John Bruton
Question:48 Mr. J. Bruton asked the Taoiseach if he will report on his recent meeting with Archbishop Oscar Rodriguez; and if he will make a statement on the matter. [5781/99]
Ceisteanna–Questions. - Meeting with Papal Envoy.
Ruairí Quinn
Question:49 Mr. Quinn asked the Taoiseach if he has met recently with the papal envoy in relation to global debt; if so, the issues discussed; and if he will make a statement on the matter. [5978/99]
I propose to take Questions Nos. 48 and 49 together.
I had a very useful meeting with Archbishop Rodriguez of Honduras on 22 February last. We discussed the recent tragic events in his own country and he was very thankful for the work done by Irish agencies and aid workers in the aftermath of Hurricane Mitch. We spent most of our time discussing Third World debt and how it should be handled.
I pointed out to him that Ireland fully supports international efforts to achieve the greatest possible level of debt relief for those countries who are prepared to engage in sustainable economic and social programmes. In this context, I undertook to urge my European colleagues to support the archbishop's request for favourable consideration of the alleviation of debt and interest payments for the poorest countries. The archbishop for his part said he would encourage indebted countries to increase their commitment to democratic and social processes.
What conditions should be imposed on countries seeking to qualify for debt forgiveness? How can one distinguish between a country spending some of its money on armaments and one which is slightly less poor but spending slightly less on armaments?
We have been making this argument for some years, and I have made it at World Bank and IMF meetings. We are not in favour of outright debt collection, because a number of dictatorships would benefit. We have stated for a number of years that we will continue to press the international community, the IMF and the World Bank to give the highest possible debt relief to countries prepared to engage in appropriate economic and social reforms. These reforms have to be clear and substantial. Some countries have done this, but many are not prepared to act on what has been dictated by the IMF and the World Bank. That is the only benchmark one can have; either they are prepared to engage in these appropriate economic and social reforms or they cannot expect to make progress.
Archbishop Rodriguez feels strongly that there must be an understanding on these issues. He makes coherent arguments for Honduras, but also represents the Vatican and the Pope on these matters. It is not simple, but a benchmark must be set.
Does the Taoiseach agree that more than a commitment to the principle of debt reduction is required, welcome though that is? Following the end of the Cold War, there is an absolute necessity for the World Bank and the IMF to ensure structural adjustment in financial terms also means an adjustment in the structure of civic society, in accordance with the United Nations Declaration of Human Rights, so as to ensure a market economy can function effectively and efficiently.
Yes, I agree. The Deputy is familiar with the changes made at the last World Bank meeting early last winter and what the Paris Club has said. Chancellor Schröder recently moved – some would say significantly while others would argue not as significantly – to embrace the principles of the Paris Club which will aid them in some of the objectives they have set out over the past few years.
Is there significant Irish private borrowing outstanding to the most heavily indebted poorest countries or are we asking others to make sacrifices?
I do not think we have large outstanding amounts. Legislation was passed recently—
The Cayman Islands are not poor.
—but I do not think we are largely indebted to any of those countries.