. Mexico City is the first city that is likely to have a population of 20 million by the end of the century.

The projections of such figures in terms of impact are so enormous by Irish standards that they are beyond domestic comprehension. The Minister has a responsibility to ensure public acceptance of aid to those in need. Irrespective of our own poverty problems he must get the acceptance of the people to increase the money we give to the Third World on the lines of unconditional aid as I suggested at the outset. We support the Bill.

In welcoming and supporting the Bill I wish to make the following observations. The sum this little country is contributing is quite substantial per head of population. We are making it in the context that we are recently out of the category into which many of the countries whom we are helping will be. In other words, it is not so long ago that we were looking for development money from many sources; in fact we are still in the situation that we want to take in outside expertise and capital to develop our economy.

The money we are contributing is hard-earned money. Quite contrary to the suggestion of the previous speaker, I consider certain suggestions of a conditional nature would be helpful to some of the eventual recipients of this money, not necessarily Irish money but money coming through the IDA. One of the easiest types of development which will give benefit throughout the whole economy in any developing country is the development of a tourist industry. We are very fortunate that we have a very highly skilled and well-developed tourist industry with a back-up service around the globe. Some of the developing countries are beginning to recognise this and their tourist industry is starting to be developed. This kind of money channelled into such development can do nothing but good.

Tragically some of the natural assets of these countries may not be realised for the value which they hold. I respectfully suggest, if possible that should be said to some of these countries. For instance, Kenya at the moment is destroying some of her natural assets in the form of her wild life. If they destroy one thing which is going to bring in and develop a very viable business, there is not much point in us channelling money in that direction when it will not be properly used. The slaughter of animals in eastern Africa is totally reprehensible and is against the interests of the countries themselves.

I am told that it is normal practice in Kenya at the moment for friends of people in high places to flout the laws of that country and to slaughter elephants for their ivory. This is illegally exported, particularly to Hong Kong and other countries. I had the privilege of being there a few years ago. One of the memories I will always have is waking up at 7.30 a.m. and stopping counting elephants at 800.

Was the Deputy in bed late the night before?

I was in bed early the night before, and they do not have poteen there either.

I do not think we should start counting elephants on this Bill.

Maybe we should not be counting elephants but we should be counting our pounds before we send them. If they have no elephants they will have fewer tourists.

One of the developments which has taken place in the western part of Kenya is sugar plantations. Again this comes back to our technology and we might be able to ally their small farm technology with industrial farming methods. Many of these countries are looking for this type of aid. They have totally undeveloped economies and natural resources and they do not know how to utilise these resources. It is easy to say "Do not count elephants" and that sugar cane is grown many miles from here and we have no interest in it. We are contributing over £1 per head of population in this Bill. Therefore as such I suggest we have responsibility towards our own people and the people who are getting this money to make sure that it is spent to the best advantage. While it may sound silly to ask: "Were you up late the night before?" or to say that 800 elephants were on a plain in east Africa, I respectfully suggest that neither was a very sensible thing to say.

If the tourists from western Europe wish to come to the west of Ireland for the peace and quiet it is renowned for, then the wild life of east Africa is also a heritage which can be destroyed, and if we can bring any small measure of influence to preserve this, not alone for east Africa but for the whole world, then I suggest we do it.

We have been fortunate in our heritage of education. We have been able to make use of the opportunities given to us for industrial expansion. Unfortunately, the developing countries have not had that heritage. Their background of education has been skimpy, minimal, or non-existent in many cases. More by example and suggestion we have a responsibility in the expenditure of money of this type.

I seriously suggest to the sponsor of this Bill that certain conditional suggestions to countries which may receive this aid are in order.

I will deal with the two points raised by Deputy Fox. He is probably aware that development aid generally cannot be made conditional on terms which would be acceptable to us. I know that is not what he is suggesting but he did say that we should suggest that this money should be used in the most positive way. For example, in Kenya they could use it not only to preserve what they have but to develop their natural resources as an attraction for tourism. That is a very real and practical way of helping many developing countries.

We will convey his suggestion but not just in this case because it would be wrong of me to say that I would tell the president of the IDA what to convey to the Kenyans. It is a policy position. We will always endeavour to suggest to these countries with whom we are co-operating that the best way to promote our common aims is to develop their own natural resources. I hope that meets the case made by Deputy Fox.

Bord Fáilte are very actively involved in this area, mainly thoough the Lomé Convention and other international associations. This brings me to Deputy Quinn's point. Ireland has only relatively recently developed. I do not want to be misunderstood; we have never been in the same category as the people we are discussing although we may have been in the same category during the years of the great Famine. Nonetheless, we are in a stage of recent development. Because of that our experience, particularly through the operation of State bodies and our economic development, is relevant to much that is being done in many of these countries.

Tourism is a major element in that, and Bord Fáilte have a very significant role to play. I am glad to tell Deputy Fox and the other Deputies who contributed and whose contributions were very welcome, that this is an area I see as having great potential. It places an immense obligation on us to ensure that our State agencies are given the opportunity to provide the expertise and to co-operate with these countries, with no strings attached, no preconditions and no colonial political reasons for assisting them, whether it be with personnel or by capital resources.

That brings us to the general question raised by Deputy Quinn, that is, the role of our State agencies within the framework of the council he mentioned some time ago. I welcome the fact that we have to legislate to enable us to play our part in this international obligation. This is the second time since we took office that such an occasion has arisen. I welcome the fact that I will be called to account from time to time—although it does not look as if I will be called to account too often at Question Time—for the progress made.

Do not worry; we will get to the Minister.

I am not impatient. Despite the other obligations and activities in which I have been involved, I have not ignored this obligation, namely, the development of a comprehensive development policy. I have set in train—it has even gone beyond that —a consultation procedure. With my colleagues in Government, I have set out proposals and I hope within the next few weeks to be communicating with the interests concerned, inviting them to come and discuss the outline of the proposals which I hope will give rise to a council of the kind Deputy Quinn has in mind. These will be preliminary discussions. I will put my proposals to them and I hope I can be flexible enough to adopt their suggestions because their experience is very relevant and helpful to me. Perhaps, by the time another Bill of this nature comes to the House, the discussions will not only have taken place but the actual council will be established.

The one problem we face in this area—this has been touched on by Deputy Ryan before and by all of the Deputies who spoke today—is the fact that we have not sufficiently realised yet the potential of our State agencies, particularly in co-operating with those developing countries. The first reason is that we have not had diplomatic relations with most of those countries. The extension of our diplomatic representation, which I am also considering at the moment, will be determined to a considerable extent by the role which those embassies and our representatives abroad can play in establishing a new understanding with many of those countries. You have to have the political presence before you make the initial introduction. If Bord Fáilte, the IDA, CTT or the ESB presented themselves in any of those countries without the political introduction they would have no way of being assured whether or not they were involved in the private sector, what their standing there was or anything of that sort.

I am anxious to ensure that the closest possible liaison will be established with our diplomatic representations abroad and that the initial political introduction will be made which will guarantee that the representative organisations and the people in the private sector also will be able to make an immediate impact. The other countries of Europe have had diplomatic representations with most of the countries of Africa and indeed with Latin America where we have not had representations. Those are the areas where the greatest problems arise. I am glad to say that, allowing for that disability, we have been able, particularly through the Lomé Convention, to project that particular contribution we can make, namely, at the level of personnel and general advice.

Shortly before I came to the House today the Minister for Foreign Affairs from Sri Lanka came to discuss the textile quota for their country in the European Community. He was then travelling to Shannon Airport because he had become aware, through the activities of our State agencies generally, of the concept of the Shannon Free Airport Development Company, how much it contributed not only to the development of that area but also to a national development programme. This Minister for Foreign Affairs and another Minister for Trade with two other representatives were going there to spend some time talking to those people. This should be not only a source of satisfaction but also of challenge to us because that is where the great contribution can be made by us in the future. The possibility also of having even an external development corporation at some stage is not something which should be overlooked. The possibility of having an organisation which might co-ordinate much of what we can do at that level should be considered.

The advantage we have by working through the State agencies, which touches on something mentioned by Deputy Quinn, is that generally in many of the countries we are dealing with, the political situation is very different from ours. They are not all democracies of the type we know here. Perhaps that is understandable because where there is famine and hunger we will not get what we call political normality, which is a nice, comfortable, western-world term. If there is no political normality on our basis there will not be democracy on our basis. As often as not there will be authoritarian regimes one way or another. They have to be dealt with on a State trading basis.

The only people who can effectively do that on the basis of this co-operation we are speaking about are State-sponsored companies. Therefore, the contribution we can make in the private sector is necessarily limited. Sometimes it is non-existent. We are looking very closely at the possibility of extending the role of our State bodies generally in this area and perhaps enabling them in certain circumstances to sub-contract appropriate professional contracts to the private sector thereby involving both elements of our community. All of that simply sketches a framework within which we can operate and is certainly implicit in what has been said by Deputies in the House today.

This will enable us in the furtherance of our development policy generally to activate that awareness Deputy Quinn spoke about at all levels in our community. I believe it is there, but that is not enough. We have to follow a very consistent and precise programme in all of this. If we are to have a national development plan I believe that involves, almost by definition, an international development plan in the sense that we must also have a consistent programme abroad. I accept the contributions of Deputy Ryan and Deputy Quinn that we must do this not just for altruistic reasons, although it might be so, but purely in terms of our own survival if that were the only basis on which we could approach them. The western world became a developed part of the world to a very considerable extent because of the manner in which they have been able to exploit the weakness of the undeveloped parts of the world for a number of years. That will not remain so. There is now an impatience and a determination on the part of many of those countries, the countries of the 77 for instance, in regard to the existing economic order.

It is fair to say, I believe, that there is a growing awareness among the developed countries, particularly in Europe, of this economic order. While there is an awareness and a recognition that we must work closely with them (a) because it is a moral obligation and (b) because it is in our own interests to accept the reality of this new economic order, nonetheless one still finds a reluctance, even on the part of the European Community, to face up to the reality on occasions. At the moment we have such an occasion. We all know that the textile industry is a very sensitive one here, in Britain and in many other countries. We also know that many of the countries we are talking about here rely to a very considerable extent on the textile industry. We sometimes dismiss them in terms of our multi-lateral trade negotiations as "low cost countries" as if they were engaged in some kind of international conspiracy to undermine our markets or our industries. Why are they low cost countries? The answer comes back all too readily, because the people who are working in those manufacturing industries in those low-cost countries are being paid a mere pittance. They have hardly even a survival rate of pay.

The European Community, particularly a community that is in fact, by definition, devoted to free trade, must also be consistent and say: "If we are going to have free trade within the Community we should begin to accept the consequences of free trade in the world and not penalise the low-cost countries, as they are called, for the effects they are having on our market." This will inevitably mean, and it is something we will have to face up to, a restructuring of our industry so that we can reorganise. It is not just we who are in this position because this burden falls on even more developed countries than we are, but we have an alternative to redirect our industrial progress and take account of the problems of various sensitive areas, such as textiles, steel and so on. These countries have no alternative. In Sri Lanka they devoted a great deal to the development of the textile industry because they were advised to do so by the World Bank. Unfortunately that advice was not well-founded from the point of view of the development of the textile industry over the last few years. Since they followed programmes laid down for them by the World Bank they can hardly be penalised by us now when they produce low cost products which create problems for our markets. The European Community is becoming more and more aware of this and Commissioner Haferkamp is also aware of it. It is a long-term matter. It is not something that can be dealt with overnight. We will have to look to the areas in which these countries are particularly dependent and ensure in our programmes generally that we allow them the opportunity to compete with us so that they can maintain their development programmes. This will not mean any special preferences.

There is an increasing awareness of the interdependence of nations in this new economic world order, but awareness is not enough. We must now start through programmes—I thank Deputy Ryan for the correction, though I doubt if these countries are aware of our Industrial Development Authority——

I am sure there are terminologies used in the UN which I know nothing about.

Possibly, but this is something we have to get used to, terminologies and abbreviations of all kinds. Through operations like IDA there is an opportunity to make some progress. This particular programme under the International Development Association is directed mainly at those countries with the most appalling level of poverty. The qualification is an annual income of less than £300. In most countries being assisted it is less than £150. The figures quoted by Deputy Ryan and Deputy Quinn underline the appalling reality. Simply to maintain the difference that existed five years ago between developed and developing countries we would have to increase significantly the contribution we have been making over the last number of years.

This particular programme is directed at countries such as India. Bangladesh and so on where the general level of income is as low as I have mentioned. Within that, perhaps 66 per cent of the programme of the fifth replenishment of the International Development Association will still be concentrated on the areas of the most acute poverty. We are not talking in terms then of most of it going to people with the equivalent of £3 per week but, within that obvious range, the level of the most appalling poverty. If and whenever they graduate from qualifying under this International Development Association they then come within the range of activities of the World Bank and so on. What one does then is bring them along from the lowest level to some semblance of human dignity, if one can call it that, to the point at which they have passed from the alternative of life or death and can fend for themselves.

Incidentally, the sixth replenishment negotiations are already under way. They will start next year with a view to establishing the commitments we will have to meet towards this continuing programme over the next number of years. It is my hope our contribution will increase to the greatest possible extent. It should be acknowledged here that this is, in fact, giving effect to the commitment into which the former Minister for Finance entered on behalf of the Government last April.

This is giving legislative effect to that commitment. As a consequence of the latest ratification by the donor countries it will now be possible to get the sixth replenishment fund under way. I do not think there is anything more I have to say except that it will be necessary, as speakers have pointed out, to re-enforce the message over and over again. This is a national obligation. To the extent that the response will be forthcoming, as it always has been, I shall be glad to re-enforce the message and to ensure that this will always be done without any pre-condition but simply in answer to the obligation we have and in the light of the great potential there is for us, something Deputy Quinn underlined, to have really meaningful co-operation with these people in helping them to achieve some degree of human dignity and, hopefully, at some stage the same level of prosperity we enjoy.

Question put and agreed to.
Agreed to take remaining Stages today.
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