Vol. 399 No. 12
15 Mr. Howlin asked the Minister for Foreign Affairs , in the context of the Irish Presidency of the EC, the steps he will take to ensure that member states extend their budget support to independent Namibia; and if he will make a statement on the matter.
27 Mr. O'Shea asked the Minister for Foreign Affairs , in the context of the Irish Presidency of the EC, the steps he is taking to grant Namibia least developed status; and if he will make a statement on the matter.
I propose to take Questions Nos. 15 and 27 together.
I would like to take this opportunity to say that I am delighted at the smooth transition to full independence which Namibia has made.
I assume that Deputy O'Shea is referring to least-developed status in the context of the fourth Lomé Convention. I should say at the outset that Namibia has applied for membership of the convention. I expect that the Commission will shortly make proposals for a Community negotiating mandate covering all aspects of Namibia's accession. When the Council has agreed on the mandate, the Commission will then open formal negotiations with Namibia which I would hope can be quickly concluded.
Among the issues which arise is Namibia's request for classification as a least developed country. Under Article 330 of the convention, 44 of the existing 68 ACP states are so classified. This gives these countries relative advantages over other ACP states in a number of areas covered by the convention. Any decision to add a new member to the list is to be taken by the ACP-EC Council of Ministers. In the first instance it is for the Commission to give a view on the request.
As regards budget support for the new government of Namibia, I understand that it expects to have a budget deficit of some 500 million Rand — 118 million pounds — per annum, as well as inheriting a debt of 750 million Rand — 178 million pounds. The Lomé Convention provides financial assistance for development and, specifically, for structural adjustment support, for which Namibia will, in principle, be eligible as a member of the convention. The latter can take the form of support for general or sectoral import programmes. As regards budget support, a number of donors have indicated that they intend to assist. The Minister for Foreign Affairs is satisfied that his colleagues in the Community are fully sensitive to Namibia's needs, so he does not see a need to raise the issue specifically with them.
