International Development (Official Development Assistance Target) (Amendment) Bill [HL]

(Limited Text - Ministerial Extracts only)

2nd reading (Hansard): House of Lords
Friday 18th November 2016 Lords Chamber

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, I thank the noble Lord, Lord Lipsey, for this timely debate on international development. It does not often happen in your Lordships’ House, but last business yesterday was the debate on international development in Africa in the name of the noble Lord, Lord Chidgey, and this is first business today. It is a welcome opportunity to flesh out, look again at and rigorously test the Government’s policies on international development.

It is absolutely right to place this in context. This is not a new debate; it goes back some time. My noble friend Lord Eccles referred to the history of the CDC going back 70 years. This particular pledge goes back to the UN General Assembly in 1970 and remained a commitment. I had not appreciated the point about the Liberal manifesto, but I do know that the 1974 Labour Government were the first to adopt it as an aspiration that they were seeking to achieve. However, it was not until the UN conference on financing for international development in Monterrey that serious impetus began to be given to that target. It was not until 2013, under the coalition Government led by David Cameron, that the pledge was met.

It is in the nature of good-quality debate that there will always be contributions that make one feel less comfortable and that nudge and challenge. I may be a member of the “aid crew”, as the noble Lord, Lord Lipsey, put it, but it is there because of the conviction that the best route out of poverty is economic development and education. It does not matter whether you are from Gateshead in Tyne and Wear or growing up in Tanzania, Kenya or any other part of the world, the facts are the same: economic development is based on education and that leads to less conflict. The more trade there is in the world the less conflict there will be. That is what we are focused on.

If I may say so, the noble Lord, Lord Lipsey, was a little uncharitable towards the role played by David Cameron. As a former Treasury Minister, the noble Lord may have a great deal of knowledge of the Treasury and he has written about those times. I will look up his book and take a closer interest in it. However, I was around the table when these policies were being developed when David Cameron first took over as leader of the Conservative Party and I can tell noble Lords that they were heartfelt. He initiated Project Umubano, a social action project in Rwanda, which many candidates from the Conservative Party went on. My noble friends Lady Hodgson and Lady Jenkin, who are in their seats, were part of it. Hundreds of people went on that project and saw at first hand what was being delivered there and it had a transformational effect. Led by the work of Andrew Mitchell, it resulted in a policy document called One World Conservatism. Whether you like the title or not, this was a genuine, deep and heartfelt recognition of the work which needed to be done by Government to fulfil our responsibility—in our enlightened self-interest—to the world’s poor. I have immense pride that it was David Cameron, supported by George Osborne, Andrew Mitchell and William Hague—now the noble Lord, Lord Hague—who delivered on that pledge as part of the coalition. It continues to be a Conservative Party manifesto pledge and we do not want to consider the notion that we might not be living up to that.

Additional legal rigour was given to this by the tremendous initiative undertaken by the noble Lord, Lord Purvis, in this House and Michael Moore in the other place. This brought forward the extra bit of steel needed to ensure that we live up to the obligations which were, as my noble friend Lady Hodgson outlined, “hard fought for”. Having been involved in some of those fights, I believe we are in a better place now. Having established and settled the argument over funding levels, we can now move our attention and gaze to the effectiveness with which those resources are being deployed and we welcome that.

I will set out our position on the Bill and then address some of the points raised in the debate. The UK’s Official Development Assistance investment is creating a safer, healthier and more prosperous world and is something Britain can be proud of. It is not in Britain’s interests to allow states to become ungovernable or unstable, nor allow their paths to development to be blocked. The noble Lord, Lord Hollick, referred to it having a “catalytic” and “enabling” impact. We believe that, at its best, that is exactly what it should be. It should also apply to all other programmes.

With more fragile states across the Middle East and Africa vulnerable to insecurity and terrorism and protracted crises, driving people from their homes in search of a better life—as the noble Baroness, Lady Sheehan, mentioned—the world is rapidly changing. The notion that this is the time to withdraw or back off, whether diplomatically, militarily or through our development programme, is flying in the face of reality. This is a time when this country needs to be more outward-looking and globally engaged than ever before. In many ways that is the argument I use to my noble friend Lord Blencathra. Britain’s strategic leadership on the global stage is more important. We cannot sit back and wait for international problems to arrive on our doorsteps. An outward-looking and globally engaged nation must take action to tackle these issues at source. The UK’s leadership in responding to global challenges is critical for eliminating extreme poverty and firmly in the UK’s national interest.

Delivering 0.7%, alongside our world-class Diplomatic Service, is a very important commitment. Sometimes there is argument and contention around the 0.7% figure. However, the Government also have a 2% commitment on defence expenditure. I do not hear many noble Lords, including on the Benches behind me, questioning that commitment. They think it is absolutely right in a world that is less safe that the safety of this country and of other people around the world is a priority, so we make that commitment of 2%, and 0.7% is part of our aid policy on that. We have, of course, our permanent seat at the UN Security Council and our historic relations with the Commonwealth. It has enhanced Britain’s role in the world as a global leader on development, as the noble Baroness, Lady Nicholson, said. We have a hugely influential voice in this field. I was particularly interested in her suggestion that we ought to look at ways of giving our aid greater visibility.

Many noble Lords spoke of their visits to different countries. The noble Lord, Lord Judd, talked about his experiences in Mozambique and the noble Baroness, Lady Hodgson, talked about the Bekaa valley. The noble Lord, Lord Purvis, spoke of his experiences and the noble Lord, Lord Bruce, talked about his extensive work and travelling during his time as the distinguished chairman of the International Development Committee in the other place. The right reverend Prelate the Bishop of Winchester talked about east Africa. When we visit these places, we may ask why there is not greater visibility for the UK taxpayers’ contribution in these areas. Of course, sometimes that is due to safety concerns for the staff working in an area delivering the aid. However, in certain cases I think we could do better in projecting our soft power in the way the noble Baroness suggested. I undertake to look at that.

Aid had a significant impact in transforming the lives of the world’s poorest people between 1990 and 2010. In the world today, 88% of people have enough food to eat and lead healthy lives—up from 76% in 1970. Fifty-four million more children started going to school in sub-Saharan Africa between 1999 and 2011. Millions more women now have access to family planning, and the number of women dying due to complications during pregnancy and childbirth fell by 47% between 1990 and 2010. Britain’s own aid programmes have already delivered education for 11 million schoolchildren and provided 69 million people with crucial financial services to work and trade their way out of poverty. On that point I again come back to my noble friend Lady Hodgson, who asked about some of the microfinancing initiatives, which those of us who have looked at this area consider are often the most effective, yet sometimes it seems as if the funding is biased towards the huge organisations with great delivery capacity. While that may of necessity be the case, a lot of those large organisations are working with small communities in small villages, and with individuals within those villages, particularly with women, to bring about transformational change.

Meeting the internationally recognised—OECD-wide—approach to calculating 0.7% gives us the moral authority to hold others to account for failing to meet their own promises. This is critical in convincing others to step up and contribute more to often underfunded humanitarian crises. I was particularly struck by references to this moral authority and how it is developed. It was most visibly in evidence at the regional conference in London to secure support for Syria held in February 2016, which secured pledges of more than $12 billion, the largest amount raised in one day for a humanitarian crisis. At the conference, the then Prime Minister David Cameron announced that the UK would double its own pledge to the Syrian crisis from £1.2 billion to £2.3 billion. The best kind of leadership you can ever have on the world stage is leadership by example. I believe that that is what happened there.

I am very grateful to the noble Lord, Lord Collins, for recognising the unequivocal commitment of the Secretary of State, Priti Patel, to overseas aid and to the 0.7% target, which she reiterated as a manifesto pledge. I know from the visits that she has made in recent weeks to Kenya, and last week to Sierra Leone, what a profound impact those countries have had on her as she has seen the effectiveness of DfID’s work around the world, as the noble Lord Hollick, mentioned. If the Bill were to be passed it could be perceived that, if we are to hit an average figure rather than an annual figure, certain years will be under the average. Therefore in those years we would fail to meet the obligation which has resulted in our having such a great effect on the world stage. That point was excellently underscored by the noble Lord, Lord Purvis, who said that there was a considerable downside to the proposals in the sense that we would lose the authority conferred by being a 0.7% committed donor. He also said that there is no visible upside, certainly in years three, four and five, as he rightly described the effect that procedure would have. As I have already noted, the five-year average target implies that in some years we will not meet that 0.7% figure. However, we are committed to ensuring that that happens.

In terms of annual reporting, the noble Viscount, Lord Eccles, said that living with two different year ends is something that has to be done in meeting an OECD DAC commitment. I was particularly interested in that not least because of my noble friend’s great experience in this area, having previously been for many years the general manager—as I think it was called then —of the CDC, or chief executive, as we would now term it. I was particularly interested when he asked whether we were doing too much reporting, overdelivering and duplicating. I am happy to look at that again. We will be able to examine the reporting requirements in the CDC Bill, which is now going through the other place, and debate whether they are too onerous.

DfID is one of the most effective aid delivery organisations in the world. It is widely respected. It spends around 1% of its budget on administration. It is rigorous in the way that it delivers its work. There are welcome elements to this Bill, which, if it is your Lordships’ will that it proceeds to Committee, we could explore further. For example, we could explore the right reverend Prelate’s comments on outputs and outcomes. We could also look at the work done by the Independent Commission for Aid Impact and its reports in this area and the work and scrutiny of the Select Committee. We believe that the work achieved through having this 0.7% target, and the impact that enables us to have on the world stage, are something we ought to cling on to and build on. I undertake to write to noble Lords and consult officials to see whether there are any issues I have not dealt with. I am grateful to the noble Lord for giving us the opportunity to talk about this issue and the reasons why we have got to where we are. As the noble Lord, Lord Collins, said, we should not for one minute be complacent. We need to recognise that we are dealing with UK taxpayers’ money and we need to make the case for what we are doing, as so many have done this morning and will continue to do. We are grateful to them.

[Lord McColl of Dulwich]

Would it be possible to have an arrangement whereby, if the budget is not completely spent in one year, it could be carried over to the next year for agreed, acceptable projects? The reason I suggest this is because when the consultants took over the running of Guy’s Hospital some years ago, we had a legal agreement that any money not spent could be carried over but only for agreed, acceptable projects.

[Lord Bates]

That is an interesting point. In reality, when the allocation is made a lot of the funding goes to multiyear projects, because these are often more effective than one-off events. They are multiyear, which is important—so in a sense, as part of the overall commitment, there is a carrying-over of programmes. We believe that the 0.7% commitment needs to be met. To do that, we need to stand by the OECD DAC rules, and we committed to doing that both in legislation and in our manifesto.