Official Development Assistance

Andrew Mitchell Excerpts

Thursday 9th July 2020 Commons Chamber

[Tom Tugendhat]

I will answer that with just a few words. Tax is money taken by force. It must be scrutinised by this House to ensure it is being spent appropriately and correctly. That is why I am passionate in defending ICAI, and my hon. Friend chairs the International Development Committee’s Sub-Committee on the Work of the ICAI so effectively.

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

I am very pleased to hear what my hon. Friend says about the absolute importance of ICAI. He talks about the spending being in the national interest. May I make it clear that many of us believe that every single penny of the international development budget is spent in Britain’s national interest?

[Tom Tugendhat]

That is only true because of the assiduous nature with which my right hon. Friend and others have supervised the spending. There are other organisations that spend in other ways where I would argue that that is not the case. However, the way the DFID budget has been managed by my right hon. Friend—and, indeed, by Ministers such as the one sitting before us today—has absolutely prioritised British national interest through the alleviation of poverty and focusing on different areas, such as defensive and educational elements of our national interest, and has absolutely delivered. I think that is fundamentally in the British national interest, and that is why I am very keen to defend the 0.7% target and the amazing work of the people in East Kilbride, demonstrating that the UK working together abroad really does promote the interests of all of us.

It is essential that we remember that, when we look around the world, we see countries and people with whom we have different relationships. From the Scottish National party Front Bench, the hon. Member for Glasgow North (Patrick Grady) will talk passionately about Malawi and the deep links between the people of Scotland and Malawi. He is absolutely right. I could talk passionately about Afghanistan or Iraq, two countries I have been involved in. The Minister could talk about Sierra Leone. My right hon. Friend the Member for Sutton Coldfield could speak about that depth of relationship with any number of other countries. This is essential. What we are talking about is harnessing the combined interests of the peoples of these islands—our pasts, our histories, our interests and the living bridges that tie us around the world—and making sure that we build on them. That is why this union, the link between Foreign Office and aid, is fundamentally one that can work.

But—there is always a but, isn’t there?—it depends on culture. It depends on making sure that we do not make the mistake that Australia made in losing amazing people. It means we must remember that when we bring DFID and the Foreign Office together it is a merger of equals and not a takeover. It means we must remember that when Lord Hague, when he was Foreign Secretary, spoke about preventing sexual violence in conflict, that was about both aid and foreign policy. We can see that the Departments are already working together. My right hon. Friend the Member for Sutton Coldfield will say there is no such thing as a merger of equals. In that case, perhaps this is a DFID takeover of King Charles Street.

There is a real opportunity here. So long as we get the right person as permanent under-secretary—somebody who can work in a multinational environment, who can run a budget that is about a dozen times that of the Foreign Office, and who can hold accountability for British taxpayers’ money and ensure that it is spent in the national interest—I think we can get the effect that the Government seek. If we do, we will supercharge foreign policy from these islands, double down on our soft power and turn it to real strategic effect. I hope that we will do so not just for these islands; not just in defence of the international rules-based system that has allowed us all to prosper, broadly speaking, for about seven decades, mostly in peace and harmony; but for countries around the world, so that more and more can share the opportunities. That has never been more important, and it has never mattered more. The Minister’s hands are heavy with the burden that he carries.

--- Later in debate ---

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

I draw the attention of the House to my entry in the Register of Members’ Financial Interests.

I start by making it absolutely clear that I regard the decision to dismantle DFID as a quite extraordinary mistake. First, it will destroy one of the most effective and respected engines of international development in the world. Secondly, many of the senior figures who are key to Britain’s role as a development superpower are likely to leave and work elsewhere in the international system, destroying at a stroke a key aspect of global Britain. Thirdly, it is completely unnecessary, as the Prime Minister exercises full control and line of sight over DFID’s strategy and priorities through the National Security Council. Churches, faith communities and hundreds—thousands—of supporters up and down the country of Oxfam, Save the Children, Christian Aid and CAFOD are dismayed, as are our many friends around the world, who are shaking their heads in disbelief at this extraordinary act.

Both the Foreign Office and DFID work ceaselessly in Britain’s national interest, but foreign affairs and development, while totally complementary, are not the same thing. I welcome the Prime Minister’s commitment to the 0.7%, but that involves both the money and the OECD rules on what constitutes legitimate aid and official development assistance, and I fear that we will shortly hear that the rules are not quite right for the United Kingdom and we need our own rules. With that, the 0,7% will go up in smoke as the stronger interests plunder the budget and Britain’s development effectiveness dissolves, and with it our international reputation as a world leader in the field.

[Bob Seely (Isle of Wight) (Con)]

I absolutely respect my right hon. Friend’s experience. Does he accept that currently, including ODA and non-ODA, we spend nearly 0.8% funding overseas operations in Iraq?

[Mr Mitchell]

The House will understand why I am grateful to my hon. Friend for giving me an extra minute, but I have learned during my 30 years in Parliament that, in politics, there is limited point in spending one’s time howling at the moon. Whatever the rights and wrongs of the decision, it has been made, so I will turn now to how best it can be implemented, with the least damage to Britain’s brilliant work and reputation.

I draw the Minister’s attention to the excellent paper produced by Stefan Dercon, who was the chief economist in the Department when I was Secretary of State. I know the Foreign Secretary has had a chance to look at it. I hope the Foreign Office will bear in mind the constructive comments made in that wise and thoughtful paper on how to make the merger work. First It is important to ensure a whole-of-Government approach to the spending of development money. Different Departments spend it, but not consistently, and most of the spend that attracts hostile comment in the press—the spend in China, for example, or the Newton fund—is not spent by DFID. In my first hour as Secretary of State, I stopped all spending to China, unless it was legally incurred. There is a danger that mis-spending by other Departments brings the budget into disrepute with our constituents, and I urge the Government to focus on that point.

Secondly, to ensure an emphasis on the quality of the spend, the ICAI looks at all spending. Its annual report comes out tomorrow, and I urge colleagues to read it. ICAI was set up in the teeth of opposition from the development sector, but it is extremely important for holding to account the quality of spending. It is the taxpayers’ friend, and we must drive up the quality of ODA spend across Government.

[Sir Oliver Heald]

Will my right hon. Friend give way?

[Mr Mitchell]

I am sorry, but I cannot.

Thirdly, DFID’s skill is money. With the best will in the world, the Foreign Office is not that; although populated by the most brilliant diplomats, they are not very good with money and it is not fair to expect Foreign Office officials to take responsibility for running multimillion-pound projects.

The final example I will give is that, to his credit, the Prime Minister has made getting girls into school a priority. I strongly agree. To change our world, educate girls. That is why I set up the girls’ education challenge fund, which was designed to get 1 million girls into school, but looking at the right structures to deliver that is a DFID skill.