EU: Budget

Lord Chidgey Excerpts

Thursday 17th January 2013 Lords Chamber

[Baroness Northover]

I thank the noble Lord for his question. He is well aware that the United Kingdom is increasing its own spending because it recognises the importance of supporting the poorest in the world, even when we are in financial difficulties. As far as the EDF and the EU budget are concerned, we scrutinise them very carefully for their poverty focus. We are encouraged by the direction they are heading in, so perhaps I can reassure the noble Lord in that regard. However, we will continue to keep up the pressure, as it needs to be poverty-focused. I point out that we are fifth in the league, as it were, in terms of ODA in the EU, behind Sweden, Luxembourg, Denmark and the Netherlands, all of which have gone beyond the 0.7%. The evidence is not quite as he indicated in terms of other countries. For example, there are increases from Germany, Italy and Sweden, so the picture here is not quite as he portrays it.

[Lord Chidgey]

Is my noble friend aware that the European Court of Auditors has just reported on its study of 48 EDF schemes—road transport programmes totalling over something like 2,500 kilometres—in the Sahel? It shows that, while it is by far the European Commission’s financially most important sector, it has been only partially effective in promoting policy reform that would ensure the sustainability of this massive road infrastructure investment. What is the Government’s response to the court’s recommendations that the European Commission should better focus European Development Fund resources and make better use of the conditions that it attaches to the programmes?

[Baroness Northover]

This report was published a couple of days ago, on Tuesday. DfID will produce a considered response, which will be scrutinised by Parliament. It is worth flagging up that, as my noble friend rightly points out, this looks at aid since 1995 in terms of road building and at whether the balance between road maintenance and road building has been sustained as it should have been. In the United Kingdom we know that when you are in constrained financial circumstances a balance must be struck between those two areas. I am sure that we can learn many lessons; nevertheless, it is not as though the balance between those issues is not also felt in other countries.