Arrangement of Business
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Baroness Northover
My Lords, as the Question for Short Debate proposed by the noble Baroness will now be taken as last business, the time limit for the debate becomes 90 minutes rather than 60 minutes. Speeches should therefore be limited to nine minutes, except for the speeches of the noble Baroness, Lady Greengross, and the Minister, which remain limited to 10 and 12 minutes respectively.
Health: Neurological Services
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Baroness Northover
My Lords, like other noble Lords, I pay tribute to the noble Baroness, Lady Ford, for tabling this Motion and for her very effective introduction. I know how important this subject is to her. I am also very well aware of her excellent work with the All-Party Parliamentary Group on Epilepsy and with Epilepsy Action to improve care and support for people living with this condition. Like others, I must declare an interest, as I did two years ago, that I have two close relatives living with epilepsy.
As ever, this has been an extremely well informed and wide-ranging debate, which has raised issues across a range of neurological conditions. In November 2010 I was in the fortunate position to be able to answer an equally illuminating debate put down by the noble Baroness, Lady Ford, to which she and the noble Lord, Lord Patel, referred. I know that she has been somewhat busy with one or two things since then, including the Olympics, but I am glad that we are returning to putting an emphasis on this issue.
I assure the noble Lord, Lord Patel, that, in being briefed on this subject, one of the first things that I did was to ask what I had promised two years ago and what had been delivered, and I hope that I can provide some reassurance. I cannot guarantee that I will not overrun, but if I do not answer all the questions asked by noble Lords—there have been a multitude of them—then I will write to them.
This evening, we have heard that the challenge posed by neurological conditions is huge. Taken together, they are common: more than 10 million people in the UK live with such a condition. As noble Lords have indicated, they can give rise to complex needs that require support from a wide range of professionals. They also can change people’s lives profoundly. We have heard that neurological conditions have not always been well served in recent years, which, once again, as it was two years ago, was reflected in many of the speeches tonight.
Since then, the Public Accounts Committee has reported on neurological services, and the noble Baroness, Lady Ford, and others made reference to that. That report, which was published earlier this year, clearly argued that we need to do more to improve the quality of services. We have already responded to that report and we take its recommendations very seriously. Some of the issues that were flagged up had been flagged up before, and work is already under way to improve neurology services.
As noble Lords well know, it has been argued for years that better integration between health and social care is vital in this area, as in so many others. That is something that we are working hard to achieve; my honourable friend Norman Lamb has it at the top of his agenda. Better integration of health and social care offers a real opportunity to improve care and support for people with complex needs.
The noble Baroness, Lady Ford, and others made reference to the current changes in the health service. Locally, joint health and well-being strategies will, as noble Lords know, set out how local commissioners will work together to deliver the best possible outcomes for their communities. Health and well-being boards will bring together local partners to address the wider determinants of health such as education, transport and housing. So there are new opportunities there.
The Health and Social Care Act 2012, the outcomes frameworks for the NHS, adult social care and public health, the NHS constitution, the mandate we have just heard about and the draft Care & Support Bill all emphasise how collaboration between local government and the NHS is crucial to the future success of health and care systems locally. We are working to identify barriers to integration—those who were at the King’s Fund breakfast the other day will have heard how people across the spectrum are seeking to do that—and the means to encourage integration, which will seek to ensure that the patient is the focus, whatever complex needs they have.
Integrated care will also be the key theme of the outcomes strategy for long-term conditions that we are developing. The strategy will take a life view of long-term conditions, looking at issues across the course of a person’s life, and will set out what local government, the NHS, communities and individuals themselves can do to improve outcomes. In addition to integrated care, the strategy will be structured around the goals of early diagnosis—again, noble Lords made reference to that—promoting independence and taking steps to support those with long-term conditions to live as well as possible.
The PAC’s report in particular identified a lack of neurological expertise in developing services. In the current system, clinical networks have been responsible for sustained improvements to particular care pathways or for particular groups of patients. Noble Lords made reference to that too. They have raised standards, supported easier and faster access to services and encouraged the spread of best practice.
We are committed to ensuring that in the new system this way of working and delivering services is maintained, and that we build upon the progress that has been made. In July the NHS Commissioning Board Authority announced the establishment of four new strategic clinical networks, including one covering dementia, mental health and neurology. The network will help to improve outcomes for patients across England by ensuring that the NHS Commissioning Board and clinical commissioning groups have access to expert clinical opinion about the way that care should be planned and delivered.
Quality standards, to which noble Lords have also referred, published by the National Institute for Health and Clinical Excellence, will also play a central role in the new health and care system by providing patients and the public, health and social care professionals, commissioners and service providers with definitions of high-quality health and social care. We have asked NICE to develop a number of quality standards that are neurologically focused. Noble Lords also made reference to them, and I shall come back to them in a minute. These are already in development and, additionally, people with a neurological condition will benefit from cross-cutting quality standards.
I want to try to address a number of noble Lords’ questions at this point. The noble Baroness, Lady Ford, raised a number of specific questions. She asked about individual care plans. I assure her that personalised care planning is already being delivered. She also asked what was happening with regard to quality standards. A clinical guideline on assessment is to be developed, and from this we can develop a generic quality standard.
The noble Baroness asked about the continuation of the PAC recommendations on progress and wanted to know about driving up quality. The mandate to which people have referred emphasises what is important for people with long-term conditions. Irrespective of the nature of that condition, the focus is on how you try to ensure that people with long-term conditions are supported and how they would best manage their conditions. Taking it in a generic way, you try to ensure that you do not exclude other long-term conditions that we have not been talking about this evening, but obviously these ones would be included in that approach.
A number of noble Lords referred to data. The NHS Commissioning Board is working with the Neurological Alliance to develop a data set. It is extremely important that the information is there because, as noble Lords have said, unless you understand the nature of the problem—where you have patients, what treatment they are receiving, and so on—you cannot take forward what you wish to achieve. When I first became involved in this area, I was astonished at the lack of information on particular conditions around the country. That is something that the previous Government, and Governments before them, must take responsibility for. I am not at all surprised that the noble Lord, Lord Darzi, started to try to draw up atlases of diseases and outcomes and suchlike. To me as a former academic, it was astonishing that that kind of information was not there before. I assure noble Lords that this Government are taking that forward, but I would pose a criticism to previous Governments for not having done that basic work.
The noble Baroness, Lady Ford, asked about clinical commissioning groups taking specialised commissioning seriously, as did my noble friend Lady Jolly. It is extremely important. The neurological charities and organisations are providing support in this area, and I welcome that; they are supporting commissioners to understand the complexity of support and services needed, and the Department of Health has funded neurological commissioning support to work with the CCGs. I hope that that will pay dividends.
My noble friend Lady Jolly asked about the national strategy to help with the diagnosis of epilepsy. Quality standards are due for publication in February which will cover referrals to specialists and timely access to diagnostic tests, which we hope will improve things.
The noble Baroness, Lady Masham, asked about MMD guidance and various aspects to do with that, including the development of drugs. The UK rare diseases plan, which will be implemented before the end of 2013, will be looking at drugs for rare diseases and the research needed to bring them to market. She is quite right that, as in developing countries, rare diseases do not bring in the kind of investment that is needed in these areas. That is something that we are looking at.
We continue to review how NICE is taking things forward, and, of course, NICE itself reviews its workload and how it is managing it. Clearly, those who are concerned about other diseases are equally concerned that their NICE proposals are expedited. It is extremely important that NICE carries this forward as rapidly as it can, but it needs to balance that with its other workload. We recognise the importance of specialist nurses—a point made by the noble Baroness, Lady Masham. They help to achieve significant cost savings, and the Royal College of Nursing is at the moment looking at the value of specialist nurses and will help service commissioners in trying to understand what is required and what the workforce needs to be.
The noble Lord, Lord MacKenzie, asked a number of questions, some of which I have dealt with in my previous answers. He wondered whether the PAC recommendations would be revisited. No doubt the noble Baroness, Lady Ford, will have another debate, which I will no doubt answer, but I can say that the PAC has been asked by the National Audit Office to follow up on its report in 2014.
In terms of clinical leadership, the NHS Commissioning Board is determining how to structure national clinical leadership and advice within the board, and further announcements will be made shortly. I note that Dr Martin McShane, who has been appointed as the lead on long-term conditions, met the Neurological Alliance on 12 September, so I hope that that is encouraging to those who are concerned about leadership.
The noble Lord, Lord Patel, raised a number of questions that he had put to me previously. In terms of better services for children, subject to regulations being laid, children’s neuroscience services will be commissioned by the NHS Commissioning Board, which will promote greater consistency. The children’s health outcomes framework, which will be published by Christmas, will support the delivery of better children’s services and better outcomes. The noble Lord asked whether that would be carried over to adults, and I will get back to him about that. With regard to following the NICE guidelines, I remind him that they are advisory, not mandatory. Clinicians are free to adapt the guidelines. However, in a transparent system where those guidelines are known, that, too, puts pressure on the clinicians via the patients and certainly by the specialist organisations, which are clearly so well aware of what is required.
I have talked about the NHS Commissioning Board developing data sets and how astonished I was that they did not exist in a previous era.
The noble Baroness, Lady Gale, asked whether Parkinson’s and other diseases could be prioritised. All conditions will have equal priority under the new system. For those who are concerned about so-called Cinderella conditions, that should be an encouraging answer, although those who feel that the diseases that they are particularly concerned about get a lot of focus already might be a bit concerned. All conditions will have equal priority, so Cinderella conditions should be improved.
I conclude by assuring noble Lords that there is a real commitment within the Government to address the challenges identified this evening, with the support of the NHS Commissioning Board and generally within the health and social care sectors. We recognise that much still needs to be done, but our primary goal is the same: to improve the patient experience and outcomes, and to bring real benefits and real change to the lives of people living with neurological conditions. I am very sure that the NHS Commissioning Board will have heard what noble Lords have said in this debate.
Polio Eradication
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Baroness Jenkin of Kennington
To ask Her Majesty’s Government what plans they have to extend the programme to eradicate polio to ensure an expanded contribution from non-governmental donors.
Baroness Northover
My Lords, since 1988 the number of polio cases has fallen by over 99%. Polio is now endemic in just three countries: Nigeria, Pakistan and Afghanistan. We remain strongly committed to polio eradication and are exploring with the Global Polio Eradication Initiative how to increase impact and sustainability and how to broaden the funding base, including from non-government donors.
Baroness Jenkin of Kennington
I thank my noble friend. As she points out, polio eradication is an outstandingly successful development programme. During just one day in India, for example, Rotary International is able to vaccinate 172 children. In the UK, the Government’s match-funding initiative has been able to leverage £123 million from non-government sources from a £40 billion investment. Given the success of this programme, will the Government commit to looking at renewing and extending it with a higher cap in future?
Baroness Northover
I start by paying tribute to my noble friend for her own commitment in this area. We can indeed eliminate polio, providing everyone contributes in the way she has indicated. My noble friend is right; the Rotarians were instrumental in securing strong, local ownership in northern India to ensure that all children were vaccinated. It is very much a success story and Rotary International is involved in similar initiatives, I am pleased to say, in Nigeria and Pakistan. We are looking at financing options from 2013, recognising the benefits of match and challenge funding.
Baroness Kinnock of Holyhead
My Lords, the Minister will know, as she has clearly just said, that there are lessons to be learnt from the example of India, where for 18 months now not a single case of polio has been reported. Could we have a more explicit description of what has been learnt? What efforts have been made to improve the take-up of the vaccine in Pakistan and Nigeria, where fear and suspicion are being peddled by some religious leaders and others to persuade parents to refuse to allow their children to be immunised?
Baroness Northover
Yes, the lessons from India are being carried over, and it is excellent to see that India is offering technical support in Nigeria and Pakistan. That is also where NGOs can play a part in reducing levels of suspicion about vaccination. There are a number of challenges, not least from the fact that there is a lot of conflict in the areas where there is not yet adequate take-up. However, that has been eradicated in the DRC and Somalia, so this can be done. It is a matter of making sure that we drive through and finish this particular programme.
Lord Chidgey
Does my noble friend recognise that the Global Polio Eradication Initiative currently faces a funding shortfall of up to $700 million, which is jeopardising its potential for completely eradicating polio? With vital programmes facing delay or cancellation and countries that were previously polio-free now facing the risk of re-infection, what targets are the Government setting for restoring the public/private sector global donor fund, which has now dropped to 20 members from 50?
Baroness Northover
My noble friend is right that we are concerned at the lack of engagement by some countries. This is a window of opportunity. There is a programme to try to eradicate polio by 2018. We will all be aware of what an incredible achievement that would be. We are so close. The United Kingdom has been a major donor in this area. In 2011, 9.04% of the contribution to the eradication of polio came from the UK. Gates is a very powerful player here. We are very pleased to see the Secretary-General of the United Nations convening countries to try to ensure that they are engaged, and the key ones to engage here are Nigeria, Pakistan and Afghanistan.
Lord Campbell of Alloway
My Lords, how do the Government intend to implement this proposal? As yet, that is not clear.
Baroness Northover
There is a very clear programme, which the Global Polio Eradication Initiative is taking forward. There is an independent monitoring board, the chair of which is Sir Liam Donaldson, of whom noble Lords will obviously be well aware. There is an effective strategy to deliver this by 2018 but it needs funding. Gates has been extremely effective in leveraging match funding. The United Kingdom, as my noble friend said, looks at match funding. It is important that we engage others in taking this forward, but I assure my noble friend that the programme is there.
Baroness Royall of Blaisdon
My Lords, the Minister rightly spoke of the need to ensure that there is matched funding. What are the Government doing to find and stimulate new sources of innovative finance so that state finance can be used to trigger investment from other sources?
Baroness Northover
The Rotarians might be the kind of example that the noble Baroness is thinking of. There have been a number of match-funded programmes, and we are continuing to look at developing this further. It is extremely important that it is not only the donor nations that carry this forward; there must be engagement in the countries in question. It is encouraging, for example, to see the effort that was put in in India and the current efforts in Nigeria. It is by those countries tackling this, taking ownership of it and ensuring that their communities are responding that we will eradicate this disease.
Lord Skelmersdale
For how many years does vaccination have to continue before polio can be eradicated?
Baroness Northover
One strain of polio has already been eradicated. In India, for example, the last case of polio was a number of months ago, and it will be given a clean bill of health by 2014. Vaccination has to continue for some time afterwards, as the noble Lord will appreciate, to make sure that there are no as-yet-undetected cases. That is built in to the way the programme is being taken forward to 2018.
Olympic and Paralympic Games 2012
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Baroness Doocey
My Lords, I have great pleasure in moving this Motion standing in my name. In doing so, I declare an interest: in the lead up to the Olympic and Paralympic Games, I chaired both the London Assembly and Metropolitan Police committees responsible for monitoring the Games. I also served on the Home Office Olympic Security Board. My focus in this debate will be on the specific legacy promises made when London won the bid to host the Games and not on any other consequence of the Games.
Before the Games started, the doom and gloom merchants had a field day. They predicted that London would lose the bid, the infrastructure would not be completed on time, the transport system would be chaotic and security would be a nightmare. They were wrong on all counts. Yes, there were a few hitches, but they were inevitable in a project of this size. The Games were a huge success and we should pay tribute to everyone who contributed to that success, from the brilliant athletes and volunteers to the wonderful police and military personnel. They all did our country proud.
We should also recognise the enormous contribution of the noble Lord, Lord Coe, who secured the Olympics for Britain, and who, together with the noble Lord, Lord Deighton, John Armitt and Sir David Higgins, proved that we are capable of putting on a show like no one else.
I would also like to pay tribute to the LOCOG and ODA staff, who worked so hard behind the scenes to make sure that everything ran very well. In particular, let me mention the Olympic security team at the Home Office. I can testify personally to the skill and dedication of this extraordinary band of people, who worked tirelessly to anticipate and deal with every conceivable security problem in order to keep us safe.
If the 2012 Games had consisted of nothing more than a sporting event lasting a few weeks, I could end on that very happy note. However, that is not the case. A major reason why London won the bid to host the Games was its promise of a lasting legacy. The Games cost around £9 billion, which would be unacceptably expensive if all we could show for it was six weeks of sport. So, if we wish to honour the promise of a legacy and secure the best possible value for our £9 billion, there remains some serious work to do.
London originally promised in the bid document that,
“the most enduring legacy of the Olympics will be the regeneration of an entire community for the direct benefit of everyone who lives there”.
It is also promised that the Olympic Park will provide local people with significant improvements in health and well-being, education, skills and training, job opportunities, cultural entitlements, housing, social integration and the environment. Those were bold promises, but will they be met? There has been some very good progress to date, but much of the legacy still hangs in the balance and urgent and sustained action is necessary to ensure that London does not fail.
My first area of concern is the sporting legacy for disabled people. LOCOG deserves particular praise for delivering the first fully integrated Games, with the Paralympics as much a part of the games as the Olympics. The result was the most successful Paralympic Games ever, which inspired large numbers of people and did much to raise the profile of disabled people.
However, to provide a legacy for children with disabilities who are being educated in mainstream schools, as most are, we need PE teachers to be appropriately trained, to know what specialist equipment is available and where to get it. These teachers do not currently receive this training automatically but are instead expected to undertake training voluntarily in their own time, which is quite extraordinary. The Government must change this system. They should also make funds available to schools to bring in outside coaches to help.
My second concern is grass roots sport. The Olympics were to be used to encourage more people, especially young people, to participate in sport. The Games have undoubtedly inspired many young people, but the challenge we have is to leverage that enthusiasm, particularly in our schools. The Government abandoned the unrealistic target of using the Games to inspire 1 million people to play more sport but more down-to-earth programmes have succeeded brilliantly. For example, the London Youth Games has helped to get more than 2,000 disabled young people into sport and large numbers of young people to qualify as sports officials.
Unfortunately, most of the sports funding to schools is targeted at secondary schools, where it does the least good. Targeting resources on primary schools would be much more effective as it would encourage young children. If children can find fun and enjoyment in physical activity at a young age, they are much more likely to take an interest in sport when they get older. This funding should also be ring-fenced so that schools cannot spend it on other things, as some currently do.
The other legacy issues I wish to highlight concern the promised benefits to the local communities neighbouring the Olympic Park. This side of east London is one of the most disadvantaged parts of the country. The people who live there were promised better homes, jobs and other amenities, but there are serious doubts about whether these promises will be met. Take housing, for instance. The Olympic bid document promised that up to 50% of the new housing in the park will be affordable homes for rent and sale. When Boris Johnson became Mayor of London he downgraded this to a target of 35% affordable housing, with a minimum of just 20% across the site. In Chobham Manor, the first of five new developments to be built in the park, the plans promise only 28% affordable housing, of which only 21% will be family homes, with the rest comprising small flats. This will miss the promise in the original bid document by more than half and is barely above the mayor’s minimum target.
Given the current difficulties in the property market, there will be pressure to dilute these targets, because developers can make much more money building small flats than building affordable family homes. However, this must be resisted. We must ensure that we do not end up with another Canary Wharf—an island of affluence in a sea of deprivation. The Mayor of London has responded to criticism by claiming that there will be more affordable homes compared with most developments in London and the host boroughs. However, this is disingenuous. The benchmark is the Olympic legacy promise, not other commercial developments.
Another important legacy promise to local communities concerns employment and training opportunities. If these promises are to be fulfilled, it is essential that more stringent measures are taken to ensure contractors provide jobs and training for local people. LOCOG set targets for 7% to 12% of its employees to be previously unemployed and for 15% to 20% to live in the host boroughs. Although these very unambitious targets were met, and exceeded in some cases, it was impossible to tell how many of the beneficiaries were genuine local residents because there was no system in place to verify residency. It is difficult to see how the original target of getting 70,000 previously unemployed people into employment will ever be met. Future contracts for all park venues should enshrine the sort of high standards already set in the park by John Lewis, which employs 950 local people, 250 of whom were previously long-term unemployed.
Local communities were promised the use of all sports venues in the park after the Games, and the mayor originally set a target of 90% community usage. However, he has not put any systems in place to ensure that this becomes a reality. The London Legacy Development Corporation is keen to encourage community usage but is under huge pressure also to avoid any public subsidy. Unless this issue is addressed, there is a high risk that community usage could be sacrificed for commercial profit. In July 2011, the London Assembly’s Economy, Culture and Sport Committee heard from numerous expert witnesses, all of whom said it would be virtually impossible for sports venues to be financially viable without public subsidy. This is an issue that requires open and public debate. The mayor should make 90% community access a precondition for all sporting venue operators.
The £9 billion spent on the 2012 Olympic and Paralympic Games was never intended to provide only a few weeks of sport. It was also to be a long-term investment and the financial bedrock of a lasting legacy. The fate of this legacy is at the mercy of the Mayor of London. He is free to take the easiest option, which would mean giving in to private developers without ensuring that local people benefit from homes and jobs. The result would be a very poor return on our £9 billion investment, and the Government have a duty not to let this happen.
The 2012 Games were a brilliant achievement, but we cannot rest on our laurels. We must constantly monitor progress and hold those responsible to account to ensure that the legacy matches the achievement. London promised a real and long-term legacy. When that has been delivered, we will have achieved a legacy as good as the Games. I beg to move.
Baroness Northover
My Lords, before we move into the general debate, I remind noble Lords that this is a time-limited debate and that Back-Bench speeches are limited to seven minutes. When the Clock hits seven minutes, noble Lords have had their time.
Wales: Economy
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Lord German
To ask Her Majesty’s Government what actions they are taking regarding the challenges faced by the Welsh economy, and how they are ensuring that the Welsh and United Kingdom Governments work closely together in the interests of the Welsh people.
Baroness Northover
My Lords, because the Question for short debate of the noble Lord, Lord German, will now be taken as last business, the time limit becomes 90 minutes rather than 60 minutes. Speeches should therefore be limited to 10 minutes; the speech of the noble Lord, Lord German, remains as 10 minutes and the Minister’s as 12 minutes.
Lord German
My Lords, I begin my speech today by paying tribute to my noble friend the Minister and welcoming her to her new position as well as her first appearance at the Dispatch Box. I hope that nothing that I might say, or that other noble Lords might say, gives her any difficulty in responding to questions about Wales that we pose in this debate.
The economic health of Wales is the most important issue of all facing our country. Jobs, prosperity and the well-being of our people depend upon it, but there are some worrying underlying trends which are holding Wales back. I want to examine those issues today and to look at some potential solutions.
Despite 13 years of a Welsh Assembly, economic performance in the country still languishes at the bottom of the league. There is an overdependence on the public sector, and lower private sector development than is needed to pull Wales up by its bootstraps. In 1989, GVA per head in Wales was 84% of the UK average; in 2009—these are the latest figures available—it was 74%. GDP in Wales in 2010 was 80% of the European average, compared to 111% in the UK as a whole, and in west Wales and the valleys that fell to 68%. In the last quarter, public sector employment in Wales represented nearly 26% of the total workforce, higher than in any other part of Great Britain.
Wales went through its last industrial revolution in the mid and later 20th century, with the virtual ending of coal and heavy, smokestack industries. The replacement was with inward investment companies from around the globe, producing goods for the UK and European markets. That was a difficult transition, but it was a transition. Unfortunately, some of that has remained, but much has moved on to areas of cheaper labour cost. Once again, Wales needs to look for a different pattern of economic development, which is why the UK and Welsh Governments need to work together.
The levers that affect economic change are split between the Welsh Government and the UK Government. Working in different directions would at worst be pointless and could also result in overlapping or duplication of support and effort. By way of example of the split of those levers, we can take employment issues. The Work Programme remains with the UK Government but the Welsh Government provide apprenticeships. Financial support between SMEs is split between some of the banking provision and work that the UK Government do and the small, support grant aid that the Welsh Government provide. On exporting activities, the Welsh Government lead trade delegations, and so do the UK Government; sometimes they work hand in hand, but sometimes they do not. Essentially, the microeconomic and macroeconomic measures that Governments can take are split between two Governments.
We await the report of the Silk commission, which will undoubtedly propose changes to the ability of the Welsh Government to use financial levers. These are crucial, because the Welsh Government will benefit from financial incentives to boost the Welsh economy. I am therefore somewhat surprised that Labour seems to have rejected income tax powers. It is not about the variation of income tax—whether it is 1p up or 2p down, or whatever—but about raising the tax base overall in Wales, which will give the Welsh Government a better income. The more successful that the Welsh Government are in raising the tax base of Wales, the more money they will have to spend on public goods. And it is important that the Welsh Government should have financial incentives to do better; it goes alongside borrowing powers. You cannot use one without the other.
The other issue is the use of European funding. Wales will in all likelihood have a third round of the highest level of European support, subject to a budget which I understand some in the other place are striving to reduce. But there is a need to refocus the use of that European money and concentrate on private sector development—small company growth, new business formations, supply chain support, new financial support mechanisms, exporting, and redoubling the effort that we put into skills development and training. Convergence funding is very likely to continue, because GVA in west Wales and the valleys in 2010 was 68% of the European average, well below the current 75% qualification threshold for the highest level of funding. To measure that against the figure for the UK as a whole, it was 111% of the European average.
The recently published Heseltine report suggested bringing together many structural funds to try to create an armoury of financial weapons, with the ESF, ERDF, the marine and fisheries fund and the European agricultural fund for rural development, so that there could be an organised direction for European funding, particularly to aid the goals of small and medium-sized enterprise growth, skills and training. I would like to know the Minister’s attitude towards the proposed Atlantic strategy, which of course is now in its formation and which would serve the purpose of doing just that for Wales.
Where are the opportunities for the future? Manufacturing is a key Welsh advantage, and always has been in recent decades. In 2010, manufacturing made up 18% of the Welsh economy, compared to 12% of the UK as a whole. The automotive sector, pharmaceuticals and steel production are key areas for development but there is now a need to look at new and emerging sectors where there is an added value and an export advantage. For example, we need to encourage joint ventures between companies from outside Wales and companies with know-how within Wales. There is a need to bring the know-how and the finance together to create wider markets.
As regards research and development, Welsh higher education can and should do more to grab the available funding for innovation. We have really good examples of progress in this area. Some of our universities are to be congratulated on what they have done but we need to replicate that and expand it. Research and development expenditure in Wales represents only 2% of the UK spend in this area and the split in Wales is 46% investment from the private sector and 54% from the public sector. However, the figure is too small in terms of encouraging the innovation and development which companies in Wales need.
Small companies make up 99% of businesses in Wales and represent 43% of all company turnover. Many of them urgently seek credit to enable them to expand, so getting the cash to these companies must be a priority. However, noble Lords will know that small business formation in Wales has gone down each year since 2004. In 2004, some 11,525 VATable threshold companies were created, but only 7,500 were created in 2010. They decreased in number through each of the good years as well as the lean years. Therefore, renewed emphasis on supporting the small business birthrate is needed.
The M4 syndrome whereby people believe that they are doing different things and achieving different purposes must end. There must be a common purpose between the Welsh Government and the UK Government, so perhaps now is the time for a joint task force: not a review or a policy document but a group which can recommend action, support both Governments, suggest new approaches and enable better working together. This could draw on the best brains and build on best practice in all these areas. I believe that a new arena for co-operation is needed. Wales is in need of an injection of new thinking to drive its economy upwards and off the bottom rung. There is more need than ever to work together because not working together will damage the prospects of the very growth which is so needed in our country.
International Development
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Lord McConnell of Glenscorrodale
To ask Her Majesty’s Government whether they will seek to include goals in relation to conflict and security in the successor to millennium development goals after 2015.
Baroness Northover
My Lords, conflict-affected and fragile states are the furthest from reaching the current millennium development goals. Conflict and security are also often overriding concerns for poor people. The Government recognise that a post-2015 framework will need to reflect the particular challenges faced by these countries, and address the root causes of poverty in all developing countries.
Lord McConnell of Glenscorrodale
My Lords, I thank the Minister for her Answer, and I understand completely the Government’s commitment to this agenda. The reality is, however, that in conflict-affected and fragile states, children are twice as likely to be undernourished, babies are twice as likely to die before the age of five, and none of these states is likely to reach any of the millennium development goals by 2015. Will the Government use their position of leadership, as a co-chair of the high-level panel on the post-2015 development framework, to take responsibility for the next generation? Will they ensure that, unlike the previous millennium development goals, the next set of goals for the international community reflect the importance of justice, security and peace, without which there cannot be development in these affected states?
Baroness Northover
The noble Lord is right about how the effect of conflict wipes away development gains. He refers to the high-level panel which the UN set up; the Prime Minister is one of its co-chairs, and it met last week. Given that it is seeking to address the causes of poverty, it is acutely aware that, as he says, no fragile and conflict-affected state will reach any of the MDGs.
Lord Chidgey
Is my noble friend aware that the aid effectiveness forum in Busan launched a new deal for fragile states, to give voice to the 1.5 billion people who did not benefit and are not benefiting from the MDGs? What position is the United Kingdom taking on the new deal’s five peacebuilding and state-building goals—the PSGs—which are quite separate from the MDGs?
Baroness Northover
My noble friend will be aware that my right honourable friend the previous Secretary of State for International Development was instrumental in trying to ensure that the peacebuilding and state-building goals were addressed at Busan. The current Secretary of State is taking this forward. We are very strongly in support of what was decided at Busan, and in fact, we are already taking this forward in South Sudan and Afghanistan, and are applying the principles in other countries as well.
Lord Anderson of Swansea
My Lords, do the Government believe that democracy and the rule of law should have a higher role and profile in the new goals?
Baroness Northover
We are at the beginning of working out how to take forward millennium development goals that will be signed up to internationally. However, I note that the UN task team that is considering what might underpin this is looking at social development, inclusive economic development, environmental sustainability, and peace and security. It is well understood that justice, fairness and security are all important in underpinning the relief of poverty.
Lord Hylton
My Lords, are non-recognised entities in the former Soviet Union and other special areas such as the Gaza Strip or ethnic minority regions of such countries as Burma and many others receiving their fair share of aid and technical assistance?
Baroness Northover
I may need to write to the noble Lord with details but I assure him that, as I think he knows, a great deal of United Kingdom assistance goes to support the people in Gaza.
Baroness Nicholson of Winterbourne
Following the Minister’s most helpful answers and given that not one of the conflict-ridden and sensitive countries has reached a single millennium goal, will the Government consider recommending to the United Nations that for those countries the single millennium goals in place now be retained rather than put something more complex in place which they would never reach?
Baroness Northover
There is a strong argument for keeping the current MDGs. They have been a great international focus and have done a great deal to relieve poverty around the world, get children into education and so on. I am somewhat sympathetic to that. However, these are to run until 2015. The important thing now is to build on the progress that has been made, carry forward the things that work well and learn some of the lessons of those MDGs: for example, universal education for children does not necessarily mean that those children in schools are actually learning something. All those things need to be addressed. However, my noble friend is right: we have to build on what has already been set in place.
Baroness Kinnock of Holyhead
My Lords, the Minister will, of course, be aware that women face disproportionate disadvantage and discrimination and that they are behind in all the development goals, especially in conflict-affected and fragile states. Will the Government call for a new post-2015 stand-alone goal on gender inequality and a specific target on violence against women and girls?
Baroness Northover
The noble Baroness is quite right about the disproportionate effect on women and girls. She will know that of the eight current MDGs, gender equality is the third and maternal health is the fifth. Given that the groups are looking at the causes of poverty and noting the disproportionate effect, as she has, I would be astonished if gender equality did not run right the way through any replacement of these MDGs.
Ingram National Park Visitor Centre
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Lord Walton of Detchant
To ask Her Majesty’s Government why the Department for Environment, Food and Rural Affairs has decided to close Ingram National Park Visitor Centre in the Breamish Valley in Northumberland.
Baroness Northover
My Lords, the Defra grant for the Northumberland National Park Authority this year is £2.9 million. It is for individual parks to decide on their spending priorities. The Northumberland National Park Authority has decided to close this centre as part of a wider review of all its visitor services.
Lord Walton of Detchant
My Lords, I thank the Minister for that disappointing reply. Is she aware that this well appointed centre, situated in an area of outstanding natural beauty, provides not only excellent car parking but the only public toilets for miles, a delightful woodland walk and a series of superb displays highlighting the history, geology, flora and fauna of the Cheviot area, displays of great educational value? Will she try to persuade Defra to think again and to try just a little harder to save this invaluable centre?
Baroness Northover
My Lords, I remind the noble Lord that it was not Defra that made this decision but the Northumberland National Park. It is of course of great regret to us when such closures take place. The park is working very closely with the Ingram village hall and the displays that the noble Lord mentions will in fact be moved there, as I understand it, so that they are still available to people. The park is also offering additional information points in local businesses such as shops, pubs and community centres. There will also be additional services offered by the park rangers. I would point out that on Hadrian’s Wall the park will have the great advantage of a new centre, The Sill, which is getting Heritage Lottery Fund money. It will become a major centre there and the noble Lord may wish to visit it.
Baroness Maddock
My Lords, although there has been a consultation going on about this, and indeed about the centre in Rothbury, for nearly two years, is my noble friend aware that the final decision came as a great shock to many local people? Is she further aware that the Liberal Democrat-run county council has been extremely successful in reinvigorating the tourist information centres? I hope that, like me, she is rather surprised that the national park has not been able to reach a partnership working arrangement with the county council. Can she further tell me whether other national parks have closed visitor centres?
Baroness Northover
I have no evidence that any other centre in a national park has been closed. I have had a look at the tourist centres across the county. The noble Baroness is quite right that there are a number of other such centres, which are obviously very welcome. One would hope that they would work closely with the national park in this regard. The chair of the authority has not closed the door. He said:
“We are looking very hard at alternative ways of providing an effective visitor information service and have not closed the door to any new suggestions people may … put … to us”.
Therefore, I suggest that the noble Baroness gets in touch with him.
Lord Naseby
My Lords, I have not been to the visitor centre in question, but is this decision not very strange at a time when we are promoting tourism in this country, when local and public money has been put into the centre over quite a long time and when there are also facilities available from the Heritage Lottery Fund and other similar bodies? I went to a celebration—and indeed gave a speech, as your Lordships will understand—at the Cromwell Museum in Huntingdon. That is kept going by the joint activities of local people and Cambridgeshire County Council. Perhaps a second reflection might be appropriate. I hope that the Minister will be in a position to push this forward herself.
Baroness Northover
I am sure that the authority will be looking very closely at what noble Lords are saying today and seeing what can be done to take this forward. This was a small centre, as I understand it, with two members of staff. The much bigger one is on Hadrian’s Wall. As I say, that is going to be added to and will become a centre of national significance. I am extremely pleased that that has been possible at this time.
Lord Judd
Amid the plethora of new planning regulations and the rest, will the Minister assure the House that right across Government in all departments there is a commitment to the national parks because of their vital contribution to the spiritual and physical well-being of our nation, particularly our young people?
Baroness Northover
The noble Lord is quite right and I invite him to have a look at the website for this park and see exactly what it offers. With regard to the commitment, I point out that the park was given just over £3 million last year and this year it has been given £2.9 million, so that is not a huge reduction in what is going to the park. We are fully committed to supporting the national parks. We know how important they are.
The Lord Bishop of Wakefield
My Lords, having been last week in both the Ingram valley centre and indeed the Rothbury centre, as I often am, I was appalled to think that there will effectively be no human face anywhere in the northern part of the Northumberland National Park. The place at Once Brewed on Hadrian’s Wall is something like 75 miles away and will do nothing to ensure that there will be anyone there to welcome people. Although the amount of money reduced seems small, it disproportionately affects the operations of the park, which is the smallest national park. Will the Government please think of ways of trying to assist the national park in rethinking this decision in order to have a human face somewhere in the northern part of the park to welcome people?
Baroness Northover
I remind the right reverend Prelate that how the national park decides to spend its resources is not a decision for Defra. I am sure that the national park will be listening. As I say, it is working closely with the Ingram village hall committee to try to ensure that information is available and it is doing a number of other things. I was also incredibly impressed by the number of volunteers who were involved in this park, as with others, and it may well be that some work needs to be done to try to see how that can be brought forward to make sure that there is the kind of coverage that the right reverend Prelate refers to.
Baroness McIntosh of Hudnall
My Lords, I thought that the Minister told the House that the funding for this park was being reduced from £3 million to just short of £2.3 million.
Baroness Northover
I would like to clarify that last year the figure was over £3.1 million, this year it is £2.9 million and next year it will be £2.7 million. I realise that that is a reduction, but it is for the national park to work out how it is going to prioritise things.
Local Government Finance Bill
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Baroness Northover
My Lords, I beg to move that the House do now adjourn during pleasure to enable an exchange of messages with the other place and Her Majesty the Queen. I hope that we will resume in 30 minutes for the signification of Royal Assent.
Treatment of Homosexual Men and Women in the Developing World
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Baroness Northover
My Lords, I thank my noble friend Lord Lexden for introducing so effectively this important debate on the treatment of homosexual men and women in the developing world. We have heard from him, the noble Lord, Lord Black, and others the terrible circumstances that many homosexual people face across the world.
I am glad that we have given sanctuary to Toby, whose terrible case my noble friend Lord Lexden cited, but I recognise that he can never fully recover from his appalling experience. I hear what my noble friend Lord Lester has said about religious fundamentalism and how this may be becoming worse. I welcome the right reverend Prelate the Bishop of Leicester’s statement that discrimination is “an affront” to Christian values. I welcome his clear condemnation of such discrimination. I also commend the work of the Human Dignity Trust, Kaleidoscope and other organisations that are working to address these issues internationally.
We are talking about people who are often scared to be who they are. In many cases they conceal their sexual orientation or gender identity from their family, friends and societies. They often rightly fear victimisation, violence, detention, imprisonment and even death, simply because of who they are.
We are absolutely clear that human rights are universal and apply equally to all people. The Universal Declaration of Human Rights 1948 affirms as much, but we hear from my noble friend Lord Lexden and others how these rights are breached. However, I can confirm to the noble Lord, Lord Lester, that criminalisation of homosexuality is clearly a violation of international law. We have strong commitments both to international human rights and to international development. Development cannot be achieved without respecting rights, and my noble friend Lady Jenkin is right to link those.
UK aid is used to promote an environment in which all people can claim their rights in open societies. We look for ways to ensure that people who are marginalised or excluded for whatever reason, including sexual orientation, can access the information, service and resources they need to lift themselves out of poverty. It is often those people who are at the risk of human rights abuses in developing countries who need our help the most. In 2011—various noble Lords referred to this—we strengthened our partnership principles. These require that before providing direct support to Governments, we assess their shared commitment to reducing poverty, respecting human rights, improving public financial management, fighting corruption and being more accountable to their own citizens.
The noble Lord, Lord Smith, noted the actions taken in Malawi. Recipients of aid are aware of the pressure in relation to human rights, and I hope that that is also reassuring to the noble Baroness, Lady Jenkin.
The noble Lord, Lord Collins, asked about the assistance that we provide to support the development of relevant movements world wide and what we do to encourage charities to support these movements. As other noble Lords, including the noble Baroness, Lady Nye, and others, have noted, civil society plays an important role in supporting the rights of homosexuals in developing countries. We provide targeted support to locally led groups so that they can tackle discrimination and support communities in accessing the resources and services that they need. For example, through a £52 million partnership with the International Planned Parenthood Federation, we are supporting members of the LGBT rights organisations in improving access to health services.
The noble Baroness, Lady Nye, was right that it is very important to support groups in civil society, but she pointed out the difficulties of being, as it were, heavy-handed—a point reiterated by the noble Lord, Lord Collins. Clearly, working internationally to ensure the recognition of human rights law is very important, although I heard from the noble Baroness, Lady Nye, that that can be counterproductive. She also asked what we are doing to challenge these countries. Obviously, how we approach this matter varies from country to country.
Noble Lords have heard what is happening in Malawi. I point out that we have raised our concerns about the Bill in Uganda at the most senior levels. The former Minister for Africa raised this when he met President Museveni in March and he did so again with the vice-president in August. We have also raised our concerns regarding the Bill in the Ukraine, and that has been reiterated through the EU. In Ethiopia, Lynne Featherstone, my honourable friend in the Commons, has raised this issue with the former Prime Minister. In Russia, we have made it clear that legislation is incompatible with Council of Europe guidelines.
My noble friend Lady Brinton asked about Somalia and Sierra Leone. In relation to Sierra Leone, the principle of human rights will kick in because that country has just received the last tranche of budget support. Therefore, human rights provisions will be applied if and when more money is sent through.
If I miss out anything, given the number of issues that noble Lords have raised, I shall write to them.
The noble Lords, Lord Rea and Lord Fowler, raised the issue of HIV/AIDS and the stigma attached to it, as well as the difficulty that people have accessing the care that they need. Both noble Lords will be aware that the United Kingdom is strongly supporting the funding of the International HIV/AIDS Alliance. We are acutely aware of the particular challenges that homosexuals face in this regard. Alan Duncan, the Minister of State, announced in July new DfID resources for the Robert Carr fund, supporting global and regional networks to improve HIV responses reaching key populations.
My noble friend Lord Lester asked whether the Government are considering joining, as a partner Government, the Global Equality Fund. We are impressed by the model of the Global Equality Fund. We are not currently considering supporting it but we are funding work that complements the fund. When I was briefed on this, I was particularly pleased to hear about the support that we are giving to a four-year programme at the Institute of Development Studies at the University of Sussex to strengthen effective policy options on sexuality, poverty and law. This is the biggest programme of its kind that we know of, and the UK is putting £1.25 million into it. That is a very welcome development.
We support country-level funding for LGBT programmes and groups, as well as providing opportunities to access funding through the FCO’s human rights and democracy programme. Noble Lords, including my noble friend Lord Lester, asked me about that.
Clearly, this is a major challenge and despite the work we are doing, we do not underestimate the huge amount that still needs to be done. The UK is working internationally, as I have mentioned. It plays a key role in building support through a number of international organisations, including the United Nations, working towards global decriminalisation of homosexuality. We also work with EU partners, which is increasingly important in this area. EU member states and the European External Action Service have committed to develop a strategy on co-operation with third countries on the human rights of LGBT persons, including working through the UN and the Council of Europe. We are determined to contribute fully to a robust and effective EU strategy in this regard.
We are also pleased that the refreshed Canada-UK joint declaration, signed by our two Prime Ministers and by the Foreign Secretary in September, now includes a commitment that we will work together to continue to press countries around the world to repeal aggressive and punitive laws criminalising homosexuality, which are incompatible with human rights.
My noble friends Lord Lexden, Lord Lester, Lord Black and others mentioned the Commonwealth. We are hugely encouraged to hear that Commonwealth Foreign Affairs Ministers, at their meeting on 29 September, agreed the Commonwealth Eminent Persons Group recommendations that access to treatment for HIV/AIDS should be without discrimination and that discriminatory laws that impede access to treatment should be addressed. As a valuable partner in promoting human rights globally and in helping to deliver UK human rights priorities, we are committed to working with the Commonwealth to help them to uphold the values of human rights.
The Commonwealth modernisation agenda for 2012 includes the delivery of a charter for the Commonwealth which reflects its core values, including strengthening language on opposing discrimination on all grounds, which would cover this area. I can assure my noble friend Lord Lester and others that our embassies and high commissions around the world also play an important part in this regard. I know that the Department for International Development is seeking opportunities to promote human rights, including in this area.
My noble friend Lady Barker flagged up an interesting point. The FCO travel advice includes guidance specifically on the situation for LGBT people in relevant countries. It may be that some of that information might be used to good effect in the way that she suggests.
The noble Lord, Lord Collins, is right: we are united on this. The UK has an important role to play in international efforts to promote tolerance and non-discrimination against homosexuals and to address discriminatory laws. This debate has been an important reminder of how this is indeed a case of human rights and individuals’ ability to live their lives free from poverty or fear.
EAC Report: Development Aid
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Baroness Northover
My Lords, I start by thanking the Economic Affairs Committee for undertaking this investigation, and for the debate this evening. I found the evidence that it received and the evidence sessions extremely informative and interesting, even though this amounted to 700 pages of reading this weekend. I strongly recommend that Members of this House do as I did, as I am not entirely sure that I would have reached the same conclusions on the basis of this material.
As a former academic, I am glad that I went back to the original material to see how the Select Committee reached the conclusions that it did. While many of the cogent points put by the noble Lords, Lord Stern, Lord Hannay and Lord Crisp, and other noble Lords, are indeed woven through the evidence taken by the Select Committee—and I find it persuasive—so too are the challenges, which are especially strongly flagged up by the committee in its report.
I welcome all the contributions to the debate tonight. It is, of course, absolutely vital that we are kept on our toes and that we achieve the very best value for the assistance that the United Kingdom offers through its aid budget. As the right reverend Prelate the Bishop of Leicester, the noble Lords, Lord McConnell, Lord Phillips and Lord Roberts, and other noble Lords have argued, there is a moral case for aid. There is also the case that it is also in our interests.
I agree with the Select Committee, and many contributors to its sessions and to the debate today, that economic growth is the only sustainable road to poverty reduction. It is surely right that sustainable growth is central to our development agenda. However, it would be a gross oversimplification to reduce the role of aid in growth to simply the transfer of money. Growth surely depends on creating the conditions for wealth creation, as other noble Lords have said. I argue, as other noble Lords have done in this debate, and as many did in their evidence to the Select Committee, that aid can and does play a role in building the institutional capacity of Governments, improving the policy environment, strengthening the macroeconomic conditions and providing key public goods that underpin other drivers of growth. We know that those who are looking to invest, for example, in various African countries are indeed looking at these areas.
The noble Lord, Lord MacGregor, mentioned foreign direct investment. That often follows improvements in the human development index. Of course, as the noble Lord, Lord Tugendhat, said, there is a range of drivers for development. We know that. We also recognise that economic growth in the developing world is not only good for poverty reduction but good for Britain. It is this growth that will build our trading partners of tomorrow. In 2011, the UK’s exports of goods to China and India were worth £15 billion to our economy.
Poverty is closely linked to conflict, as Paul Collier and others have said in their evidence, and it is in all our interests to reduce such conflict. I agree with the noble Lord, Lord Lawson, on this point when he said that policies must be judged by their outcomes. That is what this is all about.
The committee has argued that the evidence that aid makes a contribution to growth is inconclusive. The noble Lord, Lord Stern, said with stunning clarity just how one can evaluate aid and what effect it has. If you read the material submitted to the committee, you will see much support for that position. It seems to me that sustained rapid growth in developing countries has only occurred in the context of impressive rates of public investment in infrastructure, education, and health. In low-income countries, aid plays an important role in helping to deliver these.
Our aid is very much focused on the very areas identified by the committee as being important for growth. DfID invests significantly in the legal, institutional and macroeconomic environment, human capital, and infrastructure, increasingly in collaboration with the private sector. For example, we know that education matters, and that educating girls matters even more. I can assure my noble friend Lady Hussein-Ece and the noble Lord, Lord St John of Bletso, that we put women and girls at the centre of our policies. Educating girls is intertwined with all aspects of the development process—social, political, and economic—as well as being an end in itself. Its effects last across generations and enable changes in development paths, shaping societies and institutions to allow for long-run change. In Kenya, for example, where women have been educated in a household, the family is more likely to hold bank accounts. Therefore they are better able to participate in the economy. It can be seen that where family size is reduced, as my noble friend mentioned, more girls are in education and the family is more prosperous, which contributes to the prosperity of the community and the society.
Honouring our commitments to the world’s poorest to spend 0.7% of our gross national income on ODA simply does not prioritise the amount of aid spent over the results achieved, as the noble Baroness, Lady Royall, has also reiterated. There are huge disparities of wealth across the world, and the figure of 0.7% has served over the years to galvanise action and responsibility. I thank the noble Earl, Lord Sandwich, and others for their congratulations on our being on course for meeting 0.7%. My noble friend Lady Jenkin rather put it in context with the comparison with expenditure on cosmetics.
DFID’s focus on improving results and delivering value for money has intensified, and is entirely consistent with the increased budgetary allocation. The landmark bilateral and multilateral aid reviews moved the focus of development evaluation away from inputs and towards results. That applies not only to DfID’s spending but also to spending by our partner agencies. In this context, I say to my noble friend Lady Falkner that the multilateral aid review put the Commonwealth Secretariat into special measures and we are closely monitoring its progress against clear recommendations on what is required for it to be effective. That is how things should be.
Our commitment to spending 0.7% of our GNI on aid also provides an example to others to do likewise. Of course, as my noble friend Lord Shipley says, it is not an end in itself; it never has been. As we are meeting our aid commitments, we are able to lead by example and hold others to account for meeting their commitments too. A recent appeal to increase Germany's aid to 0.7%, signed by 372 members of the German Parliament, explicitly cited the UK Government's commitment as a positive example to follow.
Of course there are other sources for funding, such as remittances, which we have heard about. Of course we welcome the arrival into the field of philanthropic foundations such as the Gates Foundation. Maybe it would have been good to invite them to contribute to the Select Committee's deliberations. If ever there were an organisation that is about the levering effect, monitoring exactly what results may flow from inputs, it is the Bill and Melinda Gates Foundation, with whom we work very closely and who express great admiration of what DfID does.
I note with some interest and slight amusement that various speakers had very good suggestions for how our aid budget might be spent and expanded; for example, the noble Lord, Lord Lawson, suggested the education of students from developing countries, and the noble Lord, Lord Boateng, mentioned health, science, technology, innovation and the British Council, although I note that the budget has almost doubled there and DfID has just appointed a head of innovation. It seems that noble Lords have countered the Select Committee’s implicit case that perhaps too much is being spent on aid—as did many of those who gave evidence.
Over the long term, poverty will increasingly be concentrated in fragile states. The noble Lord, Lord Hannay, and others emphasised how important it is to support these countries. It is no coincidence that no fragile state has yet achieved a millennium development goal. Engagement with fragile states undoubtedly comes with additional challenges, as my noble friend Lord Phillips and others have said. However, to leap from that to a conclusion that we should not be working in these contexts would be to misunderstand the relationship between risk and return. These circumstances are precisely the ones where the return to aid spending can be highest, especially when we consider the long-term costs of non-engagement, whether that be in terms of immigration or threats to our national security.
Noble Lords heard of the risks but also the rewards of working in these states, and it is important to note the reduction in conflict in Africa over the past 20 or 30 years as development has taken place. In that regard, I dispute one of those who contributed evidence to the Select Committee who seemed to argue that aid promoted conflict.
In its 2004 report, the UN High-Level Panel on Threats, Challenges and Change, of which the noble Lord, Lord Hannay, was a leading member, noted this interconnectedness. It commented:
“Development and security are inextricably linked. A more secure world is only possible if poor countries are given a real chance to develop. Extreme poverty and infectious diseases threaten many people directly, but they also provide a fertile breeding-ground for other threats, including civil conflict. Even people in rich countries will be more secure if their Governments help poor countries to defeat poverty and disease by meeting the Millennium Development Goals”.
As my noble friend Lord Phillips said, fragile states present challenging circumstances. That is why these countries are poor and that is why we need to work with them.
Noble Lords spoke of cross-departmental working. Sometimes I think that I personally am joined-up government—DfID, Defra, DCMS, DH and so forth. However, I hope that noble Lords will be reassured about the co-operation that is occurring. It is clearly far more cost-effective to work with the Foreign Office and the Ministry of Defence to counter potential sources of instability early on than to deal with the consequences later. That is why the tri-departmental Conflict Pool effectively combines expertise to deliver value for money. I want to point out that £742 million of ODA was spent by other departments, including DECC, DH, DCMS and Defra as well as the FCO and MoD, and that DfID has a joint policy on trade with BIS.
From the start of its inquiry the Select Committee flagged fraud and corruption and of course it is right that it did. We will face risks of fraud and corruption and we will not tolerate corruption or misuse of taxpayers’ funds in any form. These risks are faced not only by DfID but by every citizen and entrepreneur surviving each day in these environments. It is, of course, a brake on their ability to lift themselves out of poverty, and that is why it is extremely important that this is systematically addressed. DfID has put in place systems and procedures that enable it to manage risk, deliver results and achieve value for the taxpayer despite the additional challenges of working in fragile states. We will continue to build on what has been learnt and, through transparency, audit and other checks, drive this forward.
The Government have put transparency at the centre of our aid agenda. In answer to my noble friend Lady Falkner and others, we are working to deal with illicit capital flight as part of the G20 Anti-Corruption Working Group, and implementing the Bribery Act 2010. Just this month, the Publish What You Pay fund released its second Aid Transparency Index, which ranked DfID first among 72 aid-spending organisations worldwide. The Independent Commission for Aid Impact has been put in place to monitor UK aid impact and effectiveness. It does not answer to DfID but to Parliament through the International Development Select Committee. It is now bedding in and is making a useful impact, as other countries acknowledge, and we will learn from its work. Having more people see how we make decisions and where we spend money is a crucial plank in achieving better development results, and Britain is leading the way on this. My noble friend Lord Shipley asked about the audit of multilateral aid. I can assure him that this was a major consideration of the multilateral aid review.
When we think about aid, we must understand that healthier, better educated societies are attractive to the investors that drive growth and can deliver a sustainable end to poverty. Aid can and does help in the delivery of these prerequisites, and we should not recoil from doing so in the fragile states where they are most lacking. The UK delivers aid well. We are a global leader in the field of development—here I thank my noble friend Lord Tugendhat and others for making the point—and abiding by our international commitment to 0.7% will serve to strengthen this position.
Perhaps I can be extremely clear. First, our aid makes critical contributions to achieving the conditions necessary for the growth that can end poverty. Secondly, meeting our commitments to 0.7% will not compromise the quality of our aid. Thirdly, what we are buying with UK aid spending represents exceptionally good value for taxpayers. The noble Lord, Lord Hannay, flagged up the MDGs, the goals for the relief of poverty largely drawn up by our colleague, the noble Lord, Lord Malloch-Brown. The whole world now knows about the significance of these goals and they have spurred action, just like the 0.7% target. As the noble Lord, Lord Stern, and others have said, they have focused attention. Not enough progress has been made against them, but quite a considerable amount has. It will be a challenge to take the goals forward, given the spotlight that so many countries now place on them. However, we are determined to do so, and transparency and accountability will be integral to that. I look forward to future discussions as to how it is taken forward. Aid is not static, and I too pay tribute to Andrew Mitchell for his forensic focus and his emphasis on the role of private investment, which has been key. Assessing whether countries should “graduate” away from aid resulted in a dramatic reduction in the number of countries being assisted. That process will continue, and the growth in Asian countries, I can assure my noble friends Lord Bates, Lord Tugendhat and others, we note. Of course, in some states it is necessary to work through NGOs, as the noble Lord, Lord Hollick, would wish, but NGOs are not necessarily themselves incorruptible. We have to be vigilant in whatever way we act.
In conclusion, we welcome the Select Committee’s report. We do not agree with all of its conclusions, as noble Lords will have gathered, but it is right that the committee should challenge us to say why we are doing what we are doing. I think that most noble Lords in this debate agree that the work that DfID does is of exceptional importance and I thank them all for their support in this work.