Foreign Aid Expenditure

Lord Austin of Dudley Excerpts

Monday 13th June 2016 Westminster Hall

[Steve Double]

I have read those reports, but I am assured by the discussions I have had with the Department that that is simply not the truth and is not taking place.

It is right that people have their views heard, and today we will debate the merits and issues surrounding the UK’s foreign aid spending. That is what the e-petition is all about. I am proud that this great country has a strong record of helping those most in need. Helping to save and improve millions of lives is no small task and is something to be incredibly proud of. I believe that as a human race, helping others is something we are designed and created to do. UK aid reaches millions of people across the world.

Let us consider some examples of what has been achieved. Some 11 million children have been supported through school. Some 47 million bed nets have been distributed, which has helped lead to malaria deaths falling by 60% in the past 15 years. Sixty million people have been given access to things that are so simple, yet so vital, and that I am sure each of us takes for granted: clean water, better sanitation and improved hygiene conditions.

[Ian Austin (Dudley North) (Lab)]

Will the hon. Gentleman give way?

[Steve Double]

I will just make some more progress. From scientific research, health and climate change to economic growth, education, governance and security, there are few aspects of life that our aid does not touch in many of the poorest nations of the world.

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[Steve Double]

I agree with my hon. Friend. We have to ensure that whatever money we have is wisely spent and delivered to the front line. When that is not the case, it needs to be addressed.

[Ian Austin]

The hon. Gentleman is right about the good work that DFID does, but he is completely wrong to say it is a myth that the Palestinian Authority fund terrorists. The fact is that nearly all of DFID’s funding in the region goes directly to the Palestinian Authority. That is a matter of concern because of the allegation that the Palestinian Authority continue to fund payments to convicted terrorists and their families, which is in direct contradiction to the demands of the international community.

[Steve Double]

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

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[Stephen Doughty]

I will come on to that point directly. It is absolutely right that any allegations of corruption or aid money being used by terrorist organisations, or any other allegations of that nature, are robustly and efficiently investigated. I have every confidence that DFID will do that. Indeed, we have the Independent Committee for Aid Impact, which the hon. Lady mentioned, which is investigating those very issues. I am convinced that we have one of the most robust regimes in the world, and it has been regarded as such by many other Governments.

The fact is that there is a paradox. If we operate in risky environments, some things will not work out. We would not say to a small business, “Don’t use your capital, because something might go wrong and you might lose some of it.” We would not say to our troops, “Don’t go in and fight that battle, because something might go wrong.” We should not say, “Let’s not give aid in risky environments, because something might go wrong with it.” On balance, we are far better off being in there trying to deal with the root problems and consequences than not engaging at all and pulling up the boundaries and saying, “None of this matters and none of it affects us.”

The fact is that corruption thrives in poverty and insecurity. We have withdrawn our aid from countries where there has been absolutely categorical evidence of it being used inappropriately. When I worked in Government at the Department for International Development, we removed aid from the Malawian Government when they said that they were going to spend it on a jet. We have never given money directly to many aspects of the Government of Zimbabwe because of concerns about that—we give aid through charities instead. To say the aid is all going to despots is completely wrong.

[Ian Austin]

I agree with much of what my hon. Friend is saying, but I just want him to understand that those of us who are concerned about the Palestinian Authority’s support for terrorists are not saying that we should withdraw, walk away and leave them to it—not at all. We are saying that perhaps some of that money would be better spent supporting projects that work across both communities, with Palestinians and Israelis, building dialogue and putting in place the building blocks of the peace process that we all want to see.

[Stephen Doughty]

The point I am making is a wide one. It is right to look carefully into any allegations of such a serious nature—and several have been raised today. I listened to what the Minister said about specific cases, but that is not the point I am making. I am speaking generally, with reference to the impression created by The Mail on Sunday petition. The fact is that the countries that our aid supports have been regularly reviewed. The coalition Government made different choices about which countries to support from the Labour Government that I was part of; but that was right—we should review those things. We have stopped giving aid to India, and places such as China—it was a difficult decision but I think it was the right one—yet a myth is perpetuated that we are still giving them money.

As has been said, there is increased independent oversight from the Independent Commission for Aid Impact, which, incidentally, reports to the International Development Committee, not the Government. That means there can be independent scrutiny of what our aid is being spent on . Things have also moved on in the sense that cross-Government co-operation has increased. I welcome the steps that have been taken to increase co-operation between defence, diplomatic and development activities, through the National Security Council. It is the right decision, and it ensures that we are co-ordinated across our international sphere. It is not a zero-sum game. I firmly support the 2% spending target for defence, but I also support the 0.7% aid target. I am in favour of supporting charities and those tackling poverty in my constituency, such as food banks, but I also support providing life-saving drugs to people dying from Ebola or HIV across the world. That is not a zero-sum game—we can do both. Indeed, if I want to ask why people in my constituency are living in poverty, I will have far more questions for the Government about some of their other policies than about what the international aid budget is being spent on.

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[Andrew Percy]

I mentioned patronising and sniffy, and the hon. Gentleman’s intervention is a prime example. It was so patronising it is not worthy of a response. Members are allowed to come to this Chamber and speak as they wish on a matter of international aid, and this is about international aid from British taxpayers’ money. The hon. Gentleman can patronise all he wants, but I won’t be silenced from saying what I think I am entitled to say in this Chamber on this issue.

[Ian Austin]

It is not just supporters of the Netanyahu Government who are concerned about this. The central point is that the Palestinian Authority receives our aid money because it has signed a memorandum of understanding with DFID which is underpinned by renunciation of violence and a commitment to peace. That is directly contradicted by funding terrorists, whether or not the money comes directly from the UK, and is directly contradicted by the Palestinian Authority’s routine incitement of violence. On both grounds, the Minister should be examining the matter in greater detail.

[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.

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[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Like so many other people who have spoken, I welcome and support the commitment of 0.7% of national income to foreign aid, but to depart from some of the comments that have just been made, and understanding some of the comments made earlier in the debate, I recognise that some of our constituents have concerns. However, I urge every Member of this House not to underestimate the power and the effect of the hysterical right-wing tabloid press, which has aggressively campaigned to discredit not just the 0.7% commitment but the idea of foreign aid altogether. That is not being snippy or sniffy, or whatever word was used; it is simply asking for more responsible journalism.

The commitment is the right thing to do. The UK has a good story to tell, and it is about time that we were on the front foot in telling that story, although of course we must ensure that what is spent goes where it is supposed to go. How much support we offer those much less fortunate than ourselves is a measure of who we are. As was said much earlier in this debate, the choice between austerity at home and aid abroad is a false one, and we should have no truck with it. We can gradually turn our backs and come around to the view that the people we are discussing live far away from us, and that it is not our problem, or we can continue to open our hands and hearts and recognise that such suffering in the world diminishes us all. It diminishes us even further if it is within our power to do more to prevent or mitigate it, and we do less.

I do not think that that is who we are. That is not who the people of Scotland are, and it is not who the people of the UK are. It is about time that we were prouder of and more vocal about the support that we give.

[Ian Austin]

There is a difference between being concerned about individual aspects of DFID spending and being opposed to international aid completely. The idea that the British people who have signed this petition are so stupid that they have been taken in by right-wing propaganda, and that we should dismiss their concerns out of hand instead of considering them and trying to address them with fair and reasonable answers, is completely wrong.

[Patricia Gibson]

What I am talking about is journalism that is not responsible. There are some—

[Ian Austin]

Are the public so stupid?

[Mike Gapes (in the Chair)]

Order. Mr Austin, please.

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[Ian Austin (Dudley North) (Lab)]

Nearly all the direct UK grant to the Palestinian Authority is provided through the Department for International Development’s “Statebuilding and Service Delivery Grant”, and the Minister must do much more to assure us that it is not simply being paid—untied and un-earmarked—into the central treasury account of the Palestinian Authority, and that the verification of the funds is more than simply a notional accounting exercise. The Overseas Development Institute concluded that it is of “questionable robustness” and “provides few fiduciary assurances”.

By contrast, as we have heard, just 0.2% of 0.2% of the money that DFID spends in the Palestinian territories goes to projects bringing Palestinians and Israelis together. I have visited the group that was mentioned earlier and that brings Israeli and Palestinian students together to break down barriers and acquire new skills. Actually, it would be quite useful if the Minister noted some of this down, so that he can answer the specific questions that he has been asked when he sums up at the end of the debate.

For example, can the Minister consider funding the Cherish Project and the One to One Children’s Fund, which tackle the mental health problems suffered by children affected on both sides of the Israeli-Palestinian conflict? Would he consider funding OneVoice, which gives mainstream Israelis and Palestinians a voice, helping them to campaign for a peaceful two-state solution? The Aviv Peace Impact fund creates jobs and boosts prosperity by investing in growing businesses that employ Palestinians and Israelis side by side. Also, will he go to Rawabi, a new city that I have visited, which has new homes for 40,000 people in the west bank, a hospital, sports and community facilities, a shopping mall, offices and a business park that will provide jobs and prosperity for thousands of Palestinians, but which needs support and investment? He ought to look at funding Rawabi.

I have some specific questions for the Minister. Will he publish the memorandum of understanding with the Palestinian Authority? Will he commit to DFID implementing the 2014 recommendations on prisoners?

[Joan Ryan]

I simply rise to ask my hon. Friend a question: does he agree that when we ask for this forensic analysis of DFID spend, we do so in order to support the 0.7% commitment, because if there is any question about that spend it will undermine the whole project?

[Ian Austin]

I agree with my right hon. Friend entirely and I am grateful for the extra minute that she has given me to speak.

I also want to ask the Minister whether he will tackle the Palestinian Authority on the evidence of incitement. We should use Britain’s aid spending to bring people together by promoting peace and co-existence, tackling poverty, and creating jobs for Palestinians by promoting trade and economic development in the west bank and Gaza. The British people would be proud to support projects such as the ones I have mentioned, instead of being so concerned about support for terrorists that they back the Daily Mail campaigns against international aid.

The truth is that British aid feeds 25 million under-fives, educates 11 million children, has helped 4.3 million babies to be born safely, has helped to tackle Ebola in Africa, feeds the starving, helps refugees and builds stronger economies around the world. It does all that and so much more, but I am afraid that it also funds the Palestinian Authority, which in turn funds terrorists, and that undermines much of the good work that it does.