Written question asked by Peter L Pike (Labour) on Tuesday, 11 November 2003, in the House of Commons. It was due for an answer on Wednesday, 19 November 2003. It was answered by Bill Rammell (Labour) on Wednesday, 19 November 2003 on behalf of the Foreign and Commonwealth Office.

Foreign and Commonwealth Office

Question: To ask the Secretary of State for Foreign and Commonwealth Affairs, what efforts are being made in Iraq to re-employ the Iraqis who are unemployed; what discussions he has on assisting these people whilst unemployed; and if he will make a statement.

Answer: Mr. Pike: To ask the Secretary of State for Foreign and Commonwealth Affairs what efforts are being made in Iraq to re-employ the Iraqis who are unemployed; what discussions he has on assisting these people while unemployed; and if he will make a statement. [138702] Mr. Rammell: The Coalition and Iraqi ministries have placed very significant emphasis on the need to sustain and stimulate employment in Iraq. The payment in full of public sector wages has returned rewards for work to many crucial employees. A micro-finance programme has been created for small businesses and rules on foreign direct investment and tariff holidays have also been introduced to promote the Iraqi private sector, protecting existing jobs and creating new ones. As a result of the publication of the Iraqi Budgets for 2003 and 2004, for the first time in decades the revenue from Iraqi oil sales is being spent on meeting the needs of the Iraqi people. In combination with the many billions of dollars of international reconstruction funding being channelled into Iraq this public expenditure is stimulating demand for labour. With the exception of senior Ba'athists, former members of the military who lost their job as a result of disbanding the Iraqi army have been paid a stipend. Many are also undergoing retraining to join the new Iraqi security forces.

Secondary information