International Development (Scotland’s Role)

Iain McKenzie Excerpts

Wednesday 4th September 2013 Westminster Hall

[Anas Sarwar (Glasgow Central) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I am delighted to have been able to secure this important and topical debate, given the continuing humanitarian crisis in places such as Syria, Palestine, Burma and elsewhere, and what that means in the context of the upcoming referendum in Scotland. I am also delighted to have so many hon. Members from Scotland here, and I hope that they will take the opportunity to intervene during the debate.

It is vital that, during these difficult economic times, we recognise the fantastic work that the UK has done and continues to do in promoting and supporting international development. We are all rightly proud of that work. Let us not forget that the Department for International Development does exactly what its title suggests. Yes, one of its roles is to respond quickly to crises—to feed, to clothe and to provide emergency health supplies—but, crucially, it is designed to help and support developing countries to lift themselves out of poverty, grow their economies and create prosperity and opportunity for their own citizens. That is why DFID is a force for good in the world.

I have more than my fair share of criticism of the Government, be it on the economy or on welfare, but we must all recognise and pay tribute to the efforts of successive Secretaries of State to protect DFID’s budget. It is the perfect example of how we can maximise our impact by pooling and sharing our resources. It demonstrates the positive and powerful voice for change of the people of the United Kingdom—be they from Scotland, England, Wales or Northern Ireland—and the powerful voice that they have through their seat at the top table.

Who can doubt the UK’s positive influence on international development? Not only do we play our part, but we lead the way shaping global priorities, fighting poverty and creating opportunity. That is one example, among many, of how our collective voice is stronger—stronger in the UN, stronger in the EU, stronger in the G8 and stronger in the G20. Let us not forget that it was a Scot who, in 2005 as Chancellor of the Exchequer, got the G7 group of leading economies to agree to cancel up to 100% of the debt that was owed to them by developing countries. As a result, the debts of 18 of the world’s poorest countries to the World Bank and the International Monetary Fund were wiped out as part of a $55 billion package.

[Mr Iain McKenzie (Inverclyde) (Lab)]

I congratulate my hon. Friend on securing this important debate, and it is indeed a pleasure to serve under your chairmanship, Mr Davies. Does my hon. Friend agree that Scotland, if it were separate from the UK, would lose out on the UK’s experience and influence in the world to deliver such projects?

[Anas Sarwar]

I am coming to that point in a second. Everywhere I have travelled to while serving on the Select Committee on International Development—whether it was Palestine, Rwanda or the Democratic Republic of the Congo—I have seen Scots who work for DFID leading teams and leading the difference that the UK makes to some of the hardest-hit places around the world.

The same Scot who was Chancellor of the Exchequer in 2005 later, as Prime Minister, put tax transparency on the agenda for the G20 in 2009. Many hon. Members will have received correspondence from constituents asking them to support the Enough Food for Everyone IF campaign, which calls on leaders of the G8 countries to take concerted action against global hunger. I highlight that campaign because it recognises the instincts of internationalism shared by people from all parts of the UK, who want to make a difference based not on nationality but on need.

As part of the UK, we play a leading role on the board of the International Monetary Fund and the World Bank. The UK has far greater combined influence when we speak with one voice than we could ever hope to achieve by speaking in isolation. It is not merely our position of influence that is a force for good. The combined budget of DFID this year is £10.7 billion—more if other departmental spend is included—which is used to deliver real change, lift people out of poverty and intervene to save lives.

Scotland is not simply part of the delivery but at the heart of it. DFID’s historic Scottish headquarters in East Kilbride, in the constituency of my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow (Mr McCann), has had a 30-year presence and employs more than 500 people to fight global poverty. The East Kilbride headquarters has developed from a transactional and corporate support function into a core part of the Department with responsibility for bilateral and multilateral projects. I take this opportunity to pay tribute to the staff in East Kilbride, many of whom I have had the pleasure of meeting when I have visited, for the tremendous work they do.

As we have found in debates about defence, or about civil service jobs in Her Majesty’s Revenue and Customs, there would be no simple transfer of Scottish-based jobs or services to a Scottish Government if the country voted for independence. Such jobs serve the whole DFID operation, which would have to be disentangled. It is inconceivable that a continuing UK DFID would locate a third of its jobs in what would become another country. The inescapable fact is that those jobs are at risk. For the Scottish National party to suggest anything else would be merely an assertion not backed up by reality.

--- Later in debate ---

[Mr Duncan]

That answer shows that the hon. Lady’s so-called public sector jobs guarantee amounts to nothing and is a political deceit.

The UK’s global reach matters. We have a strong, professional DFID presence in 28 focus countries, and we have widely respected multi-million pound programmes, many of which are worth between £50 million and £250 million a year. Partner Governments seek advice from DFID, which translates into better development.

None of that would be possible without our staff. DFID’s size and ambition allows us to attract and retain the best talent. Front-line staff have technical and specialist skills, such as in economics, health, governance, social development and accountancy. Our staff are able to build fulfilling careers in an organisation with a wide scope.

So what should Scotland’s role be in the UK’s international development effort? Scotland already makes a significant contribution to UK international development, and the contribution Scottish taxpayers make to the UK’s total international development budget is important. DFID has a sizeable headquarters in Abercrombie house in East Kilbride. More than 600 staff in Scotland form an intrinsic part of the team that delivers the UK’s entire international development impact. Responsibilities at Abercrombie house range from professional oversight of DFID’s finance, procurement, human resources and IT functions to the development of policy and research agendas. Staff working equally from East Kilbride and London contribute to the coalition Government’s international development priorities, such as the Prime Minister’s push to end global hunger and malnutrition. The Department delivers excellent value for money for all UK taxpayers and provides significant high quality job opportunities in Scotland.

The Scottish Government have their own small £9 million programme, which is funded from the devolved budget and contributes to the UK’s official development assistance. Working relations between DFID and the Scottish Government are strong and there is regular contact and co-operation.

The real question is whether it would make development sense for an independent Scotland to start afresh and to develop the capacity to manage its own programme, aiming for 0.7%, or even more, of its own gross national income. It is not for us to speculate on how an independent Scottish development agency would or could operate; it is for those advocating independence to make the case that independence would have a greater overall impact on international development.

[Mr McKenzie]

Will the Minister give way?

[Mr Duncan]

I am just finishing.

We believe that the UK can have the greatest impact in the world if everyone works together as part of a UK that includes a vibrant Scotland. I am very pleased, and I warmly welcome the fact, that the hon. Member for Glasgow Central has so eloquently put that view.