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Debt Relief (Developing Countries) Bill

My hon. Friend is exactly right. The other side of the argument is that it was important to ensure that we had cross-party consensus, given that the legislation was complex and that we were coming to the end of the Parliament. It was also thought important to ensure that there was a proper way forward and that there was provision for a new Parliament to take a further look at the matter. My hon. Friend is right and I am sure that these issues will be debated again. Amendment 2 would remove subsection (3), which means that the Bill would require annual renewal. It would be damaging and unsatisfactory for heavily indebted poor countries to have unresolved commercial debt claims hanging over them, particularly when there remains a possibility of those being aggressively enforced for their full value in spite of the debt relief provided by others. HIPC Governments have made clear the real economic costs resulting from the deterrent to trade and investment that such unresolved claims could create. If the Act remained temporary, with the possibility of expiring within a year, a commercial creditor who might consider seeking full repayment would have a disincentive to settle their claim, because if they held on to it and the Act expired, they would be able to pursue 100 per cent. repayment. The Bill, as introduced, did not create that incentive for creditors to hold on to their debts in the hope that the Act would expire, as it would have taken permanent effect immediately.