British tax payer subsidising Iraq reparations - Cable

5.46.35pm GMT Mon 27th Nov 2006

Liberal Democrat Shadow Chancellor, Vince Cable MP

Today, Liberal Democrat Shadow Chancellor, Vince Cable MP will challenge the Chancellor to justify his recent commitment to increase reconstruction aid to Iraq, during the Queen's speech debate.

His challenge follows news of Iraq's decision to divert over $20bn of its own oil revenues into additional 'reparations' payouts to oil rich Gulf states and to companies which suffered 'loss of business' during the first Gulf war.

Dr Cable said "British tax payers are being asked to pay for the reconstruction of a fundamentally oil rich country, whose own oil wealth is being siphoned off not for reconstruction or the welfare of its people, but to pay greedy companies and the Government of Kuwait.

"Kuwait has already been compensated for property damage and loss of life caused by Saddam Hussein's invasion but it apparently now wants more.

Multinational companies such as Bechtel, Halliburton and even Kentucky Fried Chicken are demanding vast sums, not for damage, but because Saddam Hussein war dented their profits.

"It is outrageous that Tony Blair and Gordon Brown should acquiesce in such a corrupt and immoral system of payout and then cheerfully toss in hundreds of millions of British taxpayers' money to fill the financial gap."