A review of Ireland's policy on international aid was called for by Mr Michael D. Higgins (Labour, Galway West).

"There is need for a review, through a debate, of our relationship with the different international institutions and our obligations," he said.

Mr Higgins was speaking during the debate on the report stage of the Bretton Woods Agreement (Amendment) Bill, which gives the go-ahead to the debt relief package announced by the Minister for Finance, Mr McCreevy, and the Minister for Foreign Affairs, Mr Andrews, last year. The package amounts to £31.5 million over 12 years, with £17 million to be disbursed this year.

The Bill also provides for the adoption by Ireland of the proposed fourth amendment of the articles of agreement of the International Monetary Fund. The Fine Gael spokesman on finance, Mr Michael Noonan, warned Mr McCreevy that Ireland would lose its moral authority, which it enjoyed because of its tradition and record on overseas aid, if it agreed to contribute to the IMF without the necessary reform taking place.

"Uganda is put forward by the IMF as the success story. Growth was restored and the economy stabilised, but the benefits of growth were found mainly in the urban areas, which contain only 10 per cent of the population. The lot of 90 per cent of the population, who live in rural areas, was not improved by the application of ESAF programmes," he added. The report stage debate will resume next week, when the Bill is expected to pass all stages.