Oral Answers to Questions
Alan Brown Excerpts(7 years, 7 months ago)
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Rory Stewart
We agree absolutely with that. It is central that other countries meet their targets. We are very proud to be able to stand tall in the world, particularly at a time when children are starving to death. That is why the Secretary of State is leading international coalitions to increase the international commitment to these desperate issues.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State for International Development (Priti Patel)
Britain’s small charities do amazing and often highly innovative work in some of the poorest places in the world. Small charities are being given a boost by the financial fund that I have mentioned. I urge all colleagues on both sides of the House to encourage small charities in their constituencies to come forward when the funds are opened this summer.
Alan Brown
The Secretary of State has already acknowledged that last Friday was World TB Day. I hope that she is aware that there is an emerging threat of the disease becoming drug-resistant, so what steps are the Government taking to eradicate the TB epidemic and provide treatment for drug-resistant strains?
Priti Patel
The hon. Gentleman raises a very important point. TB is a deadly disease that affects so much of the world. We are demonstrating great leadership in this country on how we can tackle and invest in addressing TB as well as antimicrobial resistance, which is a big agenda that the UK has led on. We are funding more work, not only through the Ross Fund, as I said earlier, but through our research reviews.
Oral Answers to Questions
Alan Brown Excerpts(7 years, 10 months ago)
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The Prime Minister
I welcome the establishment of the north Wales and Mersey-Dee rail taskforce and the work that it is doing. The plan that my hon. Friend mentions sets out an ambitious programme of improvements for the area, and I am sure it will be prioritising the most promising options. I can say to him that the Department for Transport will continue to work closely with the taskforce and with the Welsh Government to consider what can be jointly accomplished.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Commonwealth Development Corporation Bill
Alan Brown ExcerptsTuesday 29th November 2016
(7 years, 11 months ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP)
It is a pleasure to follow the hon. Member for Rochford and Southend East (James Duddridge). The hon. Gentleman was very robust in saying that the CDC is a gift that keeps on giving, as the aid keeps getting recirculated, but I would gently suggest that if it was as simple as that we would not need international aid at all, because we could just have that gift keeping on giving. It is quite clear that we still need international aid and we need to protect international aid budgets.
It is clear that there is consensus across the House that the principle of the CDC is a good one; a not-for-profit private sector company that encourages growth and additional investment in developing countries is very welcome. We have heard that it has stimulated growth and investment with varying degrees of success over a long period of time. We have also heard that it is not infallible; it has had issues and is starting to address them in a welcome way. Yesterday’s National Audit Office report shows that there are still further issues to address, so I agree we need a robust debate in Committee to try to pick up on them.
We have heard about salaries, and excessive salaries have clearly hit the news in the past. Yesterday’s report welcomes progress on reducing average annual salary costs from a high of £154,000 in 2009 to £90,000 in 2015. That is still quite a decent average salary; I think most people could live off that. The report acknowledges that the CDC has expressed concern about staff attrition and difficulties in recruitment as a consequence of lower salaries, but the report also notes that the staff attrition rate has plateaued at about half of its peak in 2012. I also note that salaries have increased again year on year from 2013. That suggests that a balance has been reached between staff attrition and salaries, but we need to watch that salary levels do not keep on increasing year on year. As we have heard elsewhere, £300,000 for a chief executive is a good salary. It is higher than that of the Prime Minister or of the Secretary of State for International Development. That chief executive’s salary has exceeded £300,000 for two years running now.
Mr Mitchell
Although £300,000 is a large salary, will the hon. Gentleman at least accept that in coming to take this job Diana Noble took a massive salary reduction? He should bear that in mind when considering these salaries.
Alan Brown
I note the right hon. Gentleman’s comments and, yes, if she took a massive reduction in salary that is clearly welcome, and the overall salaries have reduced, which sets a marker for the future if Diana Noble chooses to move on. At least there is a lower salary peg, and she has led the way with that. I accept that, but we need to recognise that it is a substantial salary. That cannot be forgotten.
The NAO report also states that there is now a greater focus on investing in poorer countries rather than markets that already attract foreign investors. That is welcome, but according to a Library paper investment in the poorest countries has increased from 4% to only 12%, with 4% of investment in the next income tier countries. Investment in the upper middle income countries exceeds the combined total of 16% in the lower two tiers. More work needs to be done and a measurable target should be put in place to encourage investment in the lowest income countries.
The NAO report also confirms that, as regards its financial performance, the CDC’s annual return on its portfolio ranges from 4% to 18% against a target of 3.5%. Normally, when a target is massively exceeded that suggests that it is too low or, as seems to be the case here, the returns are too high. If the returns are too high, either more money is being returned from the countries that have been invested in than is necessary or not enough marginal projects are being invested in. That needs to be considered. I accept that some of the historical returns are due to legacy projects that were invested in and had much higher returns because of the hedge fund system, so I hope that that will continue to be addressed and that we will see lower returns and the right investment in projects.
Although the NAO report says that there is a robust cost basis and that the CDC is in a good place to go forward, as has been mentioned by some hon. Members, what stands out is the need for better assessment and reporting of outcomes and the planned impact of investment. A more accurate assessment of the jobs created is required, as well as
“a clearer picture of actual development impact”.
That is crucial. To this end, it is clear that the NAO recommendations on performance targets and an evaluation contract must be implemented as soon as possible.
The NAO believes that the absence of a measure of additionality is a flaw, as additionality is a core principle of the investment strategy. That needs to be remedied. The Department should consider making it mandatory for the CDC to report on the four indicators outlined in paragraph 2.23 of the NAO report, which correlate to the CDC business case.
As has been mentioned, several organisations have expressed concern about the CDC’s tax transparency. “Transparency” is a buzzword that has been used by both the Prime Minister and the Secretary of State. If the CDC does not lead by example, it does not encourage other investors to avoid the use of tax havens. Worse still, the use of tax havens reduces the tax take of developing countries, preventing their Governments from generating additional revenue that they could invest in capital schemes, services or revenue support schemes. As long as the CDC has a model whereby it re-invests profit, it cannot adopt the “profit at any cost” ethos of the worst of the private sector. That becomes self-defeating, and smaller returns resulting from paying its full tax dues should not be a matter for debate.
It is clear that the use of tax havens takes away from the sustainability of developing countries. It is some five years on since the International Development Committee advised that transparency is essential for the public to hold the CDC to account. At present, the CDC is still some way off best practice and the transparency that the Government aspire to. The CDC scored “poor” in the 2012 aid transparency index, so for the Government to commit huge amounts of extra funding before improvements are made is not consistent with the Secretary of State’s stated aim of improving transparency across the aid budget. Aid cannot work in the national interest if three quarters of the CDC’s investments are routed through jurisdictions that feature in the top 20 of the Tax Justice Network’s financial secrecy index. That cannot be in the long-term national interest.
Oxfam has highlighted this issue, as well as other concerns about transparency, suitable investment and the use of tax havens. In addition, Christian Aid, which is a member of the ACT Alliance, a global coalition of more than 130 Churches and organisations engaged in humanitarian assistance, has called for an end to the use of tax havens. It is clear that the practice must be ended.
The founding principles of the CDC are good. Some of its working needs to be fine-tuned, and it is important that this happens before any more Government money is funnelled in. It needs to be explained what share of the overall aid budget this increase constitutes and what other types of aid might be reduced to make way for this investment. As others have asked, why have the Government introduced this Bill before publication of the CDC’s investment strategy for 2017-21? I note that the autumn statement last week shows a net decrease in overseas development assistance of some £80 million next year and a further £210 million the following year. It is crucial, therefore, that an arm’s-length company is not funded at the expense of other required aid. As the NAO report states,
“It remains a significant challenge for CDC to demonstrate its ultimate objective of creating jobs and making a lasting difference to people’s lives in some of the world’s poorest places.”
We must not forget that. We need put in place everything that is necessary to allow that to happen.
Clean Water and Sanitation (Africa)
Alan Brown Excerpts(8 years, 7 months ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP)
It is a pleasure to serve under your chairmanship for the first time, Mr Percy. Although I am responding for the Scottish National party from the Front Bench, I would like to put on record the apologies of the SNP’s international spokesperson, my hon. Friend the Member for Glasgow North (Patrick Grady). He has important constituency work today, otherwise he would have been here; this is a cause he is very passionate about.
I thank the hon. Member for Strangford (Jim Shannon) for securing this important debate, which has been really good. I have a feeling that because he covered the issue so comprehensively, a lot of my comments will be prefaced by, “As the hon. Member for Strangford said earlier”. The two cases he mentioned at the end of his speech were very powerful and illustrated the need for further action on water and sanitation in Africa.
The hon. Member for Mid Derbyshire (Pauline Latham) certainly added to the debate, giving examples from Burundi, Uganda and South Sudan. She talked about open defecation in the fields and witnessing the sewage traversing towards villages, and that underpins the need for more action. I must say, I have learned more today about Members’ childhood toilet activities than I thought I would.
The hon. Member for City of Durham (Dr Blackman-Woods) made some important points about the millennium development goals and learning lessons for the sustainable development goals. She made a powerful point about sub-Saharan countries being poorer now than in the 1960s.
The hon. Member for Stafford (Jeremy Lefroy) presented some excellent examples from his personal knowledge of and involvement in projects. Importantly, he touched on the fact that small programmes and smart working are the way forward. There does not have to be big money. We hear about expenditure on headline projects and the overseas aid budget, but the way forward is to work smart and invest in small, sustainable projects so that communities can take ownership of them.
I am a civil engineer, and prior to being elected to this place, I spent my career in the water industry. I have always known the importance of clean water and sanitation in this country, let alone in the developing world. I used to do presentations in schools, and to try to capture the children’s imagination I used the example that the water infrastructure in this country saves more lives than the NHS. That is backed up by the fact that the World Bank has declared that hand-washing with soap is the single most cost-effective health intervention.
Hon. Members have touched on the fact that because we have a successful water and sanitation infrastructure in this country, many people it for granted. Some people complain about the taste of water if there is a slight change and do not realise that it is still perfectly healthy and provides great health benefits. They complain if they lose their water supply for three hours and cannot put their kettle or have a bath or shower, without realising that some people without water and sanitation face personal challenges every day.
It was when I worked for Scottish Water and its predecessor that I became aware of WaterAid and WaterAid Scotland, and I pay tribute to them. What struck me when I first went to a WaterAid presentation was the sustainability aspect of the projects it invests in, which struck a chord with me. That touches on the point the hon. Member for Stafford made about smart investment in sustainable projects. I am also impressed by the wider education that WaterAid is involved in. As my hon. Friend the Member for Argyll and Bute (Brendan O'Hara) said, it is fantastic at engaging MPs and widening their education, but it goes further than that in its education programme.
I was pleased that earlier this year a school in my constituency, James Hamilton Academy, won WaterAid’s star supporters competition as a result of its innovative learning programme about water collection and sustainability. The project challenged pupils to think differently about water usage and to compare their usage with that of a child in the developing world. We can safely say that the pupils will no longer take their water supply for granted.
Another example of education was in October 2015 when a group of Scottish Water staff headed out to Zambia to visit WaterAid projects. They visited communities with and without access to safe water, which helped them to gain a real understanding of the challenges facing communities. Since their return, the Zambia team have delivered numerous presentations to their colleagues at Scottish Water. That became an ongoing education programme to spread the word.
Statistics highlight the importance of this debate. It is a basic fact that unclean water and the lack of basic sanitation prevents the eradication of poverty and disease globally, and particularly in Africa. It is well documented that water and sanitation are necessary for success in many other development areas, such as improving health, education and the prospects of women and girls.
In sub-Saharan Africa, only 68% of people have access to clean water and 30% to adequate sanitation. That means children in sub-Saharan Africa are more than 14 times more likely to die before the age of five than children in developed regions. In Uganda, 80% of the population does not have a safe place to go to the toilet. Every year, 500,000 children, most of whom live in Africa, die from diarrhoea caused by unsafe water and poor sanitation. That is more than one child every minute.
Pauline Latham
Does the hon. Gentleman agree that that is not a proud record for a President who has been in power in Uganda for more than 30 years? What progress has been made over the past 30-odd years? The President plans to carry on for ever. Does the hon. Gentleman agree that the situation in that country is desperate?
Alan Brown
I agree with the hon. Lady. She obviously has a good understanding of Uganda, and I thank her for her intervention.
More than 9,000 children die every year in Ethiopia alone from diarrhoea caused by unsafe water and poor sanitation. Approximately 800,000 children aged between one month and five years died from pneumonia in 2013, and about 1,400 children die every day from preventable diarrhoea. Some 58% of diarrhoeal deaths are caused by unsafe water and poor sanitation and hygiene.
The effects of a lack of water and sanitation go much further than just disease, as other hon. Members have said. It affects all aspects of life and has a profound impact on women and girls in Africa. As we have heard, they are typically responsible for collecting water for their family, and girls spend as many as six hours a day collecting water, leaving them little time to go to school. In many places, schools are not located within villages or close to where people work, so if girls must travel for hours to collect water, they face the problem of having to travel for hours to go to school as well, so attendance is difficult.
Without a safe and private place to go to the toilet, many girls are forced to drop out of school when they start to menstruate. Many women and girls also have to wait until night to relieve themselves in the open, which causes further health problems and strips them of dignity. Many are harassed or even assaulted. A former work colleague of mine who went to India on a fact-finding mission gave harrowing accounts of women being raped as they went out at night to open fields to use as a toilet. Clearly, the same can happen in Africa.
A lack of clean water also makes it extremely difficult to give birth safely, and mother and child often do not survive. I would like to illustrate that point with one case. Aisha Mkude, who is 38, lives in Lugono village in Tanzania. Last year, she gave birth to her first son, who was born healthy. Aisha says she left the hospital feeling joyful, but just two days later her son got a high fever and started discharging smelly water from his belly button, so she returned to the clinic with him. She says:
“There wasn’t enough water at the health centre when I gave birth, resulting in him catching an infection.”
That was because after the birth, she had washed herself and her baby in water that her brother’s wife had fetched for her from the nearby river. It was the dry season, so she had to dig out part of the river to get water. Unfortunately Aisha’s son lived for only seven days, but if there had been regular availability of safe water at the health centre, that situation would have been prevented. She says:
“I feel so bad because I never expected this but because it has happened I will just accept it.”
She should not have to accept it, and that is the thrust of today’s debate. That example highlights the importance of WaterAid’s Healthy Start campaign, which brings into sharp focus the importance of water, sanitation and hygiene in improving the health and nutrition of newborns and children.
That example also illustrates why global action and co-operation are required in a wider context. To that end, we welcome the UN members signing up to the sustainable development goals, particularly goal 6—access to water and sanitation for all by 2030. It is vital that the UK Government set an ambitious and realistic agenda to help ensure that that framework of goals is achieved.
Other hon. Members have touched on this point, but investment in water, sanitation and hygiene is an extremely cost-effective way to spend the UK’s aid budget. We have heard about the 1:4 ratio—for every £1 spent on improving access to water and sanitation, an estimated £4 is returned. We also need to consider that according to the World Bank, total global economic losses due to inadequate water supply and sanitation services have been estimated at $260 billion a year. That illustrates the fact that it is imperative that suitable money be committed. At present, only 2% of UK bilateral aid goes to water, sanitation and hygiene. I put my name to a letter issued in the name of the hon. Member for Stone (Sir William Cash) calling on the Government to increase that percentage. It would be good if the Minister could give his thoughts on that.
The hon. Member for Strangford touched on the fact that the House is generally united on this subject, but I will make one criticism of the Government. Their overseas development aid needs to be concentrated on programmes relating to water and sanitation projects throughout Africa and elsewhere, instead of on defence. I am concerned that there is increasing double-counting of defence expenditure towards both the NATO targets and official development assistance, through mechanisms such as the conflict, security and stability fund. We should not blur the lines between aid and defence spending. The Government need to realign their moral compass and redirect aid towards those who need it most. The £1 billion conflict, security and stability fund, which the UK Government lists as overseas development aid, is not an appropriate use of UK aid spend. Indeed, in February 2016, Oxfam, Global Citizen and ONE called on Governments across Europe to ensure that aid budgets are used only for poverty eradication and sustainable development.
On a more positive note, I welcome the Government’s commitment to reach a further 60 million people with access to clean water and sanitation by 2020. I look forward to seeing how that will be advanced when the bilateral aid review is published. I suggest, however, that the Government could be even more ambitious.
In Scotland, the SNP-led Government are also committed to boosting water and sanitation projects in Africa, through their climate justice fund. In December 2015, Nicola Sturgeon announced £12 million of funding to help mitigate the effects of climate change on the world’s most vulnerable populations. That was a doubling of the climate justice fund. The head of Oxfam Scotland, Jamie Livingstone, said that
“the Scottish Government’s enhanced commitment to climate justice is very welcome—it increases the funding promised and creates much needed predictability.”
The work enabled by that fund has focused on clean water provision and is aimed at mapping pollution sources, which are very often sanitation facilities. The Scottish Government are working to position water and sanitation assets to maximise access and minimise cross-contamination.
A lot of good work is ongoing, and there is the ambitious aim to supply water and sanitation to all by 2030. As the hon. Member for Mid Derbyshire said, that is not far away, but I remind the House that even if we achieve that goal by 2030, there will still be millions of deaths before then, and that is why urgent action is needed.
Oral Answers to Questions
Alan Brown Excerpts(8 years, 11 months ago)
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Brandon Lewis
As I said a few moments ago, in the last five years of Conservative government more council homes were built than in the entire 13 years of Labour government, during which the number of affordable homes dropped by 420,000. There is still more than £2 billion of borrowing headroom enabling local authorities to build more. We have made it clear that we will help all those who aspire to own their own homes by extending the right to buy and delivering starter homes throughout the country.
Alan Brown (Kilmarnock and Loudoun) (SNP)
9. What assessment he has made of the effect of policies in the spending review and autumn statement 2015 on his Department's expenditure on policies and services which in Scotland are devolved to the Scottish Government.
The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)
As the hon. Gentleman will know, the services of this Department are devolved to Scotland, so there are Barnett consequentials of spending decisions that affect the Department. As a result of the spending review, the Scottish Government’s capital budget will increase by 14%.
Alan Brown
The Chancellor confirmed in the autumn statement the extension of the right to buy to housing associations, thereby effectively privatising them. As we all know, the existing right to buy has decimated social housing stock throughout the United Kingdom. The Scottish Government recognised that, and abolished the right to buy. Given that the new discounts and the so-called one-for-one replacements are not being financed by additional Government funding, will the Minister explain what effect the Chancellor’s proposals will have on housing in Scotland?
James Wharton
The hon. Gentleman is right to draw attention to the policy intention to replace homes on a basis of at least one for one, which is greatly welcomed by Conservative Members. As I have said, the spending review will have a Barnett consequentials impact on the Scottish Government’s capital budget, amounting to £1.9 billion, which is in addition to the borrowing powers they already have. That will enable them to deliver on what they want to do for Scotland—just as we want to deliver on our objectives and manifesto priorities in England and Wales.
Greg Clark
I can assure my right hon. Friend that I have no intention of reintroducing Avon by the front door, back door or side door.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Further to my earlier question, if the new one-for-one replacement for right to buy was funded directly by the UK Government instead of other means, what would the Barnett consequentials be for Scotland?
James Wharton
As I said earlier, the Scottish Government are seeing a significant increase in their capital budget as a result of the announcement in the spending review. The Barnett consequentials of individual policies are worked through and delivered. The British Government—the Government here in this place—meet our obligations in that regard, and will continue to do so, to ensure that the Scottish Government get a fair deal and can continue to deliver what they need to deliver to meet their obligations and the concerns of hon. Members.