Government Overseas Aid Commitment: Private Investment

Desmond Swayne Excerpts

Tuesday 9th October 2018 Commons Chamber

[Penny Mordaunt]

I gave a lengthy speech this morning and there is plenty of detail in there. [Interruption.] It is online, so the hon. Lady can read it.

Let me be very clear about the rule changes we would explore. Currently, when we capitalise an investment instrument, we count it as official development assistance. When we make the investment, we do not. We are very happy with that—we have argued for it—and that is what happens now. In future years, however, once we have capitalised those instruments, we may wish to change the way we do it. [Interruption.] It is not double-counting; it is allowing the returns we make on those investments to be used more flexibly. We are very happy and it suits us at the moment to do this. The issue is that if we then reinvest those funds in development, they do not count towards the 0.7%, and if we take them out, to spend on the NHS or another domestic priority, it counts negatively. What we are arguing for is exploring, at this stage, changing the rules to allow us to do that.

In addition, we have to accept that, even with the combined total of our budget and those of other nations, we will not deliver the global goals unless we let the private sector do more. Currently, the £8 trillion in the City could be put to better use and may actually deliver higher returns for pension funds. They will do a huge amount of good in the developing world.

The hon. Lady asks me for examples. CDC, which I understand she wishes to abolish, is the oldest development financial institution in the world. Last year, it made investments of over £1 billion, which created 735,000 jobs. We need to create 18 million jobs every year until 2035 just to keep up with population growth in Africa, and that is what we need to do to eradicate extreme poverty. If the hon. Lady has a better suggestion on how to raise $2.5 trillion I would be very interested to hear it.

I am here not to make us feel good about spending aid money; I am here to eradicate extreme poverty. We cannot do that without business and we cannot do that without the private sector. Dogma has no place in this debate.

[Sir Desmond Swayne (New Forest West) (Con)]

If we are to avoid a growing army of underemployed, desperate and angry young people, we need 600 million new jobs over the next decade. Does the Secretary of State imagine that that can be provided without an enormous mobilisation of private sector investment in the developing world?

[Penny Mordaunt]

My right hon. Friend is right. We are entering into the final decade and the last push towards the global goals. We have to be realistic. If we are going to achieve them, and I want to achieve them, we have to let other people help.

LGBT Action Plan

Desmond Swayne Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Penny Mordaunt]

I am a practical person, so I want to concentrate on the points in the action plan and on the other things that I can do to improve the lives of LGBT+ across the UK. As for other matters regarding other nations of the UK, Westminster has expressed a view that if devolved issues are not acted on, Westminster will act. I just want to point that out.

[Sir Desmond Swayne (New Forest West) (Con)]

Civil partnerships were introduced to accommodate those couples who were discriminated against by being unable to marry, so the Minister should add to her list of actions the abolition of that institution of discrimination, should she not?

[Chris Bryant]

No!

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[Mr Speaker]

Order. The right hon. Member for New Forest West (Sir Desmond Swayne) should remain in his place.

[Sir Desmond Swayne]

I was coming for the hon. Member for Rhondda (Chris Bryant).

[Mr Speaker]

That sounds like a threat! The right hon. Gentleman should not be beetling along the Bench when the Minister is answering. He is normally a most courteous fellow, but I think he has got carried away. I know that he will now listen with respectful attention and in all solemnity to the Minister.

Syria

Desmond Swayne Excerpts

Monday 30th April 2018 Commons Chamber

[Penny Mordaunt]

My hon. Friend raises a very important point. One of the sessions that I took part in at the Brussels conference was with civil society and we looked at how we will collect evidence and hold people to account for their actions. Some of our funding will support an international initiative to do just that, and it is vital that we do so. We should do everything in our power to stop the sorts of things that we have seen over the past eight years happening ever again.

[Sir Desmond Swayne (New Forest West) (Con)]

With respect to promoting our aid effort, as raised by my hon. Friend the Member for Crawley (Henry Smith), is my right hon. Friend aware of anyone who spends 99.3% of their income on themselves?

[Penny Mordaunt]

I can see that I will have to deploy my hon. Friend the Member for Crawley (Henry Smith) to make the case for what we do. We do sometimes focus on that number of 0.7%, but we should actually focus on what that money does. If we can explain this better to the British public, who enable us to help people such as Syria’s children, they would be very proud of what the funding does.

Oral Answers to Questions

Desmond Swayne Excerpts

Wednesday 29th March 2017 Commons Chamber

[Rory Stewart]

We believe very strongly that reform should be done with other member states and as part of a coalition. As the hon. Gentleman has pointed out, the multilateral development review has pointed to issues where we think further reform is needed, but the United Nations is central to Britain’s response around the world. In fact, we are contributing £1.6 billion this year in our work with the United Nations, addressing some of the most vulnerable people on the planet.

[Sir Desmond Swayne (New Forest West) (Con)]

What success has been had in recruiting Gulf states to work through the UN system and in encouraging them to support our UN reform agenda?

[Rory Stewart]

Clearly, Gulf states, which are increasingly large parts of the economy of the world, are central to humanitarian response. There have been significant contributions from the Gulf—from Saudi, UAE and Qatar—and the Secretary of State continues to encourage those contributions, particularly those that address the famines in the horn of Africa.

Counter-Daesh Update

Desmond Swayne Excerpts

Wednesday 15th March 2017 Commons Chamber

[Priti Patel]

The hon. Gentleman raises a number of points. He specifically mentioned the support that DFID is giving to those outside the camps; he will not be surprised to hear that we are working with partner organisations, non-governmental organisations and charities in Jordan and Lebanon, particularly outside the camps, to provide support directly to refugees.

On bringing about peace and stability, the Government’s objective is long-term stabilisation and humanitarian support. Last year, with the UN, DFID—the British Government—committed substantial resources to pre-preparedness for the Mosul offensive to ensure both that we could protect civilians, and that aid could be provided to people who needed it in light of the offensive.

The hon. Gentleman also mentioned the important and valuable role of the Government’s legislative and manifesto commitment to the 0.7% target. The Government have been unequivocal in continuing to support that target. On top of what we have been discussing as regards Iraq, Syria, Jordan, Lebanon and the wider region, a DEC appeal was launched today to address the four potential famines in Somalia, north-east Nigeria, South Sudan and Yemen. We should reflect on the fact that at times of humanitarian crisis, the 0.7% target demonstrates to those who are suffering persecution and displacement who we are as a country, our place in the world, the leadership we give and our response to those who are very much less fortunate than ourselves. That is what UK aid is about. It is about our place in the world, and it is in our national interest to continue doing what we do. Those of us in the House and UK taxpayers can all be proud of that work.

Finally, the hon. Gentleman mentioned resettlement schemes. Our resettlement schemes offer a safe and legal route to the UK for the most vulnerable refugees, and the British Government can be proud of what we have been doing to resettle refugees.

[Sir Desmond Swayne (New Forest West) (Con)]

Well, I am certainly proud. What are the Government doing to support the programme of reform in Iraq that is so necessary for delivering peace by ensuring that liberated Sunni communities are embraced by the whole political economy of Iraq?

[Priti Patel]

My right hon. Friend, as a former DFID Minister, knows better than most the vital role that UK aid plays in the world, particularly in Iraq. In answer to his question, we have been pressing Iraqi leaders and stressing to them at every opportunity the importance of an inclusive political plan for stabilising and rebuilding the country. All groups have to be involved in that rebuilding and stabilisation. Of course, the UK Government and UK aid are providing all the support to reopen schools in east Mosul, and humanitarian assistance to displaced people across Iraq.

GuarantCo: Callable Capital Agreement

Desmond Swayne Excerpts

Wednesday 13th July 2016 Written Statements

[The Minister of State, Department for International Development (Sir Desmond Swayne)]

It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the statement, except in cases of special urgency.

I have today laid a departmental minute outlining details of the liability of up to £40 million which DFID has undertaken in respect of the Private Infrastructure Development Group (PIDG).

GuarantCo was established in 2003 as an investment facility of the PIDG. PIDG encourages and mobilises private investment in infrastructure in the frontier markets of sub-Saharan Africa and south and south-east Asia. PIDG makes it viable for private investors to participate in infrastructure deals, using limited sums from its publicly funded trust to crowd-in many times that value in private capital. The US $1.2 billion committed by PIDG donors since 2002 has leveraged over US $20 billion in private investment and a further US $9 billion in investment from partner international and development finance institutions.

PIDG supports private investment throughout the project development cycle from its earliest stages, through a number of separate facilities or companies. GuarantCo supports local currency lending for infrastructure projects in developing countries by providing guarantees to banks and bond investors. This helps to remove the risk of currency devaluation for investors and allows them to structure tailored financial instruments. In this way, it helps to promote domestic infrastructure financing and self-sustaining capital market development in low and lower-middle income countries.

GuarantCo’s business model requires it to demonstrate the capacity to issue guarantees for transactions it is discussing with counterparties. GuarantCo expects to only have a minimal number of defaulting projects. However, it needs to have a legally solid call on sufficient capital for it to pay out against called guarantees.

Currently DFID supports GuarantCo through paid-in capital. To ensure better value for money for UK taxpayer funding, however, DFID is proposing to enter into an agreement with GuarantCo for callable equity (capital). This will allow cash to remain with HM Government. It also responds to a key recommendation of the National Audit Office in its report “Oversight of the Private Infrastructure Development Group” (HC 265) in July 2014 to improve how DFID

“critically reviews its funding of the activities of multilateral bodies such as PIDG, only releasing funds once there is a clear need for the money and the capacity to make good use of it. This will enable it to compare PIDG with other options and avoid large unused cash balances”.

GuarantCo will still be able to leverage its increased equity base as it will have a sovereign guarantee of callable capital. Consequently, it will be able to continue its development objectives and expand its pipeline of projects.

DFID’s total contingent liability for GuarantCo would be £40 million under this callable capital agreement. This is part of the overall approved budget for PIDG under its current business case. The sole purpose of this arrangement is to achieve better value for money for taxpayers by providing callable capital instead of cash while achieving the same development outcomes.

The agreement would be in place for 10 years and capital can be called by GuarantCo if the value of its guarantee portfolio is more than five times its equity. This would require GuarantCo to lose about 60% (or US $166 million) of its paid-in equity at a guarantee portfolio of US $1 billion. DFID considers the risk of this happening to be low but not negligible. Even if called towards the end of the agreement, it would still provide better value for money than DFID providing cash now. DFID will continue to review the financial performance with GuarantCo regularly and GuarantCo will be required to report quarterly on the risk of the capital being called. In the circumstance where the contingent liability is called, provision for any payment will be sought through the normal supply procedure.

The Treasury has approved the proposal in principle. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before parliament (i.e. 13 to 21 July and 5 to 15 September), a Member signifies an objection by giving notice of a parliamentary question or by otherwise raising the matter in parliament, final approval to proceed with incurring the liability will be withheld pending an examination of the objection.

[HCWS85]

Oral Answers to Questions

Desmond Swayne Excerpts

Wednesday 29th June 2016 Commons Chamber

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

5. What support her Department provides to projects facilitating peaceful co-existence between Palestinians and Israelis.

[The Minister of State, Department for International Development (Sir Desmond Swayne)]

We support projects that bring Palestinians and Israelis together, to which end we have made provision for funding through our conflict, security and stability fund to support co-existence projects, but I am keen to identify what more we can do.

[Stephen Metcalfe]

As I am asking my question in slot No. 5, which would have been taken by Jo Cox, may I, too, add my tribute to her excellent work in this area? Why do my right hon. Friend and his Department think that it is a good use of taxpayers’ money to continue to support the Palestinian Authority?

[Sir Desmond Swayne]

I agree with my hon. Friend about Jo Cox. The reason we think it is a good idea to support the Palestinian Authority is that they deliver essential public services, not least healthcare and the education of 770,000 pupils. I believe that it is in our national interest to build up Palestinian institutions so that in a future Palestinian state, they can be reliable and effective partners for peace.

[Richard Burden (Birmingham, Northfield) (Lab)]

I endorse the tributes that have been made to the work of Jo Cox for peace and justice in Israel and Palestine. Will the Minister join me in recognising the contribution to peaceful co-existence of Israelis who speak uncomfortable truths, whether that be the Mayor of Tel Aviv speaking out against occupation, the veterans of Breaking the Silence speaking out against the reality of occupation, or Peace Now mapping settlements that are undermining the chances of a two-state solution?

[Sir Desmond Swayne]

Yes, and I am concerned about any potential closing of space for non-governmental organisations.

[Mr Speaker]

I will call the hon. Member for Harrow East (Bob Blackman) if he undertakes to ask a single, short-sentence question.

[Bob Blackman (Harrow East) (Con)]

Has my right hon. Friend examined Save a Child’s Heart, an initiative by the Israeli Government to treat Palestinian children and save their lives?

[Sir Desmond Swayne]

Yes, I hosted a delegation of Members from across the House who brought this excellent organisation to my attention recently, and my officials are conducting due diligence.

[Dr Tania Mathias (Twickenham) (Con)]

T2. If she will make a statement on her departmental responsibilities.

Developing Countries: Jobs and Livelihoods

Desmond Swayne Excerpts

Wednesday 15th June 2016 Westminster Hall

[The Minister of State, Department for International Development (Sir Desmond Swayne)]

It is a pleasure to follow the hon. Member for Bradford East (Imran Hussain), and I thank him for his kind words. He referred to my passion, but it is clear that his passion equals, if not exceeds, mine, as does that of the hon. Member for Hackney North and Stoke Newington (Ms Abbott). I sometimes imagine that we disagree less than we think, but what is clear is that we all share the same objective and the same passion.

Today we have debated a very important, game-changing report. Since that report, we have been pushed in a direction that we were very keen to head in in the first place. We have created a new directorate for economic development by combining five separate departments. We have created a new youth and education department to focus on the transition from school to work, and to drive that focus through all the bilateral relationships and all our programmes. We have implemented a new growth diagnostic. This is the focus that my hon. Friend the Member for Stafford (Jeremy Lefroy) demanded there be in every bilateral relationship and every programme. The diagnostic informs every team of the barriers to growth in the countries in which they are working, so that they can devise programmes with the greatest impact on growth. My hon. Friend referred to the new agricultural strategy; it is, as he demanded, focused on smallholder agriculture. We will shortly publish—after we have disposed of that business on 23 June—our new economic development strategy.

The delivery of this agenda is vital to all the global sustainable development goals across the entire piece, and not just to the most obvious ones—1, 8 and 9. We will not see a reduction in world poverty of the order that we want unless we get a great increase in inclusive growth. In the past, we have had growth that has not generated inclusivity or sufficient jobs. It is vital that we get inclusive growth, because as we have heard so often this morning, we need 600 million new jobs in the next decade; otherwise, we will have a growing army of underemployed, frustrated and increasingly angry young people. As we have heard again this morning, lack of economic opportunity, a job and a livelihood is the principal driver of migration. That has been going on for decades. Millions of people have dropped everything that they have known and moved from their homes to the unknown in pursuit of economic activity. We are beginning to notice it as we see that tide of humanity coming up from south-Saharan Africa. Nevertheless, that driver has existed for decades, and we have to address it by providing those jobs.

I accept that not any job will do. It is no good having jobs that enslave. That is why we are still concentrating our programmes on work and freedom. There is what we are doing with the International Labour Organisation in Bangladesh, and there is the ethical trading initiative and the responsible, accountable and transparent enterprise initiative. Those are vital, but in the end it all comes down to jobs. The Government have an important role in that regard. My hon. Friend referred to the importance of public services. Yes, public services are important; there are important jobs and roles in public services. It is precisely for that reason that we take—and manage—the very considerable risks of working through Government-provided services in places such as Nepal, where our healthcare programme is channelled through Government provision, although it is a corrupt environment.

I share the passion of the hon. Member for Islwyn (Chris Evans) for tackling corruption. He is absolutely right, and that is why our programme on governance under SDG 16 is so important to our economic development programme. It is precisely for that reason that we held the anti-corruption summit and, the day before, the summit to engage with civil society on how it deals with that. As I say, the hon. Gentleman is absolutely right: where elites hijack the lucrative parts of the economy and wreck it, that impoverishes everyone. When a person gets an important job in the Government or the civil service because they are someone’s cousin, rather than capable of carrying out that function, that leads to complete inefficiency.

Over and over again, we find Governments getting in the way of the creation of jobs, through unwillingness or lack of capacity to raise revenue to invest in the necessary infrastructure; a lack of regulation, or over-regulation; or a lack of contract law or any other law, or of the rule of law. All those things drive away investment.

The real engine of job creation is private sector-led investment. One of the principal barriers to that investment thriving is the lack of necessary infrastructure. A reduction in productivity of some 40% throughout Africa and Asia is accounted for by the lack of necessary infrastructure, and it is estimated that Africa suffers a vital reduction of 2.1% in its annual growth rate as a consequence of the lack of necessary infrastructure.

Some 1 billion people have no access to electricity, and 1.3 billion live nowhere near a road. We must address those infrastructure problems. There is an annual deficit of some $3 trillion a year, in terms of the infrastructure that we need to invest in. Most of that must be provided by Governments. Grant aid will remain important for filling about half of that infrastructure gap, but all investors will need to increase their ability to invest massively if we are to do that. That is why we are working with the World Bank and the regional development banks.

We are working on projects on hydroelectricity in Nepal and power sector reform and roads in Nigeria. We have launched Energy Africa, working in 14 sub-Saharan African countries to address the needs of 600 million people who are without electricity. Although we only launched the campaign last year, we have proved the root; we kick-started the campaign with the work that we did with M-KOPA, which has put in place some 300,000 solar panels that serve 1 million people. It has also used highly innovative methods, so that power can be paid for using pay-as-you-go mobile phones.

[Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)]

Where we have been relatively slow in moving to meet the infrastructure needs of Africa, the Chinese have moved relatively rapidly. Does he agree that that is not entirely unproblematic, because the Chinese do not share our commitment to human rights?

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[Sir Desmond Swayne]

The quality of our investment and the fact that we do not tie our aid certainly make our aid of a higher standard. I accept the hon. Lady’s challenge: we need to raise our game, and that is why we use the Private Investment Development Group to leverage more investment. Through an investment of $1.2 billion, we have secured $20 billion from the private sector and $9 billion from international financial organisations to provide early equity, long-term debt and guarantees to meet vital infrastructure needs. Equally, we use CDC, our development capital arm, to blaze a trail and show other investors that there are profitable opportunities even in the most difficult markets. We recapitalised that with some £730 million last year, and we are driving that into the infrastructure sector. CDC has backed some 40,000 GWh of production as a consequence of the move into the power market.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

On the point about opportunities, does the Minister agree that we need policy coherence between the climate change goals and economic development policies?

[Sir Desmond Swayne]

My hon. Friend is right. Climate-smart development must be integral to everything we do. It has to be a part of it. It is not a box to be ticked; it must be designed into the programme from the start.

My hon. Friend the Member for Henley (John Howell) mentioned the prosperity fund in his intervention on my hon. Friend the Member for Stafford. I take a slightly different view of the prosperity fund. We are spending all this taxpayers’ money creating opportunities and opening markets, and my breath is taken away when other countries simply move in and take the opportunities that have been created by that investment. The prosperity fund’s primary objective must be to reduce poverty. However, it is right that that fund should make British companies alive to the opportunities available to them. We will not tie our aid.

As an aside, I point out that 80% of our procurement is with British companies simply because they are the most competitive we can find, but my hon. Friend the Member for Henley drew attention to an important point in the piece. This is, of course, an enormous agenda. It is a whole trade facilitation agenda, and my hon. Friend mentioned the importance of trade envoys. We spend about £1 billion a year on trade facilitation and improving the ability of the least developed countries to enter our markets and to trade effectively. Trade dwarfs aid. It is a vital part of the agenda. The hon. Member for Bradford East raised the vital issue of urban planning. It is precisely for the reasons that he gave that we launched the new programme for economic development in cities, and that will be driven forward with a will.

The whole piece, including TradeMark East Africa and the trade facilitation agenda, is part of the drive for economic development that is at the centre of everything that we do regarding the provision of jobs. I come back to a point that has been made several times this morning: it is all about jobs. We need 600 million high-quality new jobs that will not impoverish and enslave people. That is what we have to deliver. I defer to my hon. Friend the Member for Stafford to sum up the debate.

Foreign Aid Expenditure

Desmond Swayne Excerpts

Monday 13th June 2016 Westminster Hall

[Steve Double]

I thank the hon. Gentleman for that intervention. [Interruption.] I will give way to my right hon. Friend the Minister.

[The Minister of State, Department for International Development (Sir Desmond Swayne)]

Of course we fund the Palestinian Authority. Our funds are paid to named civil servants and pensioners from an audited and scrutinised list for the delivery of public services. British taxpayers’ money does not fund terrorism.

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[Joan Ryan (Enfield North) (Lab)]

Three weeks after Labour won the 1997 general election, we pledged that Britain would meet the UN target to spend 0.7% of our gross national income on international development. That is one of the acts of which I am most proud from our time in office. I do not deny the important role that the Liberal Democrats and the Conservatives have played in ensuring that it has become a cross-party national commitment—one that only a handful of countries in the world have met.

However, none of us who support international aid believes we are writing the Department for International Development a blank cheque. We must always ensure that aid meets three tests: it must be effective and transparent, and it must reflect our country’s values. In the case of the aid we give to the Palestinian Authority, we are failing those three tests. Let me give one example: the issue of the PA’s payments to convicted Palestinian terrorists, including, we must assume, Taleb Mehamara, the uncle of the Sarona market murderers, a member of a terror cell that in 2002 targeted Israelis, killing four in a shooting attack. We are not talking about, as one DFID Minister claimed in 2012,

“social assistance programmes to provide welfare payments”.

Instead, by operating a perverse sliding scale where people receive more money the longer their sentence—in some cases as much as five times the average monthly wage in Ramallah—the payments actually incentivise people to commit the most terrible acts of violence. I simply do not see how that advances the cause of a two-state solution. What are the Government doing about it?

Last month, Palestinian Media Watch showed how the PA sought to deceive international donors by shutting the Ministry of Prisoners’ Affairs and claiming that the Palestine Liberation Organisation would assume responsibility for those payments, but that was merely financial sleight of hand.

[Sir Desmond Swayne]

I have had discussions with the Prime Minister and the Finance Minister of the Palestinian Authority and other officials, and I continually make the point that the right hon. Lady rightly makes: if these are welfare payments, they must be made like welfare payments. The reality is that we do not pay them. Our taxpayers’ money goes to build the Palestinian Authority so it is able to morph into the Government of a Palestinian state when that opportunity arises. We pay named civil servants to provide public services.

[Joan Ryan]

I think the Minister understands the point I am making and wilfully will not look at this. In fact, the payments we make enable the Palestinian Authority to make its payments to prisoners.

In 2015, the PA raised its annual transfer to the PLO via the Palestinian National Fund to 481 million shekels—the amount it needed to fund the newly created PLO Commission of Prisoners’ Affairs. That amount was virtually identical to the budget of the old PA Ministry of Prisoners’ Affairs—the point I am making to the Minister. I wrote to Ministers last month demanding that direct aid to the PA be suspended while these serious allegations are investigated. In response, I was told by Ministers that the Palestinian Ministry of Finance has confirmed to DFID—we have heard this again today—that

“prisoner payments are fully administered”

by the PLO. With respect, I urge Ministers to dig a little deeper. They should be asking questions about the source of the money, not who is doling it out.

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[Andrew Percy]

I am conscious of time, and I will perhaps give way to the Minister in a moment. The hon. Gentleman is entirely right in a lot of what he says. The Overseas Development Institute stated that our aid money to the Palestinian Authority had failed to promote peace and a peaceful attitude. There is more to be done.

I mentioned a terrorist who confessed that he had engaged in his behaviour to obtain payments. I also want to mention NGO funding, particularly the Ibda’a cultural centre, which will receive £5,602 from DFID this year. Last year, it hosted an exhibition to honour martyrs, including Mohanad Al Halabi, who killed one and injured 11. We must be careful about where our money is going and always be prepared to review.

[Sir Desmond Swayne]

rose—

[Andrew Percy]

I will give way to the Minister out of respect.

[Sir Desmond Swayne]

Let me say that we take the issue of incitement very seriously indeed. With respect to the hon. Gentleman’s point about The Jewish Chronicle, I assure him that both I and my right hon. Friend the Secretary of State keep that matter under review continually, precisely because it is so controversial. With respect to the matters raised in relation to integration and so on, I understand that I am receiving a delegation from the hon. Member for Dudley North (Ian Austin) to discuss that on Wednesday.

[Andrew Percy]

I thank the Minister and I hope that he will look at the Ibda’a cultural centre grant that I mentioned.

In my last minute or so, I want to talk about some of the co-existence projects. We had a wonderful meeting last year in Jerusalem with a group of Palestinian and Jewish young people from MEET—the Middle East Entrepreneurs of Tomorrow. It was a really inspiring meeting. Those Palestinian youth and Jewish youth were being educated together. Both were very open about what they thought about each other beforehand and how that project had helped to bring them together. We should be supporting projects such as that, as we should—in these last 46 and a half seconds—be supporting Save a Child’s Heart, which I am proud to serve as a UK patron of. It is a wonderful charity. I was very moved when we visited it last year, particularly when we were meeting and talking with the young Gazan children who receive treatment through it. That organisation supports heart surgery not just for Palestinian children—it is mainly Palestinian children, with Israeli doctors—but for Tanzanian children and Iraqi children. It trains doctors and nurses and is a project that has a reach beyond just Israel and the Palestinian territories. I hope that that is one of the projects we can look at funding in the future.

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[Patrick Grady (Glasgow North) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Gapes. I pay tribute to you and to the previous occupant of the Chair for having been able to call so many Members—admittedly, though, not everyone who wanted to get in has been called. I am aware that a number of Members came along to show solidarity with the debate without any intention of speaking or expectation of being able to do so, but that emphasises the point rightly made by the right hon. Member for Sutton Coldfield (Mr Mitchell) that this is the kind of issue that thoroughly deserves a full day’s debate on the Floor of the House. I am happy to back that call.

I refer to my entry in the Register of Members’ Financial Interests. Before the election, I worked for the Scottish Catholic International Aid Fund and was the vice-chair of the Network of International Development Organisations in Scotland.

One message that comes through loud and clear from the debate is that aid works. No one is disputing that aid from the United Kingdom Government, and indeed from the Scottish Government, has saved and changed millions of lives around the world over the years. There is a consensus about that and there does not, fortunately, seem to be any suggestion that aid should stop altogether. The substance of the debate seems to have been the effectiveness of aid and the appropriate amounts of spending and, to a certain extent, questions of public support for aid. I think that there is public support.

The debate was triggered by a petition—these Monday debates are becoming something of a highlight of the parliamentary week, which is to be welcomed—but there is a difference between a petition that people voluntarily sign and broader indications of public support. Repeated opinion polls show that a majority of people in the United Kingdom, and indeed across OECD countries, support the principle of aid. The point about public understanding was made relatively early in the debate. Interestingly, in 2011 a Chatham House-YouGov survey showed that the average estimate of UK aid spending was £79 billion, when in that year the actual spend was £8.5 billion. Polling across OECD countries consistently shows that people believe their Governments spend between 10% and 20% of their gross national income on aid and think it should be between 1% and 5%. In fact, the public think that more should be spent than is.

In my own constituency, the sum total of 95 people signed the petition, and only 5% of the signatories came from Scotland, which is far less than Scotland’s proportionate share. Mention was made by my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) of how our hon. Friend the Member for Glasgow North East (Anne McLaughlin) had primary schoolchildren who signed up to the Send my Friend to School campaign, and I have met primary schoolchildren from the Glasgow Academy who want to send the message to the Prime Minister loud and clear that children’s education must be an important aspect of our international development spend.

Three key points have been touched on in the debate, the first of which is the principle of aid itself and the importance of the target. The second is the impact aid makes and why it is in our enlightened self-interest to spend money on it, and the third is how we go beyond aid and the role of the sustainable development goals. I will try to touch on all three points and still leave plenty of time for other Front-Bench colleagues.

As I have said, there is a consensus that there is a need for aid. I join other Members in giving credit to Labour for the creation of the Department for International Development as a stand-alone Department, and to the Conservatives and Liberal Democrats, first for maintaining DFID and secondly for passing the legislation that was in all the party manifestos. I hope that the commitment remains in those manifestos, for which people voted and which they, and Members in this Chamber, have endorsed.

The need for aid is clear, as we have heard in the many statistics, stories and anecdotes we have heard. As the right hon. Member for Tottenham (Mr Lammy) said, 124 million children are out of school—63 million of them girls—and some 650 million people are living without clean water. That is why continuing to provide aid is incredibly important, and it is something to which the Scottish National party has given its long-standing support. Indeed, the White Paper on independence for Scotland suggested that an independent Scotland would want to go beyond the 0.7% target to about 1%.

If the principle is established that there should be aid, the question is how much and why. The 0.7% target was agreed 40 years ago. It is not just a target for the United Kingdom, as many Members have recognised; it is the target for developed countries around the world. It was calculated that it represented the amount of money that would need to be generated to end poverty and bring people up to an equitable standard of living comparative to that which we enjoy. If the UK had been meeting the 0.7% target ever since it was agreed in 1970, an additional £87.5 billion would have been made available for aid spending and perhaps some of that would have lessened the need for aid today.

[Sir Desmond Swayne]

Will the hon. Gentleman reflect on the fact that, if all the rich countries of the world had met that commitment when they made it, we might be dealing with very different problems now?

[Patrick Grady]

That is exactly my point. I did not necessarily mean what I said to be a criticism; I am trying to offer a bit of context about why the target is so important.

As the hon. Member for Aldridge-Brownhills (Wendy Morton) said, it is a proportionate target, so it will go up, or indeed down, depending on the strength of the economy. The hon. Member for Foyle (Mark Durkan) made an important point about how the target, and that predictability, allows people to plan and provide the step change—the gear shift—that is needed to really make an impact. Speaking of the need for and the importance of impact, the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) was absolutely right to address the hunger crisis in southern Africa. Predictable aid flows allow agencies to put measures in place that mean that when disasters strike, the resources are there to be mobilised immediately, rather than our sitting back, as the petition seems to suggest, and waiting for something to happen before scrabbling around and figuring out how much aid we can spend.

Aid does work. We have heard the statistics. My hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) said that every two minutes immunisation sponsored by a United Kingdom aid programme saves a child’s life. At the same time, no one is disputing that everything is not perfect, but my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East made the valid point that not everything is perfect in the NUS, or rather the NHS. Not everything is perfect in the National Union of Students either—[Laughter.] I do not see many petitions calling for the national health service to be shut down, although there probably are elements of the right-wing press that would support doing that.

It is right that questions have been raised about the use of funding in Palestine, and it is also right that the Minister has had the opportunity to respond. That is why we have structures of scrutiny in this Parliament. DFID is one of the most highly scrutinised Departments of Government but it is important to recognise the work that is done. Of course, DFID funds organisations by funding specific projects. It does not fund global headquarters for organisations. If an organisation wants to build a global headquarters, it has to get the funding from somewhere else and justify the spend to those funding sources. DFID gives money for specific projects that are fully accountable back here, and that is why we have this kind of debate.

A point that has so explicitly been made by many today is that this is not just a moral argument. Aid is in our enlightened self-interest. Some members clearly want to prevent migrant flows, displacement and the spread of tropical diseases, and investment through our international development funding is absolutely crucial to that. However, as has also been said, not least by the chair of the International Development Committee, the hon. Member for Liverpool, West Derby (Stephen Twigg), aid is only one part of the development process. We have to look at how we go beyond aid, and ultimately get to the stage at which it is not as necessary because countries are able to stand on their own two feet. There is a need for fair trade arrangements, support for civil society and good governance, the development of national infrastructure, fairer tax treaties—mentioned by the right hon. Member for Orkney and Shetland (Mr Carmichael) —and fair and effective implementation of the sustainable development goals. A coherent policy approach across the whole of Government is something that the Scottish Government are keen to take forward, and I hope that the UK Government will do so too.

It would be useful to hear from the Minister when DFID expects to publish its bilateral and multilateral aid reviews. It would be interesting to hear any further reflection he can offer on double-counting towards the NATO and Overseas Development Institute targets, and to know how DFID plans to drive forward the sustainable development goals across Government.

I am a big fan of my tartan ties, and the one I am wearing is the Zambia-Scotland tie. As with many tartans, it is an expression of solidarity, and solidarity ought to be, as I said in my maiden speech, the basis of human relationships.

--- Later in debate ---

[The Minister of State, Department for International Development (Sir Desmond Swayne)]

It is a privilege to follow the hon. Member for Hackney North and Stoke Newington (Ms Abbott). She is very well informed, and she speaks on the subject with passion. If I may, I would like to take the speech of the hon. Member for Glasgow North (Patrick Grady) as my own; it was excellent.

A number of my constituents have been driven into a state of apoplexy by stories of how their hard-earned tax money is shovelled out the door without scrutiny of any kind, particularly towards the year end. I am glad that I have been able to refer them to the dfid.gov.uk website, where they can find a point-by-point rebuttal of all the accusations.

I respect the petitioners, however, and I thank them for the opportunity that they have afforded us to debate this important issue. I am glad that a number of Members have used the opportunity to evangelise about international development aid, and I want the debate to go well beyond this Chamber. My ambition is to ensure that by the end of the Parliament, more people write to thank us for what we as a kingdom are doing on international aid than to complain about the level of it.

I have a duty to represent all my constituents—not only those who have written to me complaining about the level of international aid, but those who have been tweeting all day about how proud they are of our international aid. Equally, I must represent the views of the 99.99% of my constituents who have expressed no opinion whatever. I am glad that the right hon. Member for Tottenham (Mr Lammy) reminded us that we have a leadership role as Members of Parliament; our job is to bring our constituents information, to persuade them and, dare I say it, to bring enlightenment.

The UK aid strategy sits firmly in our security and defence strategy. The 0.7% spent on international aid and the 2% commitment to NATO are the 2.7% that we spend, in our international interests, on securing a safer, more stable and more prosperous world.

[Patrick Grady]

rose—

[Sir Desmond Swayne]

I know what the hon. Gentleman will say, because we have had the argument before. We may secure our national interest through the ability to deploy lethal force, but I put it to the House that often, the deployment of soft power is a much more effective tool of policy. There is no doubt among any of us that it was in our national interest to spend hundreds of millions of pounds on securing an end to the Ebola epidemic. Without doubt, had it been allowed to spread, it would have come to us and caused terror and economic dislocation. Equally, our main effort has to be on economic development in the poorer parts of the world.

The reality is that in the end, everything is about jobs. In the next 10 years, the world needs 600 million new jobs if we are to avoid an army of underemployed young people who are frustrated and increasingly angry. We have to make investments. I am alive to the concerned expressed by my hon. Friend the Member for Stafford (Jeremy Lefroy) about development capital. We have to tackle the causes of poverty and injustice, because if we do not deal with those problems at source, we know where they are going: to our doorsteps and our shores. Aid is undoubtedly in our national interest.

Overseas aid is also undoubtedly controversial; it has to be. If I am spending British taxpayers’ money on helping the people of Bangladesh who live on the chars to deal with climate change and flooding, it is clearly not available to deal with flood defences in Durham, York or elsewhere. However, I put it this way: we have pledged to spend 0.7% of our national income on international development, which means that we have 99.3% to spend on ourselves. I do not know anyone who spends 99.3% of their income on themselves; I am not sure I want to know such a person, and I am not so sure that they would have any friends. That is equally true of a nation. What influence would we have in the world, and how could we carry our heads high, if that were the case, and we were to abandon this important pledge? It is important to focus what we spend, rigorously demanding value for money, and ensuring that we have the systems to secure that and to drive down costs, so that we get proper value.

I am sorry to see that my hon. Friend the Member for Newark (Robert Jenrick) is not in his place, because he referred to a low bar. I invite him to see me in DFID to explain to me and my officials what this low bar is, because I am the “low bar”. I am the one who has to be persuaded that the projects are value for money, so I shall be very interested to hear his explanation.

The reality is that over the past five years, we have delivered education for 11 million schoolchildren; 69 million people have received financial assistance and services to trade their way out of poverty; 29 million people have benefited from our nutrition programmes; 5 million people, as my hon. Friend the Member for St Austell and Newquay (Steve Double) said, have benefited from having healthcare professionals attend at birth; 63 million people have had access to clean water; 15 million people have been able to cope with climate change; 44 million children have been immunised; and we have delivered emergency care to 13 million people in the wake of 33 disasters. That is a measure of the importance of what we are doing.

The bit of the development picture that people get is humanitarian relief. They put their hand in their pocket to the tune of over £100 million after the Nepal earthquake. What we need to get over to them is that the people who appear suddenly to provide that relief and do the search and rescue have to have their core funds covered throughout the year when there is not an earthquake. The success of our intervention in the Nepal earthquake was built on years of investment in resilience beforehand; there was a blood bank in place and a logistics centre for the distribution of emergency aid, which saved seven weeks cumulatively. People rehearsed and rehearsed how to deal with the aftermath. This is what we spend the money on. I believe passionately that we have to get the democratic legitimacy from our people by persuading them. The moment we explain this to them, they get it. We need to hold their attention and get the opportunity to do that, and this debate gives us that opportunity, so let us build on it.

Foreign Affairs Council for Development

Desmond Swayne Excerpts

Thursday 26th May 2016 Written Statements

[The Minister of State, Department for International Development (Mr Desmond Swayne)]

My noble Friend the Parliamentary Under-Secretary of State for International Development (Baroness Verma) has made the following statement:

On 12 May, I attended the Foreign Affairs Council for Development in Brussels. The meeting was chaired by the High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the Commission, Federica Mogherini. She also hosted a joint lunch with the Afghan Minister of Finance, Eklil Hakimi, which discussed the preparations for the upcoming Brussels conference on Afghanistan, in September this year. A provisional report of the meeting and conclusions adopted will be deposited in the Library of the House for the convenience of members.

Revision of the European Consensus of Development in light of the 2030 agenda

The Council discussed the prospects of updating the 2005 European Consensus on Development—the EU’s overarching development strategy. Discussion of a new European Consensus on Development in light of Agenda 2030 focused on the links between development policy and the areas of security, humanitarian, migration. I led calls for a long-term approach, with our commitment to 0.7% and the “Beyond Aid” agenda at the heart of implementation. Also discussed was the need for modernised, innovative financial instruments, with general support for a greater role for the European Investment Bank (EIB).

Trade, private sector and sustainable development

Council conclusions on global value chains, which the UK had strongly supported, were adopted with agreement on the integral role of the private sector and trade for sustainable development. The garment initiative was held up by Development Commissioner Mimica as a good example of a multi-stakeholder and the “policy coherence for development” approach. I highlighted the UK’s promotion of the involvement of the private sector in sustainable development in recent years, and argued that it is clear that to achieve the 2030 Vision for sustainable development more investment capital is needed from the private sector.

Afghanistan conference

Discussions were held on the forthcoming Brussels conference on Afghanistan, and Council conclusions on this subject were adopted with the UK’s full support. The Brussels conference on Afghanistan in October 2016 is a key opportunity for the international community to reaffirm their ongoing commitment to Afghanistan’s security and development. During the lunchtime session, Afghan Finance Minister Hakimi presented the Afghan National Unity Government’s new national development strategy to the Council.

Joint programming

Council conclusions on joint programming were agreed, which stated that the approach will remain voluntary. I emphasised the point that local context is key when discussing the suitability of a particular programme. Consideration of this should drive decisions, and joint programming should complement, not replace, bilateral relationships and programmes. This view was echoed by a number of other member states and supported by the Council conclusions.

Migration and development

Council conclusions on forced displacement were agreed by the Council. More broadly on the subject of migration, Commissioner Mimica said that the emergency trust fund for Africa agreed at the Valetta summit in November 2015 was an important tool, and urged member states to support and contribute to it. I set out the UK’s support for the trust fund, but called for greater consistency in its operation, as well as an ongoing commitment to strong oversight. I also noted that the EIB could play a key role in responding to the causes of the migration crisis.

Preparation of the World Humanitarian summit

Conclusions were adopted by the Council concerning preparations for the World Humanitarian summit, which took place from 23-24 May in Istanbul. It was the first global summit on humanitarian issues, and it came at a time of unprecedented need. The Council were agreed that the summit would be an important opportunity to take ambitious and practical steps that will drive real change on the ground.

Attachments can be viewed online at:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-05-26/HCWS33/

[HCWS33]