Commonwealth Development Corporation Bill
Debate between Pauline Latham and Stephen TwiggTuesday 10th January 2017
(7 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Amendments as at 10 January 2017 - (10 Jan 2017)
Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
In July last year, as part of our ongoing inquiry, the International Development Committee visited the Democratic Republic of the Congo. As part of that, we went to see a hydroelectric power plant in the Virunga national park, which has been part-funded by the CDC. It is reinvesting a proportion of its earnings into community development projects and protecting the environment. The plant is bringing electricity to a region in which only 15% of the population has previously had access to power, and it has the potential to generate millions of dollars each year and thousands of jobs for local communities. I cite that because such projects are impressive and demonstrate the positive impact that the CDC is already having.
Pauline Latham
As the hon. Gentleman knows, I was also on that visit, and that is probably one of the most impressive projects I have ever seen. It provides light to so many people in the DRC who so desperately need it. Those are just the sorts of projects we have talked about and said that the CDC should be investing in more, because they create jobs and make life better for so many more people.
Stephen Twigg
The hon. Lady is a highly valued member of the International Development Committee and I agree with her. The purpose of my remarks on Report this afternoon is to reinforce the point she made. Those are positive projects. We want to ensure that the high-quality we saw in that example in Congo becomes the norm for all the CDC’s investments, particularly as the limit is increased, which I will come to in a moment.
The private sector provides around nine out of every 10 jobs in developing countries. Its development and success is vital in helping countries to achieve sustainable and long-term development. I therefore believe it makes sense to increase the CDC’s investment threshold.
Poverty reduction must be at the heart of the Government’s development agenda, which must explicitly include the work of the CDC. In 2011, the predecessor International Development Committee produced a report, “The Future of CDC”, as the group approached its then cap of £1.5 billion, as set out in the Commonwealth Development Corporation Act 1999. The Committee’s report concluded that the CDC’s mandate should be changed to a specific focus on poverty alleviation. Given that job creation is one of the very best ways to reduce poverty, it is important that the Government have a development investment arm that will help poorer countries to create new and innovative jobs.
As has been said by Members on both sides of the House, the CDC made significant changes following the 2008 National Audit Office report and the 2011 International Development Committee report in line with recommendations to move towards a focus on the alleviation of poverty. As has also been said, those changes were reviewed recently by a further NAO report released just before Second Reading of the Bill in November 2016. The report was mostly positive, and noted that the 2012 to 2016 investment strategy shifted the CDC’s investment focus to poorer countries, which is welcome. The report noted that the CDC had exceeded the targets agreed with DFID relating to financial performance and development impact. However, it also said that the CDC should do more to measure the development impact of its investments. That would not only provide a better basis for investment decisions, but increase the transparency of the CDC.
Poverty alleviation is absolutely central if we are to make a success of the global goals—the sustainable development goals agreed in 2015. Africa needs to generate 15 million new jobs every year if it is to achieve its global goals. That can be achieved only by working with the private sector, including organisations such as CDC. CDC has helped to create nearly 25,000 jobs in Africa and south Asia directly, and it says it has helped to create more than 1 million jobs indirectly. The businesses in its portfolio support around 18 million jobs. I am therefore happy to see the increase in the threshold, but I have a number of concerns to which I should like the Minister to respond.