by Rita Wall CAFOD this week called on the Chancellor of the Exchequer, John Major, to include in his first budget on Tuesday, tax incentives to encourage Britain's private banks to reduce the burden of debt on the third world.
Endorsing a report by Dr Griffith Jones of the Institute of Development Studies in Sussex, CAFOD gave its support to proposals that the government encourages private banks to set aside adequate funds to cover losses from third world loans. CAFOD also backed suggestions that banks be penalised if they fail to take part in schemes to ease debt burdens on the poorest countries by reducing their tax concessions.
CAFOD's director Julian Filochoski said that these plans "would contribute to lessening the debt burden which has negated the the development prospects of third world countries during the 1980s".
• The Catholic Housing Aid Society (CHAS) has called on the government to review the entire mortgage interest tax relief system. Ms Robina Rafferty, director of CHAS, explained that the current £7 billion set aside for this tax relief system, is more than the sum available for building low cost housing. Ms Rafferty highlighted that both rich and poor are entitled to this mortgage tax relief.