International Development Policies

Lord Collins of Highbury Excerpts

Thursday 19th November 2015 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I will run through what I have to say very quickly. I thank the noble Earl, Lord Sandwich, for initiating this debate, and I congratulate the noble Lord, Lord Barker, on his excellent maiden speech.

The cross-party consensus on 0.7% would have been unthinkable 20 years ago—as evidenced by the noble Lord, Lord Lawson. However, we need to do far more to persuade many of the public. We should make the case every day we can that development changes and saves lives.

Today’s debate is less about how much we spend and more about how we spend it. Can a larger development budget be delivered by an ever-smaller department? As the aid budget rises, so must our ability to control it. That is why the role of the Independent Commission for Aid Impact is so important. I want to focus on its comments on the use of contractors to deliver UK aid. The effectiveness of that aid is reduced, ICAI argues, because of the arm’s-length relationship between DfID and the contractors, and a lack of strategic guidance on their use. However, what ICAI failed to address is the key comparison of the effectiveness of a private sector-led approach to poverty alleviation over a public sector-led one. The use of certain consultants, such as Adam Smith International, inevitably predetermines the policies that are implemented overseas, from privatised water to privatised education. Earlier this year, Global Justice Now published a study stating that the DfID’s funding of private sector health and education projects was driving inequality.

We know that public services can provide better value in developing countries, but in some cases that choice is not being given. This is crucial in ensuring that the needs of the poorest are met and that recipient countries’ ability to become self-reliant is increased. The Ebola crisis highlighted the importance of sustainable public health systems. I urge the Minister to ensure that the department and ICAI give this question the scrutiny that it deserves.

Last year, DfID launched an inquiry into the use of consultants and in its response pointed out that it had tightened procurement controls and ministerial oversight. However, what the department did not do was publish the full results of the inquiry. Will the Minster now agree to do so and advise whether any assessment has been made of the new procedures?

I would also be grateful if the Minister could inform the House of the results of the review of the strategic choices that the department makes in its use of contractors, including when the department should be delivering in-house and when and how it should bring in suppliers.

As my noble friend Lord McConnell noted, with DfID increasingly working in fragile and conflict-affected states requiring complex programmes, the department is more likely to rely on contractors and their local partners. The Prime Minister’s announcement that at least half the UK’s £12 billion aid budget will be spent on supporting fragile states raises even more questions on how this might be managed.