Monday 13th December 2010

(14 years ago)

Lords Chamber
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Lord Brett Portrait Lord Brett
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My Lords, I join other noble Lords in being grateful to the noble Lord, Lord Hodgson, for bringing this debate before us. It seems to me that there are two truths that arise from it: the truth that the noble Lord started with—that this should not be a taboo subject—and that it requires full debate. This debate is too short, and four minutes too short a time for anyone to develop any part of the argument.

In the developed world, education, contraceptive use, maternal and baby health, increased development and subsequent income improvement have all played a major part. That is probably why I am the eldest of six children, the father of four children and the grandfather of two children. In the developing world, we see the same needs, and they see the same needs for the things that we have enjoyed, which is why the ODA remains important and why I join others in congratulating this Government on continuing the endeavour and ensuring that we get to 0.7 per cent of gross national income.

Noble Lords have referred to the added burdens that now exist in a way they did not exist in the past: the impact of climate change on developing countries, the HIV/AIDS pandemic and conflict between states and within states. Part of the flow that comes is international migration. That provides challenges and opportunities and guarantees that the subject raised by the noble Lord, Lord Hodgson, is worthy of a much longer debate.

Although the official ODA is important, so are the efforts of those in the diaspora from the developing world who are now part of the developed world who seek to assist their own countries, communities and families. I will resist adding to the plethora of statistics that are inevitably an essential part of these debates, but I will emphasise one point that was made by the noble Baroness, Lady Tonge, about the importance of remittances. They are a vital form of financial support. They provide better health and education for the family and are an aspect of the development of small businesses in so many countries. They are three times the size of official ODA aid. They amounted to some $325 billion in 2010 and were 1.9 per cent of GDP for all developing countries taken as a whole in 2009. In the small and lower-income countries, they form 5.4 per cent of GDP.

In a world in which billions of dollars can travel across the world in a microsecond, we should be able to produce a system that will reduce the cost and difficulty of people transferring small amounts of money. If you are living on a dollar a day or less, £10 in the United Kingdom is a week’s wages or more once it is transferred to the recipient. At the moment, it is difficult and costly to do that, and we should be able to make an impact on that as we are part of the most developed world of banking, even if bankers are not very popular at the moment. A fall in the cost of transfers of some 5 per cent would free an extra $15 billion a year for increased development.

I could go on, but time will not allow me to do so. I will also not pepper the Minister with a series of questions, which is what normally happens at this time. I do not think that anyone disagrees with the aim, although we probably have different ideas about how we go forward. My questions to the Minister are simply these. What is the Government’s long-term thinking in this area? Post the MDG period and 2015, where will we go and how will we take this forward? Finally, does she support my view and that of many others that we need a full debate on all aspects of this? The great expertise around this House could assist the Government in a joint endeavour that I believe we all support.