Foreign Aid Expenditure

Patrick Grady Excerpts

Monday 13th June 2016 Westminster Hall

[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.

[Patrick Grady (Glasgow North) (SNP)]

Does the hon. Gentleman share my concern about the Government’s increasing tendency to double-count spending both to the 2% NATO target and the 0.7% GNI target?

[Stephen Doughty]

I think there is a danger of things sometimes being blurred, but there are activities that can legitimately be described as measures contributing to security and to development. It is not a zero-sum game. I saw that in Afghanistan. I saw the close working between our development staff, armed forces and Foreign Office staff—there is overlap, but we need to be cautious about completely skewing things in one or the other. As to proportions, the fact is that in 2014-15 defence spending was 75% of our total international spending. Aid, diplomacy and intelligence made up just 25%. That is a perfectly reasonable balance, and the co-operation that is going on is absolutely right.

The growing chaos in Yemen, parts of the horn of Africa, and north and central Africa, shows exactly the consequences of ignoring gross poverty and instability. Our aid is a tiny investment—less than a penny in the pound. It helps us to tackle threats. It is morally right and it shows us to be a compassionate and progressive global power. In my view it is madness to slash the budget that is focused on tackling those threats to our national and global security that drive people to flee their countries and drown, and that, most importantly, degrade us all.

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[Patrick Grady (Glasgow North) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Gapes. I pay tribute to you and to the previous occupant of the Chair for having been able to call so many Members—admittedly, though, not everyone who wanted to get in has been called. I am aware that a number of Members came along to show solidarity with the debate without any intention of speaking or expectation of being able to do so, but that emphasises the point rightly made by the right hon. Member for Sutton Coldfield (Mr Mitchell) that this is the kind of issue that thoroughly deserves a full day’s debate on the Floor of the House. I am happy to back that call.

I refer to my entry in the Register of Members’ Financial Interests. Before the election, I worked for the Scottish Catholic International Aid Fund and was the vice-chair of the Network of International Development Organisations in Scotland.

One message that comes through loud and clear from the debate is that aid works. No one is disputing that aid from the United Kingdom Government, and indeed from the Scottish Government, has saved and changed millions of lives around the world over the years. There is a consensus about that and there does not, fortunately, seem to be any suggestion that aid should stop altogether. The substance of the debate seems to have been the effectiveness of aid and the appropriate amounts of spending and, to a certain extent, questions of public support for aid. I think that there is public support.

The debate was triggered by a petition—these Monday debates are becoming something of a highlight of the parliamentary week, which is to be welcomed—but there is a difference between a petition that people voluntarily sign and broader indications of public support. Repeated opinion polls show that a majority of people in the United Kingdom, and indeed across OECD countries, support the principle of aid. The point about public understanding was made relatively early in the debate. Interestingly, in 2011 a Chatham House-YouGov survey showed that the average estimate of UK aid spending was £79 billion, when in that year the actual spend was £8.5 billion. Polling across OECD countries consistently shows that people believe their Governments spend between 10% and 20% of their gross national income on aid and think it should be between 1% and 5%. In fact, the public think that more should be spent than is.

In my own constituency, the sum total of 95 people signed the petition, and only 5% of the signatories came from Scotland, which is far less than Scotland’s proportionate share. Mention was made by my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) of how our hon. Friend the Member for Glasgow North East (Anne McLaughlin) had primary schoolchildren who signed up to the Send my Friend to School campaign, and I have met primary schoolchildren from the Glasgow Academy who want to send the message to the Prime Minister loud and clear that children’s education must be an important aspect of our international development spend.

Three key points have been touched on in the debate, the first of which is the principle of aid itself and the importance of the target. The second is the impact aid makes and why it is in our enlightened self-interest to spend money on it, and the third is how we go beyond aid and the role of the sustainable development goals. I will try to touch on all three points and still leave plenty of time for other Front-Bench colleagues.

As I have said, there is a consensus that there is a need for aid. I join other Members in giving credit to Labour for the creation of the Department for International Development as a stand-alone Department, and to the Conservatives and Liberal Democrats, first for maintaining DFID and secondly for passing the legislation that was in all the party manifestos. I hope that the commitment remains in those manifestos, for which people voted and which they, and Members in this Chamber, have endorsed.

The need for aid is clear, as we have heard in the many statistics, stories and anecdotes we have heard. As the right hon. Member for Tottenham (Mr Lammy) said, 124 million children are out of school—63 million of them girls—and some 650 million people are living without clean water. That is why continuing to provide aid is incredibly important, and it is something to which the Scottish National party has given its long-standing support. Indeed, the White Paper on independence for Scotland suggested that an independent Scotland would want to go beyond the 0.7% target to about 1%.

If the principle is established that there should be aid, the question is how much and why. The 0.7% target was agreed 40 years ago. It is not just a target for the United Kingdom, as many Members have recognised; it is the target for developed countries around the world. It was calculated that it represented the amount of money that would need to be generated to end poverty and bring people up to an equitable standard of living comparative to that which we enjoy. If the UK had been meeting the 0.7% target ever since it was agreed in 1970, an additional £87.5 billion would have been made available for aid spending and perhaps some of that would have lessened the need for aid today.

[Sir Desmond Swayne]

Will the hon. Gentleman reflect on the fact that, if all the rich countries of the world had met that commitment when they made it, we might be dealing with very different problems now?

[Patrick Grady]

That is exactly my point. I did not necessarily mean what I said to be a criticism; I am trying to offer a bit of context about why the target is so important.

As the hon. Member for Aldridge-Brownhills (Wendy Morton) said, it is a proportionate target, so it will go up, or indeed down, depending on the strength of the economy. The hon. Member for Foyle (Mark Durkan) made an important point about how the target, and that predictability, allows people to plan and provide the step change—the gear shift—that is needed to really make an impact. Speaking of the need for and the importance of impact, the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) was absolutely right to address the hunger crisis in southern Africa. Predictable aid flows allow agencies to put measures in place that mean that when disasters strike, the resources are there to be mobilised immediately, rather than our sitting back, as the petition seems to suggest, and waiting for something to happen before scrabbling around and figuring out how much aid we can spend.

Aid does work. We have heard the statistics. My hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) said that every two minutes immunisation sponsored by a United Kingdom aid programme saves a child’s life. At the same time, no one is disputing that everything is not perfect, but my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East made the valid point that not everything is perfect in the NUS, or rather the NHS. Not everything is perfect in the National Union of Students either—[Laughter.] I do not see many petitions calling for the national health service to be shut down, although there probably are elements of the right-wing press that would support doing that.

It is right that questions have been raised about the use of funding in Palestine, and it is also right that the Minister has had the opportunity to respond. That is why we have structures of scrutiny in this Parliament. DFID is one of the most highly scrutinised Departments of Government but it is important to recognise the work that is done. Of course, DFID funds organisations by funding specific projects. It does not fund global headquarters for organisations. If an organisation wants to build a global headquarters, it has to get the funding from somewhere else and justify the spend to those funding sources. DFID gives money for specific projects that are fully accountable back here, and that is why we have this kind of debate.

A point that has so explicitly been made by many today is that this is not just a moral argument. Aid is in our enlightened self-interest. Some members clearly want to prevent migrant flows, displacement and the spread of tropical diseases, and investment through our international development funding is absolutely crucial to that. However, as has also been said, not least by the chair of the International Development Committee, the hon. Member for Liverpool, West Derby (Stephen Twigg), aid is only one part of the development process. We have to look at how we go beyond aid, and ultimately get to the stage at which it is not as necessary because countries are able to stand on their own two feet. There is a need for fair trade arrangements, support for civil society and good governance, the development of national infrastructure, fairer tax treaties—mentioned by the right hon. Member for Orkney and Shetland (Mr Carmichael) —and fair and effective implementation of the sustainable development goals. A coherent policy approach across the whole of Government is something that the Scottish Government are keen to take forward, and I hope that the UK Government will do so too.

It would be useful to hear from the Minister when DFID expects to publish its bilateral and multilateral aid reviews. It would be interesting to hear any further reflection he can offer on double-counting towards the NATO and Overseas Development Institute targets, and to know how DFID plans to drive forward the sustainable development goals across Government.

I am a big fan of my tartan ties, and the one I am wearing is the Zambia-Scotland tie. As with many tartans, it is an expression of solidarity, and solidarity ought to be, as I said in my maiden speech, the basis of human relationships.

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[The Minister of State, Department for International Development (Sir Desmond Swayne)]

It is a privilege to follow the hon. Member for Hackney North and Stoke Newington (Ms Abbott). She is very well informed, and she speaks on the subject with passion. If I may, I would like to take the speech of the hon. Member for Glasgow North (Patrick Grady) as my own; it was excellent.

A number of my constituents have been driven into a state of apoplexy by stories of how their hard-earned tax money is shovelled out the door without scrutiny of any kind, particularly towards the year end. I am glad that I have been able to refer them to the dfid.gov.uk website, where they can find a point-by-point rebuttal of all the accusations.

I respect the petitioners, however, and I thank them for the opportunity that they have afforded us to debate this important issue. I am glad that a number of Members have used the opportunity to evangelise about international development aid, and I want the debate to go well beyond this Chamber. My ambition is to ensure that by the end of the Parliament, more people write to thank us for what we as a kingdom are doing on international aid than to complain about the level of it.

I have a duty to represent all my constituents—not only those who have written to me complaining about the level of international aid, but those who have been tweeting all day about how proud they are of our international aid. Equally, I must represent the views of the 99.99% of my constituents who have expressed no opinion whatever. I am glad that the right hon. Member for Tottenham (Mr Lammy) reminded us that we have a leadership role as Members of Parliament; our job is to bring our constituents information, to persuade them and, dare I say it, to bring enlightenment.

The UK aid strategy sits firmly in our security and defence strategy. The 0.7% spent on international aid and the 2% commitment to NATO are the 2.7% that we spend, in our international interests, on securing a safer, more stable and more prosperous world.

[Patrick Grady]

rose—

[Sir Desmond Swayne]

I know what the hon. Gentleman will say, because we have had the argument before. We may secure our national interest through the ability to deploy lethal force, but I put it to the House that often, the deployment of soft power is a much more effective tool of policy. There is no doubt among any of us that it was in our national interest to spend hundreds of millions of pounds on securing an end to the Ebola epidemic. Without doubt, had it been allowed to spread, it would have come to us and caused terror and economic dislocation. Equally, our main effort has to be on economic development in the poorer parts of the world.

The reality is that in the end, everything is about jobs. In the next 10 years, the world needs 600 million new jobs if we are to avoid an army of underemployed young people who are frustrated and increasingly angry. We have to make investments. I am alive to the concerned expressed by my hon. Friend the Member for Stafford (Jeremy Lefroy) about development capital. We have to tackle the causes of poverty and injustice, because if we do not deal with those problems at source, we know where they are going: to our doorsteps and our shores. Aid is undoubtedly in our national interest.

Overseas aid is also undoubtedly controversial; it has to be. If I am spending British taxpayers’ money on helping the people of Bangladesh who live on the chars to deal with climate change and flooding, it is clearly not available to deal with flood defences in Durham, York or elsewhere. However, I put it this way: we have pledged to spend 0.7% of our national income on international development, which means that we have 99.3% to spend on ourselves. I do not know anyone who spends 99.3% of their income on themselves; I am not sure I want to know such a person, and I am not so sure that they would have any friends. That is equally true of a nation. What influence would we have in the world, and how could we carry our heads high, if that were the case, and we were to abandon this important pledge? It is important to focus what we spend, rigorously demanding value for money, and ensuring that we have the systems to secure that and to drive down costs, so that we get proper value.

I am sorry to see that my hon. Friend the Member for Newark (Robert Jenrick) is not in his place, because he referred to a low bar. I invite him to see me in DFID to explain to me and my officials what this low bar is, because I am the “low bar”. I am the one who has to be persuaded that the projects are value for money, so I shall be very interested to hear his explanation.

The reality is that over the past five years, we have delivered education for 11 million schoolchildren; 69 million people have received financial assistance and services to trade their way out of poverty; 29 million people have benefited from our nutrition programmes; 5 million people, as my hon. Friend the Member for St Austell and Newquay (Steve Double) said, have benefited from having healthcare professionals attend at birth; 63 million people have had access to clean water; 15 million people have been able to cope with climate change; 44 million children have been immunised; and we have delivered emergency care to 13 million people in the wake of 33 disasters. That is a measure of the importance of what we are doing.

The bit of the development picture that people get is humanitarian relief. They put their hand in their pocket to the tune of over £100 million after the Nepal earthquake. What we need to get over to them is that the people who appear suddenly to provide that relief and do the search and rescue have to have their core funds covered throughout the year when there is not an earthquake. The success of our intervention in the Nepal earthquake was built on years of investment in resilience beforehand; there was a blood bank in place and a logistics centre for the distribution of emergency aid, which saved seven weeks cumulatively. People rehearsed and rehearsed how to deal with the aftermath. This is what we spend the money on. I believe passionately that we have to get the democratic legitimacy from our people by persuading them. The moment we explain this to them, they get it. We need to hold their attention and get the opportunity to do that, and this debate gives us that opportunity, so let us build on it.