International Development (Official Development Assistance Target) Bill

Baroness Falkner of Margravine Excerpts

Friday 23rd January 2015 Lords Chamber

[Baroness Falkner of Margravine (LD)]

My Lords, I had the privilege nearly five years ago of being the first Liberal Democrat to speak from Government Benches in seconding the Queen’s Speech when the coalition was formed. One of the most significant things in that Queen’s Speech was the commitment to legislating for 0.7% of GDI being given in overseas development aid. I am sorry that it has taken nearly five years to get there but immensely proud of this Government for delivering on that significant and early promise. I also pay tribute to Labour: that promise was committed to by a Labour Government and the enabling departments and structural factors were very much theirs and bear their signature.

At a time of singular apathy towards voting as we face another general election and with a view that there is very little that engages the public, listening to the debate in the House of Lords and seeing noble Lords across the Chamber coming together with such singular purpose to support this noble objective is heart-warming. If there is anything that the public should be proud about, this debate bears testament to Britain’s internationalism.

I turn directly to the argument of the noble Lord, Lord Lipsey, about hypothecation. I am sorry that the noble Lord is not in his place—oh, I see he is now sitting in another place. I am very glad to see him here. His argument was very valid when it comes to the broad thrust of this. When you hypothecate too many different departments you leave all the rest to take the brunt of cuts. Of course that cannot be right. However, I take the example he used: the NHS. There is no comparison here. The NHS spends something like £100 billion a year. In having achieved 0.72% of GDI, we are talking of expenditure of something in the region of £11.5 billion. Were you in this case to rob Peter to pay Paul, you would make a fractional difference in terms of the NHS. I point out to him that the recent report by an eminent body, the Academy of Medical Royal Colleges, found some £2 billion being wasted in NHS treatments and drugs. Frankly, that wastage is the equivalent of almost 20% of what we spend on humanitarian assistance. While hypothecation overall can be difficult, there are exceptions where it is absolutely necessary. It has taken 40-something years to get here. If this legislation is not necessary, I do not know what is.

In the brief time I have, I turn to how appalling it is that the five most powerful countries of the world—that is, the five permanent members of the United Nations Security Council—have such a poor record in this area. As I said, we in the UK can be proud that we give 0.72% of GNI. However, France gives 0.4%. The US—one of the richest countries in the world—gives 0.2%. Russia, with the benefits of the extractive industries of oil and its mineral wealth, gives a mere 0.3% and, charged with securing international peace and security, is actually a catalyst for increasing international instability rather than helping to solve the problems. China, the fifth member of the United Nations Security Council, does not even recognise OECD methodology in terms of assistance. It is completely untransparent in what it gives, but from what experts can determine most of its funding is through state-owned enterprises and banks, and is spent on extractive industries and infrastructure in developing countries. Most of that is conditional or tied. Estimates are that, at best, it gives about 0.3%—like Russia.

We have a situation where the five countries charged with upholding international peace and security—in this area, security should have a wide meaning and encompass disease, food security and environmental degradation as well as conflict—give appalling amounts in terms of discharging their responsibilities. This is an important Bill. If we legislate for this in the UK, we serve as an example to other rich and developed countries that they, too, should move in the same direction. In that alone, we will have achieved a significant step forward.