Bernard Durkan (Kildare North, Fine Gael)
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Question 173: To ask the Minister for Foreign Affairs the degree to which recent developments such as debt write-off are likely to impact positively on the various countries affected; and if he will make a statement on the matter. [27275/05]

Conor Lenihan (Dublin South West, Fianna Fail)
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At their meeting in Gleneagles in July, the G8 countries agreed on an initiative for the cancellation of debt owed to the World Bank, the African Development Bank and the IMF. The scheme will provide for the cancellation of debt for 18 heavily indebted poor countries — HIPCs.

The G8 initiative has been welcomed by Ministers meeting in the development committee ministerial meetings of the World Bank and the IMF. Ireland views it as an important recognition of the need for further significant reductions in the debt burdens of HIPCs. The Minister for Finance has indicated that Ireland will be prepared to pay its share of the costs of the scheme.

Ireland's official policy, adopted in 2002, calls for debt cancellation for all HIPCs and we will continue to work towards that end. We also hold the view that a country's obligation to repay debt must not prevent it from maintaining an adequate level of expenditure on services and investments in health, education, agriculture, water supply, sanitation, roads and other infrastructure. Without adequate resources for these areas, development and poverty reduction are impossible. I am glad that the G8 countries have come to the same conclusion. The objective of debt cancellation is to free up additional resources which can be devoted to working towards the millennium development goals of eradicating extreme poverty, achieving universal primary education, reducing child mortality, improving maternal health, etc. In this regard, Ireland intends to contribute €70 million to the IDA 14th replenishment to help ensure sufficient funding for loans and grants to less-developed countries. At the same time, it is clear that if borrowing by low-income countries is to be maintained at sustainable levels in the longer term, significant increases in ODA will be required, particularly by the larger economies.

With regard to the above, I take this opportunity to pay my own personal tribute to Bob Geldof and the DATA campaigners for their work in pushing debt issues at a global level.