(5 years, 4 months ago)
Commons ChamberMy hon. Friend is absolutely right. We could take things even further because, in the commercial sense, if countries across the world are richer, that affords us new markets as well, which is in addition to the humanitarian reasons for aid that she rightly outlines.
DFID’s budget is around the £14 billion mark. While it is certainly a small part of our overall income, as was raised earlier, it is still a considerable amount of money. The aid budget has its critics and criticisms, of course, and I will come on to one or two of them, because some may be valid. Perhaps we can improve matters, and we should certainly never be satisfied with where we are, because we can always do better. We all have constituents who point out that some of our schools and our police are short of money, so if we are going to spend money abroad, helping people who are not from this country, then we must ensure that we spend it wisely and effectively, and this estimates day debate is about addressing the budget in the wider sense.
It is worth touching on exactly how aid works. This may come as a surprise to some, but DFID itself spends around 75% of the aid budget, with the other 25% being spent by other Departments, such as the Department for Business, Energy and Industrial Strategy, the Foreign and Commonwealth Office, the Department for Health and Social Care and the Home Office, and other outside organisations. Some of the aid that we provide is bilateral and some is multilateral, and I will come on to the difference in a minute.
The National Audit Office report, which came out just a few days ago, says that most of our aid is going to the right places and having a great effect, but it did point out that there is room for improvement. As I go through one or two areas in which we can improve, the observations that I will make are not in any way a criticism of our approach of our aid policy because, as the House has heard, I am supportive of it.
I thank the hon. Gentleman for being so generous in giving way. He is making a good point, but does he not agree that part of the reason why DFID is so good at focusing its share of the aid is that it is a discrete Department and not just part of another bigger Department? Does he share my concern that some right hon. and hon. Members have talked about amalgamating DFID into the FCO? Will he perhaps commit on the House’s behalf to talk to the candidates for the leader of the Conservative party to assure the House that DFID will continue no matter who wins the upcoming contest?
The hon. Lady raises a good point. I think it was Tony Blair who set up the separate Department, which provided it with focus. Thinking back before that, however, most right hon. and hon. Members would acknowledge the excellent work carried out by Baroness Chalker, even though the Department was then within the Foreign and Commonwealth Office.
I suppose there are two ways of looking at it. When I travel and meet DFID officials abroad, I often meet officials from the FCO, and maybe also from other Departments linked to it. Overall, I agree with the hon. Lady that this is such an important subject, and it obviously should have close ties to the Foreign Office, and probably to other Departments, too. As I say, 25% of the overseas aid budget is spent by other Departments, so there has to be a close link. I am probably persuaded that that should be the case. I will talk to the successful leadership candidate, whoever they are, about this issue in due course.
I mentioned that other Departments spend about 25% of the aid budget, and that proportion has increased significantly—it was 11.4% in 2013. That spending can be a good thing, because it draws on the expertise of those other Departments. In certain cases, money is provided that might not have been so quickly forthcoming if those Departments had to queue outside the Treasury for it.
However, the spending raises the question of whether these other Departments quite have DFID’s experience and expertise in delivering aid. The Department of Health and Social Care, for example, might be expert in handling health-related issues—I am sure it is—but DFID has that experience of delivering projects abroad. There is a question mark over whether we have got to the right level. Hopefully the Minister will give us some guidance.