G7 must take on Haiti recovery plan, global economic crisis

The G7 ministers and central bankers who are meeting in Iqaluit must
also ensure that devastated Haiti is not left saddled with crippling debts as
it recovers from the recent earthquake.

Oxfam is asking G7 finance ministers to:

.
Adopt a Financial Transaction Tax to raise resources to tackle poverty
and climate change.

.
Agree that all new financial assistance to Haiti be given as grants, not
loans; and to cancel Haiti's existing debt immediately.

.
Agree an emergency recovery plan for development aid.

A tax on financial transactions of large banks, even at a small rate of
around 0.05 per cent, would raise billions annually at no cost to ordinary
taxpayers.

'This is the only way that G7 countries will raise the massive resources
needed to pay down their deficits and at the same time meet the Millennium
Development Goal of halving global poverty by 2015, said Oxfam Canada
executive director Robert Fox.

'The international community has acted rapidly and generously to provide
for Haiti's immediate emergency needs. The G7 must now also make sure that
Haiti is not left saddled with crippling debts as it recovers and rebuilds,
Fox said. 'They must agree to all new financial support being in the form of
grants, not loans, and commit to a clear plan to cancel what remains of Haiti's
debt.

'It is now time to honor the promise made by the G8 in 2005 to increase
development aid by $50 billion, said Emma Seery, Oxfam campaign manager. 'On
current trends this commitment will be missed by $30 billion, a terrible breach
of faith. The G7 must take emergency action to meet their aid promise in 2010.

For information: Karen Palmer karenp@oxfam.ca

613-237-5236 x. 2285

613-240-3047