Africa: Development

Baroness Kinnock of Holyhead Excerpts

Thursday 27th June 2013 Lords Chamber

Asked by

[Baroness Kinnock of Holyhead]

To ask Her Majesty’s Government what assessment they have made of Africa’s development prospects as set out in the African Economic Outlook 2013 report.

[Baroness Northover]

My Lords, we recognise the importance of economic growth and we support such growth across Africa to hasten poverty reduction. As the latest African Economic Outlook report says, sustaining economic growth requires capable, accountable government, well balanced tax systems, new and growing businesses, investment, for example in infrastructure and education, and freer trade across African borders.

[Baroness Kinnock of Holyhead]

I thank the noble Baroness for her response. Is she aware that the chair of the Africa Panel, Kofi Annan, has pointed out that some companies are using unethical tax avoidance, transfer pricing and anonymous company ownership to maximise their profits while at the same time millions of Africans suffer inadequate nutrition, health and education? NGOs, civil society and responsible businesses, such as Rio Tinto, are therefore calling for mandatory transparency rules. Why, then, did the Government not take an active lead in pursuit of the same objectives by pressing for the inclusion of mandatory rules in the G8 communiqué?

[Baroness Northover]

My Lords, as my noble friend Lord Ahmad said on an earlier Question, the previous Government and this one have taken this matter forward. As the noble Baroness recognises, it was very actively addressed at the G8. She will also appreciate from her time in government the difficulties of taking it forward. I hope she will pay tribute to the progress that was made in this regard because we all recognise that this is extremely important. We need to ensure that companies operating in Africa contribute to the development of African countries.