International Development (Official Development Assistance Target) Bill

Debate between Lord Davies of Stamford and Lord Tugendhat

Friday 27th February 2015 Lords Chamber

[Lord Tugendhat (Con)]

My Lords, the Minister will recall that at Second Reading and in Committee I stressed my support for the aid programme and that I have also supported the 0.7% target. The points made by my noble friend Lord Forsyth and the noble and gallant Lord, Lord Stirrup, are central to the debate we are having. Although I and other colleagues doubt the wisdom of guaranteeing a particular share of the national budget to one particular spending programme for exactly the reasons that the noble and gallant Lord, Lord Stirrup, emphasised, the Government are arguing that that is the right thing to do in the case of this programme, as distinct from any other, partly because of its international nature, partly because of the commitments we have entered into, partly because of their belief that we would be setting an example to other people and partly because of their belief that others will follow that example.

Given that that is the Government’s position, the Minister owes it to the House to explain why what is sauce for the development goose is not sauce for the defence gander. I recognise that she is not a member of the Conservative Party, but she is speaking on behalf of the Government in this House and the Prime Minister, who leads the Government of which she is a member, has been emphasising very strongly in recent days the importance of other nations following our example in relation to the 2% target set for NATO. We have recently received evidence that the British Government may not be able to meet that target next year. If this idea of setting targets and guaranteeing a share of national expenditure is so important in one field, the Minister must be able to argue, for the reasons set out so eloquently by my noble friend Lord Forsyth and the noble and gallant Lord, Lord Stirrup, why they should not apply in the case of defence.

I hope she will also be able to accept that while the problems of the developing world are of a continuing nature, problems in the case of defence wax and wane, and at the moment, when we look at what is happening in Ukraine and the Middle East, problems in the defence sphere are certainly waxing. Therefore, if the Government are going to be able to defend on a rational basis the reasons why they are privileging the development budget in his way, it is essential that they are able to explain why they do not wish to do so for defence. I know defence is not the Minister’s department, but she is proposing this Bill and doing so on a particular set of grounds which apply to the defence area, where we are also committed to a particular target.

[Lord Davies of Stamford]

My Lords, the noble Lord, Lord Forsyth, invited me to be consistent in my attitude towards this amendment and the first amendment we debated this morning. I think it might have been a slightly rhetorical invitation, so I will probably surprise him when I say that I propose to be exactly that. The way in which the amendment is worded, making public expenditure in one department a function of public expenditure in another, is a rather peculiar way to go about managing public expenditure. I rather doubt whether the noble Lord and his colleagues, including my noble friend, plan to put this amendment to the vote, but I certainly share the aspirations and inspiration behind this initiative.

Earlier, I said, and I stand by it, that one of the two major points of this Bill is to set an example in the world and therefore to achieve something of a leverage effect so that, where we spend more money, we may succeed in persuading others to spend more money in the same way and the same direction and thereby greatly promote the cause we have in mind. That applies, in my view, to the 0.7% target in international aid. It would also apply in the case of the 2% of GDP defence spending target that NATO has formally adopted. As the noble and gallant Lord, Lord Stirrup, just said, that is the only other field in which such an international target exists.

Middle East and North Africa

Debate between Lord Davies of Stamford and Lord Tugendhat

Monday 14th February 2011 Lords Chamber

[Lord Tugendhat]

My Lords—

[Lord Davies of Stamford]

My Lords—

Loans to Ireland Bill

Debate between Lord Davies of Stamford and Lord Tugendhat

Tuesday 21st December 2010 Lords Chamber

[Lord Tugendhat]

My Lords, like other noble Lords who have spoken, I applaud the Government’s decision to offer Ireland a loan, and I also applaud the manner in which it was done. I do not agree with the noble Lord, Lord Davies of Stamford, that it was grudging or anything of that nature. I rather agree with the noble Lord, Lord Bew, that the Irish reaction has shown that they recognise that this was done in a full-hearted and generous fashion, and I am very pleased about that. It was done without strings, it was done quickly and the Chancellor of the Exchequer was quite right to emphasise that it was done in the British interest. Britain and Ireland are two neighbouring countries, their economies are very much bound up with each other, what is good for Ireland in terms of prosperity is good for Britain, and it is right that this should be recognised. Others have spoken of the extent to which Ireland is a major export market, of the way that the economies of Northern Ireland and the Republic are very much bound together, of the number of British companies that operate in the Republic and, of course, of the exposure of British banks, especially the Royal Bank of Scotland, to the Irish financial sector. In helping Ireland, the Government are not diverting money from worthy causes in the United Kingdom, but are acting to safeguard British jobs, British interests and British taxpayers’ money. The sooner Ireland can return to prosperity, the better for us that will be.

I got the impression, but perhaps I am wrong, that the Minister felt that the measures that have been taken would secure that. I hope he is right, but I have to say that I am not so sure. I feel that further pain may be on the way and that some of the pain may be felt by private lenders. That remains to be seen, and I certainly hope that the measures taken by us and by the other participants in the rescue operation have the desired effect. Like the noble Lord, Lord Bew, I see this very much in the context of the Anglo-Irish relationship, both present day and historical.

There are some who suggest—it may even be that the noble Lord, Lord Pearson of Rannoch, will express this view—that because Ireland is a member of the eurozone, and we are not, we should somehow stand aloof from it. I think that is absurd. The Prime Minister and the Chancellor of the Exchequer, as well as the Minister this evening, have repeatedly said that it is in Britain’s interest that the eurozone should be a success. Of course, that does not mean that we have the same responsibilities towards each other as the members of the eurozone, but it does mean that we should recognise the nature of our links with it and the existence of our exposure to it. We are not an offshore island in that sense with a financial system separate and distinct from that of our European neighbours. The whole apparatus of British financial services and the City of London as a great international centre are intimately bound up in the wider European financial system. They are, of course, intimately bound up in the global financial system, but most intimately and most directly they are bound up within the European, and through the European, in the global financial system. The two are not mutually inconsistent. This has been a great source of profit to the United Kingdom. It continues to be so, and Mayor Boris Johnson never ceases to point out the benefits that accrue to London as well as to the United Kingdom.

It is very much in our interest that we should participate, but I part company from the noble Lord, Lord Liddle, so far as the permanent mechanism is concerned, and I find myself much closer to the position of the Minister. As I said, we do not have the same obligations and responsibilities to the members of the eurozone as they have to each other, so I feel it is right for us not to sign up to something that would involve us in a permanent obligation. I do not mean by that that we would necessarily wish to stand apart on some future occasion. We might, or we might not. I felt that the noble Lord, Lord Liddle, drew too much on the Irish example. Our relationship with Ireland is quite different from our relationship with any other European country. However, I can well imagine that circumstances might arise—

[Lord Davies of Stamford]

It is not surprising that as a man of the world and a former European commissioner, the noble Lord is not someone who is so foolish as to want to exclude any possibility in the future and lose flexibility, but does he not agree that if we are not part of the permanent mechanism, we will not be part of the conversations, we will not be part of the analysis and we will not be part of the decision-making mechanism? We might have the opportunity to come in later on to a deal that has already been put together by others or to try to find some bilateral solution in the face of a much bigger multinational arrangement, but surely that is not a very sensible way of conducting our country’s affairs.

[Lord Tugendhat]

No, I do not agree with the noble Lord. He draws too clear a distinction between membership and non-membership. I do not want to get diverted, as others have, from the main theme of my speech, but I think that Britain is a substantial member of the European Union. Therefore, conversations do not take place in one room with Britain being excluded entirely. People need to know what Britain is thinking and there has to be a certain interchange.

There are people who thought that if we did not join the euro, we would somehow be excluded from a lot of discussions. There are certainly discussions in which we do not take part and it may be that Ministers are rather relieved sometimes that they do not have to. But Britain is too big an entity to be entirely excluded and only brought in at the end of the discussion when everything has been decided. If Britain is to play a role in a future crisis, people will want to know beforehand what our attitude is likely to be, how far we might be able to go and under what terms we might be able to participate.

That brings me back to my line of march. When perhaps future problems arise, we should look at each of them and take a decision on their merits—certainly recognising our considerable interests in the eurozone; certainly recognising the importance of our membership of the European Union; and certainly recognising our interests in the political stability of different countries. But we should look at these things on their merits, decide our position on each one as it comes along and ensure that the decisions we take are subject to parliamentary approval. We are much more likely to carry confidence in the country and have support from the electorate if we are seen to do it on the merits, rather than if we are seen to have signed up to a certain automaticity.