(3 years, 3 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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It is a good thought. It is something that we are doing and will do. I will certainly discuss with our envoy for freedom of religion or belief, my hon. Friend the Member for Congleton (Fiona Bruce), how to make it as effective as possible. The networks are really useful to validate informally before we see what is happening on the ground.
On the point about communications, the Minister is aware that our own CDC and also Vodafone have invested substantial amounts in the new Ethiopia telecommunications partnership. Opening up telecommunications to people in Ethiopia is obviously a good thing for all the people, but, given the issues with money transfers, internet access and telecommunications being cut off, is there not an incongruity here? What will we do through those investments to ensure that we get telecommunications open in Tigray properly?
Various Members have talked about the size of the population of 120 million. My hon. Friend the Member for Tewkesbury (Mr Robertson), the able chair of the all-party group, has talked about a nation of optimism. This is one of the gems at the heart of our east African strategy. It would be a bastion of stability if we could build out and not have to resolve problems. Telecommunications is an essential good. It allows people to trade and allows cash transfers, so the investment is right. It is a long-term investment that we have talked about for years and will be deliverable going forward. It does seem incongruous to talk of Ethiopia as a place of optimism and investment, but we simply have to get back to that place when we get beyond this because that is where development happens.
There are echoes of the ’80s and Live Aid—we did a brilliant job, and Ethiopia has done a brilliant job in bringing itself up. When there has been a natural crisis, it has needed help, but it has also been able to help itself. We need to reset and get back to that position, but we are so far from that point at the moment.
(3 years, 4 months ago)
Commons ChamberI welcome the Minister’s response. The allegations of rape and sexual violence have shocked the world. I also welcome the recent comments by our permanent representative to the United Nations about the shocking attacks on humanitarian workers, including those in recent days. Unfortunately, we have heard increasingly inflammatory language from Prime Minister Abiy, and in recent days fighting involving Tigrayan forces has allegedly spread to the Afar region. With famine, violence and so many needs increasing, will the Minister confirm whether our total support to Ethiopia will increase or be cut this year?
We are committed to helping the community, and our support overall will of course increase, but I think the hon. Gentleman is talking not about support but about finance. Actually, what is critical is our focus on resolving the conflict, because only then can we get humanitarian partners in to deliver the aid. Aid convoys have come under attack and 600 vehicles are needed each week, so without a diplomatic effort to quell that conflict—for the Eritreans to remove themselves from Ethiopia and to quell the types of additional conflicts that the hon. Gentleman is talking about—any more money is not going to get through.
(3 years, 5 months ago)
Commons ChamberThe early announcements were part of existing ODA—they are repurposing. The 100 million doses are classified as ODA and will be in addition to the £10 billion ODA point that we had. So the most recent money is additionality, although my right hon. Friend the Member for Wokingham (John Redwood) made the strong point that there are a lot of areas that we do not count, partly because of the rules.
My hon. Friend the Member for Mid Derbyshire (Mrs Latham) talked of girls’ education, and we are increasing our pledge to the Global Partnership for Education by 15%, to £430 million, which is our largest pledge ever. Our G7 partners promised £2.7 billion to this cause, and the Prime Minister is hosting the global education summit with Kenyatta here in the UK in July.
Our fourth priority is humanitarian preparedness and response, where we will spend more than £900 million, although my opposite number, the hon. Member for Cardiff South and Penarth (Stephen Doughty) rightly raises concerns about places such as Ethiopia and working out where we spend the money. Yes, we should get humanitarian access and we need to deliver that access—I made reference to that in an earlier debate in this place —but bringing peace and security to that country is the most critical thing, which helps the fusion with diplomacy.
I am not going to give way yet, but I will come back to the hon. Gentleman if there is time.
Our fifth priority was science and technology. The sixth one was open societies and conflict resolution, which drives some of these problems. All too often we spend our money on problems that could have been solved early on. The final priority is economic development and growing GDP per capita in the developing world so that they pay tax and get functioning systems as we would have. In that light, we are supporting the continental free trade area, which will drive growth in countries, and we are expanding our diplomatic network.
My hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), who chairs the Foreign Affairs Committee, mentioned Niger, Chad and Djibouti, all of which I will be hoping to visit in the near future, and a number of people mentioned the large number of multilateral bodies we are and will continue to be pre-eminent in.
The British Council is the second leg of this debate. We are strongly committed to the British Council. We have allocated more than £600 million since the pandemic to secure its future, which includes a 27% increase on funding this year. I know hon. Members wanted more, but in the context of an aid cut the British Council has done incredibly well out of the settlement, because of the value people see in it—we have seen that across the board.
Let me address some more specific comments. My right hon. Friend the Member for Maidenhead (Mrs May) talked about the linkages. One thing an integrated Department allows is for us to look at the linkages between modern slavery and girls’ education, which is the example she chose. She criticised us for operating in silos, but, again, bringing together the Departments has helped. A number of Members expressed concerns about a loss of expertise; actually, changes to the total operating costs ratio—a bit of a technicality—mean that we can do more in-house, which should help.
An hon. Member asked about our staff in Abercrombie House; we will be increasing the number of staff in Abercrombie House and in Scotland.
My hon. Friend the Member for Tonbridge and Malling criticised us for making admirals ambassadors and honourable consuls captains. I get his point, but we are not merging with the Ministry of Defence. I could talk about some of the best people in my team—for example, the director general, Africa was an economist, focused on aid, was an ambassador and is now back here doing a cross-Whitehall job. I could go on with many examples of people across Whitehall.
The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) asked us to support the special drawing rights. I have spoken to the right hon. Gentleman about the matter and I have said openly that we are lobbying for that at World Bank-IMF meetings. We support the recycling of SDRs to the developing world. The right hon. Gentleman also mentioned IDA replenishment, which we support and are working on.
The hon. Member for Oxford West and Abingdon (Layla Moran), who is no longer in her place, mentioned funding for a specific project and felt there would be adverse effects if it was cancelled because of a new variant. I would very much like more information on that from her.
My right hon. Friend the Member for South West Wiltshire (Dr Murrison) is an ex-Minister and clearly understands the dynamics of having to make difficult decisions, particularly in respect of balancing aid issues with education and law and order. He asked about the logistics of COVAX; I would love to draw on his resource, but we are also working with Africa CDC.
My hon. Friend the Member for Rother Valley (Alexander Stafford) offered an equally passionate but slightly different view from that expressed by the hon. Member for Rotherham, but it was good to see them both get praise.
My hon. Friend the Member for North East Derbyshire (Lee Rowley) made a very thoughtful speech that challenged everyone.
As ever, my hon. Friend the Member for Southend West (Sir David Amess) made very good points. Given his penchant for publicity and flair, I have no doubt that he will be on the front page of the Southend Echo tomorrow, not me.
The least said about the speech by my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) the better, really; certain things should stay in private.
My right hon. Friend the Member for Bournemouth East (Mr Ellwood) made a deeply thoughtful speech that he said was from the defence perspective but actually ranged much more widely beyond that.
I heard an impressive speech from my hon. Friend the Member for Bury South (Christian Wakeford), whom I have not heard speak before. He went from 10 minutes to eight minutes to three minutes and back to eight minutes.
I heard my first speech from an Alba Member of Parliament. I noted down initially that the speech from the hon. Member for East Lothian (Kenny MacAskill) was kind, thoughtful and well informed; by the end I put “ranting”. But it was all the better for it and when in future I see his name on the annunciator, I am going to rush into the Chamber.
(3 years, 6 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank my hon. Friend. This is indeed one of our largest aid programmes. He asked whether the UN and the AU could do more. Yes, always, but we are working with our UN partners very carefully. I have spoken extensively to the new political affairs, peace and security commissioner, Bankole Adeoye, about this issue. Sadly, I can confirm the World Food Programme’s analysis of famine-like conditions—IPC5. Clearly, we need to do more. My hon. Friend asked whether we could do more, and I can announce this afternoon that the UK Government will provide a further £16.7 million of aid from our regular programme elsewhere in Ethiopia and divert it towards the conflict in Tigray. He mentioned NGO access. That has improved since the early days of the conflict, but NGOs still do not have full access, and the land in Tigray is controlled by different combatants, which makes it even more difficult. He talked of hospitals. Hospital supplies were virtually at zero at one point, and from what we have seen from our five visits from the embassy and Her Majesty’s Government, only around 74 of the 264 hospitals are operating in any way, shape or form.
My hon. Friend also mentioned the Eritrean troops. They have no place in the Ethiopian conflict, and they have been asked to leave. They should leave, and we will work with all partners to ensure that that happens. Rather chillingly, he also asked whether the conflict could spread. We are concerned, with the election coming up and with the pre-existing instabilities in the Oromo region and the Amhara region on the Sudanese border, not to mention the issue of the Grand Ethiopian Renaissance dam, that there are a number of flashpoints, so it is important that we deal with this conflict as it stands at the moment and ensure that it does not spread further into the region and Ethiopia more generally.
I thank the hon. Member for Tewkesbury (Mr Robertson) for his strong words, and the Minister for his frank response. We have also repeatedly raised this horrendous situation. Indeed, I raised it with the Prime Minister in this House eight months ago, but tragically since then we have seen a worsening and deepening of the crisis. As has been said, Ethiopia has made huge strides forward on poverty, and our aid, trade and friendly partnership has been hugely important. We all want to see a prosperous and democratic Ethiopia, but the war and famine of the 1980s are seared into the memories of the British people and the world, so it is especially heartbreaking to see the current famine and to see civilians being hacked to death, rape, the destruction of food and health capacity, tens of thousands displaced and hundreds of thousands cut off from assistance. We must now speak forcefully and frankly, and most crucially take action in the face of the growing and incontrovertible evidence. We have a clear responsibility to act and to protect and assist Ethiopian civilians.
The UN human rights chief has spoken of potential war crimes and crimes against humanity, and the G7 spoke this weekend of a humanitarian tragedy, with potentially hundreds of thousands living in famine conditions, so has the Prime Minister spoken to Prime Minister Abiy or any of the other key players, not least following the G7 this weekend? If not, when will he do so? What action are we taking at the Security Council and the Human Rights Council with the AU to bring about an end to the conflict, full humanitarian access and a full independent investigation into the allegations of human rights abuses?
There is clear evidence of a serious food crisis, as the UK envoy and the UN have said, with huge numbers of people at risk of famine and food emergency, so this is the wrong time for us to be slashing humanitarian aid, as the House has made repeatedly clear. The Minister mentioned £16.7 million being diverted. However, the UN humanitarian chief pointed out last week that the UK had provided $108 million to Ethiopia last year, but that this year we have reported only $6 million. Can the Minister clarify that, and tell us when we will be urgently increasing our total assistance? I share his concerns about Eritrean troops. Have any actually left, or are they still there? It has been claimed that they have left, but I have yet to see any evidence of that. Will he also consider targeted sanctions and measures against any individual, from whatever side, who is found to have committed human rights abuses, war crimes or other atrocities?
I thank the hon. Gentleman for his long-standing interest in this issue, through oral questions in the House and through parliamentary questions as well. We share the desire for a return to a democratic and prosperous Ethiopia. That was at the centre of the east African strategy, and we will work more closely with the United Nations in particular, and with UN organisations and local organisations, to ensure that all perpetrators are brought to account. The primary relationship with Prime Minister Abiy is with the Foreign Secretary, who met him on an east African trip and who I know retains that dialogue. I do not know specifically when the Prime Minister last spoke to Prime Minister Abiy, but I will certainly let the hon. Gentleman know.
On the aid level, I thank the hon. Gentleman for welcoming the small redirection of aid moneys. I do not recognise the numbers that he talked about, but I am more than happy to have a dialogue with him around that. Obviously, multilateral spending in addition to bilateral spending makes the situation slightly more complicated, particularly as we are diverting more money into the region. I think those are the main issues that he raised. If I have missed any, I will pick them up during other answers.
(4 years, 6 months ago)
Commons ChamberGlancing down at my notes, I think I have about 50 things to come back on. To assist the House, I will keep my comments to five minutes and then look through the report of the debate forensically and come back with some of the more technical detail where individuals have asked me questions, but I will try to cover everything.
I assure the House that we are completely committed to development. We are completely committed in the longer term to funding through these two long-standing mechanisms. This is not just something for today; it is something for the future. We are committed to the African continent specifically and to our Commonwealth partners, including Tanzania and Zambia, which were mentioned. Sadly, because growth in Asia is in excess of growth in Africa, it is probably inevitable that over the next 25 years there will be more poor people and people in extreme poverty in Africa than elsewhere. If anything, that will mean that we have to refocus more, not less, assistance on that area, separate from the broader debate that is being had.
A number of points were made about the ADB and how we leverage our shareholding. We leverage our shareholding in many ways, but at a very high level we have helped leverage 40% of investment into climate. There were concerns about money being focused on the poorest; 90% is focused on fragile states, partly because of how we have leveraged our shareholding.
I listened carefully to my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). I do not quite know why he ate the sandwich of my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), but that is perhaps due to a lack of familiarity with the terminology. My right hon. Friend the Member for Sutton Coldfield is incredibly well-informed.
As I go round Africa more generally, his name often comes up not only in obvious places such as Abidjan and Kigali, but across the continent. He is hugely respected. I look forward to working with him. I have already had an initial chat with the previous president, Donald, and look forward to working with the current president and other individuals.
On the important point about the constituency of which we are a member alongside Italy and the Netherlands, we are proud that we have someone from DFID representing that constituency at the moment. I am interested to see how we can build on that and I particularly welcome my right hon. Friend’s highlighting of solar energy across the Sahel, which is a really important issue and a really important region. It is the only region that was explicitly mentioned as part of the five shifts in NSC strategy.
There were various contributions from Scotland. I am a little confused because I thought that the Conservative party was moving towards the SNP position of having a single Department, which I agreed with rather than the position that was suggested today. I understand the points that were made. On a more consensual point, let me say that, as well as being the Minister for Africa, I am the Minister for Abercrombie House, and I look forward to visiting it, talking to employees and assuring them of their job security during this transition. I know that it is a concern for individuals, particularly for those who are away from Whitehall.
My right hon. Friend the Member for New Forest West (Sir Desmond Swayne) raised a number of issues, including the inter-relationship between trade and migration, which is important. I remember fondly our meetings at airports around the world. Sometimes I knew that he was going to be there, and sometimes it was a surprise that he was there, thus demonstrating that we need to be a little more co-ordinated across Whitehall.
My right hon. Friend the Member for Epsom and Ewell (Chris Grayling) went into a little more detail, eloquently, on forestation. I was particularly interested to hear about the work in the Congo Basin and would like to speak to him more about that. On the reforestation of palm oil areas, we are very aware of the problems of palm oil more generally.
My hon. Friend the Member for Aylesbury (Rob Butler) talked about effective performance, which was also raised by the Opposition. Let me report back on some of those figures: we held back 25% of £152 million sterling—£38 million sterling—in June 2018, £30 million of which was released in October, based on progress and a performance plan. In 2019, we did not withhold any further—
Given that these orders are made under the International Development Act 2002, does the Government have any plans to change or amend that Act given the importance of all these orders being focused on poverty eradication?
That is a legitimate point, but I am not sure how it relates directly to the SI. I am not aware of any changes, which might perhaps give the hon. Gentleman some reassurance. There is some additional information about the other fund, which I will write to him about.
I thank my hon. Friend the Member for Aylesbury for his points on foreign direct investment in Africa, which is incredibly important, whether it is through some of these funds or completely independent of Government institutions.
My right hon. Friend the Member for Sutton Coldfield raised the issue of trust funds. We have very few trust funds at the African Development Bank, but we are supporting initiatives on sustainable energy, climate risk finance and women’s economic empowerment and very much welcome a discussion around how we can use trust funds more effectively through that fund. Having lived in Abidjan as a 20 year-old, I am keen to get back there and talk to him more—[Interruption.] He is looking shocked. I am not sure whether that is because I was once young, or that I was once in Abidjan. Perhaps it is both. I was aware of the African Development Bank back in my time at Barclays in Abidjan and I look forward to getting back as alternate governor. I was asked who would be representing the bank. I suspect, given the changes, that as deputy governor or alternate governor, I will be spending a bit more time with all the regional development banks. Even prior to the changes, I was going to be the primary person dealing with the African Development Bank.
I welcome the consensual nature of this debate, particularly given the context. I can reassure the House that, in my heart and the heart of Government, we are trying to do the right thing by development. This merger is very much about trying to bring the full force of HMG together, not shifting from one foot to an entirely different foot.
Question put and agreed to.
Resolved,
That the draft African Development Bank (Fifteenth Replenishment of the African Development Fund) Order 2020, which was laid before this House on 19 May, be approved.
Resolved,
That the draft African Development Bank (Further Payments to Capital Stock) Order 2020, which was laid before this House on 19 May, be approved.
Resolved,
That the draft African Development Fund (Multilateral Debt Relief Initiative) (Amendment) Order 2020, which was laid before this House on 19 May, be approved.
Resolved,
That the draft International Development Association (Nineteenth Replenishment) Order 2020, which was laid before this House on 19 May, be approved.
Resolved,
That the draft International Development Association (Multilateral Debt Relief Initiative) (Amendment) Order 2020, which was laid before this House on 19 May, be approved.
(5 years, 2 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank the hon. Lady. It is important that, as well as my saying it, Government communications rebut the inaccuracy. I will make sure that that happens rapidly and in the right forums across Northern Ireland and the rest of the United Kingdom. I thank her for that. I will do that. It is not something I was immediately going to do, having said it in the House, but it is certainly something I should do, and it is a helpful suggestion.
Can we just be clear here? The Minister said earlier that there would be no customs checks at the border, which obviously suggests that they will be done elsewhere, yet he suggests that what RTÉ is reporting is untrue. He has now just had to correct himself. The Prime Minister said that there would be customs checks in Ireland. So who are we to believe in this process? None of those things are compatible and none of them appear to be compatible with section 10(2)(b) of the European Union (Withdrawal) Act 2018, let alone the Belfast/Good Friday agreement.
To clarify, the Government have no plans to put in those checks. We clearly cannot compel the Irish Government to do or not do anything.
(8 years ago)
Public Bill CommitteesQ You make a big point about the issue of prospective development impact and whether CDC can prove its impact. Were you concerned when you heard the earlier panel talking about investments in richer places that theoretically will lead to jobs for poorer people, as people perhaps move to cities and take advantage? Do you think that is a bit too hazy? Can you explain a bit more about where you felt the CDC could be doing better to demonstrate impact?
Tom McDonald: One of the things that struck me from the projects that I visited in Uganda and Kenya was the need for a portfolio approach. Some of the projects clearly will have more of a development impact, and some will clearly do better financially. Some of them are harder to measure than others, particularly if the investment is through a fund or an intermediary.
In the report we say that, despite Parliament having expressed some concerns in 2008 and 2009 about how CDC measures impact, CDC has still been a little slow to put together a comprehensive picture of the approach it would expect to take, together with DFID, to provide Parliament and the taxpayer with a good view of what impact looks like. I should say that we are not suggesting that there is some simple way of doing that. Measuring all the different indirect and direct effects of the investments is complicated. For example, to answer your question directly, there was a commitment in 2012 to put together a measure of what quality of employment would look like. It has not made much progress on that. It has plans in place to try to evaluate some of its major investments and to improve the impact reporting, but for us, it is about the pace and comprehensiveness of that reporting.
Q May I ask Sir Paul Collier a question in relation to the amount of capital that CDC has? There seems to be a view that CDC can absorb about £1 billion a year. Given your work on urbanisation and the vast amount of infrastructure investment that is needed, do you think that CDC could be challenged to spend much more on an annual basis or to ramp up to that point? That relates in particular to funding the urbanisation that Africa needs to attract the companies that you referred to earlier.
Sir Paul Collier: Africa is going through a rapid and very necessary urbanisation. Africa’s future is urban, but not all cities are environments in which ordinary people can be productive. You can have a mega-slum. At the moment in Dar es Salaam, the modal enterprise has one worker: scale zero, productivity zero, specialisation zero—doomed. Cities need to become platforms where proper firms can function. They need energy supplies and decent connectivity. That is what the infrastructure is there to do, basically: energy and connectivity. That is expensive.
Q CDC could spend £1 billion just in Dar es Salaam.
Sir Paul Collier: CDC needs to scale up and scale up fast. I am hesitant about tying it in knots trying to get precise measures for this and precautionary measures for that, when the reality is that there are no techniques out there. Everyone is trying to build better measures. The International Finance Corporation has just hired for the first time a chief economist at vice-president level, designed to do that. People are trying to develop techniques, but it is difficult. To my mind, CDC’s priority, now that it has got sound, motivated management, needs to be to scale up. The task ahead for Africa is to get both the infrastructure and the private firms in before it is too late.
Q Should not we be encouraging it to give more than £1 billion a year?
Sir Paul Collier: Yes, of course. The future of aid is to get decent firms to go to places where they will not make much money until there are lots more of them.
(8 years ago)
Public Bill CommitteesIt is actually £1 million, but my amendment is probing, as the hon. Gentleman’s is. What the hon. Gentleman is getting wrong—I do not think wilfully—is that the Minister does not need to present a business case and, indeed, he should not present a business case now. This is a figure that might be reached on the basis of drawdown and a request of the CDC with a business case which he will then analyse.
But the CDC has not made such a request and, as the NAO said this morning, it is the cart before horse. That is the problem. I do not expect the Minister to provide a detailed analysis of every single project that we will invest in over the next 10 years, but a paragraph in the explanatory notes and some vague assurances about market demand are simply not good enough. We are talking about spending, potentially, billions of pounds of taxpayers’ money. Would we suggest the same amount went to a non-governmental organisation such as Oxfam or indeed the World Bank?
Order. Will the hon. Gentleman stick to the issues in front of us? A discussion of Short money is not relevant here.
I am sure that my hon. Friends on the Front Bench will confirm that they are in full support. In fact, we have discussed the amendments at great length. It is simply a procedural point. I was not aware until I was informed by the Clerk earlier about the ordering of names, despite having been on many Bill Committees. I was informed by the Chair at the start that I would be called first because my name came first in the list. I assure the hon. Gentleman that the amendments have been fully discussed with the Front Benchers and have their full support. No doubt the Front Benchers will speak to the amendments in due course.
Fantastic. My Front Bench also seems to be aware of that situation. I look forward to listening to the SNP’s contribution on amendments 3 and 4 and to seeing how its Front Bench is taking things forward.
Amendments 1 and 2, which I tabled, are probing amendments. I had taken myself off to table amendments that increased, not decreased, the amount and was told that while it would be permissible to table them, it would not be permissible for them to be selected, because of the money resolution. I therefore want to enter into a debate about whether it is the right amount. I have tabled an amendment that would make it lower, rather than higher, although I believe that there is capacity to invest more money in CDC, and faster. I do not share the scepticism of others around the table. I hope to see the £6 billion target reached earlier, rather than later.
This morning’s evidence session was incredibly useful and covered a lot of the points and queries that I would have wanted the Minister to address in his remarks. With that in mind, I will not detain the Committee any further.
I am conscious of your admonishment not to repeat the arguments I made when I moved amendment 6, Chair. I will discuss a few other issues, specifically around the use of a statutory instrument in this way, the value of it and the way in which other replenishments and funding rounds are agreed for development finance institutions.
Many of the arguments that we have already discussed also apply to amendment 7, although I will come to one that we did not cover, but the fundamental issue is whether the Government should be given this level of power. There is a debate to be had about how much we give CDC, over what time period and with what caveats, but giving the Secretary of State the power to come back at the time of their choosing, which could be next week or in 10 years’ time, and not just increase the amount by another couple of billion but double it, is very significant. I am always extremely reluctant to grant Ministers such powers, whether they are financial powers or Executive powers.
We all know that despite the procedures of this House and the fact that many Members take an active interest in Delegated Legislation Committees and statutory instruments, secondary legislation often does not receive the same scrutiny as primary legislation. It often goes through on the nod or is scheduled on funny days when Members are not available. Obviously it is the responsibility of all Members to turn up and hold the Government to scrutiny, but given the debate we have had on the matter in this Committee and in the legislative process, it seems odd not to ask the Government to come back later with another Bill.
Let us not forget that a Bill was not required from 1999 to today, when only £1.5 billion was used. Even if there was an expansion, not to require another Bill for quite a significant period and just to put through another uptick, perhaps by a mischievous future Secretary of State or the current one, seems very odd.
I must come back to the Minister’s point about other development finance institutions and the processes they are subject to. Most development finance institutions, including the global health fund, the World Bank’s International Development Association, individual development banks and UN agencies, tend to go through replenishment rounds. They agree a set period, put out strategies and requests to donors for funding and come back on a three or four-year cycle. Those requests have to be justified so that we can scrutinise them and say whether we agree. Indeed, that is the very purpose of the multilateral aid review: to look into whether we are giving money in all the right areas and where we think some development finance institutions are underperforming.
I am concerned that, although CDC may be doing better in line with its 2012 plan, making improvements and shifting its focuses, as we have heard from the Minister, without any ability to come back and have a full, thorough debate about the nature of the organisation, the caveats that are placed on it and the overall cap of funding that it should receive, we are giving Ministers a completely open-ended power to increase that funding very significantly. Let us not forget that £12 billion is equivalent, roughly, to the annual aid budget—I know the Minister has made it clear that it will not be used in one year, but it is a very significant sum of money. We ought to be acting with real caution when giving Ministers such powers.
It would help if the Minister could be clear about the time periods he is looking at. If he is talking about 20 years, let us hear him say that. I would still be nervous even so, because a future Secretary of State or Minister might change their mind, but it would help to smooth the debate if we heard that statement from the Minister.
The other issue that the Committee did not discuss in our consideration of the previous amendment was the focus on sectors. I mentioned the problem of multiplying potential shifts into certain countries or regions, away from stated objectives; that argument applies equally to sectors. If we increased the limit to £12 billion, it would be magnified even further. I was concerned to receive an answer from the Minister today about certain sectors in which he stated that the CDC continues to disburse into some really questionable areas. One is private, fee-paying education—the CDC’s portfolio value in 2015 was £56.9 million. Another is private healthcare providers and services, in which the CDC had a total portfolio value in 2015 of £117.9 million. Its portfolio value in extractive industries—metals and mining—was £9.3 million; the portfolio value in palm oil, which we have discussed in relation to the Feronia case and other matters, was £20.4 million; the value of the investment in real estate is £147.7 million; and in fossil fuels, the current value of CDC’s portfolio is £250 million. That seems to me to be at complete odds with DFID’s wider development objectives for Government coherence.
To come back to the nature of the amendment—I can see Ms Ryan looking anxiously at me—those sorts of issue will be magnified even further by rapid increases in the budget without caveats being placed on it. Ms Ryan, you have rightly said that were we to vote on the amendment, and were it to pass, we would not get a chance to discuss some of those other matters, but the power being given here without assurances is simply not acceptable and I have great concerns about giving that power to Ministers.
I shall raise only two points. I made all the comments I could possibly make on amendment 2 in the previous debate, so I will not detain the Committee further. I am sure it is terribly bad form, but I hope, Ms Ryan, that you will not mind, if we are still sitting when the business in the Chamber gets to the Adjournment debate, which is on rail services in my constituency, Southend, that I rush off before any possible vote.
(8 years ago)
Commons ChamberAs I shall come on to explain more fully, there has been a significant change and there has been a narrowing, but there is still a significant difference. If we look at the bulk of the spending still being in India, we see a significant divergence from DFID’s priorities, as I shall come on to show. We were told that aid to India had ended, but apparently it has not.
This is also significant when coupled with an answer I received to a parliamentary question. I discovered that the amount of aid—ODA—to be spent by Departments other than DFID is set to increase from 18% this year to 26% in 2019. That is over a quarter of our aid spending going through Departments other than DFID. Even if we focus on the lower end of the implied proposal to spend billions extra via the CDC by the end of the spending review—let alone the £12 billion—we could be looking at anywhere from 35% to 45% of the DFID budget being spent, but not by DFID in the traditional sense. If the Secretary of State used her full power and more quickly than expected, it could be even higher. It is particularly ironic that the Secretary of State who promised us greater effectiveness, transparency and accountability in our aid spending appears to be willing to hand over billions of our aid funding to less transparent and less accountable parts of government.
The hon. Gentleman seems to be implying that aid spent through other Departments is a bad thing. He is shaking his head, which is good, because far from being a bad thing, I would view it as a good thing. If we are helping education institutions in developing countries, we should use the expertise in our Department for Education. If we are looking at tackling local government, it should not be looked at through the DFID lens, but should involve our expertise. The key thing is having the same standards across those Departments and meeting the high quality that DFID deploys.
I was shaking my head because I agreed with much of what the hon. Gentleman was saying, but my question is about the volume—the amount—and the fact that it is increasing so rapidly. It is well known that many other Departments have looked enviously at DFID’s budget and have attempted to take parts of its cash for many years. My questions are these. Is the aid being spent effectively; is it being used in accordance with the correct principles; and is it coherent across Government policy? As the hon. Gentleman will know, there are some fantastic examples of joint units involving the Foreign Office and DFID, but over a quarter of our aid budget is being spent on a massive increase, and that is a big issue.
Indeed. I apologise for not being present at that meeting, but, as you will know, Madam Deputy Speaker, I had other commitments at the time. Obviously, the hon. Lady cannot attend all the meetings of all the groups in the House at any time either; she and I are both busy people. I hope that the Committees will investigate those matters, not least because of the volumes that we are talking about, but also because of the lack of transparency when it comes to documentation and the ability to scrutinise CDC’s spending, not least through its use of tax havens.
These dramatic shifts—under the cover of a “minor technical change” that we should all rush through in the House—must always set the alarm bells ringing for those of us who seek to scrutinise the Government and their decisions. I do not want to spend long on this, but we must feel additional alarm when we look at the agenda of the Secretary of State and consider what she has said about the Department being scrapped and about money being “stolen” and squandered. She does not like some of the headlines that have appeared in the Daily Mail. Obviously, she does not like the headlines that have appeared in newspapers such as the Financial Times. However, we are now seeing wild claims and accusations in the right-wing press which are clearly coming from her Department. Indeed, her special adviser has previously called for the 0.7% target to be abandoned, and in 2013 in The Sun described aid as an
“unaccountable, bureaucratic and wasteful industry”.
Why does all this matter to the Bill? I believe that, faced with the legislative and political constraints of the cross-party support for the 0.7% aid target, the Secretary of State has opted for a stealthier route and has chosen to undermine the Department by diverting and reclassifying aid. I appreciate that others may not share my sense of scepticism, so let me now deal with three practical objections to the Bill. The Secretary of State said that she wanted facts, so let us have some.
I should make it clear at the outset that I am not opposed to the existence of a development finance institution of the CDC’s nature, or to its playing its part in our portfolio of international development efforts. Nor, obviously, do I oppose the funding of private sector projects. The development of a vibrant private sector, key infrastructure and the support of new and emerging businesses in the world’s poorest countries should be a key part of any balanced portfolio of development assistance, alongside investments in basic public services such as health, education, water, and support for agricultural improvement to tackle hunger and nutritional challenges.
The Secretary of State likes to give us the impression that she is the only person ever to have realised the importance of private sector development and trade to tackling poverty and promoting economic development, but the fact is that both have been at the heart of DFID’s work since it came into being, under Governments of all political persuasions. Supporting trade is crucial to international development.
I totally agree with the hon. Gentleman’s point that economic development has been important to DFID, but does he agree with me that successive Governments have been wholly unresponsive to co-ordinated work on economic development, whether we call it prosperity or trade? Successive Governments have not pulled that together and grabbed the opportunity, which could really help to grow continents such as Africa out of poverty. Much more should be done, and this House should be holding the Government and future Governments to account on this, and ask them to do more, not less, with the private sector.
It is a mixed record. We had a joint DFID-DTI—as I think the Department was called then—Trade Minister, my hon. Friend the Member for Harrow West (Mr Thomas), who did a lot of good work in trying to bring those things together, ensuring investment went to key infrastructure projects, different corridors in Africa and elsewhere, but it is a mixed record and the hon. Gentleman makes an important point.
There are many CDC investments that I and others welcome, which are well run and have delivered poverty-reducing outcomes in the poorest countries. We have heard about some of them today, such as those in Sierra Leone and Uganda. Indeed we were with the National Audit Office earlier today talking about some of the projects it had visited which clearly do justify our investment.
But where is the robust business case for such a large increase of billions of pounds of taxpayer spending? Why has this Bill been published before a CDC investment strategy? In the explanatory notes, the Secretary of State describes forecast market demand as the justification for the Bill. However, she has not explained this at all there; neither has she done so today, and nor did she in answer to a parliamentary question I put to her. I asked her to explain this concept of forecast market demand, but instead of an assessment that might justify this spending of up to £12 billion of taxpayers’ money, I was given some classic development waffle, such as:
“As set out in the UN’s Global Goals, urgent action is needed to mobilise”.
The answer did not go into any level of detail that we would expect on the spending of such a considerable sum of money.
Let me also be clear that, as Members may have gathered earlier, I am also critical of a whole series of actions and policies at the CDC that I am sorry to say occurred under the previous Labour Government; the sell-off of Actis was mentioned, and there was also excessive remuneration, and massive investments made in markets that already attracted foreign investors—which incidentally is still going on. These are just some of the issues that should have inspired tougher intervention. To give credit where it is due, many of the actions that the right hon. Member for Sutton Coldfield (Mr Mitchell) took in agreeing that new strategy took us away from some of the mistakes made in the past, but my question is whether they have gone far enough in justifying such a huge increase in the funding.
We should look at what the NAO said. Yesterday’s report noted:
“Our previous scrutiny of the Department’s oversight of CDC led to important, positive changes.”
It points to improvements in financial performance, organisation and prospective—let us return to that issue in a moment—development impact, as well as the clamping down on executive remuneration. The NAO also agrees that the strategy set by the Department in 2012 has been met.
However, as my hon. Friend the Member for Bridgend (Mrs Moon) pointed out, the question for the House today is not merely whether the CDC has made improvements on a previous record deeply mired in controversy, or whether it is now adhering to the strategy set for it—which we can argue was right or wrong—in 2012; the question before us is whether a good enough case has been made that the CDC is performing so well and so effectively that it should receive that volume of increase in funding versus other potential outlets for that development spending.
It is common sense that asking any institution, let alone one with a history of recent problems, to take on a significant increase in its funding over a short space of time may lead to less optimal outcomes and, at worst, failure. Were we proposing an additional £12 billion for those dangerous campaigning NGOs or the dastardly World Bank, or worse still the EU development funds, I have no doubt that the Government Benches would be crewed by the anti-aid brigade warning of the risk of our aid being “stolen” or squandered. But because it is for a more obscure part of our development finance architecture and has the words “private equity” and “private sector” associated with it, we seem to be willing to accept a lower level of assuredness.
I do not know whether the hon. Member for Enfield, Southgate wishes to respond, but I worry about the precedent such a measure would set. Things could go further: if people with strongly held objections to marrying divorcees have an opt-out, those with objections to marrying those in inter-faith relationships might ask for one. That is an important distinction when we are talking about state employees.
Is the hon. Gentleman aware that the registrar trade body has not made representations to the Government to ask for such an arrangement? It is somewhat bizarre that the Government are offering the trade body something for which it is has not even asked.
Indeed—the hon. Gentleman makes a strong point.
New clauses 2 and 3 undermine the fundamental concept that everyone should be equal under law, regardless of their sexuality. Public services—we should remember that registrars perform a public service—should be available to all without discrimination. We risk undermining that concept.