The Government is deeply concerned about the debt problem of the poorest and least developed countries and the serious constraint it imposes on their economic and social development. We have consistently used the relevant international fora to emphasise the need to find ways to address the debt problems of the least developed countries and to indicate our openness to innovative solutions. In his address to the World Social Summit in Copenhagen in March 1995 the Taoiseach called for a fresh approach to debt issues and the consideration of all options, including debt cancellation. In addition, the Minister for Finance, as Ireland's representative on the board of governors of the World Bank and the IMF, has consistently highlighted the situation of the most severely indebted countries and has pressed the case for significant alleviation of the debt burden of developing countries.
There is now a growing sensitivity at the international level to the debt problems of the developing countries and a general recognition and acceptance that it is essential to make serious inroads into the problem of excessive debt burdens. The debt initiative for highly indebted poor countries, the so-called HIPC Initiative which was agreed at the annual meeting of the IMF and World Bank last October, represents a significant step forward in the international community's response to the debt problem of the most indebted countries. This initiative is designed to relieve the debts of as many as 20 poor countries, most of them in Africa. It is intended to help reduce their debts to sustainable levels in the interests of their economic and social development. It is comprehensive in nature in that all creditors, including multilateral financial institutions as well as bilateral and commercial creditors, are expected to meet their share of the necessary debt reduction of eligible countries' debt. As part of the HIPC Initiative, the Paris Club of bilateral creditor countries has agreed on its part to write off up to 80 per cent of eligible debt owed by lowincome countries on a case by case basis, compared to the 67 per cent currently available under the so-called Naples terms. The initiative can produce significant debt relief for severely indebted countries and should be given an opportunity to work.
The Deputy will appreciate that Ireland is a non-creditor country. All Irish aid is given by way of grant and does not add to the debt burden of any developing country. We are therefore not directly party to the debt problem and are not in a position to give a lead in the area of debt cancellation, as we do not hold any Third World debt. However, we will continue to use our influence to press for a just and comprehensive longterm solution to the debt problem in the developing world and would be prepared to give positive consideration to any proposals aimed at achieving that, including those put forward by various NGOs in the context of millennium celebrations. On "Today with Pat Kenny" a couple of mornings ago there was a discussion about the millennium and my view is that finding a way to cancel the debt would be an appropriate way to celebrate it.