Commonwealth Development Corporation Bill

Debate between Stephen Doughty and Paul Scully

Programme motion: House of Commons & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 10th January 2017 Commons Chamber

[Paul Scully (Sutton and Cheam) (Con)]

Thank you, Madam Deputy Speaker. I am grateful for your generosity in allowing me to contribute for a short time.

The CDC has a really important discrete role in our international development portfolio. There are few organisations with the skills and abilities to manage such risk in the most difficult markets. Often, it will bring an economic frontier country, area or sector the opportunities leading towards a risk profile that more established and traditional investment vehicles can get involved in. That is to be welcomed. It supports more than 1,200 businesses in more than 70 developing countries to create jobs.

We discussed a number of issues in Committee, including the fact that investments are not necessarily direct. Amendments tabled both in Committee and on Report address whether that serves to divert resources from the least-developed countries. I would say that it is sometimes necessary to invest in opportunities in other countries as long as the outcomes go to the most needy and the least-developed countries. At the end of the day, that is what we are trying to do with our international development effort.

As many Members have said, it is important to concentrate on our core goals and the SDGs. In Committee, the Minister was explicit in saying he did not believe we needed more legislation. The International Development (Official Development Assistance Target) Act 2015 already enshrines in legislation the need to focus on poverty reduction and the SDGs, and they are already enshrined in DFID’s own principles and processes, so I do not believe that we need to have yet more primary legislation.

On the limits referred to in relation to some of the amendments, we have to remember this is effectively an enabling Bill, which is why it is so short. It is not an immediate call to spend. It is not a case of saying, “Here’s £6 billion tomorrow and then we’re going to raise it further the day after.” The Bill simply seeks to bring the CDC in line with other organisations that have similar requests of Departments. In Committee, the Minister said that any requests for money would have to be subject to DFID’s strategy and have to have a robust business plan that was considered fully before any money was handed over. That can easily be done on a departmental level. I totally agree with my colleague and Chair of the International Development Committee, the hon. Member for Liverpool, West Derby (Stephen Twigg). As a new Member, I look forward to being able to scrutinise the work of CDC.

I note that the CDC has changed. I agree with my hon. Friend the Member for Bedford (Richard Fuller) that some amendments address problems that may not occur or rehearse old problems from before 2010 when the then Secretary of State reorganised the CDC. I do not support amendments on problems that may or may not happen, or have happened in the past but have been largely sorted out. The CDC has moved from pre-2010 looking at low impact, high return investment programmes, to a far more proactive viewpoint to ensure we take into account the SDGs and poverty reduction. I will be scrutinising that along with my colleague the Chair of the Select Committee, but I will not be supporting the amendments, for the reasons I have set out. This can best be done at Department and Committee level through post and pre-decision scrutiny. In conclusion, I look forward to the Bill becoming an Act.

[Stephen Doughty]

I rise to speak in favour of new clause 7 and the other new clauses and amendments in my name and those of my right hon. and hon. Friends.

It is fantastic to see so great a consensus in the room around the 0.7% aid target and Britain’s role in international development—in contrast, perhaps, to the shriller debate in the media in recent weeks. It might surprise those hon. Members who have criticised my amendments that there is actually much agreement around the role of CDC; I believe it has a vital role to play—I made this clear in Committee, as I am sure the Minister would acknowledge—in the wider portfolio of our international development effort and in the spending of our official development assistance.

I would like to thank my fellow Co-operative party MPs and the shadow Front-Bench team, as well as other Members from across the House, for adding their names to many of my amendments. It shows the level of very reasonable concern around the many unanswered questions concerning the priorities and operations of CDC. Those questions need to be addressed before we can countenance such a large increase in the official development assistance resources it receives from DFID. I am not suggesting that CDC should not get any more resources—it has reached the cap of £1.5 billion set in 1999 and clearly needs some increase and headroom to expand its activities—but it is worth recognising that it has coped well by recycling resources within itself, partly thanks to some of the investment successes it has enjoyed.

UK Exit from the European Union

Debate between Stephen Doughty and Paul Scully

Monday 17th October 2016 Westminster Hall

[Paul Scully]

By invoking article 50 we will effectively be working out how to separate the UK from the rest of the EU—that is, dividing up the assets and liabilities and deciding how we move forward with the institutions. Although that is intertwined, it is also slightly separated from our future relationship with the EU. Article 50 says that we have to take our future relationship into account, but there is plenty of time and we need to use the full two years to work out our future relationship.

I would not want to see our future relationship being hamstrung by waiting to invoke article 50 because we are trying to limit our negotiations on our future relationship with the EU. Frankly, that is what hamstrung David Cameron in the first place. If he had asked for more and had not limited himself in his renegotiations with the EU last year, we might have been in a very different place in the lead up to the referendum. We might have voted to remain. We should not limit ourselves in our negotiations on how we move forward once we have left the EU just so we can get to the point of invoking article 50 and starting the process next March.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The hon. Gentleman mentioned devolved Assemblies, Parliaments and Governments a moment ago. Will he be clearer about the role he feels they should have? A crucial factor is that when we went into the European Communities, as they were then, we did not have devolution. A significant amount of the responsibilities have now been devolved to Northern Ireland, Wales and Scotland. The people of those devolved Administrations and Governments must have a clear say on this process. What role does he think they should play?

[Paul Scully]

That is why my right hon. Friend made a big effort to visit Edinburgh very soon after she was elected Prime Minister: to show her intention to engage with the devolved Parliament in Scotland and with the Assemblies. Speaking to the devolved parts of the UK, and also with councils and metropolitan bodies, going right down to smaller units of government, will be integral to the discussions over the next few months. That is crucial.

--- Later in debate ---

[Paul Scully]

If I may, I shall use what might seem like a slightly odd analogy. I have been in business for 20 years. Two years ago, I negotiated a lease for an office. It cost me £2,000 or £3,000 in solicitor’s fees, and about three months to organise. When I got my constituency office, I already had a nice lease to use as a template. It cost me exactly zero pounds and took me a week to organise. When we come to leave the EU, we can start either with a blank sheet of paper or with things that already work. I do not envisage—

[Stephen Doughty]

The hon. Gentleman is grossly over-simplifying the complexity of negotiating trade arrangements; I say that as somebody who has worked on them in Government. However, he mentioned his business experience; the volatility in the value of the pound is causing a great deal of uncertainty for businesses. For example, the value of the scrap used by the steel industry in my constituency is fluctuating due to the value of the dollar, but its exports are also being falsely boosted by the current value of the pound. Does he agree that we need to consider carefully whether the uncertainty created by the Government is giving a false impression of how the economy or different businesses are performing before we get into the detail of any fixed trade arrangements, particularly in certain sectors and with certain countries?

[Paul Scully]

My analogy of the lease was an extreme one. I am not expecting these things to take five minutes; nobody has ever expected organising trade deals to take five minutes. We cannot just transpose the words on one sheet of paper on to another, but my point is that we do not necessarily need to start with a blank sheet. We ought to look at a bespoke model for the UK, but that does not mean starting again from a blank sheet; we can take a little from here and a little from there, depending on what we want and on our mix of businesses, which is different from that of Switzerland, Canada, Turkey or any other of the countries often cited.

In his speech last week, the Secretary of State for Exiting the European Union said:

“We have Norway, which is inside the single market and outside the customs union; we have Turkey, which is inside the customs union and outside the single market; and we have Switzerland, which is not in the single market but has equivalent access to all of its productive and manufacturing services. There is not a single entity, but a spectrum of outcomes, and we will be seeking to get the best of that spectrum of outcomes.”—[Official Report, 12 October 2016; Vol. 615, c. 332.]

That still leaves us building blocks that we can use to do that.

The hon. Member for Cardiff South and Penarth (Stephen Doughty) spoke about uncertainty. We need to come at the issue with a sense of mutual respect, co-ordination and co-operation in order to build a national consensus, without political point scoring or people burying their head in the sand about the referendum—I am not referring to today’s debate, but I am concerned that that is happening in the court case that is going on. As the hon. Gentleman says, business does not like uncertainty; I know that from my own business experience. I do not mind risk, because business is based on it, but it is about being able to control as much of the risk as possible. We will never be able to control 100% of the risk, but the more of it we can control and the more certainty we can bring into the equation, the better the outcome will be.