Draft Asian Infrastructure Investment Bank (Immunities and Privileges) Order 2015

Andrew Mitchell Excerpts

Monday 2nd November 2015 General Committees

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

It is a pleasure to appear before you, Mr Gapes; I think that it is for the first time.

It is also, of course, a pleasure to welcome the Minister back to his place. While he has been away, I think a DFID Minister has been covering for him, and many of us would have expected this debate to have been conducted by a DFID Minister. It may well be that such is the synchronicity between the Foreign Office and DFID these days that he has been filling in for the Minister of State, Department for International Development, my right hon. Friend the Member for New Forest West (Mr Swayne), who I had expected to see here.

I will just make a couple of points, tempted and seduced as I have been by the hon. Member for Nottingham North, with whom I have sparred and indeed co-operated over the last 30 years, since we entered the House, although in my case I have broken service through an enforced sabbatical.

On the point made by the hon. Member for Harrow West, it is important to note that the appointment of Mr Jin Liqun, which many of us have welcomed, is an operating matter for the bank, and the role of Britain as a core and founder investor in the bank will be set out clearly in the shareholders’ agreement, as it is with the other development banks, in which, as the hon. Gentleman will know very well, Britain takes a leading part. That will be what determines whether or not Britain was consulted. However, the reasons why my right hon. Friend the Chancellor decided—rather bravely, I think—to be an early investor in the bank are absolutely the right ones, because this is clearly going to be a major feature on the development landscape. Britain has skills and advantages to bring to the table of what I hope will be one of the most successful of the international development banks.

It is no secret that in the developing world there was irritation when Jim Kim was appointed as head of the World Bank. That was not because there is anything wrong with Jim Kim—he is an excellent leader of the bank—but because it was not open to international meritorious competition. As has already been alluded to, it was part of the stitch-up that means that the Americans appoint the president of the World Bank and the Europeans appoint the president of the IMF. We need to move beyond that now. I cannot reveal the workings of Government over the appointment, but the hon. Member for Harrow West may be certain that there was considerable discussion about that appointment. There was an outstanding deputy head of the World Bank, Ngozi Okonjo-Iweala, who was a candidate, and we need to move beyond that old deal and ensure that the next head of the World Bank is appointed by a full, meritorious trawl of everyone who is available, so that that particular concern is removed.

The Minister is absolutely right to express Britain’s strong support for this bank. It will be part of the architecture from which the poorest people in the world will increasingly benefit, as the work of all these development banks becomes more directly attuned to that core purpose. I very much hope that the Committee will welcome the decision by Britain to be part of this bank. It is part of Britain’s leadership on international development, and it is most welcome on that account.

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[James Duddridge]

First, in summarising the debate, I thank my hon. Friend the Member for Sutton Coldfield for his comments.

[Mr Mitchell]

Right hon.

[James Duddridge]

I am terribly sorry to have insulted my right hon. Friend so early in my speech. I apologise profusely. He suggested that I should be working closely with the Department for International Development, which I certainly am. Today I stand here as a Foreign Office Minister with responsibility for protocol. However, I would like to work much more closely across a number of subjects with my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), who kindly deputised for me when I was ill for much of the last year.

I will try to deal with all the points that have been raised in this debate in broad themes. I will touch on individual points, mentioning individual Members, as and when. A number of Members brought up social and environmental issues, and the UK has been involved in discussions on those subjects from an early stage. The UK has encouraged the bank, and members of the bank, to consult widely, and Her Majesty’s Government have specifically had discussions with NGOs—those discussions will continue—on how the bank will operate and on the bank’s standards on social and environmental issues. There have not been specific discussions on the projects that the right hon. Member for Cynon Valley mentioned, but there are wide-ranging discussions encompassing all the issues, including human rights.

The hon. Member for Harrow West asked about the interim appointment. I confirm that Britain was consulted on that, and an election is expected for the full-time appointment. He probed me further on governance more generally, and I confirm that there will be 12 non- resident board members. How they will fit geographically, and the areas they will cover, are still being negotiated. Additionally, there will be a number of vice-presidents, but I remind him that a lot of these development banks have many members—in this case, there are already 57 members. However, Britain is well placed, given the Chancellor of the Exchequer’s early entry.

The policy lead will be through Her Majesty’s Treasury—this issue has been raised by a number of Members—and we will maintain a strong influence, but the exact positions both of the non-executive board and of the vice-presidents are still to be negotiated. However, I note that both in the time of the hon. Member for Harrow West and in current times we have strong experience of multilateral development, and we are well placed to assist the bank.