Dáil Éireann debate -
Thursday, 7 May 1981

Vol. 328 No. 11

Internal Agreement on the Financing and Administration of Community Aid: Motion.

Minister for Foreign Affairs (Mr. Lenihan)

I move:

That Dáil Éireann approves the Internal Agreement amending the Internal Agreement on the Financing and Administration of Community Aid of 20 November, 1979.

Before going into the details of the agreement which is the subject of this motion, I would first like to briefly explain the overall context in which it is set.

The second ACP-EEC Convention of Lomé which was approved by the Dáil on 6 December 1979 came into force on 1 January this year. This convention governs relations in trade, aid and other areas of co-operation between the European Community and 60 African, Caribbean and Pacific States. Under the terms of the convention, a country whose economic structure and production are comparable to those of the ACP States may, with the approval of the ACP-EEC Council of Ministers, accede to the convention by concluding an agreement with the Community.

Zimbabwe applied for accession immediately on achieving independence in April 1980 and on 4 November an agreement on the accession of Zimbabwe to Lomé II, together with a parallel agreement on products within the province of the European Coal and Steel Community, were signed in Luxembourg. Under these accords Zimbabwe will be entitled to the same rights, and subject to the same obligations, as other ACP States signatory to the convention. These agreements are now in the process of ratification by member states and copies have been laid before the Dáil in accordance with Constitutional procedure.

At the same ceremony in Luxembourg, the Community and Zimbabwe also concluded an interim agreement which extended the trade provisions of the Lomé Convention to Zimbabwe as from 1 January 1981.

Under the terms of Article 186 of the convention, the accession of Zimbabwe will require the Community to increase the amount of financial and technical aid pledged to the ACP States — currently standing at 5,227 million European currency units (ECU) or IR£3,627 million. Of this figure 4,542 million ECU is to be distributed through the Fifth European Development Fund (EDF) while the remaining 685 million ECU will take the form of loans granted through the European Investment Bank (EIB).

The 5th EDF was established by the Internal Agreement on the Financing and Administration of Community Aid which was signed in Brussels by the member states of the Community on 20 November 1979 and approved by the Dáil at the same time as the Second Lomé Convention. In addition to comprising the funds allocated for the ACP States, the fund also has 94 million ECU set aside for distribution to the overseas countries and territories of Community member states, under special arrangements along the lines of those established for the ACP States under the Lomé Convention. The total volume of the 5th EDF at present, therefore, is 4,636 million ECU of which Ireland will contribute 0.6 per cent. That is 27.8 million ECU or IR£19.3 million.

The agreement before the Dáil today is an amendment to the Internal Financial Agreement of November 1979. This amending agreement was signed in Brussels on 16 December 1980 and it is intended that it should take effect on Zimbabwe's formal accession to the Lomé Convention. The result of this latest agreement will be to increase the size of the 5th EDF by 85 million ECU, IR£59 million, to 4,721 million ECU. On the basis of our 0.6 per cent contribution Ireland will be due to provide 28.3 million ECU, IR£19.7 million. This represents a net increase in our contribution of 510,000 ECU or IR£354,000. It is expected that this additional contribution will be called up over a period of seven to eight years.

The purpose of increasing the size of the fund by 85 million ECU is to ensure that other ACP States do not receive less assistance from the fund as a result of Zimbabwe's eligibility to EDF aid. The size of the increase was determined in accordance with the criteria used to allocate the existing resources of the 5th EDF among the various ACP States—that is, population and gross national product per capita. Attention was also given to the particular opportunity for regional development programmes on a supranational basis afforded by Zimbabwe's location in the heart of southern Africa.

I said earlier that an increase in the amount of aid which the Community makes available to the ACP States was a necessary condition for Zimbabwe's accession to the Lomé Convention. This is indeed the case but there is a more positive aspect. As Zimbabwe moves into its second year as an independent nation it needs financial assistance to help it realise the vast potential of its human and physical resources. Approval of the agreement before the Dáil today will represent a pledge, on behalf of the people of Ireland, to provide over IR£350,000 towards these needs.

Mr. Keating

On behalf of Fine Gael I support the proposal before the House to assist this new nation. We are happy that the proposals will do at least a little in that direction.

We have heard about the problems of Zimbabwe and I hope that the contents of the agreement and our contribution will be adequate. I am a little uncertain that the additional contribution we will be called upon to make — according to the Minister over a period of seven or eight years — will be adequate and will be available to Zimbabwe as speedily as it is needed. We are aware of the economic stresses and strains of that country and of the plea of their Government not just for the formal ratification of the agreement but also for assistance to cope with the great problems encountered by any new country, many of which are unforeseen. I should like to think that our efforts in encouraging this emergent nation will be designed not just to extend formally the internal agreement on the financing and administration of Community aid but will be sufficiently responsive and flexible so that if in the early years of Zimbabwe special efforts may be asked of us we will not be found wanting as a nation or as a Community.

The sum we are being asked to pay over a period of years is small. If the need arises to make available financial or other resources, particularly in the initial difficult period through which Zimbabwe is going, I hope we will have the courage and the wisdom to go beyond the call of minimum duty in terms of our membership of the EEC. We are a relatively new nation and we experienced many economic and social difficulties during the years. I believe there is a willingness on the part of our people to assist in this kind of undertaking. Fine Gael are happy to support the motion before the House.

Mr. Quinn

This proposal is a logical consequence of the final independence of black Zimbabwe, delayed for 11 years by the intransigence of the white population, regrettably with the support of the British Government. Now that Zimbabwe has taken charge of its own nationhood, the least we can do is to give it full support and this is the net effect of the proposal before the House. There can be no argument about agreeing with it and that is why we are co-operating with the Minister in dealing with the matter on what may be the last day of this Parliament. Perhaps the Minister will let us know if the approval of the Seanad is necessary—I suspect it is not.

Zimbabwe has a key and critical role in the relationship of black Africa with South Africa and in regard to the ability of that part of the world to feed itself. The amount we are giving is quite small — an average of £50,000 over seven years. I should like to see the Minister for Foreign Affairs coming to this House announcing a specific bilateral aid programme for the people of Zimbabwe, particularly with regard to food.

In this country we are in a position to make a substantial technological exchange of expertise in the area of food processing and in primary food culture — I refer in particular to cattle and milk products. The experience of both Zambia and Tanzania has been one of great difficulty in transferring from a peasant agricultural-based rural way of life into modern States while maintaining adequate food supplies. We are a food exporting country and we have developed the expertise on our own. We have comparatively clean hands in relation to Africa. We should use all of those factors to develop the ability of the economy of Zimbabwe particularly with regard to food production. I hope the speed with which the Minister has brought forward this proposal, particularly in view of the fact that we may be attending the last session of the present Dáil, is an indication of the commitment of his party towards the development of proposals of this kind.

The Community could be deemed to be contradictory in its own attitude in that it has been moved to extend the size of the ACP Fund — Lomé V — because of the inclusion of Zimbabwe while, at the same time, it has not moved with the same degree of generosity within the Community to extend the size of the social and regional funds in relation to the accession of Greece. However, that is a political argument for another day's discussion. The Labour Party welcome the proposal before the House.

Minister for Foreign Affairs (Mr. Lenihan)

I thank the spokesmen for Fine Gael and Labour for their support. It is the obvious follow-on to our commitment in regard to the whole Lomé concept which we have encouraged within the EEC. Ireland has a very good standing because of our association with many of the recipient countries who are under the ACP umbrella.

Zimbabwe is a logical country to be added to the Lomé Convention. We propose to play our part in a direct way, as in our contribution here, and also to follow up with trade and diplomatic associations. This will be of practical benefit to Ireland as well as fulfilling our commitment under the Lomé Convention.

I should like to pay tribute to Robert Mugabe and the political leadership in Zimbabwe. That leadership has survived for more than a year in the difficult initial stage of nationhood. All the indications are that Zimbabwe will survive and will be a nation with a real leadership role within the African community.

Question put and agreed to.

The Dáil adjourned at 5 p.m. until 2.30 p.m. on Tuesday, 12 May 1981.